Alaska Business Monthly-May 2015 by Alaska Business

Wood Bison | Small Business Winners | Energy | Mining | Transportation

May 2015

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Begins on page 42  Q & A with BP’s Janet Weiss  Projects  Service & Support  Commentary  Directory

XTO Energy is proud to be part of Alaska’s growing economy. You expect us to be responsible neighbors; we’re working hard to make sure we are.

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May 2015 TAB LE

CONTENTS ABOUT THE COVER

DEPARTMENTS From the Editor �� 7 Market Squares �� 107 Right Moves �� 108 Inside Alaska Business ��110 Agenda �� 113 Alaska This Month ��114 Events Calendar ��117 Alaska Trends ��118 Ad Index ��122

BP Exploration (Alaska), Inc. Regional President Janet Weiss in front of the company’s Anchorage real estate. Weiss kicks off the annual Oil & Gas Special Section with a Q&A about solving industry problems (page 42). Cover Photo: © Judy Patrick

ARTICLES The first batch of Port Chilkoot’s three-year barrelaged whiskey is expected to release later this year. Founders Heather Shade and Sean Copeland compare differences in color between raw “moonshine” and the barrel-aged small batch whiskey.

special section Oil & Gas

42 | Solving Problems in the Oil & Gas Industry: Q&A with BP’s Janet Weiss 48 | North Slope Activity Sees Increased Investment Spending continues to rise despite low oil prices By Mike Bradner

Photo by Bethany Goodrich

Science & Transportation

8 | Wood Bison Reintroduced to the Wilds of Alaska Conservation partnerships return species missing for a century By Vanessa Orr

HR Matters

14 | Welcome to the Family Tips for onboarding new employees By Kevin M. Dee

Small Business

16 | Alaska’s Innovative Entrepreneurs Walk the ‘Path to Prosperity’ Business competition awards two Haines businesses for their commitment to community By Bethany Goodrich

Education

20 | Business and the New Entry-Level Workforce United Way and Anchorage community partners invest in Anchorage youth By Tasha Anderson

Telecom & Technology 24 | High-Tech Security Surveillance and Mobile Monitoring Solutions By Tracy Barbour

54 | Making Diesel Out of Natural Gas Teaming up for a big change from a little plant By Mike Bradner 56 | Powering Industry: Inside Alaska’s Oil & Gas Support Services By Kirsten Swann

Energy

62 | Port Mac Gas Projects Big plans for commodities dock By Mike Bradner

Energy

66 | The Moral Case for Fossil Fuels By Alex Epstein

28 | Rural Power Grids By Rindi White 34 | Reinventing Electricity in Alaska’s Railbelt A how-to soon to come By Naomi Klouda

Correction Due to an editorial error in the April “Right Moves” section, Fairbanks was incorrectly stated as the location of new Brice Environmental Services Corporation team members Jamie Oakley, Jon McVay, Doug Moody, and Diane O’Malley. They are all based in Anchorage where the ANC 8(a) company opened a new office in JL Tower to complement the corporate office and professionals based in Fairbanks. 4

50 | Engineering Alaska’s Oil and Gas Industry By Kirsten Swann

68 | Shell Gets Ready to Drill Moving forward for return to Chukchi Sea By Mike Bradner 70 | Alaska Business Monthly 2015 Oil & Gas Directory

Alaska Business Monthly | May 2015 www.akbizmag.com

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CONTENTS

Courtesy of TSS, Inc.

ARTICLES

Renee Schofield

Small Business

38 | Renee Schofield: Alaska Small Business Person of the Year 2015 Rural Ketchikan entrepreneur honored by Small Business Administration By Naomi Klouda

94 Economy

88 | Beyond Oil: Is Economic Diversification a Solution? By Lee Huskey and Mouhcine Guettabi

Environmental Services

90 | Flint Hills Sulfolane Update Company continues ‘monitoring, cleanup, and recovery’ By Mike Bradner

Students at Begich Middle School learn to fill out and read a bill of lading during a workshop to communicate the importance of transportation as part of Carlile’s School Business Partnership. Photo courtesy of Carlile Transportation

Transportation

94 | Trucking Industry Roundup: Players, Trends, Issues By Judy Griffin

Mining

100 | Alaska Mining Development in 2015 By Tom Anderson

Alaska Business Monthly | May 2015 www.akbizmag.com

FROM THE EDITOR

No Chicken Little, The Sky is Not Falling Follow us on and

Volume 31, Number 5 Published by Alaska Business Publishing Co. Anchorage, Alaska Jim Martin, Publisher 1989~2014

EDITORIAL STAFF

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

Susan Harrington Russ Slaten Tasha Anderson David Geiger Linda Shogren Chris Arend Judy Patrick

BUSINESS STAFF

President Billie Martin Vice President & Jason Martin General Mgr. VP Sales & Mktg. Charles Bell Senior Account Mgr. Anne Campbell Senior Account Mgr. Bill Morris Accountant & Melinda Schwab Circulation 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2014, 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.

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It only seems to be

ay Day! May Day! I remember writing about that a few years ago when Alaska was in jeopardy of losing big oil investments due to disagreeable taxation. That was eventually resolved at great cost, and investments started up again. Then the bottom fell out of the price of oil, so now we’re faced with another problem: insufficient funds to carry on the way we were. We’re still waiting to find out what’s next in that realm from the Alaska Legislature. The print deadline for the May issue is a few days before the end of session, so I can’t comment on how it all ends because as I write this our elected leaders are still in Juneau legislating. A few things could have dramatic consequences. There is a very real risk that 42,000 working adults will not have access to healthcare; 128,000 K-12 students will not be adequately funded in their public schools; thousands of miles of roads, rail, and runways will not be repaired or maintained; and 800 miles of natural gas pipeline will not get built—ever. As of April 14 it’s not looking too good for Medicaid expansion, public school funding, transportation spending, or pipeline consensus between the first session of the 29th Legislature and the governor. April 14 stats in the table below are from the Legislature’s website. It will be interesting to compare with the session’s final stats. So far nothing had been signed, little had been passed, and a veto was threatened. House Senate Intro Passed Intro Passed Both Both Bills 196 5 108 2 Joint Resolutions 25 8 17 0 Concurrent Resolutions 12 2 13 2 Resolutions 4 4 3 3 *No Special Concurrent Resolutions were introduced.

Totals Intro Passed Both 304 7 42 8 25 4 7 7

It all depends on some unknowns: failure or success in the passage of bills, whether the governor’s veto powers are exercised or overridden, and general action or inaction by legislators on the budget and bringing introduced bills to a vote. I get the impression from lawmakers, and from the governor, that they are worried that if certain bills pass or don’t pass, or pass and get vetoed, or get vetoed and overridden, then hundreds of millions of dollars are at risk of evaporating into thin air. It doesn’t appear that any have accepted the fact that billions of dollars already have. Of course we’ll all know the outcome of the session before this May issue of Alaska Business Monthly is published and you’re reading it— among the various ways—the print edition or the digital edition on your computer or laptop or via the mobile app on your tablet, reader, or phone. And the mystery will already be solved because you will have been kept up to date on our website with everything and anything done by the Legislature and governor. Politics aside, the team has put together another really great magazine, enjoy! —Susan Harrington, Managing Editor May 2015 | Alaska Business Monthly

SCIENCE & TRANSPORTATION

Wood Bison Reintroduced to the Wilds of Alaska

Conservation partnerships return species missing for a century By Vanessa Orr

hile wood bison are usually considered to be fairly docile animals, the fact that they can weigh between 1,200 and 2,600 pounds makes them a rather intimidating species. So when one hundred of the animals needed to be moved from the Alaska Wildlife Conservation Center at Portage outside Girdwood to a grassy valley outside the Alaska village

of Shageluk—on an airplane—it was not only a momentous task, but will go down in history as one of the most significant conservation projects ever undertaken on the Last Frontier. “When you look at the size and scope of the state, it’s pretty amazing that there’s not much original wildlife missing,” says Cathie Harms, wildlife biologist and regional program manager for the Alaska Department of Fish and Game (ADF&G) in Fairbanks. “Both musk ox and wood bison, which had been in Alaska for thousands of years, disappeared about the same time— around one hundred years ago. Musk ox were reintroduced in the 1970s, and the last hole we had in our ecosystem— the missing piece—was shaped like a wood bison.

“As a conservation story, it’s really intriguing,” Harms adds. “When people heard that we wanted to bring wood bison back, many of them wanted to play a role. I think that’s why such a large number of organizations, businesses, and individuals stepped forward to help. It was truly amazing to see.”

What Happened to the Wood Bison? Wood bison used to be a part of the Alaska landscape. Athabascan oral histories describe how the animals were hunted for their hides and meat, and while they were scarce by the mid-1800s, they were still present in small numbers until the early 1900s. At one point thought to be extinct, their disappearance was credited to the combined effects of hunting and

Alaska Business Monthly | May 2015 www.akbizmag.com

Wood bison yearlings coming out of the chute after arriving in Shageluk. Photo courtesy of Johane Janelle

hay a day—hay that has been trucked in monthly by Carlile for more than seven years. Harry McDonald, cofounder and former chairman of Carlile and currently the Alaska director for Saltchuk, which purchased Carlile in 2013, came up with the idea for hauling hay; to date, more than fifteen thousand bales have been delivered. “I never imagined that one of our most frequent and demanding customers would weigh in at more than two thousand pounds,” says McDonald. “The elements of this project, which span years of preparation, are daunting but also indicative of how things are done in Alaska—we are a community that works together to make unique things happen,” he adds. “To reintroduce a species into the wild, especially in a place as unpredictable as Alaska, is a truly incredible undertaking and we’re proud to be one of the partners that has helped make this dream a reality.”

changes in habitat distribution. In 1957, an airplane crew spotted a small herd in Alberta, Canada, and today, thanks to Canadian protection laws, that country has more than five thousand disease-free wood bison in seven herds. In 2003, the ADF&G acquired thirteen wood bison that had been imported from Canada, and the animals were transferred to the care of the Alaska Wildlife Conservation Center with the hopes of reintroducing the species to the 49th state. In 2005, for the first time in more than one hundred years, wood bison calves were born in Alaska. Another 53 wood bison were brought from Canada in 2008, and the herd grew to more than 140 animals. Wood bison are different from the more commonly known plains bison in that they www.akbizmag.com

are taller, heavier, and darker; have a square-shaped hump; and are better adapted for northern climates. “Wood bison are the largest land mammal in the western hemisphere, with females weighing between 1,200 and 1,400 pounds and herd males weighing about 2,000 pounds. Dominant males can weigh up to 2,600 pounds, though skeletal remains show that some animals could have been even larger,” explains Scott Michaelis, director of marketing and sales, Alaska Wildlife Conservation Center. “Just their sheer size and the volume of space that they occupy make them a magnificent creature.” The amount that they eat is impressive as well; the herd of wood bison at the Alaska Wildlife Conservation Center eats between three and five bales of

Reintroducing the Species The idea to return wood bison to their native land was originally conceived in 1991 by ADF&G’s Fort Yukon Area Biologist Bob Stephenson, who, while out in the field, noticed a sedge meadow and recognized it as a type of food that wood bison eat. “He wondered why there weren’t bison there and discovered from oral histories that people in the area had dug up bison bones and that there were geographic locations in the area named for them and that the Athabascan people had a name for them,” says Harms. “They hadn’t been gone that long.” When the idea of reintroducing the species back to the area was first proposed, the Yukon Flats was considered. The state also identified excellent wood bison habitat in Minto Flats and the Lower Innoko/Yukon River area. “In order for the bison to thrive, they needed good quality habitat, the support of the people living in the area, and land where there was no planned natural resource development that would conflict with establishing a population,” explains Harms. The Lower Innoko met all of the criteria. Even before plans could be made to May 2015 | Alaska Business Monthly

Carlile Driver Doyle Bartell and a load of hay at the Alaska Wildlife Conservation Center. Bartell is Carlile’s representative on the wood bison comeback team. Photo courtesy of Carlile

get the animals off the ground, however, there were bigger challenges to be met. While many Alaskans wanted to see wood bison return to the land where they once roamed, many others were concerned about what bringing an endangered species into the area would mean. “If an animal is listed as ‘threatened’ under the Endangered Species Act [ESA], then a whole host of protections ensue and can potentially restrict what a landowner can do,” explains Harms. “One of the things that was critical to getting permission to reintroduce the species in this area was to get a special rule under the ESA that labeled wood bison in Alaska a ‘nonessential experimental’ population.” On May 6, 2014, the US Fish and Wildlife Service published the final special rule, which allows hunting and other forms of managing the population, prevents the establishment of critical habitat that would restrict resource development, identifies ADF&G as the lead management agency for wood bison, and requires a management plan to be developed by a diverse group of interested parties. “In October of 2014, Governor Parnell announced that the plan to reintroduce wood bison to Alaska was a go,” says Harms. A group of people representing twenty-eight different groups, ranging from the land-owning corporations and village corporations to Safari Club International and the Alaska Outdoor Council to residents, conservationists, and more, developed the management plan which was approved by the Federal Subsistence Board and the Alaska Board of Game in February 2015. 10

“It’s incredibly exciting; we’ve gone from glacier speed year after year trying to get this project done, and now we’re going at light speed to get the animals moved,” says Harms. “It’s very gratifying, and the support we’ve received is remarkable.” Funding for the project has come from a number of sources, including ADF&G, the Pittman-Robertson Federal Aid in Wildlife Restoration Act, Bass Pro Shops, and the Safari Club International’s Hunter Legacy 100 Fund, among others.

A Matter of Logistics One of the most amazing things about Alaska transportation companies is that they can get anything anywhere— and one hundred wood bison are no exception. While the three hundred air miles between Anchorage and the Innoko River Valley near Shageluk, Alaska, may not seem like a very far distance, moving thousands of pounds of pregnant females, yearlings, and calves through the air requires a lot a planning, among other things. “It’s not like reintroducing a species in the rest of the country, where you might put an otter in a dog crate in the back of a pickup truck and drive it to its new home,” says Harms. “That works great when you have roads and big enough trucks, but we don’t have this in Alaska. We needed an airplane—a big airplane. You can’t put a thousand pound animal in a Super Cub.” “An animal that big in a small, confined space is not going to be happy,” adds Michaelis. “You need to build a container that’s small enough so that they don’t have the opportunity to move around, and dark enough to keep them calm. And it has to be able to be trucked into Anchor-

age, where it will get loaded onto a plane.” Richard Faulkner, president of STEELFAB, was approached for help. “When I first got the call, I wasn’t sure of the scope of the project, and I opened my mouth and said ‘yes,’” he laughs. “It’s like when a neighbor asks you to watch her cat, and it turns out that she has forty of them. I’m glad I didn’t know what I was getting into, and I’m glad that I’m not the one inserting the bison into the box.” STEELFAB worked with ADF&G to modify six twenty-foot Conex boxes, which were donated by Alaska Marine Lines and Container Specialties of Alaska, to contain the bison on their flight. In addition to creating stalls inside the boxes, putting non-skid coating on the floors, building plywood gates, and putting the boxes on skids, workers also made sure that the bison all had proper ventilation and were not able to see each other while onboard. “The cows had to be separated because they’re not real sociable and don’t get along in close quarters,” says Faulkner. “Once we figured out what we were doing and got one done, it didn’t take that long to do the others. But because the containers weren’t brand new, the dimensions weren’t all the same, so each one had to be custom fit.” STEELFAB donated all of its labor and materials and also encouraged its suppliers to help in the effort. “There were quite a few people who donated to the cause,” says Faulkner, adding that they painted the boxes STEELFAB blue to make them look pretty. “I feel that it’s a worthwhile activity to bring bison back into the Interior,” he says. “It’s a joint effort—ours might be a more visible part of it, but it’s definitely a group effort.” The Lynden family of companies played a huge part in this effort, donating services to help support this move as well as discounted flights. “Alaska Marine Lines donated four intermodal containers, and Alaska West Express provided the equipment for loading the bison in Portage, along with a truck, trailer, and a dedicated driver,” says Jim Davis, vice president of marketing and sales for Lynden Air Cargo. “We have always been a niche operator and have gotten some strange requests over the years, but this move definitely made our top ten list,” he continues, adding that the trip required a Hercules aircraft to do the job due to the size of the animals and the remote destination.

Alaska Business Monthly | May 2015 www.akbizmag.com

BusinessPROFILE

Diamond Parking-Anchorage

Diamond Airport Parking ‘A Hotel for Cars’

WE CARE PROGRAM OFFERS DELUXE SERVICE

Diamond Airport Parking-Anchorage provides uncovered and covered parking (with plug-ins), along with free car-to-curb shuttle transportation to the airport. The company’s extensive service also comes with a newspaper, bottled water, baggage assistance, and touchless car wash—at no additional charge. To further enhance customers’ parking experience, Diamond is proud to offer customers the We Care Program, which goes above and beyond to cater to travelers. The facility has attentive staff available to assist customers with everything from a jumpstart to a flat tire to a gallon of gas. “I like for our customers to view us as a hotel for cars,” says Marketing

stablished in 1922, Diamond Parking has an impressive track record of providing premium parking throughout nine states in the United States and Canada. Diamond Parking is a family-owned business that takes pride in the longevity and sterling reputation it has established over the years. The company operates in three key areas: self-storage, airport parking and parking lots/garages. Its Parking Services division works closely with landlords and property managers, offering various solutions to meet all budgets and customer requirements. “We don’t offer a one-size-fits-all solution,” says Regional Manager Matt Samuel. “We strive to meet the needs of our clients every day.” In Alaska, the company operates an offsite airport parking lot known as Diamond Airport Parking-Anchorage. Conveniently located just minutes from the Ted Stevens Anchorage International Airport, the facility offers secure parking twenty-four hours a day, seven days a week. Customers can opt for short-term parking with daily rates, as well as long-term monthly or seasonal parking.

Director Jaime Lozada. “We’re not just going to park your car on our lot; we’re going to take care of your car—and take care of you.” For Diamond Airport Parking, taking care of customers encompasses providing timely transportation from the airport. Customers can simply text or call when they arrive, and a Diamond shuttle will promptly pick them up. This summer, Diamond will be offering a pre-paid card that enables frequent customers to exit in their own lane, making service faster and more convenient. Also, starting in September, the company will launch an Autostart Program that will give customers with a key fob the option of returning to a toasty, heated vehicle.

pass and other valuable perks. The perks are a testament to Diamond’s enduring appreciation for loyal customers who have contributed to its 90-plus years in business. They’re also part of the company’s commitment to ensuring customers have a positive experience whenever they patronize Diamond Airport ParkingAnchorage. Diamond Parking and Storage is constantly working to differentiate itself in the marketplace. As such, Diamond relies on offering exceptional service to attract and maintain customers—not gimmicky promotions. “We simply strive to satisfy our customers,” Lozada says.

PERKS FOR FREQUENT TRAVELERS

Frequent business travelers can benefit from Diamond’s Preferred Traveler Club, which offers a discount on the weekly parking rate. Preferred Traveler Club members can qualify for valuable gift certificates and receive bonus parking days. In addition, customers who park with Diamond at least twelve times can take advantage of the company’s rewards program to earn a free oil change, a free parking –

P A I D

A D V E R T I S E M E N T

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Jaime Kay Lozada, Director of Marketing 5401 Northwood Drive Anchorage, Alaska 99502 907-677-PARK (7275) Jaime.lozada@diamondparking.com diamondairportparking.com facebook.com/pages/DiamondAirport-Parking/135125549872018

On Sunday, March 22, the first two intermodal containers containing fifteen yearlings each took off for Shageluk; this was followed by seven adults in each box later in the day. Two flights a day on Monday and Tuesday got the rest of the bison to their new home, much to the relief of all involved. “I can tell you that we’re breathing much easier now,” says Davis. “We had no doubt in our ability to safely move the boxes from Portage to Shageluk, but when you’re dealing with live animals, you never know how they’re going to do during transport. You’re always looking at ways to reduce the stress on the animals to ensure that they arrive healthy.” “I was kind of shocked by how well it went,” adds Lynden Air Cargo’s Director of Cargo Jerry Stout, who helped to load the animals into the containers with the crew at Portage. “It was an exceptional undertaking; we moved one hundred animals in six trips total, and there were no incidents. The animals were brought in from the roaming pen, then radio-collared and vaccinated and shuttled through a runway chute into the containers. Animals this big can be hard to handle, but all of them are alive and doing well.” All one hundred bison arrived safely in Shageluk within three days, and either walked, trotted, or galloped out of the boxes into a four-acre temporary pen, where they quickly acclimated to the area. “To get them all there, safely, in three days is almost beyond belief,” Harms says, adding that project biologists were extremely happy with the transportation phase.

Managing the Herd Now that the wood bison have made it to their new home, they will be given a chance to settle in and adapt to their surroundings. “We’ll be holding the bison at the site for one to two weeks until their stress levels return to normal and they acclimate to the climate,” says Harms. “Then we’ll lead them to their new habitat so that they can begin calving.” ADF&G staff will establish feeding stations along the trail to the herd’s new location. When the hay is gone, it is hoped that the bison will switch to natural grasses. “We’re going to wean them slowly,” says Harms. Once the bison reach their destination, the pregnant females will begin calving in May, which will help to establish the site as a ‘home 12

A wood bison runs free at Shageluk. Photo courtesy of Johane Janelle

habitat’ for the herd. After spring breakup, a number of larger male wood bison will be brought into Shageluk but will be barged instead of flown due to their size. All of the herd members will be tracked, either through radio or satellite collars, and ADF&G will spend the next year or two monitoring their progress. “Hunting is part of the long-term picture, though it will take a while for the herd to get sustainable,” says Harms. Eighty percent of the harvest will be determined by drawing permits; 90 percent will go to Alaska residents and 10 percent to out-ofstate hunters. The other 20 percent of the state’s permits will be issued in villages in the GASH region (Grayling, Anvik, Shageluk, and Holy Cross). A land use fee per hunter of $300 for residents and between $500 and $1,000 for non-residents will also be pooled to enable the village corporations to provide scholarships for local youth interested in studying wildlife. According to Harms, the harvest could be offered anywhere from three to ten years from now, depending on the size of the herd. “We’ve been given an opportunity to go back and potentially correct a man-made wrong,” says Michaelis.

“By reintroducing a large-scale grazer that hasn’t been represented in Alaska for the past one hundred years, we’ll be bringing a missing piece of the ecosystem back. It’s such an unbelievable conservation effort, and a success on so many different levels.” People living in the area welcome the massive creatures. “We are hoping that the reintroduction of the wood bison will take some of the pressure off of the moose in this area,” says Arnold Hamilton, a resident of Shageluk who represents the GASH region villages on the ADF&G advisory board. “Our people’s way is subsistence, and there is a lot of pressure from outsiders for moose, so hopefully in future years, the bison will help ease this. The villagers here had no objection to the reintroduction; we were just waiting for the animals. It took quite a while since it first started, but now that everyone has come together, it was able to be done. We’re glad that it finally happened.” R Vanessa Orr is the former editor of the Capitol City Weekly in Juneau.

Alaska Business Monthly | May 2015 www.akbizmag.com

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HR Matters

By Kevin M. Dee

Welcome to the Family Tips for onboarding new employees

oining a new company is akin to getting married and joining a new family. And every family has a unique culture. It doesn’t matter if your companies’ culture is “The Addams Family,” “The Waltons,” or “One Flew Over the Cuckoo’s Nest.” Everyone needs to be shown the ropes lest they get hung by them. The way each new person joins your organization will ultimately determine his or her overall productivity and contribution to your mission. Human resources has a very large role in making sure that every new employee is qualified for work and gets the required trainings and paperwork handled. But if you stop at that then you will have missed the one chance to create a great employee from the start. Getting onboarding right is critical to engage and enroll your new employee. If they are just out of school they will want to engage with enthusiasm that, rightly directed and focused, will add value to your organization. Onboarding is not a one day, one week, or even one month process. To do it right and get the right results it must fit the position being filled and it needs to be a dynamic process that changes as the company does. Some best practices include:

The List Enlist a subgroup of employees at the same level as the new hire to create an accounting of the things each new employee needs to know when joining the group. Everything goes on this list. Include how to work the copier and where the restrooms are, who to talk to on different subjects, and how communication really works in your company. This is best updated on a quarterly basis if your company has a high rate of change. This is different than what managers want—though it does include system competencies. Guides Make the last person hired the orientation guide for the new hire. As the last one oriented, they are the ultimate keep14

er of the list and can modify it to add or delete items. If your refrigerator etiquette or IT policies have changed, then they are in the best position to update the list. This guide is the “go to” person for what can be a rocky trail for new employees. They would be the source for directing the new employee to subject matter experts that the new employee needs to know. Upon completion of the list the newly oriented person adds to or modifies the list and becomes the next guide.

Leadership ‘TED Talks’ Have your leadership individually give five to ten minute meetings covering how what their team does helps the mission of the company and how best to succeed. Hold them accountable to the time limit and make it happen. Encourage questions and two-way dialogue. Any senior manager who can’t take five minutes to orient new employees has a problem bigger than a busy schedule.

how you intend to get there.

Listening Sessions After thirty days, engage in new employee listening sessions. Find someone who can neutrally listen, in small sessions, to hear what’s working and areas to improve within the company. Asking if we are living our values is a powerful question for fresh-eyed employees and especially new graduates. Other pertinent questions are:  What do we need to start or stop doing?  Do you have the tools and resources to do your job?  Do you have your manager’s support?  Where are the bottlenecks and where are the opportunities? Insight and action plans that come out of these sessions can make huge differences in how business gets done and improvement occurs.

Peer Mentoring This can be approached several ways. Mentors from within the work team are beneficial in getting someone up to speed on competency or productivity, but someone outside the group can help with understanding the culture and the “way things work” at your company so friendship and support happens more quickly. The Gallup poll on “best places to work” has always found that in the best places to work people say that they have a friend they can talk to and confide in.

Onboarding New Employees Onboarding new employees doesn’t have to be a sink or swim proposition. Each person has talents and gifts that they bring to the company when they join, and if they are enrolled and engaged properly, they will bring positive change to any organization. If you want to take your team or company to the next level of performance, there is no better way to bring that about than by fully engaging new employees. R

Embed Cultural Values Find a way to tell the story of who you are as a company, from your humble beginnings to how you got to where you are today. Tell the story of why you do what you do as a company and what you believe in. Interpret your values through stories to enroll people and set clear expectations. Everyone loves a story, especially when it includes the path of where you have been, where you are going, and

Kevin M. Dee has a master’s degree from Vanderbilt University and is the president of KMD Services & Consulting. He has more than twenty-eight years of experience providing leadership development, organizational development, and human resource services in Alaska and internationally. Contact him at mail@kmdconsulting.biz.

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SMALL BUSINESS

The community crowds the tiny tasting room at Port Chilkoot Distillery to soak in the communal atmosphere, sip spirits infused with local ingredients, and catch up with neighbors.

Photo by Bethany Goodrich

Alaska’s Innovative Entrepreneurs Walk the ‘Path to Prosperity’ Business competition awards two Haines businesses for their commitment to community

By Bethany Goodrich

ibrant local businesses are pumping new life into the historic buildings of Haines, Alaska. Home to 1,800 residents, Haines is a unique community located at the end of the Inside Passage in the southeast of the state. With 46 percent of its population unemployed, according to the Department of Commerce, Community and Economic Development, Haines joins most rural Alaska communities on a quest for economic stimulation. However, Haines is rich in entrepreneurial opportunity and business leadership. This spring, the com-

munity celebrated two local enterprises in particular: Port Chilkoot Distillery and Fairweather Ski Works. Both businesses were awarded $40,000 in seed funding for technical services through Path to Prosperity (P2P), an innovative business plan competition. The Nature Conservancy and Haa Aaní LLC founded P2P to identify innovative entrepreneurs in Southeast Alaska and connect them with the resources they need to succeed. “Innovative local businesses are at the core of a vibrant local economy. Path to Prosperity, through intensive entrepre-

neur training and business development funding, is helping to develop the next generation of creative small business owners in Southeast Alaska,” explains Norman Cohen, director of Southeast Alaska Programs for The Nature Conservancy. Thriving local businesses are central to healthy communities, and Haa Aaní LLC and The Nature Conservancy also recognize business as a valuable tool for spreading positive social and environmental impacts across rural communities. A tour of this year’s winners reveals how innovative entrepreneurs are revitalizing Alaska’s neighborhoods.

Alaska Business Monthly | May 2015 www.akbizmag.com

Port Chilkoot: ‘Our Distillery’ Fort Seward is an old Army Fort built in Haines during the early 1900s. Today, much of the barracks is in disrepair and the residents of Haines are finding creative uses for the space. A yoga studio, a smoked salmon shop, restaurants, a mill, artist galleries, and a hotel have all moved in. Among this bright cluster of locally owned businesses stands Port Chilkoot Distillery. Heather Shade founded the distillery in 2012 with her husband and business partner, Sean Copeland. “People were skeptical at first; they were like: ‘You are doing this here in Haines, why not do it some place where it is easy, where you are closer to bigger markets?’” says Shade. Producing on a budget, endless paperwork, and regulations are obstacles Shade and Copeland continue to navigate on a daily basis. Despite these challenges, the duo have celebrated many successes. Port Chilkoot has three products on the market—50 Fathoms Gin, Icy Strait Vodka, and 12 Volts Moonshine. The first batch of a three-year barrel-aged whiskey is expected to release later this year. These products serve a high-end niche market across Alaska. Shade successfully lobbied for legislative changes to allow an in-house tasting room. And this spring the couple received a gold medal from the prestigious National American Craft Spirit Awards for the best tasting gin. “I think we have proven so far that it can be done. Why not in Haines? Why does it have to be somewhere else?” says Shade. P2P supports businesses plans that have positive social, economic, and environmental impacts on their communities. “We want to be smart about our consumption and use of energy, heat, water,” Shade says. “And that made sense from a business stand point because it is also cost effective in the long run.” Waste heat from the production process heats the building space. “As for organic waste, we don’t really have any,” Shade says. Spent grains are dished out to the community to feed pigs and nourish gardens. Creating salary-wage jobs and supporting the local economy are important to Copeland and Shade, who hired their first full-time employee to run the tasting room last winter. “Think about all the other people we www.akbizmag.com

are connected to locally to make this business. Like Laura, who designs our labels, Kevin, who designed our logo, Eric, who prints our shirts, and Sally, who grows our herbs—there is a human face behind every process,” Shade says. She stresses how community benefits extend beyond economics. “There is something intangible here as well, and that’s just sense of pride. Our community is proud now that we have a distillery and that we have a ski builder, and I think it does something psychologically where we are more

willing to get involved or to talk in a positive way about things that are happening in our community… It fosters interest in our community, it fosters leadership, it gives a sense of change towards something good,” Shade says. The community crowds the tiny tasting room to soak in the communal atmosphere, sip spirits infused with local ingredients, and catch up with neighbors. “I hear people calling it ‘our distillery.’ That is what we always wanted, for the community to think of it as ‘Haines’ Distillery,’” says Shade.

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Photo by Bethany Goodrich

Fairweather Ski Works founders Graham Kraft (left) and Ian Seward add a top sheet before loading the skis into their homemade wooden ski press that will add 180 degrees of heat and up to sixty-thousand pounds of pressure.

Another Path to Prosperity

By Bethany Goodrich

he Path to Prosperity competition supports local businesses that have a positive social and economic impact on their communities, promote sustainable use of natural resources, and increase entrepreneurial leadership across Southeast Alaska. In 2014, Path to Prosperity’s second year, the program received applications from twenty-eight budding entrepreneurs. Port Chilkoot Distillery and Fairweather Ski Works, both in Haines, were selected as the 2014 winners. Path to Prosperity also introduced a “People’s Choice” online voting competition that Coppa, an artisanal ice cream and café in Juneau, won. All three entrepreneurs were awarded $40,000 in seed funding to support the development of their businesses. Path to Prosperity offers valuable resources to the network of applicants. All twelve semi-finalists participate in a three-day entrepreneur “boot camp” where participants are connected to support services and are coached in how to write a comprehensive business plan. Entrepreneurs network with attorneys, marketers, and other industry professionals. Additionally, sustainability experts lead discussions on how social and environmental responsibility are integrated into business planning. The twelve semifinalists also receive a scholarship to the University of Alaska Southeast School of Management to further strengthen their entrepreneurial capacity. Path to Prosperity is seeking applications for this year. New and existing businesses are encouraged to apply. Deadline for entries is 5 p.m., May 31. Go to p2pweb.org for applications and more details.

Haa Aaní LLC and The Nature Conservancy are the founders of the Path to Prosperity Contest. Haa Aaní LLC is a subsidiary of Sealaska Corporation and is dedicated to addressing economic challenges in Southeast Alaska’s communities by fostering sustainable industries. The mission of the Nature Conservancy is to conserve the lands and waters on which all life depends. R 18

Fairweather Skis: Local at the Core Haines is surrounded by mountains. Jagged snowy peaks scale over four thousand feet in all directions. Unsurprisingly, Haines is a top mountain sports destination that attracts skiers and snowboarders from across the globe. Graham Kraft and Ian Seward are the brains and brawn behind Fairweather Ski Works. “This is such a hot ski destination and nobody is building skis here… it seemed like a no brainer to be doing this locally. We are uniquely fitted, we have the quality of wood, the quality of mountains, and the spotlight on Haines—we are set up for success,” says Seward. Seward and Kraft combined years of woodworking experience and an adoration for backcountry exploration to found Fairweather Ski Works in 2013. It took the duo six years of trial, error, and skiing to master the current design. Local wood is at the core of every ski. “We are lucky to have both paper birch and Sitka spruce available locally. These are the two main ingredients for traditional wood ski building because they both have an optimum strength to weight ratio and a great degree of flexibility without breaking,” Seward says. Seward and Kraft take pride in tracing each ski back to a carefully selected, sustainable timber source. “Our skis are a very efficient use of wood, and we only use about six board feet per pair of skis. By selectively harvesting or using salvaged timber, we can make our impact on the environment as minimal as possible while still contributing to the local economy,” says Kraft. Kraft and Seward look to local businesses for goods and services whenever possible. Many of their products are adorned with the work of local artists. They also support the greater Haines economy by strengthening ski-based tourism, a key economic driver in the community. “We are working with community partners to build back-country ski huts in the area as part of a larger movement to try and bring off-season, winter tourism to town. That’s going to be a big help to this place,” says Seward. When they are not in the woodshop perfecting their designs they are out testing them on the slopes.

Alaska Business Monthly | May 2015 www.akbizmag.com

“Our skis are designed to handle the rigors of the Alaska wilderness. We have personally tested them on a human powered traverse completely across the largest non-polar icecap in the world, through Glacier Bay, Wrangell-St. Elias, and Kluane national parks. We also have a quickly growing number of Alaskans on our skis testing them out in all corners of the state,” boasts Kraft.

Innovative Small Businesses Build a Sustainable Alaska Economy Rural Alaska communities face many economic challenges. “One big challenge is that the people of Haines seem to be divided about what their vision is for making the place economically sustainable while still preserving its way of life, its natural beauty, and resources,” says Shade. “Part of our original vision when we created Port Chilkoot Distillery was to prove that we could do things on a small scale that fits into the community, that people want, that also exports products out of the community and imports dollars to help our community grow—all without harming our way of life.” Copeland, Shade, Seward, and Kraft share this common vision for their small businesses. They are not alone. They join a diversity of innovative entrepreneurs across the region that are capitalizing on Alaska’s unique resources to build successful, sustainable, value-added business ventures. Alana Peterson is the P2P Competition Administrator for Haa Aaní LLC. “We received over one hundred applications in the first two years of the P2P program. This just proves the region is rich in entrepreneurial activity and opportunities. It also speaks to the need that entrepreneurs in the region have for technical support when it comes to starting or growing their businesses,” says Peterson. Ian Grant is the Associate State Director for the Alaska Small Business Development Center—a supporting partner of P2P. Grant shares this sentiment. “Healthy small businesses truly are the backbone and driving force of a sustainable Alaskan economy. In 2014, the impact of Alaska Small Business Development Center clients alone represented sixty-six new businesses, 239 jobs, and $89.99 million in private investments,” Grant says. www.akbizmag.com

“Small businesses face a broad spectrum of challenges whether it be in accessing capital, managing high energy costs and fixed expenses, or the overall business management.” For small businesses in particular, the “path to prosperity” can be punctuated with obstacles. However, with the support of innovative partnerships and programs like P2P, entrepreneurs across the region are proving that a sustainable and diverse Alaska economy is within reach. “We are rich in natural resources. We are rich in culture. I think we often get

stuck on the challenges, but the opportunities are huge,” Peterson says. “All the businesses that we have identified through P2P have really made me feel optimistic because they were already out there. We didn’t create these businesses or these people.” R Bethany Goodrich is a freelance multimedia journalist and the Communications Coordinator for the Sustainable Southeast Partnership.

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EDUCATION

Business and the New Entry-Level Workforce United Way and Anchorage community partners invest in Anchorage youth By Tasha Anderson

usiness is a never-ending cycle of finding and training new employees. Especially, perhaps, for entry-level positions, when often applicants have absolutely no job experience and little to no understanding of workplace expectations. United Way and community partners, including the Anchorage School District, nonprofits, and the business community, are taking a look at the whole education picture to prepare Anchorage’s young potential employees for work, all as part of the larger 90% by 2020 partnership, called Destination 2020 by the Anchorage School District.

90% by 2020 “Let’s start by clarifying what [90% by 2020] isn’t: it’s not a program, it’s a movement,” says June Sobocinski, VP of Education Impact for United Way Anchorage. “Our role [at United Way] is to create a space for the community to come together to get better results, in this particular case, around student outcomes and workforce readiness.” Sobocinski says that more than ten years ago a movement began to improve measurable outcomes in terms of graduation and other benchmarks for students in the Anchorage School District, which extends from Girdwood to Chugiak. Anchorage School District graduation rates in 2013-2014 were 73.54 percent for the four-year cohort and 81.02 percent for the five-year cohort. Sobocinski says 90% by 2020 is “a diverse partnership in the service of getting the right work happening to impact results for students” with more than one hundred individuals and organizations, including the school district, businesses, nonprofits, churches, early childhood education providers, and others. “It isn’t one strategy; it’s multiple things from birth to career,” she adds. 20

8th Grade Math Benchmark United Way’s 90% by 2020 partnership specifically refers to one of the six Anchorage School District’s Destination 2020 goals “90 percent of students will graduate high school” by the year 2020. There isn’t one data point that can indicate whether or not a young student will graduate from high school, but data has suggested that one indicator is a student’s proficiency in 8th grade math. Sobocinski says that students who are not proficient in 8th grade math are 25 percent more likely to drop out before graduation. “That was a regression analysis that the Anchorage School District and the partnership did… All this data analysis also surfaced another really interesting thing: kids that stopped consistently attending [school] around the 4th or 5th grade level really fell off in terms of proficiency [in 8th grade math],” she continues. Those two factors, attendance in the late elementary school years and math proficiency in middle school or junior high, have a huge influence on a student’s likeliness to graduate from high school in four years. “Attendance is a huge thing that, holistically, systemically, if we can improve that, math would improve,” Sobocinski says. Workforce Readiness Taskforce Making sure that students graduate from high school is, of course, not the end of the road. The 90% by 2020 partnership also wanted to address how to prepare young adults to transition from high school to entry-level positions in the Anchorage workforce. Because of this concern, the Workforce Readiness Task Force was formed in September 2014, led by United Way’s Director of Business Engagement Kimberlee Stocker. Other members of the task force

are Andrew Halcro, formerly with the Anchorage Chamber of Commerce; Joe Wahl, GCI; Lauren Caraghar, First National Bank Alaska; Debra Ahern, Cook Inlet Regional, Inc.; Ruth Schoenleben, Nine Star; Cheri Spink, School Business Partnership; Nancy Miller, Alaska SHRM (Society for Human Resource Management) State Council; and Diane Maples, Career Technical Education and Counseling for the Anchorage School District. Approximately half of the members of the task force work or direct HR departments in their respective companies, meaning many have had the opportunity to work with entry-level employees straight out of high school. The task force’s initial goal, then, was to expand from their own views “to gather the perception from the business community: what [other] HR directors are seeing from recent graduates entering into base, entry level positions and see what skills their employers ranked highest and lowest.”

2014 Workforce Readiness Survey With that goal in mind, the task force created and the Anchorage Chamber of Commerce administered the 2014 Workforce Readiness Survey, receiving replies from 213 Anchorage businesses. “As a group we classified those [new employee skills/qualities] into five different groups: basic business skills, critical thinking and problem solving skills, time management skills, interpersonal skills, and personal qualities, and then we gave an option for comments,” Stocker says. The results of the survey (online at 90by2020.org/workforce-readiness) were not overwhelmingly positive, though Stocker points out that these are the level of skills as perceived by employers. Of the twenty-nine skills/qualities

Alaska Business Monthly | May 2015 www.akbizmag.com

surveyed, only three were rated at the “base acceptable” level or above, with the remainder as “needs improvement” or “severely lacking.” The three qualities that did come back as being acceptable were “willing to follow directives from supervisor,” “willingness to learn,” and “helps others.” Stocker says that the HR directors in the task force were actually encouraged by which three attributes were acceptable. “They were very excited that the three that were average were trainable qualities... skills can be taught; interpersonal qualities and who we are is harder to change,” she says. Nancy Miller, director of the Alaska SHRM State Council and member of the Workforce Readiness Task Force, says that she wasn’t surprised at the survey results, especially since the survey is concerning young workers who have specifically transitioned directly from high school to the workplace. “That’s a drastic change,” Miller says. “At least when a student attends college many begin full or part time jobs and their transition might be a little easier. But I did like that it wasn’t all gloom and doom.”

Destination 2020: ASD’s strategic plan

Every child. At least one year’s growth. Every year. estination 2020 is the district’s comprehensive, multi-year plan to increase student achievement. The plan focuses on improving the performance of every child to ensure at least one year’s academic growth each year. Destination 2020 is built on the district’s mission, vision and core values as outlined by the school board. Learn about how Destination 2020 was created and its components.

Goals and strategies Goal 1: 90 percent of students will be proficient in reading, writing and math. ASD will deliver comprehensive K-12 curriculum with explicit and differentiated instruction to all students. Goal 2: 90 percent of students will graduate high school. ASD will increase opportunities for every student to reach his or her potential and achieve career and college readiness. Goal 3: Every student will attend school at least 90 percent of the time. ASD will increase student and parent engagement and enhance student experience in the classroom. Goal 4: 90 percent of parents recommend their child’s school to others. ASD will build stronger relationships with students and parents through effective communication and parental involvement opportunities. Goal 5: 100 percent staff and students feel safe at school. ASD will provide a physically and emotionally safe environment for all students and staff. Goal 6: All departments will rank in the top quartile for operational efficiency. ASD will improve long-range planning to enhance and focus programs to augment overall effectiveness. R

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Miller says that the fact that these young adults are willing to learn and be trained suggests that they will end up doing well, and adds that the workers are bright and smart and need more workforce ready guidance. Joe Wahl, also on the task force and VP of Human Resources for GCI, says that he wasn’t entirely surprised at the results, although he was “surprised that they were as low overall.” In 2014 GCI hired, out of 2,820 applicants for entrylevel positions, 236 employees; GCI has quite a bit of experience working

with young employees right out of high school. Wahl says that the two biggest areas that need improvement, through his experience, are employees separating personal and professional uses of social media and issues around punctuality and attendance, observations that were reflected in the survey results. “[New workers] need to know that when they come into work, it’s different; it’s a different culture than high school. When you come into work and you close the door, you’re getting paid for your work and your attention at work; we’ve

Your most valuable assets are your employees. Developing a steady stream of workforce ready graduates doesn’t happen by chance. Your active participation is an investment in our children and in our economic future. You can make the difference!

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RETURN ON COMMUNITY INVESTING WHERE WE LIVE

To get involved contact Elizabeth Miller at emiller@ak.org 22

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had success with setting the proper expectations early on in a formalized new hire orientation,” Wahl says.

What’s Next Identifying a problem is the vital first step in addressing it—ideas and action are next. The Workforce Readiness Task Force is already preparing to move forward with the information acquired through this survey. The task force took an opportunity at the 2015 Anchorage Economic Development Council Economic Forecast Luncheon to ask gathered business community members how they would be most likely to involve themselves in solving the workforce readiness issue. The number one response, Stocker says, was acting as a peer-to-peer champion, “basically just sharing best practices and programs they have in their business.” “We’re looking at potentially, if we can do it, putting together an Internet toolkit,” Wahl says. “So if you have businesses that are willing to share their best practices, whether it’s presentations or procedures or whatever is helping them.” Other businesses would then have a resource without needing to develop training or procedures from scratch. He says this could especially be a benefit to small business leaders and management that may not have the resources of a training department or be able to afford pre-done training programs and materials. The task force’s vision doesn’t end with the business community sharing best practices to train entry-levelposition employees. “We’re also talking about doing an online toolkit for students,” Wahl says. “There are probably a lot of students that say, ‘I’m a little intimidated going to my first job; I’d like to know what the expectations are.’ And if they can, why not let them do a self-study course on some of this to prepare themselves?” The Workforce Readiness Task Force wants to set in motion a system that would allow the Anchorage business community access to training tools to prepare a new generation of workers while simultaneously communicating to those employees, before they’re even hired, what expectations are. Everyone saves time, money, and potential issues.

Alaska Business Monthly | May 2015 www.akbizmag.com

Collaboration, Not Competition Wahl is excited about his participation in the Workforce Readiness Task Force: “Anything that we can do to help prepare our new employees to be better and more productive is great,” he says. He continues, “I’ve been very pleased on the professionalism and the willingness of the business community—and not just the business community; we’ve got United Way and the Anchorage School District, and it’s a cross-pollination between business and community—engaged on trying to solve this very important issue… it’s a culture of cooperating and sharing that is amazing.” Miller’s views are in a similar vein. “I’m very excited to be a part of this task force.” She says that she loves to work with high school students, and found herself participating in the task force, in part, because of the many opportunities she takes to volunteer to work with the youth. “Many of the students that I have met through my volunteer efforts are very bright and energetic. So if we can just find a way to get them on

the right track in starting a career, that would be wonderful.”

Leaders Bringing up Leaders A spirit of collaboration permeates the many moving parts of the 90% by 2020 partnership. Damian Bilbao, business development manager for BP, is a member of the Executive Committee of the 90% by 2020 Leadership Team, which is comprised of more than forty individuals from a variety of sectors, including nonprofits, the Anchorage School District, Alaska Native corporations, the University of Alaska, and large and small privately owned businesses that operate in the state. Bilbao says, “All of us are members of the Alaska community. We are about Alaska, we care about the youth in Alaska, and we’re trying to improve the quality of life for young Alaskans.” He says that the group formed about a year ago, and since that formation he’s seen a lot of progress. “We’ve collected a tremendous amount of data to ensure that where we’re deploying resources is actually going to make a difference in the students’ lives,” Bilbao says.

“Sometimes we tend to do our very best to help students, and it’s important to make sure that we can verify that what we’re doing is translating into measurable results.” Bilbao says that in addition to measurable data, the team makes sure to go back to teachers and faculty in the Anchorage School District to see if their anecdotal experience contradicts or reinforces what the data is showing. He, too, is impressed with how the community is rallying around the 90% by 2020 movement. “I’m impressed with the commitment of the individuals, not just in the leadership group, but the individuals that, day in and day out, are working on this. It is really inspiring to see Alaskans come together all fully committed to helping the next generation of Alaskans find opportunity. It is remarkable the way that it’s being done with such professionalism and such a love for Alaska.” R Tasha Anderson is an Associate Editor at Alaska Business Monthly.

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May 2015 | Alaska Business Monthly

TELECOM & TECHNOLOGY

High-Tech Security Surveillance and Mobile Monitoring Solutions By Tracy Barbour

ecurity systems are evolving beyond standard alarms, low-quality cameras, and blurry surveillance video analyzed on rare occasions. Modern security surveillance solutions often merge a host of elements: highquality cameras, Internet technology, wireless networks, mobile devices, RFID (radio frequency identification), and far-reaching radar systems. Remote-controlled drones, though controversial, represent emerging technology for security surveillance. In Alaska, security surveillance and telecommunications companies offer a wide range of solutions to help corporations, governmental agencies, educational institutions, retail outlets, and even mom-and-pop shops protect their valuable assets. Some of the latest security surveillance options allow organizations to leverage live video to actively monitor sites and track “events” as they happen—in real time. “It’s not just to look at the video after the fact to mitigate risk and liability associated with the property,” says Edward Knoch, director of security technology solutions for NMS Security, a division of NANA Management Services LLC. “The reality is they could prevent so many instances if they had proactive video.” That’s where Virtual Guard Services from NMS Security comes in. Under the cloud-based solution, NMS technicians monitor live video and ancillary data that customers transmit to its control center and then respond to certain “events” as they occur. The events, based on protocols customers assign for each camera, could include triggers such as changes in motion, temperature, or scenery. NMS technicians— who have a military or law enforcement background and are trained to identify threats—follow the procedures pre-established by customers. Their response

could include contacting law enforcement, notifying the customer’s security staff, or taking other actions. Virtual Guard has a wide range of applications for proactive security surveillance. The system can also use customers’ cameras for scene analysis, velocity movement, and deep analytics with facial and license plate recognition. As a broader service, NMS can integrate RFID into its platform to help customers track objects, people, and other assets with small radio transponders known as “tags.” This technology is especially useful for rental car agencies needing to track employees transferring vehicles between locations. “We put triggers in the system to make sure the vehicles get to their destination,” Knoch says. Customers with a vast amount of space to monitor can take advantage of passive radar systems. The radar— which allows one camera to surveil the same amount of space as about thirty cameras—can scan up to 340 acres and detect up to twenty-five objects within its field of view, according to Knoch.

Cloud-Based Video Surveillance through Alaska Communications Alaska Communications offers a Video Surveillance Monitoring service through a partnership with NMS Security. The service uses the latest in surveillance technology to deliver live video over a dedicated broadband data connection to the NMS’ video monitoring center, where security agents view video alerts in real time and dispatch security or local law enforcement to investigate. “We give customers the tool to prevent, rather than only react to crime,” says Alaska Communications Vice President of Enterprise Solutions Bill Bishop.

Bill Bishop, Alaska Communications

Clients have access to a private cloud to store video for up to thirty days in high definition. The company delivers its solutions via an Alaska Communications virtual private LAN service or metro Ethernet. Cloud-based video surveillance offers real-time access to more places than physical security systems. According to Bishop, this translates into tremendous value for customers, who receive virtual eyes on the ground at all times. “Our network allows NMS Security systems to provide live, on-site responsiveness to events such as natural disasters or theft,” Bishop says. “Ultimately, we help clients improve their security systems at a cost savings. Instead of having one guard onsite, they can leverage a secure, high-capacity network that will increase security for one flat monthly fee.”

Wireless Video Surveillance Monitoring from Verizon Verizon also recently partnered with NMS Security to introduce Alaska businesses to wireless video surveillance monitoring services. Customers can

Alaska Business Monthly | May 2015 www.akbizmag.com

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leverage Verizon’s wireless network to expand their security footprint without the need for cables. Removing cabling from the security surveillance equation significantly reduces costs and deployment time, says Terry Dell, Verizon PNW/Alaska region innovation specialist. “To use a cellular modem with a video camera, it could take only days to get it up and running versus running cable, which could cost several thousand dollars and take several months to deploy,” Dell explains. As another benefit, cellular security and surveillance is not dependent on the delivery of power, so an outage won’t stop the video feed. “Unlike most hard-wired systems, if someone cuts the power, your video cameras can still be running,” Dell says. “With battery power as a backup, the cameras continue to operate during an outage or loss of connectivity.” Verizon also provides customers with a level of objectivity when it comes to responding to security-related events. Technicians at the NMS Security operations center aren’t emotionally entrenched in the unfolding events, Dell says. So, for example, if a security camera witnesses a national disaster or large civic event, they can report the occurrence with a clear and impartial mind. Dell says Verizon’s wireless video surveillance is ideal for public safety, military, educational, and agricultural applications. So far, the company has seen the solution implemented across all major industries in Alaska. www.akbizmag.com

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Security Solutions from GCI GCI also offers a variety of high-tech solutions to help customers secure their property and staff. It provides the platform that supports many security surveillance and mobile monitoring services, including Internet and 4G LTE wireless technology, as well as 4G LTE modems for customers that prefer an Ethernet-based solution. GCI works very closely with customers to ensure all the necessary components are properly connected. “We help them evaluate a variety of vendors on the market and help them create a solution,” explains Senior Manager Commercial Product Marketing Greg Schlabaugh. “We also work with security vendors to help them with the implementation of systems. These companies don’t have the telecommunications infrastructure to put in that final piece of the solution.” The latest security surveillance products from GCI do more than help customers monitor locations against potential break-ins and loss. They can also help them keep better tabs on a whole range of assets, Schlabaugh says. For example, GCI’s FleetTraq option makes it easier to ensure drivers are appropriately using company vehicles. For less than $15 per month per vehicle it provides a web portal that allows customers to track location, speed, gas consumption, and other data in real time. The system also reports engine codes, which can help the business stay on top of maintenance and prevent costly repairs down the road.

FleetTraq also has a Mobile Worker feature that helps customers manage employees more effectively. Mobile Worker—available for around $25 a month per individual—focuses on improving employee efficiency and safety. The service lets customers establish geographic fences, get speed alerts, and receive reports of vehicles entering or leaving assigned areas. It also allows workers to obtain work orders and submit pictures of competed jobs with their smartphone. “These systems have been out for a number of years, but they were traditionally custom built [and more expensive],” Schlabaugh says. “Now the systems are being offered in a more standardized format, so they are less costly and easier for small businesses to deploy.”

Northern Security and Surveillance Offerings At Northern Security and Surveillance, owner Christopher Meador is busy installing Internet Protocol (IP) video security systems for businesses. IP video surveillance, which is powered over the Ethernet, features high-powered cameras that can record thirty images per second and, in some cases, see 360 degrees around a room. The cameras can be remotely operated, turned, and zoomed to capture more details.

“It’s basically for security purposes to ensure unauthorized personnel are not leaving the building with things they should not be leaving with.”

—Christopher Meador Owner Northern Security and Surveillance

IP video produces video at a much higher-resolution than older analog technology. “It can identify things about the offender you wouldn’t normally be able to see, such as a watch, belt buckle, or a name embroidered on a shirt,” Meador says. Customers of Northern Security and Surveillance are implementing IP video for various reasons. Bars and night clubs typically focus on protecting employees and securing parking

Alaska Business Monthly | May 2015 www.akbizmag.com

lots. Other customers want to monitor entrances, exits, and corridors. “It’s basically for security purposes to ensure unauthorized personnel are not leaving the building with things they should not be leaving with,” Meador says. The beauty of IP video, Meador says, is that it “likes” the cold. The system’s cameras can operate effectively in temperatures as low as negative sixty degrees Fahrenheit, which allows Northern Security and Surveillance to service clients throughout Alaska, including Kotzebue, Bethel, and Sitka.

AT&T Supporting Machine-toMachine Solutions In Alaska, AT&T is using machine-tomachine (M2M) solutions to help businesses modernize their security surveillance and mobile monitoring systems. M2M solutions connect millions of disparate devices to a network, allowing for the two-way exchange of information. The elements encompassed in M2M—often referred to as the Internet of Things—can include security systems, power meters, vehicles, pipelines, wind farm turbines, vending machines,

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and other electronic devices. AT&T’s goal is to help drive wireless capability, whether it involves assisting customers with software or hardware needs, says Application Sales Consultant Manny Lewis. As part of its M2M solutions, the company provides everything from video monitoring to access control to employee monitoring. “Sometimes we are the solution provider, but we are also the ones who are supporting the devices that the customer is using at the time,” Lewis says. Many businesses in Alaska have large, remote areas to cover and M2M solutions allow customers to keep a virtual eye on their facility—even if no one is there. They can discover when doors are unlocked and opened, determine generator fuel levels, and other intelligence. Information collected from the site is funneled into a web portal customers can use to better manage their resources. AT&T does more than just provide the hardware and software to make M2M work. It helps customers figure out how to effectively manage their connected assets within AT&T’s network, according to Lewis. The process typically in-

Manny Lewis, AT&T

volves taking a consultative approach to identify the goals for the project as well as the company, he says. “We go in and find out what the customer needs and build a solution around that.” R Tracy Barbour is a former Alaskan.

May 2015 | Alaska Business Monthly

ENERGY

Above and Right: The Emmonak Tank Farm was recently completed and is now in use.

Photos courtesy of Alaska Village Electric Cooperative, Inc.

Rural Power Grids By Rindi White

esidents of rural and remote communities in Alaska spend as much as 47 percent of their household income on energy, based on 2008 energy prices, according to a 2012 report on rural energy use from public policy forum Commonwealth North. The sting hits low-income households the hardest. Mid-range income households in the same areas pay around 13 percent of their household income for energy, the report states. But it’s still a lot more than Alaska residents living on the road system pay for energy, where heat and power is delivered via an interconnected grid and largely based on less-expensive natural gas instead of higher-cost diesel. In road-system communities, low-income households typically pay about 18 percent of their income to energy sup28

pliers, while mid-range households pay about 6 percent. That’s not because rural residents are using more energy—most use less than half the energy urban consumers use, the report states. The state has recognized this disparity and provides help through its Power Cost Equalization program, which assists customers in rural areas by offsetting the per-kilowatt-hour charge. In fiscal year 2015, the state appropriated $41 million from its Power Cost Equalization Endowment Fund to 190 rural communities to help subsidize

the high cost of power in rural areas of the state. But is continuing to pay a portion of each rural resident’s power bill the best solution? Meera Kohler, president of the Alaska Village Electric Cooperative (AVEC), says no. Kohler chaired a committee working with Commonwealth North that, in February 2012, issued a report outlining a plan for a statewide energy grid. “One of the conclusions was that we have to connect the state,” Kohler says. The Commonwealth North report emerged about the same time as a plan

Alaska Business Monthly | May 2015 www.akbizmag.com

by the All Alaska Energy Project to build a high-voltage direct current concept that would connect the state using efficient transmission lines. “Up till now, all the projects visualized a future that was a carbon copy of the current,” Kohler says. That is, she explained, that other proposed projects do little to capitalize on the state’s abundant natural resources. “This offered the ability to capitalize on those resources … and no other project does that,” she says.

Building a Statewide Energy Grid The plan hinges on a large (two thousand megawatt) gas-fired power plant at the North Slope. That initial phase is estimated to cost $2.5 billion. Proponents say it would allow North Slope producers to take stranded gas to market and create a long-term, sustainable market for it. The large plant would make energy production more efficient and more cost effective than smaller, community-operated, diesel-run power plants. Emissions would be reduced and the plant could integrate Arctic wind resources, according to the All Alaska Energy Project website. The delivered power cost is estimated at a nickel per kilowatt-hour, compared to the estimated $0.58 to $1.05 per kilowatt-hour cost many rural energy customers pay. The second phase, with an estimated price tag of $1.65 billion, would transmit the power via a high-voltage, direct current line the four hundred-plus miles south from the North Slope to Fairbanks. According to the All Alaska Energy Project, the transmission line would be adequate to serve both Fort Knox gold mine and the Livengood mining district, in addition to residents served by Golden Valley Electric Association. The third phase would extend the high-voltage transmission line west to the Kotzebue and Nome area, a distance of more than three hundred miles. The phase is estimated to cost $900 million and would result in an estimated delivered power cost of between twelve and seventeen cents, depending on how much power is being transmitted. The Energy Project reports that the line www.akbizmag.com

Alaska’s Infrastructure Experts

May 2015 | Alaska Business Monthly

The Stebbins Power Plant entrance (above) and back of the plant (right), showing radiators, was completed in 2013. The Emmonak Power Plant is in the early construction stage and will look similar. Photos courtesy of Alaska Village Electric Cooperative, Inc.

would carry adequate power to serve the Ambler mining district, Red Dog Mine, and would also provide a path to market for wind projects on the west coast of Alaska. Phase four would extend the line roughly three hundred miles to Bethel and the surrounding area, with enough power to serve communities in the area as well as the Donlin Gold mine. The Energy Project estimates this phase would cost $510 million and would deliver power at between ten and twelve cents per kilowatt-hour. The final link in the project, with a $1.2 billion estimated cost, would connect the high-voltage line to Southcentral. Linking to the larger market could lower power costs for urban Alaskan consumers, along with providing a path 30

to power for the Susitna-Watana dam hydroelectric project, as well as other tidal, wind, and geothermal projects. The total project cost is significant—$6.76 billion. And with the state in the midst of a fiscal shortfall, Kohler says she isn’t hopeful the project will gain financial backing anytime soon. “There’s a lot of interest in the project,” Kohler says. “But nobody is really able to make commitments to help build out the system or help to generate power, because there isn’t any assurance that it will be built.” The next logical step, Kohler says, is if the state will show its support by helping investigate the viability of the project. “I still hope that’s going to happen, but obviously in this period of belt

tightening, it’s not likely,” she says. Although costly, Kohler and the project supporters say the investment would boost investment in the state by opening up the possibility of industrial activities outside the Railbelt areas, where energy costs tend to be lower. The state has already invested millions in other energy-related projects, not to mention the money local utilities have invested in upgrading or building new power generation systems, that Kohler and others on the Commonwealth North and Energy Project teams say would be better-served by being connected to a statewide energy grid. “The reality is, everything that has occurred is not adding any capacity to the system. We still have huge unmet needs that result in our exporting our resources raw. Until we start thinking in that fashion, we’re always going to be a colonial state. Our jobs are being exported, our resources are being exported; we need to staunch that flow,” Kohler says. For now, Kohler says she will continue to promote the idea in the hopes that interest will coalesce and funding will eventually become available. But until that time comes, Kohler and her cooperative, AVEC, are working on expanding grids on a much smaller scale. “The Alaska Grid project is aspirational; it certainly doesn’t drive what we’re working on here [at AVEC]. In

Alaska Business Monthly | May 2015 www.akbizmag.com

the meantime, we continue to put our shoulder to the wheel and continue the work we’re doing,” she says.

Increasing Efficiency, Two Communities at a Time Two projects by AVEC to connect communities via a low-voltage, twenty-fivekilovolt electrical line are expected to wrap up this year, Kohler says. For AVEC, connecting communities is a big deal. The cooperative has the largest service territory of any in the state, connecting fifty-six communities, mostly in western Alaska, and serves more than thirty thousand people. But it provides community-based electrical service on a small scale; the communities it serves average 420 people and, unlike its larger power cooperative colleagues, its members are served not by a few large power plants, but by small, community-based (and mostly diesel) power plants. AVEC operates forty-nine power plants and more than 170 diesel generators. It owns more than five hundred fuel tanks, with a capacity of 8.5 million gallons of diesel. It also operates

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thirty-four wind turbines, serving fifteen villages. All told, the power cooperative sells about 74 million kilowatt hours of power in fifty-five villages each year; about 1.3 million per village. That’s just over half the power the Carrs/Safeway store on Huffman in Anchorage uses in a year, according to info from AVEC. “Any time you can connect communities, you’re aggregating the load and making the generation more efficient, and there are clearly economies that can be gained by that,” she says. The first project, expected to be complete this spring, will connect St. Michael and Stebbins, southeast of Nome. The second is a long-awaited wrap-up to a project connecting Emmonak and Alakanuk, on the lower Yukon River. The projects are mostly grant-funded with a combination of money from the US Department of Agriculture’s High Energy Cost grant program and from the state’s Community Development Block Grant program, which contributed $850,000 to the Stebbins/St. Michael project. The interties themselves aren’t that costly, Kohler says—around $3 million

for each project—but AVEC also beefed up the power generation facilities in two of the communities as part of the project and built new tank farms.

Retiring One Plant, Replacing Another The Stebbins/St. Michael Intertie project will connect the two communities and lay the groundwork for another project in the future to add wind power. AVEC Project Manager Forest Button says a new power plant, with a twomegawatt capacity, was placed online in spring 2014. It replaces a one-megawatt power plant that had served the community since around 1970. Two new tank farms—one for AVEC and the second for the community to use to provide heating fuel for city hall and other community-owned buildings—were also installed in Stebbins last year, Button says. AVEC’s tank farm holds approximately 410,000 gallons of diesel fuel and the community’s tank farm is designed to hold approximately 275,000 gallons of diesel and 103,000 gallons of gasoline. This spring, the electric cooperative was busily working to connect the two

May 2015 | Alaska Business Monthly

communities via a twenty-five-kilovolt line. Button says the intertie project was 53 percent complete in late March, with a target completion date of late April and commissioning estimated for June. He estimated the roughly ten-mile intertie project would cost about $34 million. Anchorage-based construction company STG, Inc. is doing the work. Because residents of the four communities receive subsidies from the state’s PCE (Power Cost Equalization) program, Kohler says it’s difficult to pinpoint exactly how much their monthly bills will be reduced after the intertie projects are completed. The savings will likely go mostly to the state’s share of the bill, Button says. “If our costs go down by ten cents [per kilowatt-hour], people’s bills don’t go down that much, because the Power Cost Equalization offset is less,” he says. “Who does benefit is the commercial interests in the communities because they don’t receive the PCE offset.” Button adds that AVEC generally pegs the savings to the utility of retiring outdated power generation facilities at about $140,000 per year. But that num-

ber doesn’t include the added yearly maintenance and operational costs for the new line.

Wind In, Tank Farm Complete, Power Plant Is Next A new bulk fuel tank farm, a key piece of the project to link Emmonak and Alakanuk, was completed last year in Emmonak, Button says. The tanks are currently supplying fuel to the community’s 2.4 megawatt power plant, but AVEC plans to finish construction of a new 3.2 megawatt power plant in March 2016 and connect the new tank farm to the newly commissioned plant while retiring the old plant. The project will also tie in four one hundred kilowatt wind turbines that are currently supplying Emmonak with renewable power. The approximately ten-mile intertie between Emmonak and Alakanuk is complete, Button says, and the new 3.2 megawatt power plant already has a foundation. When the first barge arrives in the community in the spring, it will carry the supplies needed to begin construction of the plant, he says.

AVEC is also working on an intertie project between New Stuyahok and Ekwok, but Button says the cooperative doesn’t currently have enough funding to build that intertie. That project includes a new tank farm in New Stuyahok, a relocated 1.36 megawatt power plant in that community, and a plan to retire a thirty-yearold plant in Ekwok, in addition to the approximately eight-mile line connecting the two communities. The design phase of the project is 65 percent complete, Button says, and AVEC is pursuing additional funding. He says the cooperative is also working with a construction company to analyze the design to see if there might be ways to reduce project costs. It’s a lot of work for the busy utility, but Kohler says it will pay off eventually. “Building grids is complicated and expensive. If you do one every three to four years, you’re thrilled to have accomplished that,” Kohler says. R Freelance journalist Rindi White writes from Palmer.

Alaska Business Monthly | May 2015 www.akbizmag.com

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ENERGY

Reinventing Electricity in Alaska’s Railbelt A how-to soon to come

By Naomi Klouda

laska’s Railbelt communities form a patched grid of six separate owners when it comes to electricity. The Matanuska Electric Association (MEA) supplies electricity for lights and heat in an area sprawling from Eagle River to Denali National Park. The northern-most cooperative, Golden Valley Electric Association (GVEA), takes over from MEA at the park’s borders for coverage centered in Fairbanks that supplies heat and light with 3,177 miles of power lines in a 5,973 square mile service territory that includes North Pole, Chena Hot Springs, Delta Junction, Healy, Nenana, and Cantwell. The most populous segment of the state, Anchorage, comes under one or the other of two electrical utilities’ coverage: Chugach Electric Association (Chugach) or Municipal Light and Power (ML&P). Chugach, an Anchorage co-op formed in 1948, serves an area extending its transmission lines to from Hope and Moose Pass in the South to Eagle River in the north and, more recently, to Fire Island in Cook Inlet. ML&P’s twenty square miles includes Anchorage’s oldest neighborhoods, Downtown and Midtown business districts, and the industrial loads at the Port of Anchorage. This utility, formed in 1932, also serves Joint Base Elmendorf-Richardson and powers 3,911 street lights. What isn’t covered by Chugach on the Kenai Peninsula is handled by Homer Electric Association (HEA) for the larger towns of Homer, Kenai, and Soldotna, as well as smaller hamlets and villages across Kachemak Bay. The City of Seward operates its own power plant, Seward Electric System, making it the smallest of the six Railbelt utilities. What if these six utilities joined forces under one umbrella to create a unified system? That’s an idea many years old that is now gaining better traction: 34

the Regulatory Commission of Alaska (RCA) will be issuing a recommendation in June after rounds of public testimony end in May. If the utilities do form what’s called a Uniform System Operator, or USO, what’s at stake? What would it take in terms of changing the Alaska Regulatory Commission’s statutes? The proposal, if it proves feasible, offers to gather all of these separately operating utilities as a joint endeavor. The catalyst for accomplishing this is called ARCTEC, an acronym for Alaska Railbelt Cooperative Transmission and Electric Company. ARCTEC’s board is made up of two members from each Chugach, MEA, GVEA, and SES who direct the efforts of Chairman David Gillespie. Joe Griffith, MEA’s CEO, acts as the chief executive of ARCTEC.

The Problem That Alaska has some of the highest utility rates in the nation is a well-worn problem that stymies business projects. Even though the state produces its own natural gas and fuel as well as hydro and wind projects, the expenses continue because of an aging infrastructure in need of replacement. ARCTEC estimates it will cost $900 million to launch the Railbelt into a more energy efficient, less expensive future. That price tag is based on a study by the Alaska Energy Authority commissioned in 2014. ARCTEC Director David Gillespie puts it this way: “Co-ops have fiduciary obligation to their members, not the region as a whole,” he says in a round of giving PowerPoint presentations to groups. Patchwork transmission charges and little systemwide planning create competing priorities. “The physical transmission system cannot deliver the existing generation, let alone new generation [power],” he says. “The electric system is technically complex, with issues that are sometimes only understood by engineers. This can create an atmosphere of mistrust.” Transmission lines don’t always have enough capacity to carry cheap power from the Kenai to Anchorage or from Anchorage to Fairbanks, Gillespie says.

Another problem: regulation. Tariffs are structured in such a way that a wind developer in Anchorage—such as CIRI on its Fire Island wind power project— needs to pay three different utilities to use their lines to sell power to Fairbanks, Gillespie says. The Alaska Legislature in 2014 granted the RCA a $250,000 appropriation to hire staff and conduct public hearings. The RCA’s task is to hear from stakeholders such as businesses and individuals and from the utilities themselves. When their work is done, says RCA Commissioner Bob Pickett, the RCA will have an extensive written record laying out how to proceed—if a decision to proceed is made by the utilities. “We will have a record that is similar to what we do in other proceedings, but this will be much more detailed than our consulting reports,” Pickett says. He encourages readers to go to the RCA website (rca.alaska.gov) and read transcripts of testimony received so far to follow the discussion.

What’s at Stake? Gillespie worked on the first piece of the picture during the 2015 legislative session. He made rounds speaking with individual legislators and at hearings to bring lawmakers up to speed on the concept—its pros and cons. “We’re creating an awareness in the Legislature of a system operator solution, so we can pass legislation for the RCA in terms of what statutory authority do they need,” Gillespie says. “If we need to change Statute A, B, or C, then they will be ready with the legislators who understand and can get a bill introduced.” Meanwhile, Gillespie also works on a grassroots effort to help the public understand how a USO would work. The concept is that by organizing all the Railbelt utilities under one entity, a number of the utilities’ mutual problems can be solved. One major issue is financing. How can these independents replace an aging infrastructure and make upgrades that cost an estimated $900 million—while keeping electric bills reasonable for consumers?

Alaska Business Monthly | May 2015 www.akbizmag.com

“There is an opportunity to save many millions of dollars annually by restructuring the way we manage the Railbelt electric grid. There are diverse stakeholders, but we agree on far more than we disagree. It takes a lot of work to get people to agree what is the right way to go about bringing down power costs,” Gillespie says. “I think it resonates with people to try to manage the grid as a single entity as opposed to six independent and uncoordinated [entities],” he says. “Generally, it’s an easy concept. But like many things, it’s also very complicated, and the devil is in the details.” Four of the six utilities are on board to help explore the details and possibilities: GVEA, MEA, Chugach, and Seward Electric System. HEA has opted out altogether, pursuing its own Independent Light program that has already been replacing outmoded systems to integrate new more energy efficient ones. ML&P also has declined to join ARCTEC. But under the leadership of COO and General Manager J.A. Trent, has recently started to send a representative to sit at the table during meetings and take part in the discussion.

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Seward Keeps Open Mind Seward Electric System operates a bit like ML&P. It is a city-owned utility that answers to the Seward City Council. Willard Dunham, treasurer of ARCTEC and board member, characterizes Seward’s thoughts about forming a joint transmission system as not firmly committed yet. “Seward supports reviewing and looking into whether a USO is the answer or if an independent one is,” Dunham says. “No utility has made a decision. We’re looking at the options and seeing how it can be accomplished. We’re looking at the RCA for a directional review.” At its present capacity, SES is a selfcontained utility that owns thirty-eight miles of transmission line. The town’s had its own generation since 1937, Dunham says. SES is able to sell power, in a purchase agreement, to Chugach in cases where Hope, Moose Pass, or Crown Point experiences outages. It has its own backup power source, with $8 million recently paid out for upgrades in new generators, system controls, buildings, and shops. Dunham emphasizes the work of the ARCTEC board hasn’t focused on a deci-

sion yet. “We’re looking at could it be accomplished? It’s a work in progress. We have not made any commitment yet, but the thought is that if you can make our system better and more stable, then we are interested,” he says. The lack of uniformity or decisions in planning for the future are the current system’s greatest flaws, he adds. Dunham says discussions at ARCTEC meetings aren’t concerned about taking over any utility’s assets. “We are looking at the idea of a unified transmission line,” he says.

GVEA at the End of the Line Cory Borgeson, CEO of GVEA, says he’s pleased to be part of the discussion for building a stronger transmission system. “We’re pleased to be part of the ARCTEC. We see it as a consortium, as a unification of interest to build a stronger transmission system,” Borgeson says. “We really need to have an organization that is on-point to put this together.” Power in numbers can bring down the estimated needed $900 million in improvements, Borgeson says. An inefficient system ends up costing consumers more

May 2015 | Alaska Business Monthly

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because of the electrical waste, he explains. “Much of the utilities’ technology is thirty years old, which is old technology. We need better technology and better control systems, and if we do that, the cost of bringing electricity online will cost less. There will be less line loss—less congestion on lines. Then we won’t lose as much electricity and we won’t lose significant dollars. How to do that? By coming together.” Collective planning means putting heads together to figure out how to find financing. Upgrades aren’t then shouldered by each small utility, he says. Alaska has four co-ops and two municipal-owned utilities, but no investorowned utilities in the Railbelt. “We need a transmission system. Think of it as a highway. We need to get enough lanes to get all the cars down there without a traffic jam,” Borgeson says. “We all have our own cars and trucks. But we have to have a highway, a united grid.”

Chugach Electric’s Role Chugach operated as a quasi USO since the mid-1980s, notes Executive Manager of Grid Development Brian Hickey. Through a series of agreements with GVEA in Fairbanks, MEA in PalmerWasilla, and HEA in Homer, Chugach acted as a co-op serving 80 percent of the Railbelt until more recently. That meant Chugach did the planning, construction, and operations for an expansive area. The wholesale power agreements terminated for HEA in 2013 and for MEA in 2014, and through April this year. There were advantages in the arrangement that showed efficiency for joining agreements, rather than total independence on the part of each utility’s operation. “Now that broad area has been fragmented,” Hickey says. “So if we are not going to have the prior arrangement, then what arrangements can we make on good investments going forward?” Renewable projects like wind and hydro are worked into the energy grid as an on-going need, he says. The tangle of jurisdiction is made complicated since the electrical transmission system comes under different ownership from Homer to Fairbanks. But the Railbelt grid itself operates as a single machine, Hickey says, by way of illustration. Electrical generators in Fairbanks move the

same as generators in Homer. Much like automobiles, which have tires and engines that tend to work on the same principles. “Yet, if the tires just take care of the tires and the driveline just takes care of driveline, you reach a suboptimal solution,” Hickey says. That’s where the Railbelt stands at a disadvantage in its ability to provide interconnections because each is tasked to only worry about its own function. A big concern on consumers’ parts has been costs. Those in Anchorage’s ML&P and Chugach coverage areas pay lower kilowatt rates than Fairbanks, for example. Will an integrated system cause Fairbanks to pay less while Anchorage pays a higher rate than before? The overall cost-benefit ratio will benefit consumers, Hickey says, though at first those who pay more may pay less, and vice versa for those at the lower rate now. “There will be a period of transition,” Hickey says. But the net makes the overall cost-benefit ultimately lower, he adds. The results of the AEA study pointed to a clear cost-benefit ratio. The benefit of a USO is that it centralizes costs for improvements and finds a way to fund them, Hickey says. In the Lower 48, an investor-owned utility can both bring down costs to benefit consumers and do well on its investment, he says. He has been meeting with financiers visiting Alaska to explore how merchant-owned utilities from private funding might function to solve the Railbelt’s electrical integration issues.

Next Step The RCA’s response to its docket request from the Alaska Legislature will go a long way toward determining whether the proposal to form a joint Railbelt transmission grid could prove feasible. The deadline for the commission’s final report is fast approaching in June. ARCTEC’s Gillespie says he feels encouraged by discussions he hears in public arenas and adds: “I think we are making good progress.” R

Naomi Klouda is the former editor of both the Homer Tribune and the Tundra Drums. She is a lifelong Alaskan and freelances from Anchorage.

Alaska Business Monthly | May 2015 www.akbizmag.com

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SMALL BUSINESS

Renee Schofield: Alaska Small Business Person of the Year 2015 Rural Ketchikan entrepreneur honored by Small Business Administration

By Naomi Klouda

enee Schofield, the owner of Tongass Substance Safety, Inc. (TSS), will be honored as the SBA Alaska 2015 Small Business Person of the Year on May 7 in Ketchikan and again in Washington, DC this June. Schofield is credited for savvy sense that made a small town business grow regionally by helping businesses respond to a complicated market need: the mandated drug testing and safety certification requirements regulated through the DrugFree Workplace Act of 1988. Ketchikan’s status as a major commercial fishing, ship building, and aviation hub meant assisting employers and license-holders to meet federal and state requirements. Schofield’s award marks the first time since 1990 a person from Ketchikan was selected for the Small Business Person of the Year recognition in Alaska. US Small

Business Administration Northern Area Manager Scott Swingle says the SBA feels particularly pleased to honor a rural business, which in Alaska means overcoming a lot of hurdles to compete and win against more advantaged companies doing business in the state’s urban centers.

Winner is Humbled “This is very humbling,” Schofield says. “There are so many good businesses in Alaska. Southeast has a culture of supporting people. It’s neat to be recognized on a state level, where there are so many deserving businesses. But I didn’t get here on my own. Once you’re clear on your vision, there are so many willing to help you get there.” TSS operates in Ketchikan, Juneau, and Craig and opened offices in Keokuk, Iowa; Quincy, Illinois; and Hannibal,

Missouri. For the past sixteen years, TSS has provided services in occupational health and safety. TSS specializes in Department of Transportation drug screening but also provides services for employers such as background screening, health fairs, paternity testing, life-saving CPR/ FA, and multiple training offerings to inspire employee motivation. The company employs thirteen people in its six locations. Schofield travels among them on a regular basis for support and client interaction. She also conducts training in drug screening and collector training of the Certified Professional Collector Program-Drug through the Alcohol Testing Industry Association. She also is now a practicing life coach. How Schofield evolved the business comes as an unexpected story of a woman’s innovation and foresight.

Alaska Business Monthly | May 2015 www.akbizmag.com

Learning a Whole New Field Though she had lived in Ketchikan previously, where her husband was raised, the couple lived in Iowa for several years while Schofield ran an entirely different kind of business. She owned and operated a newspaper called “The Farm Hand,” serving an Iowa agricultural county. Information provided in its pages was meant to serve the farmer and non-farmer alike, she says. In 1997, the couple and their two children returned to Ketchikan. Schofield worked as a clerk for a local physician at Ketchikan Medical Clinic until setting her sights on acquiring TSS in 1999. At that point, TSS functioned as a small business with two clients. Before her newly-acquired business could grow, it would need to match its services to a lot more clients. “Through the Small Business Development Center, I was helped getting a business plan going. And it’s interesting this award comes about because of them,” Schofield says. Armed with the Small Business Development Center plan and a bank loan from First Bank, a local lender, Schofield leased space from her former boss, Dr. David Johnson, who owned the Ketchikan Medical Clinic on Tongass Avenue and happened to have the space available. It formerly had been used as clinic space for patients’ X-rays. “After acquiring the business, I moved into the medical clinic. It held lead walls because of the X-ray machine and no windows,” she says. “It was just a one-person shop, just me, for a couple of years.” Yet, the medical space provided a logical facility where blood draws and screenings could be completed. Networked Expansion To build a client base, Schofield began by networking. The role would prove especially important for educating industries required to comply with changing regulations. It meant helping small businesses and individuals navigate often confusing federal and state rules in the Drug Free Workplace Act of 1988 and Mandatory Guidelines for Federal Workplace Drug Testing. “Anywhere there were people, I talked about drug screening. I wore my TSS shirt and went wherever I could. I did a lot of things like that to build the business.” www.akbizmag.com

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In 1999, “networking” still meant face-to-face encounters. Schofield made presentations for the Chamber of Commerce, the Rotary Club, borough, and city councils. She spoke about her company’s availability for helping those in need of complying with federal and state drug, alcohol, and safety regulations. “Anywhere I could get to a podium and have an audience, I did it. I also did a lot of direct marketing through calls and mail-outs.” It’s not enough to reach those in need of the service—the message itself needs to be basic and to the point, Schofield found. It boils down to answering the question: what services do we provide? “How do you tell people what you are doing in less than a minute—in line at a grocery store, on an elevator or on an airplane? You have to be able to relay to them in short order. That’s how we’ve done so well.” One of her largest clients was the Ketchikan Ship Yard, now called the Alaska Ship and Dry Dock, leased and operated by Vigor Industrial. She expanded services to cover any industry-related requirements which included lead level testing and phlebotomy services. “We’re a great Lego block. If an employer needs to meet new requirements, we’re the Lego block that makes that happen,” Schofield says. “Our true mission is to take care of people. How do we find what the client needs? By listening louder.”

Listen, Learn, Teach In serving industry needs, TSS’s random drug screening program responded to the federally licensed pilots, tanker operators, and fishermen. Schofield felt it would be important for her to listen to public testimony and participate on committees where, over the past two decades, drug screening and safety requirements changed on both the state and national levels. She served from 2011 to 2013 as chair of the Alaska State Chamber of Commerce. She currently serves as past chair on the Chamber of Commerce in Ketchikan and the Alaska Chamber. TSS is also a member of the Chambers in Juneau, Prince of Wales, and Skagway in Alaska, as well as in Keokuk, Iowa; Quincy, Illinois; and Hannibal, Missouri. Schofield currently is serving her 40

third term on the Advisory Board on Alcoholism and Drug Abuse—appointed by three different Alaska Governor’s Office administrations. She chairs the Substance Abuse Task Force of Ketchikan and is a member of the governing board of the Ketchikan Wellness Coalition. Her professional affiliation on the Drug and Alcohol Testing Industry Association spans sixteen years. She expects to be seated on the board of the Drug and Alcohol Testing Industry Association at its annual conference in June. TSS is also a member of the Substance Abuse Program Administrators Association. Both associations provide training, education, and advocacy in various platforms. TSS staff members attend conferences annually for updated training in their field. “I found I can’t stay simply an employer or business owner. I must keep abreast of information and disseminate out the information. Part of taking care of people is more than meeting physical needs; it also means making sure their lives are complete. One way is by looking at what regulations are coming forward and helping them in their business environment by putting that knowledge forward,” she says.

Community Leadership One of the key criteria for this prestigious Small Business Association recognition is community interaction and contribution, Swingle says. Schofield’s accomplishments providing a unique service that went beyond the profitmaking motive of business success helped her nomination shine. Longtime associate Glen Thompson, now acting as comptroller for the Ward Cove Group, helps illustrate the role Schofield serves through the story of his own interaction through the years with TSS. Thompson was the Ketchikan Small Business Development director in 2002 when he first worked with Schofield. He helped her expand TSS through achieving financing. “I worked with her in that capacity, and then became a client,” he says. Thompson became general manager in 2003 of the trucking company Alaska Pacific Environmental Services, now called Pacific Waste. In the transportation field, a myriad of safety requirements govern each step of the way

from ocean going vessels to trucks. This waste services transportation company operated from Nome to Ketchikan to Dutch Harbor, a considerable distance for Thompson to oversee. “There are complex drug testing laws that differ from industry to industry,” Thompson says. “My job was to make sure the garbage gets picked up. Meanwhile, they (TSS) navigated through mine fields and reams of legislation to keep our safety up-to-date.” TSS provided just that, a “seamless” response to regulations so that Thompson could run the transportation network. “The regulations were pervasive, but not as well understood. She streamlined the process for people who had to comply,” he says. Now, as comptroller for Ward Cove Group, an ocean-going freight and passenger service, Thompson finds he is again working with TSS, which was already engaged as the safety consultant for that company. Schofield’s gone the extra miles providing leadership for her community. Thompson sees her as a generous contributor to local nonprofits yet also generous with her knowledge, time, and volunteerism.

Helping in Times of Crisis In fact, Schofield’s generous nature and her interest in helping her community led her to invest in an extremely compassionate line of work. Several years ago, Southeast Alaska suffered a rash of suicides. It was then that Schofield noticed that once the police and EMS crews removed the body and left the scene, the family was then responsible for cleaning up the site on their own. “It’s a second major trauma,” says Schofield, “to ask a family to clean up in the event of a suicide. That should never happen.” So she went to a training program in Texas, specifically designed for crime and trauma decontamination. Along with another trained person, the duo have been on several scenes to de-con and clean up the aftermath and restore a site, as much as possible, to normal. “Family members should never have to see this type of situation, much less try to figure out how to take care of it,” she says. “Our work here matters a great

Alaska Business Monthly | May 2015 www.akbizmag.com

deal. We now have completed scene decons in aircraft, homes, clothing, and boats.”

Small Business Citation Though Schofield says she believes it took “a community” to help bring TSS to its current business success, she also posits a few pieces of advice to others working a small business. A small business may at first appear a solitary venture, but Schofield immediately availed herself of a “team” composed of a solid accountant, an encouraging banker, and an attorney. “Once you are clear about what you want, get aligned with the professional advice that can help you go there,” she says. “My banker, CPA, and attorney will all at the drop of a hat meet with me to talk about how do we do that next step.” Jay Johnson, Schofield’s CPA, has worked with her the past decade. He says her ability to motivate her staff and “strive for excellence makes her really good at taking care of her customer base.” To grow as a drug screening and safety service in the town of Ketchikan might at first glance seem an unlikely small business. “But there are a lot of government jobs here that require that kind of testing. We have an airport with all the pilots, a string of islands where the aviators supply everything from mail to milk and eggs,” he says. “Our ship and dry dock is expanding all the time.” Ketchikan was awarded the contract to build the Alaska-class ferries for the Alaska Department of Transportation & Public Facilities. “That’s a big deal for a small community,” Johnson says. Schofield expanded her knowledge base to match the needs of the unique community, he says, which enabled her to teach certifications and grow to meet industry demand. “This is the result of a lot of people working together,” Schofield says. “It’s my staff, and it’s the Southeast community that is incredibly supportive of supporting local businesses.” R Naomi Klouda is the former editor of both the Homer Tribune and the Tundra Drums. She is a lifelong Alaskan and freelances from Anchorage. www.akbizmag.com

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Oil & Gas

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Alaska Business Monthly | May 2015 www.akbizmag.com

Solving Problems in the Oil & Gas Industry: Q&A with BP’s Janet Weiss

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Oklahoma State University in the mid80s. My plan was to stay in the university atmosphere earning my bachelor’s, then master’s, a PhD, and then become a professor. I had no plans to enter the energy industry. But, I also had limited funds to go to college so I found a long-term internship which gave me a way to earn money. The company was ARCO, and it was developing fields on Alaska’s North Slope. From that point on, I saw the energy industry differently. I love solving problems and I really liked math, chemistry, and physics. I saw tons of great problems to solve in an interesting environment. I was swept by the possibility of moving to Alaska. Alaska Business Monthly: What have you found most rewarding about your work with BP in Alaska? Weiss: The people. Alaska is an extraordinary place and I lead a team of dedicated people, from the front line of Prudhoe Bay to the Anchorage office. It’s clear that my job as BP Alaska’s regional president is to deliver safe and reliable operations. I want our employees on the front line to know how important their role is to making that happen. It’s important to me that everyone goes home safely. Our two thousand employees are also 80 percent Alaska hire, with a lot of pride in their communities. Annually, BP and its employees support more than seven hundred community and education groups across Alaska through their volunteerism and philanthropy activities. Alaska Business Monthly: How do you cultivate young Alaskans for internships and employment with BP? Weiss: We support the University of Alaska system by providing internships for engineering, business, and geoscience students. We also support the process technology programs at UAA, UAF, and the Kenai Peninsula College. In the past decade we’ve hired 167 graduates as employees and interns from the process technology programs. Statewide, BP and our employees support STEM [science, technology, engineering, and mathematics] education through programs such as: First in Alaska Robotics, the Girl Scouts Women in Engineering and the Sciences, and the

Alaska Business Monthly | May 2015 www.akbizmag.com

Alaska Native Science and Engineering bridge program for high school students. Alaska Business Monthly: What does a girl or young woman need to do to become an industry leader like you? Weiss: While the numbers would suggest that oil and gas may be a maledominated industry, that is not the entire picture. There are more women entering the industry and rising to leadership positions each year. The oil industry is a fascinating place with a lot of problems to solve, and today that talent pool that we have to choose from is rapidly changing. Things are different from when I joined the business thirty years ago. I believe that education has been a great enabler of that diversity, especially for women. The industry is listening more to our differences. At BP we work to attract, motivate, develop, and retain the best talent from a diverse pool of candidates—our ability to be competitive and to thrive globally depends on it. Alaska Business Monthly: Where has your career with BP taken you—geographically and up the corporate ladder? Weiss: I started my career in Alaska in 1986 as an engineer. Over the years, I’ve had positions as a process engineer, reservoir engineer, and petroleum engineer. My career took me from the North Slope of Alaska to London, then to the Gulf of Mexico, and onto BP’s Western Wyoming business. I also worked in global roles developing unconventional gas technology and ensuring we had the right development and deployment processes for our operations and our health safety and environmental leadership and staff. Prior to being named the Alaska regional president for BP, I was the Alaska region vice president for subsurface delivery. Alaska Business Monthly: What is BP doing to reduce its existing footprint in the Alaska fields it continues to operate? Weiss: The Alaska oil fields require continually improving technology to carry on responsible development and www.akbizmag.com

production in this amazing and challenging environment. Over decades, BP has implemented drilling and completion technologies, which reduce our surface footprint and allow us to reach a much larger reservoir subsurface area. These drilling and completion technologies include horizontal directional drilling, coiled tubing drilling, multilateral wells, and right-sized development from gravel pads. We also continue to ensure the use of state-of-the-art monitoring techniques to assure the integrity of our facilities and implement monitoring procedures. Alaska Business Monthly: What enhanced oil recovery techniques are deployed in existing Alaska fields BP is invested in? Weiss: Technology has increased Prudhoe Bay’s proven reserves. In 2012 Prudhoe Bay produced its 12 billionth barrel. That was well over the initial recovery estimates of about 9 billion barrels, and there is still more oil to go after. Drilling and completion techniques combined with enhanced oil recovery technologies are providing big benefits at Prudhoe Bay. After forty years, Prudhoe Bay is still the largest oil field ever discovered in North America. Every day at Prudhoe Bay, as much as 8.5 billion cubic feet of natural gas is produced and re-injected back into the ground to maintain reservoir pressure and produce more oil. Injecting the gas has improved the recovery and extended the life of the field beyond the initial estimates. Enhanced oil recovery pioneered on Alaska’s North Slope includes miscible injectant, an enriched gas that scrubs more oil out of the reservoir. Other technologies have also provided benefits. This winter we are finishing a North Prudhoe Bay 3D seismic survey. The $78 million survey covered approximately 190 square miles and will support potential land-based oilfield development. It’s important to apply technology above ground too, like the unmanned aerial vehicles, also called UAV or drones. The FAA granted BP and its vendor AeroVironment the first commercial license overland in the United States to use the technology at Prudhoe Bay. The UAV are equipped with remote May 2015 | Alaska Business Monthly

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Weiss: In 2014, BP announced a sale of interest in four North Slope oilfields to Hilcorp. This sale included all of BP’s interest in the Northstar and Endicott fields and 50 percent of BP’s interests in Milne Point field and the Liberty prospect. This was a challenging, yet beneficial transaction. A company like Hilcorp specializes in getting more production from mature fields and will add years to the field lives. Hilcorp will also help bring on opportunities faster at the Milne Point oil field and potentially Liberty. This big portfolio change allows BP to play to its strengths at the giant Prudhoe Bay field and the potential development of Alaska LNG. In addition, this change should translate into additional production, which will benefit Alaskans. BP’s business in Alaska is smaller, but, BP still has about two thousand Alaska employees and supports twenty-six thousand jobs across the state. BP remains committed to its plan to increase activity at Prudhoe Bay as a result of oil tax reform with the goal to minimize production decline. Weathering the oil price drop will not be easy, but we are already working to increasing drilling production-adding activities at Prudhoe Bay. BP is continuing its work to streamline activity and increase efficiency. For instance, we have accelerated drilling and non-rig well work at Prudhoe Bay by nearly 35 percent since 2012. In 2015, we plan to complete 552 well jobs at Prudhoe Bay, as compared to 355 well jobs in 2012. Alaska Business Monthly: Does BP plan on investing in any Arctic OCS leases, either by bidding at sales or through partnerships? Weiss: We have no plans beyond BP’s 50 percent interest in the non-operated Liberty prospect.

Alaska Business Monthly | May 2015 www.akbizmag.com

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Alaska Business Monthly: What can you say about the industry’s latest challenge—$50 per barrel oil and the possibility of $25 per barrel oil—when no more room in stockpiles causes a bigger glut on the global market? Weiss: BP has publicly stated that we see this low price environment continuing the next several years. However, we have seen this play before. I joined the industry in the mid-80s and those were very lean times with prices less than $10 per barrel oil. What I learned were some great principles of working very hard and stepping up and contributing where it counts. It was an environment where you had to prove that you could contribute and that you had the skills to compete in a tough business. The challenge for BP is to respond to this low oil price environment in a way that improves efficiency and accelerates innovation. BP must ensure that we are making smart investments and we are reviewing the timing of our investments to make sure all make sense in the current low price environment.

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Alaska Business Monthly: What is next for you and for BP in Alaska? Weiss: We have been building momentum and must keep moving forward. That’s why it’s critical that BP remain focused on two things: continuing to invest in Prudhoe Bay production-adding activities like increased well work and drilling; and moving forward with the Alaska LNG project with our co-venturers, including the State of Alaska. BP remains committed to progressing an Alaska LNG project that includes the State of Alaska as an equal participant and co-investor in the project. Alaska LNG is the leading opportunity and what has put this in to play is the potential to compete in the global market. Also, the alignment among the producers is stronger than it has been in the past, which has enabled unprecedented progress. A mega project of this magnitude needs strong co-venturer alignment, access to the global market, and an enabling environment from the state to move forward. I look forward to advancing this mega-opportunity with the other co-venturers. R www.akbizmag.com

May 2015 | Alaska Business Monthly

special section

Oil & Gas

North Slope Activity Sees Increased Investment Spending continues to rise despite low oil prices By Mike Bradner

rude oil prices are less than half of what they were eight months ago, but so far companies in Alaska are bucking the national trend of shelving rigs and laying off workers and are pushing ahead with field development projects on the North Slope, along with exploration. There are projects in construction by the major slope producers, including ExxonMobil Corporation’s Point Thomson liquid condensate project east of Prudhoe Bay and ConocoPhillips’ CD-5 oil project, near the Alpine field to the west. ConocoPhillips is also proceeding with Drill Site 2S and the 1-H NEWS (Northwest West Sak) project, both oil projects in the Kuparuk River field. Point Thomson will begin production in 2016, producing and shipping ten thousand barrels per day of liquid condensates to the Trans Alaska Pipeline System at Prudhoe Bay. “First oil” at CD-5 is expected in December 2015, with production estimated to peak at sixteen thousand barrels per day. Drill Site 2S has an estimated peak production of eight thousand barrels per day. 1-H NEWS is expected to produce nine thousand barrels per day.

Other Projects In other projects, Brooks Range Petroleum is now drilling development wells on its small Mustang project west of the Kuparuk River field and is expected begin fabrication of production facilities later this spring. The company expects to have first production—eight thousand to ten thousand barrels per day— by mid-2016 and with output increasing to twelve thousand barrels per day in 2017, according to Brooks Range’s Chief Operating Officer Bart Armfield. 48

Another independent, Dallas-based Caelus Energy, has begun work on its $1.5 billion Nuna project, also west of the Kuparuk field. Caelus expects to have fifteen thousand to twenty thousand barrels per day in 2017, according to its spokesman Casey Sullivan. A gravel access road and a twentytwo-acre gravel production pad are being completed this spring, Sullivan says. Production facilities would be installed in the next two winter seasons, in time for the startup by the end of September 2017. Nuna is an onshore oil deposit near the offshore Oooguruk field also owned and operated by Caelus. Caelus received a temporary reduction of state royalty on Nuna, but as part of the deal the company agreed to put the project into development despite the current state of oil prices and markets. The company said it has signed authorizations for $480 million in expenditures to date and is preparing to spend an additional $800 million. Caelus put those figures in a March 10 letter to the Alaska Department of Natural Resources. Explorers are also busy this winter. Repsol, the Madrid-based international major energy company, is back with three rigs working, exploring its leases in the Colville River delta region near the Alpine field on the slope. The company is evaluating discoveries made three years ago and plans to file applications for development permits in June, Repsol spokeswoman Trish Baker says. The applications do not indicate a commitment to begin the development, she cautions. The results of this winter’s drilling and flow-tests must be reviewed before a final decision is made.

Meanwhile, Great Bear Petroleum, also Anchorage-based, has resumed test drilling in a prospective oil shale play south of Prudhoe Bay that also has conventional oil targets. Two wells are being drilled this winter, company vice president Pat Galvin says. If drilling is successful Great Bear hopes to fast-track production, with the Trans Alaska Pipeline System only two miles away. Meanwhile, the company will also do more tests on shale formations as part of this winter’s drilling, continuing a program started in 2012, Galvin says.

Previous Obligations With companies stacking rigs in the Lower 48, why are firms in Alaska still pushing ahead? For two of the larger projects, CD-5 and Point Thomson, work began before the collapse of oil prices and to shut down the projects would add considerable expense. Also, both ExxonMobil and ConocoPhillips are obligated by commitments to government agencies to get the projects done. ExxonMobil’s agreement is in a settlement of litigation with the state, while ConocoPhillips’ agreement is with the federal government on CD-5. However, ConocoPhillips did have discretion with the new drill site and West Sak projects in the Kuparuk field but pressed ahead because informal commitments had been made following the state Legislature’s approval of oil tax reform in 2013. As for the two small independents, Brooks Range and Caelus, there are also factors aside from oil prices at play. Brooks Range must have Mustang producing in mid-2016 to qualify for cer-

Alaska Business Monthly | May 2015 www.akbizmag.com

tain state tax incentives that are worth a lot to the company. Caelus, for its part, is committed to develop Nuna under an agreement with the state for a temporary reduction of state royalty. Repsol’s exploration is proceeding without artificial deadlines from the state; however, the company is benefiting from state tax credits and other incentives just like the small explorers. The state’s chief petroleum economist, John Tichotsky, says Repsol’s commitment is important because it shows companies are willing to take a longterm view. “They’re willing to ride with the crude oil price cycle,” Tichotsky says. Great Bear, in its exploration, hopes to develop a new paradigm for the North Slope, a shale oil play similar to that in Texas’ Eagleford and North Dakota’s Bakken regions in the Lower 48. An extensive testing program is needed; meanwhile the company hopes to tap conventional oil prospects on its leases, such as those being tested this winter, to help pay for long-term shale development. The state’s incentive program is critically important to Great Bear, with the state picking up about 75 percent of the company’s exploration costs through a combination of several state investment tax credit schemes. “We would not be drilling these wells without the tax credits. Our entire financing structure is built on these. They are available and the state is reliable,” in paying them, Galvin says. “This is taking a huge part of the risk off of us, and it allows us to bring in more capital,” for exploration, he says. Overall North Slope capital investments are estimated at $4.45 billion this year and are still expected to increase to $4.88 billion in 2016, according to figures given by companies to the state Department of Revenue. The projected years are based in state fiscal years, with the current fiscal year 2015 starting last July 1 and fiscal year 2016 beginning this July 1. By comparison, the industry spent $3.73 billion for capital projects in 2014, the fiscal year ending last June 30, according to the state data. R Mike Bradner is publisher of Alaska Legislative Digest www.akbizmag.com

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special section

Oil & Gas

Engineering Alaska’s Oil and Gas Industry By Kirsten Swann

rom permafrost to pipeline corrosion, the engineering firms that work within Alaska’s oil and gas industry deal with it all. They provide environmental services critical to operating in the state’s harsh Arctic conditions. They pioneer new processes to meet the evolving needs of Alaska’s oil and gas sector and do geotechnical work necessary to energy projects around the state. In this field, native expertise and a well-rounded portfolio are key.

Great Northern Engineering Great Northern Engineering does a little of everything. Founded by the late John Riggs more than thirty years ago and headquartered in Palmer, the company handles everything from bulk fuel tank terminal facilities to well design to airport fueling systems. It designs tankage, secondary containment, fire suppression, transfer piping, and distribution systems for fuel facilities, as well as instrumentation and control systems. It provides computerized project management, critical path analysis, and other services necessary to bring projects from their earliest stages to completion. The business is a subsidiary of Old Harbor Native Corporation. While it has deep roots in Alaska’s oil and gas industry, its projects also span major commercial construction, telecommunications, and government work. The company’s multitalented staff members are certified in Arctic engineering and API 653 tank inspection and support projects with a wide variety of other skills honed over years on the job. But while Great Northern has extensive experience with tried-andtrue methods, the engineering firm is also no stranger to more modern technologies. The Palmer firm is working with sister company Amee Bay to bring a revolutionary new cleaning process to the Last Frontier. 50

Dry ice cleaning—a process that uses dry ice pellets in a way similar to sandblasting—has promising environmental and economic effects for Alaska businesses. “It’s a much easier, safer alternative,” says Gawain Brumfield, Great Northern Engineering CEO. “The applications are endless.” The technology works like this: First, compressed air moves solid carbon dioxide pellets through high-velocity nozzles. The pellets’ kinetic energy breaks up some contaminates on impact, and the rest is taken care of via sublimation, when the solid pellets instantly transform into gas. The rapid expansion removes any remaining contamination from the surface being cleaned; the gas disappears and the leftover dirt can be easily swept or vacuumed away. The process can be used to clean even the most intricate, delicate surfaces, Brumfield says, including electrical instrumentation, tight spaces, and complex geometries unreachable by traditional cleaning methods. The technology was mastered by Amee Bay, another Old Harbor subsidiary, but given enough demand, Brumfield says his company might invest in its own technology. It’s all about savings, both financial and environmental. The dry ice cleaning process is nonabrasive, avoiding potentially costly wear and tear to the surface being cleaned. It’s also environmentally friendly because, unlike solvent cleaning or sandblasting or water jet blasting, the dry ice process relies on recycled carbon dioxide. When the gas returns into the atmosphere after it’s used, companies avoid the costs associated with a secondary waste source that must then be cleaned up and safely thrown away. The process has successfully been used on switchboards, circuit breakers, cooling coils, rotating equipment, engines, and turbines. It eliminates the need to disassemble electrical and me-

chanical components before cleaning, as well as the need to remove flash rust prior to welding or preservation work. For Alaska oil and gas companies working with aging infrastructure, delicate machinery, and constant financial considerations, dry ice cleaning brings vast potential. “There is an art and a science to industrial dry ice cleaning and we’ve perfected the process, and the results, through extensive research, development, proofs of process, and field use for clients across the maritime and industrial fields,” Brumfield says. “The time and the maturity of the process is right for immediate implementation in the oil and gas work we do here in Alaska.” Whether they’re trailblazing new cleaning methods or performing essential corrosion prevention work, environmental issues are top of mind for most engineering firms working within Alaska’s oil and gas industry.

Taku Engineering Based in Anchorage, Taku Engineering provides specialty corrosion engineering, project management, cathodic protection, and other services for a wide variety of projects within Alaska’s oil and gas industry. Bill Mott, the firm’s principal engineer, says the work they do involves maintaining infrastructure while safeguarding one of the most valuable assets of all—the fragile Arctic ecosystems where much of the state’s oil and gas-related work takes place. “It’s nice to be working in the oil industry in a technical field, and then at the same time protecting our environment,” says Mott, who has more than twenty-five years’ experience in corrosion engineering. As oilfields age, the need for preventive maintenance only grows, he says. Many developments have been producing for decades. The Trans Alaska Pipeline System turns forty in 2017, and the science of corrosion engineering be-

Alaska Business Monthly | May 2015 www.akbizmag.com

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DESIGN. BUILD. FINANCE. OPERATE. AECOM is one of the world’s largest engineering and construction firms with nearly 100,000 employees in more than 150 countries around the globe. Locally, AECOM has been providing services in Alaska for over 75 years and has been serving Alaska’s oil and gas industry since the discovery of oil on Alaska’s North Slope. For more information: Anchorage, Alaska 907.562.3366 www.aecom.com AECOM and URS are now one company.

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comes increasingly important to helping prevent spills and other problems with decades-old pipes. Taku works with Alyeska Pipeline Services Company, which operates the pipeline, to provide corrosion and project engineering support for inspection and maintenance programs, refurbishment, integrity investigations, and decommissioning. Besides maintaining old equipment, Mott says, the firm does extensive work with new construction as well. The engineering firm’s technical staff share decades of experience working in Alaska’s unique and varied conditions. Working within the state’s oil and gas sector means dealing with everything from the fluctuating price of oil to relatively short turnaround times. A lot of Taku’s work involves testing and analysis that must be completed within a narrow seasonal window, Mott says, while some of the work is done in remote locations with limited resources. In all those cases, the firm’s northern expertise comes in to play, helping it provide vital services to Alaska’s primary industry. From ensuring systems meet industry safety standards to shielding costly infrastructure from environmental wear and tear, Taku is one of the companies that pave the way for responsible development throughout the state. “Our kind of work is critical not only to maintaining infrastructure, but to protecting the environment,” Mott says.

Golder Associates Golder Associates, a global firm with offices in Anchorage, is staffed with geotechnical engineers and hydrologists and other professionals who do extensive work with permafrost—one of the challenging realities of oil and 11:01:53 AM gas related work in Alaska. “Where are good places to put things? That’s what we help people find,” says Mark Musial, Golder Associates principal. “Everything we do is below the ground.” Musial says the firm works with onshore and offshore fields, maps ground conditions, and measures the potential for thawing. Golder staff find out where to build roads or pipelines or where to find sand or gravel for a particular project. Golder engineers and geologists stay “quite busy,” Musial says, because

Alaska Business Monthly | May 2015 www.akbizmag.com

they’re often involved with a variety of resource development projects around the state. The firm’s clients vary, too. “We work with all the major oil companies and the smaller ones on the North Slope,” Musial says. “We do a lot of front end work, then as the projects evolve and mature, we’ll be involved on and off over the years.” Their work includes everything from initial field development—infrastructure construction and initial geotechnical investigations—to projects well into the production phase. Over the years, the firm has seen a pronounced shift on the North Slope. “They’re different kinds of projects,” Musial says. “You don’t see as many of the big developments as you used to.” Despite the differences in project size these days, engineering work is just as vital to Alaska’s oil and gas industry as ever. Areas in permafrost transition provide some of the biggest challenges, Musial says, because changing ground conditions bring with them new requirements for development. For an engineer working on oil and gas-related projects in northern climes, balancing climate change models with practical considerations is an increasingly important job. “The challenge is, you have these climate change models, which are all good science, but there’s an awful lot of variability,” Musial says. “So the challenge is: What’s a reasonable approach for an engineer to deal with that? You have to temper what you’re doing.” He says Golder is doing a growing amount of work with flat-loop thermosyphons, engineering more buildings at grade with cooling systems underneath, due in part to new advances in thermo-science technology. At the end of the day, the work focuses on improving people’s lives via sustainable growth in some of the harshest environments on earth. “A lot of it is geared toward public safety and public health,” Musial says. “We’re very much involved in development, of one sort or another.” R

AN ALASKA MINING PROJECT COMMITTED TO: LOCAL HIRE RESPONSIBLE DEVELOPMENT ENVIRONMENTAL INTEGRITY

Kirsten Swann is a freelance journalist based in Anchorage. www.akbizmag.com

May 2015 | Alaska Business Monthly

special section

Oil & Gas

Making Diesel Out of Natural Gas Teaming up for a big change from a little plant By Mike Bradner

new kind of refinery is being planned at Prudhoe Bay on the North Slope. It would manufacture diesel, and possibly other fuel products, from natural gas. The customers will be North Slope field operating companies and contractors. Alaska Natural Resources-to-Liquids, an Alaska-based company, is teaming up with two Houston-based technology companies, Velocys and Ventech Engineers International, to build a smaller scale gas-to-liquids plant. Usually, gas-to-liquids plants are huge. Several are operating around the world in South Africa, Qatar, and Malaysia, operated by Shell and Sasol, the South Africa-based energy company. Velocys has been successful in scaling down the technology, however, to the point that one thousand to four thousand barrelsper-day plants are commercially viable. A four thousand barrels-per-day plant is envisioned for the North Slope, and if it is built, it would allow fuel to be made on the slope, potentially reducing diesel prices by a third at higher diesel prices and by more than 10 percent in today’s lowerprice environment. Currently operating companies and contractors working there transport their fuel nine hundred miles from refineries in Southcentral Alaska, which is not only costly but hazardous, particularly along the Dalton Highway. A North Slope gas-to-liquids plant, which could cost $250 million to $600 million depending on how much fuel is required, will supply fuel to the local resource holders and eliminate several million roadmiles of yearly transport. The plant would easily fit on a 15-acre site with room for storage tanks and a safety flare.

those come more volume and economies of scale, which brings down unit costs on a per-barrel basis to overcome the burden of high capital costs. But big capital investment also means big risk if something goes wrong. Efforts to scale down the technology have been aimed at making the plants smaller and more compact, with less capital investment and, therefore, less risk. The US Defense Department has been interested in this for years and has been the big driver in research to give the military the ability to manufacture fuel in remote locations. The Defense Department, through the US Department of Energy, provided early research and development funding for technology firms, many of them startups, to work on scaling down the process equipment needed. As happens with a lot of governmentfunded research, technologies are sometimes spun off in commercial applications. This leads to even more innovation as private firms exploit commercial market niches. That happened with Velocys, a technology firm now based in Houston with research facilities in Columbus, Ohio, and Oxford, UK. The company had its start as part of the government-owned Battelle Pacific Northwest National Laboratory. Battelle was contracted by the US Department of Energy to pursue ways of miniaturizing hydrocarbon processing for military and other uses. (Battelle is a nonprofit operator of several of the government’s national laboratories.) Battelle did develop a new microprocess technology and then launched Velocys in 2001 as a commercial spinoff to exploit the commercial possibilities.

Bigger Not Always Better In the world of hydrocarbon processing, as in refineries, bigger is usually better. Capital costs are high but with

Basic Process The basic process in gas-to-liquids (or biomass or coal-to-liquids) is the Fischer-Tropsch chemical reaction,

discovered in the 1920s, that involves a synthesis gas, a mixture of carbon monoxide and hydrogen, being fed over a reaction bed containing catalysts. This converts the synthesis gas with its relatively simple chemical makeup to paraffins made of more complex, long-chain hydrocarbon molecules. Basically, the Fischer-Tropsch reaction rearranges the molecules. The Fischer-Tropsch product is then fed to a hydrocracker-type refining unit that makes whatever finished product is desired, such as diesel, jet fuel, or other high-value products—but not typically gasoline. In the plants developed by Sasol and Shell the reactor units are very large and expensive. The key concept in Velocys’ approach, which was inspired by the success of the computer industry in microchip miniaturization, is the etching of flow channels on a micro-scale on metal plates. Half a channel etched on one plate and the plates are then joined with automated laser welding to form small flow channels for the gas and liquids. Several stacked plates form the core of a small chemical reactor unit, a square-shaped device. The basic process is similar to large gas-to-liquids plants except that the microchannels allow this to be done at a smaller scale, allowing the gas to flow over catalysts in the small channels.

Advantageous Approach To exploit its technology Velocys teamed up with a UK firm, Oxford Catalysts, which had developed a highly active catalyst suitable for the Velocys reactor design. The two firms decided on a merger in 2008. Since then Velocys has brought in technology partners including Shiloh Industries, Inc. of Valley City, Ohio, a firm that specializes in automated laser-welding. Shiloh also became an investor in Velocys. An alliance was also formed with a fabrication firm, Ventech

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Engineers International of Pasadena, Texas, to develop methods of installing the reactor units in modules that could be built in controlled environments and shipped to the final plant sites. A single Velocys commercial microchannel reactor, with four cores, produces 175 barrels per day of products from around 1.75 million cubic feet of natural gas per day. To get more volume several reactors are arranged in a processing train and a number of processing trains are added in parallel. A plant making four thousand barrels per day of products, like that planned for the North Slope, would need about 40 million cubic feet of gas per day. Much larger plants are possible, too, with capacities up to fifteen thousand barrels per day. An advantage for Velocys’ approach is that the investment scale is smaller and incremental, with plants being expanded as demand grows. Because of that there is less financial risk. Modular construction and standardized design reduce the work on site, avoiding delays caused by weather. With the modular construction approach a plant can be built in eighteen to twenty-four months,

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with additional reactor modules added incrementally to increase production as the product demand develops.

Development in Advanced Stages Velocys now has four commercial-scale plants using its process in advanced engineering and development, three in the United States and one in the UK. The first plant that will be operating is a joint-venture by Velocys, NRG Energy, Ventech Engineers International, and Houston-based Waste Management. The plant is now under construction adjacent to Waste Management’s East Oak landfill in Oklahoma City. The first plant will be in operation in early 2016 using both landfill methane co-fed with pipeline natural gas. Three other commercial-scale projects are in the queue behind the Oklahoma City project. In one of these, in Ashtabula, Ohio, Velocys will be the plant owner and operator, and in two others Velocys will be the technology-supplier. The Ashtabula plant will start up at more than four thousand barrels per day and will purchase natural gas from

shale gas producers in the Marcellus and Utica shale gas plants in Pennsylvania and eastern Ohio. Velocys believes the Ashtabula plant can eventually be scaled up to ten thousand barrels per day. Another project, where Velocys is the technology-supplier, is a waste-to-liquids project in the UK, GreenSky London, that is being developed by Solena Fuels. British Airways has contracted to buy jet fuel made in the plant, which is being designed to make two thousand barrels per day of products. The GreenSky plant is expected to be operating in 2017. Another biofuels plant under development, again with Velocys as the technology supplier, is a project by Red Rock Biofuels in Oregon that will use forestry waste to make jet fuel using Velocys’ technology. Southwest Airlines has signed contracts to purchase jet fuel from the plant. The plant would have a capacity to produce one thousand barrels per day and is also expected to be operating in 2017. R Mike Bradner is publisher of the Alaska Legislative Digest.

May 2015 | Alaska Business Monthly

special section

Oil & Gas

Powering Industry: By Kirsten Swann

laska’s multibillion-dollar oil and gas industry involves much more than just the massive drilling rigs or pipelines so often pictured. Those familiar symbols of natural resource development are propped up by a wide array of support services, from fuel transport to diving and salvage to metal fabrication and welding. The companies that provide those services brave everything from subzero temperatures and long, dark days on the North Slope to Cook Inlet’s strong tides and black water. Support services make up a diverse sector of Alaska’s oil and gas economy. There are large corporations and small, family owned businesses with deep ties to the industry.

Metal Magic On the Kenai Peninsula, Metal Magic has been providing quality fabricating and welding work for oilfield projects for nearly thirty years. The company’s worked with everything from HVAC ducting, heat exchangers, helicons, and fan shrouds to stainless flare nozzles and tanks, pipe coils, winch guards, walkways skids, and wind walls. There have been fuel tanks and structural columns and concrete forms. Owner and founder Scott Hamann took the business from a one-man shop to a multimillion-dollar company, and he says it all comes down to relationships and getting the job done right. “I’m a little bit of a niche business,” Hamann says. “I believe in equipment, and I have equipment that nobody else has.” Hamann’s Kenai shop is home to a 300-ton press break, a 100-ton iron worker, and a 350-ton punch press— among various other metalworking machinery. There are angle rolls and plate rolls, pipe copers, mag drills, nibblers, and a mandrel bender. 56

“The biggest challenge that all of us face is the constant up and down in the industry.”

—Scott Hamann Owner and Founder, Metal Magic

A 200 amp plasma CNC cutting machine, added to Metal Magic’s arsenal just last year, allows the shop to cut 2.5 inch steel. It’s one of the most sophisticated setups in the state, Hamann says. The variety of equipment gives Metal Magic the ability to perform an array of jobs serving Alaska’s oil and gas industry. In early March, his shop was working on a boom-stick for an excavator working for an oilfield service company and modifying a trailer for Hilcorp, among other projects. The company can bend and manipulate metal in ways few other Alaska shops can. “I have a real reputation in the industry for doing, sometimes, the impossible,” Hamann says. Metal Magic is a small company— employing anywhere from eight to around fourteen people—but the shop’s owner says that’s one of its biggest strengths. Hamann says the small size gives him the ability to keep a close eye on the quality of the work his company performs. Combined with the shop’s diversity of equipment, the small size gives the business a valuable level of versatility. “That’s really the thing with us that we do differently than everyone else,” Hamann says. “It’s small enough that we can react pretty fast to people’s needs.” A lot has changed in the industry since Hamann first opened up shop nearly thirty years ago. He says he still remembers every stage of the operation—beginning with work on his uncle’s boat.

These days, Metal Magic fabricates parts and pieces for some of the state’s most prominent oil and gas companies and can bring in $3 million on a good year, Hamann says. They’ve made skis for North Slope exploration companies and done cutwork for drilling programs in the area and seen “a massive need” for tanks alongside a recent uptick in drilling. But working for Alaska’s oil and gas industry brings its own set of bumps in the road. “The biggest challenge that all of us face is the constant up and down in the industry,” Hamann says. The boom and bust cycle can make it difficult to find—and keep—good employees. He considers himself lucky: Two of the shop’s employees have worked there for twenty years and another one has been there for about fifteen years. Hamann says he rides out the ups and downs by doing a variety of work outside the oil and gas industry. Over the years, he says, he’s grown his business through strong networks and one basic principle. “It don’t leave here unless it’s perfect, that’s just the way I look at it,” he says. The shop also has the ability to cast everything from aluminum to iron: a valuable service for oilfields built with aging and occasionally obsolete parts. If a part breaks and an operator finds it difficult to replace, operators have the ability to make a new piece from scratch. In the past, Hamann says, his metalworking business has recast new parts for old infrastructure, helping facilitate the flow of Alaska’s oil and gas industry.

Economic Engine Across the state, the services that support oil and gas development fuel an important part of the state’s economy.

Alaska Business Monthly | May 2015 www.akbizmag.com

Support services employed around 8,400 statewide in 2013, according to a 2014 report from McDowell Group, Inc. Those jobs are spread nearly equally throughout Anchorage, the Kenai Peninsula, and the Matanuska-Susitna Borough, with pockets of employment in the Fairbanks North Star Borough, Valdez, and elsewhere in the state. The work generates approximately $700 million in wages. The massive economic engine that is Alaska’s oil and gas industry harnesses support services of all sizes, from family-owned businesses like Metal Magic to corporate subsidiaries like NANA Oilfield Services, Inc. (NOSI). Despite the difference in size, the two companies share one thing in common: deep ties to Alaska industry.

NANA Oilfield Services, Inc. Founded in 1975 to support NANA’s North Slope camp, NOSI is the only full-service Chevron 1st Source Marketer in the region and provides bulk fuel delivery, lubricant, and water to the North Slope and Red Dog Mine. It’s a straightforward service with a vital role

“We’re supplying all the fuel for all the activity going on up there.”

—Brad Osborne, President, NANA Oilfield Services, Inc.

in the state’s natural resources sector. “We provide the services, lubricants, and fuel to keep the equipment running,” says Brad Osborne, NOSI president. The company’s three main services “all kind of run hand-in-hand,” Osborne says, and NOSI has seen an increase in demand for those services over the past two years or so. He attributes it to new development stemming from a recent change in the state’s oil tax structure. Besides the tax structure change, Osborne says one of the largest recent changes to his business has been a new federal requirement to use ultra-low sulfur diesel, which is not produced on the North Slope. Having to truck fuel in from Fairbanks adds another layer of complexity to the work his company does, Osborne says. Previously, the company could acquire fuel from a North Slope topping plant. These days, the fuel comes from

either Nikiski or Valdez via Fairbanks. The sourcing change required new infrastructure and a new way of doing things for a business with strong connections to Alaska’s oil and gas industry. “In the big scheme of things we’re still adjusting,” he says. “It’s been an evolution—it’s still a work in progress.” Besides support services for North Slope operations, NOSI provides numerous jobs: Osborne says half his company’s workforce is comprised of NANA shareholders. Its work has expanded well beyond the original camp. The company’s most identifiable project these days is Point Thomson—the ExxonMobil development on a site estimated to hold 8 trillion cubic feet of natural gas and 200 million barrels of natural gas condensate. NOSI has no small role in that project. “We’re supplying all the fuel for all the activity going on up there,” Osborne says. That includes bulk delivery services,

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May 2015 | Alaska Business Monthly

spot fueling, and retail sales. NOSI is responsible for transferring bulk fuel between Deadhorse and Point Thomson via ice road tanker trucks or barge and providing spot fueling services from West Dock and ExxonMobil’s Deadhorse pad. The company also provides retail fuel sales in Deadhorse, Osborne says. In a way, the company’s objective with the multimillion-dollar natural gas development is simple. “You don’t want work to stop because you don’t have fuel,” Osborne says. In a different sense, there’s more to it than that. Osborne says his company places a high value on the way in which it does business. Environmental impact and relationships with other agencies are both top priorities for the company, the president says. To get the job done at Point Thomson, Osborne says his company partnered with Crowley and NANA/Lynden, a fellow NANA subsidiary. Given the difficult environmental conditions on the North Slope, about 90 percent of the fuel for development work at Point Thomson is transferred between February and April, Osborne says. The remainder is supplemented by barging activity later in the year.

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Global Diving & Salvage Challenging environments are a constant consideration for businesses active within Alaska’s oil and gas sector. The North Slope isn’t the only harsh terrain. In Cook Inlet, Global Diving & Salvage provides support services deep underneath the freezing, murky waters. The nationwide company’s Alaska office provides blackwater still photography and video services, level III underwater non-destructive testing, OQ-compliant dive personnel, North Slope offshore exploration rig support, ship husbandry, marine salvage, and certified underwater welding. That portfolio of services involves inspecting subsea structures and pipelines, installing and repairing offshore infrastructure, pipeline stabilization and repairs, and corrosion control work. It can be demanding, dangerous work. When it comes to Cook Inlet, Global Diving & Salvage Dive Operations Manager John Juettner says there are a few main things to know. Divers are probably not going to be able to see what they’re working on, so

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they must study what’s available beforehand. Communication is critical, and divers, supervisors, and tenders have to be on the same page. The tender supports the diver from the surface, handling equipment or sending tools down. With more complicated projects, the team will do mockups and practice runs, Juettner says. “When we’re working in Cook Inlet, minutes are crucial,” he says. Tides that can turn on a dime mean there’s no time to spare. In an industry where time is money, missing a tidal window means incurring extra costs, and wasting time underwater can also bring dangerous safety hazards to the diver. Diving in Cook Inlet means perfecting the art of speed and precision, Juettner says. In order to ensure the people doing the work are up to the task, Juettner says Global is “very big on bringing people into the Cook Inlet slowly.” Employees move through a process of experience and training, with divers typically having several years of experience under their belts before they hit the water. “The real key is the supervision,” Juettner says. Supervisors need to have experience diving and working with other supervisors, and they need to know the right answer to the universal question: When is it time to get out of the water? If a diver is working on an underwater pipeline and has a lot of tools in the water, Juettner says, it’s all about timing. “One of the worst things is waiting too long—it’s a balancing act, really,” the dive operations manager says. “Cook Inlet is an incredibly dangerous place to be on the water. You’ve got to have it figured out.” Challenges include active ice floes in the winter and large weather events, lack of visibility, and some of the highest tides in the world. The body of water is also near several active volcanos, which can cause air pollution, something that’s not so common in the world of diving. Working in those conditions requires knowing when to take a step back, Juettner says, and how to operate efficiently under pressure. With barges and tugboats and cranes and other expensive equipment on the water, both diver safety and asset protection come into play. www.akbizmag.com

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May 2015 | Alaska Business Monthly

Juettner says his company uses current profilers to measure tides, calling the technology a “great tool” that helps plan and execute dives safely and effectively. And inside every plan for a Cook Inlet dive, he says, there are probably five additionally plans. ”You’ve got to be able to adapt to what’s going on,” he says. “The planning is critical.” Dive operations break down when crews try to accomplish more than time allows or there’s a breakdown in communication, so Global relies on a wireless communication system and highly trained staff to support operations in Cook Inlet. Like many companies that support Alaska’s sprawling oil and gas industry, though, Global Diving & Salvage offers a variety of services—not just diving. About half of the company’s work involves a diving component, Juettner says, but there’s plenty of work to be done above the water. The company’s three main lines of service encompass offshore work, marine construction, and casualty response.

The type of work associated with casualty response covers a particularly broad spectrum, Juettner says. Usually it becomes necessary when something goes wrong—something unexpected or not according to plan. The job can be as simple as a container ship or other vessel getting a line caught in a wheel, or it could be a beached vessel with a need to mitigate pollution or even a roadside spill. In fact, while Global is often branded as a diving company, Juettner says, the work it does involves much more than that. The company’s employees bring a variety of skill sets to the table. “Global prides itself on having personnel who are very well rounded,” Juettner says. “There are architects, because before you take a boat off the beach you’ll have to know how it’ll react,” he says. One employee was formerly an officer in the US Coast Guard and brings strong connections and organizational understanding to the work Global does. Juettner says the company also has people who used to work for towing companies, bringing a broad knowledge of

vessels to their current jobs. All told, the company’s Alaska office currently employs about twenty-two fulltime employees. During the busy summer months, Juettner says, the company can see its staff size double. That’s where Global’s nationwide reach comes into play: The dive operations manager says his office is able to pull from a highly qualified pool of Global employees in order to meet the demand for work in Alaska. A lot of the company’s work happens in the summer. Things typically start rolling in February, Juettner says, and Global usually sees the highest volume of work June through September. July and August are peak months, and “things get pretty quiet” in the December-January timeframe, he says. Like nearly everything else related to Alaska’s oil and gas industry, much depends on the weather. “Everything in Alaska is built around a season,” Juettner says. “You’re either rushing to get ready for the next season or wrapping up the current season.” R Kirsten Swann is a freelance journalist based in Anchorage.

Alaska Business Monthly | May 2015 www.akbizmag.com

special section

Oil & Gas

Port Mac Gas Projects Big plans for commodities dock By Mike Bradner

laskans have been watching near-term deadlines and schedules with large natural gas proj-

ects like the big Alaska LNG Project led by North Slope producers. If built, that project could be exporting 17 million to 20 million tons a year of Alaska liquefied natural gas, or LNG, to Asia. But there’s another LNG project in the wings, smaller and arguably more bite-sized and nimble than the giant project. This is a 1.5 million-ton-peryear project, also aimed at export mar-

kets, planned to be built adjacent to Port MacKenzie, on upper Cook Inlet, by Resources Energy, Inc., a Japanese company. There’s one more too, a smaller LNG project being discussed for Port Mac Kenzie. That’s a plant planned to produce LNG for internal Alaska markets like Fairbanks by WesPac Midstream, a California-based firm.

Alaska Business Monthly | May 2015 www.akbizmag.com

Port MacKenzie’s dock across from Anchorage and the Chugach mountains. © Kevin G. Smith / AlaskaStock.com

Resources Energy, Inc., or REI, hopes to build its gas liquefaction plant on a private land parcel adjacent to Port MacKenzie, the Matanuska-Susitna Borough’s bulk commodities port on Knik Arm. If WesPac’s plant is built it would be nearby, on a land parcel leased from the port. REI’s plant would be about the same size as the existing ConocoPhillips LNG www.akbizmag.com

export plant a few miles across the Inlet at Nikiski, near the city of Kenai on the Kenai Peninsula.

Big Plans While REI’s initial objective is to purchase Cook Inlet gas to make LNG, the company hopes that a North Slope gas pipeline will someday be built so REI can expand its plant with access to new May 2015 | Alaska Business Monthly

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gas resources. WesPac also hopes to buy Cook Inlet gas for its facility and has signed a preliminary agreement with BlueCrest Energy, a Texas-based independent with plans to develop an offshore Cook Inlet gas discovery at Cosmopolitan, near Anchor Point. WesPac is a company with experience in development and operation of regional fuel terminals, and the company has moved more recently into projects to supply LNG as a transportation fuel. The company has signed a contract, for example, with Totem Ocean Trailer Express, or TOTE, to supply LNG in Florida to two TOTE ships operating in the Caribbean. TOTE’s vessels would be the first large US ships to convert to LNG, and the company also plans to convert its two vessels that serve Alaska from the Port of Tacoma. Meanwhile, for REI, does having two LNG plants of about the same size on Cook Inlet, REI’s and ConocoPhillips’, make sense? Does it also make sense with the looming possibility of a very large LNG plant, many times the REI size, also planned for Nikiski, although the timing for it is a decade away? REI, a venture of several Japanese technology companies and regional municipal governments, believes it does make sense.

Own and Control What is most important is that the Japanese entities involved in REI want to have their own source of imported LNG and want to not have to depend on the big Japanese trading companies. They also want to own and control the source of the LNG, which means owning the plant and owning part or all of the natural gas that would flow to the plant for the manufacture of LNG. Through owning and controlling the supply source, Japanese companies hope to secure the lowest possible prices for their LNG. They also do not want to be beholden to larger US companies who own Alaska gas and have a goal to extract the highest prices. Although REI is not in competition with the large Alaska LNG Project, the Japanese company sees advantages in its “start small” strategy compared with the large project. The Japanese company believes that being first into the market, at least with a new Alaska

Alaska Business Monthly | May 2015 www.akbizmag.com

LNG project, is important. But being smaller, starting with 1.5 million tons of LNG per year, will allow it to get a toehold in the market and then expand as the market grows. The Alaska LNG Project, in contrast, is so big that it will have to secure sales contracts for very large volumes at long terms, which may be difficult to do with many other LNG projects chasing the same buyers in Asia, including Japan. REI got its start in 2011 after the earthquake and tsunami severely damaged Japanese coastal communities and nuclear power plants. Japan had to sharply escalate LNG imports, and prices shot up. One forward-thinking regional government, Hyogo Prefecture, formed a group to explore options for its own, independent source of LNG. Thus was formed REI, led by a team of experienced retired Japanese LNG experts. After an extensive study of sources of LNG in 2011, an REI team settled on Alaska as the best sources for long-term reliable supplies. The shorter sailing distance and long track record of reliably supplying Japan with LNG from the ConocoPhillips plant at Nikiski were big factors in the decision.

Borough’s Port MacKenzie. Federal regulations require LNG export plants to have their own dedicated docks, but REI would still use the borough’s port for unloading modules and other equipment. A challenge the company has, however, is a supply of gas under contract. Negotiations are underway with several Cook Inlet gas owners including some that have not yet gotten discoveries into production. Meanwhile, WesPac has at least a tentative agreement on a gas supply from

BlueCrest’s Cosmopolitan discovery, but the company does not yet have a market for its LNG. Fairbanks is a possibility along with coastal communities like Unalaska, which are interested in substituting lower-cost LNG for diesel. However, sales contracts are not yet signed. REI, for its part, has the market in Japan but no gas, at least yet. R

Mike Bradner is publisher of the Alaska Legislative Digest.

Time Sensitive An important element in REI’s plan, however, is to get the plant built and exports of LNG underway by 2020, four years before the huge Alaska LNG Project can complete its project-assuming the larger project proceeds. As for the existing ConocoPhillips plant, that facility has performed reliably and efficiently for forty-five years but is now approaching the end of its design life. If its operations were to be extended, a substantial investment in upgraded plant systems will be needed, and new regulatory requirements may be imposed. This is an important year for REI’s project. After several years of conceptual engineering and detailed surveys of Southcentral Alaska gas resources, the company hopes to launch its final engineering in mid-2015 and, later in the year, to begin the applications with the US Federal Energy Regulatory Commission and for a US Department of Energy LNG export permit. The company has an option on lease for its plant site adjacent to the Matanuska-Susitna www.akbizmag.com

May 2015 | Alaska Business Monthly

special section

Oil & Gas

The Moral Case for Fossil Fuels By Alex Epstein

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The opinions expressed herein are the author’s own and not those of Alaska Business Publishing Company, Inc.

“With more politicians in climate science than scientists, the refining fire of debate has devolved into the burning of heretics. Alex Epstein’s The Moral Case for Fossil Fuels may make your blood boil, but his cool reason and cold, hard facts will lead us beyond hysterics to a much better future.” —PETER THIEL, technology entrepreneur and investor

opular opinion about fossil fuels can be summarized in one word: addiction. The industry’s attackers have successfully portrayed its core product, fossil fuel energy, as a self-destructive addiction that is destroying our planet and the fossil fuel industry as a fundamentally immoral industry. Like any immorality or addiction, the argument goes, we may not pay for it at the beginning, but we will pay for it in the end. Thus, the only moral option is to use “clean, renewable energy” like solar, wind, and biofuels to live in harmony with the planet instead of exploiting and destroying it. And we need to do it as soon as is humanly possible. This is the moral case against fossil fuels. But, as I explain in a new book “The Moral Case for Fossil Fuels,” if we truly think critically about the morality of fossil fuel energy, both its benefits and its risks, fossil fuel energy is not a dangerous addiction but a healthy choice. But what does it mean to be moral? I believe an activity is moral if it is fundamentally beneficial to human life. By that standard, is the fossil fuel industry moral? Yes. By producing the most abundant, affordable, reliable energy in the world, the fossil fuel industry makes every other industry more productive—and it makes every individual more productive and thus more prosperous, giving each person a level of opportunity to pursue happiness that previous generations couldn’t even dream of. Energy, the fuel of technology, is opportunity— the opportunity to use technology to improve every aspect of life. Including our environment. Any animal’s environment can be broken down into two categories: threats and resources. (For human beings, “resources” includes a broad spectrum of

“If you want to see the power of fine logic, fine writing, and fine research, read Epstein’s book. In my long career, it is simply the best popular-market book about climate, environmental policy, and energy that I have read. Laymen and experts alike will be boggled by Epstein’s clarity.” —PATRICK J. MICHAELS, director, Center for the Study of Science, Cato Institute “Alex Epstein has written an eloquent and powerful argument for using fossil fuels on moral grounds alone. A remarkable book.” —MATT RIDLEY, author of The Rational Optimist “In this brave book, Alex Epstein provides a clear, full-throated response to the catastrophists who want us to replace nearly all of our existing energy systems with expensive, incurably intermittent sources like wind and solar. We need more people like Alex who are willing to make the case for hydrocarbons. As Alex shows, those fuels are allowing billions of people to live fuller, freer, healthier lives.” —ROBERT BRYCE, author of Smaller Faster Lighter Denser Cheaper

ISBN 978-1-59184-744-1

5 2 7 9 5

TH E MORAL CAS E F OR FOSS I L F UE LS

the facts

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ALEX E PSTE I N

nt, unrelia reliable are huge plenty of

cope with the often hostile climate of Mother Nature. Energy is what we need everything we know about toCould build sturdy homes, to purify water, fossil fuels be wrong? to produce huge amounts of fresh food, to generate heat and air-conditioning, to irrigate deserts, to dry malaria-infested swamps, to build hospitals, and to manufacture pharmaceuticals, among many other things. And those of us who enjoy exploring the rest of nature should never forget that oil is what enables us to explore to our heart’s content, which preindustrial people didn’t have the time, wealth, energy, or technology to do. Nowhere is the necessity of energy, and thus fossil fuel energy, more evident than in protecting us from the climate. The climate is inherently dangerous (and it is always changing, whether we influence the change or not). Energy and technology have made us far safer from it. In the last eighty years, as CO2 emissions have risen from an atmospheric concentration of 0.03 percent to 0.04 percent, climate-related deaths have declined 98 percent. Take drought-related deaths, which have declined by 99.98 percent. This has nothing to do with a friendly or unfriendly climate, it has to do with the oil and gas industry, which fuels high-energy agriculture as well as natural gas-produced fertilizer, and which fuels drought relief convoys. Fossil fuels make the planet dramatically safer. And dramatically richer in resources. Environmentalists treat “natural resources” as a fixed pile that nature gives us and which we dare not consume too quickly. In fact, nature gives us very little in the way of useful resources. From clean water to plentiful food to useful medicines, we need to create them using ingenuity. This is certainly true of energy. Until the Industrial Revolution, there were almost no “energy resources” to speak of. Coal, oil, and natural gas aren’t naturally resources—they are naturally useless. (Or even nuisances.) Those who first discovered how to convert them into energy weren’t depleting a

THE

MORAL C AS E FOR

FOSS I L F U E LS

For decades, environmentalists have told us that using fossil fuels is a self-destructive addiction that will destroy our planet. Yet at the same time, by every measure of human well-being, from life expectancy to clean water to climate safety, life has been getting better and better. How can this be?

The explanation, energy expert Alex Epstein argues in The Moral Case for Fossil Fuels, is that we usually hear only one side of the story. We’re taught to think only of the negatives of fossil fuels, their risks and side effects, but not their positives—their unique ability to provide cheap, reliable energy for a world of seven billion people. And the moral significance of cheap, reliable energy, Epstein argues, is woefully underrated. Energy is our ability to improve every single aspect of life, whether economic or environmental. If we look at the big picture of fossil fuels compared with the alternatives, the overall impact of using fossil fuels is to make the world a far better place. We are morally obligated to use more fossil fuels for the sake of our economy and our environment. Drawing on original insights and cutting-edge research, Epstein argues that most of what we hear about fossil fuels is a myth. For instance . . .

Myth: Fossil fuels are dirty. Truth: The environmental benefits of using fossil

ALEX EPSTEIN

781591 847441

fuels far outweigh the risks. Fossil fuels don’t take a naturally clean environment and make it dirty; they take a naturally dirty environment and make it clean. They don’t take a naturally safe climate and make it dangerous; they take a naturally dangerous climate and make it ever safer. (continued on back flap)

things, including natural beauty.) To assess the fossil fuel industry’s impact on our environment, we simply need to ask: What is its impact on threats? What is its impact on resources? The moral case against fossil fuels argues that the industry makes our environment more threatening and our resources more scarce. But if we look at the big-picture facts, the exact opposite is true. The fossil fuel industry makes our environment far safer and generates new resources out of once-useless raw materials. Let’s start with threats. Schoolchildren for the last several generations have been taught to think of our natural environment as a friendly, stable place—and our main environmental contribution is to mess it up and endanger ourselves in the process. Not so. Nature does not give us a healthy environment to live in—it gives us an environment full of organisms eager to kill us and natural forces that can easily overwhelm us. It is only thanks to cheap, plentiful, reliable energy that we live in an environment where the air we breathe and the water we drink and the food we eat will not make us sick and where we can

1114

Alaska Business Monthly | May 2015 www.akbizmag.com

resource, they were creating a resource. The world was a better place for it. It is obscene to call today’s new resource creators in the shale energy industry and the oil sands energy industry “exploiters” when they have turned stone and sludge into life-giving energy—a feat that may ultimately extend to trillions of barrels of once inaccessible oil (in all of human history we’ve used just over a trillion barrels). The fact that oil is a “finite” material is not a problem, any more than the “finite” supply of rare-earth metals is a black mark against windmills. Every material is finite. Life is all about taking the theoretically finite but practically limitless materials in nature and creatively turning them into useful resources. The fossil fuel industry does it, the “renewable”— actually, the “unreliable”—energy industry doesn’t. End of story. “Renewables” are no more the ideal form of energy than wood is the ideal material for skyscrapers. And by creating the best form of energy resource, the fossil fuel industry helps every other industry more efficiently create every other type of resource, from food to steel. The fossil fuel industry is fundamentally good. It minimizes environmental threats and maximizes environmental resources. This truth, along with the rest of the moral case for fossil fuels, is something the industry needs to understand and communicate—for all our sakes. R

Alex Epstein, founder of the Center for Industrial Progress, is the author of the book “The Moral Case for Fossil Fuels” published by Portfolio, an imprint of the Penguin Group. This article first appeared in the November 2014 issue of Pipeline & Gas Journal and is used with permission of the publisher, Oildom Publishing Company of Texas, Inc. www.akbizmag.com

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special section

Oil & Gas

Shell Gets Ready to Drill Moving forward for return to Chukchi Sea By Mike Bradner

hell has its hopes up, once again, to make good on the company’s $6 billion bet on Arctic offshore oil. The major regulatory approvals seem to be falling in place. At the end of March the US Bureau of Ocean Energy Management (BOEM) issued a Record of Decision closing a loophole on a legal dispute on the 2008 Chukchi Sea lease sale, the one where Shell paid over $2 billion for federal Outer Continental Shelf leases. That action freed the agency to begin processing Shell’s applications for drilling permits for the 2015 Arctic summer open-water season. Encouraged, the company began mobilizing vessels for its summer drill fleet including bringing the Polar Pioneer, a semi-submersible drill rig, from Southeast Asia to the Seattle area. Shell’s plan is to use two drill ships this summer in the Chukchi Sea, the Polar Pioneer and the drillship Noble Discoverer, which was used in 2012 drilling in the Arctic and has since been refitted to resolve problems that arose that year.

Plan Revisions Meanwhile, Shell has submitted a revised exploration plan that would replace one submitted earlier. BOEM will not release details of the plan until it is reviewed, however. Meanwhile, the federal courts had given the agency authority to review the previous plan informally. Shell is hoping for “conditional approval” of its plan by the end of April, but BOEM would still need to do an environmental analysis of the plan, which may spark more protests from environmental groups. Meanwhile, the US Bureau of Safety and Environmental Enforcement, a sister agency to BOEM within the Depart68

ment of the Interior, is still working on finalizing new special drilling rules for the Arctic, but Shell need not wait until these are issued, Bureau of Safety and Environmental Enforcement officials have said. Most provisions in the new rules have already been agreed to by Shell and would be incorporated into permits. Shell has been stymied for years in its efforts to explore its leases in the Alaska Chukchi Sea as well the Beaufort Sea. There are now hopes the stars have finally aligned. The company was able to partly drill two exploration wells in 2012, one in the Beaufort Sea and one in the Chukchi Sea. The wells were “top holes,” or the upper parts of the wells that stopped short of penetrating potential oil-bearing reservoir rock. Drilling stopped at a certain level above where the oil was thought to be because Shell was unable to complete and gain federal approvals for a special oil spill containment barge it had built. Without the barge positioned nearby, the federal agency involved, the US Bureau of Safety and Environmental Enforcement, could not allow Shell to drill deeper. If a Gulf of Mexico-type oil blowout were to occur Shell would be extremely limited in its ability to respond without the barge.

Chukchi Potential Shell plans to return to the Chukchi Sea and complete drilling on the 2012 well and to drill additional wells, but for now the Beaufort Sea is on the back burner, the company has said. Of the two regions, the Chukchi Sea has the greater potential for large discoveries, government geologists have said, and it has become the company’s top priority. The immediate prospect for 2015 is

at the location of the 2012 well and it is Shell’s “Burger” prospect, a discovery the company ironically drilled in 1991 in an early round of Chukchi Sea drilling. Shell found a large gas deposit and indications of oil, but at the time the discovery was uneconomic because of its remote location sixty miles offshore and the fact that there were no immediate plans for a natural gas pipeline from the North Slope. That has changed now with the active work being done on the large Alaska LNG Project, a gas pipeline from the North Slope to southern Alaska and a liquefied natural gas plant. Another change is that Shell has had a chance, in the years since 1991, to reassess its global exploration strategy and to place a new emphasis on the Arctic offshore. In addition, the company now has new tools, such as advanced 3D seismic imaging, that weren’t available in 1991. That has enabled Shell to get a much clearer picture of the potential of the Burger prospect and the Chukchi Sea. In any event, Shell relinquished its Chukchi Sea leases back to the federal government in the 1990s and then had to come back and bid again for them in the government’s 2008 Chukchi Sea lease sale. By then Shell was anxious, with the information it had, to regain control of Burger. The company invested more than $2 billion in bonus bids for leases it had given up in the 1990s. Leases had meanwhile been acquired earlier in the Beaufort Sea in federal lease sales in 2005 and 2007.

Drilling Permits Completion of BOEM’s Record of Decision process will allow the agency to begin processing applications by Shell for permits to drill on its leases in the Chukchi Sea.

Alaska Business Monthly | May 2015 www.akbizmag.com

In a statement, Shell spokeswoman Megan Baldino said, “Basically, the Record of Decision reaffirms Lease Sale 193 (held in 2008) and clears the way for the BOEM to conclude its review and make a decision on our Revised Chukchi Sea Exploration Plan. As you know, that plan remains contingent on achieving the necessary permits, legal certainty, and our own determination that we are prepared to explore safely and responsibly.” If Shell makes a major discovery in the Chukchi Sea it will clear the way for others which hold leases there, like ConocoPhillips and Statoil. Those firms have put their exploration plans on hold, waiting to see what happens with Shell’s initiative.

Beaufort Interests Shell still has interest in the Beaufort Sea, although the Chukchi is being given priority for now. The company’s prime prospect in the Beaufort Sea is Sivulliq, which, like Burger, is a known discovery or at least is near a known discovery, as Shell keeps such details confidential. The prospect was first drilled in the 1980s by Unocal Corporation, which discovered oil there. Unocal named the discovery “Hammerhead,” but Shell has renamed it. While Shell is going into the Chukchi Sea with knowledge from its 1990s drilling, the company similarly has extensive experience in the Beaufort Sea as well. The company drilled several Beaufort Sea offshore exploration wells in the 1980s and made several discoveries including one that is now producing. The Seal Island discovery made by Shell was ultimately developed by BP after that company purchased the prospect. Seal Island’s deposit was in the federal Outer Continental Shelf, but it transcended the boundary with nearby State of Alaska submerged lands. The adjacent state leases were held by Amerada Hess Corporation. BP bought both and combined them into what became the Northstar field, which started producing in 2001. Northstar is still producing and was purchased by Hilcorp Energy late last year. R Mike Bradner is publisher of Alaska Legislative Digest. www.akbizmag.com

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EXPLORATION & PRODUCTION

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

First Name

Estab. Empls.

COMPANY

TOP EXECUTIVE

Apache Corporation 510 L St., Suite 310 Anchorage, AK 99501 Phone: 907-272-2722 Fax: 907-277-0005

John Hendrix, GM

FOUNDED/ESTAB. AK

Baker Hughes 795 E. 94th Ave. Anchorage, AK 99515 Phone: 907-267-3409

Christian Klotz, Dir. AK

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

Janet Weiss, Reg. Pres.

Chevron 1029 W. Third Ave., Suite 150 Anchorage, AK 99501 Phone: 907-276-7600 Fax: 907-263-7607

Kevin Donley, Sr. Counsel

ConocoPhillips Alaska, Inc. PO Box 100360 Anchorage, AK 99510 Phone: 907-276-1215 Fax: 907-265-1410

Joe Marushack, Pres. ConocoPhillips AK

Cook Inlet Energy LLC 601 W. Fifth Ave., Suite 310 Anchorage, AK 99501 Phone: 907-334-6745 Fax: 907-334-6735

David Hall, CEO

Doyon Drilling, Inc. 11500 C St., Suite 200 Anchorage, AK 99515 Phone: 907-563-5530 Fax: 907-561-8986

Ron Wilson, Pres./GM

Eni Petroleum 3800 Centerpoint Dr., Suite 300 Anchorage, AK 99503 Phone: 907-865-3300 Fax: 907-865-3384

Scot Childress, Ops Mgr. AK

ExxonMobil PO Box 196601 Anchorage, AK 99519 Phone: 907-561-5331 Fax: 907-564-3719

Karen Hagedorn, AK Production Mgr.

Furie Operating Alaska LLC 1029 W. Third Ave., Suite 500 Anchorage, AK 99501 Phone: 907-277-3726 Fax: 907-277-3796

Bruce Webb, Sr. VP

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

Ed Duncan, Pres./CEO

Hilcorp Alaska LLC PO Box 244027 Anchorage, AK 99524 Phone: 907-777-8300 Fax: 907-777-8310

John Barnes, Sr. VP Exploration & Production

NordAq Energy, Inc. 3000 A St., Suite 200 Anchorage, AK 99503 Phone: 907-646-9315 Fax: 907-646-9317

Robert Warthen, Pres.

Petro Star, Inc. 3900 C St. Anchorage, AK 99503 Phone: 907-339-6600 Fax: 907-339-6653

Doug Chapados, Pres./CEO

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

Laurie Schmidt, VP Shell AK

SolstenXP, Inc. 406 W. Fireweed Ln., Suite 101 Anchorage, AK 99503-2649 Phone: 907-279-6900 Fax: 907-264-6190

Jesse Mohrbacher, Pres./CEO

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

Jim Winegarner, AK Ops Mgr.

Tesoro Alaska Co. 1601 Tidewater Rd. Anchorage, AK 99501 Phone: 907-261-7221 Fax: 866-421-8306

Cameron Hunt, VP

lisa.parker@apachecorp.com apachecorp.com

bakerhughes.com

@BP_Alaska alaska.bp.com

chevron.com

Business Activity

WORLDWIDE\AK EMPLOYEES

SERVICES

1954 2010

4,500 Oil and gas exploration and development. 8

1969 1980

70,000 Provides the oil and gas industry with products and services for drilling, formation 300 evaluation, completion, production and reservoir consulting.

1959 1959

83,900 In Alaska BP operates nine North Slope oilfields in the Greater Prudhoe Bay area and 2,000 owns significant interests in six producing fields operated by others. BP also owns significant non-operating interests in the Point Thomson development project and the Liberty prospect.

1879 1957

64,500 Chevron Corporation' is a Californian-based multinational energy company. It is involved 6 in every segment of the oil, gas and geothermal energy industry.

1952 1952

19,000 Exploration and production. conocophillipsalaska.com; @cop_alaska 1,300

COPAlaskaInfo@ConocoPhillips.com

millerenergyresources.com

info@doyondrilling.com doyondrilling.com

eni.com

exxonmobil.com

furiepetroleum.com

greatbearpetro.com

2009 2009

55 55

Oil and gas exploration and production.

1982 1982

415 415

Doyon Drilling operates on the North Slope of Alaska with rigs designed to drill in northern Alaska conditions. The company consistently strives to improve its operations and has some of the most technologically advanced land drilling rigs in the world.

1926 2006

82,300 Eni is an integrated energy company. Active in 77 countries, with a staff of 78,400 56 employees, it operates in oil and gas exploration, production, transportation, transformation and marketing, in petrochemicals, oilfield services construction and engineering.

1870 1954

~80,000 ExxonMobil is the largest holder of discovered gas resources on the North Slope and the ~140 largest interest owner of the Prudhoe Bay unit. The company is currently constructing the Point Thomson Project on the North Slope, a natural gas condensate development expected to begin production in 2016.

2006 2011

2010 2011

2012 2012

hilcorp.com

moverly@nordaqenergy.com nordaqenergy.com

petrostar.com

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

info@solstenxp.com soltenxp.com

statoil.com

tsocorp.com

10-12 Gas & oil exploration company. 10-12

6 6

Oil and gas exploration and production company.

1,500 Hilcorp is one of the largest privately-held exploration and production companies in the 500 US. We strive for US energy independence. Hilcorp was named to the 2013 & 2014 FORTUNE Top 100 Companies to work for list. Protecting the environment and ensuring a safe, healthy workplace are our priorities.

2009 2009

12 12

Natural gas exploration, Cook Inlet Basin & The North Slope. The Shadura find on north end of Kenai Peninsula expected to last 30 years. Offices in Anchorage and Kenai. nordaqenergy.com

1984 1984

313 311

Refining and fuel distribution.

1952 2005

1993 1993

90,000 Arctic Offshore oil and gas exploration. 200

140 140

SolstenXP is an EPCM project life cycle petroleum and natural resource services company headquartered in Anchorage, Alaska. We provide project management and contracting services for exploration and production operations, including permitting and regulatory coordination, drilling and more.

1972 2009

23,000 Norwegian multinational oil and gas company headquartered in Stavanger, Norway. 3 Statoil is a fully integrated petroleum company with operations in thirty-six countries.

1969 1969

7,013 Located on the Cook Inlet, 60 miles southwest of Anchorage, the 72,000 (bpd) Kenai 241 Refinery has been producing gasoline and gasoline blendstocks, jet fuel, diesel fuel, heating oil and heavy fuel oils, propane and asphalt since 1969. May 2015 | www.akbizmag.com

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

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

Stephanie Mathers, Reg. Mgr.

Acuren 600 E. 57th Pl., Suite B Anchorage, AK 99518 Phone: 907-569-5000 Fax: 907-569-5005

Frank Noble, Dir. Ops

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

acuren.com

89,800 3M manufactures a wide range of products covering many markets in Alaska. In the area 11 of natural resources, we provide products and services which support the oil/gas and mining industries in worker safety, electrical and communications, welding protection, fire and corrosion protection.

1976 2002

20,000+ Materials engineering, nondestructive examination and integrity management for the oil 15 and gas, power, mining, transportation and construction industries.

1999 1999

AECOM 700 G St., Suite 500 Anchorage, AK 99501 Phone: 907-562-3366 Fax: 907-562-1297

Joe Hegna, AK Ops Mgr.

1904 1948

aeSolutions 3800 Centerpoint Dr., Suite 620 Anchorage, AK 99503 Phone: 907-865-5992 Fax: 907-865-5993

Chris Hickling, AK Business Unit Mgr

AFF Distribution Services 5491 Electron Dr. #8 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7012

Jared Lastufka, Ops Mgr.

Afognak Leasing LLC 3909 Arctic Blvd., Suite 400 Anchorage, AK 99503 Phone: 907-222-9500 Fax: 907-222-9502

Matt Thorpe, Sr. VP Ops

Air Liquide America L.P. 6415 Arctic Blvd. Anchorage, AK 99518 Phone: 907-562-2080 Fax: 907-564-9752

Robert Cook, GM

Airgas USA LLC 6350 Arctic Blvd. Anchorage, AK 99518 Phone: 907-563-6644 Fax: 907-562-2090

William Sanborn, Reg. Pres., NorPac

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

Ronald Smith, CEO

Alaska Airlines 4750 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-7200 Fax: 907-266-7229

Marilyn Romano, Reg. VP AK

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

Stefan Mack, PE/Pres.

Alaska Clean Seas 4720 Business Park Blvd., Suite G42 Anchorage, AK 99503 Phone: 907-743-8989 Fax: 907-743-8988

Barkley Lloyd, GM

Alaska Directional LLC PO Box 871130 Wasilla, AK 99687 Phone: 907-750-9025 Fax: 907-357-9027

Billy Long, Pres./Member

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

Meini Huser, Pres.

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

Dave Cruz, Pres.

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

Kevin Anderson, Pres.

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

Janeece Higgins, CEO

chris.hickling@aesolns.com aesolns.com

youtube.com/americanfastfreight americanfast.com

alutiiq.com

airliquide.com

airgas.com

rsmith@aksupply.net aksupply.net

alaskaair.com

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

gm@alaskacleanseas.org alaskacleanseas.org

akdirectional@alaskadirectional.com alaskadirectional.com

sales@alaskadreamsinc.com alaskadreamsinc.com

info@aicllc.com aicllc.com

amlcsc@lynden.com shipaml.com

info@alaskarubber.com alaskarubber.com

SERVICES

1972 1972

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

aecom.com

Services

WORLDWIDE\AK EMPLOYEES

240 230

Supply chain management specializing in asset intensive resource industries.

100,000 AECOM Alaska is a team of 200 engineers, scientists, planners & support staff providing 200 arctic-smart engineering & environmental services for the complete project life-cycle from permitting for air, water, soils & solid waste, to planning, design & construction through production & site closure.

1998 2008

175 53

aeSolutions is a complete system integrator specializing in safety instrumented systems, automation, process safety consulting, industrial cybersecurity, alarm management, and operations & maintenance solutions; supporting all phases of the Process Safety Lifecycle.

1988 1988

10 6

Third-party warehousing & distribution company; short- & long-term storage; order processing, deliveries, & inventory reports; cold storage, chill to freeze; pick & pack individual orders; through bill of lading & single invoice; bypass mail service. A division of American Fast Freight, Inc.

2004 2004

20 20

Lease and sell temporary or permanent remote camp facilities, portable offices, and equipment. Build to suit new camp construction. Provide camp relocation, camp operations and camp management services. Provide hotel-style temporary and permanent housing in Deadhorse, Alaska.

1905 1955

19,295 Providing packaged and bulk gas, scientific and calibration gases, welding tools, filler 78 metals, hardgoods and machines to oilfield and pipeline constructors. Full line of rental welders and plasma equipment and repair (warranty and other) for all major welding equipment and tool manufacturers.

1982 1996

15,000 Airgas is the largest U.S. distributor of industrial, medical and specialty gases and 20 welding equipment and supplies. Airgas is the third largest distributor of safety products in the U.S.

1991 1991

1932 1932

13 13

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, rig mats, etc.

13,800 Alaska Airlines and its sister carrier, Horizon Air, together, provide passenger and cargo 1,750 service to more than 100 destinations in Alaska, Canada, Mexico, Hawaii, and the Lower 48.

2008 2008

3 3

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

1979 1979

98 98

We protect the environment by providing response services to the Alaska North Slope crude oil explorers and producers and the first 167 miles of the Trans Alaska Pipeline System in accordance with oil spill response agreements and plans.

2012 2012

25 20

Horizontal directional drilling, trenching, utility installation.

1994 1994

25 25

Design, sales and construction for fabric covered and pre-engineered metal buildings.

1995 1995

175 160

Alaska Interstate Construction, LLC is an Alaska company providing heavy civil construction services to private industry, as well as local, state and federal government agencies in the oil and gas, mining and public works sectors throughout Alaska-from the Aleutian chain to the North Slope.

1980 1980

233 28

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

1981 1981

100 64

AK's largest supplier of hydraulic & industrial hose assemblies & associated products; specialize in fabrication/testing of wire rope, chain & synthetic slings for overhead lifting & rigging; supply & service fueling, lubrication & pressure washing equip, hydraulic pumps, motors, cylinders & valves. May 2015 | www.akbizmag.com

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

Alaska Sales and Service 1300 E. Fifth Ave. Anchorage, AK 99501 Phone: 907-265-7535 Fax: 907-265-7507

Diana Pfeiffer, Pres.

Alaska Textiles 620 W. Fireweek Ln. Anchorage, AK 99503 Phone: 907-265-4880 Fax: 907-265-4850

Clif Burnette, Pres.

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

Scott Hicks, Pres.

Alcan Electrical & Engineering, Inc. 6670 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-563-3787 Fax: 907-562-6286

Scott Bringmann, Pres.

All American Oilfield LLC 14896 Kenai Spur Hwy., Suite 203 Kenai, AK 99611 Phone: 907-283-1048 Fax: 907-283-1051

Pete Dickinson, Pres.

Allied GIS, Inc. 8600 Spendlove Dr. Anchorage, AK 99516 Phone: 907-333-2750 Fax: 907-333-2751

Gail Morrison, Pres./Sr. GIS Analyst

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. 3501 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-452-7129 Fax: 907-451-7103

Ron Moore, AK Sales Mgr.

American Fast Freight, Inc. 7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5100

Kevin Kelly, Pres./CEO

richardd@aksales.com aksales.com

info@alaskatextiles.com alaskatextiles.com | korbana.com

information@lynden.com/ lynden.com/awe

sbringmann@alcanelectric.com alcanelectric.com

info@allamericanoilfield.com allamericanoilfield.com

gmorrison@alliedgis.com alliedgis.com

facebook.com/alyeskapipeline alyeska-pipe.com

youtube.com/americanfastfreight americanfast.com

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1944 1944

214 214

Full Line General Motors Automobile and Truck lines (Chevrolet, Buick, GMC, & Cadillac) with GM Parts and Service.

1978 1978

28 28

We are the number one supplier of FRC Apparel, to include our very own Korbana Protective Apparel, in Alaska and North Dakota. With a highly trained sales staff we make customer service and quality control our priorities.

1978 1978

164 154

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.

1971 1971

175 175

Electrical & Telecommunications, Security, CCTV, Outside Line Construction, Oil Production Modules, Hazardous Electrical Installation, and 508A Control Panel Fabrication.

2010 2010

75 75

Oilfield consulting, engineering, drilling crews, logistics, own/operate work over Rig 11.

2002 2002

3 2

GIS/mapping for oil & gas industry, spill response training and plume modeling - CIOSM and GNOME - environmental, land ownership, permitting, utility, programming, web services, ArcGIS Online, mobile apps, software sales, training, ESRI Business Partner & Adapx software resellers.

1970 1970

2,000 Alyeska Pipeline Service Company has operated the Trans Alaska Pipeline System 2,000 since 1977, and delivered its 17 billionth barrel of oil in 2014. Focused on safe and flawless operations and sustainability, Alyeskaﾃ不 employees are working to manage the challenges of declining throughput.

1984 1984

350 160

Ocean freight forwarding, freight consolidation of all kinds, full loads, short- and longterm warehousing, temperature protected, bypass mail and air freight, specialized equipment, heavy haul, project logistics, intra-state trucking, ALCAN express, barge, distribution, military shipments, HHG.

1984 1984

350 160

Ocean freight forwarding, freight consolidation of all kinds, full loads, short- and longterm warehousing, temperature protected, bypass mail and air freight, specialized equipment, heavy haul, project logistics, intra-state trucking, Alcan express, barge, distribution, military shipments, etc.

May 2015 | www.akbizmag.com

Company

Estab. Empls.

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

Ron Moore, AK Sales Mgr.

American Fast Freight, Inc. 47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 Fax: 907-262-1925

Ron Moore, AK Sales Mgr.

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

Tom Ulrich, VP/AK Reg. Mgr.

American Relocation Services 3411 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-456-3097 Fax: 907-456-3098

Damian Naquin, GM

American Relocation Services 2430 Beaver Lake Dr. Kodiak, AK 99615 Phone: 907-486-1015

Damian Naquin, GM

American Relocation Services 47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646

Damian Naquin, GM

American Relocation Services 5491 Electron Dr., Unit 1 Anchorage, AK 99518 Phone: 907-248-2929 Fax: 907-561-4244

Damian Naquin, GM

Analytica Group 4307 Arctic Blvd. Anchorage, AK 99503 Phone: 907-375-8977 Fax: 907-258-6634

Elizabeth Rensch, Bus. Dev. Mgr.

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

Cari-Ann Ketterling, Exec. Dir.

May 2015 | www.akbizmag.com

FOUNDED/ESTAB. AK

alaska@americanfast.com americanfast.com

youtube.com/americanfastfreight americanfast.com

alaska@amarinecorp.com amarinecorp.com

youtube.com/americanfastfreight americanfast.com

er@analyticagroup.com analyticagroup.com

apiccadmin@gmail.com apicc.org

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1984 1984

350 160

Ocean freight forwarding, freight consolidation, full loads, temperature protected, bypass mail and air freight, specialized equipment, heavy haul, project logistics, intra-state trucking, Alcan express, barge, distribution, military shipments, household goods.

1984 1984

350 160

Ocean freight forwarding, freight consolidation, full loads, short- and long-term warehousing, temperature protected, bypass mail and air freight, specialized equipment, heavy haul, project logistics, intra-state trucking, Alcan express, barge, distribution, military shipments, household goods.

1973 1973

300 50

American Marine International is a full service marine contractor providing international standard commercial diving, marine construction services, vessel support and operations throughout the oil and gas industry.

1988 1988

55 50

Commercial/residential relocations, moving and storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, service in and outside Alaska, certified moving consultants, budget service available.

1988 1988

60 55

1988 1988

55 50

1988 1988

155 150

Commercial/residential relocation, moving and storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, service in and outside Alaska, certified moving consultants, budget service available.

1991 1991

25 15

Analytica is the largest state certified laboratory in Alaska, specializing in drinking water, wastewater, and general water quality testing. Locations in Anchorage, Fairbanks, and Wasilla, Alaska. Analytica is a wholly owned subsidiary of The Aleut Corporation. www.aleutcorp.com.

1999 1999

5 5

Workforce development and career pathways for Alaska's oil, gas and mining industries; North Slope Training Cooperative (HSSE), Process Technology Degree program support, industry priority occupations report, and Teacher Industry Externships (TIE).

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

ARCADIS 880 H St., Suite 101 Anchorage, AK 99501 Phone: 907-276-8095 Fax: 907-276-8609

Roe Sturgulewski, AK Ops Leader

FOUNDED/ESTAB. AK

Arctic Controls, Inc. 1120 E. Fifth Ave. Anchorage, AK 99501 Phone: 907-277-7555 Fax: 907-277-9295

Scott Stewart, Pres.

Arctic Foundations, Inc. 5621 Arctic Blvd. Anchorage, AK 99518 Phone: 907-562-2741 Fax: 907-562-0153

Edward Yarmak, Pres.

Arctic Marine Solutions PO Box 3302 Seward, AK 99664 Phone: 907-360-2982

Jim Hubbard, Pres.

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

Kirsten Ballard, CEO

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

Jeff Kinneeveauk, Pres./CEO

Assured Safety Consulting LLC PO Box 804 Palmer, AK 99645 Phone: 907-715-0390

Colleen Darrell, Owner

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

George Lidgett, Pres.

Bald Mountain Air PO Box 3134 Homer, AK 99603 Phone: 907-235-7969 Fax: 907-235-6602

Gary Porter, VP

cynthia.oistad@arcadis-us.com arcadis-us.com

customerservice@arcticcouriers.com arcticcontrols.com

info@arcticfoundations.com arcticfoundations.com

mattk@arcticmarinesolutions.com arcticmarinesolutions.com

info@arctosak.com arctosak.com

info@asrcenergy.com asrcenergy.com

colleen@safetyauditalaska.com safetyauditalaska.com

atco@atcosl.com atcosl.com

coordinator@baldmountainair.com baldmountainair.com

1959 1994

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

28,000 ARCADIS is the leading global natural and built asset design & consultancy firm working 23 in partnership with our clients to deliver exceptional and sustainable outcomes through the application of design, consultancy, engineering, project and management services.

1985 1985

4 4

Arctic Controls Inc. is Alaska's leading expert in valves, flow meters, actuators, instrumentation, and process controls for commercial oil, gas, and water management. Providing professional expertise for all commercial applications and can assist you with estimates and recommendations.

1972 1972

15 15

Two-phase thermosyphons for long-term ground freezing: used for permafrost stabilization, frozen dams, containment, etc.

2010 2010

10 10

We provide cargo and personnel transport on the water and over the tundra year round.

2007 2007

7 7

ODPCP "C" Plans, full range spill prevention & response planning services, response management & support, project permitting, compliance assistance with state & federal oil pollution regulations. Project engineering, API certified tank, piping & AWS welding inspections, HSE & waste management plans.

1985 1985

2013 2013

1947 2009

1993 1993

3,833 ASRC Energy Services is Alaskaﾃ不 largest provider of comprehensive oil and gas 3,368 services with more than 30 years of project experience. We offer a full range of services from exploration, permitting and field development to production optimization and decommissioning as well as offshore oil response. 1 1

Certified HSE Professional providing contracted auditing and ethical consulting services within oil and gas, marine, and construction industries.

2,500 ATCO Structures & Logistics offers complete infrastructure solutions to customers 2 worldwide, including remote work force housing, portable offices and trailers, innovative modular facilities, construction, site support services, operations support, catering and noise reduction technologies. 16 16

Single and multi-engine; 19 passenger, cargo, and fuel delivery; VFR and IFR capable; turbine fleet for reliability; off-airport and arctic operations; flight safety trained crews; services on wheels, floats, and skis; aerial scientific platforms; 100NM+ off shore survey capability.

May 2015 | www.akbizmag.com

Estab. Empls.

Company

Holly Hylen, Pres./CEO

FOUNDED/ESTAB. AK

Bering Marine Corporation 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-248-7646 Fax: 907-245-1744

Rick Gray, Pres.

Bristol Engineering Services Corporation 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 800-563-0013 Fax: 907-563-6713

Travis Woods, Pres./CEO

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., Suite 201 Anchorage, AK 99503 Phone: 907-569-9122 Fax: 603-388-0793

Melanie Roller, Owner/Principal

Canadian Mat Systems (Alaska), Inc. 612 E. Third Ave. Anchorage , AK 99501 Phone: 907-272-5766

Shawn Beamish, Pres.

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

Jim Carson, AK District Mgr.

Cardno 3150 C St., Suite 240 Anchorage, AK 99503 Phone: 907-563-0438 Fax: 907-563-0439

Meg Thornton, Sr. Cons./Offc. Mgr.

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

Anna J. Pearson, Pres.

mhylen@beaconohss.com beaconohss.com

information@lynden.com bmc.lynden.com

manager@brooksrangesupply.com brooksrangesupply.com

mroller@c2north.com c2north.com

whepworth@matsystems.ca matsystems.ca

canrig.com

linkedin.com/company/cardno cardno.com

tpquick@gmail.com dpnorth.com

SERVICES

300 300

On-site medical staffing, safety staffing, full service third party administration drug and alcohol testing, occupational medicine, and work related injury and illness management.

1985 1985

26 26

Bering Marine Corporation provides highly specialized, contracted marine services to reach water-locked villages and other remote Alaska locations. Bering Marine gets building materials, equipment and gravel to some of Alaska's most isolated spots.

1994 1994

bristol-companies.com

WORLDWIDE\AK EMPLOYEES

1999 1999

300+ Civil engineering, permitting and planning; total project management encompassing 70 planning, design and construction. facebook.com/ BristolAllianceOfCompaniesfacebook.com/BristolAllianceOfCompanies

1982 1982

42 42

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 2001

3 2

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

2002 2002

50+ 1

Internationally advanced rig mat and environmentally safe Permazyme soil stabilization solutions. Rig matting; wood/steel, interlocking, composite, plastic. Composite bridges and marine products. Design, Build, Deliver. We welcome challenges.

1989 1989

1,100 Canrig provides capital equipment sales, services and rentals and enterprise solutions to 30 the upstream oil and gas industry.

1984 1984

8,200 Full-service, consulting firm providing specialized technical services in environmental 13 impact assessments (NEPA); environmental planning, permitting and compliance, natural and cultural resources, hazardous materials and hazardous waste, due diligence, and subsurface utility engineering.

1987 1987

20 20

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

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

Beacon Occupational Health and Safety 800 Cordova St. Anchorage, AK 99501 Phone: 907-222-7612 Fax: 907-222-6976

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

Services

The big news around here – ASRC Energy Services Marine Support is now providing marine services in Cook Inlet. Our newly refurbished Rig Tenders Marine Terminal is fully equipped to deliver a wide range of specialized services to the Kenai Peninsula’s oil and gas industry. In Alaska, only one company puts it all together – AES.

What’s Up?

Dock.

www.asrcenergy.com Engineering l Fabrication & Construction l Pipeline Construction l Marine Services Operations & Maintenance l Response Operations l Quality, Health, Safety, Environmental & Training Regulatory & Technical Services l Exploration, Drilling Support & Geosciences l Bakken Support

May 2015 | www.akbizmag.com white globe and text

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

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

Terry Howard, Pres.

FOUNDED/ESTAB. AK

CCI Industrial Services LLC 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503 Phone: 907-258-5755 Fax: 907-770-9452

A. Ben Schoffmann, Pres./CEO

CH2M HILL 949 E. 36th Ave., Suite 500 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-762-1600

Terry Bailey, Sr. VP/AK Reg. Mgr.

Chiulista Services, Inc. 3800 Centerpoint Dr., Suite 520 Anchorage, AK 99503 Phone: 907-275-2917 Fax: 907-275-2924

Josh Herren, Pres.

Chugach Alaska Corporation 3800 Centerpoint Dr., Suite 1200 Anchorage, AK 99503-4396 Phone: 907-563-8866 Fax: 907-563-8402

Gabriel Kompkoff, CEO

Coffman Engineers 800 F St. Anchorage, AK 99501 Phone: 907-276-6664 Fax: 907-276-5042

Dave Gardner, Mng. Principal

Colville, Inc. Pouch 340012 Prudhoe Bay, AK 99734 Phone: 907-659-3198 Fax: 907-659-3190

Eric Helzer, Pres./CEO

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

Ken Gerondale, Pres./CEO

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

Lonnie Parker, Pres./CEO

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

Bruce Harland, VP

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

Dave Cruz, Pres.

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

Jeff Yates, GM

Deadhorse Aviation Center PO Box 34006 Prudhoe Bay, AK 99734 Phone: 907-685-1700 Fax: 907-685-1798

Tim Cudney, Dir.

Delta Constructors LLC 3000 C St., Suite 202 Anchorage, AK 99503 Phone: 907-771-5800 Fax: 907-771-5911

Ed Gohr, CEO

Delta Leasing LLC 8101 Dimond Hook Dr. Anchorage, AK 99507 Phone: 907-771-1300 Fax: 907-771-1380

Rudi von Imhof, Pres.

Delta Western-Inlet Petroleum 420 L St., Suite 101 Anchorage, AK 99501 Phone: 800-478-2688 Fax: 206-213-0103

Kirk Payne, Pres.

DHL Global Forwarding 6375 Kulis Dr. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

Mindy Huston, AK Ops

carlile.biz

info@cciindustrial.com cciindustrial.com

bclemenz@ch2m.com ch2m.com/alaska

ldelgado@yulista.com chiulista.com

communications@chugach.com chugach.com

anchorageinfo@coffman.com coffman.com

info@colvilleinc.com colvilleinc.com

o.prestwick@cmiak.com cmiak.com

anc.sales@craigtaylorequipment.com craigtaylorequipment.com

crowley.com

info@cruzconstruct.com cruzconstruct.com

facebook.com/CNWAnchorage cumminsnorthwest.com

sales@datem.com datem.com

deadhorseaviationcenter.com

info@deltaconstructors.net deltaconstructors.net

info@deltaleasing.com deltaleasing.com

deltawestern.com

dfganc@dhl.com dhl-dgf.com

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1980 1980

650 500

Transportation and logistics company offering multi-model trucking as well as project logistic services across Alaska and North America.

1989 1989

300 300

Corrosion-under-insulation refurbishment; asbestos and lead surveys and abatement; specialty coatings; sandblasting; tank and vessel cleaning; fire proofing; demolition and hazardous waste removal; operations, maintenance and construction; oil spill response; heat treat services.

1946 1962

1996 1996

1972 1972

25,380 Premier Alaskan oil & gas contractor; offering consulting, engineering, procurement, 2,403 logistics, fabrication, construction, construction management, operations and maintenance service all under one roof; supporting oil & gas, mining, environmental, water, power, transportation and government. 124 2

Remote camps and catering services to the oil, gas, construction, and mining industry. Range Maintenance, Supply Contracts, Food Services.

5,000 Chugach provides wide-ranging services for federal, municipal and commercial clients 570 including facilities management and maintenance, construction and engineering, technical and information technology, education and oil and gas services.

1979 1979

310 100

Civil,Commissioning,Corrosion Control,Electrical,Forensic,Fire Protection Engineering,Industrial Design,Instrumentation & Controls,Land Surveying,Lighting,Mechanical,Pipeline Integrity Management,Pipeline & Process Facility Design,Project Management,Structural,Seismic,Sustainable Design,Energy Audit

1981 1981

185 185

Colville's group of oilfield companies provide a full compliment of Arctic Logistics capabilities. Our services include fuel, aviation, waste management, transport, industrial supply and camp services.

1985 1985

112 112

Construction and mining equipment sales, rentals, service, and parts.

1954 1954

60 60

Factory authorized dealer for: Komatsu construction and mining, Doosan 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 1953

1981 1990

1969 1969

5,300 Crowley Solutions was formed in 2010 to provide increased support services to the oil 450 and gas industry including turnkey project management solutions, ocean towing, heavy lift transportation services, spill response services, tank farm and fuel management services. 357 188

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

50,000+ Solutions for your power needs. Sales and service for Cummins engines and generators, 35 also an extensive parts inventory for Cummins engines and generators. Selling and servicing generators for your business, home, RV or camp. Also available in Fairbanks, AK.

1987 1987

13 11

DAT/EM Systems International is an Alaska-based developer of world-class photogrammetric software. Since 1987, DAT/EM has built tools to efficiently extract and edit 3D vector features from stereo imagery and point clouds.

2012 2012

10 10

The DAC is Fairweather, LLC's multimodal aviation facility designed to meet the needs of onshore and offshore oil and gas development on the North Slope. The DAC has 2 large hangars, office space, terminal, full-service medical facility, bedrooms, and a full dining facility.

2007 2007

550 100

We manage over $13B in oil and gas projects for our clients across North America Services include Electrical/Instrumentation Automation/Controls Mechanical/Piping Structural/Piling Insulation Turnaround Projects Tie-Ins Well Site Devp Program/Project/ Construction Mgnt & Execution Professional Staff.

2002 2002

43 43

Specialized leasing of fleet trucks, SUVs, vans, & shuttle buses, as well as construction & mining equipment, oil & gas equipment. GM, Dodge & International warranty repair center. Alaskan-owned. Deadline driven. Results oriented. Anchorage/Kenai/Prudhoe Bay/Fairbanks/Remote Alaska.

1985 1985

160 130

Fuel and lubricant distribution.

1970 1970

32,000 Worldwide freight services featuring total Alaska coverage. Specializing in air cargo, 10 trucking, express services, warehousing, storage solutions, supply chain, and rail freight. May 2015 | www.akbizmag.com

Company

Estab. Empls. Donald Pearson, Pres.

FOUNDED/ESTAB. AK

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

Reed Christensen, Pres./GM

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

Thomas (Bob) Kean, Pres.

Doyon, Limited 1 Doyon Pl., Suite 300 Fairbanks, AK 99701-2941 Phone: 907-459-2000 Fax: 907-459-2060

Aaron Schutt, Pres./CEO

Equipment Source, Inc. 1919 Van Horn Rd. Fairbanks, AK 99701 Phone: 888-868-9049 Fax: 907-458-7180

Troy Lockes, GM

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

Elliott Neal, VP AK

ESS Support Services Worldwide 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 Everts, Pres./CEO

Fairweather Deadhorse Medical Clinic 500 First St. Deadhorse, AK 99734 Phone: 907-685-1800 Fax: 907-371-9194

Dennis Spencer, Dir. Medical Svcs.

tpquick@gmail.com dpnorth.com

reed@dowlandbach.com dowlandbach.com

doyonuniversal.com

info@doyon.com doyon.com

equipmentsourceinc.com

erahelicopters.com

lweihs@ess-worldwide.com essalaska.com

info@evertsair.com evertsair.com

fairweathermedical.com

WORLDWIDE\AK EMPLOYEES

SERVICES

1977 1977

2 2

Deadhorse Airport pad.

1975 1975

29 28

Wellhead Control Systems, NRTL Listed Industrial Control Panel Fabrication, Automation Services/Systems Integration, Stainless Steel Tubing, Pipe, Fittings, Flanges. Chemical Injection and Custom Stainless Steel fabrication.

1946 1946

1,157 Operational support including catering, housekeeping, facility maintenance, and security. 888

1972 1972

2,787 Doyon Drilling - Oil & Gas Drilling; Doyon Universal Services - Security & Camp 1,722 Services; Doyon Associated - Construction; Doyon Anvil - Engineering; Doyon Remote Facilities & Services - Camps and Camp Services.

2000 2000

49 35

We offer durable, Alaskan built industrial heaters, generator sets, triplex pumps, water pumps, trailers, enclosures, and more. Our manufactured products focus on supplying solutions for the oil, gas, and mining industries. We are also a proud Kubota Tractor dealer.

1948 1948

1,000 Founded in Alaska in 1948, Era not only serves the oil and gas industry in Alaska, but 150 provides services for state and government business, executive charter services, flightseeing tours, environmental surveys, utility and construction work.

1986 1984

150,000 Restaurants, lounges, and espresso operations. Catering services: small to large remote 350 site facilities for short- or long-term projects, including offshore drilling platforms, employee staffing and leasing, in-flight services, governmental agency support services and Impressions Catering.

1995 1995

259 249

An Alaskan owned and operated air carrier that provides scheduled freight service to 12 rural communities and charter service to anywhere in Alaska with suitable runway conditions. Cargo charters, HAZMAT, bulk fuel, small package and oversize. Based in Anchorage and Fairbanks.

2012 2012

7 7

Strategically located in the Deadhorse Aviation Center with direct runway access, the Fairweather Deadhorse Medical Clinic offers a full-spectrum of acute care, emergency medicine and occupational health services, including advanced cardiac life support and ambulance support.

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

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

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

Services

Where the road ends…

Our Work Begins

Our crews have decades of experience, and the skilled manpower to take on any task. With our tundra-approved vehicles, we can get your drill rig and project materials to any remote location, and build ice pads and ice roads. And our range of logistics support – hauling fuel and freight – has been broadened with the addition of our new marine services division.

cruzconstruct.com

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

From start to finish, we are a partner who can deliver what you need.

Anywhere you need it. Any season of the year.

tundra transport • rig moves • rig support • remote camps • ice roads • ice pads • well site trailer units • marine services May 2015 | www.akbizmag.com

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

Fairweather LLC 301 Calista Ct. Anchorage, AK 99518 Phone: 907-346-3247 Fax: 907-349-1920

Lori Davey, GM

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

Josh Hanford, AK Mgr.

Fluor Alaska, Inc. 4300 B St., Suite 210 Anchorage, AK 99503 Phone: 907-865-2000 Fax: 907-865-2023

Wyche Ford, GM/Project Dir.

Foss Maritime Company 188 W. Northern Lights Blvd., Suite 1020 Anchorage, AK 99503 Phone: 907-782-4950 Fax: 907-782-1185

Gary Faber, Pres. Global Svcs.

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

Howard Grey, Mgr.

Fugro 5761 Silverado Way, Suite O Anchorage, AK 99518 Phone: 907-561-3478 Fax: 907-561-5123

Rada Khadjinova, AK Div. Mgr.

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

Christopher Nettels, Pres.

GIS Oilfield 1800 W. 48th Ave., Suite G Anchorage, AK 99517 Phone: 907-265-3600 Fax: 907-265-3699

Mark Pregeant, Pres.

Golder Associates, Inc. 2121 Abbott Rd., Suite 100 Anchorage, AK 99507 Phone: 907-344-6001 Fax: 907-344-6011

Mitchells Richard, Mgr. AK Ops

GPS Alaska 360 E. Int'l Airport Rd., Suite 10 Anchorage, AK 99518 Phone: 907-562-8000 Fax: 907-562-8080

William McClintock, Pres.

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

Cathy Porter, Mgr.

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

John Minder, CEO

HaberVision 15710 W. Colfax Ave #204 Golden, CO 80401 Phone: 303-459-2220 Fax: 303-379-4742

Steve Haber, Chairman/Co-Founder

Hart Crowser 310 K St., Suite 243 Anchorage, AK 99501 Phone: 907-276-7475 Fax: 425-778-9417

Jason Stutes, AK Office Mgr.

Hawk Consultants LLC 670 W. Fireweed Ln., Suite 201 Anchorage, AK 99503 Phone: 907-278-1877 Fax: 907-278-1877

Maynard Tapp, Mng. Member

Hector's Welding, Inc. 701 Finel Dr. North Pole, AK 99705 Phone: 907-488-6432 Fax: 907-488-8385

Ken Therriault, VP/GM

Hepworth Agency 612 E Third Ave. Anchorage, AK 99501 Phone: 907-272-5766

Wadeen Hepworth, Owner

High Tide Exploration 180 E. Hygrade Ln. Wasilla, AK 99654 Phone: 907-354-3132 Fax: 907-354-3132

Chris Hoffman, Owner

facebook.com/fairweatherllc fairweather.com

alaskaoffice@fircroft.com fircroft.com

fluor.alaska@fluor.com fluor.com

info@foss.com foss.com

hgrey@foundex.com foundex.com

searl@fugro.comM fugro.com

ksmith@geotekalaska.com geotekalaska.com

gisy.com

golder.com

info@gpsalaska.com gpsalaska.com

dispatch@greatcircleflight.com greatcircleflight.com

info@grtnw.com grtnw.com

sales@habervision.com habersafety.com

jason.stutes@hartcrowser.com hartcrowser.com

davenorton@hawkpros.com hawkpros.com

hectors@acsalaska.net hectorswelding.com

HepworthAgency@gci.net HepworthAgency.com

chris@hightidealaska.com hightidealaska.com

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1976 1976

115 115

1970 2009

1500 Fircroft is a leading provider of technical recruitment solutions to a number of specialist 4 industries, active in over 80 countries worldwide. Our key sectors include oil and gas, petrochemicals and process, automotive and aerospace, nuclear and power, mining and minerals, and general engineering.

1913 1954

40,000 Engineering, construction, procurement, maintenance, mining and project management. 80

1889 1922

1,537 Foss offers tug and barge support services, contract towing, offshore support, and oil 6 development project support. We also partner with the energy services arm of the Arctic Slope Regional Corporation to assist with petroleum field production in the North Slope while safeguarding the environment.

1983 1983

15-25 Provide geotechnical and environmental drilling services. Equipped for drilling with air 15-25 and mud rotary, sonic, coring, and auger tools. Some of our equipment is specially designed for helicopter support. This year we added a jack-up rig.

1962 2003

12,500 Offshore: marine geophysics and seafloor mapping, metocean services and 10 geotechnical investigations. Onshore: aerial and satellite mapping, precise positioning, geotechnical investigations, and regulatory and environmental assessments.

2002 2002

25 25

Founded in 1976 by Sherron Perry, Fairweather offers a range of highly-specialized services to support remote oil & gas & mining operations. These services include remote medical & HSE support, meteorological & oceanographic forecasting, aviation & airstrip support & expediting & logistics services.

We specialize in the acquisition of subsurface data for both the environmental and geotechnical professional communities. If your needs involve the characterization of the subsurface we offer Drilling, UVOST, Utility Clearance, Ground Penetrating Radar, and Vacuum Clearing.

1948 2008

1,700 GIS is a full service construction and fabrication company providing turnkey solutions for 150 the resource development industries: Field construction, O&M/TAR support; fabricating of industrial & blast resistant modules, camps, Envirovacs, offices complexes & other light modules construction.

1960 1980

7,500 Arctic and geotechnical engineering, groundwater resource development, environmental 40 sciences and remedial investigation.

2004 2004

4 4

PRECISION GPS and machine control sales service rental training and support for surveyors and contractors offering TOPCON, SOKKIA, CARLSON, and FARO products.

2005 2005

8 8

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

1976 1976

230 230

Heavy highway civil construction, utilities, paving, landscaping.

2005 2005

10 1

HaberVision is an innovative leader in Safety Eyewear. The first only patented UL Intrinsically Safe Auto No Fog Fan technology in our Safety Fan Goggles, and Splash Fan Goggles. Steve Haber, founder of Bolle and an Alaska resident, has returned to the eyewear industry with sunglasses and goggles.

1974 1985

115 2

Providing natural resources; environmental and geotechnical engineering; and hydrogeology support. Includes NEPA services, environmental permitting, baseline surveys (biological and chemical), fisheries, Endangered Species Act compliance, wetlands, and shoreline and in-water restoration.

1985 1985

~80 ~80

Project management services for the Alaska oil and gas industry, primarily through staff augmentation services. We also provide technical consulting services during all phases of project delivery and serve clients in contract closeout, claims consulting, and dispute resolution services at project completion.

1956 1956

7 7

Steel sales, iron fabrication: 10' shear and brake; roll, Iron Worker; and 10' X 12' plasma table.

2001 2001

1 1

Marketing assistance, company representation rig matting, composite bridges, marine products, railroad platforms, and soil stabilization products.

2010 2010

3 3

We gather underwater video to depths of 1,000 ft. using our Remotely Operated Vehicle throughout Alaska and locations worldwide. As biologists, we are well suited to describe underwater habitat or can team with engineers to assess the condition of underwater structures. May 2015 | www.akbizmag.com

Company

Estab. Empls. Kenn Kadow, Pres.

Independent Lift Truck of Alaska 1200 E. 70th Ave. Anchorage, AK 99518 Phone: 907-344-3383 Fax: 907-344-8366

Wayne Dick, Pres.

Intertek Testing Service NA, Inc. 22887 NE Townsend Way Fairview, OR 97024 Phone: 503-676-2311 Fax: 503-676-2350

Greg Tiemann, CEO North America

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

Terry Heikkila, Dir. AK Ops

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

Judy Patrick, Owner

Kakivik Asset Management LLC 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503 Phone: 907-770-9400 Fax: 907-770-9450

A. Ben Schoffmann, Pres./CEO

Kiewit Infrastructure West Co. 2000 W. Int'l Airport Rd., #C6 Anchorage, AK 99502 Phone: 907-222-9350 Fax: 907-222-9380

Pat Harrison, Exec. Area Mgr.

Lifewater Engineering Company 1936 Donald Ave. Fairbanks, AK 99701 Phone: 907-458-7024 Fax: 907-458-7025

Bob Tsigonis, Pres./PE

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

Jim Sawhill, Pres.

May 2015 | www.akbizmag.com

FOUNDED/ESTAB. AK

info@immersivevideosolutions.com immersivevideosolutions.com

barry.ilt@gci.net iltalaska.com

uriah.edmunds@intertek.com intertek.com

jacobs.com

judy@judypatrickphotography.com judypatrickphotography.com

info@kakivik.com kakivik.com

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

Bob@LifewaterEngineering.com LifewaterEngineering.com

k.ayers@lounsburyinc.com lounsburyinc.com

WORLDWIDE\AK EMPLOYEES

SERVICES

2005 2005

22 10

Geo-spatial mapping using 360 degree HD video cameras and LIDAR technologies.

1982 1982

22 22

Authorized Dealers and repair centers for Advance floor care machines. CAT, Jungheinrich, Mitsubishi, Manitou, Maximal, Bendi and DREXEL forklifts; GEHL and Wacker Neuson construction equipment. Full parts, sales and service for most all makes and models of equipment.

1896 1976

35,000+ Third party testing laboratory for product safety testing of electrical, mechanical, building 4 products, sanitation and wood or gas fired appliances. This includes the oil and gas industries and seafood processing plants throughout Alaska.

1947 1993

66,000 Our Alaska operation has the capability of leveraging our vast global resources to 65 provide a wide range of services; including environmental permitting, compliance, investigation & remediation; energy conservation; logistics; upstream design; feasibility analysis & construction management.

1984 1984

2 2

1999 1999

250 250

1884 1947

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

Kakivik is a full service industrial asset integrity management company specializing in Nondestructive Testing (NDT), External and Internal Corrosion Investigations, Quality Program Management and Field Chemical and Corrosion Management including chemical laboratory and coupon/probe operations.

25,000 Heavy civil construction including transportation, marine, dams and resource 200 development.

1998 1998

8 8

1949 1949

80+ 80+

Plastic fabricators providing sewage treatment and water treatment plants for man camps in the most extreme environments and remote places. Ask about our boats, tanks, and other innovative products. Civil engineering, land surveying, planning, construction management. Servicing local and state government, oil and gas industry and private development. Offices in Anchorage, Wasilla, Kuparuk and Billings, Montana.

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

Immersive Video Solutions 907 E. Dowling Rd., Suite 14 Anchorage, AK 99518 Phone: 907-279-4000 Fax: 907-274-4000

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

Services

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

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

Rick Zerkel, 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 Training Center 1095 Sanduri St. Fairbanks, AK 99701 Phone: 907-456-2223 Fax: 907-456-2266

Scott Hicks, Pres.

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

Paul Grimaldi, Pres.

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

Mick McKay, CEO

Michael Baker Jr., Inc. 3900 C St., Suite 900 Anchorage, AK 99503 Phone: 907-273-1600 Fax: 907-273-1699

Jeffrey Baker, Reg. Dir.

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

Elliott Neal, VP

Moffatt & Nichol 880 H St., Suite 208 Anchorage, AK 99501-3450 Phone: 907-677-7500 Fax: 907-677-7577

Shaun McFarlane, AK Mgr.

Motion Industries, Inc. 611 E. Int'l Airport Rd. Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536

Matt Bailey, Anch. Branch Mgr.

Motion Industries, Inc. 1895 Van Horn Rd., Unit A Fairbanks, AK 99701 Phone: 907-452-4488 Fax: 907-456-8840

Brad Deweese, Fairbanks Branch Mgr.

MWH 1835 S. Bragaw St., Suite 350 Anchorage, AK 99508 Phone: 907-248-8883 Fax: 907-248-8884

Chris Brown, AK Reg. Mgr.

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

John Harnish, Pres./CEO

NALCO Champion 1400 W. Benson Blvd., Suite 390 Anchorage, AK 99503 Phone: 907-563-9866 Fax: 907-563-9867

Derek Lewis

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

Rock Hengen, Pres./GM

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

Paull Gillett , COO

NGL International LLC 301 W. Northern Lights Blvd., Suite 660 Anchorage, AK 99503 Phone: 907-365-6299 Fax: 907-365-6250

Jane Treadway, Client Mgr.

NMS 5600 B St. Anchorage, AK 99518 Phone: 907-273-2400 Fax: 907-273-2424

Matthew Baggett, Pres.

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

lafmtg@laf.lynden.com lynden.com/lint

information@lynden.com lynden.com

awtc@lynden.com awtc.lynden.com/

trananccs@lynden.com lynden.com/ltia/

gina.heath@marshcreekllc.com marshcreekllc.com

mbakerintl.com

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

smcfarlane@moffattnichol.com moffattnichol.com

MiMarketing@motionindustries.com motionindustries.com

chris.brown@mwhglobal.com mwhglobal.com

sfield@ncmachinery.com ncmachinery.com

dalewis@nalco.com nalco.com

info@nanaworleyparsons.com nanaworleyparsons.com

paul.gillett@naniqglobal.com naniqglobal.com

jane.treadway@ngl-intl.com tikigaq.com

information@nmsusa.com nmsusa.com

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1996 1996

154 154

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

1980 1980

236 51

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

1984 1984

10 3

Arrangement of freight transportation, information management and logistical services.

1978 1978

11 11

Providing training in hazardous materials transportation, emergency response for hazardous materials, Incident Command System, hazardous waste and work place safety, the Lynden Training Center, a division of Alaska West Express, inc., is the hands-on training facility.

1954 1954

291 150

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

2004 2004

~140 Energy systems, environmental, construction, telecommunications. 140

1940 1942

5,000 Engineering: transportation, pipeline, geotechnical, mechanical, civil; GIS & LiDAR; ~80 Environmental/Permitting/NEPA; public involvement.

1979 1948

50 50

WeĂ&#x2022;re AlaskaĂ&#x2022;s 24 hour, full service FBO with fuel, aircraft support, crew resting facilities, and business services.

1945 2012

623 4

Moffatt & Nichol has provided waterfront engineering services to the energy industry since our founding in 1945. Today, we serve clients globally for projects ranging from piers & wharves to deep foundations, offshore floating facilities, liquid & dry bulk terminals, and offshore mooring systems.

1970 2010

4,000 A leading distributor of industrial maintenance, repair and operation (MRO) replacement 11 parts (over 5.9 million parts), including bearings, power transmission, hydraulic/ pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, seals, process pumps & material handling.

1970 2010

4,000 A leading distributor of industrial maintenance, repair and operations (MRO) 11 replacement parts (over 5.9 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/indus. hose, indus. & safety supplies, process pumps, seals & material handling.

1977 1982

7,000 Water, wastewater, environmental remediation, permitting and power. 30

1776 1926

1,172 Cat machine sales, parts, service, and rental. Cat engines for marine, power generation, 263 truck, petroleum, and industrial applications. Sales and rental of Cat and other preferred brands of rental equipment and construction supplies.

1928 2013

38,000+ Nalco Company is the world's leading water treatment and process improvement 18 company. Helping customers reduce energy, water and other natural resource consumption, minimizing environmental releases while boosting the bottom line through innovative chemistry and dedicated personnel in Alaska.

1997 1997

400+ A project delivery company focused on multi-discipline engineering and design, 400+ procurement and construction management services for the Hydrocarbons, Power, Minerals & Metals, and Infrastructure & Environment industries.

2005 2005

Worldwide logistics, including ground, air, and ocean.

2010 2010

50 5

NGL International, LLC (NGLI) is a small logistics company with large business depth, resources and means. As a leading provider of logistics solutions, we leverage the capabilities of our global presence to enhance the efficiencies and effectiveness of supply chain processes.

1974 1974

1,807 With more than three decades of delivering support services, NMS is skilled in meeting 1,804 the needs of clients in urban, rural and remote site locations, whether you need to manage a remote camp, deliver catering services to your corporate headquarters, or provide security for your manufacturing plant. May 2015 | www.akbizmag.com

Company

Estab. Empls.

NMS Security 5600 B St. Anchorage, AK 99518 Phone: 907-273-2400 Fax: 907-273-2424

Bill Tandeske, VP Ops/Security

NMS Staffing 1001 E. Benson Blvd. Anchorage, AK 99508 Phone: 907-729-5570 Fax: 907-729-5579

Eric Fox, VP Ops

NORCON, Inc. 949 E. 36th Ave., Suite 143 Anchorage, AK 99508 Phone: 907-349-0821 Fax: 907-275-6300

Randy Barnes, VP Norcon, Inc.

Nordic-Calista Services 219 E. Int'l Airport Rd., Suite 200 Anchorage, AK 99518 Phone: 907-561-7458 Fax: 907-563-8347

Noel Therrien, Ops Mgr.

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

Jeff Bentz, Pres.

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

David Karp, Pres./CEO

Northern Industrial Training LLC 1740 N. Terrilou Ct. Palmer, AK 99645 Phone: 907-357-6400 Fax: 907-357-6430

Joey Crum, Pres./CEO

Northern Land Use Research Alaska LLC 234 Front St. Fairbanks, AK 99701 Phone: 907-474-9684 Fax: 907-474-8370

Burr Neely, GM

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

Robin Curtis, Northwest Reg. Mgr.

May 2015 | www.akbizmag.com

FOUNDED/ESTAB. AK

nmssecurity.com

nmsstaffing@nmsusa.com nmsstaffing.net

Inquiries@NORCON.com norcon.com

info@nordic-calista.com nordic-calista.com

scottv@northstarak.com northstarak.com

customercare@nac.aero nac.aero

info@nitalaska.com nitalaska.com

nlur@northernlanduse.com northernlanduse.com

klinn@pdstech.com pdstech.com/nwts.php

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1974 1974

786 486

Providing security services in Alaska since 1974, we serve a wide variety of clients including federal, state and local governments, corporate facilities, healthcare providers, manufacturing centers, the telecommunications industry, and museums with an expansive array of security services.

1991 1991

90 90

Dedicated to finding and placing the most qualified employees in various types of skilled and technical positions. We partner with each client, getting to know exactly what your staffing needs are so we can find that perfect match. Our highly trained and skilled recruiters seek out the best talent.

1974 1974

174 138

NORCON is a full-service General Contractor with particular expertise in Mechanical construction. NORCON delivers high quality mechanical installations work at Prudhoe Bay, AK, executing a variety of projects, including: Well Tie-Ins, critical shutdowns/ turnaround, and support facility construction.

1982 1982

140 140

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

1950 1950

~50 ~50

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

1956 1956

300 280

Anchorage based Northern Air Cargo is Alaskaﾃ不 largest all-cargo airline. From groceries and generators to medical supplies and lumber, customers across Alaska, including a wide array of industries such as oil & gas, mining, construction, and commercial fishing rely on NACﾃ不 services.

2003 2003

75 60

Northern Industrial Training, LLC (NIT) is a privately owned, serving the public, vocational training center specializing in professional truck driving, heavy equipment, oil/ gas, health, safety training and corporate services.

1991 1991

15 15

National Historic Preservation Act Sec. 106 assessments; identification, evaluation, mitigation services-prehistoric/historic archaeology, historic architecture, cultural landscapes, and subsistence investigations; documents to satisfy NEPA and permitting requirements; reg compliance; consultation.

1980 1980

5,000 "Connecting the right people to the right jobs" for Alaska businesses. 150

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

NRC Alaska LLC dba Emerald Alaska 425 Outer Springer Lp. Palmer, AK 99645 Phone: 907-258-1558 Fax: 907-746-3651

Blake Hillis, SR. VP NRC Alaska

FOUNDED/ESTAB. AK

Offshore Systems, Inc. 2410 E. 88th Ave. Anchorage , AK 99507 Phone: 800-733-6434 Fax: 907-646-1430

Jared Davis, Dir. AK Ops

Olgoonik Inspection Services 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-562-8728 Fax: 907-562-8751

Julie Dietz, GM

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

Mary Jane Lang, Pres.

Orion Marine Contractors, Inc. 6120 A St. Anchorage, AK 99518 Phone: 907-561-9811

Bryce Erickson, VP Cnstrctn Ops AK

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

Brent Porter, AK Reg. Mgr.

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

Jay Goold, Branch Mgr.

Peak Oilfield Service Co. LLC 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503 Phone: 907-263-7000 Fax: 907-263-7070

Patrick Walsh, Pres./CEO

Pearson of Alaska 5100 Cordova St. Anchorage, AK 99503-7243 Phone: 907-563-3067 Fax: 907-562-6448

Donald Pearson, Pres.

Petro Marine Services 3201 C St., Suite 302 Anchorage, AK 99503 Phone: 907-562-5000 Fax: 907-273-8242

Kurt Lindsey, Pres.

Petro Star, Inc. 3900 C St. Anchorage, AK 99503 Phone: 907-339-6600 Fax: 907-339-6653

Doug Chapados, Pres./CEO

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

Kevin Durling, Pres.

Petrotechnical Resources of Alaska LLC 3601 C St., Suite 1424 Anchorage, AK 99503 Phone: 907-272-1232 Fax: 907-272-1344

Tom Walsh, Mng. Partner

PistenBully / Kassbohrer ATV 18460 SW 126th Pl. Tualatin, OR 97062 Phone: 503-783-1935 Fax: 503-783-1936

Dennis McGiboney, VP Sales/Mktng.

PND Engineers, Inc. 1506 W. 36th Ave. Anchorage, AK 99503 Phone: 907-561-1011 Fax: 907-563-4220

John Pickering, Pres.

Polar Supply Co. 300 E. 54th Ave. Anchorage, AK 99518-1230 Phone: 907-563-5000 Fax: 907-562-7001

Ed Waite, Sr. VP

Price Gregory International 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255

Robert Stinson, Sr. VP

Professional Business Services, Inc. 807 G St., Suite 200 Anchorage, AK 99501 Phone: 907-279-2679 Fax: 907-276-5758

Joan Stolle, Pres.

PNielsen@nrcc.com nrcc.com

offshoresystemsinc.com

olgoonikinspectionservices.com

oilfield@olgoonik.com olgoonikoilfieldservices.com

BErickson@OrionMarineGroup.com OrionMarineGroup.com

alaska@penco.org penco.org

jaygoold@paramountsupply.com paramountsupply.com

peak@peakalaska.com peakalaska.com

tpquick@gci.net dpnorth.com

rogerb@harborent.com petromarineservices.com

petrostar.com

sales@pesiak.com pesiak.com

info@petroak.com petroak.com

chales@pistenbullyusa.com pistenbullyusa.com

pndengineers.com

dshooner@polarsupply.com polarsupply.com

pricegregory.com

info@pbsjobs.com pbsjobs.com

2014 2014

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1,000 Emergency spill response, hazardous/non-hazardous waste disposal, petroleum product 100 recycling, industrial cleaning services, vacuum truck services, automotive fluids recycling and sales, environmentally friendly cleaners/degreasers, site clean-up and remediation. Anchorage/Kenai/Prudhoe/Fairbanks.

1983 1983

160 150

Dock facilities in Nikiski, Dutch Harbor, and Adak servicing the oil and fishing industries. Services include dock space, warehousing, cold storage, stevedoring services, heavy equipment, and fuel.

2014 2014

6 6

Olgoonik Inspection Services provides non-destructive testing, engineering, and remediation services for military, government and private clients. Inspections are performed in accordance with the American Society of Nondestructive Testing (ASNT), ASME, API 653, API 570, NACE, AWS-CWI, and STI.

2009 2009

35 35

Exploration and Production Infrastructure and Support; Marine, Air and Land Logistics; Program and Project Delivery; Integrated Arctic Solutions; Environmental Science Studies; Camp and Facility Operations; Heavy Equipment Operations; Downhole Tools; Remote Sensing Data Collection.

2009 2012

1,240 Pile driving, bridge construction, dock and trestle construction, shore protection, 60 dredging, rock quarry operation.

1985 1994

~60 ~40

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.

1954 1982

~150 Paramount Supply Company is an industrial wholesaler, founded in 1954 by John 4 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 SE Alaska from Ketchikan.

1987 1987

910 910

1976 1976

2 2

1959 1959

180 180

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.

1984 1984

313 311

Refining and fuel distribution.

1983 1983

25 25

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 contracting services.

Exploration support, remote cleanups.

1997 1997

70-100 Alaska's oil and gas consultants specializing in geoscience, engineering, project 70-100 management, seismic and well data.

1969 -

54 in Kassbohrer All Terrain Vehicles, Inc./PistenBully tracked utility vehicles. Up to 490 North horsepower. Ice road construction, snow removal, transport equipment, pull heavy sleds, America personnel cabins, special use. Support branches throughout North America. 0

1979 1979

130 85

General civil, structural, geotechnical, arctic, marine, and coastal engineering; survey; permitting; hydrology; metocean; quality assurance; inspection; among others. linkedin.com/company/pnd-engineers-inc-

1985 1985

10,000 Polar Supply is Alaska's leading supplier of industrial products and construction 700 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 1974

1,500 Pipeline, power, heavy industrial construction, EPC and consulting services. 300 Infrastructure construction services provider.

1978 1977

5-50 Providing personnel for professional, technical, and administrative positions for oil and 5-50 gas industry clients. Staffing services include temporary, temp-to-hire, and regular placements. May 2015 | www.akbizmag.com

Company

Estab. Empls.

Quality Equipment Sales & Services 11801 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-6215 Fax: 907-349-2332

Ray Belanger, Pres./Owner

Schlumberger Oilfield Services 6411 A St. Anchorage, AK 99518 Phone: 907-273-1700 Fax: 907-273-4760

Christine Resler, GeoMarket Mgr.

Security Aviation 6121 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-248-2677 Fax: 907-248-6911

Stephen "Joe" Kapper, Pres.

Seekins Ford Lincoln, Inc. 1625 Seekins Ford Dr. Fairbanks, AK 99701 Phone: 907-459-4000 Fax: 907-459-4057

Ralph Seekins, Pres.

Shoreside Petroleum, Inc. 6401 Lake Otis Pkwy. Anchorage, AK 99507 Phone: 907-344-4571 Fax: 907-349-9814

Kurt Lindsey, Pres.

Siemens Industry, Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139

Leverette Hoover, GM AK

SolstenXP, Inc. 406 W. Fireweed Ln., Suite 101 Anchorage, AK 99503-2649 Phone: 907-279-6900 Fax: 907-264-6190

Jesse Mohrbacher, Pres./CEO

Spill Shield, Inc. 2000 W. International Airport Rd, #D-2 Anchorage, AK 99502 Phone: 907-561-6033 Fax: 907-561-4504

Ken Bauer, Ops & Sales Mgr.

STEELFAB 2132 Railroad Ave. Anchorage, AK 99501 Phone: 907-276-4303 Fax: 907-276-3448

Richard Faulkner, Pres.

May 2015 | www.akbizmag.com

FOUNDED/ESTAB. AK

quality@ak.net quessak.com

randerson2@slb.com schlumberger.com

sales@securityaviaition.biz securityaviation.biz

sales@seekins.com seekins.com

info@shoresidepetroleum.com shoresidepetroleum.com

leverette.hoover@siemens.com siemens.com

info@solstenxp.com soltenxp.com

spillshield@ak.net spillshield.com

steelfabak.com

1982 1981

1956 1956

Services

WORLDWIDE\AK EMPLOYEES

12 12

SERVICES

Truck Upfitter, Construction Equipment, Vehicle Mainenance, Highway Maintenance Equipment.

115,000 Oilfield Services. 1,000

1985 1985

25 25

24/7 on-demand air charter. Approved carrier for State and Federal Agencies. Executive travel, crew changes, and "HOT" cargo.

1977 1977

105 105

Automotive sales, service, parts and body shop.

1981 1981

110 110

Shoreside Petroleum is an Alaskan owned fuel and lubricants distributor marketing fuels, lubricants, and other petroleum related products in Southcentral Alaska & PWS with terminals in Anchorage, Wasilla, Cordova, Whittier and Seward. Shoreside also owns & operates the Ă&#x201D;Essential 1Ă&#x2022; brand.

1849 1982

343,000 Energy Services Company (ESCO)/Total Building Integrator: to include Building 100 Automation/Energy Management control systems, fire alarm, HVAC mechanical systems, security (card access, CCTV, intrusion, etc.), audio and video solutions and mass notification systems.

1993 1993

140 140

1992 1992

5 5

Supplier for Smart Ash, Oil Away, Drug Terminator and MediBurn incinerators. Absorbents, water scrubbers, oil spill response kits, Super Sacks, harbor boom, nitrile gloves, MicroBlaze, absorbent pads, rolls, boom, sock, duck ponds, spill kits, and related oil spill cleanup and prevention products.

1948 1948

49 49

STEELFAB-Steel Source for Alaska. Fully-integrated steel fabricator, service center, and coatings facility with the largest volume capacity in the state. Located in Ship Creek since 1948.

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

Company

Estab. Empls.

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

Steigers Corporation 791 South Park Dr., Suite 800 Littleton, CO 80120-5719 Phone: 800-935-6569 Fax: 303-500-3113

William Steigers, Chairman/CEO

Swagelok Alaska 341 E. 56th Ave. Anchorage, AK 99518 Phone: 907-563-5630 Fax: 907-563-4721

Brenton Burbank, Dir. AK Ops

Taiga Ventures 2700 S. Cushman St. Fairbanks, AK 99701 Phone: 907-452-6631 Fax: 907-451-8632

Mike Tolbert, Pres.

Taku Engineering LLC 205 E. Benson Blvd. Anchorage, AK 99503 Phone: 907-562-1248

William Mott, GM/PE

TrailerCraft | Freightliner of Alaska 1301 E. 64th Ave. Anchorage, AK 99518-1908 Phone: 907-563-3238 Fax: 907-561-4995

Lee McKenzie, Pres./Owner

Truckwell of Alaska, Inc. 5801 Silverado Way Anchorage, AK 99519-1659 Phone: 907-349-8845 Fax: 907-344-0644

Kris Swanson, Owner

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1993 2004

5 0

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.

1965 1965

10 10

Instrumentation and fluid system components. Authorized Swagelok distributor for Alaska.

1979 1979

12 12

Taiga Ventures provides remote camps and logistics services (expediting, resupply, catering, fuel systems, vehicle & equip. rentals) for exploration, drilling, mining, clean-up & disaster relief projects Statewide. Drill mud, PVC well pipe & supplies in stock. In Anchorage @ 351 92nd Ave, 245-3123.

2001 2001

20 20

An Alaskan owned & operated engineering firm dedicated to providing innovative Project Engineering, Management & Corrosion Control design solutions for the Oil & Gas Industry.

1969 1969

55 55

Parts, sales and service for trucks, tractors, trailers, transport equipment, snow plows and sanders.

1989 1989

20 20

Truck equipment and custom fabrication specializing in harsh environments and oil field support.

TTT Environmental Instruments & Supplies Deborah Tompkins, Owner 4201 B St. Anchorage, AK 99503 info@tttenviro.com Phone: 907-770-9041 Fax: 907-770-9046 tttenviro.com

2003 2003

16 13

Portable gas detection, health and safety monitoring, environmental equipment. Rentals, sales, service and supplies. Warranty center. Alaskan owned small business.

Tulugaq 301 Calista Ct. Anchorage, AK 99518 Phone: 907-346-3247 Fax: 907-349-1920

Steve Wackowski, Ops Mgr.

2013 2013

2 2

Tulugaq provides remote sensing and scientific data collection services utilizing specialized airborne assets, in order to support Arctic oil and gas operations.

Tutka LLC 5825 E. Mayflower Ct., Suite B Wasilla, AK 99654 Phone: 907-357-2238 Fax: 907-357-2215

Amie Sommer, Member

wdsteigers@steigers.com steigers.com

info@alaska.swagelok.com swagelok.com/Alaska

taiga@taigaventures.com taigaventures.com

harrybuchea@takuengineering.com takuengineering.com

sales@trailercraft.com trailercraft.com

info@truckwell.com truckwell.com

fairweather.com

amie@tutkallc.com tutkallc.com

1999 1999

10-30 WBE/DBE (SOA), EDWOSB/WOSB, HUBZone, General Contractor, heavy civil 10-30 construction, environmental cleanup and consulting, oil water separator maintenance, cleaning & repair.

May 2015 | www.akbizmag.com

Company

Estab. Empls. FOUNDED/ESTAB. AK

Udelhoven Oilfield System Services 184 E. 53rd Ave. Anchorage, AK 99518-1222 Phone: 907-344-1577 Fax: 907-344-5817

Jim Udelhoven, CEO

UIC Design Plan Build 6700 Arctic Spur Rd. Anchorage, AK 99507 Phone: 907-677-8220

Dave Pfiefer, Pres.

UMIAQ 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-677-8220 Fax: 907-677-8286

Richard S. Reich, PE/GM

Vigor Alaska 3801 Tongass Ave. Ketchikan, AK 99901 Phone: 907-228-5302 Fax: 907-247-7200

Adam Beck, Pres.

Washington Crane & Hoist 651 E. 100th Ave., Unit B Anchorage, AK 99515 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

Waste Management of Alaska, Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 907-274-0477 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

West-Mark Fairbanks Service Center 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273

Grant Smith, CEO

WestPac Logistics LLC 130 Marvin Rd. SE, Suite 204 Lacey, WA 98503 Phone: 360-491-4452

King Hufford, Pres.

Yukon Equipment, Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 800-478-1541 Fax: 907-258-0169

Charles Klever, Pres.

rfrontdesk@udelhoven.com udelhoven.com

uicdpb.com

info@uicumiaq.com uicumiaq.com

info@akship.com vigoralaska

SDick@washingtoncrane.com washingtoncrane.com

mholzschuh@wm.com wm.com

wwalker@west-mark.com west-mark.com

info@westpaclogistics.com westpaclogistics.com

info@yukoneq.com yukoneq.com

Services

WORLDWIDE\AK EMPLOYEES

SERVICES

1970 1970

690 655

Oilfield Services, Construction Management, Electrical & Mechanical Construction.

1982 1982

225 150

Design, Plan, Build, General Contracting, Vertical and Horizontal Construction, Environmental, Fuel and Tank Systems, HVAC, Fire Suppression Systems.

1982 1982

200 200

UMIAQ services include resource development, regulatory planning, stakeholder relations, surveying, logistics, onshore/offshore spill response, Arctic science support, etc.

1994 1994

2,400 We are the largest most capable marine industrial service company in the AK/PNW 200 Region focused on shipbuilding and repair. Alaska operations are concentrated in AIDEAÕs Ketchikan Shipyard. Our mobile and multi-skilled workforce travels throughout Alaska to heavy industrial and offshore projects.

1975 2008

1969 1969

35 10

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 and crane parts.

~42,700 Hazardous and nonhazardous waste disposal, project management, complete logistical 7 oversight, complete US and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation, and turnkey remedial services.

2009 2009

250 12

Liquid transportation tank trailer repair.

2010 2013

5 2

We do project logistics, project forwarding, and transportation. We also operate WestPac Transportation and WestPac Terminals; we are a terminal operator at Port MacKenzie.

1945 1945

43 43

Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, Oshkosh, Etnyre, Monroe, Trackless, and Snow Dragon. Anchorage, Fairbanks, and Wasilla locations. A subsidiary of Calista Corp.

SERVICES, SUPPORT, SUPPLIES & EQUIPMENT

TOP EXECUTIVE

ALASKA BUSINESS MONTHLY | 2015 OIL & GAS DIRECTORY

COMPANY

Navigating our future

Chugach is looking for companies to invest in and grow through our “good owner” model. We are proud to announce the recent purchase of All American Oilfield, a Kenai-based oil and gas company that serves the Cook Inlet region.

www.chugach.com May 2015 | www.akbizmag.com

ECONOMY

Beyond Oil: Is Economic Diversification a Solution? What are we talking about when we say diversification?

By Lee Huskey and Mouhcine Guettabi

rom one point of view the Alaska economy is not very diversified. The petroleum industry and federal government activity are the economy’s primary driving forces. When we account for the direct, indirect, and fiscal effects these two industries have been responsible for about two-thirds of our recent growth. But what if we ignore the very important fiscal effects of these industries? From this point of view the economy is more diversified and has become more diversified since Alaska’s major 1980s recession.

Why Worry? Why worry about economic diversification? Declines in federal spending starting with sequestration coupled with the current drop in oil prices means Alaska’s two engines of growth, which were chugging along just fine a few years ago, are now experiencing stresses of different magnitudes. Hooking an economy to these two engines would seem to guarantee only a downhill trip. A more diversified Alaska economy would be less sensitive to changes in these two sectors. A rich variety of firms moderates the impact of any one industry on the overall economy. Diversification across industrial sectors is a characteristic of economic development providing both a limit to decline and the fertile soil for new sources of economic growth. Basic Industries and the Support Sector We can think about the Alaska economy in two parts. The basic sector includes those industries that are traditionally thought to drive the economy by bringing in income from outside the state. The second part of the economy is support sector; the part that provides goods and services to the residents and businesses of the state. Since the 1980s both parts of the economy have diversified; they’ve not only expanded, but the va88

riety of activities in each has increased. The Alaska Basic sector has grown through the introduction and expansion of industries like tourism and air freight. The visitor related industry is now responsible for almost forty thousand jobs and total spending in the neighborhood of $4 billion. Changes in the rules in the fishing industry, like the introduction of the Community Development Quota Program in 1992, increased the Alaska portion of income generated in fishing. After a rocky start, the ANCSA (Alaska Native Claims Settlement Act) corporations introduced a new component of the basic sector; these are large international companies with headquarters in Alaska. Demography has also played a role in diversifying the basic sector; the more than doubling of the over 65 population represents an increase the pension and transfer income flowing into the economy. To be specific, the percent of the population over 65 was 3 percent in 1980 and is almost 8 percent as of 2014. With these demographic shifts, payments related to retirement and other transfers have increased almost sevenfold. These changes have resulted in an increase in the variety of driving forces in Alaska’s economy. The other part of Alaska’s economy has not been standing still. As Alaska’s economy grew the support sector expanded in two ways. First, it’s more of the same as the types of activities already present increase to serve the larger number of customers. Second, the economy added new supporting activities as the local market for these activities grew with the economy. This second type of expansion increased the types of businesses in Alaska often replacing goods and services previously purchased outside of the state. In fact, in real dollars the Gross Domestic Product of the retail industry is six times what it was in the 1980s. By many measures of activity this part of the economy grew even faster than the basic sector.

‘Diversification is No Solution’ Diversification will not fill the state’s budget gap, but it does suggest that the private economy has been developing in positive ways hidden by our present concerns. The deepening and widening of the support sector is a significant step in the process of economic development. Jack London in his essay on the economics of the Klondike gold rush was one of the first to point out that the changes in the local economy from past growth encourage future economic growth. Alaska’s economy faces a significant challenge as a result of the decline in oil prices and state revenue. Diversification is no solution to that problem, but this view of the private economy may insert a bit of optimism into an otherwise dreary economic tale. R Lee Huskey is Emeritus Professor of Economics at the University of Alaska Anchorage. He has served as Chair of the Economics Department, Director of the Experimental Economics Program, and acting Director of the Center for Economic Education. He is a past President of the Western Regional Science Association. Huskey’s main area of research is the economics of remote regions, especially in Alaska. Mouhcine Guettabi is an assistant professor of economics at the University of Alaska Anchorage, with a PhD in economics from Oklahoma State University. His fields of specialization are regional and urban economics, health economics, and applied microeconomics. Before coming to ISER, he was a research economist at the CAER (Center for Applied Economic Research) at Oklahoma State University.

Alaska Business Monthly | May 2015 www.akbizmag.com

ENVIRONMENTAL SERVICES

Fli nt Hills Sulfolane Update Company continues ‘monitoring, cleanup, and recovery’

ithout a doubt, contamination at the Flint Hills Resources refinery site near Fairbanks has become one of Alaska’s most complicated environmental cleanup challenges. When Sulfolane, a chemical used in the making of gasoline, was discovered in nearby homeowners’ water wells near the refinery in late 2009, Flint Hills moved quickly to supply bottled drinking water to homeowners and has since installed home water treatment and filtration systems and even drilled a new water well for the City of North Pole. Eventually more than four hundred local property owners were affected by the Sulfolane, but about six hundred property owners are now receiving some form of alternative water or filtered water from Flint Hills, according to Alaska Department of Environmental Conservation (DEC) officials. Flint Hills spokesman Jeff Cook says: “Flint Hills continues to do monitoring, cleanup, and recovery according to our agreement in place with the DEC. Off-site we continue to do monitoring and provide service with alternative water systems to the impacted property owners.” However, there is still no agreement on a long-term plan to contain and clean up contamination off the site or how overall liability is to be apportioned between Flint Hills and the former owner of the refinery, Williams Companies. And as the lawyers wrangle over liability there is a lot of finger pointing. Meanwhile, the supply of bottled water and the other assistance is costing Flint Hills about $1.2 million a year, according to state officials familiar with the situation. Separately, a legal brief filed by the state Attorney General in 2014 said the operation of the water treatment

By Mike Bradner

A long-term cleanup plan between the state of Alaska and Flint Hills, which would include the off-site contamination, awaits an agreement on an acceptable level of pollution that might be allowed to remain, although at a level not harmful to human health. But there are sharp disagreements between the company and the state on what that level should be.

—Kristin Ryan Director, DEC Division of Spill Prevention and Response

pumps is costing Flint Hills $500,000 a year. Flint Hills would not comment on costs, due to litigation issues.

The Liability Bullet The contamination of soils and groundwater at the refinery site has gone on for years and each successive buyer of the refinery—it changed hands several times—has worked to dodge the liability bullet. None of the owners comes out looking good but Flint Hills is given credit for moving quickly to deal with the human health issue, with the supply of bottled water. The previous owners are Williams Companies, which sold the refinery to Flint Hills, and Mapco, which became part of Williams when it was purchased. At this point there is a project underway that is removing Sulfolane, a chemical, from groundwater on the refinery site itself, but the Sulfolane has meanwhile spread off the refinery site. So far there is no treatment project underway for that, according to Kristin Ryan, director of the DEC Division of Spill Prevention and Response. A long-term cleanup plan between the state of Alaska and Flint Hills, which would include the off-site contamination, awaits an agreement on an acceptable level of pollution that might be allowed to remain, although at a

level not harmful to human health. But there are sharp disagreements between the company and the state on what that level should be, Ryan says. Until the level is established a cleanup plan can’t be designed. Under any circumstances this is going to be a costly and long, drawn-out process for Flint Hills, the state, and property owners near the refinery with water wells contaminated with Sulfolane. Completely removing the pollution from the groundwater is likely impossible, so a total solution for the home owners and property owners appears to be an extension of the City of North Pole’s piped water system to the residents with affected wells. The cost for that has been estimated at $50 million, although an actual engineering study has not been done.

Tangled History Meanwhile, the liability disputes continue. Early on Flint Hills and Williams went to court against each other over the issue. Flints Hills filed a suit to force Williams to acknowledge legal responsibility for contamination that had spread off the refinery site under its ownership and before the plant was sold to Flint Hills. Williams responded that a $50 million insurance policy it purchased at

Alaska Business Monthly | May 2015 www.akbizmag.com

plan has been approved and provides clear direction about the costs to maintain it for a potential buyer. Off-site cleanup will not be the responsibility of a new buyer. Flint Hills and Williams may wind up with that liability. A major obstacle is that there are a lot of unknowns about the hazards of Sulfolane and to what degree it is really harmful to human health. Unlike benzene and other contaminates known at the refinery and that are known carcinogens, the health effects of Sulfolane on humans are unknown. At extreme high concentrations the chemical is toxic, Ryan says, but then most chemicals are toxic at very high dosages. Flint Hills arrived at its estimate of 350 parts per billion as acceptable on the basis of laboratory tests on rats based on short-term tests with relatively high exposures and extrapolated the results to human adults. However, there is no known research on long-term effects at low levels of exposure on humans, or rats for that matter, Ryan says. The state hopes that such research can get underway, she says, but in the meantime the DEC has erred on the cautious side because children are also involved and has proposed a limit of 14 parts per billion. Flint Hills disagrees with that, however. Unfortunately, there also isn’t a lot known about how Sulfolane naturally breaks down when it is below surface, although it is known that it breaks down when exposed to air, but that means the Sulfolane must first be brought to the

still appears to be moving when the groundwater moves, Ryan says. The contamination is also being detected as deep as three hundred feet in places, and the presence of permafrost in the area complicates knowing where the pollution plume is. “At this point the on-site situation appears to be stable, but we’re not sure about the off-site contamination. Flint Hills acknowledges this fact and has modeled the estimated plume migration through 2029,” Ryan says.

Liability Issues Unresolved The history of the spills at the refinery is tangled and does not reflect well on the companies involved. Earth Resources of Alaska, the original owner, constructed the North Pole refinery in 1976 and began operations in 1977. The refinery was purchased by Mapco in 1980 and operated by the company until 1998 when it was sold to Williams Alaska Petroleum Company, which owned and operated the plant until it was sold to Flint Hills in 2004. There were spills from refinery operations when Mapco owned and operated the plant, from leaking storage tanks, leaking sumps, inadequately constructed sumps, an overflow from the wastewater handling pond, and certain petroleum handling procedures. It is probable that spills occurred during Mapco’s ownership as the same infrastructure was being used. The 2014 state Attorney General’s complaint document notes that “Dur-

The history of the spills at the refinery is tangled and does not reflect well on the companies involved. taminants like benzene, but Flint Hills found the system could be upgraded to also remove Sulfolane, which was done. The treated water is removing the Sulfolane to the level requested by the DEC, which is 14 parts per billion. The treatment wells are dealing only with groundwater on the refinery site and not the contamination plume extending off the site. The long-term cleanup plan agreement is important but should not impair the ability of Flint Hills to sell the refinery property. The on-site cleanup www.akbizmag.com

surface. It is known it does not adhere to soil and is highly soluble in water, which means it will migrate as groundwater moves. That is how it moved off the refinery site. Benzene and other contaminates at the site do adhere to the soil which means the contaminated areas are more stable now that the water treatment system is in place. Meanwhile, Flint Hills has identified the farthest reach of the plume off the site, a point where no contamination shows up in test wells, but the plume

ing the first three years of [treatment] operation, enough petroleum products had been spilled or leaked and escaped to groundwater that a fire was triggered during excavation work in September 1980.” Additionally, the state Attorney General said in the complaint that “From 1977 to 1987 there were 92 documented petroleum spills or leaks that resulted in more than 160,000 gallons of petroleum materials being leaked or spilled at the site. These numbers do not accurately reflect the amounts actually May 2015 | Alaska Business Monthly

the time of the sale for Flint Hills to pay for any cleanup covered the liability. Flint Hills has spent the $50 million, and considerably more, it says. A state judge, however, invalidated Flint Hills’ suit on a technicality: the company had waited too long to sue and exceeded the statute of limitations. Into this dispute stepped the state Attorney General, then Michael Geraghty, with the state filing suit on March 6, 2014, to get a court-ordered apportionment of liability. Flint Hills may have waited too long to file its suit but there is no statute of limitations affecting a state action, state Department of Law officials said. By this time Flint Hills was also in disagreement over the cleanup standards with the DEC, which has regulatory jurisdiction over contaminated sites. The state was insisting on a cleanup of the Sulfolane contamination to a level of 14 parts per billion, which was based on a toxicity evaluation by the US Environmental Protection Agency (EPA). The company said that was an impossible standard to meet. Flint Hills, working with its consultants, recommended that the state use a standard of 350 parts per billion for groundwater, levels it felt were achievable in a cleanup. Meanwhile, Flint Hills is now operating five treatment wells at the refinery site, pumping the groundwater, treating it, and releasing the water to a storage pond. Mapco originally installed the system to treat water for other con-

spilled or leaked since, by June of 1998, Mapco had recovered over 276,000 gallons of product from recovery wells located on the refinery site.” Two types of contamination showed up early at the North Pole refinery that became a concern to the DEC. One was a plume that was a combination of benzene, toluene, ethyl benzene, and xylems. The second was a plume of other liquids, but both appear to have come from the same source. In August 1986, Mapco temporarily suspended its pumping operations for unknown reasons and later that year tests showed that groundwater below the plant site was contaminated with benzene. DEC had earlier concluded that pollution remained in the ground when Mapco suspended pumping. DEC intervened and concluded a Consent Decree with Mapco in late 1986 in which DEC promised to refrain from legal action if the company agreed to an action plan with deadlines that included restarting pumping on the refinery property and installing liquid or vapor sensing wells on the perimeter of the property.

In 1987 Mapco had the wells activated again with pumping and testing underway. In January 1988 an enhanced recovery system was installed in three wells, and by June 276,400 gallons of product had been recovered from the three wells, according to the Attorney General’s brief. During this same period the EPA conducted a federal Resource Conservation and Recovery Act inspection of the refinery. Concerns raised from the inspection resulted in EPA and Mapco entering into an EPA Consent Agreement in 1989 that required Mapco to undertake a series of corrective actions.

AG: Williams Intentionally Failed To Report In 1998 Williams Alaska Petroleum Company acquired the North Pole refinery along with all of the environmental remediation responsibilities of Mapco and in 2004 sold the refinery to Flint Hills. The state Attorney General was highly critical of Williams’ environmental compliance record during its ownership. In the 2014 complaint the Attor-

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ney General said, “Based on information and belief, WAPI [Williams Alaska Petroleum Inc.] intentionally failed to report or under-reported spills and leaks that occurred under its ownership and operation of the North Pole refinery. WAPI management has acknowledged these practices and has attributed them to, ‘fear of being disciplined or from fear of negatively impacting ‘the numbers.’” By this time Sulfolane had also been detected in the groundwater and Flint Hills agreed to take responsibility for the existing Sulfolane that was known and disclosed on April 1, 2004, when the property transferred. In June 2004 Flint Hills directed its consultant, Shannon & Wilson, to perform additional tests so that a better understanding could be gained of the subsurface contamination from past activities. In September 2004, Shannon & Wilson informed the company that there was a potential that contaminants may have been moved off-site by the groundwater, which is mobile. Later that month sampling from one well showed a presence of Sulfolane eleven times greater

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than levels detected in tests conducted at the same well in 2001. Prior to 2004 Sulfolane was not a regulated contaminant by DEC, but that changed in October 2004 when the chemical showed up in water wells. DEC advised Flint Hills that Sulfolane was to be regulated. Meanwhile, in January 2005 Shannon & Wilson advised Flint Hills that a second monitoring well showed Sulfolane contamination also at eleven times the levels detected in 2001. By June 2005, the consulting firm advised the company that the contamination “plume” appeared to be migrating to the northwest. The company recommended installation of three more wells on the property to serve as “sentries” in detecting movement of Sulfolane off-site. Flint Hills agreed to that and shortly after the installation one of the sentry wells tested positive for Sulfolane presence. In April 2006, Shannon & Wilson presented a proposal to Flint Hills to initiate a groundwater monitoring program and determine the source of the Sulfolane. The consultants advised the company that Sulfolane was highly soluble in groundwater and could be highly mobile with the flow of groundwater. The consultants also warned that there could be a source of Sulfolane providing continuous leakage to the groundwater and recommended installing additional monitoring wells along the boundary of the property to determine if the Sulfolane was migrating off-site.

sess the toxicity of the Sulfolane. Also that month Flint Hills began providing bottled water to local residents.

Bottom Line All of this is moving slowly toward resolution, but it will take time. The first issue to be resolved is the acceptable limit of Sulfolane in water, and state environmental and health officials will be reviewing recommendations of a team of experts this spring. If that is agreed on by Flint Hills, it will be a step forward.

Second, the extent of liability shared between Flint Hills and Williams must be settled. The state Department of Law would not comment on the case that was filed in 2014 other than it is “ongoing.” Meanwhile, property owners at North Pole must patiently wait. For the time being the bottled water service will continue. R Mike Bradner is publisher of the Alaska Legislative Digest.

Flint Hills Disagrees DEC agreed with the proposal but Flint Hills did not and after eighteen months hired another consultant, Barr Engineering, to take a fresh look. By August 2008, Barr advised Flint Hills that the Sulfolane had moved beyond the sentry wells and possibly off the property. Barr recommended more monitoring wells, a plan virtually identical to the plan originally put forth by Shannon & Wilson. In November 2009, Sulfolane was detected in the City of North Pole’s raw water supply and a private water well. This quickly brought other agencies into the picture, including the Alaska Department of Health and Social Services and the EPA. The state health department contacted the US Department of Health and Human Services’ Agency for Toxic Substances and Disease Registry to aswww.akbizmag.com

May 2015 | Alaska Business Monthly

TRANSPORTATION

Trucking Industry Roundup: Players, Trends, Issues By Judy Griffin

Photo courtesy of Weaver Bros., Inc.

Weaver Bros. moves oversize loads of empty storage tanks on the Dalton Highway.

arrying cargoes that meet the everyday needs of Alaska residents as well as to build large construction projects requires more than a casual road trip. Scheduling capacity, handling goods, and identifying the optimum mode and route rely on preparedness and careful assessment of the journey that lies ahead. The trucking industry has successfully embraced technology and implemented safety measures to improve the ride. As trucking entities look down the road for hazards, they recognize that lower oil prices will likely reduce freight volumes. They also see hardships if the stateâ&#x20AC;&#x2122;s highways donâ&#x20AC;&#x2122;t receive adequate maintenance. But the biggest and increasingly detrimental threat is the difficulty of placing a driver behind the wheel.

Consequence in Motion Aves Thompson, executive director of the Alaska Trucking Association (ATA), a trade association representing diverse trucking operations competing in Alas94

ka, presented figures on the economic impact of the industry during a press conference that preceded the March 2, 2015, public hearing by the Department of Interior on the proposed five-year offshore lease plan. According to Thompson, more than three thousand family-owned and corporate trucking businesses make up the Alaska industry, which pays more than $800 million in wages annually. Statistics compiled by the ATA and the national trade association American Trucking Associations indicate that Alaska trucking provided 14,430 jobs, employing one out of seventeen civilian workers in the state and providing an average salary of $54,662 in 2013. The mean average salary for truck drivers was $47,450.

Service Smorgasbord A highly competitive business, the Alaska trucking industry has attracted players of all sizes. Shippers have bountiful options for consolidated or unconsolidated loads, moving produce, building products, and

all manner of wares to, within, and from Alaska. The providers compete through responsive customer service that offers specialized equipment, easy ordering and tracking, and pricing alternatives. Among the major players are two businesses that belong to vertically integrated firms whose sister companies complement the trucking capabilities. In mid-2013, Saltchuk Resources, a Seattle-based family of diversified transportation and petroleum distribution companies, purchased Carlile Transportation Systems of Anchorage. Founded in 1980, Carlile has 350 tractors, seven hundred employees, and ten terminals, including four outside of Alaska. Other Saltchuk companies include Totem Ocean Trailer Express, Delta Western, Northern Air Cargo, Inlet Petroleum, and Cook Inlet Tug & Barge. One Carlile Transportation asset differentiating the trucking company is an Alaska-dedicated lowboy trailer designed for moving oversized items and

Alaska Business Monthly | May 2015 www.akbizmag.com

Photo courtesy of Carlile Transportation

One of five new, fifty-three-foot, five-axle tankers recently purchased by Carlile as part of a major equipment investment.

rated for more than one hundred tons. According to President Terry Howard, the company hauled a configuration of trailers more than two hundred feet long utilizing this lowboy from Anchorage to Prudhoe Bay in early 2015. Also expanding its capabilities as an integrated provider of truck, marine, and air services in 2013, Lynden, Inc. acquired Northland Service, a marine transport business serving Seattle, Washington; Alaska; and Hawaii. Lynden is the parent company of Lynden Transport, which has provided trucking services in the state since 1954 and operates the largest terminal network in Alaska. Other Lynden companies include Alaska Marine Lines, Alaska West Express, Bering Marine Corporation, and Lynden Air Cargo. Among major freight consolidators are Span Alaska Transportation, Inc., Pacific Alaska Freightways, and American Fast Freight, Inc. These firms specialize in receiving truckload and less than truckload cargoes. Most of the volume moving to Alaska destinations originates at their Washington terminals and is shipped to Alaska aboard water carriers. Freight is received by trucks from containerships at the Port of Anchorage for distribution to Interior and Southcentral Alaska. Barge lines also service Southeast, Western, and other Southcentral communities in Alaska. Chuck Onstott, vice president of operations for Span Alaska, says consolidating relies on the optimum freight mix. At the company’s forty-five-thousandsquare-foot facility in Auburn, Washington, loads are assembled to cube out—fill the available space—while also www.akbizmag.com

maximizing weight. “By direct loading the freights according to their final destinations in Alaska, we are able to handle them less,” he explains. Span Alaska has been moving goods to Alaska since 1978 and operates 250 pieces of rolling stock. Established in 1961, Pacific Alaska Freightways has 120 employees system-wide and facilities in Anchorage, Fairbanks, Kodiak, Kenai, and Fife, Washington. The company’s truckload and less than truckload transportation includes moving packages traveling by ground for couriers FedEx and UPS. American Fast Freight, headquartered in Fife, Washington, where the company operates a ninety-five-thousand-square-foot terminal, has been competing in the Alaska transportation market for more than twenty-five years. Alaska terminals are operated in Anchorage, Fairbanks, Kenai, Soldotna, and Kodiak. At its Fife and Anchorage terminals, American Fast Freight “had refrigerated facilities built specifically so that freight never leaves a temperaturecontrolled environment,” explains Jake Nyman, marketing services manager. The facility designs permit refrigerated trailers to be backed up to doors that access temperature-controlled warehouse space, enabling the company to avoid removing freight from temperature-controlled areas when loading chilled items. In the Alaska transportation industry, most freight moves northbound into the state, with containers and trailers typically returning to Washington terminals empty. According to Wes Renfrew, Alaska operations manager of Pacific Alaska Freightways, only about 10 percent of capacity is filled on the southbound journeys. WaterMay 2015 | Alaska Business Monthly

Oilfield equipment is loaded from a Weaver Bros. ninetyton bed truck onto a barge at Nikiski for transportation across Cook Inlet. Photo courtesy of Weaver Bros., Inc.

borne transit meets the needs of most shippers between Alaska and the Lower 48. A wide variety of trucking specialties also serve Alaska. They operate equipment of all sizes, from vans to tractors hauling oversized loads. Based in Anchorage and founded in 1946, the company that today operates as Weaver Bros., Inc., owns about 130 trucks and other specialized equipment and has roughly 150 employees. A large part of the carrier’s business is hauling petroleum and chemicals in tankers. “People always want to see fewer trucks on the road,” says Jimmy C. Doyle, vice president of Weaver Bros., “but in one day some gas stations may run out of fuel without a delivery. We service some stations twice a day.” According to Doyle, for the recent three years his company has seen strong demand for winch trucks to move and support drilling rigs on the Kenai Peninsula.

Expectations About Economic Trends Because lower oil prices are expected to reduce investment by the oil and gas industry and the state is cutting spending, trucking companies are likely to see de96

clining volumes. Possible reductions of the military presence in the state is another threat to transportation demand. Doyle points out that loss of oil and gas jobs results in fewer people living here. Freight moving to the state shrinks, requiring less demand for water carrier movements. “Every piece of the transportation chain would be negatively affected,” he adds. Doyle says that one long-term strategy Weaver follows to be positioned to better weather a downturn has been conservative investments in equipment. He explains that the trucking business is capital intense and a lot of companies buy fifty trucks a year with leasing or financing. “We have stayed out of financing and heavy debt,” Doyle notes. “The outlook for 2015 and beyond is a concern,” says Pacific Alaska Freightways’ Renfrew. “There may be a hesitancy to plan new projects.” Renfrew says he feels that as volumes decline his company will benefit from having achieved greater diversification into retail, government agencies, oilfield support, and fishing. “We’ll have to see what projects move along. The Kenai Peninsula will likely

stay strong, but I’m not sure about the North Slope activity,” Renfrew adds. Bill Meszaros, vice president of sales and marketing for Span Alaska, says that the good reputation enjoyed by Span Alaska will serve his company well as competition heats up. He explains that projects already funded will continue to feed freight demand. “We are cautiously optimistic about 2016,” Meszaros adds. Carlile’s Howard says 2015 is expected to be similar to 2014, but 2016 is more uncertain because of hesitancy in the oil and gas industry to plan longrange spending. “Companies can’t turn the spigot back on that fast,” he notes. According to Howard, Carlile expects to continue upgrading its fleet. “In fact, we expect to spend more on equipment, not cut back,” he adds. Jim Scherieble, general manager for Alaska with Kenworth Alaska, says truck sales last year created one of the best years ever seen by the company. “We’re still getting calls, but not the big orders like last year,” he says.

Keys to Operating Industry leaders cite two trends as

Alaska Business Monthly | May 2015 www.akbizmag.com

shaping changes in the way business is conducted for the trucking industry: safety and technology. According to Doyle, the industry has been under scrutiny for trucking accidents in the last fifteen years and lessons have been learned. “The absence of accidents benefits the bottom line,” he says. “We’ve found that when making operating decisions based on safety and welfare of employees, we’re going to be better in the long run.” The relationships with major oil and gas companies that have elevated safety as a priority also brought the importance of safety to light for many trucking companies. Carlile, a major force in the North Slope freight sector, provides specialized safety training for its haul road drivers. Following a roughly three-week course, drivers ride along with other drivers on the route, then graduate to driving with another rig trailing and observing, before making the journey solo. As an additional safety measure for trucks serving the North Slope, Carlile has implemented controls that limit travel speeds. Technology has proven a real boon to the trucking industry. “We began using a complete information system in

a software program in 2009,” says Span Alaska’s Onstott. The system provides tracing and tracking capabilities. In addition to the GPS that enable companies to identify locations of their assets, the technology tracks details such as idle time, mileage, and other driver-influenced performance that can be evaluated to improve operating efficiencies. “The visibility to clients has improved,” says Renfrew of Pacific Alaska Freightways. “They see the documents live, as items are received and scanned throughout the move.” Carlile expected to have completed installation of PeopleNet, a fleet management and driver communications tool, this March at a cost of about $1 million for the 350 company-owned tractors. Additional costs are incurred for training drivers on use of the system. “Technology provides more timely information and a better understanding of our costs that allows us to continue to be competitive in the Alaska market,” Howard says. Howard explains that the company opted for the satellite-supported communication to ensure customers could receive real-time updates on the loca-

tion of shipments without the gaps that would result from a cellular-supported version. In addition to collecting data on fuel use, travel speed, and even whether a seatbelt is used, the devices create electronic driver logs, which will prepare Carlile to meet a federal mandate for that practice that is expected to be codified later this year and enforced in late 2017. Doyle says Weaver Bros. has been integrating camera technology that captures video of the driver going down the road. “Exposure for us is huge. Cameras help provide defense against inappropriate insurance claims,” he notes.

Legislative Priorities Trucking industry representatives traveled to Juneau in early February to advance the 2015 legislative priorities identified by the ATA. Thompson says that the organization reduced the number of issues to three this year from the typical eight or more issues: invest in the Dalton Highway, support training driver/technician efforts, and invest in the National Highway System. Drivers who have traveled the Dalton Highway (haul road) testified during

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hearings and articulated concerns about the need to invest in the infrastructure through maintenance, enforcement, and data gathering. The efforts would help to provide a safe and reliable highway connection capable of supporting oil and gas industry exploration and production. The industry representatives pointed out the benefits of compiling survey data, crash statistics, and violations. Examples of appropriate enforcement presence offered by ATA presenters are keeping the Fox weigh station open 24 hours, having a marked vehicle on the road, and conducting inspections. “Enforcement becomes a competitive issue,” explains Thompson. Although large and medium-sized carriers that own terminals and trucks can’t afford to risk a lack of maintenance and not following rules, some small companies and individuals could let insurance lapse. “Enforcement allows the industry to compete on service and price, not on cutting corners,” says Thompson. “It’s a matter of workplace safety. The roads are where our employees go to work.” ATA also requested improvements in the training delivery systems funded by the state, saying that vocational schools such as AVTEC in Seward, Yuut Elitnaurviat in Bethel, and the Community & Technical College in the University of Alaska Anchorage need a better focus to effectively address truck driving and equipment maintenance training. One suggestion is that funding for appropriate training could be better leveraged by supporting delivery by the private sector. Scherieble of Kenworth Alaska says his company has donated engines and parts to advance the training courses, but he hasn’t seen successful development of the skills needed. “In nineteen years, I’ve seen two technicians from AVTEC and one from UAA,” says Scherieble. His company is currently advertising in the Lower 48 to attract qualified diesel mechanics. Current vacancies include four positions in Fairbanks and two in Anchorage. “We suggested to the Legislature that they reevaluate existing training sources and recognize the good ones and feed them,” says Thompson. The third legislative priority is advancing projects on the National Highway System that are in final design and ready to advance. “We’re asking that as federal dollars dwindle, the National Highway System 98

trust fund money be used on the highway itself, not for scenic overlooks and the like,” explains Thompson. ATA identified its top ten projects, chosen for importance to the trucking industry and advancement of the Alaska LNG Project.

Workforce Woes There’s no disputing within the trucking industry what concern most seriously threatens future prospects. That’s a driver shortage. “It’s been a problem in the Lower 48 for fifteen to twenty years,” says Doyle of Weaver Bros. “Now we’re experiencing a lower supply of drivers compared to demand.” The American Trucking Associations reports that the trucking industry is short about 35,000 truck drivers, and the shortfall could grow to around 240,000 drivers by 2020 if not addressed. The problem has increased cyclically when construction and factory jobs have become more abundant and pulled drivers from life on the road. Aggravated by regulatory and demographic changes, however, the driver shortage has become a more serious threat to viability of the trucking industry. Federal regulations enacted in 2013 limit the hours truckers can drive and require more breaks. A long-distance haul now keeps drivers away from home longer with no additional income for the time required. At the same time that recruiting has become more challenging the workforce is expected to shrink because of the heavy concentration of older drivers. “There’s a graying of the workforce,” says ATA’s Thompson. “A large percentage of drivers are within five years of retirement age, and hundreds of years of experience will soon be retiring.” Construction and other trades have voiced concern about the ability to attract today’s youth to careers in those industries. But trucking is further handicapped because the holder of a commercial driver license (CDL) must be at least twenty-one years of age to haul interstate commerce. An intrastate CDL at age nineteen only qualifies a driver to haul limited cargoes such as gravel, dirt, and some local freight. The trucking industry doesn’t hire drivers younger than twenty-one because of such restrictions. Additionally insurance companies generally won’t insure drivers until age twenty-three. Trucking companies

must be self-insured to employ younger drivers; therefore, ages twenty-three to twenty-five are the more realistic ages of entry-level drivers. “Every other industry has the opportunity to capture young persons between eighteen and twenty-one and put them on a career path,” says Joey Crum, president and CEO of Northern Industrial Training LLC, which offers courses certified by the Professional Truck Driver Institute. Because of federal regulations, the trucking industry can’t draw from that pool. “The industry is truly recruiting from a secondary pool,” he adds. It’s an unfortunate fact that many individuals during those years acquire records for drug or violent act offenses or for driving infractions that preclude eligibility for a CDL. “If individuals had started on CDL education, at least we could give them information about the consequences of those actions,” says Crum. He explains that the industry has proposed creation of a graduated license that would permit younger drivers with CDLs to operate smaller equipment such as vans. To attract drivers, Alaska trucking companies have increased salaries and improved benefits. They are recruiting from within and training employees who work on loading docks and in warehouses to prepare them for their CDLs and provide the experience of working with other drivers after receiving the Commercial Learners Permit. Looking far down the pike, Carlile has been advocating for transportation industry careers by offering facility tours to elementary school students and sending truck drivers to address middle and high school students. According to Howard, the program has been a grassroots effort, with employees volunteering time to participate. Nance Larsen, director of Communications and Marketing for Carlile, explains that a pilot program at Begich Middle School in February involved students filling out bills of lading and wrapping pallets. “The students are finding out how important transportation is to Alaska,” she says. “We’re excited to be able to tell that story.” R Judy Griffin, a former editor of Alaska Business Monthly, is a freelance writer in Anchorage.

Alaska Business Monthly | May 2015 www.akbizmag.com

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MINING

Alaska Mining Development in 2015 By Tom Anderson

s Alaskaâ&#x20AC;&#x2122;s fiscal horizon appears ominously inclement because of waning oil prices on a global scale, policymakers, entrepreneurs, and communities across the state are welcoming proverbial clear skies and sunshine when it comes to mining development. The spectrum of resources Alaskaâ&#x20AC;&#x2122;s economy is dependent on includes oil, gas, fisheries, timber, tourism, and a sprinkling of other developmental opportunities. Mining, however, may just be the most robust and expansive of the collective. The success of mining in 2015 and beyond will equate to continued employment and investment in the state, with development at center stage.

Advanced Exploration vs. Producing Mines The Alaska Miners Association is one of several trade associations and advocacy nonprofit organizations in the state representing mineral interests. The Alaska Miners Association released The Economic Benefits of Alaskaâ&#x20AC;&#x2122;s Mining Industry report in 2014 delineating the mining exploration timeline and overviewing participants. The McDowell Group prepares mining industry economic impact reports for the association annually. The genesis and process of mining is fairly straightforward: mineral potential is determined, initial prospecting occurs, a claim is staked, drilling begins, advanced exploration with economic feasibility and economic studies to accompany permitting folTunnel at Hecla Greens Creek Mine in Southeast Alaska. Photo courtesy of Hecla

100

Alaska Business Monthly | May 2015 www.akbizmag.com

lows, then financing for the endeavor, and ultimately the development and production, shipping, waste discard, and cycle of mining ensues. Most Alaskans may not realize there are only six mines under full operation and production in the state in 2015. These mines are Fort Knox (gold) and Pogo (gold) mines near Fairbanks, Usibelli (coal) in Healy, Red Dog (zinc, lead, silver) north of Kotzebue, and the Greens Creek (zinc, lead, silver, gold) and Kensington (gold) mines in Southeast Alaska. Advanced exploration projects that are currently going through economic impact and analysis studies, permitting, engineering, and feasibility studies include Wishbone Hill (coal), Upper Kobuk (gold, silver, copper, zinc), Pebble (copper, gold, molybdenum), Niblack (copper, gold, silver, zinc), Livengood (gold), Donlin Gold (gold), Chuitna (coal), and Bokan-Dotson-Ridge (rare earth elements). While some mining companies keep development project updates and information close to the vest, others are proactive in releasing details on their growth in 2015. To that end, there are projects this year that are worth noting from the mining industry and from which Alaska will share in the success of extraction, delivery, and sales at market.

Greens Creek Mine Expansion Eighteen miles from Juneau, on the north end of Admiralty Island, Hecla Greens Creek Mining Company and its 415 employees operate one of the ten largest producing silver mines in the world. Hecla’s corporate biography delineates it purchased just under a 30 percent interest in the massive silver-gold-zinc-lead Greens Creek Mine in 1987. Twenty-one years later Hecla acquired the remainder of the mine from Rio Tinto, which held just over 70 percent interest in Greens Creek, officially owning 100 percent of the mine thereafter. By the next year in 2009 Hecla reported a company record silver production of 10.9 million ounces and cash flow of $115 million. Fast-forward to 2015 and the company’s mining efforts haven’t slowed. Construction is now starting for the expansion of the mine’s tailings storage facility that will give it capacity through 2026, which is projected to satisfy current reserves and possible future expansion. Capital expenditures will exwww.akbizmag.com

Red Dog delivery in Western Alaska. Photo by Lorry Schuerch

ceed $44 million over the next three years for the project, from 2015 to 2017. As for actual mining and extraction, this year the efforts are full speed ahead. “We’ll continue to spend on underground exploration in 2015 to continue to add to our reserve base. Historically we have always had a ten-year mine life, but over time we have been able to use our exploration success to replace the reserves and hope to continue that success in the future,” says Mike Satre, a geologist with the company since 1999 and now serving as the Government and Community Relations manager. Greens Creek is an underground mine and produces 2,100 to 2,300 tons of ore per day. The mine’s primary extraction methods are cut and fill and longhole stoping. Prior to 2009 Greens Creek recognized its existing tailings storage facility was getting close to full, but a new facility can’t be opened with ease. An EIS (Environmental Impact Statement) is required, followed by federal, state, and local permitting before commencement of actual construction. The EIS and permitting process took almost six years. Meanwhile the mine is now yielding 800,000 plus tons of ore per year, with proven and probable reserves of 12 ounces per ton of silver, 8.3 percent zinc, 3.1 percent lead, and 0.10 ounces of gold per ton. Satre notes the company’s absolute focus this year is on the construction of its tailings storage facility, which encompasses approximately eighteen acres, and without which, the mine would be unable to process ore. Tailings is the material left over after the economic minerals have been extracted from the ore, and at

Greens Creek approximately 50 percent to 60 percent of the tailings are placed back underground while the remainder must be placed in the storage facility. Greens Creek issues the largest payroll for the private sector in Southeast Alaska. Its operations represent one of the signature mine producers in the state, and this year’s production should be similar to last year’s (2014) that included total production of 7.8 million ounces of silver, 58,000 ounces of gold, 59,000 tons of zinc, and 20,000 tons of lead.

The Lure of Gold—Donlin Donlin Gold is owned by NOVAGOLD Resources, a precious metals exploration and development company, and Barrick Gold Corporation, which operates twenty-five mines on five continents. The company is in the process of building a gold mine project in the Yukon Kuskokwim region northeast of Bethel. The 2015 mining year shows momentum for Donlin. Kurt Parkan, External Affairs manager, states that Donlin Gold is in the middle of the NEPA (EIS) process in the effort to obtain approximately one hundred permits needed to open the mine. The levels and layers to achieve actual development are complex. The gauntlet of bureaucracy includes the US Army Corps of Engineers, which is the lead federal agency for the EIS, and includes cooperating agencies such as the US Fish and Wildlife Service, Bureau of Land Management, Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, State of Alaska, Alaska Native regional corporation May 2015 | Alaska Business Monthly

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Tunnel at Niblack, Prince of Whales Island in Southeast Alaska. Photo courtesy of Heatherdale

Calista Corporation, and The Kuskokwim Corporation representing several Alaska Native villages in the region. “The EIS process started in 2012,” says Parkan. “The draft EIS is expected to be released for public review towards the end of 2015. After the public comment period is over, it will take about an additional year or so to finalize the EIS.” Parkan says Donlin Gold continues to do a considerable amount of community engagement in the region to share information about the project with the residents of the Yukon-Kuskokwim region. The updated employment expectation is now at 600 to 1,200 employees during production. Per a project presentation to the Alaska Support Industry Alliance, the mineral resources are on lands owned by Calista Corporation and The Kuskokwim Corporation. The project has been ongoing since 1995 with 2015 marking the 20th year of studies. It is estimated there are 33.9 million ounces of gold, and the open-pit mine’s life is twentyseven years. Milling will be approximately 59,000 tons per day with a fulllined tailing storage facility. Equipment will include sixty-nine haul trucks and electric shovels. One aspect of the development of the mine is the requirement for an expected average load of 157 megawatts, and to provide that level of power to operate the mine at peak capacity, a fourteeninch, 312-mile underground pipeline to transport natural gas from Cook Inlet to the mine is under consideration. One alternative is to barge fuel from Bethel. 102

Parkan says the company has looked at wind turbines, tidal power, and diesel power plants, as well as peat applications and nuclear alternatives. “They all had disadvantages,” he adds. “The most feasible is the natural gas pipeline to Cook Inlet. It will cost $1 billion and take three years to construct.” Parkan says ultimately the temporary roads for construction will be removed, the land reclaimed, and no plans are currently being pursued to connect to the intertie because it’s cost prohibitive. At a production expectation of 1.5 million ounces annually for the first five years, and 1.1 million ounces, or approximately 40 tons of gold, during the remaining years of operation, Donlin Gold equates the development forthcoming to a huge boost of economy. From jobs to commerce, regional and statewide benefits are expected to be significant.

Niblack—Mineral Abundance An impressive advanced exploration stage project on the horizon in Southeast Alaska is Niblack. Heatherdale Resources Ltd. is a mineral exploration and development company focused on advancing the Niblack copper-gold-zinc-silver Project. Heatherdale holds 100 percent interest in the advanced exploration stage of the proposed mine, consisting of 6,200 acres of federal and state mineral claims, 250 acres of patented lands, and related mineral exploration permits, equipment, and infrastructure on Prince of Wales Island, twenty-seven miles southwest of Ketchikan in Southeast Alaska.

Six volcanogenic massive sulphide deposits are known to occur within the Niblack mineral claims and there are significant mineral resources outlined in two of the deposits with excellent potential to add to the resources and make new discoveries. On-site infrastructure includes 3,300 feet of underground development, a water treatment plant and discharge system, and a dock and barge camp as well as 1.5 miles of road. Plans this year include exploring investment opportunities to take the Niblack Project forward into the pre-feasibility, permitting, and construction stages. To those ends, two MOUs (memorandums of understanding) have been signed in anticipation of progress. Since the 1990s and the decline of the timber industry in Southeast Alaska, a downturn in employment, school enrollment, and population as a whole has negatively impacted the region. Ketchikan Gateway Borough Manager Dan Bockhorst recalls Ketchikan losing five hundred well-paying jobs when the Ketchikan Pulp Mill shut down in 1997. Bockhorst refers to the Borough’s MOU with Niblack and embraces the potential for the proposed Gravina Island Industrial Complex to be built on the Ketchikan International Airport Reserve. The complex will include a milling facility able to handle up to 2,000 tons of mill feed per day from the mine and room for as much as 15 million tons of tailings. Bockhorst references the 1990s and economic downturn in the region, noting that there is strong support from his borough for the project. The community “would welcome the opportunity to fill many of the 638 desks in our schools that were left empty in large measure by the downturn of the timber industry in the 1990s,” he says. He adds that the 32.25 acres property “is an alreadyestablished industrial site that provides excellent access to clean hydroelectric power and a local workforce.” The residents on Prince of Wales Island will also benefit from not only the mine, but in concert with Ketchikan and its proposed development post-extraction of the ore. POWTEC Holding Company is managed by Bill Cole, president and visionary who sees great potential in job opportunities with Niblack Mine. The company is owned by two tribes and within Sealaska’s Native region. Craig Tribal Associa-

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tion and the Organized Village of Kasaan tribe equally own the company. When the mine comes online, POWTEC will provide management, mining logistics, and camp support services like food service, housekeeping, and maintenance. Cole adds that with the company’s headquarters on the island, and local hire predominant, the benefits for the tribes and communities on Prince Wales and in the Ketchikan Borough are profound. “Our workforce will be 100 percent Alaskan for this project when it begins, with over 90 percent of our employees from Prince of Wales Island and the remainder from within the Borough. Local hire matters to us, and Alaska and our region will benefit from the opening of Niblack,” says Cole. The second MOU is with AIDEA (Alaska Industrial Development and Export Authority) “to investigate potential AIDEA support for processing, port, and tailings storage facilities at the GIIC [Gravina Island Industrial Complex] and Niblack site.” Heatherdale notes that Senate Bill 99, passed by the Alaska State Legislature in 2014 and signed into law on June 16, 2014, allows AIDEA “to issue bonds to finance up to of the $125 million of infrastructure and construction costs, including a mineral processing mill and associated dock, loading and related facilities at Gravina Island Industrial Complex near Ketchikan, as well as infrastructure at the project site on Prince of Wales Island.”

Ucore—Rare Earth Elements Ucore Rare Metals’ Bokan-Dotson Ridge project is also part of this AIDEA financing effort. The Bokan Mountain development is located on the southern end of Prince of Wales Island and covers thirty square miles. The property is abundant with rare earth elements (REE). The prospective project includes access to Dysprosium, which is used to make laser materials and commercial lighting; Terbium, which is used in materials for applications like crystal stabilizers for fuel cells; and Yttrium, which is used as a doping agent with other compounds to make the red color in a television picture tube or as a metal on electrodes for high-performance spark plugs, among other uses. Approximately 40 percent of the REEs at Bokan are considered heavy rare earth elements. 104

Photo courtesy of Heatherdale

Exploration phase inside the Niblack tunnel, April 2010.

Ken Collison, chief operating officer for Ucore, notes that AIDEA could give up to $145 million for surface infrastructure costs like the mine’s mill building, camp, and support for the development. In 2015 the feasibility study will start and take approximately one year to complete. The company is also submitting its plan of operation to the US Forest Service, which activates the permitting process with the various federal and state bureaucratic levels. Once permitting is complete, the construction process is initiated and AIDEA joins the process. Collison, who came to Alaska with the Kensington Mine project in 1996 as the vice president for Alaska and worked as the manager for the Village Safe Water Program under the Alaska Department of Environmental Conservation, says construction will take around a year and half to complete the mine. Collison denotes a unique aspect of the Bokan project’s process in that no tailings will need to be discarded outside of the mine because they use a process that allows the excess to be returned underground. Also, 2015 brings rights obtained by the company to new molecular recognition technology allowing for separation of the sixteen REEs, so recovery elevates to 99.9 percent in purity. Collison says that the company deems this important because it’s considered green chemistry, on-site, environmentally compatible, and starkly different from the processes in

Malaysia and China that often harm the environment. Other companies will also be able to access the new technology in the region, and local hire and training will be two of many benefits as a result.

Coal and Conscience— Usibelli’s Legacy Considered by many the most famous mine in Alaska, the Usibelli Coal Mine in Healy is approximately one hundred miles from Fairbanks. Still a family-owned fourth generation business, the company’s mantra is being a “model of modern mining technology.” The mining company was founded by Emil Usibelli in 1943. Usibelli came to Alaska in 1935 and worked as an underground miner in Palmer, initially at the Evan Jones Mine. He would later work in an area known as Sultrana in Healy; during World War II he was retained to explore for coal in the area for the US Army and later secured a license to mine and would ultimately deliver, through a one-year contract with Ladd Army Air Field (now Fort Wainwright) in Fairbanks, ten thousand tons of coal. The company blossomed, and by 1954 Usibelli was contracting for commercial sales to Fairbanks utilities. Usibelli is a surface mine and has no underground operations. This year, Usibelli expects to have 1.4 million tons of coal from production. Its average annual productivity between 2009 and 2013 was

Alaska Business Monthly | May 2015 www.akbizmag.com

1.96 million tons. Current customers are Fort Wainwright (operated by Doyon), Eielson Air Force Base, Clear Air Force Station, the University of Alaska Fairbanks campus, Aurora Energy LLC (a wholesaler to Golden Valley Electric Association (GVEA)), and Healy Plant No. 1. This year also marks the launch of the GVEA Healy No. 2 Power Plant, formerly known as the Healy Clean Coal Power Project, also supporting the Railbelt power grid. Healy #1 and #2 plants are owned by GVEA. It’s anticipated Healy #2 will start burning coal in late summer of 2015. Thereafter a slow build up to its full potential will occur, with consumption between 300,000 and 350,000 tons of coal per year. Fifty megawatts is the expected electricity generation of the plant (compared to Healy #1 at twenty-five megawatts). Per a McDowell Group January 2015 report, Usibelli coal accounted for 29 percent of GVEA’s power supply, the remainder being oil, wind, hydro, and electricity. The report, based on earlier research, concludes “the absence of coal, holding demand constant, could increase energy costs an estimated $200 million annually.” Usibelli’s Vice President of Customer

Relations Bill Brophy says Usibelli has 115 employees. Impressively, the average time of service is twelve years; the average age is forty-five years old and of the UCM staff, 36 percent are second, third, or fourth generation Alaskan miners. Emil Usibelli’s son Joe Usibelli led the company from 1964 to 1987 and is currently the chairman of the board. Joe Usibelli Jr. has been in charge and leading the company since 1987 and still resides and works in Healy with his wife and daughter. As of this year, Usibelli remains the only operating coal mine in Alaska. Usibelli Coal mine also has Wishbone Hill as a mining unit, with secured permits and leases in progress, and anticipates beginning development in coming years. Approximately three hundred exploration holes have been drilled since the early 1980s per Usibelli’s website, along with thirty years of environmental baseline data, and it is considered a relatively small deposit of coal at just 14 million tons compared to the 500 million tons identified at Healy. Usibelli’s background information highlights that “Wishbone Hill coal is particularly valuable because it is the only bituminous coal deposit on the road sys-

tem.” Bituminous coal is primarily used for generating electricity and has moisture content of less than 20 percent.

Bright Mining Future Alaska’s annual state budget, fiscal dimensions, and municipal infrastructures have all been built on the basis of a thriving resource development market. Beyond the tiers of analysis and permitting required, once the six producing mines and the scattered advanced exploration projects pass various government hurdles, speculation remains that the next five years could be huge for expansive mineral industry developments statewide. “Even during a challenging fiscal time like the state is facing this year, our resource industry is working diligently to develop and maintain business which adds jobs and prosperity to our economy,” adds Brophy. “In Usibelli’s case, we’re proud of our long standing heritage in Alaska and progress in 2015 continues that legacy.” R Tom Anderson writes from across Alaska.

Fort Knox Stewardship in Action

The way we see things, stewardship extends well beyond protecting land and water.

It’s also about taking care of our people. That’s why we invest in advanced training, safety, and modern mining technology. The return? We have the best people in the industry working for us. Fort Knox places high value in community stewardship. We buy locally, hire locally and we’re active in charitable giving, and our people volunteer in many civic and community groups. And, as far as protecting the land and water, our record stands on its own. At Fort Knox, responsible stewardship is part of how we do business every day.

Fairbanks Gold Mining Inc. A Kinross company

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RIGHT MOVES Brice Environmental Services

Compiled by Russ Slaten investigations, and remedial actions; he also has experience with federal, state, and local agency rules and regulations including ADEC and EPA.

Ukpeaġvik Iñupiat Corporation

Johnston

Sagiao

Hickey

Mann

A team of professionals joined Brice Environmental Services Corporation, subsidiary of Calista Corporation, in its new Anchorage office. Patricia Johnston, Director of Administration, has business operations experience that spans from working as a control accountant for a major oil company for seventeen years; eight years as VP of finance and administration for a large Alaska program management firm; and six years with an aerospace corporation. Ieti Sagiao, Contracts Manager, has over twentyeight years working in the public, private, and federal sectors managing over $500 million in federal and commercial contracts, having served up to nine Alaska Native corporation subsidiaries simultaneously; eight years as a senior contracts administrator with CH2M HILL; contract administrator with Earth Tech in Honolulu; and nineteen years as a warranted contracting specialist in the US Air Force. Dylan Hickey, Geospatial Specialist, has six years’ experience as a surveyor, GIS specialist, and CAD operator. He has served the Alaska Department of Transportation and Public Facilities and most recently an 8(a) native corporation. Scotty Mann, Geologist, PG, CPG, is a Hydrogeologist with more than nine years’ experience supporting complex site characterizations,

Karlin Itchoak has been named new Chief Administrative and Legal Officer for Ukpeaġvik Iñupiat Corporation. Itchoak’s background includes working as the Judicial Law Clerk for the Chief Justice of the Alaska Supreme Court and the Deputy Itchoak Magistrate for the Alaska Court System. He served as a Tribal Law Specialist for Kawerak, Inc. and as a Government Specialist for the Department of Commerce. Most recently, Itchoak was the Alaska Arctic Rural and Indigenous Program Director for the Institute of the North. Itchoak received a Juris Doctorate from Gonzaga Law School in 2003.

North Star Group

Heather Arnett and Mercedes Theuer Birdsall recently joined the North Star Group (NSG). Arnett is the Principal Advisor for Advocacy, based in Anchorage. Arnett has facilitated successful advocacy campaigns at the national, regional, and state level. She earned an MPA from the University of Alaska Anchorage. Birdsall is the External Affairs Associate. Birdsall worked in US Senator Mark Begich’s DC office for nearly three years. Birdsall earned a BA in Political Science and Economics from Seattle University and an MPP from American University.

US Army Corps of Engineers

The US Army Corps of Engineers–Alaska District selected Larry Phyfe, PMP, as the new chief of its Environmental and Special Projects Branch. Phyfe has served as the chief of the Military Branch’s Foreign Military Sales Section from 2010 to 2014.

Phyfe

Solstice Advertising

Elyse Delaney joined Solstice Advertising as a Copywriter. Delaney joins Solstice with a broad range of disciplines including social media, blogging, and account management, garnered from her previous work at a local agency. Delaney holds a BA in Advertising from the University of Idaho.

Alaska Association of Realtors, Inc.

Bob Manwaring has been hired as the new CEO of the Alaska Association of Realtors, Inc. Manwaring has served the Alaska real estate community for the last eighteen years, first as Customer Relations Liaison with Alaska Multiple Listing Service, Inc. and most recently as a Business Manwaring Development Officer with Stewart Title of Alaska.

PDC, Inc. Engineers

PDC, Inc. Engineers announces promotions and new additions to its leadership group in Anchorage and an expanded staff in Fairbanks. Robert Posma, PE, and Patrick Reinhard, PE, have advanced to become Principals of the firm. Posma has thirty years with PDC, is a Principal Electrical Engineer, and works from the firm’s Anchorage office. He is also a registered fire protection engineer. Reinhard has twenty-seven years with the firm and is the Principal Structural Engineer based out of PDC’s Fairbanks office. Amy Mestas, PE, has advanced to the position of Senior Associate working with PDC’s Anchorage structural group. Mestas has ten years of structural experience, all with PDC. New additions to the leadership team include Heather Estabrook, PE, and Lori Kropidlowski, CPSM, both working from the firm’s Anchorage office. Estabrook is a registered civil engineer with over fourteen years of experience. She is also a registered environmental engineer. Kropidlowski is the firm’s Marketing Director and has more than thirty years of experience marketing professional A/E/C services in Alaska. PDC, Inc. Engineers has also expanded staff in their Fairbanks office. Staff joining the mechanical department includes Mark Frame, PE, and Jason

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RIGHT MOVES

Compiled by Russ Slaten Livingston Slone, Inc.

Colquhoun, PE, LEED AP. The electrical department adds Michael Smith, EIT, while the environmental department added Erica Betts. The structural department welcomes Natasha Kuchitskaya, EIT, and the admin department welcomes Malia Shoults.

AARP Alaska

Terry Snyder has been appointed as AARP Alaska’s new volunteer State President. She has resided in Alaska forty years and is well known and respected in the community for her activism and advocacy. Snyder has a twenty year career in tourism as a travel consultant, human Snyder resources director, vice president of operations, and as a subcontractor with her own thriving travel constituency. From 2000 to 2004 she co-owned and operated Big Lake Lodge.

SEARHC

SEARHC (SouthEast Alaska Regional Health Consortium) names Mary Crann, RN, MSN, OCN, Clinic Administrator at the Haines Health Center. She comes to SEARHC from the Calaway Young Cancer Center at Valley View, Glenwood Springs, Colorado. Crann also spent a portion of her career working at Memorial Sloan Kettering Cancer Center in New York and the National Institutes of Health in Bethesda, Maryland.

Ahtna

Ahtna announced Timothy Gould, PE, as the new Vice President of subsidiary companies Ahtna Environmental, Inc. and Ahtna Engineering Services LLC in Anchorage. Gould brings to Ahtna a wealth of skills, industry knowledge, and extensive Gould work experience, including multiple roles directing, managing, and overseeing facilities, energy, environmental, and transportation projects for federal, state, and local governments.

firm for more than twenty-five years. Jessie Brownlee has recently joined AECOM as a Wetland Biologist. Brownlee has worked with various federal agencies including the US Forest Services, National Park Services, and the US Fish and Wildlife Services.

Alaska Miners Association (AMA)

Ford

Douglas

Livingston Slone, Inc. hired Hannah Ford and Carlie Douglas to join its design team in Anchorage. Ford joins Livingston Slone as an Interior Designer and Graphic Specialist. She worked in Seattle as a graphic artists and interior designer. Ford earned degrees in both Interior Design and Environmental Graphics from the University of Wisconsin-Stout. Douglas is an Intern Architect. She has a Bachelor of Architecture from the Illinois Institute of Technology. After graduation in 2009, she decided to pursue an advanced degree, finishing in 2011 with an MA Urban Design from The University of Newcastle upon Tyne in England.

MBA Consulting Engineers, Inc.

George Vaughan joined MBA Consulting Engineers as an Electrical Engineer. Vaughan comes from Colorado where he worked at RGS Energy and Independent Power Systems in Photovoltaics. He holds a BS in Mechanical Engineering from Montana State University and Vaughan a Professional Engineer license from the state of Colorado.

AECOM

Paul Wilkins joined AECOM as a Fisheries Biologist. Wilkins has seventeen years of experience in fisheries data collection, analysis, and interpretation. Cindy Shake joined AECOM as a Public Affairs Specialist. Named 2014 Marketer of the Year by the American Marketing Association—Alaska Chapter, Shake was principal of a successful graphic design

The AMA appointed Michelle Pearson, Senior GIS Analyst with AECOM, as a Director of the AMA A n ch o r a g e B r a n ch . Pearson will guide administrative and policy decisions for the AMA statewide staff and help further the mission of public outreach about Alaska’s mining industry. Pearson

Sonosky Chambers

The law firm of Sonosky Chambers Sachse Miller & Munson LLP announces a strategic alliance under which former Senator Mark Begich will serve as a policy advisor to the firm on Native American affairs. The Sonosky Chambers firm is a full-service firm devoted to representing Native American interests across the United States. The firm is based in Washington, D.C. with additional offices in Alaska (Anchorage and Juneau), San Diego, and Albuquerque. Begich represented Alaska in the United States Senate from 2008 to2014. Prior to his Senate service, Begich served two terms as Mayor of Anchorage.

Waste Management

Joseph Adami joins Waste Management Sustainability Services as Senior Project Manager for Alaska Operations. Adami has nineteen years experience in heavy civil and oilfield remote site work within Alaska and abroad.

PDC Inc. Engineers

PDC Inc. Engineers added Angela M. Smith, PE, as a Senior Aviation Engineer to its Anchorage civil team. Smith has sixteen years of civil engineering in Alaska and also offers her extensive knowledge of FAA planning and design requirements. R

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INSIDE ALASKA BUSINESS

Lynne Curry’s ‘Solutions’

any have read Lynne Curry’s “dear Abby of the workplace” column in the Alaska Dispatch News for years. She’s recently republished, “Solutions,” a collection of sixty of the best of the ADN and Alaska Business Monthly columns from three decades. “Solutions” offers real-life workplace dramas, some of which might springboard creative instincts for characters or situations for anyone’s writing. Written by a successful management consultant and coach, “Solutions” offers a personal workplace 411/911 written in Curry’s warm, personal, enlightening and fun style. And haven’t we all experienced the Darth Vader co-worker, the Scrooge employer, and the two-faced employee? “Solutions” can be purchased locally at thegrowthcompany.com or from Amazon.com.

Compiled by Russ Slaten

Alaska Exports

Anchorage Museum

overnor Bill Walker announced in March that Alaska exported more than $5.15 billion of goods in 2014—the second highest year ever for Alaska exports and a 13.8 percent increase over the previous year. Nationally, exports rose 2.8 percent in 2014. Two countries topped Alaska’s list of export markets at a billion dollars or more each—China and Japan. Exports to China were $1.46 billion, up 18.3 percent, due to strong increases in mineral ores and seafood. Exports to China included $783.5 million in seafood, $480.4 million in mineral ores, $90.0 million in forest products, and $53.9 million in fish meal. Exports to Japan were $1.02 billion, up 48.8 percent due to the 2014 restart of liquefied natural gas (LNG) exports from Cook Inlet and stronger export of seafood and mineral ores. Exports to Japan included $525.6 million in seafood, $239.5 million in mineral ores, and $221.9 million in LNG. Alaska’s seafood exports increased 2.1 percent to $2.26 billion. Mineral ores were up 17.1 percent to $1.75 billion, including Canadian copper that is exported from Skagway. Energy exports were up 43.1 percent to $551.9 million, buoyed by the Cook Inlet LNG exports to Japan. An interesting export was the sale of a jackup rig, partially owned by the Alaska Industrial Development and Export Authority and its partners in Singapore, to new owners in South Africa, boosting the state’s exports to that country to more than $100 million. All export values are from the US Census Bureau as of February 2015 and do not reflect Alaska resources and products first transported to and warehoused in other states in the nation before export.

he Anchorage Museum has begun design planning to re-envision its hallmark Alaska history gallery. Planning for the multi-year $15 million project began in the early 2000s in conjunction with the museum’s most recent addition. The new Alaska Gallery is scheduled to open in September 2017 to coincide with the 150th anniversary of the Alaska Purchase. The Alaska Gallery tells Alaska’s story from its earliest settlement at the end of the last ice age through the building of the trans-Alaska oil pipeline. The new Alaska Gallery exhibition will cover this history through an overarching theme of “encounters,” evoking the arrivals and departures of people throughout human history and their interactions with the land and people already here. The new installation will also take advantage of new exhibition technologies. Emphasizing the voices of the people and the state’s rich diversity, the exhibition will include multiple viewpoints and offer more engaging and interactive experiences relevant to today’s visitors. The exhibition design firm gsmprjct° will be working with the museum staff to design and produce the exhibition.

First National Bank Alaska

irst National Bank Alaska cut the ceremonial ribbon and donated $89,000 to five university programs in February at its U-Med Branch in Anchorage, kicking off a month-long celebration of the opening of the first commercial bank located adjacent to the

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INSIDE ALASKA BUSINESS campuses of the University of Alaska Anchorage, Alaska Pacific University, and Providence Alaska Medical Center. The two-story, 6,300-square-foot branch at 3650 Piper Street begins to fill the gap in amenities on the U-Med campus by offering three drive-up lanes including a drive-up ATM, a night drop, and a kiosk in the lobby. To further demonstrate its commitment to the future of Alaska, the bank’s Senior Vice President Cheri Gillian presented $89,000 to university programs. The donations included $45,000 to Alaska Pacific University and $44,000 to the University of Alaska Anchorage. In Juneau, First National Bank Alaska will open a new downtown branch later this year. The 7,785-square-foot Juneau Regional Branch is under construction at the corner of 10th and Glacier Avenue in the capitol city. The branch will feature the only drive-up lane and driveup ATM in the capital city’s downtown area. On-site parking will make it easier for drivers to visit the bank. In coordination with the opening of the two-story Juneau Regional Branch, the operations of the existing Channel Branch on 840 West 10th Street and Juneau Branch on 238 Front Street will be consolidated in the new building on 10th Street. The Channel Branch building will be torn down at that time to make room for the new branch parking lot.

RIM Architects

IM Architects opened a new office in Palmer, in addition to their existing office in Anchorage, established in 1986. The new office enables the firm to become part of the growing Mat-Su community, engage with local leaders, contribute to the local economy, and provide

Compiled by Russ Slaten

local design services with boots-on-theground staff. This new location also provides RIM’s professional staff with the ability to enjoy the quality of life that the Mat-Su provides, including affordable real estate and thriving neighborhood schools, without the long commute into Anchorage. RIM has provided design services for numerous Mat-Su Valley projects, including the Alaska State Fair/ Alaska Railroad Intermodal Station, other projects at the Alaska State Fair grounds, and several projects in Wasilla.

Alaska Airlines

laska Airlines’ fleet of fuel-efficient Boeing airplanes is growing again. Seattle-based Alaska Airlines is purchasing six more Boeing 737-900 Extended Range aircraft, valued at $594 million, Boeing’s current list price. The new planes, four scheduled for delivery in 2016 and two in 2017, bring Alaska’s total of domestically manufactured jets on order to seventy-nine. Expedited delivery of four new Boeing 737-900ERs increases the number of planes Alaska Airlines will receive next year to nineteen. Alaska operates one of the youngest fleets in North America. The airline is transitioning to Boeing’s most modern and efficient 737 “next generation” models. Over the next few years, Alaska’s remaining 737400s will be replaced with 737-900ERs, which transport 25 percent more passengers on the same amount of fuel. Starting later this year, all of Alaska’s new 737-900ERs will feature Boeing’s innovative Space Bins. The larger overhead bins have a similar look and feel to Alaska’s current pivot bins, yet will hold 48 percent more bags than the current bins.

ASRC

SRC has now distributed more than $1 billion to other Alaska Native corporations. For the first time since incorporation, Arctic Slope Regional Corporation (ASRC) has distributed in excess of $1 billion to the other Alaska Native regional corporations as part of its 7(i) obligation. A recent payout from ASRC was approximately $125 million for the 7(i) distribution, which are made annually. A provision inside the Alaska Native Claims Settlement Act of 1971 requires the original twelve land-based Alaska Native regional corporations to share 70 percent of their revenue from resource development on their ANCSA conveyed lands. ASRC’s 7(i) applicable revenue comes mostly from resource development in the Colville River Delta, mainly Alpine and other satellite oilfields.

Princess Cruise Lines

rincess Cruise Lines is partnering with the Alaska Seafood Marketing Institute (ASMI) to serve a variety of new Alaska cuisine onboard, including king crab, king salmon, and fresh halibut. Not only will there be a dedicated Alaska cuisine themed night in the main dining rooms, but there will also be a special Alaska cuisine menu in the Crown Grill and Bayou Cafe on select evenings. Princess chefs will also be specially trained by Alaska Seafood chefs, ensuring the preparation and taste is authentically Alaska. The winning dish of the 2014 Great Alaska Seafood Cook-Off, pan seared Alaska salmon with root vegetable hash and mushroom tea by Chef Travis Haugen of Southside Bistro, will be featured in the main dining rooms onboard.

Your Project, Our Responsibility. 24/7 Service

Pacific Pile & Marine has a robust fleet of marine equipment including our recent addition of a 600-Ton 4600 Ringer.

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

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 May 2015 | Alaska Business Monthly

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INSIDE ALASKA BUSINESS

Motion Industries, Inc.

otion Industries, Inc., a wholly owned subsidiary of Genuine Parts Company, purchased Oil & Gas Supply, located in Anchorage, in February. Oil & Gas Supply has two locations in Alaska—Anchorage and Kenai— providing industrial and hydraulic fluid power hoses, fitting, and repair services, as well as tank truck parts to the oil and gas industry. The purchase of Oil & Gas Supply expands Motion Industries’ Northwest footprint, serving industries including mining, construction, and fishing in addition to oil and gas.

sources, Crowley, and The Aircraft Service International Group. Through a recently-completed lease agreement, Delta Western will become the fifth petroleum supplier creating a terminal facility at the Port. Pipelines transport fuel from the Port of Anchorage to Joint Base ElmendorfRichardson and Ted Stevens Anchorage International Airport. All of the jet fuel used on JBER comes through the Port of Anchorage. In 2013, 4.2 million barrels of fuel entered the Port from domestic and foreign suppliers. In 2014 both foreign and domestic carriers brought in 6.7 million barrels of fuel.

The Port of Anchorage

he Port of Anchorage experienced an increase in overall tonnage in 2014—the first uptick in three years. Containerized cargo and vehicle tonnage across the dock was up 4 percent over 2013 numbers, based on business numbers reported by the Port’s two resident ocean carriers, Horizon Lines LLC and Totem Ocean Trailer Express. And all indicators point to 2015 getting off to an equally good start. Port Director Steve Ribuffo also reports that fifteen fuel tankers called on the Port of Anchorage in 2014, compared to only five in 2013. The total related quantity represents a 59 percent increase in fuel delivered over the dock when compared to 2013. The fuel arrives by tanker or barge and travels through one of the nine petroleum offload headers on the two dedicated petroleum docks. The main petroleum suppliers with facilities at the Port of Anchorage are Tesoro, Flint Hills Re-

Compiled by Russ Slaten

Providence Alaska Medical Center

rovidence Alaska Medical Center has been designated as a Level II Trauma Center. The hospital received verification from the American College of Surgeons and certification from the Alaska Department of Health & Social Services in February. At Level II Trauma Centers, surgeons, operating room staff, anesthesiologists, and emergency department nurses and physicians are available to provide care at all times to trauma patients from Anchorage as well as those coming from outlying areas across Alaska.

ULTA Beauty

LTA Beauty opened its first store in Alaska in Fairbanks and followed with its second in Anchorage. ULTA Beauty features twenty thousand beauty products across five hundred brands, as well as a full-service salon. ULTA

Beauty is located at the Sadler Center in Fairbanks and at Tikahtnu Commons in Anchorage. ULTA Beauty is the largest beauty retailer in the United States and provides all things beauty, all in one place. Nationwide, the company operates 765 retail stores across fortyseven states.

Alaska USA Federal Credit Union

laska USA Federal Credit Union opened a new branch in Midtown Anchorage located on the ground floor of Alaska USA’s Anchorage Financial Center at 500 W. 36th Avenue. The branch offers a full range of credit union services, plus a depository, 24hour ATM, and a Self-Service Center. Alaska USA now operates fourteen branches in Anchorage for a total of thirty-five branches in Alaska.

Marsh Creek LLC

emediation work began in March on legacy wells near Umiat within the National Petroleum Reserve in Alaska under an interagency agreement between the Bureau of Land Management Alaska and the US Army Corps of Engineers. The Corps awarded a contract to Marsh Creek LLC to plug Umiat Wells 1, 3, and 11. In addition, the contract calls for removal of wellheads at Umiat Wells 4, 8, and 10. The total cost of the project is approximately $10 million, including mobilization and demobilization. Mobilization was scheduled to begin the week of March 1. Remediation work on Umiat Wells 6, 7, and 9 was completed in 2011 and 2012. R

• General Contracting • Marine Infrastructure • Design Build

Dutch Harbor - Unalaska, Alaska

www.pacificpile.com I (907) 276-3873 112

620B East Whitney Road I Anchorage, AK 99501

Alaska Business Monthly | May 2015 www.akbizmag.com

AGENDA

Compiled By Tasha Anderson May

NAWIC Region 9 Forum

May 1-2—Embassy Suites, Anchorage: National Association of Women in Construction Alaska Chapter 197 hosts the regional forum this year. Cold Climate Construction is the focus of the 2015 Forum. nawic-ak.org

Annual Strategic Lending Conference

Alaska Annual Behavioral Health Conference

May 4-5—BP Energy Center, Anchorage: Topics for this year’s conference include care and coordination of discharge planning, State of Alaska behavioral health initiatives update, and unique and diverse Alaska cultural considerations. qualishealth.org

AWWMA Annual Conference

May 4-7—Hotel Captain Cook, Anchorage: The Alaska Water Wastewater Management Association is dedicated to the stewardship of the environment and the protection of public health. awwma.org May 12-15—Westmark Fairbanks Hotel & Conference Center, Fairbanks: This conference provides opportunities to complete CLE requirements as well as an opening reception, several luncheons, and an awards reception and dinner for twenty-five, fifty, and sixty year recognition. alaskabar.org

APCOM 2015

May 23-27—Westmark Fairbanks Hotel & Conference Center, Fairbanks: This is the international symposium for the Application of Computers and Operations Research in the Mineral Industry. apcom2015.org

2015 Alaska Chapter of ASA Annual Conference

May 28-30—Land’s End Resort, Homer: The annual meeting of the Alaska Dental Society, which is “Committed to enhancing the dental profession and the health of all Alaskans.” akdental.org

Alaska Oil & Gas Congress

Animal Behavior Society Annual Conference

June 10-14—University of Alaska Anchorage, Anchorage: The Animal Behavior Society was founded in 1964 to promote the study of animal behavior in the broadest sense, including studies using descriptive and experimental methods under natural and controlled conditions. animalbehaviorsociety.org

Southcentral Foundation 2015 Nuka System of Care Conference

June 15-19—Southcentral Foundation Ahklun Mountains Building, Anchorage: The conference describes the entire healthcare system created, managed, and owned by Alaska Native people to achieve physical, mental, emotional, and spiritual wellness. It includes a pre-conference workshop for building effective relationships, general workshops and break-out sessions, evening networking, and a cultural reception. southcentralfoundation.com

International Conference on Solid-State Sensors, Actuators, and Microsystems

June 21-25—Dena’ina Center, Anchorage: The world’s premiere conference in MEMS sensors, actuators and integrated micro and nano systems. transducers2015.org

July July 16-18—Dena’ina Center, Anchorage: The Rocky Mountain Mineral Law Foundation (RMMLF) is a collaborative educational non-profit organization dedicated to the scholarly and practical study of the law and regulations relating to mining, oil and gas, water, public lands, energy, environmental protection, and other related areas. rmmlf.org

Alaska Business Week

July 18-25—Alaska Pacific University, Anchorage: Alaska Business Week is a one-week summer program teaching the basic principles of private sector business to Alaskan high school students. alaskachamber.com

Alaska Snow Symposium

July 23—Dena’ina Center, Anchorage: A one-day trade show for the snow and ice management industry brought to Alaska by the Snowfighters Institute. This year’s conference will include special educa-

www.akbizmag.com

September 20-25—Fairbanks: Scientific objectives of the proposed CCEMD include magnetic storms, auroral and magnetospheric substorms, dayside and tail magnetic reconnections, and new results of the MMS mission. gi.alaska.edu/2015ChapmanConference

Alaska State HR Conference

September 24-25—Hilton Anchorage, Anchorage: Meet more than two hundred human resources professionals, office managers and administrators, directors, and adult educators representing both public and private industry. This event will bring professionals from around the state to learn more about their responsibilities as HR Professionals. alaska.shrm.org

Arctic Energy Summit

September 28-30—UAF Campus, Fairbanks: The Institute of the North’s 2015 Arctic Energy Summit is a multi-disciplinary event addresses energy extraction, production, and transmission in the Arctic as it relates to oil and gas exploration and production, remote heat and rural power, and the business of clean energy. institutenorth.org

Alaska Fire Conference

September 28-October 3—Seward: Includes training, workshops, lectures, and a firefighter competition. The 2015 theme is “Passing the Torch.” alaskafireconference.com

October IEDC Annual Conference

October 4-7—Anchorage: The annual conference of the International Economic Development Council. Join economic developers from around the world to discuss the most important issues in economic development today: “Foundational Transformations: Creating Future Growth & Prosperity.” iedcevents.org

Alaska Travel Industry Association Convention & Trade Show

Rocky Mountain Mineral Law Institute

September 14-17—Marriott, Anchorage: CI Energy Group’s 11th annual Alaska Oil & Gas Congress will feature a focused pre-conference Summit Day, the Two-Day Conference, and a post-conference seminar. alaskaoilandgascongress.com

Chapman Conference on Magnetospheric Dynamics

June

August 25-27—Alaska Pacific University, Anchorage: The meeting features a workshop on Generalized Additive Models by Dr. Simon Wood (University of Bath, UK). community.amstat.org/alaskachapter

September

ADS Annual Meeting

July 23-26—Hilton Anchorage, Anchorage: One of the CU Conferences, which educates the Credit Union Community, this conference provides information such as generating loans across all age groups and what types of loans can increase earnings. cuconferences.com

August

Alaska Bar Convention

tional conferences targeting snow contractors, property managers, and municipalities, plus “Lunch and Learn” round table discussions. alaskasnowsymposium.com

October 5-8—Juneau: The 2015 “In Your Wildest Dreams” ATIA convention is for Alaska’s tourism industry leaders with delegates from tour operators, wholesalers, Alaska vendors, destination marketing organizations and elected officials. alaskatia.org

Alaska Business Monthly’s Top 49ers Luncheon

October 7—Dena’ina Center, Anchorage: Come honor the top Alaska-owned companies, ranked by revenue, at the annual luncheon. Contact: Melinda Schwab: 907-276-4373, accounts@akbizmag.com, akbizmag.com

Alaska Recreation and Park Association Conference

October 8-9—Land’s End, Homer: Celebrate the 40th Anniversary of the Alaska Recreation and Park Association as well as participate in the organization’s annual conference. alaskarpa.org

All-Alaska Medical Conference

October 8-10— Anchorage: A continuing medical education conference put on by the Alaska Academy of Physicians Assistants, providing up to 25 CMEs. akapa.org May 2015 | Alaska Business Monthly

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ALASKA THIS MONTH By Tasha Anderson

DINING

Photos courtesy of Jens’ Restaurant

Jens’ Restaurant

Current Jens’ owners Nancy Alip and Annelise Hansen, are pictured above, along with the restaurant’s bar and famous halibut dish.

ens’ Restaurant was established by Jens Hansen and his wife Annelise in 1988, one of the first fine-dining establishments in Anchorage’s Midtown. Jens had, prior to opening the restaurant, worked at the Hotel Captain Cook, starting in 1968, according to Nancy Alip, the restaurant’s current executive chef. Alip says she came to the restaurant in 2002, and when Jens passed away in 2012, she was asked by Annelise to be a business partner, which is how the business is still structured today. Even though the history of Jens’ Restaurant appeals to locals and visitors alike, it is the food that drew people in during the late 1980s and continues to do so today. “The pepper steak is one of the most popular [menu items]. It’s the one that Jens has been doing for ages, even before he opened the restaurant, and it’s always been one of our most popular,” Alip says. “Also our halibut is popular, but we don’t have it during the winter when it goes out of season.” The restaurant’s menu, available online, changes daily and seasonally, depending on what produce and fresh fish are available. “We call our fish market people every morning and see what’s available,” Alip says. “We try to do elk or deer in the fall and maybe some veal in the spring. It’s whatever is seasonally available and fresh.” Additionally, as much as possible Jens’ Restaurant sources fresh produce from the Valley and shops at local farmers’ markets. “We try to make everyone’s experience special,” Alip says. “We get lots of birthday and anniversary celebrations; we really try to take care of people and provide them with good food and good service.” jensrestaurant.com R

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Alaska Business Monthly | May 2015 www.akbizmag.com

ALASKA THIS MONTH By Tasha Anderson

TRAVEL

Valdez Fly-In

Pilot Chuck McCahan flying over the Columbia Glacier during the 2005 Valdez Fly-In, which takes place every May. Photo by Joe Prax

his year’s annual Valdez Fly-In and Air Show will take place May 8 through May 10, attracting pilots and enthusiasts from Alaska and the Lower 48. “The big event is the short take-off and landing competition, or STOL,” says Joe Prax, Valdez Fly-In president. Other events include a beach landing, officially called the Poker Run, where participants get a hand of cards and the best hand wins a prize; a Flour Bombing competition, which involves bags of flour being dropped onto targets; and other aerobatics and sky divers. Prax says that this year Marcus Paine will perform aerobatics in his 450hp Stearman biplane. “It will be an exciting show and a major draw for people,” he says. In addition to the action in the air, there are great events happening on land. “Sunday we give out balsa wood and rubber band planes to kids and do contests for them; that’s very popular,” Prax says. There’s an airshow on Sunday afternoon, and on Sunday night there’s an awards banquet for the STOL contest, which includes various classes of planes. Prax, a pilot himself, says that the event began more than ten years ago as an effort to provide an activity in a slow month as well as “a way for pilots to dust off their airplanes and get ready for the summer flying season.” He says that the event isn’t just fun for the spectators. “It’s a very social events and it’s great to see the pilots and everybody getting together and sharing stories,” Prax says. Admission for the weekend is $5, which does not include admission to the awards banquet. More information and a detailed schedule of events can be found online. valdezflyin.com R

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AvisAlaska.com May 2015 | Alaska Business Monthly

115

ALASKA THIS MONTH By Tasha Anderson

ENTERTAINMENT

Photo by Sydney Laurence, Courtesy of the Anchorage Museum

Alaska Museum

Baseball game in Anchorage, July 4, 1915, the first Fourth of July celebrated after the Alaska Railroad built the tent city in Ship Creek.

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116

he Anchorage Museum is showcasing two new exhibits starting in May, both of which directly relate to the culture and community of Alaska. On view from May 1 through November 1, “Home Field Advantage: Baseball in the Far North” is an official program of the Anchorage Centennial Celebration according to Katie Ringsmuth, Anchorage Museum senior Alaska Gallery curator and the curator of this exhibit. “‘Home Field Advantage’ reveals how this national pastime adapted to Arctic conditions Archival photographs, art, artifacts, and memorabilia showcase the rich history of baseball in Anchorage and throughout the state, including how late 19th century icebound whalers spread ashes on sea ice to form baseball diamonds,” Ringsmuth says. “Visitors also learn about early Ketchikan teams, whose beach-based games were called due to high tide, and how some major league players, including Satchel Paige, once played in the far North,” she adds. The second exhibit opening in May is titled “On Sea Ice” and will remain open from May 1 through September 20. “Sea ice is a simple material with complex implications,” says Greg Danner, Anchorage Museum Science and Interactivity Director, in describing the exhibit. “Sea ice provides hunters and whalers with vital access to resources, it helps to moderate the world’s weather, and it is home to much of the microscopic life that supports some of the world’s most valuable fisheries. ‘On Sea Ice’ explores the historical role this material has played in the Arctic, presented through the perspectives of science, business, government, and individuals whose lives and livelihoods are inextricably tied to its dynamic conditions. ‘On Sea Ice’ provides context for looking at the future of the North and how life here is ever changing for people, whales, walrus, plankton, and more,” anchoragemuseum.org R

Alaska Business Monthly | May 2015 www.akbizmag.com

EVENTS CALENDAR

Compiled by Tasha Anderson

ANCHORAGE

5/9-9/6

Anchorage Market & Festival

Open every Saturday through the summer season, this open-air market and festival is an opportunity to shop for fresh produce, live entertainment, and more than three hundred vendors. Third and E Street Parking lot, 10 a.m. to 6 p.m. anchoragemarkets.com

Bear Aware Event on Mother’s Day

This family-friendly event will refresh visitors on bear and moose facts and safety information in a fun, outdoor setting. Watch bear-resistant trashcan demonstrations and enjoy hands-on bear related booth activities and a kids craft station. Because it’s Mother’s Day, moms are free. Alaska Zoo, 12 p.m. to 4 p.m. alaskazoo.org/bear-aware-event

5/28-6/21

Venus in Fur

This tango of dominance between actress and director and woman and man is a laugh-out-loud study of the politics of sex and power guaranteed to charm. Cyrano’s Theatre; Thursday through Saturday 7 p.m. and Sunday 3 p.m. cyranos.org

5/30-6/6

Alaska PrideFest Week

Events this year include the Kickoff Barbeque, Pride FilmFest at the Bear Tooth Theatre, the Front Runner Pride Fun Run/Walk and barbeque, drag queen bingo, equality parade, and the festival on the Delaney Parkstrip. alaskapride.org

CORDOVA

7-10

Copper River Delta Shorebird Festival

Highlights of the 25th anniversary of the Copper River Delta Shorebird Festival will be stories told by storyteller Rebecca Hom, learning about rehabilitated birds with Bird TLC (Bird Treatment and Learning Center), guided field trips, and Birding 101 classes, as well as classes, workshops, and talks with illustrator, author, and naturalist Maryjo Koch. copperriverdeltashorebirdfestival.com

FAIRBANKS

Bacon Festival Fairbanks

Celebrate how this tasty pork product saved Fairbanks during the 1906 fire. Enjoy vendors, bacon tasting, live entertainment, and all things bacon. Golden Heart Plaza in Downtown Fairbanks. explorefairbanks.com

22-23

HAINES

Great Alaska Craft Beer and Homebrew Festival

Activities include the Gourmet Beer Banquet on Friday evening; Fun-run on Saturday morning; and live music, local food, and excellent craft beers from breweries and distributors across the state Saturday afternoon. Limited tickets available. Must be 21 with valid ID to enter. Southeast Alaska State Fairgrounds. seakfair.org

7-10

HOMER

Kachemak Bay Shorebird Festival

Starting off with a pre-festival Junior Birder event on Wednesday, May 6, the festival includes family bird walks, field excursions, and science talks, all led by expert guides, naturalists, and speakers. homeralaska.org

1-16

JUNEAU

Juneau Jazz & Classics Festival

Nationally-recognized for its line-up of world-class artists, this unique sixteen-day festival offers a spectacular mix of blues, jazz, and classical performances and workshops and family entertainment in an array of venues including aboard boats for the popular “classical and blues cruises.” jazzandclassics.org

15-18

KENAI

Kenai Peninsula Birding Festival

This four-day festival is designed to showcase and celebrate peninsula birds for all ages and abilities. Activities include informative sessions, www.akbizmag.com

birding field excursions, a PEEPs young artists contest, and a barbeque. kenaiwatershed.org

KODIAK

Chocolate Lover’s Fling and Art Auction

The inaugural year of the Discover Kodiak Chocolate Lover’s Fling in 2009 featured a halibut tail art auction and more chocolate than anyone really needs to eat. Add music and wine and it’s a winning combination at this adult date-night event. For more information call 907-486-4782. kodiak.org/island_events

21-25

Kodiak Crab Festival

Join locals and visitors at the 2015 Kodiak Crab Festival for great food, games, activities, interactive rides, parade, and more. kodiak.org/island_events

16-17

TALKEETNA

Cliff Hudson Memorial Fly-In

The Hudson Memorial Fly In is an event that celebrates the rich aviation history of Talkeetna Alaska. Activities include a poker run, aircraft performance demonstrations, fly-over, silent auction, pancake feed, and Young Eagles Flights. abovealaska.com/flyin

16-17

NINILCHIK

Fiber Arts Festival

This interactive fiber arts event connects the community with activities like fiber exhibitions, workshops, educational demonstrations of fiber processes, hands-on projects with children and adults, and livestock. There will be a fiber arts market of local artists’ work and fiber supplies, lecture and information about local fiber activities, groups, businesses, and instructional resources. Kenai Peninsula Fairgrounds, 10 a.m. to 5 p.m. kenaipeninsulafair.com

PALMER

Musk Ox Mother’s Day Opening

Come celebrate Mother’s Day and opening day on the farm. See the moms tend to their newborn calves and bring your own mom for free admission. Aside from all our new babies, enjoy great local music, a barbeque, and ice cream. Must Ox Farm, 10 a.m. to 6 p.m. muskoxfarm.org

14-17

PETERSBURG

Little Norway Festival

Syttende Mai or May 17th, celebrates the signing of Norway’s Constitution in 1814. Petersburg’s Little Norway Festival celebrates not only Norway’s Constitution, but US Armed Forces Day, the coming of spring, and beginning of the fishing season. petersburg.org

SKAGWAY

Spring Stroll

Skagway merchants and tour operators open their doors for everyone to familiarize themselves with what’s being offered this visitor season and be a tourist for a day. skagwaynews.com

8-31

WASILLA

The Diary of Anne Frank

The play is a dramatization based upon the writings of the Dutch language diary kept by Anne Frank while she was in hiding for two years with her family during the Nazi occupation of the Netherlands. Valley Performing Arts; Friday and Saturday evenings 7 p.m., Sundays 2 p.m. valleyperformingarts.org

28-31

YAKUTAT

Yakutat Tern Festival

Participants of the festival will enjoy birding activities, natural history field trips, art exhibits, educational events for kids and adults, and Native cultural presentation, a photo context, and 2015 Keynote Speaker John M. Marzluff of the University of Washington. yakutatternfestival.org May 2015 | Alaska Business Monthly

117

ALASKA TRENDS

By Amy Miller

Skilled Workers Needed in Alaska’s Oil Patch

espite the recent dip in oil prices worldwide, Alaska’s industry is facing a long-term labor shortage that policymakers are working to address. Planning in Alaska’s oil patch doesn’t happen quarter by quarter. Due to the massive infrastructure needs associated with developing new prospects on Alaska’s North Slope, companies must plan five to ten years out and align hiring and workforce development accordingly. The Alaska Department of Labor and Workforce Development is working in partnership with the oil and gas industry to address needs identified in the Alaska Oil and Gas Workforce Development Plan, 2014-2018. The plan identifies two overarching demographic trends that are driving the projected shortage: first, the population of the United States as a whole is getting older, and a wave of retirements will soon hit a number of specific occupations in the oil patch; second, there are far fewer Gen X workers to take the place of retiring Baby Boomers due to the relative size of the two generational cohorts. A full third of the US workforce is comprised of Baby Boomers, most of whom are poised to retire by the end of the decade, according to the National Research Council. The Alaska Oil and Gas Workforce Development Plan, which was completed in May 2014, projects that more than 32 percent of resident workers in Alaska’s oil and gas industry will be eligible to retire by 2024. Currently, according to

the plan, there are 20,249 workers employed in the Alaska oil and gas industry and their annual wages are $1.9 billion. These workers represent 4.9 percent of the total Alaska workforce; 13.2 percent of all Alaska wages paid. Another tidbit, the industry had a 17.8 percent employment growth rate from 2006-2011. It is well documented that Alaska’s oil and gas production has been in decline for decades, so why this urgent need for skilled workers? As oil fields age, development becomes more technically challenging, requiring more workers and expertise to maximize production. At the same time, booming development in the Lower 48 is creating new competition for skilled workers that puts additional pressure on the industry in Alaska. The top oil-industry occupation with an impending shortage of workers in Alaska is inspectors, testers, sorters, samplers, and weighers; 88 percent of the workers in this category were fifty years old or older as of the plan’s completion last May. Other occupations that are likely to feel the pinch, according to the plan, include cost estimators, firstline supervisors, managerial variants, several occupational health and safety occupations, and some engineering and geoscience occupations. R Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

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Alaska Business Monthly | May 2015 www.akbizmag.com

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 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 Fairbanks www.akbizmag.com

By Amy Miller Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Units

Period

Latest Report Period

US $ US $ 1982-1984 = 100 1982-1984 = 100

3rdQ14 3rdQ14 2ndH14 2ndH14

39,306 14,789,078 216.83 237.09

39,057 14,646,964 214.78 236.38

36,923 14,180,492 213.91 233.55

6.45% 4.29% 1.37% 1.52%

Number Filed Number Filed Number Filed

January January January

16 14 2

28 21 2

29 17 3

-81.25% -21.43% -50.00%

Thousands Thousands Thousands Thousands Thousands

January January January January January

336.57 191.83 42.86 32.18 34.47

339.20 195.55 44.72 33.01 34.73

334.57 190.25 43.06 32.51 34.02

0.60% 0.83% -0.46% -1.02% 1.32%

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

323.00 43.30 279.70 17.30 17.20 14.80 15.20 10.80 7.00 62.90 6.10 36.40 6.00 9.80 20.50 5.60 6.20 4.20 12.00 28.10 47.10 34.00 29.90 7.80 18.30 11.70 81.80 14.20 26.30 8.20 41.40 23.00 3.40

323.00 41.40 281.60 18.30 18.10 15.20 15.30 7.80 4.00 63.80 6.20 37.20 6.60 10.60 20.40 6.00 6.10 4.00 12.00 29.40 48.00 33.90 28.60 6.00 18.60 11.40 82.30 14.60 26.10 8.50 41.60 24.10 3.70

317.30 43.60 273.70 17.00 16.90 14.20 14.40 12.20 8.70 60.50 6.30 35.10 6.20 9.90 19.10 5.50 6.20 4.10 11.80 28.20 47.10 33.60 28.50 6.10 18.50 11.40 80.00 14.50 24.70 6.60 40.80 22.90 3.60

1.80% -0.69% 2.19% 1.76% 1.78% 4.23% 5.56% -11.48% -19.54% 3.97% -3.17% 3.70% -3.23% -1.01% 7.33% 1.82% 0.00% 2.44% 1.69% -0.35% 0.00% 1.19% 4.91% 27.87% -1.08% 2.63% 2.25% -2.07% 6.48% 24.24% 1.47% 0.44% -5.56%

Thousands Thousands Thousands Thousands Thousands

January January January January January

362.35 203.91 45.72 35.14 37.75

362.51 206.42 47.32 35.69 37.72

362.49 202.93 46.09 35.83 37.56

-0.04% 0.48% -0.80% -1.93% 0.51%

Percent Percent Percent

January January January

7.1 5.9 6.3

6.4 5.3 5.5

7.7 6.2 6.6

-7.79% -4.84% -4.55%

May 2015 | Alaska Business Monthly

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ALASKA TRENDS

Indicator

Southeast Gulf Coast United States PETROLEUM/MINING Crude Oil Production -- Alaska Natural Gas Field Production -- Alaska ANS West Coast 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 Fairbanks--Recording District

By Amy Miller Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Units

Period

Latest Report Period

Percent Percent Percent

January January January

8.4 8.7 5.7

7.5 7.9 5.6

9.3 9.4 7

-9.68% -7.45% -20.00%

Millions of Barrels Billions of Cubic Ft. $ per Barrel

January January January

15.65 8.79 48.87

16.10 8.88 60.90

16.79 8.13 103.82

-4.11% 9.23% -41.34%

Active Rigs Active Rigs $ Per Troy Oz. $ Per Troy Oz. Per Pound

January January January January January

10 1683 1250.59 17.10 2.11

11 1882 1201.37 16.24 2.27

11 1769 1244.80 19.91 2.04

-9.09% -4.86% 0.47% -14.11% 3.43%

34.20 7.77 14.74

43.59 8.63 33.81

45.28 6.75 38.53

-24.47% 15.11% -61.74%

Millions of $ Millions of $ Millions of $ Total Deeds Total Deeds

January January

604 134

736 222

525*GeoNorth 130

15.05% 3.08%

VISITOR INDUSTRY Total Air Passenger Traffic -- Anchorage Total Air Passenger Traffic -- Fairbanks

Thousands Thousands

January January

343.28 72.20

389.14 76.53

332.66 70.60

3.19% 2.27%

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

52358.40 53396.30 161.10 -32.80 196.10 142.80 -244.60

52354.20 52905.50 194.80 696.60 -70.30 -9.70 -469.40

48585.80 49180.60 204.00 -725.40 72.90 82.40 -857.40

7.76% 8.57% -21.03% 95.48% 169.00% 73.30% 71.47%

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 $

4thQ14 4thQ14 4thQ14 4thQ14 4thQ14 4thQ14 4thQ14 4thQ14 4thQ14

3,994.74 207.48 154.35 2,313.63 10.57 3,506.48 3,340.30 1,000.84 2,327.83

5,781.68 299.37 146.66 2,742.89 18.01 5,002.29 4,346.55 1,830.26 2,516.30

5,394.16 141.17 143.34 2,543.77 17.58 4,656.83 4,046.21 1,623.39 2,422.82

-25.94% 46.97% 7.68% -9.05% -39.87% -24.70% -17.45% -38.35% -3.92%

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

118.49 1.20 0.66 0.86 6.14

119.54 1.15 0.64 0.81 6.14

104.05 1.09 0.61 0.73 6.05

13.88% 10.09% 8.20% 17.81% 1.49%

Notes: 1. Source of Anchorage Deeds of trust (GeoNorth) is cited in the data field. 2. Banking data has been updated to include Alaska State Banks and Alaskaâ&#x20AC;&#x2122;s sole federally chartered, Alaska-based bank, First National Bank Alaska

120

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special section

ABM’s Anchorage Centennial 1915 - 2015

100 Years Ship Railroad 1st Hotel Anchorage 1st Radio Park Strip Merrill Matanuska Creek construction Built Incorporated Station Colony used as landing Field built Tent City begins 1915 1916 1920 KFQD ﬁeld 1920s -1930 1930 1935 1914 1924

1915

1920

1925

1930

Business in Anchorage of

1st Fur Rondy 1937

1935

P rovidence Hospital built 1937

Elmendorf Ft. AFB built Richardson 1940 built 1941

1940

4th Ave. Theater 1947

1945

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ADVERTISERS INDEX AE Solutions Alaska LLC.................... 44 AECOM....................................................52 Alaska Air Cargo - Alaska Airlines.... 19 Alaska Dreams Inc................................ 75 Alaska Interstate Construction......... 57 Alaska Logistics..................................... 55 Alaska Railroad......................................39 Alaska Rubber........................................58 Alaska Sleep Doctor............................. 41 Alaska USA Federal Credit Union..... 21 Alaska USA Insurance Brokers..........23 American Fast Freight..........................99 American Marine / Penco................. 118 Anchorage Messenger Service..........36 Anchorage Opera................................ 114 Arctic Office Products..........................31 ASRC Energy.......................................... 77 AT&T......................................................... 37 Avis Rent-A-Car....................................115 Bering Air Inc........................................115 Brand Energy & Infrastructure.......... 61 C&R Pipe and Steel Inc..................... 107 Calista Corp............................................43 Carlile Transportation Systems.......123 Chris Arend Photography.................122

122

Chugach Alaska Corp...........................87 Colville Inc.............................................. 44 Construction Machinery Industrial....2 Cruz Construction Inc..........................79 Delta Leasing LLC.................................74 Diamond Airport Anchorage Parking..11 Donlin Gold............................................. 53 Dowland-Bach Corp.............................59 Doyon Limited........................................51 F. Robert Bell & Assoc.........................45 First National Bank Alaska................... 5 Foss Maritime....................................... 64 Fountainhead Hotels............................49 GCI...................................................47, 124 Global Services Inc...............................69 Golder Associates Inc..........................52 Granite Construction...........................63 Hawk Consultants LLC........................58 HDL Hattenburg Dilley & Linnell......52 Helimax Aviation....................................17 Homer Marine Trades Assoc.......... 107 Hot Wire LLC.........................................46 Island Air Express................................ 114 Judy Patrick Photography................... 41 Kinross Fort Knox..............................106

Landye Bennett Blumstein LLP.........39 Lounsbury & Assoc...............................49 Lynden Inc................................................15 Magtec Energy.......................................59 Matanuska Electric Assoc..................29 Medical Park Family Care Inc............ 35 MFCP Motion & Flow Control Products.............................52 N C Machinery.................................... 105 Nalco Energy Services.........................47 North Slope Telecom...........................26 Northern Air Cargo.................108, 109 Northwest Data Solutions..................36 Novagold Resources Inc................... 103 NRC Alaska............................................. 76 Oxford Assaying & Refining Inc.......116 Pacific Alaska Freightways Inc..........95 Pacific Pile & Marine.........110, 111, 112 Paramount Suppy Co........................ 107 Parker Smith & Feek............................. 33 PenAir.......................................................81 Personnel Plus...............................71, 116 Petrotechnical Resources Alaska...... 73 Procomm Alaska LLC...........................65 Ravn Alaska............................................25

Ritchie Brothers Auctioneers............46 Safway Group Holding LLC................67 Samson Tug & Barge............................69 SGS Environmental Services..............85 Span Alaska Transportation Inc........97 Stellar Design Inc............................... 107 Stephl Engineering LLC.......................92 STG Inc.....................................................29 Taiga Ventures.......................................67 Total Safety.............................................92 Trailercraft Inc/ Freightliner of Alaska.....................60 Tri-Jet Precision.....................................86 Truckwell of Alaska.............................. 64 Turnagain Marine Construction........58 UIC Commercial Services................... 53 Ukpeagvik Inupiat Corp......................83 United Way of Alaska..........................22 Visit Anchorage.....................................32 Washington Crane & Hoist................27 Waste Management.............................93 Wealth Strategies of Alaska...............89 Wells Fargo Bank Alaska......................13 West Mark Service Center.................43 XTO Energy Inc....................................... 3

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