Alaska Business Monthly May 2017 by Alaska Business

ConocoPhillips Investments Q&A with President Joe Marushack page 62

Oil & Gas Industry Subsidiaries

DV3 Corp Owners Win Small Business Persons of the Year for Alaska page 14

page 80

Education

Q&A with UAA President Jim Johnsen page 30 Back on Track: Aspiring to Graduate page 34 Flight Schools & Aviation Training page 38

Joe Marushack President, Conoco Phillips Â© Judy PatrickPhotography

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May 2017 Digit al Edition TA BLE OF CONTENTS

DEPARTMENTS

ABOUT THE COVER: ConocoPhillips Alaska President Joe Marushack has worked in the oil and gas industry since 1982, when he worked as a staff engineer for Phillips Petroleum Company in Wyoming. He was named to his current position in April 2015, having served previously as President, ConocoPhillips Canada and President, ConocoPhillips Asia Pacific and Middle East. As part of Alaska Business Monthly’s annual Oil & Gas special section (beginning page 61), he discusses operations at Greater Mooses Tooth and CD5 in NPR-A, the Alaska oil and gas market, and ConocoPhillips in the community—read it all in the Q&A (page 62).

FROM THE GENERAL MANAGER 7 RIGHT MOVES 112 INSIDE ALASKA BUSINESS 114 BUSINESS EVENTS 117 EAT, SHOP, PLAY, STAY 118 EVENTS CALENDAR 119 ALASKA TRENDS 120 AD INDEX 122

Cover Photo © Judy Patrick Photography Cover Design: Art Director David Geiger

OIL & GAS Special Section

ARTICLES AGRICULTURE

8 | Farmers Summit Explores Opportunity for Growth

Entrepreneurial spirit reinvigorated for local food production By Bethany Goodrich

Photo courtesy of Doyon

SMALL BUSINESS

Photo courtesy of DV3 Corp

Last summer Doyon spud Toghotthele #1 in the Nenana Basin, utilizing Arctic Fox, a Doyon Drilling rig. Information from the well has added to Doyon’s knowledge of the basin as they continue exploration efforts.

61 | Industry Commentary

By Kara Moriarty

The Bake was DV3 Corp’s first property. Located near Denali National Park, the bar and grill has been in operation since 1984 and was purchased by DV3 Corp in 2005.

14 | An Alaskan

Corporation Grows out of Denali National Park DV3 Corp wins Small Business Person of the Year for Alaska By Tasha Anderson

18 | FisheWear

Angling for a niche market expansion By Tasha Anderson

MANAGEMENT

20 | New Ideas in Business Development By Tasha Anderson

ConocoPhillips Alaska President Joe Marushack

66 | ANC Exploration Update

Alaska Native Corporations invest in-region By Tasha Anderson

70 | Q&A with Keith Meyer,

Photo courtesy of BP

62 | Q&A with

President, Alaska Gasline Development Corporation

74 | North Slope & Cook Inlet Activity

Alaska’s oil and gas industry is always “active” By Darryl Jordan

81 | Alaska’s Oil and Gas

Subsidiaries: The Industry’s Backbone By Tom Anderson

Parker Drilling Rig No. 273 is one of the company’s Alaska units. The evolution of drilling technology has enabled an additional 3 billion barrels of oil production in Prudhoe Bay.

90 | Alaska Business 2017 Oil & Gas Directory

Alaska Business | May 2017 www.akbizmag.com

First National is local. They understand our business and our economy. Richard Schok, President & Owner, Flowline Alaska

For more than 90 years, our focus has been on offering strong, business financial solutions. But we never forget that it’s our expertise, experience and responsive, local service that set us apart. From lines of credit to ACH, from cash management to expansion financing, First National helps leading edge businesses like Flowline Alaska to innovate, grow and succeed.

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We Believe in Alaska

M ay 2 017 Digit a l Edition TA B L E

O F

C O N T E N T S

ARTICLES ECONOMY

22 | Recent Research Indicates

Immigrant-Owned Businesses Have a Significant Financial Impact on Alaska

ENERGY

‘Immigrants are strong contributors to our economy’ By Tracy Barbour

ENVIRONMENTAL SERVICES 58 | Kenai Peninsula Could

House $45 Billion Gold Mine, Natural Gas Line By Julie Stricker

HR MATTERS

60 | Managing Risk Often

Means Managing Culture

PHILANTHROPY

By Kevin M. Dee

28 | Pick.Click.Give.

VISITOR INDUSTRY

Alaskans Supporting Alaska By Sofia Fouquet

EDUCATION

30 | Q&A with Jim Johnsen,

President, University of Alaska

34 | Inspiration + Aspiration = Motivation

Helping kids get back on track to graduate By Tom Anderson

Photo courtesy Chugach Electric Association

38 Flight Instructor Jamie Patterson Simes, who founded Sky Trek Alaska in 2014, located her business at Merrill Field in a vintage building which she remodeled into a hangar and flight school.

38 | Flight Schools Gear Up for Pilot Shortage

Plenty of options for Alaskans who want to learn to fly By Rob Stapleton

TELECOM & TECHNOLOGY 40 | Meeting Increasing Demand for Distance Education

Post-secondary schools offer more eLearning options By Tracy Barbour

TRANSPORTATION 44 | Fleet Services

Keeping Alaska’s workforce moving By Tasha Anderson

50 | Electricity in Alaska: No

Ties to the Grid or Anyone Else Railbelt transmission and distribution By Darryl Jordan

ENGINEERING

54 | Institute of Northern Engineering

Engineering solutions in rural Arctic communities By Julie Stricker

Photo by John Gaedeke

Courtesy of Sky Trek Alaska

Chugach Electric Association continues to upgrade the existing intertie to the Kenai Peninsula. Here a crew prepares to install a new conductor.

108 A guest canoes on Iniakuk Lake, the stunning site of Iniakuk Lake Wilderness Lodge, which is located sixty miles north of the Article Circle and just outside the Gates of the Arctic National Park.

108 | Arctic Tourism Beautiful, remote, unique By Tasha Anderson

The majority of Delta Leasing’s fleet operates on North Slope, and the company provides a variety of vehicles to meet the needs of the oil and gas industry, ranging from pickup trucks and crew transport vans to mobile workspace vehicles and welding trucks. Photo by Sam Amato

Alaska Business | May 2017 www.akbizmag.com

FROM THE GENERAL MANAGER

Life is change

VOLUME 33, NUMBER 5 Published by Alaska Business Publishing Co. Anchorage, Alaska EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate Editor Tasha Anderson 257-2902 tanderson@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com Advertising Account Manager Janis J. Plume 257-2917 janis@akbizmag.com Advertising Account Manager Holly Parsons 257-2910 hparsons@akbizmag.com Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 | Toll Free: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. Alaska Business (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, ©2017, 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 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, 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: Email query letter to editor@akbizmag.com. Alaska Business 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. Email specific requests to editor@akbizmag. com. Online: Alaska Business is available at www.akbizmag.com/Digital-Archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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rom the Alaska Business Monthly office, in a currently thawing midtown Anchorage, we can see the former Northern Lights Hotel as it undergoes what is probably its final transformation. This evolution will bring about the long overdue demolition of the forty-seven-year-old building, which, when built in 1970, was so state-of-theart that it even had color television—in every room. Demolition is scheduled for completion this spring, about when this May issue hits newsstands. The Anchorage skyline will forever change, and the ongoing cycle continues. This newly-reborn space in midtown Anchorage possesses so much potential, perhaps producing new neighbors for us here at Alaska Business Monthly, neighbors who might participate in any number of current or burgeoning Alaska industries. Alaska’s economy is no stranger to the cycle of change, and as a relatively young state, I think sometimes we forget that we too are susceptible to economic shifts. Oil prices go up and down, tourism numbers fluctuate, and the economy continues its ebb and flow. The only constant is change. But in this cycle of change, there is normalcy. There is fantastic potential. There are new growth opportunities and new people to pursue them. Every empty lot is a new business waiting to spring forth. I’m excited to see what’s next for Alaska: what new businesses will change Alaska’s skyline? And we ourselves can’t escape the cycle; Alaska Business Monthly is also changing. We will continue to be “Where You Go When You Need To Know,” but we are also evolving to be the “Champions of Alaska Business.” And there are more exciting changes that we’re preparing for the coming year and for years beyond. For now, we are excited to introduce our new Managing Editor, Kathryn Mackenzie. She brings with her a wealth of editing and managing experience, as well as the chops to bring multiple social media platforms together to create a cohesive message and help spread the gospel of Alaska Business: our brand new “lot” of untapped potential. Check our website at akbizmag.com for more information about Kathryn, and she’ll introduce herself to our readers in the June issue. We’re extremely excited about our May issue, which once again features our Oil and Gas Special Section: the oil and gas industry is going through changes of its own (and some challenging times). We’ll continue to follow this vital industry closely as it moves forward, in many ways, leaner and stronger. Embrace change.

Jason Martin Vice President & General Manager May 2017 | Alaska Business

AGRICULTURE

Photo by Lia Heifetz

Farragut Farm is an off-the-grid vegetable farm located thirty-five miles north of Petersburg. Marja Smets and Bo Varsano provide more than forty different varieties of vegetables to Petersburg, Juneau, and other markets. Each year their average sales have increased by approximately 30 percent. The two installed their fifth high-tunnel greenhouse this season.

Farmers Summit Explores Opportunity for Growth Entrepreneurial spirit reinvigorated for local food production

By Bethany Goodrich

he Southeastern community of Haines was once known as the strawberry capital of Alaska. In the 1900s, Charlie Anway’s prolific red berries were shipped throughout the state—his largest berry measuring seven inches in circumference. During the harvesting season for more than two decades, Anway hired up to twenty pickers and grossed more than $700 a day. “Charlie Anway wasn’t alone. During this time there were at least eight operating farms in Haines producing a wide variety of fruits and vegetables for sale in the community, the state, and down south,” says Madeline Witek, who is the community coordinator of the Sheldon Museum in Haines.

Alaska Business | May 2017 www.akbizmag.com

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Colter Barnes and Damon Holtman brought twenty-five pounds of lettuce to the Farmers Summit. Barnes is the superintendent of the Southeast Island School District that runs a series of four biomassheated aquaponic greenhouses that provide hands-on entrepreneurial and agricultural experience to students while cultivating produce to feed students and sell in their communities year-round. Photo by Bethany Goodrich

Witek presented on the strength of Haines’ colorful agricultural history to a fascinated audience during the opening of the second biennial Southeast Farmers Summit in February. More than seventy-five fruit and vegetable growers and livestock farmers from across the region flocked to Haines to reinvigorate the entrepreneurial spirit of local agriculture.

Fresh Produce Much has changed since the days of Charles Anway. When it comes to fresh produce in Southeast Alaska today, the Farmers Summit emphasized that there is ample opportunity for growth. Southeast Alaskans spend $19 million each year importing roughly 96 percent of its fresh produce, according to the Current Potential Economic Impacts of Locally-Grown Produce in Southeast Alaska report published by the McDowell group and presented at the Summit. Consider potatoes, a crop that grows locally, as an example. According to the report, more than $3 million is spent on some 2 million pounds of imported spuds each year. Roughly 38 percent of Southeast households grew food last year, and about thirty commercial growers are cultivating in the region. While completely closing the import gap is unlikely, farmers are confident that improving local production is not only possible but important for our state’s food security and good for our wallets too. The Farmers Summit was organized by the Southeast Alaska Watershed Coalition, Takshanuk Watershed Council, and the Sustainable Southeast Partnership to cultivate momentum in the industry. “While production in Southeast Alaska is currently limited, there are many individuals who are working hard to provide fresh food for our region and create livelihoods around local food production,” explains 10

Lia Heifetz, the organizer of this year’s Farmers Summit. “This is a venue to nurture growth, to provide a space to share lessons learned between commercial farmers, connect farmers to resources, boost entrepreneurial know-how, and present research-based technologies pertaining to commercial agriculture.”

Maximizing Efficiency Emily Garrity runs a successful farming business in Homer named Twitter Creek Gardens. She journeyed south to this year’s Farmers Summit to share her experiences with farmers in the Southeast. “One of the key opportunities with farming in Alaska is that it is pretty much an untouched market,” says Garrity. “We have lots of room to grow with very little competition and that gives us a lot of leeway getting started, starting small, growing, and being successful.” During peak growing season, every week Garrity and her crew move $4,000 worth of produce through their farm to thirty CommunitySupported Agriculture members, eight restaurants, two farmers markets, and one food hub. Since 2003, she’s escalated her business from growing in a 1,000 foot garden on borrowed land to cultivating on her 1.5 acre property equipped with raised beds, high-tunnel greenhouses, and one innovative greenhouse built into a hillside. It’s been a long process for Garrity—exploring markets, seeking out proper loans, building partnerships with Homer’s fishing industry to save on shipping costs for inputs, and experimenting with different produce. Her advice for Southeast farmers working to build careers in farming: treat your garden like a business. “We need to take the business aspect very seriously, which I think is one of the major hurdles for people first getting into farming. Newcomers tend to feel like it is a lifestyle, which it

is for sure, but treating it more like a business as opposed to a hobby is a really important piece to being sustainable,” says Garrity. What does that look like? “Coming up with a business plan, looking at budgets, putting dollar per square foot values on all of your garden space, growing crops that can make you enough money to make a living from. You need to look at the high value crops and the markets that are available and tap into all of them,” she says. Garrity focuses on high-succession crops like radishes and salad greens that can be harvested and replanted several times during a growing season. Many of the commercial growers in the Southeast did begin as hobby growers, and many of their farms are large vegetable gardens that reflect personal taste more than profit. Serious farmers are reevaluating what they grow and in what percentage and are seeing returns. Marja Smets and Bo Varsano run Farragut Farms off-the-grid, thirty-five miles north of Petersburg. What began as a home garden Smets and Varsano have nurtured into a farm that provides more than forty different varieties of vegetables to Petersburg, Juneau, and other markets. “On average, our sales have increased each year by approximately 30 percent, so we are definitely growing a lot more than we did during our first years in business,” says Smets. “We continue to figure out which crops have the highest demand, and which crops grow most productively. Each year, we then try to adjust our crop plan accordingly for the upcoming season.” Local growers are also investing in equipment and infrastructure such as high-tunnel greenhouses and aquaponics to improve production and profitability in this difficult climate. Farragut Farms is installing their fifth high-tunnel greenhouse this year.

Alaska Business | May 2017 www.akbizmag.com

Business Competition Supports Food Businesses

he Path to Prosperity (P2P) 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. This year, as the competition enters its fifth cycle, P2P will focus on supporting food-based entrepreneurs involved in growing, harvesting, processing, aggregating, or distributing food. P2P is seeking applications for 2017 from new and existing food businesses. Deadline for entries is 11:59 p.m., May 31, 2017. Go online to spruceroot.org/business-competitionhome/ for applications and more details. R

Creative Farmers When it comes to being successful in agriculture in the Southeast, innovation and creativity are key. Colter Barnes, superintendent of the Southeast Island School District on Prince of Wales Island, is overcoming the high cost of labor and the limits of available land and soil by avoiding the two completely. Barnes and Damon Holtman, a student of Coffman Cove, traveled to the Summit to share the story of their island’s success. “I love working with dirt,” Barnes explained to a captivated audience of farmers. “But I challenge you to find soil on Prince of Wales Island.” The School District is managing a series of four biomass-heated aquaponic greenhouses that are providing hands-on entrepreneurial and agricultural experience to students while cultivating produce to feed students and sell in their communities yearround. The dynamic duo even brought twentyfive pounds of fresh lettuce (note this was held mid-February in Alaska) to share at the Summit and explained how this project is not only improving access to fresh produce on Prince of Wales, it is also creating new revenue streams for a financially struggling school district. Tapping into tangential industries has also proven helpful for farmers. Ed Buyarski of Juneau is finding success by pairing produce with landscaping because the two require similar infrastructure and equipment. He also sells seeds and starts to growers, and this highlights another take-home from the McDowell report and Summit: home and commercial growers in the Southeast spend $1.8 million on growing inputs each year. Soil, seeds, fertilizer, supplements, lumber for greenhouses, and other inputs constitute a surprisingly sizable industry. Nick Schlosstein and Leah Wagner founded Foundroot in Haines, a business selling openpollination seeds that can withstand Alaska climates. Their station at the Summit was bustling non-stop with farmers eager to make www.akbizmag.com

“As a community we have the ability

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May 2017 | Alaska Business

Leah Wagner of Foundroot Seeds in Haines holds a series of her products at the second bi-annual Farmers Summit in Haines. Southeast Alaskans spend 1.8 million dollars each year on inputs like seeds, soil, fertilizers, and lumber for greenhouses. Entrepreneurs like Wagner are building local businesses that tap into that market. Photo by Bethany Goodrich

The Denali: Alaskan Grown produce meets Alaska’s Wild Salmon “The Denali” is a Caprese salad created by Alaska Coastal Catering Corporate Chef and Managing Member Susie Linford to take advantage of seasonal Alaskan-grown heirloom tomatoes. © Rob Stapleton

By Susie Linford

pring is here! Let the dreaming begin of planting Alaska fruits and vegetables and planning for your upcoming fishing adventure. Alaska has world class organic produce. Our long, sun filled summer days and ample rain help create sweet fruits and gorgeous vegetables. Stop by any local farmer’s market and you will no doubt see a bounty of yumminess that only increases in volume as the summer months slowly turn into early autumn. Our favorite: the South Anchorage Famers Market on Saturdays. This is where we had the

pleasure and delight of meeting Carmen Moldovan with Northern Flowers in Anchorage. Moldovan and her husband have a large growing operation of organic vegetables—mainly heirloom tomatoes—and flowers. Very impressive and worth a visit for a tour of their facility. Last August, we purchased every organic heirloom tomato Moldovan had on hand and created beautiful Salad Capreses for our clients. They loved the fresh, sweet flavors, and the vibrant colors! Then we had an inspiration while admiring a beautiful side of Smoked Alaskan Salmon—let’s combine the two! We named it “The Denali.” Very fitting. R

purchases. Finding ways to tie agriculture into our booming tourism and fishing industries is important for maximizing regional benefits. For example, selling value-added products and fresh produce to cruise ships and restaurants during tourism season helps keep money in Alaska that was brought in from out of state. Value-addition and more in-region processing were also discussed as opportunities for strengthening the vitality of agriculture in Southeast Alaska. According to the Southeast Alaska Commercial Rhubarb Feasibility Study, a report by the office of Representative Jonathan Kreiss-Tomkins which was simultaneously unveiled at the Summit, one acre of rhubarb could yield $170,000 in processed juice. While facilities and machinery would be required to master high-volume processing, the potential is lucrative. Others look to existing processing plants that are certified for value addition of commercial products. Fish processing plants are potential spaces that can be used for the commercial development of other goods during the off-season and churches and other community spaces often offer kitchen space that is certified for commercial processing.

Connections While increasing agricultural production in Southeast Alaska is important, getting product in front of buyers is critical. Participants of the Farmers Summit explained that access to markets and the high cost of transport are notable obstacles. Participants were optimistic that Alaska Marine Highway System (AMHS) is a promising option for affordably accessing markets across the region. Southeast Conference is the region’s economic development organization. They are currently leading a statewide effort to refine the governance structure of the ferry system and are actively looking for options to make the ferry more profitable and

Alaska Business | May 2017 www.akbizmag.com

sustainable with a dwindling state budget. Robert Venables, the Energy Coordinator of Southeast Conference, is the chairman of the Marine Transportation Advisory Board leading the Alaska Marine Highway Reform Project. Venables agrees that the opportunity for the ferry system to ship more than just people and cars from rural community to community is key. “The success of AMHS really is going to lie with the partnerships that it can make within the regions it serves. The state will always provide certain basic fund support, but there has to be other revenue streams. Partnering with businesses and communities is one component of a revenue stream that can be developed right now that is largely untapped, so there is a lot of opportunity to move goods, like produce, throughout the region using the AMHS,” says Venables. A more dependable and consistent ferry service with options for shipping unmanned freight from community to community will not only be important for farmers in the region hoping to access new markets, it would help support the future of the ferry system and benefit intra-regional commerce more generally. “Sometimes the ferry is the only mode for commerce in some of these more remote communities, because well, there are no roads. So, the ferry can play a very prominent role in the transport of agricultural products,” says Venables. “Maybe someone is producing something that they ship to a network in Juneau who is then adding produce that goes to Pelican, and then maybe they reload some seafood products that go back to Hoonah or Kake. There is a very multi-faceted opportunity for producers across the region to get together here,” says Venables. Between active farmers’ markets across rural communities, Community Supported Agriculture memberships, and an upcoming food-hub called Salt & Soil Marketplace that aims to connect Southeast markets using an online marketplace and physical pick-up locations in Juneau and Haines, farmers are thinking critically about reaching consumers.

Growing Momentum Growing a flourishing agriculture industry in Southeast Alaska is not simple. The hardy, enthusiastic, and inventive group that gathered in Haines in February indicates that the dedication and collaboration necessary to cultivate this industry is building. “There are challenges like a wet and cool climate, scarcity of good agricultural land in our region, a distance between markets, and a lack of efficient and cheap transportation systems. But the opportunity is that our local food movement is in its infancy; it’s a real opportunity to step in on the ground floor and make a lasting impact on the future of small scale agriculture for our region,” says Smets, who hosted the first Farmers Summit in 2015 and was pleased by this year’s turnout. “There were over twice as many attendees at this year’s Summit! There’s a huge increase in interest and participation. I feel a groundswell arising.” R Bethany Goodrich writes from Southeast Alaska. www.akbizmag.com

May 2017 | Alaska Business

SMALL BUSINESS

Photo courtesy DV3 Corp

The Bake provides an authentic Alaska experience for those traveling to and from Denali National Park, featuring thirty beers on tap—including 49th State Brewing’s own Baked Blonde Ale—and hearty portions of good food made with fresh Alaskan-grown ingredients.

An Alaskan Corporation Grows out of Denali National Park DV3 Corp wins Small Business Person of the Year for Alaska By Tasha Anderson

n March Linda McMahon, head of the US Small Business Administration, announced Alaska’s Small Business Person of the Year winners are Jason Motyka and David McCarthy, owners of Denali Visions 3000 Corporation (DV3 Corp), headquartered in Healy. DV3 Corp is generally better known for its individual properties: Prospectors Historic Pizzeria & Alehouse; Denali Crow’s Nest Cabins; The Overlook at the Crow’s Nest; The Denali Park Salmon Bake; 49th State Brewing Co.; and Miners Market @ McKinley RV & Campgrounds, all in Healy, and a second 49th State Brewing Co. location in Anchorage.

The Bake that Started it All Motyka graduated with a business degree from Western Washington University, after which he entered an exchange program in Ecuador where he learned to white water kayak. Motyka, who grew up in Anchorage, wanted to 14

come back to the state and “do something outdoor-related,” he says. Through a friend, he got a job as a white water rafting guide on the Nenana River in Denali National Park. “I started managing that company in Denali, and I really loved Denali, and I saw potential for some different opportunities,” Motyka says. It was soon after in 2005 that he and a partner approached the owner of The Salmon Bake about buying the property. The Bake is located across the highway from the Princess Hotels in Denali. Motyka says, “We basically changed the concept from kind of a momand-pop diner where you ordered over a loud speaker microphone—there were picnic tables that were lined with old red and white checkered table cloths, etc. That was the only kind of restaurant available at the time in Denali [other than the hotel property restaurants].” Motyka says that in that first year, expectations for how they would run the restaurant didn’t exactly meet reality: they thought they’d need to hire fifteen employees to run the restaurant-side of things, such as serving tables, while they ran the business. As it turned out, they had fifteen employees in the first two weeks and ended up hiring forty by the end of the first month, and at the end of the first summer season they’d already doubled revenues over the previous owner.

The next year, 2006, brought a whole new set of challenges. Motyka says that he wasn’t really a “restaurant person” and had no experience, prior to The Bake, other than a few months as a busser. “We were looking for some seasonal help, and we were looking for chefs and people that had restaurant experience. Line cooks and chefs are a hard thing to find up here in Alaska, especially on a seasonal basis.” In the summer of 2006, David McCarthy, who graduated from Kendall College in Chicago with a Culinary Arts degree in 1998, felt the time was right to hop on a motorcycle and drive the Alcan north to the Last Frontier. Motyka still remembers seeing McCarthy pulling up, decked out in full motorcycle gear. McCarthy was just what The Bake needed, as it was during that summer that The Bake had been suffering some food quality issues and other problems. McCarthy was asked to step up, with his restaurant experience and education, to address the problem. “He basically helped up get aligned in the right operations,” Motyka says. The following year, 2007, was the first full season with McCarthy on board, “and that’s the year where we saw some amazing growth in getting the food quality up and other areas of the business.” It was in 2008 that Motyka and his partners applied for, and won, their

Alaska Business | May 2017 www.akbizmag.com

first SBA Small Business Persons of the year award. According to a May 2008 release from the Alaska Journal of Commerce, “During the three years since the team incorporated their business and leased the facilities, [The Bake] has shown a 350 percent increase in revenues over the previous owners’ best year and added sixty-five new full- and part-time seasonal jobs to the area.” Motyka and his partners saw the incredible value of McCarthy’s involvement in the business, and McCarthy was seeing great potential in Alaska; and through a combination of serendipity and great foresight, McCarthy was made a partner in 2008. Motyka says, “We wanted to continue to grow; we saw the tremendous opportunity in Alaska, and we were just starting to figure out how to run these seasonal businesses effectively, how to go ahead and get employees up to Denali, how to deal with the remote locations, and the shipping, and the employee housing, and everything else.”

Further Expansion In 2009, DV3 Corp bought a package license liquor store from the Cantwell Lodge in Cantwell and opened Denali Park Grocery, “which was the first kind of little mini-mart grocery store/liquor store in Denali, [and it was] right next to the Denali Park Salmon Bake,” Motyka says. Around the same time, the group was in talks with the owner of the Northern Lights Theater, which showed old films of the Northern Lights called Northern Lights tours. “Sales had started to decline be-

cause the theater was getting older, and the film was kind of played out.” DV3 Corp wanted to operate the theater as a pizzeria, since there were none in Denali other than the one owned by Princess. “Because of David’s knowledge of being a chef and his passion for craft beer—in fact he was a home brewer—the concept was to make pizza from scratch with locally-sourced Alaska ingredients and have a massive beer collection.” Their tap selection had forty-nine craft beers; Motyka says they call it “The Old 49er.” The old theater turned into Prospectors Historic Pizzeria & Alehouse in the spring of 2010, which was later voted one of the “Great American Beer Bars” in 2013, 2014, and 2015-2016.

Start the Beer Brewing In 2010, McCarthy left Alaska for a short time, returning to Chicago to attend a Master Brewing program at the Siebel Institute. That same year in the winter he traveled to Munich, Germany, to receive a European brewing certification. McCarthy’s passion for home brewing was the impetus for the training and certification, but “we realized the program and certification would be a significant benefit to us,” Motyka says. The same year, DV3 Corp opened its first 49th State Brewing Co. location in Healy, building out the restaurant and brewery in an old bus barn. Motyka says, “I remember going into the bus barn—we had used it for storage—and David said there was a temporary bar framed out, and he says, ‘We’re starting,’”

Motyka laughs. “I remember saying: Okay, here we go.” To begin, Motyka and McCarthy purchased a SABCO half-barrel brewing system. “A half barrel is basically one keg,” Motyka explains, “so we could basically brew one keg at a time, just to have some legitimacy to call ourselves a brewery.” He says their first keg of beer disappeared in about three hours. In 2011, after receiving a 2010 SBA loan to refinance the company’s debt, they upgraded to a five-barrel brewing system, which while still small, “was our first legitimate system,” he says. Even with that upgrade, the brewery was still running out of beer, and working out of Denali National Park only compounded normal issues surrounding managing a brewery and restaurant. “It was very challenging to do business in Denali, to get grain up there, to get the amount of kegs we needed, to deal with the freezing conditions over the fall and winter time, to house all the new employees that we had,” says Motyka. In the spring of 2013, a fifteen-barrel system was installed at 49th State Brewing Co. in Healy, giving them a steady flow of beer and the opportunity to bottle and export the product to other markets. In 2014, DV3 Corp finished renovations of two more locations in Denali National Park: a collection of cabins called The Crow’s Nest and The Overlook Bar & Grill, a fine-dining restaurant. “We redid all the cabins: put in new pillow top mattresses and down comforters; redid everything at the front desk; and landscaped the whole property, and made

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Pictured above, owners Jason Motyka (left) and David McCarthy (right) opened their second 49th State Brewing Co. location in 2016 at 717 West Third Avenue in Anchorage, which involved a revision and renovation of the historic Snow Goose, built in 1918. Photos courtesy DV3 Corp

it a property that I’m very proud of,” Motyka says. The Crow’s Nest log cabins are a historic property with breathtaking views of the Alaska Range, connected by a series of natural pathways and wooden wrap-around decks. The Overlook is located at the Crow’s Nest.

Growing into Anchorage And then came the 49th State Brewing Co. in Anchorage. Though it was renovated and opened in 2016, preparations started much sooner. “We knew we wanted to get into Anchorage somehow, but we just couldn’t find the right space,” Motyka says. That is until Motyka and his partners discovered the owner of the iconic Snow Goose, built in 1918 with stunning views of Cook Inlet and Mount Susitna, was thinking about selling. “David had met the owner previously when they had come up to Denali, and David had set the bug in his ear saying: if you really want to sell your business, please let us know.” Though working in Anchorage takes McCarthy and Motyka away from the majority of their businesses in the Denali Park area, it isn’t without its perks. “If you’re comparing Denali to working in Anchorage, it is a luxury to work in Anchorage,” McCarthy laughs. “In the Denali/ Healy area, if you forget something you have a minimum of a two-hour drive, four-hour round trip, just to run to the hardware store.” McCarthy says that the Anchorage property was strategic not just for company growth but also for supporting their other properties. “One of the reasons we’re growing [into Anchorage] was actually to stabilize our business in Denali, which is the foundation of where we come from,” McCarthy says. He says one of their challenges was actually how popular their beer had become; its popularity was making it logistically difficult to meet 16

increasing demand at their high standard of quality. “In order to produce more, we actually had to expand in an area that was going to be cost prohibitive or expand in an area that was going to help reduce our costs so the beer could be even more affordable,” McCarthy says. The large storage spaces at their Anchorage location allow them to bring in raw ingredients and store them in larger amounts. “Beer does not have the price point that wine has in the market,” he explains. “Beer is for the people, and we’re trying to keep it as affordable as possible.”

That Alaska Feeling Motyka says they focus on an experience, at all of their properties, that feels like Alaska. It’s not exactly rustic, and it’s not what many people from the Lower 48 might picture as Alaskan. DV3 Corp properties feel very much like a friend’s house: some of the décor makes sense, some of it is beautiful, some of it is unexpected, and together it all somehow feels familiar and comfortable. All of their properties pay homage to their origins, and it is this respect for history that lays the foundation for every DV3 Corp renovation or remodel. Instead of simply starting anew, Motyka and McCarthy embrace the idea of making a good thing even better. For example, in the Anchorage location there’s a wall made entirely of old barrel staves. “I took them apart myself, I power washed them, I scrubbed them out, and we sanded the interior,” McCarthy says. “At the end of the process, [the installer] is taking selfies next to the wall and posting it to his friends. What better feeling can you get out of a place than that?” Hard Work and Clear Visions It’s easy to see success from the outside, but Motyka says, “We were not really handed

anything. I had invested my life savings, at the time, into starting The Salmon Bake, and we’d keep signing on the dotted line for loans from the banks. But at the end of the day, we’d show up to work—and you keep growing, and you keep growing, and you start seeing the light at the end of the tunnel, you start seeing the vision that you set out to create.” McCarthy and Motyka credit their employees and business and community relationships as vital to their growth and success. With regard to the 49th State Brewing Co. in Anchorage, McCarthy says, “How all those things come together—to me it’s just hard working people with great intentions. And it’s a sense that people love this location, they love the decks, they love the view; and to me this describes a lot about what Alaska is. We’re making something, taking a raw ingredient and making something out of it that people can all appreciate.” Motyka says, “We take great pride in being able to be an Alaskan-owned business, to be able to provide opportunity for jobs here in Alaska. We feel that tourism in the state is a very bright segment in the economy, and we’re very proud to be a part of that.” McCarthy says, “In Alaska my dreams became a reality. I have learned so much; no matter what happens with any of these businesses, I will never look back and say any of those decisions were not good, because the people we meet, the relationships we built, all the things that happen in building something from nothing—there’s a feeling that can never be taken away.” R

Tasha Anderson is the Associate Editor for Alaska Business.

Alaska Business | May 2017 www.akbizmag.com

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SMALL BUSINESS

FisheWear Angling for a niche market expansion By Tasha Anderson

t’s been about two years since Alaskan Linda Leary founded FisheWear with a vision to create comfortable, functional, fashionforward clothing and accessories for Alaska’s abundance of fisherwomen. FisheWear sells belts, dry bags, leggings, neck tubes, hoodies, and totes in various original designs. Leary says that she initiates concepts for FisheWear products and then collaborates with an artist and graphic artist for product design. Leary says, “My goal is to try to change the way fishing is for women and that [fishing gear] doesn’t have to be olive brown, black, or tan; it doesn’t have to look like your dad’s clothes; and it can be fun and comfortable.”

Kickstarting FisheWear On October 4, 2016, FisheWear launched a Kickstarter campaign to promote both FisheFisheWear owner Linda Leary (right) models the new Troutrageous leggings and neck tube; neck tubes are a layer of protection from the sun, provide warmth, and are great for wiping off sunglasses. © Judy Patrick Photography

Wear as a company and their new line of wool clothing. Kickstarter is a global crowdfunding platform through which individuals and companies can set rewards to raise funds for a wide array of projects. “I like new technology and new concepts,” Leary says. “Kickstarter is a fun, young, energetic way to promote your business.” Leary says that in FisheWear’s case, the Kickstarter campaign wasn’t just about raising money. “I definitely needed the capital because I was funding everything myself, but that was an added bonus for me,” she says. “It was more of a marketing opportunity and a way to expose our product to a larger audience and create some excitement around it.” FisheWear’s Kickstarter campaign was centered on FisheWear’s new wool line, which includes a pullover wool top, skirted wool leggings, and a wool tube, which is worn around the neck. Additionally, the Kickstarter campaign introduced leggings, tubes, trucker hats, and dry bags in their new design “Troutrageous Rainbow.” As with any Kickstarter campaign, FisheWear contributors could pledge various amounts of money to receive differing levels

FisheWear introduced new design “Troutrageous Rainbow” during their Kickstarter campaign. Image courtesy of FisheWear

of rewards, according to their budget. FisheWear’s lowest contribution was $1, rewarded with a thank you email. On the other end, the $10,000 limited reward promised a fishing trip with FisheWear founder Leary and one each of the new FisheWear line of items, including a Kickstarter exclusive print-athome FisheWear coloring book. FisheWear’s Kickstarter campaign began in October and concluded in March, with 298 backers pledging $66,030 to the company, allowing FisheWear to surpass their original goal of $50,000. “We had some wonderful people supporting us,” Leary says. According to Leary, she had wanted to introduce a wool line to FisheWear since the beginning of the company. “It was all about base-layer clothing that you wear under your waders so when you take your waders off after fishing all day… you don’t want to always have to change, and you don’t want to always be in your long-johns. You want to have street clothes that are comfortable and functional that you wear under your gear.” She says the process of designing the wool line took about eighteen months, and right before it was ready they turned to Kickstarter to create some buzz about the new products. While Leary was excited about a Kickstarter campaign as a tool, she had heard “they’re a lot of work, extremely stressful, and it’s kind of all-hands-on-deck.” Kickstarter provides a framework to work in and suggestions on how to be successful, but most of the work falls on the company running the Kickstarter campaign. That being said, a few weeks into the campaign, Kickstarter featured FisheWear as one of their favorite projects, which Leary says was huge, “and we were pretty excited about it.” FisheWear’s Kickstarter campaign was ultimately successful, and Leary says one of the keys to that success was utilizing social media before and throughout the campaign. “And then communicating on a regular basis with people, letting them know what’s happening, and getting the excitement going,” she says. One of FisheWear’s significant successes was being introduced to markets beyond Alaska. “Most of the reach that we had was in the United States,” she says, but they were eventually able to reach markets worldwide. Leary found it interesting that FisheWear had to provide some education about Kickstarter as a fundraising platform. Some of her customers thought Kickstarter was more like GoFundMe, where people just donate money

Alaska Business | May 2017 www.akbizmag.com

to a cause or project. “We had to be very clear with people that it’s an opportunity to pre-buy products like pre-ordering a book or music on Amazon, where a lot of people thought we were asking for money without getting anything.” As of April 1, FisheWear fulfilled all of its Kickstarter commitments, and now their wool line and other new products are available for those who didn’t get in on the campaign.

Swimming Forward Leary says that as FisheWear has grown, the company has found that women who engage in many outdoor activities are looking for functional outdoor clothing suitable for all-day wear. “What we’ve found is it’s not just for fishing now, it’s kind of cross-sports. Even the fishing industry is trying to reach across all sports with the products they sell. Runners, triathletes, paddle-boarders, kayakers, hikers—they all love our products as well,” Leary says. And the industry is interested in FisheWear. “Orvis just reached out to us, and we’re going to collaborate with them on a project,” says Leary. Having been in operation since 1856, Orvis is “America’s oldest mail-order outfitter and longest continually-operating fly-fishing business,” according to the company’s website. Leary says FisheWear and Orvis are going to collaborate on a fly-bag for women: “It’s a fly fishing bag that just goes over your shoulder, and it’ll be with our designs on it and our logo, co-branding it with Orvis.” She says the new fly-bag should be available this November. FisheWear products are available online and through retail locations in Alaska, she says, primarily at Mountain View Sports and BodyPhlo/Sportique in Anchorage. Fishe Wear also has a showroom in Anchorage at 511 West 41st Avenue. “We’re doing a hybrid model, but we’re primarily online as much as we can be,” she says. The company is looking at how women of any sport can use their products, but Leary says for now it’s important to stick to their goal. “Our main focus is around fishing, and we don’t want to get too far away from that. I think that there’s just a tremendous amount of opportunity there. And we get a lot of guys asking us to make products for them, but we just want to get really good at making stuff for women right now and focus on that.” FisheWear will continue to introduce new products, she says, as one avenue of growth. For example, wading belts are in the works. “If you look at wading belts they’re all solid black or brown. They’re boring,” notes Leary. FisheWear is designing belts that will go well with their other products, matching or coordinating with their leggings or dry bags. She says FisheWear is also developing a soft-shell skirt that can be worn over leggings for additional warmth. FisheWear’s goal is clear, no matter the product or the sport, according to Leary: “Look good and have fun doing it.” R Tasha Anderson is the Associate Editor for Alaska Business. www.akbizmag.com

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MANAGEMENT

New Ideas in Business Development By Tasha Anderson

very business exists in a changing environment, and it is necessary for all businesses to periodically take stock of policies, procedures, personnel, partners, vendors, and all the other vital parts and pieces that can lead to success or decline. In many cases, it’s beneficial for businesses to acquire an unbiased or fresh perspective. Business development is necessarily a different process for each business dependent on industry, infrastructure, assets, and economics.

Bradison Management Group Bradison Management Group (BMG) Founder and Senior Consultant Paula Bradison says, “The biggest thing is defining what business development is for your company—really look at what problems you’re trying to solve.” Bradison established BMG (bmgak.com) in 2012, after she had already been in the consulting industry for a few years. “I got into man20

agement primarily because I really just like business. I like how it works, and I’m just really interested in what makes a successful business.” To that end, BMG is a team of consultants with the sole goal of helping develop a growing business, whether that’s through traditional avenues of advertising or personnel changes or other more technical or out-of-the-box approaches. In Alaska, BMG has provided services to architecture and engineering firms, construction companies, and medical offices and operations, among others. BMG primarily works with small-to mid-size companies, Bradison says. One trend that Bradison has noticed in recent years is what companies request when they take advantage of BMG’s consulting services. “Three years ago, if I asked them if there’s one problem I can fix, 99 percent of the time it was HR. Right now I would say 80 or 90 percent of the time it’s, ‘Help me find more work.’”

While each client is nuanced, within many Alaska industries companies are facing the same issue. “In all industries right now, they’re worried about a backlog of work and really looking not so much at what they’re doing right this minute but what’s coming next.” Bradison says that there’s been a shift from the 1980s where “if you did a good job and you built relationships, and you were committed to the community, people would bring you work and they’d seek you out” to today, where it’s mostly an environment of RFPs (Request for Proposal). BMG’s group of technical and consulting professionals can provide assistance with improving the bidding process, whether it’s adjusting a bid template or procedure or building industry relationships. This low-work environment is increasing competition, and Bradison says she’s seen legacy companies folding or transitioning ownership or management. “This recession

Alaska Business | May 2017 www.akbizmag.com

has sort of pressed the question of ‘Are you in or are you out, and how hard are you willing to work for the next job?’” That kind of transition, Bradison says, is one of BMG’s specialties. “When we talk about the baton being passed from one generation to the next within a company, sometimes they need a massive rebranding, but oftentimes what they need is just someone to stand beside them with enough technical expertise—graphics artists, technical writers— to be able to just sort of tighten up the brand and make sure that messaging, internal to the organization and external, is consistent. We want to align all those efforts,” Bradison says. According to Bradison, “The best organizations are the ones that are coming together and recognizing that there are elements of business development that can be shared by all your employees, but you need to decide what that’s going to be, and how it’s going to be executed.”

sity, were discussing insights from Change by Design, a book about design think-tanks. They had independently been considering how beneficial a service like this would be in Alaska. Alleva says, “We just started talking about it and I saw his excitement, his passion—it reignited some passion within me and so we decided this is something that maybe Spawn can take on, put together a design thinking practice and offer that to our clients.” Alleva and Olson prepared a presentation for Spawn’s management team, and Hooligan was born. At press time, Hooligan was building case studies and has been engaged with a few select clients to gauge their interest level. “You know you’re on to something when you’re just having conversations with people and they just light up

and want to hear more,” King says. In March she indicated the case studies would be concluded in perhaps a little more than two months, and Hooligan will be off and swimming. Alleva says, “We envision Hooligan as being a catalyst for the state, to help diversify revenue funds and help companies in Alaska diversify their own revenue streams, to become stronger, better companies.” “Part of our analysis is that there’s a real need for innovation,” Olson says. “It can seem like the path to get there is very unclear, and with Hooligan we want to make it clear.” R Tasha Anderson is the Associate Editor for Alaska Business.

Hooligan Spawn Ideas is a fully integrated advertising industry with a solid history working in Alaska. Spawn is developing a new service area they’ve named Hooligan (hooliganthinking.com). Alaskans will recognize hooligan as a type of fish (and therefore see the connection to Spawn), but Jesse Alleva, an account planner for Spawn and one of the Hooligan initiators, says he likes the name for all its connotations. “A hooligan is a young, disruptive upstart,” which suits his vision for what Hooligan will accomplish. Eric Olson, Spawn Accounting Manager, explains that while the exact business model of Hooligan is still being finalized, at its core it’s a consulting group: “We do ethnographic, deep-dive research on the consumer and we come up with insights and ideas that can inspire products, services, or experiences that are in-line with the core values that customers have.” However, it’s not just about finding a good idea and passing it along: “[The idea] needs to be viable for business, it needs to be feasible, [so] we create business models around those ideas,” Olson says, and then Hooligan will present the whole package to their client, including an analysis of start-up costs and potential return on investments. Spawn President and CEO Karen King describes Hooligan’s process as design thinking. “Typically a client comes to us with a problem or an objective and they’re asking us to solve for it by creating messages, marketing, and advertising. Design thinking is going back further than that; we don’t have an existing product per se, but we are working with the client and their would-be consumers … and then coming up with products and services that prove to be more successful in the market.” King says Spawn has focused for the last few years on fostering a co-created culture, inviting members of the organization at all levels to participate in idea generation, and this is a positive result of that culture. Hooligan sprang from a meeting comprised of Alleva, Olson, and Spawn’s CFO Lisa King. Alleva, who has an MBA/MA from Johns Hopkins University and the Maryland Institute College of Art, and Olson, currently working on an MBA at Alaska Pacific Univerwww.akbizmag.com

May 2017 | Alaska Business

ECONOMY

Recent Research Indicates ImmigrantOwned Businesses Have a Significant Financial Impact on Alaska ‘Immigrants are strong contributors to our economy’ By Tracy Barbour

Courtesy Municipality of Anchorage (??)

everal recent studies are helping to clarify what many people already know about Alaska’s immigrant business owners: Foreign-born entrepreneurs have a positive economic impact on the state. At the same time, policy makers, the business community—and immigrants themselves—are striving to make Alaska a more welcoming and accommodating place for everyone. The latest Alaska-based research clearly establishes how immigrants play an important financial role in the state. According to the August 2016 Contributions of New Americans in Alaska report by New American Economy (NAE), only 7.6 percent of Alaska’s

Mara Kimmel, JD, PhD, Anchorage’s first lady

Courtesy Lina Mariscal

The French Oven Bakery supplies sandwich bread to customers in Anchorage as well as other parts of the state. The business is owned by Lina Mariscal, who moved to Alaska from Mexico in 1983, and employs almost a dozen workers in Anchorage.

population is foreign-born. Yet, Alaska is home to almost 3,000 self-employed immigrants. In 2014, immigrant-owned businesses generated $58.5 million in business income. And as a conservative estimate, 15,512 people in Alaska and Wyoming combined were employed at firms owned by immigrants in 2007. (Data on Alaska alone is not available for confidentiality reasons.) Immigrants in Alaska also make significant contributions to the state as taxpayers and consumers. In 2014, Alaska’s immigrantled households earned $1.8 billion—8.2 percent of all income earned by Alaskans that year; helped to contribute more than $1 in every $13 paid by Alaska residents in state and local tax revenues; and paid almost $246 million into the Social Security and Medicare programs, NAE reported. NAE is a unique partnership that brings together more than 500 Republican, Democratic, and Independent mayors and business leaders who support immigration reforms that will help create jobs for Americans. NAE’s Alaska-specific research is exciting to Mara Kimmel, JD, PhD, one of the foremost experts on immigrants and immigrantentrepreneurship in Alaska. Kimmel—the wife of Anchorage Mayor Ethan Berkowitz and co-founder of the nonprofit Alaska Institute for Justice—says NAE’s research quantifies the economic impact of immigrantowned businesses in Alaska. “It’s the first time we have ever documented the numbers [for Alaska],” Kimmel says. “I’m happy that we finally have data and information we can talk about in meaningful ways.” For example, the NAE report shows that given their percentage of Alaska’s population and financial impact, foreign-born business owners generate a positive disproportionate benefit in the state. And they represent a

huge potential that can be tapped, especially with the current state of Alaska’s economy, Kimmel says. “We need to make sure that all hands who want to be on deck are on deck,” she says. “That means breaking down barriers to entry in the market.” Breaking down barriers involves having honest conversations about immigrants and understanding the human stories behind the numbers. Immigration reform is not a partisan issue but a human issue, says Kimmel, a former political science professor at University of Alaska Anchorage (UAA) and long-standing advocate for human rights. “When you humanize an issue, you’re able to get past the rhetoric and vitriol,” she says. “Immigrants are people just like you and me. These are people we depend on for the health and well-being of our communities.”

More Immigrants Drawn to Alaska The Contributions of New Americans in Alaska report also highlights the state’s growing appeal to immigrants. While only 7.6 percent of Alaska’s population is foreignborn, Alaska has increasingly been drawing immigrants in recent years. Between 2010 and 2014, the foreign-born population in Alaska expanded by more than 9,073 people, increasing in size by 19.4 percent. But nationwide, the immigrant population increased by only 5.8 percent during the same period. Interestingly, there were only two other states in the country—North Dakota and Wyoming—that experienced a faster rise in the number of their foreign-born populations than Alaska. So why the big attraction to Alaska? Part of the appeal lies in the state’s access to international communities, says Jonathan Bittner, who recently served as vice president of the Anchorage Economic Development Corporation (AEDC)

Alaska Business | May 2017 www.akbizmag.com

“Immigrants are strong contributors to our economy. They may wear a variety of different hats in that they reunite a family, participate as students, invest in family and friends’ businesses, and own businesses.”

—Gretchen Fauske Associate Director, University of Alaska Anchorage Center for Economic Development

and previously was the deputy commissioner of the Alaska Department of Commerce, Community and Economic Development. “People think of Alaska as the end of the world, but in reality we are an international crossroads,” he says. “A lot of industries that flourish here tend to be very international in scope, so skills that are learned elsewhere are especially applicable here.” That’s an apt description of Yasinta Shumaker’s situation. Shumaker owns Black Bear Farms in Palmer and grows an assortment of vegetables: Brussels sprouts, zucchini, kohlrabi, collards, broccoli, onions, peas, and carrots. “I have a farming background in Zambia where I am from,” says Shumaker, who moved to Anchorage in 2014. “My father used to grow vegetables.” Shumaker says she and her husband—an American who moved to Alaska from Indiana—could do all of the work on her farm themselves. But they prefer to employ other people whenever they can. “We love to help others, so we hire people who need help,” she says.

Immigrant entrepreneurs like Shumaker fit well into Alaska, which has one of the most diverse census tracks in the nation. “All of these amazingly diverse cultures have found a welcoming home here, and they are creating this wonderful mixing pot in Anchorage,” Bittner says. “A larger portion of them have something in common, which is a sense of optimism and an interest in creating a new life.” Gretchen Fauske, associate director at University of Alaska Anchorage Center for Economic Development, also feels that Alaska’s diversity has been an attraction for immigrants. So has the potential for economic advancement. “We have a very diversified population here in Alaska, with more than one hundred languages spoken in the Anchorage School District,” she says. “Therefore, immigrants may be coming to reunite with family members already here or see our population as being accepting of immigrants. Further, while our economy is not currently prospering, we have a recent history of persistent job growth so immigrants likely see Alaska as

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not only a land of beauty, but of opportunity.” Fauske adds: “Immigrants are strong contributors to our economy. They may wear a variety of different hats in that they reunite a family, participate as students, invest in family and friends’ businesses, and own businesses.” That pretty much sums up Lina Mariscal’s contribution in Alaska. Mariscal, forty-nine, owns French Oven Bakery, a provider of sandwich breads to about sixty restaurants in Anchorage and elsewhere in the state. The business generates approximately $800,000 in annual sales and employs about ten workers, many of whom, like Mariscal, are from other countries. Mariscal moved from Mexico to Alaska with her family when she was sixteen, landing in Kenai and eventually relocating to Anchorage to attend school. “My granddad was a carpenter, and he did boat repairs,” she says. “So Alaska was perfect for that type of work.” Like Shumaker, Mariscal enjoys helping others improve their lives. Last year, she helped launch a nonprofit bilingual newspaper, Sol de Medianoche, which means Midnight Sun. The bi-monthly publication provides articles about immigration laws, employment, and other vital topics to roughly 3,000 readers. “We saw a need for informing, educating, and uniting the community,” Mariscal says. “I think there is the need to support and assist people into integrating into the community at large. Because of the language barrier, we thought it would be good to provide information that people need.”

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New Americans in Anchorage NAE also facilitated a separate study that focuses strictly on Anchorage. The research provides a snapshot of the demographic and economic contributions of immigrants in Anchorage. For example, 8.5 percent of Anchorage’s population, 1,831 foreign-born people, are business owners, generating $37 million in business income. Foreign-born residents are more likely to start businesses than their US-born counterparts. Also, foreign-born residents in Anchorage contributed $1.9 billion to the city’s gross domestic product in 2014. That same year, they held $573 million in spending power, which was 7.3 percent of the municipality’s total spending power. In the area of taxes, Anchorage’s foreignborn population in 2014 contributed an estimated $136 million in federal taxes and $27 million in state and local taxes (including property, excise, and corporate income taxes). Immigrant households in Anchorage contributed $82 million to Social Security and $20.9 million to Medicare in 2014. The Anchorage research also shows that immigrants help combat unemployment rates. Even though foreign-born residents comprised 8.5 percent of Anchorage’s overall population, they made up 10.3 percent of its employed labor force and 14.2 percent of its self-employed population in 2014. And these new Americans are overrepresented in Science, Technology, Engineering, And Math (STEM) occupations. In 2014, foreign-born residents represented 9.6 percent of STEM workers in Anchorage. “Some people think of immigrant workers as being dishwashers or cooks,” says Kimmel. “This research shows that these are people who can make a huge difference in our tech advancement and intellectual capital—and in changing our lives.” The New Americans in Anchorage research is innovative and much-needed, according to Kimmel. “It’s reconfiguring data to make it understandable to us as a community,” she says. “We need reliable data to make good policy decisions. For far too long immigration policy has been dictated by stereotypes and misinformation. These reports give us necessary information to make good policies for our economy.” American Immigration Council Research Another recent study by the American Immigration Council also paints a positive picture of the financial impact of immigrant entrepreneurs in Alaska. According to the council’s May 2015 New Americans in Alaska report, there were 3,394 “new immigrant” business owners in Alaska from 2006 to 2010. These entrepreneurs had a total net business income of $160 million—which was 7.8 percent of all net business income in the state. “Not just here in Alaska, but nationally, immigrants punch well beyond their weight class,” Bittner says. Many people think of mom-and-pop and other small-scale operations when they think of immigrant-owned businesses. But foreignborn entrepreneurs also run large enterpris-

Alaska Business | May 2017 www.akbizmag.com

es, including tech firms and medical companies, according to the council’s research. And immigrants are two to three times more likely to start businesses than native residents of Alaska. “Immigrants are self-motivated and confident and feel they have the skills to bring to bear,” says Bittner, offering a possible explanation for immigrants’ penchant for business ownership. The council’s New Americans in Alaska report also reveals that immigrant Latino and Asian entrepreneurs and consumers add billions of dollars and thousands of jobs to Alaska’s economy. The 2014 purchasing power of Latinos in Alaska totaled $1.6 billion—an increase of 588 percent since 1990. Asian buying power totaled $1.7 billion—an increase of 465 percent since 1990. Alaska’s 2,148 Asian-owned businesses had sales and receipts of $477.4 million and employed 4,219 people in 2007, the last year for which data is available. Kimmel emphasizes that the recent studies help shed light on the contributions and value that immigrants bring to the community. “This is not really an investment in the traditional sense where we have to pay in to get a return,” she says. “We’re not really giving up anything; rather, we are reaping benefits simply by opening doors for people to fully participate in our economy.”

Welcoming Anchorage Anchorage is committed to fostering a welcoming environment for immigrant entrepreneurs like Shumaker and Mariscal—and everyone else. In 2014, Anchorage joined the Welcoming Cities project, which includes cities nationwide that recognize the economic, cultural, and social contributions that immigrants and refugees make to their communities. As an outgrowth of the project, the city launched Welcoming Anchorage, a collaboration between the Municipality of Anchorage, the Anchorage Economic Development Corporation, and local businesses and organizations. Welcoming Anchorage has five pillars: employment and entrepreneurship; civic engagement; connected, safe, and healthy communities; equitable access; and education. The Welcoming Anchorage concept is also clearly displayed on the municipality’s website. In her welcome message, Anchorage First Lady Kimmel states: “As Alaskans, what matters is our willingness to extend a hand, not what color or political persuasion or sexual orientation may be on the other end of that hand…We stand together in kindness and grace. We are grateful for being welcomed into this incredible land by those who came before us, and we are eager to welcome all who are committed to ensuring a safe and happy home for generations to come.” In the same spirit, the Cook Inlet Housing Authority, Municipality of Anchorage, and AEDC recently implemented a $30,000 grant from the Michigan-based Kresge Found ation to explore how to accommodate more local businesses. Their efforts could result in the creation of a new “pop-up” business program—based on the Revolve Detroit program that Kresge helped begin—and would www.akbizmag.com

May 2017 | Alaska Business

Photo Courtesy UAA

of entering the workforce and starting small businesses,” Robinson says. Preliminary research to determine the feasibility of the program should be completed in August, Robinson says.

Christi Bell, Associate Vice Provost & Executive Director of UAA’s Business Enterprise Institute

focus on serving immigrant and minorityowned businesses, according to Tyler Robinson, director of development planning and finance with the Cook Inlet Housing Authority, which is overseeing the grant. “We felt it was important that the program has some element of working with populations that have some of the biggest challenges

Global Entrepreneur in Residence Position at UAA The UAA Business Enterprise Institute appreciates the importance of immigrant businesses in Alaska. As a creative move, UAA recently developed a new Global Entrepreneur in Residence (GEIR) position to advance the entrepreneurial ecosystem of Alaska. This will provide a unique opportunity for an experienced entrepreneur to launch or grow their startup in Alaska while working parttime at UAA to mentor start-up companies and help with local entrepreneurship ecosystem development, according to Christi Bell, associate vice provost and executive director of UAA Business Enterprise Institute. As of the end of March, UAA was close to identifying the ideal candidate to fill the GEIR position. That person would need to be familiar with university environments as well as experienced launching, growing, and exiting an entrepreneurial enterprise. “By finding an individual who’s ‘been there and done it’ on an international scale, we can not only advance our own thinking regarding challenges we’re facing but also provide an opportunity for Alaskan entrepreneurs to access global knowledge and networks,” Bell says. The GEIR program, which has successfully

been deployed at other universities throughout the country, will provide a platform for the Business Enterprise Institute and Alaska Pacific University to retain or attract highly skilled immigrant entrepreneurs by giving them access to visas. In return, GEIRs will serve as expert mentors to UAA and Alaska Pacific University’s entrepreneurial-minded students and faculty, ensuring that Alaska’s next generation of entrepreneurs, tech leaders, and innovators will be well supported and globally connected, according to Bell. It’s not likely that UAA will have a GEIR in place until mid-June, Bell says. When that happens, the GEIR will add a unique element of diversity to the university. Studies show that diversity on boards or senior leadership result in financial gains and leads to higher quality research and that racially diverse groups out performed non-racially diverse groups. Opportunities to learn from people with different business and life experiences are essential to developing new ways of thinking, according to Bell. “Informational diversity adds depth and breadth to research, policy, and projects,” Bell says. “With regard to the entrepreneurial ecosystem in Alaska, the GEIR will bring unique information and experiences to bear, allowing all of us to grow and examine entrenched ways of thinking.” R

Tracy Barbour is a former Alaskan.

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PHILANTHROPY

LEFT: Ralliers from local nonprofits, including Alyssa Bish from the Alaska World Affairs Council, Zulie Mason from The Rasmuson Foundation, and Kevin Gray from the Alaska Community Foundation support the Pick.Click.Give. program. Photo by Beth Rose

BELOW: Ralliers from local nonprofits in Kodiak turn out to support philanthropy in Alaska. Photo by Craig Johnson

Pick.Click.Give. Alaskans Supporting Alaska By Sofia Fouquet

hen it comes to volunteering on a national level, Alaska consistently ranks near the top of the list. While the Last Frontier doesn’t rank as highly in individual giving, there is one charitable activity where we shine like the midnight sun. “Giving Days” have blossomed around the country as communities look to cultivate home-grown philanthropy and boost civic pride. Normally 24-hours in length, Giving Days unite citizens, nonprofits, and businesses within a geographically-defined area around a common goal. Sometimes the area is a city, such as Seattle’s Give Big campaign, and sometimes a state, like GiveMN in Minnesota. In some cases, even colleges host their own private giving day events. In Alaska, we have the state-wide Pick.Click. Give. (PCG) campaign. Many factors make this program unique, including the high rate at which we participate in PCG compared to other states and regions. For the past several years, roughly 5 percent of Alaskans who filed online for their Permanent Fund Dividend (PFD) made a donation through PCG. This year didn’t surpass the records set in 2015 and 2016, but the 4.8 percent participation in 2017 shows a solid commitment to philanthropy despite an uncertain economic climate. This means Alaskans participate in statewide giving campaigns at significantly higher rates than residents of other states. About 28

0.5 percent of Utah residents gave during the 2015 Love Utah, Give Utah campaign. The North Texas Giving Day saw participation rates of about 2 percent of their community. And 3 percent of Colorado residents made a donation during the Colorado Gives Day. There are a couple of notable differences between PCG and other Giving Days: The PFD creates an opportunity to give using a truly unique vehicle. Connected to the PFD application, donors can use PCG to seamlessly divert donations in increments of $25 to a variety of causes around the state. There is no easier way to make a donation. No other Giving Day has the advantage of a PFD. Additionally, no other Giving Day lasts for ninety days. That’s a long time to run a statewide campaign as Alaskans increasingly wait until the last weeks in March to file. Giving Tuesday, possibly our nation’s most well-known giving day, debuted in 2012. Displaying its pioneering spirit, Alaska launched a PCG in 2009, well ahead of Giving Tuesday’s 2012 unveiling. Not only was PCG one of the earlier Giving Day campaigns, it has proved to be among the more successful. Filing for the annual PFD is one of the most uniquely Alaskan things we do. Likewise, when we make that gift through PCG at the end of the application, we do it because it

speaks to who we are as individuals and how we connect to the things we value. To date, PCG has raised nearly $20 million for causes Alaskans care about. PCG does more than raise funds: it illuminates how communities are enriched by their non-profits and create a culture of giving and citizen engagement. Many aspects of the Alaska economy are uncertain. As we move forward, however, one factor remains constant: Alaskans are visibly coming together to help each other weather hard times. Pick.Click.Give. is honored to be a vehicle for Alaskans to support the philanthropic efforts that strengthen our communities across the state. As of April 3, 26,128 Alaskans pledged 44,136 individual charitable gifts totaling $2,702,450 to 668 nonprofits through the Permanent Fund Dividend Charitable Giving Program Pick.Click.Give. is coordinated through a partnership including the Permanent Fund Dividend Division of the Alaska Department of Revenue, the Rasmuson Foundation, the Alaska Community Foundation, United Way of Anchorage, and The Foraker Group. R Sofia Fouquet is Pick.Click.Give.’s program manager.

Alaska Business | May 2017 www.akbizmag.com

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EDUCATION

Q&A with Jim Johnsen, President, University of Alaska Alaska Business Monthly: One goal of the University of Alaska’s Strategic Pathways is to develop a highly skilled workforce for Alaska jobs. How many students will graduate from the University of Alaska this May? Jim Johnsen: While we won’t have exact numbers until late May, we anticipate approximately 4,700 students to graduate from the University of Alaska (UA) in 2017. We’re very proud of our graduates and we look forward to watching them grow into Alaska’s next generation of leaders. That said, there’s more we need to do. Our state is currently facing a variety of challenges, and we believe that education and innovation will drive the change that we need to build the Alaska of tomorrow. The single most important factor in building a competitive and sustainable economy in Alaska is developing our talent. UA does that by providing high quality, affordable, and accessible academic and vocational programs. By 2025, 65 percent of the jobs in our economy are projected to require workers to have some post-secondary training. The last time this was measured, Alaska met 37 percent of this need. If K-12, vocational programs, other Alaska institutions, and UA education can prepare Alaskans for these jobs, Alaskans will fill them. Otherwise, Alaska will continue to face a shortage of skilled employees and will need to import labor from outside or do without even as unemployment in Alaska continues to rise. We’re working to inspire Alaskans to join us in meeting this 65 percent by 2025 goal with a new, privately-funded campaign. Alaskans can find out more and sign up to be part of the change that Alaska needs at www. drivechangeak.org. ABM: What jobs will they fill in Alaska? How many of those coincide with current labor market demand? Johnsen: The university system has more than 400 degree and certificate programs and our 2017 graduates will head out into the world with diverse thoughts about what they want to do with their lives. Healthcare is the sector of the economy that will employ many of our grads. We’ve seen about 70 percent growth in healthcare graduates and students since 2002, and we expect that sector to continue expanding in the future. About one in every twelve jobs in Alaska is related to healthcare. From 2015 to 30

2016, healthcare employment increased by 2.6 percent (900 jobs) with modest growth of about 1.4 percent (500 jobs) predicted for this year, according to the Alaska Department of Labor & Workforce Development in the January 2017 Alaska Economic Trends. Opportunities continue to grow in this field throughout the country. According to the Bureau of Labor Statistics, the healthcare industry added 357,000 jobs nationwide from

February 2016 to February 2017. While there’s been contraction in many economic sectors overall, most jobs require some postsecondary training. The University of Alaska holds a unique educational position in the world as America’s only Arctic university. Many UA science postgraduates and even undergraduates are already working on research that is shaping the future of the Arctic and beyond.

Alaska Business | May 2017 www.akbizmag.com

The Alaska oil and gas market is contracting, but our engineers, oilfield, and mining service professionals continue to find work in Alaska in the resource development industry. Beyond immediate employment, attaining higher education is associated with more income, a stronger and more diversified economy, better health, more civic engagement, and producing citizens who give back to the communities in which they live and work. That’s great for families, business, and for the future success of our children. For me personally, one of the great benefits of keeping our graduates in Alaska is the fact that because they love the state, they are well positioned to innovate and create new enterprises to serve our state for years to come. ABM: Who are this year’s University of Alaska graduates? Johnsen: The number and types of graduates in 2017 are expected to be similar to those in 2016 based on our enrollment patterns and overall trends. Of the degrees, certificates, and endorsements awarded, about 39 percent are bachelor’s degrees, 28 percent associate degrees, 19 percent graduate degrees and licensures, and the remaining 14 percent certificates and occupational endorsements. The most popular degrees across the system are in business and public administration followed by health. Vocational education is the next highest category with the highest volume coming from associate degrees followed by certificates and occupational endorsements. These include a variety of disciplines such as welding and construction, aviation and mechanics, culinary arts, and computer electronics. Liberal arts disciplines and education make up the next two categories. Math, engineering, and social sciences comprise the bulk of the remaining degree areas, with smaller numbers graduating in computer and information sciences, foreign languages, visual and performing arts, and interdisciplinary studies. The highest number of graduate degrees are awarded in management, education, math, and physical and life sciences, followed by natural resources, engineering, and social sciences. ABM: Help us understand why the School of Education was moved to the UAS (University of Alaska Southeast) campus. When will this portion of the Strategic Pathways reorganization be fully implemented and how will it serve to increase the number of teachers graduating from the University of Alaska? Johnsen: The Strategic Pathways initiative was approved by the Board of Regents in January 2016 to make the university stronger, more cost effective, and more accessible. As you know, the state is experiencing a significant budget crisis and the university system is working hard to find www.akbizmag.com

efficiencies while maintaining the highest standards of educational excellence. At the same time there is an urgent need to increase the number of teachers working in Alaska who come from and are trained in Alaska. Currently 70 percent of the teachers hired each year come from outside Alaska. Annual teacher turnover in rural Alaska school districts is as high as 50 percent. Strategic Pathways is about ensuring greater accountability to meet Alaska’s needs for more Alaska-prepared educators. The goal of the university is that by 2025, 90 percent of new teachers hired in Alaska will be trained at UA. This is a huge lift from current numbers and will require new ways of attracting Alaskans to the profession and providing training throughout the state. Pending approval by the Northwest Commission on Colleges and Universities, the new structure for the College of Education will be a consolidation of the administration. Education faculty, students, and classes will remain at the various campuses across the university system. The College of Education’s dean and administration will be housed at UAS. This move will consolidate three separate administrative offices to one at UAS. Education faculty throughout the system— in Anchorage and Fairbanks—will report to the College of Education at UAS. By focusing a single, collaborative College of Education on UA’s strategic goals, aligning programs with K-12 to strengthen the system, focusing on teacher quality, streamlining hiring and placement of UA graduates, enhancing mentoring programs and career development for new teachers, and raising the prestige of the profession, we can meet these goals. Through a single-school approach there will be increased consistency in degree programs, increased collaboration among faculty, more support for innovation, and increased nimbleness and simplification of governance processes, all while increasing productivity and cost-effectiveness. It’s important to note that students will not have to move to Juneau to earn their teaching degrees and certifications, nor to earn continuing education credit; courses and programs will be available at all three universities regardless of the administrative base. The full implementation of this change is dependent upon approval by our accrediting agency, the Northwest Commission on Colleges and Universities. We have amazing faculty and staff in the College of Education and I know students studying to become our future teachers will be well served. ABM: The goal of providing 90 percent of the new teachers hired each year is a bit nebulous. Can you put numbers to that? Johnsen: In FY16 approximately 2,000 students were enrolled in education programs as their primary majors at all levels, and UAA, UAF, and UAS awarded a total of 429 education degrees.

The most recent study on teacher hires, completed in 2013, reports that about 70 percent of teachers are hired from outside Alaska—around 800 teachers each year. Approximately 16 percent of new teachers are UA graduates, and the other 14 percent are teachers in Alaska returning to the classroom after an absence (taking leave, working in another field/state, etc.). Overall, about 30 percent of educators in Alaska are UA graduates and they tend to stay teaching in Alaska much longer than the teachers prepared outside Alaska. ABM: What other colleges and programs are going to be integrated and consolidated within the UA system’s sixteen campuses as part of Strategic Pathways? Johnsen: There are twenty-three different areas under consideration, and work is underway to determine how each recommendation will be implemented. We have yet to determine the final disposition of each area, since decisions are made after a complete and inclusive process. There are no pre-determined consolidation plans. Many have expressed concern about possible consolidations. I’ve listened to those concerns and suggestions from our faculty, staff, students, and the community and have implemented a number of their recommendations including slowing down the review process somewhat and implementing a cost-benefit analysis of Phase 2 and 3 options. We are striving for a process that is inclusive, transparent, and goal driven, and I am implementing improvements as we learn what works well. I want to highlight that more than 250 faculty, staff, students, and community leaders have participated on our review teams. Literally thousands of hours have been spent generating and analyzing seventy-five different options for improvement, with more to come. Thousands of messages from our communities have been reviewed by management and the Board of Regents. As a result of Strategic Pathways, I am confident we will make better decisions and have a stronger university. ABM: Tell us about the university’s research programs and their impacts on diversifying the economy. Johnsen: Our world class research is a huge asset for the university. Research enhances our reputation, strengthens the training our students receive in our labs and in our classrooms, solves real problems we face in Alaska, and contributes to Alaska’s economic development and diversification. After all, tech firms in Silicon Valley and in the research triangles around the country are not there just because the weather is nice. They are there because of Berkeley, Stanford, and Michigan and because of the talented, well-educated, innovative workforce they can draw upon. To that end, we are stepping up our focus May 2017 | Alaska Business

on the commercialization of our intellectual property and I look forward to seeing UA ideas and technologies as the foundation for new businesses that strengthen our economy and provide quality jobs for Alaskans. But we have some challenges. We must retain our star researchers in a very competitive research labor market. As other states’ economies are doing a lot better than ours, they are able to invest in their universities’ capacity to compete in the increasingly important field of Arctic research. We are making strategic investments in our research programs including in the Alaska Center for Energy and Power and in the Institute of Social and Economic Research. With regard to the Strategic Pathways review of research administration, we are looking at some consolidation of administrative functions at UAF, the primary research university in the system, but important research will continue to be conducted throughout Alaska through all three universities. ABM: Why choose the University of Alaska for post-secondary, advanced degrees and certificates, and post-graduate education? Johnsen: It takes a great university to build a great state. The University of Alaska is a high quality, affordable choice for those Alaskans who want to change their lives. Alaskans set their goals, and our job is to help them reach those goals. We believe the University of

Alaska changes everything—it changes lives, our possibilities, our future, and our state. Let me also add that:  We have proudly served Alaska for one hundred years through research, teaching, and service.  We have grown from one campus in 1922 to fifteen campuses today, from Ketchikan to Kotzebue.  We graduated 1 person in 1923 and 4,700 this last year.  We have risen from a remote territorial college in the far north to the number one university in the world in Arctic research.  We are recognized as the number one most affordable state university system in the nation.  We are the number one producer of workforce in Alaska.  We are the number one research organization in Alaska, providing real solutions to real problems.  Last and most important, we are strong because of our people:  Our students: who seek skills, knowledge, and a brighter future full of opportunity,  Our faculty: who have committed themselves to the noble cause of discovery, teaching, and serving society,  Our staff: who give it their best every day to support our educational mission,  Our alumni: who carry our flag out into the world, working all across our state, creating new businesses and solving the state’s problems, and giving back to the university that moved them forward in life,

 Our partners: employers, communities, agencies, and the many others across our state and the country who help advance our work,  Our donors: who pay it forward with their own resources, whose generosity enables our students to realize their dreams, whose foresight provides our university a margin of excellence in all we do,  Our leaders and all with Alaskan values: the grit, perseverance, work ethic, commitment, and respect for each other no matter what city or village we call home. ABM: Where are the best job opportunities for Alaska graduates? Johnsen: The university is the number one producer of workforce in Alaska. When the healthcare sector asked us to graduate more nurses, we did. When the engineering sector asked us to double our graduation of engineers, we did. As mentioned earlier, healthcare is forecasted to continue to grow in the years ahead and we are well positioned to meet that workforce need. When the oil and gas industry asked us to train more process technicians, we did. Now the education sector is asking for more Alaskan grown teachers and I can say with confidence that we will! I believe our graduates will continue to find opportunity in many sectors of the Alaska economy, particularly those who are innovators, researchers, teachers, engineers, nurses, and in the trades. R

Alaska Business | May 2017 www.akbizmag.com

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Photos provided by United Way of Anchorage

EDUCATION

Inspiration + Aspiration = Motivation Helping kids get back on track to graduate By Tom Anderson

ho remembers high school and all of the classes you endured? You likely maneuvered through a diverse curriculum and swath of subjects. Oh, so many subjects. Not to mention social interaction and the emotional ebb and flow of peer connectivity. Toss in the computer age and the growth of social media, and high school becomes a whirlwind of data, burgeoning intellect, and social maturation, all swirling through a torrent of adolescence. Whether or not you enjoyed your math and science classes, you’ll likely find that, you’ve benefited from what you learned during those hours of lessons. From secretary and store cashier to bank teller, nurse, and engineer, an understanding of math is vital to professional suc34

cess. Then there are basic scientific tenets that complement myriad jobs and personal efforts and may not even be recognized for their utility. We need science for everything from weather interpretation (What’s the temperature today?) to vehicle repair and measuring temperatures for cooking and baking. The aviation, medical, engineering, and construction trades, among others, are all dependent upon science. Nearly all subjects in our secondary education curriculum have practical uses, which is why education and graduation are critical steps toward securing gainful employment. All children should go to school and learn. This is a global directive. The expectation is even enshrined in our state’s constitution. Yet completing a basic education (K–12) is not just about honoring family, intellectual growth, and the pride of accomplishments. It’s also tangible. It’s about future employment, income, and the ability to provide for one’s self and family. The community in which a gainfully employed citizen works is also rewarded, making education integral to business.

Odds are if you’re reading this article you’ve at least graduated from high school and can appreciate the pleasant and painful gauntlet of 9th through 12th grades. Do you remember the ultimate sense of inspiration that accompanied your achievement? It’s a remarkably empowering feeling to graduate. But what if you don’t graduate? What if you lack the tools or time to finish high school, earn a diploma, and prepare for the job market? Where are the cheers, praise, and coveted career opportunities for those who drop out of high school? You can guess the answer. They simply aren’t there.

Enter Aspire AT&T is a household name when it comes to telephony and phone service. Alaskans depend on AT&T’s cell service across the state. With more than 500 employees in Alaska, and operation and retail centers statewide, the company thrives on community engagement. One community program that has made national news, and appears to be making a remarkable difference in graduation rates is the Aspire Grant. Billed as an education initiative, the grant targets the mobilization of learning, career skill development, networking through educator mentorship, and direct academic support to earn a diploma. In the fall of 2016, it was announced that United Way of Anchorage would receive $750,000 to support its “Back on Track” initiative in partnership with the Anchorage School District and Covenant House. “We have a long history of investing in projects that promote learning opportunities,” says Shawn Uschmann, AT&T Alaska’s director of external affairs. “We truly believe there may be no better indicator of future

Alaska Business | May 2017 www.akbizmag.com

“Young people need a high school diploma to stay on track for college and later career success. AT&T has a huge stake in making sure we have an educated workforce,” he adds.

—Shawn Uschmann Director of External Affairs, AT&T Alaska

success, whether for an individual or in communities across the nation, than educational achievement. That’s why Aspire is making a difference in Alaska.”

www.akbizmag.com

Uschmann explains the $750,000 was part of a $10 million national initiative, and only eighteen recipients were selected with Alaska’s award nearly double the next highest grant in other states. “Young people need a high school diploma to stay on track for college and later career success. AT&T has a huge stake in making sure we have an educated workforce,” he adds. Laura Brown, senior director of communications for United Way of Anchorage, adds that the vision and message from all of the participants in the Aspire programs is recognition of the importance of businesses and the community in supporting our children through graduation and as they start out in the workforce. United Way recognizes graduation rates impact the economy, the availability of skilled workers, crime rates, and the Anchorage economy. Through AT&T’s Aspire Grant and funding of the “Back on Track” initiative, at-risk students can recover lost high school course credits. Petroleum company, BP Alaska, is injecting an additional $30,000 for costs not covered by the grant.

The 90% by 2020 Partnership supports the Aspire directive. According to its website, more than forty of Anchorage’s business, education, nonprofit, and community leaders have joined forces to drive a 90 percent graduation rate in Anchorage by 2020, with United Way of Anchorage providing backbone support to bring participants together, build public will, mobilize funding, and engage volunteers.” To help show grads the community is behind them, United Way and the 90% by 2020 Partnership honor graduating students through Grad Blitz (see sidebar). For kids at risk, knowing that people want them to succeed and are supporting their effort is key to their future success.

Covenant House—Empower Knowledge with Compassion Most Alaskans, particularly in Anchorage and Mat-Su, have heard of Covenant House. Its name is synonymous with support and safe haven for homeless youths, while typically limited in resources and funding to perform such vital services.

May 2017 | Alaska Business

Graduation Blitz 2017

Unfortunately, the annual number of clients walking through the facility’s doors is rising. Worse yet, the depth in circumstance and region, from abuse to drug addiction, is staggering. Carlette Mack, the organization’s acting CEO, cites the nonprofit’s website as a resource, with statistics indicative of a growing problem. Each year, approximately 2 million youth experience homelessness in the nation, with more than 5,000 living on the streets. Covenant House, which has a shelter capacity of sixty beds, reached full capacity this year and consistently reaches its client ceiling, even with one hundred employees providing support. In 2016, 2,300 youths were served with even more waiting for the opportunity. Covenant House’s vision is to protect Alaska’s youth. A guiding mantra is that homeless kids have the right to safe shelter, food, guidance, and education. Particularly with regard to the education component, the governing principles include immediacy, sanctuary, communication, structure, and choice. “We have kids coming into our facility who have suffered neglect, trauma, malnutrition, abuse and abandonment, and sadly, sometimes all of the above,” says Mack. “That’s where the Aspire Grant, through AT&T, Anchorage 36

Congratulations to the class of

20 7 #2017ANCGRADS

Grad Blitz posters are available at United Way offices starting April 25; there are also graphics at www.liveunitedanc.org/gradblitz.

School District, and United Way, is making such a profound impact on children that have essentially been forgotten and now have hope and resources to complete a high school diploma.” Mack explains Covenant House has had a daytime education program and curriculum for more than twenty-five years through their partnership with the Anchorage School District’s “Child in Transition” program, but that wasn’t effective for teen residents who work during the day. “Our focus is helping educate our residents on the fundamentals of financial independence, successful employment and careers, and basic life skills interwoven between income and work,” adds Mack. “The hitch remains how to accomplish instructing on these life skills and rudiments with a minimal to non-existent budget.” Mack views the $750,000 Aspire Grant as a lifeline to enhanced education opportunities for the community’s youth, particularly in the funding of new evening courses. When students have to balance work, family, and education, the evening class model is the most efficient path toward graduation.

Anchorage School District— Always a Team Player Dave Mayo-Kiely is the coordinator for Anchorage School District’s (ASD) Child in

Working together we will continue to raise the graduation rate and get our youth on the path to success. R

Transition/Homeless Project. Since 2009, he’s been working within the district, and alongside nonprofits like Covenant House, to ensure kids have the academic and career-building opportunities to thrive. Prior to his position with ASD, Mayo-Kiely worked in youth development, human services, and within advocacies preventing and ending homelessness. He explains that his program and the Aspire Grant’s purpose are critically important in affording essential services to homeless students. ASD covers the gamut for these high-risk (of dropping out) students, from transportation to school to emotional and logistical support services, even providing backpacks and school supplies, as well as winter gear for elementary kids. The classroom and academic dimension of the support are where Aspire and Covenant House make their impact. Mayo-Keily says United Way of Anchorage led the application process for the Aspire Grant in 2015. ASD has partnered with Covenant House since its inception in the early 1970s. He notes the grant can’t be used for school district personnel compensation; that’s where the additional funds from BP Alaska helped out. The Covenant House classroom, with day classes, and now the evening class

Alaska Business | May 2017 www.akbizmag.com

Graphic provided by United Way of Anchorage

nited Way of Anchorage and the 90% by 2020 Partnership believe that all kids should be ready, successful, and prepared for life. To further that belief, we’ve set a goal of reaching a 90 percent graduation rate for Anchorage high school students by the year 2020. We have partnered with individuals, businesses, and organizations communitywide to work with schools and families to find solutions to the issues that undermine student performance. Over the past decade, with your help, graduation rates in Anchorage increased from 59 percent to 80 percent, thanks in part to a groundswell of community support for our youth. To help bolster that commitment we’re blitzing our community for the third consecutive year with messages of support and pride for our graduates. Grad Blitz is our way of helping honor the class of 2017 with messages of support and pride for all of our graduates, from Chugiak to Girdwood, and let the business community show we are proud of their accomplishment and inspire future grads by reinforcing the message that graduation is an important milestone we value as a community. Join the Grad Blitz movement from April 26 through May 20 by displaying a poster congratulating the class of 2017. Snap a photo of colleagues, family, and friends with the Grad Blitz image and post it on social media with the hashtag #2017ANCGRADS. With three easy steps we’ll show current and future high school graduates that we recognize and appreciate all the hard work and dedication it takes to make it to graduation day.

“We’ve already graduated seven students between January and March of 2017 thanks to the evening class funded by the Aspire Grant. It’s a huge impact. There are students that get close to graduating, and then they don’t or can’t finish for various reasons. This program is a great way to get kids to graduate and encourage them to transition into the workforce having earned their diploma.”

—Dave Mayo-Kiely Child in Transition/Homeless Project Coordinator, Anchorage School District

facilitated through the Aspire monies, is part of ASD’s Anchorage Vocational Academic Institute of Learning (AVAIL) program. AVAIL represents an alternative high school focusing on students who have dropped out of the ASD entirely. The age range is sixteen to nineteen, with a maximum capacity of sixtyfive students. The website for AVAIL says that it is “designed to help students return to the educational system and obtain skills for employment with an emphasis on earning a high school diploma.” Listed business partners include Alaska Club, Midnight Sun Café, Purnell Photography, and Wells Fargo. Mayo-Keily says the new evening class offers students who are employed during the day the opportunity to complete their credits and receive career-goal mentorship. Three ASD teachers come to Covenant House in the evenings, af-

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ter they complete a day’s work in their respective schools. The students use Apex, an online course for credit recovery and exit exam remediation. The students are supported with transportation, supplies, a computer in the classroom, glasses, clothing, if needed, and a meal at the Covenant House dining room during their evening studies. The classroom seats twenty and laptops are supplied through Aspire funding. Quizzes and tests are given through Apex, and overseen by ASD teachers and Mayo-Keily. “We’ve already graduated seven students between January and March of 2017 thanks to the evening class funded by the Aspire Grant,” says Mayo-Keily. “It’s a huge impact. There are students that get close to graduating, and then they don’t or can’t finish for various reasons. This program is a great way to get kids to graduate and encourage

them to transition into the workforce having earned their diploma.”

Education Support Making a Difference in the Economy It’s clear that corporate support of educational programs generates benefits throughout the community. The genesis and ultimate disbursement of the Aspire funds could even be a case study for other businesses as they seek innovative ways to encourage graduation and employment of Alaskan youths. Covenant House hired a case manager for its new evening courses in November 2016, and that manager has been working since the start of the 2017 semester to ensure the classes and curriculum function effectively, alongside ASD teachers who instruct the students. And their efforts are producing results. As of the beginning of April, more than fifty students have enrolled in the program, with more signing up each week. “We really rely on our community to support our youth, especially in these tough economic times,” says Mack. “Through Aspire funding and AT&T’s generous help, youth residents at Covenant House suffering from serious trauma and drug addiction are refocusing on learning and accomplishment. Their scholastic achievements are empowering esteem and ambition, which in turns strengthens Alaska’s commerce and labor workforce development.” R Tom Anderson writes from across Alaska.

May 2017 | Alaska Business

EDUCATION

Flight Schools Gear Up for Pilot Shortage Plenty of options for Alaskans who want to learn to fly By Rob Stapleton

t a time when more flight schools are needed to fill the left-hand seat of airline aircraft and to fly for Alaska commercial part 135 Carriers, flight schools are having a difficult time nationally. A Boeing report indicates that in the next twenty years the industry will need to fill 1.2 million aviation job positions: 600,000 pilots and 600,000 support jobs, such as mechanics, air traffic, and support positions. Owners of flight schools are citing a lack of competent flight instructors with flight time in Alaska as their biggest challenge.

UAA Aviation Located at the Merrill Field campus in Anchorage, the UAA Aviation Division is taking the pilot shortage seriously. The program’s new director, Ralph Gibbs, promises to make UAA a top contender for airlines to recruit its graduates and for students to receive industry desirable training, ratings, and degrees in aviation. “In a word, UAA Aviation is working to increase the availability of aviation expertise to the aviation industry’s projected worldwide shortfall,” said Gibbs to the Alaska Air Carriers Association. Gibbs outlined a program to add four new degrees that will fill 285 seats, namely Aviation Maintenance, Air Traffic Control, Administration/Management, and pilot programs. Gibbs, a former US Marine, wants to merge military, general aviation, and airline training practices to provide an increased training structure. This will be done by using a Jeppesen-like training template for private, instrument, commercial, multi-engine land, and certified flight instructor training and merge it with the Naval Aviation Training Command syllabus format. Gibbs pointed out the need for a twin-engine aircraft for the program. “This is a choke point in the UAA pilot training program… Do we have anyone out there that would like to donate a Piper Navajo to the program?” Gibbs asked. 38

Sky Trek Alaska, owned by Jamie Patterson Simes, specializes in refresher flight courses, passenger confidence education, certificate upgrades, mountain flying, and tailwheel endorsement courses.

Gibbs told the Alaska Air Carriers Association that modifying the university’s aviation program will include mid-course adjustments to thwart student complacency. “The program will also include rewards, and one will be called the ‘Flying Sea Wolf Award’ for excellence of airmanship. We will also offer a 1,000-hour certificate using a special Federal Aviation Administration (FAA) Restricted 1,000 hour ATP program,” Gibbs says. This will be offered to graduates of the Bachelor of Science, Aviation Technology, Professional Piloting program. This program is only offered under the UAA FAA Part 141 Certificate.

ProFlite ProFlite LLC of Fairbanks is the largest flight school in the state and is located in the Interior where aviation took off in 1913. With ten aircraft and seventy students on a regular basis, Mike Morgan and wife Kristi Palmer started the school in 2012. ProFlite is FAA certified in both Part 141 and Part 61 flight instruction. A part 141 School has an FAA approved syllabus and outlines that meet student pilot performance rates. Part 61 requires more hours of flight time and instruction. “We operate in an airline fashion using airline safety and Medallion Foundation safety programs for instruction,” says Morgan. Acting as equal partners, Palmer has FAA certifications as a private pilot, advanced ground and instrument instructor ratings, is a certified dispatcher, and is working on an instrument rating. Morgan is chief flight instructor for the school and possesses CFII and MEII ratings. “When this was started, there were two other flight schools and several instructors flying on the field, and one at Metro Field,” Morgan reflects. “We are now the only school at the airport.” ProFlite is located on the East Ramp near

the tower at Fairbanks International Airport. The company’s fleet of aircraft can be used for instruction and for pilot rental. Its fleet is comprised of Cessna 152, Cessna 172, and Piper Cherokee, mainly used for primary instruction and by private pilots. For instrument and commercial licenses, they have a single engine Piper Arrow II for complex flying and a PA30 Twin Comanche, and they offer tailwheel endorsements with a Citabria 7ECA and a Super Cub on floats. The staff has more than one hundred years of aviation experience and 50,000 hours of flight time. The school has soloed dozens of pilots, many who have gone on to becoming private pilots; others have achieved commercial pilot and flight instructor status. Using word of mouth marketing, Morgan says, the school offers the best flight training: thorough checkouts to rent its aircraft, CATS testing, aircraft dispatch training, an aviation weather course, and a Medallion Foundation flight simulator. ProFlite also has a contract with the Nenana High School for flight instruction. “Most of the flight instructors who come here need to be re-taught,” Morgan says. “We do things here like the airlines operate so that our pilots will not just pass the written test or the flight test but will be able to know how an airplane flies and understand its systems.” Morgan has been flying for forty years, has 15,000 hours of flight time, airline management experience, and is an aviation meteorologist. ProFlite uses a systematic approach which is a combination of flight instruction with seven instructors and ground instruction using the Jeppesen syllabus and online course. Students are not allowed to skip forward or to miss a module. If they do, they cannot move ahead with their training. Each module must be signed off by the student’s instructor.

Alaska Business | May 2017 www.akbizmag.com

The school also offers an FAA Certified flight dispatch course, and Morgan offers a two-day Aviation Meteorology class periodically. “Every good flight requires the best information and decision making based on weather. A flight without checking and knowing about the weather is taking a chance; it is either launch or stay grounded. It’s all about good decision making,” says Morgan.

Mike Morgan (pictured left) and wife Kristi Palmer started ProFlite LLC in Fairbanks in 2012. ProFlite is certified in FAA Part 141 and Part 41 flight instruction.

Sky Trek Alaska Flight instructor Jamie Patterson Simes started Sky Trek Alaska in 2014 at Merrill Field. Located in a vintage building on the Fairview side of Merrill Field at 1570 East 12th, Simes has modified the building as a hangar and flight school, complete with a fireplace, kitchen, and weather briefing area. Sky Trek Alaska has two aircraft, a Cessna 152 and a Cessna 172, complete with a WAAS enabled Garmin GNS430 GPS, and can take entry level students up to commercial and instrument ratings. The school specializes in refresher flight courses, passenger confidence education for those friends and family members flying in the right-hand seat, certificate upgrades, mountain flying, and tailwheel endorsement courses. Sky Trek Alaska was named by the Aircraft Owner and Pilot Association as an Outstanding Flight School in 2016. The school was rated on its educational quality, customer focus, community, and information sharing. “My students and instructors thought enough of us to write [the Aircraft Owner and Pilot Association] and vote for us,” says Simes. “I am so grateful for this award and that they took the time to do it.” Simes, a master flight instructor who took her first flight at seven-years old, thinks that it is best to make learning to fly a positive experience. “Make it as fun as possible; less stress is better,” says Simes, who thinks it is critical to introduce children to flying. “Parents get your children flying at least by ten years old,” she says. “Getting children and teens to fly will hook them on aviation.”

Fly Around Alaska Perhaps the latest development in flight school news is Palmer Municipal Airport’s Fly Around Alaska. “This is the culmination of several different entities that are now a full-fledged flight school based at the Palmer Airport,” says Ken Moore. The flight school has a guaranteed private pilot program, accelerated flight training, specialized flight training, and performs flight reviews and tail wheel training. In the fall of 2015, Artic’s Air Academy approached Drew Haag of Above Alaska Aviation in Talkeetna to buy its flight school. In March of 2016, Above Alaska was purchased by Artic’s Air Academy and the name was changed to Fly Around Alaska. Now the main flight school operation is located on the Palmer Municipal Airport, with a summertime satellite operation in Talkeetna at the Talkeetna Airport. Currently the flight school is operating under FAA Part 61 flight rules and is in the process of applying for a Part 141 certification. www.akbizmag.com

Aware of the need for more pilots in the future, Fly Around Alaska wants to reach out to rural Alaska to offer its services to train pilots who can get support from their ANCSA corporations. “We would love to work with Bethel, Nome, Kotzebue, and Iḷisaġvik College to create aviation programs to train their students,” says Moore. Like many of the other flight schools, Fly Around Alaska is going to electronic ground school online courses. “The school has seven aircraft and is changing its manner of training to include a Jeppesen online ground school with the flight lessons concurrently. This way the student learns while flying, it’s not just rote book learning,” says Don Hammond, Fly Around Alaska manager. “We offer a syllabus based training with some online course work, then transition to air work to make the lesson more agreeable,” adds Hammond. “You get more bang for your buck and this way and you can get more flight time in.”

Land and Sea A Merrill Field flight school favorite located on 5th Avenue and Merrill Field is Land and Sea Aviation Alaska LLC. The flight school teaches under Part 61 Rules. Land and Sea has two main instructors and an office manager. Owner and operator Key Ma says Land and Sea can take students from zero experience to commercial pilot in one year. The company offers flight training ranging from solo to multiengine instrument instruction certification. The company utilizes various aircraft, including Cessna 172, Piper Arrow, Beechcraft Duchess, and Citabria. The school also offers a private pilot ground school monthly and occasionally offers free ground school to high school students. Using Flight Scheduler Pro, students can reserve aircraft months in advance and change their schedule or set up flight lesson online. Located in the Wings of Freedom hangar, the school also operates a licensed testing center for knowledge tests. Additionally, Land and Sea gives flight reviews and instrument proficiency checks. Arctic Flyers Located at Lake Hood, Arctic Flyers features

Alaska Aviation Legend Heidi Ruess and her son Rick Ruess who offer professional flight training specializing in private, commercial, instrument, float training, and tailwheel ratings. Rick is rated in a variety of aircraft including turbo-prop and jets. He also offers biennial flight reviews and is an airframe and power plant licensed mechanic. The company was started in 1969 by Herman Ruess and is carried on today by his wife and son. Heidi, a flight instructor with 30,000 hours and fifty years of experience, explains that she is more of a tailwheel and floatplane instructor. “Our way of teaching you how to fly is feeling what the airplane is doing, not just driving it on and off the ground or water,” says Heidi. Rick recently went to Oklahoma where he was trained and tested by the FAA and is now a designated pilot examiner for the Anchorage area. Arctic Flyers offer several types of aircraft: Cessna 150, 152, and 172 and Taylorcraft on wheels and floats. Arctic Flyers also offer Private Pilot check rides for Single Engine Land and Single Engine Sea ratings.

Alyeska Helicopters Alyeska Helicopters LLC is a rotor wing flight school located on 5th Avenue at Merrill Field that offers both FAA Part 141 and Part 61 instruction. The school was started in 2004 and originally operated out of Girdwood. The company has a new spacious building and hangar specifically designed for flight instruction. Alyeska operates year-round using three Robinson R22s and one R44 four-seat helicopter and has four full-time employees. Instructors and aircraft are available seven days a week, according to Scott, and the school averages twenty-to-thirty students annually. “We specialize in one-on-one instruction, students with flight instructors,” says Leah Scott, office manager for Alyeska Helicopters. “This way there are no interruptions like in classroom instruction. This is more relaxing and less stressful, so we believe this offers higher-quality instruction.” R Rob Stapleton is an Anchorage-based journalist and professional photographer. He owns Alaska Foto. May 2017 | Alaska Business

TELECOM & TECHNOLOGY

Meeting Increasing Demand for Distance Education Post-secondary schools offer more eLearning options By Tracy Barbour

laska’s post-secondary institutions continue to expand their distance education offerings to keep pace with students’ evolving needs and preferences. Distance education—also called electronic learning or eLearning—carries a slightly different connotation for Alaska’s colleges and universities. According to the University of Alaska Anchorage (UAA), eLearning is “planned learning that predominantly occurs in a situation where a student is not required to be in a fixed location.” And distance education classes, which can be up to 50 percent location-based, have at least 50 percent of the course work available online. A student studies at Iḷisagvik College’s Wainwright Learning Center, one of Iḷisagvik College’s off-campus locations that offer students a space for education and eLearning opportunities. Photo courtesy Iḷisagvik College

Distance education combines a diversity of telecommunication tools and other technology. It takes on various forms at Alaska’s post-secondary institutions and typically uses a mixed approach for eLearning courses. Institutions like UAA, Alaska Pacific University (APU), and Iḷisaġvik College offer everything from online courses and telecourses to traditional classes with a blend of eLearning components. Here’s a closer look at how UAA, APU, and Iḷisaġvik approach distance learning and the variety of courses they offer to help students enhance their education.

University of Alaska The University of Alaska system is comprised of three main institutions: UAA, University of Alaska Fairbanks (UAF), and University of Alaska Southeast (UAS). These three institutions that make up the UA system all have distinct models for eLearning. UAA is the largest post-secondary institution in the University of Alaska system. With satellite campuses in Homer, Kodiak, Soldotna, Valdez, and Mat-Su, UAA strives to deliver eLearning courses that provide educational access, convenience, and flexibility to help students complete their degrees. And at a time of declining overall enrollment, both headcount and credit hours in eLearning courses continue to grow, according to UAA’s 2016 eLearning Report. The report states: “The number of students enrolling in eLearning courses has increased steadily over the past five years. While total annual headcount at UAA declined 4.4 percent from AY15 to AY16, the headcount of students enrolling in at least one eLearning course increased 2.7 percent.” For the students, David Dannenberg, PhD, director of Academic Innovations and eLearning at UAA, says, the flexibility of online classes is a major benefit. “Online classes allow students to go on with their daily lives, stay in their home communities, and get a great education without having to uproot themselves and travel outside their city or even state,” he says. Statistically, 82 percent of eLearners at UAA are degree-seeking students, with 26

Alaska Business | May 2017 www.akbizmag.com

percent being freshmen and 55 percent being part-timers. The university offers twenty “Online classes allow students to go on with eLearning programs with no location-based requirements and another forty-one hybrid their daily lives, stay in their home communities, programs with up to 50 percent location- and get a great education without having to based requirements. These programs are focused mainly in undergraduate certificates, uproot themselves and travel outside their city occupational endorsement certificates, grador even state.” uate certificates, and master’s degrees. —David Dannenberg, PhD UAA employs a variety of software and Director, Academic Innovations and eLearning, UAA other tools to facilitate its eLearning program. Recently, UAA and other public universities statewide began using the same version of Blackboard’s learning management certificates completely online. Distance edu- past five years,” states Carol Gering, direcsystem. So now students have one login and cation courses at UAF cover numerous titles tor of UAF eLearning & Distance Education, can see all their courses, regardless of which and formats, including online, audio, and on the university’s website. “We’re passionate institution they are attending. The students video. For example, during the spring and about expanding access to higher education also use tools like Blackboard Collaborate for summer of 2017, students can take every- and providing a quality learning experience web conferencing and ePortfolio for assess- thing from principles of accounting, business for all students-regardless of location, work ments, self-reflection, and other purposes. math, and income tax to world literature, so- schedules, or family obligations.” At UAF, eLearning offers a flexible alter- cial work, and public relations. UAS, with campuses located in Juneau, Ketnative for anyone who prefers to pursue an UAF’s eLearning courses follow all univer- chikan, and Sitka, offers numerous courses online education. It allows students to choose sity calendars and deadlines and must be com- through its eLearning program. Often, there their own hours of study and work in sur- pleted within the semester time frame. These will be an on-campus section as well as an onroundings they choose. According to UAF’s courses use the Blackboard Learning Manage- line section for the same course in a given sewebsite, “eLearning offers the freedom to ment System and require students have reliable mester. UAS’s eLearning courses are delivered structure a personal academic schedule and internet access to complete the courses. via audio conference, web conference, satellite, continue educational progress, even when it Recently, 2017 rankings (US News & World online, and through other multimedia formats. is impossible or challenging to attend sched- Report’s) included UAF in four of its lists of uled, face-to-face classes.” In addition to the best online programs: Best Online BacheAlaska Pacific University Fairbanks, UAF operates campuses in Dill- lor’s Programs, Best Online MBA Programs, APU bills itself as a small private liberal arts ingham, Kotzebue, Bethel, and Nome. Best Online Criminal Justice Programs and sciences university “providing personThe UAF eLearning and Distance Educa- (Graduate), and Best Online Education Pro- alized, experiential, hands-on instruction tion department offers more than 350 cours- grams (Graduate). “UAF has invested heavily in the field with Alaska as its primary class03 ABM OneTalk.pdf 1 3/28/17 PM es in sixty 2017 disciplines and offers degrees and in 4:23 the growth of online programs over the room.” APU approaches the creation of online

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“Our online courses are structured to produce applied, experiential, and projectbased learning. Students are all there once a week at the same time in a webserved system. They complete work across the week utilizing a number of applications. They are often in discussions that happen across time and anytime. They may be involved in group projects and often collaborate with each other but on their own time.”

—Esther Beth Sullivan, PhD Dean of Curriculum and Instruction, APU

courses the same as other courses, combining synchronous and asynchronous elements. “Our online courses are structured to produce applied, experiential, and project-based learning. Students are all there once a week at the same time in a web-served system,” Esther Beth Sullivan, PhD, dean of curriculum and instruction at APU explains. “They complete work across the week utilizing a number of applications. They are often in discussions that happen across time and anytime. They may be involved in group projects and often collaborate with each other but on their own time.” APU offers an assortment of eLearning courses to help students advance their education. This includes all the courses that a student would need to graduate in business, counseling psychology, and a liberal studies degree as well as a range of foundational studies. At the undergraduate level, APU’s online classes are targeted to deliver the kind of programs that working adults need to accom-

plish their degree program. At the graduate level, APU uses eLearning to enable graduates to pursue degrees (including an MBA and even a doctorate of psychology) without having to move to Anchorage or give up their job to complete their graduate studies. Overall, APU has 550 to 600 full-time and part-time students enrolled each semester, and the university offers approximately 50 courses that are primarily online and have more than 200 students enrolled. About half of those students are taking online classes exclusively, while some may take a single online class. The eLearning classes at APU vary in length, with some running up to sixteen weeks. Some online courses are in seven-week modules, which is a good match for the university’s business classes and online format. “We have a pretty diverse set of time frames,” Sullivan says. The experience that students receive through distance learning varies at APU. Online students may have weekly eLearning

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sessions that are facilitated through a web conferencing system, similar to a webinar. The students log into an online hosted room where they can communicate and share concepts. With conferencing sessions, students conduct presentations and interact in various ways. They can do small group work and then come back to a larger group to exchange ideas and information. In asynchronous, anytime follow-up situations, students interact and collaborate with instructors through messaging, discussion boards, and Google docs. “There are a whole range of tools we have that allow students to interact and excel even though they may be working on their own,” Sullivan says. Students have different reasons for opting for an online experience. Sometimes working adults don’t have the luxury of taking face-to-face courses and online courses are more efficient for them. Other students find that online delivery simply works better based on their comfort level. “The more we are able to allow the student to determine their perceived learning style and how best they learn, that’s where we see great success,” Sullivan says. She adds that students should consider their personal preferences when selecting courses. “I would hope they would look at what is going to work for them and find courses that will help them move forward toward degree attainment,” Sullivan says.

Iḷisaġvik College Rob Carrillo, lead distance education coordinator for Iḷisaġvik College, is seeing students opting to take eLearning classes to remain close to home. Iḷisaġvik is the only accredited, Alaska Native-controlled higher education institution in Alaska, and it is the only college located within the boundaries of the Arctic Slope. Carrillo says most students who graduate from high school in the region do not leave the area. They want to be productive in their own village, and distance education helps them to do just that. “It’s a benefit to students to be able to complete their course work and stay in their own village,” Carrillo says. The two-year tribal college offers postsecondary academic, vocational, and technical education aimed at matching workforce needs. The small public institution serves students at its campus in Barrow and through distance education. Its education programs include business, management, marketing, the construction trades, health professions, homeland security, and computer and information sciences.

Alaska Business | May 2017 www.akbizmag.com

“It’s a benefit to students to be able to complete their course work and stay in their own village. When I came there, there were six courses online, now every course has an online component. When you look at our class list, you could say 90 percent is online, but maybe during whaling season or a time when subsistence is taking place, students might do some teleconferencing or a live webinar like GoToMeeting or WebEx.”

—Rob Carrillo Lead Distance Education Coordinator Iḷisaġvik College

Iḷisaġvik offers a variety of distance education classes, including sixty teleconferencing courses each year and more than thirty online classes every semester. As Internet technology improves, so does the demand for distance education, Carrillo says. Currently, about a third of the Iḷisaġvik’s classes are strictly online. “When I came there, there were six courses online, now every course has an online component,” he says. As with most institutions, many of Iḷisaġvik’s classes incorporate multiple delivery modes. For example, the school’s teleconferencing classes take place in a live setting but also feature an online component. And even though a course might be listed as online, faculty still may meet with students face-to-face. Therefore, Iḷisaġvik creates portals for every faculty member for every class they are going to deliver to ensure instructors are prepared to accommodate different situations. “When you look at our class list, you could say 90 percent is online, but maybe during whaling season or a time when subsistence is taking place, students might do some teleconferencing or a live webinar like GoToMeeting or WebEx,” Carrillo says. The growing demand for eLearning creates a constant challenge to ensure teachers have the resources to deliver courses in various formats. To help faculty keep up their skills, Iḷisaġvik brings in presenters to provide live training on Google Apps, Moodle, and other software. It also gives instructors access to some of the latest technology such as interactive projectors, which students like to see. “The students know that they will be www.akbizmag.com

Iḷisaġvik College offers distance education courses utilizing both teleconferences and MyCampus, an online course management system, at various locations, such as Iḷisaġvik College’s Nuiqsut Learning Center, seen right. Photo courtesy Iḷisaġvik College

highly mobile, so they like to know that the teachers are using technology,” Carrillo says. In terms of its distance learning system, Iḷisaġvik utilizes teleconferences and My Campus, an online course management system; and uses Elluminate, a synchronous web conferencing platform, to deliver instruction. Students participate using their own computers—at their own locations—through an Internet connection using headphones. With this format, students and instructor have to meet at a predesignated time. While most of Iḷisaġvik’s students are based on the North Slope, it has twenty-five or fifty students who are off site each semester. In the

last two years, the college has experienced significant growth, attracting students from all over Alaska and as far away as Michigan and Maine. Why the growth? The cost per credit is the lowest in the state, according to Carrillo. Whether students are remote or onsite, Iḷisaġvik makes an effort to build flexibility and support into the delivery of its classes in an effort to help students complete their coursework. “We try to have all the scaffolding, all the pieces that get students from A to Z,” Carrillo says. R Freelance writer Tracy Barbour is a former Alaskan.

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May 2017 | Alaska Business

TRANSPORTATION

Fleet Services

Photo by Sam Amato

Most fleet vehicles are white; however, North Slope Delta Leasing acquires vehicles in various colors, because white vehicles on the North Slope require the installation of reflective striping for safety.

Keeping Alaska’s workforce moving By Tasha Anderson

laska’s transportation industry generally calls to mind images of eighteenwheelers traveling the Dalton Highway, bush planes landing on remote lakes, barges delivering row upon row of metal shipping containers, or the Alaska Railroad moving coal or fuel. While moving goods in bulk around Alaska is vital, there are smaller movements taking place every day that are just as vital to business, often accomplished through the aid of Alaska’s ubiquitous fleet vehicles.

Lithia Carl Authement is the Commercial Fleet manager for Lithia Chrysler Jeep Dodge of Anchorage. “Commercial clients’ new vehicle needs is my main job,” he says. “It could be trucks, SUVs, cars, whatever that may be.” Lithia primarily sells commercial fleet vehicles. Authement says: “our goal is to give our customers a work-ready vehicle, wherever they need it.” He notes that Lithia provides fleet vehicles to a variety of industries in Alaska. Many of their larger customers are in construction or oil and gas, but some are service companies (installing telecommunications, for example) 44

or engineering firms. Larger customers will sometimes put out a bid for a lot of up to sixty units as often as once a year. “Other smalleror medium-sized companies may buy a few vehicles here and there two or three times a year,” Authement says. “I also assist not only with company vehicles, but employees, owners, and managers; so I may see one company come in, whether it’s for the company or for the owners or whatever, a handful of times throughout the year,” he says. Lithia provides a range of vehicles to suit the needs of their clients, though “it’s typically a basic type vehicle with not a ton of options.” He says Lithia calls these basic work trucks “tradesman packages,” and they feature a white body, power windows, power locks, vinyl floors, and four wheel drive. Most fleet vehicles in Alaska are trucks. Authement says Lithia sells the standard 1500 (half-ton), 2500 (three-quarter ton), and 3500 (one-ton) trucks. He continues, “We also sell 4500s and 5500s, which are considered medium duty trucks, and not every dealer has those.” After trucks the next largest volume of vehicles are vans. Authement explains that while many customers know what their fleet vehicle needs are, he is happy to help customers identify which type of vehicle best fits their unique needs. Authement says Lithia always keeps a current stock of fleet-appropriate vehicles for

last-minute or unexpected requests, including vans and trucks with flatbed, utility/service, dump truck bed, or a standard truck bed or a truck cab/chassis without a specific body or bed, ready to be customized. Ordering a vehicle can take from two to six months for a specialty rig. “Having a good inventory is essential to being in the commercial fleet market.”

Fleet Vehicle Services Lithia’s fleet services go beyond just selling cars. “Once the vehicle is picked out, the majority of them need something done to them,” Authement explains. “Whether that’s anywhere from just adding little things like running boards, spray-on bed liners, or extra lights, all the way up to completely customizable bodies on the back of a truck that could cost more than the actual vehicle itself.” Other customization may be necessary, such as custom branding with a logo, motto, or other information. Authement is happy to take on the responsibility of organizing this process, partnering with local businesses as often as possible for body modifications, car wraps, or other necessary work. He says depending on the customer and their needs, he may deliver the vehicle to the company with all the necessary paperwork to aid a customer on a tight deadline. “For these customers, buying a vehicle is a tool, and their time is typically limited and valuable. So the more I can help facilitate anything and ev-

Alaska Business | May 2017 www.akbizmag.com

Lithia Commercial/Fleet Manager Carl Authement says that, after trucks, the next largest volume of vehicles requested for fleet services are vans. Vans have the benefit of being enclosed, are versatile, and can be used for crew transport, as service vehicles, etc. Photo courtesy Lithia Chrysler Jeep Dodge of Anchorage

erything, and save them time, the better I feel I’m doing my job,” Authement says. No matter the vehicle, payment is necessary, and Lithia works with customers. Authement says many companies buy vehicles outright while others set up payment schedules. He says that for Lithia’s customers these vehicles are tools, so haggling over price simply takes too much time; all of Lithia’s fleet vehicles feature up-front pricing. Authement also assists customers by searching for available cost savings options. “Every manufac-

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turer has a list of rebates that could be out there, and members of special organizations like AGC [Associated General Contractors] can receive discounts. I will try to find every possible rebate in order to lower that price, even for the guy who buys one car every two to three years,” he says. Other associations with members that may receive rebates or reduced prices include Associated Builders and Contractors, National Association of Realtors, National Association of Home Builders, National Association of the

Remodeling Industry, National Association of Women Business Owners, Security Professionals Association, Snow and Ice Management Association, and Society of American Florists. In some cases, Authement says, employees of businesses that belong to these associations may qualify for special deals. There are several Lithia dealerships in Alaska, including Lithia Chevrolet South Anchorage, Lithia Kia, Lithia Hyundai, and Lithia MINI of Anchorage; Lithia Chrysler Jeep Dodge Ram of Wasilla; and the Lithia

May 2017 | Alaska Business

Photo by Sam Amato

lifetime warranty. “That’s a factory warranty, not dealer specific,” he says. “From the top down, everybody [at Lithia] is dedicated to servicing our commercial customers.” Authement says. “It’s a culture that we have here that we really try to stand behind. … It’s a lot of investment for a dealer to service commercial fleets, and we are dedicated to that in every aspect—sales, service, parts, everything.”

In addition to fleet vehicles, Delta Leasing also provides some heavy equipment vehicles, including forklifts, telehandlers, loaders, skidsteers, etc.

Chevy Buick GMC of Fairbanks. Authement clarifies that each location manages their inventory individually, but work together as much as possible to make sure every customer gets what they need when they need it.

Servicing Purchased Vehicles Lithia’s services don’t end when the car is purchased. Authement can sign up customers with a service called Business Link through Chrysler that provides help in the case that a vehicle runs into trouble. “Whether that’s a loaner vehicle or money towards a rental if the vehicle needs to be in overnight or pri-

ority scheduling to get a vehicle in the shop, anything to keep that business going while this vehicle is off the road and not making money.” He says Business Link is appropriate for any size business, from one to several hundred vehicles. Lithia also provides general services and maintenance including oil changes and mileage checkups to small and major repairs. Lithia also offers commercial clients the option of lifetime oil changes. All vehicles come with standard manufacturer warranties, but Lithia will offer, on most Chrysler vehicles with the exception of diesels, an option for a

Delta Leasing Not all fleet vehicles are purchased: many companies choose to lease their vehicles instead. This allows them to free up capital or credit to spend on their core business focus, rather than having resources tied up in a vehicle fleet. Delta Leasing, headquartered in Anchorage, specializes in leasing equipment to various Alaska industries, including fleet vehicles such as cars, trucks, and crew vans; heavy equipment; and portable/mobile infrastructure such as shop facilities, job trailers, and break shacks. Delta Leasing President Rudi Von Imhof says the majority of Delta Leasing’s business takes place on the North Slope. “2016 was a rough year for Delta Leasing and many other folks who operate on the North Slope,” he says, alluding to the rapid decline and subsequent slow rise of oil prices in the oil and gas industry, as well as the many industries that support it. “Our vehicle fleet was fairly stable around 1,500 units, and we have contracted that to somewhere under 1,000 right now,”

Alaska Business | May 2017 www.akbizmag.com

Von Imhof says. Most of that fleet reduction took place last year as a direct result of declining demand and activity from key clients. However, the downturn presented some opportunity for the company. In February, Delta Leasing announced the acquisition of substantial North Slope assets from MagTech Alaska, a Kenai-based equipment and vehicle leasing firm. The buy included 350 assets, an 8,000-squarefoot Prudhoe Bay shop facility, and MagTech customer leases on the equipment.

People Like Trucks “Our primary [fleet] vehicles are work trucks,” Von Imhof says. “However, we offer everything from specialized bucket trucks to 4x4 crew vans to flatbed trucks of all sizes.” Von Imhof says that North Slope projects are often seasonal, with many Prudhoe Bay clients only needing trucks and support equipment in the winter. Instead of storing the fleet, “we bring the vehicles down from Prudhoe to Fairbanks and/or even Palmer, and the fire crews or Division of Forestry use a lot of those same vehicles during the summer time.” While primary operations are on the North Slope, Delta Leasing is experiencing continued growth and demand for fleet vehicles in other areas including Anchorage and Fairbanks. These other locations are often used by non-oilfield related companies, such as engineering and construction firms or government entities. Von Imhof says he thinks many of Delta Leasing’s clients use the company because

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Photo courtesy Lithia Chrysler Jeep Dodge of Anchorage

Lithia provides fleet vehicles to many of Alaska’s industries, including construction. Lithia Commercial/Fleet Manager Carl Authement works with customers to meet additional branding or wrapping needs when they purchase fleet vehicles.

“they want everything fully maintained.” He continues, “The vast majority of our clients want a turnkey solution for their vehicle needs, and they do not want the hassle or downtime of dealing with the various maintenance issues of owning a vehicle.” To that end, Delta Leasing generally includes full

maintenance services for their fleet vehicles, everything from changing worn-out wiper blades and oil and filter changes to handling summer and winter tire rotations, and headlight and windshield replacements. Another unique aspect of leasing on the North Slope is the color of vehicle. Typically

May 2017 | Alaska Business

Aircraft Dealers: A closer look at two in Alaska By Rob Stapleton

onsolidation of air taxi carriers in the Alaska commercial fleet has fewer aircraft flying longer hours daily, weekly, and monthly. Transitioning from the smaller Cessna 207 Part 135, air taxi companies are relying on the Cessna 208B Caravan. Carrying up to eleven people and able to haul up to 1,800 pounds, the useful load capacity makes the newer Cessna 208B EX Gran Caravan the new “workhorse of Alaska.”

Northland Aviation Services Northland Aviation Services Inc., a Fairbanks-based company, sells the Caravan in Alaska. Northland started as an aviation parts and service company and withstood the economic downturn of the 1980s. “I was working for Northland when the partnership was dissolving and they set me up to buy them out,” Jon McIntyre remembers. “I was twenty-three years old at the time.” The Alaska economy crashed right after the transition in ownership. “It was pretty ugly for several years,” he says. Jon and Karla McIntyre have owned Northland since 1986; Karla is vice president of aircraft

sales and Jon oversees the service and parts and other aspects of the business. Northland expanded and moved the business to a new hangar in 1998. Their new parts division was established in 2000. The company has been a Textron dealer since 2012, which allows them to sell single engine Cessna aircraft, as well as parts and service for Cessna and various other bush aircraft. The McIntyres have eight employees at the company’s headquarters and warehouse located on the east ramp at Fairbanks International Airport. Currently Northland sells aircraft throughout the state of Alaska and to-date has sold more than twenty-five new Cessna aircraft as a Cessna authorized sales representative for all Cessna propeller aircraft. Northland recently purchased Tamarack Air Service’s inventory and building. “We ran out of space so we purchased the building and that houses our parts inventory,” says McIntyre. “My mantra is that we are a solution center and treat people the way that you would want to be treated with good customer service. We have people come in that don’t know what a part is

named or don’t have a clue what it is … we help anyone we can.” He continues, “We are trying to help the industry; some operations have millions of dollars in parts, and a lot of capital tied up in inventory. It’s only logical that using us would free up that capital.” McIntyre credits the people in Alaska as his support and success. “We’ve met a lot of really good people who have supported our parts business, and that leads to aircraft sales over a period.”

Alyeska Helicopters A new trend in Alaska aviation is to fly and own a helicopter. “It is easy to understand why when you own one,” according to Eli Woods, a sales consultant for Alyeska Helicopters. “Unlike a Cessna 185 airplane, you can go wherever you need to go.” Alyeska Helicopters uses and maintains Robinson Helicopters and is a Robinson dealer. Woods says most buyers are construction company owners, doctors, and business owners and he averages seven to eight sales annually. The helicopters he sells the most of are the fourseat R44 Raven I and II. These rotor wing aircraft cruise at 125 miles per hour, have a range of 300 miles with full fuel, can obtain altitudes as high as 14,000 feet, and cost about half a million dollars. “Basically, we can build the helicopter around the type of flying the owner is doing and can deliver the new machine in two to four months,” Woods says.

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Alaska Business | May 2017 www.akbizmag.com

In Alaska helicopter owners must have engine covers and Bear Paws on the landing gear for use in the snow, special mats, floats, and other accessories, which has bolstered sales at Alyeska Helicopters, he says, and made them a “Diamond Dealer.” It’s not only individuals that own and use Robinson helicopters: there are about eighty Robinson aircraft in the state of Alaska now. Nome, Bethel, and Dillingham each have one in commercial use, and one company has as many as ten of the Robinson aircraft. Woods stresses that the aircraft are fun to fly, but they are a serious investment of funds over time. Most cost about $240 per hour to operate and the Raven I is about $100,000 less to operate over its twelve-year life than the more expensive Raven II, based on the mandatory overhaul and teardown at twelve years or 2,200 hours. Woods indicates that while there are lease programs and used helicopters do come up yearly, most of his clients—once they’ve owned a helicopter realize that they can’t live without one. R

Rob Stapleton is an Anchoragebased journalist and professional photographer. He owns Alaska Foto.

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fleet vehicles are white. However, on the North Slope, surrounded by snow and ice, a white vehicle can be problematic, as it can be difficult to see. “We have to put reflective stripes on our white vehicles. So we stopped buying white because it’s pretty expensive to add the required reflective stripes,” Von Imhof explains. Instead, Delta Leasing orders vehicles in a variety of colors. “We’ve actually found that people really do like to have some vehicles with some color on them, a little bit of personality. It may sound crazy, but if you’re up at Prudhoe Bay for two months, your pickup truck is kind of your lifeline.” Also in deference to North Slope preferences, Delta Leasing purchases vehicles with extra features including auto-start, heated seats, heated steering wheels, and other small amenities. “We are trying to feature probably about the nicest work-type vehicle somebody’s going to get in, because they’re going to be living in it,” Von Imhof explains. Delta Leasing keeps vehicles through their warrantied life and then sells them because they like to keep their fleet updated in order to offer the best quality to their customers. Pickup trucks are always a commodity in Alaska. Von Imhof says conditions on the North Slope are severe and can be rough on vehicles; on the other hand, there aren’t limitless miles of roads north of the Brooks Range, and the trucks may not actually travel much. “We get a lot of vehicles back that are three or four years old and have 10,000 miles on them,” he says.

Consumer Leasing An exciting development on Delta Leasing’s horizon is an expansion into consumer leasing. Until now, the company’s insurance requirements were such that Delta Leasing has only done business with commercial accounts, and Von Imhof says Delta Leasing has had to turn away consumer business because of this. “But with the recent contraction of the oil and gas market, we’re feeling the pain of the reduced activity level from all of our customers; everyone is tightening up, projects have been cancelled, and business activity has gone down.” However, tourism is still a growing industry in Alaska, and Delta Leasing is excited to contribute to Alaska’s travel and tourism industry. Starting in June, they plan to cater to Alaska’s adventurous travelers, those who need a pickup truck, 4x4 van, or a large SUV to go hunting or fishing. This spring Delta Leasing is shipping existing excess inventory off of the North Slope for their consumer service line. Consumer operations were slated to begin in early June as of publication. Von Imhof says, “Our customer service, taking great care of our commercial clients, is our biggest focus; no matter if somebody gets locked out or has a maintenance issue, we’re always going to go above and beyond to keep our clients happy. And I think that same customerfirst mindset is going to do well for us with the new consumer rental vehicle division.” R Tasha Anderson is the Associate Editor for Alaska Business.

May 2017 | Alaska Business

ENERGY

Electricity in Alaska: No Ties to the Grid or Anyone Else Railbelt transmission and distribution By Darryl Jordan

This inside view of the GVEA’s Battery Energy Storage System speaks to the simplicity of the system. An advanced forklift, specially adapted for installing, charging, and watering the batteries, tracks a wire guidance system cut into the floor. On the forklift are 10 of 13,760 battery cells for this Battery Energy Storage System. Photo courtesy Golden Valley Electric

laska is an island. Most certainly not an island like Hawaii, surrounded by the Pacific Ocean on every side, but separated from the mainland United States, nonetheless. Alaska is connected by a road but that road distance is greater than the sea voyage from the Port of Seattle by hundreds of miles. This accounts for the reason that Southcentral’s percentage of freight that is received by sea is more than 85 percent and compares closely to Hawaii’s 90 percent. The isolation caused by the distance also means that Alaska is not connected to the infrastructure grid of the mainland United States, as anyone knows who attempts to get free shipping and sometimes finds that the fine print neatly excludes Alaska and Hawaii. Infrastructure is more than transportation and includes basic services such as telecommunication, internet access, emergency services, hazardous waste management, water resources, and electrical power generation and transmission. The latter, electrical power generation and transmission, is such an important infrastructure need that the Federal Energy Regulatory Commission (FERC) is charged with ensuring the state governments and public utilities make sharing power reliable, efficient, sustainable, and as economical as possible. Alaska and Hawaii are excluded from FERC’s public utility related statutory authority due to their electrical isolation and consequent inability to share power to another state. In short, Alaska is responsible for ensuring its own power generation and transmission is reliable, efficient, sustainable, and economical as possible.

Alaska Business | May 2017 www.akbizmag.com

Alaska Is ‘Missing Out’ Kirk Warren, chief operation officer and director of project implementation at the Alaska Energy Authority (AEA), is working on an Alaska solution. Warren says, “It is true that Alaska is missing out on the ancillary benefits of being part of a larger interstate electrical grid such as access to high inertia generating units which would allow for vastly greater amounts of non-dispatchable, variable load interconnections and that Alaska relies upon the local utilities, the Regulatory Commission of Alaska, and State of Alaska agencies like AEA to link Alaska communities and their power for mutual benefit.” To this end Warren, through AEA, released in March 2017 the Final Railbelt Transmission Plan, a culmination of a series of planning efforts and studies that have been in progress since 2010. The recommendations, if fully implemented, would cost less than $1 billion (as spent) over the next thirteen years to 2030; however, they may save as much as $38 million to $83 million per year in 2030 dollars. The uncertainty in the projected savings is more sensitive to future power needs, how many of the recommendations are implemented, how the system is operated, and surprisingly not strongly tied to the price of fuel. Economically, the cost savings could pay for the investment. Discounted for twenty years at 3 percent (the national five-year annual rate of inflation for energy) would generate savings of $1.2 billion in 2030 dollars if the full $83 million per year savings are real-

ized. At the base case of $55 million per year savings in the same 2030 dollars, the savings drop to $0.8 billion and would either need a subsidy or adding the savings achieved prior to 2030. The case for a subsidy is not unusual as the State of Alaska has invested in energy and power transmission as a basic infrastructure need for decades. The problem of course is that the State of Alaska may not be in a position for an investment at this time, especially when a final study plan determination by FERC, expected March 20, 2017, will put the Susitna-Watana Hydroelectric project on official abeyance.

Final Plan The Final Railbelt Transmission Plan fits within the energy plan put forth by the Governor Palin Administration in 2009 to obtain 50 percent of the energy used from renewable resources and increase efficiency by 15 percent by 2025. The 2009 plan is still in effect as state policy and thus far has increased energy from renewable resources from approximately 25 percent to 28-to-30 percent, according to Warren. The Final Railbelt Transmission Plan fits because it could both produce great efficiency as projected by the cost savings but also could allow more renewable resources to be used in the Railbelt power grid. The number one priority for the southern end of the Railbelt in the Final Railbelt Transmission Plan is the permitting, engineering, and construction of a new pair of 100 MW

high voltage direct current (HVDC) cable to run under Cook Inlet from Soldotna’s Bernice Lake power facility to Chugach Electric Association’s plant in Beluga, a cable distance of thirty-six miles. The projected cost is $185 million. The HVDC would be the first for this type of transmission line in Alaska and was initially rejected in earlier studies but now is the number one alternative due to technology advances and cost reductions. The value of the recommended transmission cable is immense. The only means of transferring power to or from the Kenai Peninsula is an old intertie line that can be seen paralleling the Seward Highway. It was built in the 1960s to carry power from the Cooper Lake Hydroelectric Project, a plant with the ability to produce 16 MW of power. At 115 kV, the line’s power transmission limit that can be safely transmitted is about 75 MW, which was plenty of capacity when the line was constructed. At 16 MW, the lines thermal limits would not be considered as not much heat is generated at low power transmission. At 75 MW of transmitted power, the thermal limits of the conductors impact the total load the intertie is permitted to carry. Today, the Cooper Lake Hydroelectric Project is dwarfed by the Bradley Lake Hydroelectric Project, commissioned in 1991, which has the ability to produce 115 MW. Warren points out the actual output is subject to many factors when discussing hydroelectric power, so the numbers should only be used as good estimates.

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May 2017 | Alaska Business

The Kenai hydroelectric power is cheap power to produce for Railbelt consumers and is a great renewable power source. However, the resource is not being fully utilized. The limit of the single intertie to the Kenai is effectively capping energy transfer between the communities. An upgrade to the line’s capacity to transmit energy is part of the solution, but so is having a second route in the event the first route becomes unusable. In power communities, the alternate routes for power transmission is known as reliability.

Reliability Saves Power It is hard to envision how reliability saves power and thereby cost savings. Imagine living in the Railbelt and the only source of power was the generator in the backyard or basement. If the generator malfunctioned or simply ran out of fuel, one would have a reliability problem. In a remote Alaska village, this problem is generally solved by having two generators running with equal capacity such that the failure of one would not leave the village without power. This “spinning” reserve is costly since the village is literally running two machines to ensure there is as much power as needed. Another way to defeat the local problem would be to network all the neighbors together so that power could be shared. The more neighbors in the network, the fewer chances of being without someone to share resources, and the amount of spinning reserve in the system could be lowered to meet

the needs of the neighborhood. In the FERC regulated power transmission grid of the mainland United States, the regulations require access to 20 percent more power than demand at any given time and this can be cheaply achieved with the high inertia generating unit discussed by Warren earlier. What is not obvious is the spinning reserve mentioned refers to the inertia a rotating mass will keep and retain for a very long time. The spinning mass and its inherent inertia can quickly be used to make power. If there is a small mass spinning there will be a small spinning reserve. A bigger mass spinning causes the amount of inertia to increase in direct proportion to the mass sizes. What Alaska lacks is the ability to tap the large potential energy within high inertia generators. The nuance is that a high inertia generator will not be largely affected by a new load and unlikely to cause a problem in the overall system. In other words, the Final Railbelt Transmission Plan hopes to save 7 to 15 percent in the Railbelt neighborhood, but a similar system upgrade located within the US grid could have savings in the range of 8 to 30 percent. In a Railbelt example, assume it is summer and the Kenai Peninsula is only in need of 55 MW and has renewable hydroelectric power available in the range of 125 MW: the difference of 75 MW could be shipped, reducing the creation of power-using methane. It is summer so the current single line intertie has less capacity due to the heating of the con-

ductors passing energy in the intertie. The net effect is the system will be operating on the edge of the design parameters. Should something break, the communities that were receiving that power would need to have spinning reserve to keep their systems running. If there were a second route, the reliability of the system could be taken into account and less spinning reserve is necessary. Consider the fact that the newest power plants built in the Railbelt are 30 percent more efficient than many of the power plants that were built before 1980. The period prior to 1980 in Southcentral Alaska history saw an explosion in population. A population of roughly 100,000 in 1960 turned into 200,000 within twenty years. The Fairbanks North Star Borough realized a similar growth of 43,000 to 54,000 residents in the same period. The result was an expansion of the infrastructure and a time period when the Railbelt purchased many of the power plants in use today. The power transmission grid to connect the communities was built in the same time period. The Final Railbelt Transmission Plan would utilize power from the most efficient source first and allow less efficient power generation equipment to come online only when needed to meet the demand of the system as a whole. This is similar to tapping the cheaper hydroelectric power but is illustrative of how the system would continue to share power to maximize the best source. The recommended new underwater connection to improve the grid is only part of the solution.

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Kenai Intertie The existing intertie to the Kenai Peninsula should still be upgraded. An upgrade would both ship more power and provide the improved reliability. The value of the improvement is a function of the failure rate of the power being transmitted. Assuming power may fail 5 days out of 365 days, there is a failure rate of a little more than 1 percent, which seems like a small percentage except to the people whose power was cut those 5 days. If an upgrade will cut the chance of failure in any section, it is an improvement. Chugach Electric Association has been upgrading parts of the intertie over a number of years and has already begun clearing for the next section at Quartz Creek on the Seward Highway at MP 55 to 61. The upgrade will increase the line capacity from 115 kV to 230 kV. The voltage increase will be accomplished by replacing conductors and getting more space between conductors and the ground. This project in itself will not increase the limitation on the amount of power currently shipped but will be able to accommodate a load growth in the future. That load growth would be possible if the remainder of the intertie were upgraded, costing an estimated $176.6 million. This number includes $66.6 million for an additional 115 kV line from Bradley Lake to Soldotna, which reduces the number of times power is lost or a reduction in power is required by the single line configuration.

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Battery Backup The second priority of the Final Railbelt Transmission Plan would be the construction of a Battery Energy Storage System (BESS). BESS is exactly what it sounds like: a giant battery. Unlike a flashlight carbonzinc “D” cell battery which might deliver 5.21 watt-hours, this BESS has the capacity to deliver 20 million watt-hours. This is enough instantaneous power to plug a shortage until a generator can be brought online. The value is both in providing contingency reserves without keeping a generator idling on standby—aiding in the regulation of power fluctuations and bringing reserve power online—and allow a place for variable power sources like wind and tidal generated power to be more efficiently managed. The cost of the non-spinning reserve is estimated at $41.1 million and is recommended to be placed in the Anchorage vicinity. While it sounds like it would be a first for the Railbelt, Golden Valley Electric Association (GVEA) has used a BESS since 2003 for many of the same reasons. GVEA reports that their BESS filled in for missing power fifty-two times in 2015. Some of the reasons for potential loss of power to customer in the GVEA area are due to loss of power generated in Cook Inlet. The northern end of the Railbelt has the same single intertie problem as the southern end out of the Kenai Peninsula. Shipping fuel to GVEA adds to the cost, and there is greater economy in shipping power. The single con-

nection to Southcentral means that GVEA must both keep spinning reserve in the event of tie-line failure and there are limits on the amount of power that can be shipped. To solve this problem, a second line and an upgrade to the existing system is recommended by the Final Railbelt Transmission Plan. This is equivalent to the southern portion except the distances are greater and there is no recommended use of HVDC. Estimated costs are $389.1 million. The advantages are that GVEA would be allowed to obtain as much of the cheaper generated power as they could use and it could be relied upon to be available as needed. The alternative is using less efficient power resources either as primary or spinning reserve. Economically there is a 7 to 15 percent cost savings with investment. Those savings do not consider benefits of better renewable resource usage, increase-safety through better reliability, more reaction time in the system, and a network of communities working together for a consensus moving forward. Competent, modern means of power production is part of the State of Alaska energy policy. Imaginative and forward thinking on how Alaskans view, store, and share the energy to fuel our lives provides self-sufficiency to the “island-state” of Alaska. R

Freelance writer Darryl Jordan lives in Anchorage.

May 2017 | Alaska Business

ENGINEERING

Institute of Northern Engineering Photo by Billy Connor

Engineering solutions in rural Arctic communities By Julie Stricker

f you fly into many of Alaska’s remote villages, chances are you will see few, if any, private cars and trucks. Some villages even lack roads—buildings are connected by long boardwalks raised above the swampy ground. Residents get around on all-terrain vehicles, bicycles, and snowmachines or on foot. Over the past few years, some of the larger hub communities such as Unalakleet, a village of about 700 on the shores of Norton Sound, have received paved roads. But engineers are finding such improvements may bring unintended consequences, says Billy Connor, director of the Alaska University Transportation Center on the University of Alaska Fairbanks (UAF) campus. “The day after it was paved, all the kids were in the streets on those push scooters,” Connor says. Parents, seeing an opportunity for their kids to have fun on a smooth surface, had bought the scooters, but it wasn’t what the engineers expected. That led to the question: how does one design safe transportation networks for isolated villages that may have never had roads, much less stop and yield signs?

‘Critical Transportation Safety Issues’ That question led to the creation of the Center for Safe Equity in Transportation (CSET), a federally funded project that will focus on transportation in rural, isolated, and tribal and indigenous communities. The Institute of Northern Engineering (INE) and Alaska Heavy snowfall, cold temperatures, blowing snow, and limited resources for winter maintenance in RITI communities can have significant transportation, safety, and mobility implications. Photo by Billy Connor

Rural communities rarely have the resources and tools that are available to larger transportation organizations. As a result, they often have difficulty collecting the data necessary to avail themselves of funding for safety projects.

University Transportation Center is the hub of the project, with Connor serving as director and Nathan Belz, an assistant professor of engineering at UAF, as assistant director. CSET, a partnership between UAF, University of Hawaii, University of Idaho, and University of Washington, will receive $7.9 million in funding over a five-year period to work on safer, smarter transportation solutions for communities in which dog sleds, ATVs, and snowmachines are common modes of transportation. “We made an argument that these areas have critical transportation safety issues that need to be addressed,” Belz said in a news release announcing the grant this winter. “Our goal surrounds the idea that if you have a right to get there, you have a right to get there safely.” CSET has three missions, says INE Director Bill Schnabel: teaching, service, and research. “The Institute of Northern Engineering is in charge of the research mission of the College of Engineering and Mines,” he says. “The faculty that teach in the different departments do their research through INE. We also have faculty that don’t teach at all. They strictly focus on doing research through INE.” INE is home to leading researchers in cold climate science and engineering. It encom-

passes the Alaska Center for Energy and Power; the Mineral Industry Research Laboratory; the Petroleum Development Laboratory; the Water and Environmental Research Center; and the Alaska University Transportation Center, which houses CSET. It employs about 120 people, full-and part-time, Schnabel says. Engineering isn’t all about building a better mousetrap; the human element is key. That’s one of the main components of the transportation issues Belz and Connor are working on. It’s also why INE is ideally situated in Alaska. “Our niche is that we live, work, and most of us love Alaska,” Schnabel says. “We live in this environment up here and we do it for a reason. We didn’t just end up here. Most of us most of us came here or at some point decided to stay here if we were born here.” “In my opinion, our niche is figuring out how to live and lead successful lives in the Arctic and sub-Arctic in Alaska,” he adds. “A lot of that is about human dimensions.” In the case of Connor’s and Belz’ work with rural transportation systems, “if they’re not thinking about people, they’re not going to be successful. I mean, that’s the gig. That is what you’ve got to figure out.” The institute’s location and its focus on subarctic and arctic issues just makes sense. “We can design the best mousetrap in the world from offices in Seattle or Anchorage or Fairbanks, but it’s not going to work in rural Alaska unless we started that design in rural Alaska,” Schnabel says. “It’s probably important everywhere, but I know what’s important here, so a lot of our engineering is about the intersection of these ideas and designs with their intended users.”

Rural and Arctic Transportation Infrastructure Originally from Maine, Belz has long been interested in rural transportation issues. An avid winter biker, he understands some of the issues facing rural communities. To begin, accident rates are higher in rural areas than in most urban areas. Add in small communities in which

Alaska Business | May 2017 www.akbizmag.com

Photo by Billy Connor

Engineering the Future, Empowering Students In many rural villages in Alaska, soils and ground conditions make the construction of conventional roadways nearly impossible. Boardwalks serve as the primary transportation infrastructure to connect people, goods, and services.

children play in the streets or on boardwalks with ATVs and snowmachines whizzing by, and there is a lot of potential for trouble. Over a fouryear-period, for example, Belz says, more than three-quarters of all the vehicle accidents in Kotzebue involved snowmachines on city streets. “ATVs, snowmachines, and dog sleds are the way that people get around. That’s their livelihood. That’s what they rely on,” he says. “And if you’re saying that everyone has a right to use a road, they have the right to get someplace, then they should also have a right to be able to get there in one piece.” Design can only do so much, he says. Fences and wildlife tunnels can decrease the chance of hitting a moose, but they’re expensive. And while technology such as seat belts and airbags has reduced deaths on highways, the goal is still zero deaths. Emerging technology such as driverless cars poses new questions for road design. Alaska, with its extreme weather and permafrost, adds layers of complexity to transportation design. Permafrost is one challenge engineers face in rural Alaska, but there are many others, depending on the focus of the people working there, Schnabel says. To begin with, figuring out how to provide energy for rural Alaska communities where residents are paying $7 or more per gallon for heating fuel is a huge deal, Schnabel says. Organizations within INE such as the Alaska Center for Energy and Power are actively addressing that issue. On the other hand, there’s the challenge of building and maintaining infrastructure on permafrost in an era of climate change. “If you build a road for instance, regardless of whether or not you’re in the regime of climate change, and you don’t protect against frost, it’s going to fall apart,” he says. “The intersection of infrastructure and frozen soil is a big deal. Now we add onto that this cycle where a lot of frozen soil is thawing anyway because of climate change. It’s a big deal.” Much of INE’s work is pragmatic and of direct benefit to the state, Schnabel says. While it receives state funding, $2.4 million in fiscal year 2016, by far the largest source of funding comes from federal research grants. In 2016, INE researchers submitted 173 research proposals and generated more than $13 million in external research revenues. The institute’s work benefits the state in other ways. Two years ago, INE engineers www.akbizmag.com

Student-centered faculty are engaged in cutting-edge research which offers opportunities for valuable hands-on experience, serves as a resource for local industry, and provides solutions for crucial issues in communities throughout Alaska and around the world.

www.uaa.alaska.edu/engineering May 2017 | Alaska Business

were on the North Slope preparing to raise and rebuild the Dalton Highway when overflow from the Sagavanirktok River caused catastrophic flooding. Their focus immediately changed as they re-engineered plans and studied the floodplain to try to prevent it from happening again, Schnabel says. “I would say that will have a direct impact on the state’s finances to keep the Dalton Highway open,” he says.

Boardwalks, the connective transportation thread in many rural villages, are designed to accommodate less conventional modes of transportation, like allterrain vehicles, which must share limited space with pedestrians and bicyclists.

Myriad Engineering Challenges Other INE institutions have different challenges. For a petroleum engineer, the challenge is to get more oil out of the ground. One scientist is tracking fish by measuring the isotopes in otoliths, the bony part of a fish ear. The Mineral Industry Research Laboratory is working with the US Department of Labor to teach classes on mineral preparation, training people to work in the milling plants of mines. They also developed a mill operator simulator that can be configured to work at a specific mine. Every discipline is looking at different problems, so the particular challenge may be in the eye of the engineer, but “none of them are insolvable, in my opinion,” Schnabel says. For Connor and Belz, those solutions include a hefty dose of regional culture and human behavior. In many rural areas, Connor notes, drivers commonly drive down the middle of the road because of narrow roads, limited shoulders, wildlife, and little traffic. In villages, boardwalks are ideally built wide enough for two

Photo by Thomas Cook

ATVs to pass. But when it comes to building roads, many rural Alaska residents have few ideas of what will and won’t work. “When we go out to a community and talk about what they would like to have, they don’t have that perspective to figure out what it should be,” Connors says. “Especially from a safety standpoint, what should that look like, knowing all the multiple uses they’re going to have.” Incorporating more immersive experiences during the planning and design stages may help bridge that gap, Belz says. For instance, they could give a villager an ATV helmet with a simulator screen in it and have that villager drive down the road. Engineers

Engineering Results for Alaskan Communities since 1979 STORMWATER

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would be able to add or subtract different design elements and ask which ones felt safer. “The virtual reality thing could be a big deal for us,” Connor says. “A long-term goal is to be able to fly in and take some video of their streets, add the safety features into that video in the short term, either that evening or the next day. That way we find out whether it’s meaningful to them in what we’re doing. And as time goes along, we’ll start seeing some standardization coming about.” R Julie Stricker is a journalist living near Fairbanks.

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CRW ENGINEERING GROUP, LLC

A full-service engineering and land surveying ﬁrm

RW Engineering Group, LLC prides itself on being a full-service firm that takes a responsive, holistic approach to meeting clients’ unique needs. That’s exactly what happened with the award-winning Quinhagak Heat Recovery Project. Quinhagak, like many rural Alaska villages, desperately needed more affordable energy and fuel for its residents. So the project’s primary owner, the Alaska Native Tribal Health Consortium (ANTHC), sought a collaborative solution through CRW’s design team, the Alaska Village Electric Cooperative (AVEC), Alaska Rural Utility Collaborative, Alaska Energy Authority, and the Environmental Protection Agency. CRW provided mechanical, electrical, civil, and structural engineering design services and managed the construction of the project. It also partnered closely with the City of Quinhagak and the Native Village of Kwinhagak, seeking their input throughout the design and utilizing local construction crews. The collaboration was a major success. The Quinhagak project provided an innovative solution that is dramatically reducing energy costs, helping to prevent fuel oil shortfalls, decreasing the community’s carbon footprint, and, in turn, making the water and sewer system less costly. Commissioned in 2015 and based on its first year of operation, the system being

employed by the project is expected to save the community an average of $46,000 dollars annually. “CRW hit it out of the park and excelled in engaging the community and regional stakeholders to ensure the project was successful,” says ANTHC Rural Energy Initiative Project Manager Tashina Duttle. The Quinhagak project was destined to succeed. It was intentionally designed with easy-to-maintain controls and constructed with atypical pipes that can handle high-temperature fluids. The system’s design—which encompasses a 1,600foot heat recovery glycol loop that runs from the AVEC power plant to the water/ sewer utility building and washeteria—is incredibly efficient. It harnesses the inexpensive residual heat produced by the plant’s generators. “In addition to achieving the goal of reducing Quinhagak’s energy costs, this system has become a prototypical approach used in other communities,” says Tracy McKeon, CRW Senior Mechanical Engineer. For its impressive work in Quinhagak, CRW garnered a 2017 American Council of Engineering Companies E-Week Grand Award, 2017 Alaska Engineering Societies People’s Choice Award, and 2016 American Public Works Association Innovative Energy Solutions Award. The Quinhagak project is a prime example of how CRW takes ownership –

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of projects and adapts them to meet clients’ needs. CRW listens closely to clients, provides honest input, and modifies projects for the best results. However, CRW’s objective is not just to satisfy clients but also to meet the community’s needs. “We invest ourselves in the communities we work in; it’s not just a one-and-done kind of relationship,” McKeon says.

With more than 60 employees in its Anchorage and Palmer offices, CRW has consistently expanded over its 36year history in Alaska. One of the largest solely Alaska-owned engineering firms, CRW offers mechanical, electrical, civil, and structural engineering and surveying. CRW’s commitment to excellence, clients, and Alaska is aptly encapsulated in its tagline: “Bright People. Powerful Solutions. Building Alaska.” “We’re a full-service firm, and we’re invested in Alaska,” McKeon says. 3940 Arctic Blvd., Ste. 300 Anchorage, Alaska 99503 907-562-3252 • crweng.com

ENVIRONMENTAL SERVICES

Kenai Peninsula Could House $45 Billion Gold Mine, Natural Gas Line T

By Julie Stricker

he proposed $45 billion Alaska natural gas pipeline from the North Slope to the Kenai Peninsula takes a route that could place it within (or just outside) the borders of Denali National Park and Preserve. The Federal Energy Regulatory Commission (FERC) will look at environmental analyses by other agencies, as well as congressional action, to decide if the pipeline will be routed for 6.16 miles inside the park or if the route will go outside the borders, but on steeper, less stable ground, according to Larry Persily in one of his regular project updates. Persily works for the Kenai Peninsula Borough mayor’s office. The decision on the route, along with thousands of other details, will be outlined in a voluminous document called an Environmental Impact Statement (EIS), an essential, and mandatory, element to any large project that must be completed before the first shovelful of dirt is moved. An EIS is based on detailed studies that document the benefits, potential pitfalls, and alternative plans for the project, as well as ways to mitigate any negative effects. FERC has selected a third-party company, ERM, to work on preparations for the EIS. The state of Alaska, via the Alaska Gasline Development Corp., will pay the contractor’s fees and expenses. Persily estimates the costs to be in the millions. The pipeline is comprised of three major projects: a gas treatment plant on the North Slope, which includes a 62-mile pipeline from the Point Thomson gas field; an 804-mile pipeline from the North Slope to the Kenai Penin-

“It was pretty stringent and it took a great deal of time and money to enter into. It was something where companies and investors knew what to expect.”

—Deantha Crockett Executive Director Alaska Miners Association

“These comments ask for clarifications of discrepancies and additional information that we believe necessary to continue the review of the LNG and gas treatment plant and to begin substantive preparation of a draft environmental impact statement for the project.”

—FERC Letter to Alaska LNG, published by Persily December 14.

sula; and a gas liquefaction plant, storage tanks, and marine terminal in Nikiski, Persily says. As it stands, as of the end of 2016, FERC had compiled 420 pages of questions and comments from other agencies about the resource reports. “These comments ask for clarifications of discrepancies and additional information that we believe necessary to continue the review of the LNG and gas treatment plant and to begin substantive preparation of a draft environmental impact statement for the project,” FERC states in a December 14 letter to Alaska LNG, published by Persily. A sampling of questions include: how the project would affect subsistence hunting along the pipeline corridor; how any influx of cash to remote communities might impact them; how to handle increased recreational hunting and fishing by construction workers; safety at the Nikiski marine terminal; and how project managers plan to measure acute exposure guideline levels for toxic-chemical dispersion on the North Slope as well as Nikiski. Putting an EIS together can be a long and expensive road, says Deantha Crockett, executive director of the Alaska Miners Association. An EIS is mandated by the 1969 federal National Environmental Policy Act (NEPA), which sets up the framework for the process. The EIS itself serves as a decision-making guide for the project. Congress enacted NEPA to ensure federal agencies take a careful look at proposed activity, according to Donlin Gold’s discussion of the EIS. That activity includes:  The ideas and concerns of the public, both in public meetings and in comments on drafts of the documents.

 A range of alternatives for the project, which includes no action at all.  Thorough scientific study of baseline conditions and the potential effects of development. As originally written, NEPA was a fantastic guiding law for the permitting process, Crockett says. “It was very good,” she says. “It was pretty stringent and it took a great deal of time and money to enter into. It was something where companies and investors knew what to expect.” Broadly, an EIS starts with an initial scoping announcement that a developer wants to put in a mine or pipeline, for instance, Crockett says. That kicks off a schedule during which a member of the overseeing agency goes out to the community to provide them with a conceptual project overview so they know what is being planned. The agency asks the community for pros, cons, and suggested feedback about the project and takes it back to the developer. Working with the agency, with a lot of back and forth, the developer comes up with a project plan and it goes back for public feedback. More back and forth ensues until a final EIS is drafted. “That’s the defined process within NEPA, and it’s a good process,” Crockett says. Over the years, a few more hurdles have come about, such as lawsuits by third parties, than can delay or halt the process. Crockett says the Alaska Miners Association is working with Alaska’s congressional delegation to find ways to streamline the regulatory permit process. “I hope we get to see some legislation this year,” she says.

Alaska Business | May 2017 www.akbizmag.com

To come up with the data on which an EIS is based, crews can spend several years in the field gathering baseline data. For the 2015 draft EIS submitted for the Donlin Gold Project in Southwest Alaska, for example, the table of contents is fortyseven pages long. Compiled by the US Army Corps of Engineers, the document’s contents include detailed baseline studies of geology, wetlands, vegetation, wildlife, and air quality, among other topics. It looks at impacts to the people living in the area, as well as transportation and energy issues. It also includes transcripts of public hearings at regional villages, in both English and Yup’ik. Scientific studies have been ongoing at the site since 1995. In a 2011 project update, Donlin notes that its environmental department collects water samples from twenty surface water stations and about twenty-five groundwater wells. Aquatic biologists conduct fish surveys to document the species, timing of the fish runs, and habitat. A fish weir was erected in 2008 and used seasonally to document the number of fish entering the Crooked Creek watershed. Most fieldwork is done during the summer months and analyzed in the winter. Crews also conduct river use surveys to see how people use the river for subsistence, recreational, and commercial applications. Donlin’s goal is to affect those activities as little as possible. The mine plan includes a proposed barge landing on the Kuskokwim River near Jungjuk Creek. Residents may see up to three barge trains every day when the river is navigable. Gold was first discovered in the region in 1904 and mining activities continued over the ensuing decades. A major drilling operation in the 1990s showed the potential for a major mine. The Kuskokwim Corporation owns most of the surface land, with subsurface rights owned by regional corporation Calista. Feasibility studies followed. At Donlin Creek, the EIS process started in December 2012, when project owners Barrick Gold Corporation and Novagold Resources gave notice of intent to prepare an EIS in preparation for developing an open-pit mine in which 33 million ounces of gold is expected to be extracted over a twenty-sevenyear period. It is one of the largest known undeveloped gold deposits in the world. As envisioned, the mine will employ between 800 and 1,400 workers annually over its lifespan, bringing big economic changes to the region, which historically has seen little development. Most residents of the region rely on subsistence hunting and fishing. There are few jobs, no roads, and little infrastructure. Development of a mine of this magnitude will reshape the region’s economy and mine officials are cognizant of its effects on residents and possible impact on their culture and traditions. As part of its EIS, Donlin has performed extensive outreach to area residents, including holding dozens of town meetings in English and Yup’ik, as well as radio broadcasts in both languages. The plans include a mine footprint of about 16,300 acres, with a pit 2.2 miles long, 1 mile wide, and 1,850-feet deep. A tailings impoundwww.akbizmag.com

ment about 1 mile long, waste rock facility, mill facility, and a natural gas-fired power plant are also planned. The power plant would require a 315-mile natural gas pipeline from Cook Inlet to the site. Originally, Donlin officials considered powering the mine with diesel, but residents were hesitant at the prospect of shipping 80 million gallons of diesel up the rivers to the mine site, so they decided on the pipeline as an alternative. It will be buried and only temporary roads will be used during its construction. The mine plan would include upgrades to the docks in Bethel; a 30-mile road from the mine to the new barge landing; and a 5,000foot airstrip. Studies were conducted to examine the impacts of the new infrastructure, which are included in the draft EIS.

That draft was released in late 2015 and an expanded public comment period went through the first few months of 2016. Currently, the US Army Corps of Engineers is reviewing all the comments. It will seek additional information, if necessary, and then release the final EIS sometime in 2018. It’s a lot of work, but when finished, the EIS will provide a comprehensive road map for the development of a world-class gold mine, and, possibly, a long-awaited natural gas line through Alaska. R

Julie Stricker is a journalist living near Fairbanks.

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E3ALASKA.COM May 2017 | Alaska Business

HR Matters

By Kevin M. Dee

Managing Risk Often Means Managing Culture

anaging risk versus opportunity in business is the foundation of success for all good business. Isn’t it also applicable to all matters of significance in our lives? In business, risk needs to be quantified and mitigated for market factors as well as financially. In life we review risk factors ranging from cholesterol levels to what we allow our kids to do for activities. Risk is looked at both formally and informally. Smart businesses are always looking at measuring risk in their operations and acquisitions and deciding whether or not to pursue a venture or opportunity. Developmentally we tend not to do much risk assessment in our lives until our mid-to-late twenties when our dopamine levels start coming down to normal levels and we think about the risks and consequences of jumping off that dangerous cliff or going through with that, “What was I thinking?” move. Until that time, dopamine levels can be five times higher than normal. Between the ages of sixteen and twenty risk and consequences are not considered much. The dopamine rush clouds our judgement. So how can we as adults look at risk and seize opportunities that might contain manageable risks personally and professionally? The first thing to understand in any endeavor is what risks exist, or might emerge, and what do we need to know about them. In Alaska, weather comes to mind when considering a trip. What are the road conditions? What are the traffic conditions? Is there any construction along the way? Is the trail in good condition? Any bears in the area? Any good places to camp? What is our emergency plan? It’s the same in business: what do we know, what do we need to know, and what don’t we know? And risk review is not just a one-time event. Conditions often change once you begin a journey. The market changes, profitability changes, or the weather people prove once again they can be wrong and still keep their jobs when you encounter a snowstorm that was not predicted. This means that even though you can assess risk, you must also regularly reassess the risks and what needs to be done to mitigate them. Emerging risks that you did not see originally must be quantified on an ongoing basis. Boeing even gave them a name when building

RISK TYPE & MITIGATORS Risk Types

Geographical/Environmental Financial Market Operational Organizational People Political

airplanes. They are the “Unk-Unk,” or unknown unknowns, that we did not see originally. The diagram below shows a pyramid that would be ideal in risk management. There is very little we do not know, a robust amount we need to know, and a lot we already know. To their detriment, some companies embark and operate with this diagram upside down—not knowing much, knowing some things, and needing to know a lot. With good information in hand, we can then analyze it and mitigate the risks and prepare for the ones we cannot control. There are many types of risks and ways to mitigate them. Some of the most common are illustrated above: One of the most overlooked risks in organizations is the people risk. This is the risk of not having the right people doing the right things the right way. It includes leadership as well as those people in the trenches. Without managing the people risks inherent in every organization, your workplace might be on rockier ground than you know. For the sake of understanding the people risk better, look at your organization and ask yourself several questions. Score each question 1-10, with 1 being a low or no score and 10 being yes or all the time.  Do you hire for attitude and fit or for skill set?  Is organizational, team, and individual performance reviewed at least quarterly?  Does everyone have development plans supported by training dollars?

RISK PROFILES & MITIGATORS Risk Uncertainty

UnkUnk= the unknown/ unknowns

Don’t Know What We Need to Know What We Know

Mitigators Regular Risk Review to identify new emerging risks Specific Assessment to determine risk in known areas of concern Plans in place to mitigate with risk owners clearly identified and accountable

Mitigators

Assessment/Planning Training/Insurance Performance Management Ongoing Planning Plan/Act/Assess/Adjust Analysis/Contingency Plans Results Reviewed Data Based Decision

 Do you have succession plans in place for everyone?  Do you measure trust of individuals, groups, supervisors, and leadership?  Is your pay and benefits plan considered fair by everyone?  Is there camaraderie and respect among everyone in the workplace?  Does everyone know how their efforts contribute to your mission?  Do you measure employee engagement on a regular basis?  Do you conduct impartial exit interviews when people leave? If you scored a 100 great! You are investing well in your biggest asset: your people. If you scored greater than 60, then you are well on your way to minimizing your risk. Less than 60, and you have risk that needs attention. If you scored less than 30, you likely can’t hold on to good, high performers and morale is probably low. You are at high risk due to your people culture. You can do a lot at little or no cost to change your workplace culture for the better. Just talking about what’s working and what’s not and what we need to do goes a long way in identifying and mitigating some of the risks all businesses face. We are living in a world in which the acquisition and retention of talent is fierce. If you want to win this war, you are compelled to create a great workplace where the people who work with you are committed to the success of others as well as their own. R Kevin M. Dee has a master’s degree from Vanderbilt University and is the President of KMD Services & Consulting. He has more than twentyeight years of experience providing leadership development, organizational development, and human resource services in Alaska and internationally. Contact him at mail@kmdconsulting.biz.

Alaska Business | May 2017 www.akbizmag.com

SPECIAL SECTION

Oil & Gas

Industry Commentary By Kara Moriarty

orty years ago, Alaska’s largest and most important oil field began producing what quickly became the lifeblood of Alaska’s economy. Of course, I am talking about mighty Prudhoe Bay, one of the largest oil fields ever discovered in North America and the primary source of most of the state’s resource wealth. This year, we celebrate this legacy field, as well as the start-up of the Trans Alaska Pipeline System (TAPS), the engineering marvel that moved Alaska’s enormous reserves of oil from the remote North Slope to tidewater in Valdez. What has changed in the four decades since oil began flowing from Prudhoe? Some things remain virtually unchanged, whereas others are drastically different. One constant, as true today as it was in 1977, is that Alaska is subject to the cyclical nature of the oil and gas business, a course often altered by unpredictable and dramatic fluctuations in prices. Longtime Alaskans have experienced first-hand the windfalls that accompany high oil prices. They have seen flush state budgets and a bonanza of private-sector investment and spending. Those same Alaskans have also experienced lean times born from low oil prices. They have seen the state struggle to meet budgetary demands and they have seen friends and family struggle to secure employment. Unfortunately, we currently find ourselves mired in a downturn, navigating a “lower-forlonger” oil price environment. This reality creates extraordinary challenges for both the oil and gas industry and state governments. In that sense, Alaskans are all in the same boat. Nevertheless, much like in the past, we have reason for optimism. Alaska still has great rocks that portend a strong future. Our geology is the envy of the world. Just this year, companies have announced extraordinary discoveries with amazing potential: Caelus with its Smith Bay field, Repsol/Armstong in the Pika unit, and ConocoPhillips with its Willow find. All three of these discoveries could result in hundreds of thousands of barrels in new oil moving through the pipeline every day. What has changed since Prudhoe Bay and TAPS’ inception is that today Alaska has many decades of oil exploration, development, and production under its belt. Prudhoe Bay is now a mature oil basin, meaning we, as Alaskans, have already experienced the initial heyday and all the benefits that it provided. Sadly, it also means that it is harder to bring new oil online. That said, the industry has succeeded in doing just that, despite an oil price crash; through billions of dollars in investments, recent years have seen oil production level out and then increase in 2016, a feat not seen in Alaska in almost fifteen years. Stemming the

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Kara Moriarty AOGA President & CEO

decline rate is, in and of itself, a monumental accomplishment. However, to go even further and actually increase production represents a major and historical achievement. Alaska is living proof that decline can be reversed under the right conditions. We are also no longer the big fish in a small pond. As few as fifteen years ago, Alaska was an oil power player, placing second in oil production behind only mega-producer Texas. Nowadays, with the advent of the shale oil revolution, Alaska finds itself having to compete with other domestic sources of oil in ways no one would have predicted. As a result, states like North Dakota and California have pulled ahead of Alaska in oil production, and Texas has left us squarely in the dust. Competition for capital dollars is fierce. That increased competition, coupled with the high cost of doing business in Alaska, leaves us at a relative disadvantage when it comes to attracting multi-billion dollar investments. What was true then, and remains true now, is Alaska’s reputation for grit, determination, and spirit. It took guts and fortitude to develop and produce Prudhoe Bay’s massive amounts of oil and an enormous leap of faith (and an act of Congress) to begin building TAPS. Times are tough in Alaska’s industry now, a demonstrable

reality with which we must come to grips. However, the same resilience Alaskans are known for will get us through this rough patch together, if for no other reason than we have more oil remaining in the ground than has moved through the pipeline to date. When Alaskans unite around an idea, when we decide something simply must be done, little to nothing can stand in our way. So, fellow Alaskans, let’s roll up our sleeves, work together, and ensure the next generation of Alaskans have just as much, if not more, opportunity than the current one. We have the natural resources to make it happen, the question is, do we have the will? R Kara Moriarty is President and CEO of Alaska Oil and Gas Association. Originally from South Dakota, Kara came to Alaska to teach elementary school in Atqasuk, an Inupiaq village in the North Slope Borough, according to the AOGA website. Kara served as legislative staff in Juneau to Senator Gary Wilken and was the President and CEO of the Fairbanks Chamber for four years. She joined the AOGA staff in April 2005. She became the fifth Executive Director of AOGA on January 1, 2012 and President/CEO in December 2013. May 2017 | Alaska Business

SPECIAL SECTION

Oil & Gas

Q&A with ConocoPhillips Alaska President Joe Marushack

Alaska Business Monthly: The Willow discovery in the Greater Mooses Tooth Unit of NPR-A was welcome news in January. What can you tell us about ConocoPhillips Alaska’s investment in this field and the development timeline? Joe Marushack: We are excited about this significant new oil discovery in northeast NPR-A. We have well, production, and seismic data that provide a solid technical foundation confirming Willow is a discovery with development potential. Willow is also close to existing infrastructure, which helps improve its economic viability. Our initial estimates are that there could be recoverable resource potential in excess of 300 million barrels of oil. This winter we began appraising the discovery using 3D seismic. We’re still working on various development scenarios, but assuming timely permit approvals, competitive project economics, and a 62

competitive state tax framework, initial production could occur as early as 2024. ABM: Greater Mooses Tooth Unit discoveries are expected to add oil into TAPS. How much and how soon? Marushack: We’ll be evaluating appraisal results and working on various development scenarios, but we’re estimating that Willow could produce up to 100,000 barrels of oil per day. Development options include building a stand-alone production facility or processing production through the Alpine Central Facility. The highest production rate scenario assumes a standalone facility. ABM: Where is the company’s next big exploration project on the North Slope? Marushack: As a follow up to the Willow discovery, ConocoPhillips and its bidding partner, Anadarko, were successful in

December’s federal lease sale on the western North Slope, winning sixty-five tracts for a total of 594,972 gross acres. ConocoPhillips independently was successful in December’s state lease sale on the western North Slope, winning seventy-four tracts for a total of 142,280 gross acres. The acreage we acquired in the two lease sales will provide us the opportunity to pursue geological play types that have led to other discoveries in the area. ABM: ConocoPhillips has a reputation for sustainable development and collaboration with North Slope stakeholders. How is the CD5 development an example of this? Marushack: To me, the CD5 project represents what ConocoPhillips does really well in Alaska—finding good projects, beating difficult odds with patience and perseverance, collaborating with key stakeholders to reach consensus on

Alaska Business | May 2017 www.akbizmag.com

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solutions, and planning and executing the work. CD5 came online below budget and ahead of schedule, with an absolute commitment to safety. As the first oil development on Alaska Native lands within the boundaries of the National Petroleum Reserve-Alaska, CD5 is a state-of-the-art facility located in a remote, environmentally sensitive area. Much of the work to develop it took place during the brief windows of opportunity when ice roads provide access to our remote operations on the North Slope. Over a twoyear construction phase, more than 120 miles of ice roads were built; a million and a half cubic yards of materials were mined and hauled; and 32 miles of pipelines and

electrical infrastructure were installed. The innovative construction of a 1,400-foot bridge spanning the Nigliq Channel of the Colville River was an achievement that involved working closely with the village of Nuiqsut. The actual bridge construction used innovative technology to launch the bridge deck and kept people and equipment off the river ice. For the whole CD5 development, we listened closely and communicated frequently with Nuiqsut leaders to solve problems and alleviate concerns. In addition, we have made significant efforts to reduce the footprint of our developments and minimize our impact on the environment. For example, we have eight years of studies to document wildlife use in the area, archeological studies helped

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guide placement of facilities, as did studies of water flow and the subsistence lifestyles of residents. We also built pipelines and drill sites to allow caribou and other wildlife passage, and the lack of a permanent road from Kuparuk to Alpine decreases the gravel footprint on the fragile tundra. Ice roads are built in the winter to allow delivery of heavy equipment and supplies to Alpine and CD5 and then melt by late April, leaving little trace they were ever there. Finally, CD5 is a near zero-discharge facility. The waste generated is reused, recycled, or properly disposed. ABM: In the CD5 Case Study ConocoPhillips said safety is more than a priority, it’s a core value and the number one issue and that the most important thing you can do is set the right safety tone. How are you doing that? Marushack: At ConocoPhillips, our safety culture is certainly a core value, and we believe everyone is a safety leader. The year 2016 was our safest on record for ConocoPhillips Alaska—and we try to incorporate safety into everything we do. A key component of our “Incident-Free Culture” is having people actively look out for each other, which we believe will ultimately result in the entire workforce returning home injury-free every day. This is demonstrated when individuals have a willingness to help and to accept help from their co-workers. We recognize the power of relationships to change behaviors, and we all try to be accountable. We encourage safety interventions—candid conversations about safe behaviors—which allow us to challenge each other in ways that build rapport and strengthen our overall performance. I myself have been the recipient and benefactor of an intervention several times over the last year and a half. I appreciate that people cared enough about my safety to take action. I guess you could say I’m the company’s “safety president”, and accordingly, I believe in safety, live it, talk about it, and I’m willing to have the candid conversations. ABM: The world glut of oil and gas has led to a great deal of consolidation and decreased activity around the globe; how have you saved costs in Alaska? Marushack: Based on our 2017 budget, we have reduced our operating costs by almost 20 percent since 2014. We have also worked to reduce the capital costs of new projects. We have done this by working closely with our vendors and contractors to lower costs, and we appreciate their willingness to exercise flexibility considering that many contracts were negotiated when oil prices were much higher. Unfortunately, the decrease in price has also meant that we have had to reduce our workforce. However, we’re now better prepared to survive the in the current economy where we believe prices will be lower for longer and where we expect continued price volatility. We are a stronger, leaner company than before the oil price crash. Right now, COP in Alaska is appropriately staffed for our capital budget of about a billion dollars a year, but if for any

Alaska Business | May 2017 www.akbizmag.com

ABM: ConocoPhillips has said market conditions led to the decision to sell company interests in Cook Inlet holdings in the Beluga River Unit and North Cook Inlet Unit and to market the Kenai LNG Facility. If the state buys it, how useful would it be to the Alaska LNG project? If someone else buys it, can they use your export license? Marushack: I can’t speculate on who would buy the plant, but the current export authorization, received in February 2016, is valid through February 18, 2018. It is anticipated that the purchaser would retain the existing authorization. The data room that was set up to market the plant is closed and we have received interest in the plant. We believe the Plant is a strategic asset that offers good opportunities for the right buyer. ABM: ConocoPhillips is known the world over for its exemplary corporate citizenship. What are some of the ways ConocoPhillips is a good neighbor in Alaska? Marushack: ConocoPhillips and its employees donate millions of dollars and thousands of hours annually in Alaska. Our employees are friends, neighbors, teachers, and coaches, and they volunteer for organizations like the Red Cross, Bean’s Cafe, Camp Fire, and Habitat for Humanity. In all, ConocoPhillips Alaska donated nearly $3.2 million to 243 nonprofit groups in 2016. And since 2000, we’ve donated about $128 million in support of social services, education, civic, arts, conservation, and health and safety initiatives statewide. ConocoPhillips Alaska is the single largest donor to The University of Alaska System at $44 million. The company’s historic $15 million pledge to UAA in 2008 funded completion of the ConocoPhillips Integrated Science Building ($4 million) and the ConocoPhillips Arctic Science and Engineering Endowment ($11 million). The endowment bolsters Arctic science and engineering programs and research at UAA and is the largest in the University of Alaska system. Last year, ConocoPhillips employeedriven programs and volunteerism contributed more than $1.24 million to Alaska nonprofits, and our employees volunteered more than 3,500 hours helping neighbors throughout Alaska. And, 2016 marked fifty years of support for the United Way, including fourteen consecutive years of donating more than $1 million. ConocoPhillips also awarded about $300,000 to various conservation and natural resource projects. One highlight is the long-standing Spirit of Conservation Program, which gave $160,000 to eight projects statewide, with a focus on salmon habitat restoration, trail enhancements, avian research, and conservation education. We also donated $40,000 to the Alaska SeaLife Center for its marine wildlife rescue program. R www.akbizmag.com

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Oil & Gas

ANC Exploration Update Alaska Native Corporations invest in-region By Tasha Anderson

laska’s oil and gas industry primarily focuses on the North Slope and Cook Inlet, where significant discoveries have been transitioned into production for years. While some exploration has been done in Middle Earth (essentially the rest of Alaska), much of it was done twenty or even thirty years ago, and the amount of exploration compared to the size of the area means that knowledge of what’s going on under the ground is in many ways lacking. What is well known is that Alaska almost spills over with natural resource development opportunities for oil, gas, and mined commodities. Outside oil and gas companies economically must “follow the oil,” but some of Alaska’s Native Corporations are spearheading investment in-region, compiling valuable data and looking for development opportunities on their own lands.

Ahtna Ahtna has been clear throughout the process of preparing and drilling a wildcat well in Tolsona that their purpose is to spur regional development as well as search for options to reduce the cost of local energy. In an interview conducted in mid-September 2016, before Tolsona No.1 was spud, Ahtna President Michelle Anderson said exploration in the region “goes back to our mandate: using 66

(natural) resources to benefit our shareholders. Whatever is there, we believe our elders selected our lands during our Settlement Act to take care of us. We feel we have an obligation to use those resources for the benefit of our people. If we are successful it’s going to completely enhance and benefit the local economy.” Ahtna spud Tolsona No.1 on September 28, 2016, intending to drill approximately 4,300 feet. Drilling concluded December 5, 2016, at a final vertical depth of about 5,500 feet, according to an Ahtna January press release. The release states, “Despite the challenges, the drilling phase was safely completed in seventy days with zero Occupational Safety and Health Administration recordable incidents.” Tansy says that Ahtna considers the project a success, in part because of a perfect safety record. “There were a lot of little pieces, and we wanted to do a project that was safe. That was one of our highest priorities.” Ahtna has not yet announced any further plans at the Tolsona site, and Tansy says, “We’re still at the data gathering point,” having achieved their second major goal of reaching their anticipated depth. “For us the Copper River Valley has had great interest in the last twelve to thirteen years from outside parties, and there have been a couple wells

drilled out there, but we have not been able to evaluate a lot of what was really there.” Tansy says there hasn’t been a significant exploration effort in the Copper River Valley in many years. “At this point we’re putting together a Copper River Basin below-ground picture that gives us a better idea of how the geological features were formed out there, and they are interesting.” Interesting and challenging, according to Ahtna Oil and Gas Development Manager Dan Lee. “We knew the basin had challenges,” in part through information gathered from past exploratory wells drilled by other parties. “But until you fully are engulfed in it and doing it yourself, you don’t really understand those challenges. It’s always easy to say we can engineer things to minimize them or mitigate them out completely, but to actually put that into practice is a little more difficult than you think,” Lee says. For Tolsona No.1, Ahtna had expectations of high-pressure water that would affect drilling the well. Lee says that although the highpressure water was expected, it was perhaps even more of a challenge than anticipated. “And we experienced different things than the last well drilled in the mid-2000s. We used different technology; therefore we found different challenges to that technology.”

Alaska Business | May 2017 www.akbizmag.com

Doyon Another major player in Middle Earth exploration is Doyon, which while heading its own exploration projects continues to support major oil and gas industry developments through its wholly owned subsidiary Doyon Drilling, Inc. Doyon began an exploration program in the Nenana Basin in 2005 and has continued those efforts through last summer with wildcat well Toghotthele #1, the third well the www.akbizmag.com

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An unanticipated challenge was that the underground structures were at a different angle/slope than Ahtna had anticipated based off on the offset data. Lee says, “It’s safe to say that there isn’t one thing that’s going to really completely mitigate away [the challenges] of the basin. If there’s future drilling, and if this becomes something that’s of great interest, anybody and everybody that drills out there is going to find those challenges. Now, we managed them, and we got through them, but they’re there for sure.” Challenges or no, every well provides a wealth of information, which Ahtna is processing in its “data room,” a pool of data collected through Tolsona No.1 as well as data from other efforts, including other wells and seismic data. “The gathering of this data brings a lot of other opportunities to the table,” Tansy says. For the time being, Lee says, Tolsona No.1 has been placed in a suspended state, meaning Ahtna has taken all the necessary steps to make the well safe, including a wellhead and monitoring equipment and systems that allow any pressure that may build up in the well to be bled off if necessary. Lee says that the well can remain in a suspended state for a year, after which Ahtna will have to determine whether or not to plug and abandon the well or apply to keep it suspended or for other activity. For that year, Ahtna will monitor the well for the Alaska Oil and Gas Conservation Commission: “We send them a monthly report so they know what the pressures read on the well, if any,” Lee says. All monitoring information adds to Ahtna’s current “mountain of data,” as Tansy describes it. He clarifies that, for Ahtna, “We’re looking at a bigger picture for the region. We’ve seen over the last few years a number of people, a number of our shareholders as well as non-natives, moving out of the region, and we’ve seen the schools consolidated. Our intent really was to try and build something that would not only provide jobs and opportunities and a boost to the local economy but also to bring down the cost of high utilities. That combination is still our goal.” For Tolsona No.1, Tansy says that fifteen Ahtna shareholders had an opportunity to directly work on the project, participating in drilling, security, transportation, and civil work. The project also extended the season for some local businesses. “We wanted to have a project that was well received by the community, and it was,” Tansy says. He continues, “I’m such an eternal optimist and am confident about future development opportunities in the region.”

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Photo courtesy of Doyon

Doyon and partner CIRI conducted a seismic program through contractor Geokinetics in the spring of 2017, with as many as one hundred workers in the field at one time. Seismic data was gathered in an eight-mile by eight-mile area approximately ten miles north of Toghotthele #1.

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company has spud since 2005. Toghotthele #1 was a follow-up to a 3D seismic program that took place in 2014 and provided Doyon with various drilling options west of Nenana, which is approximately fifty miles from Fairbanks. Doyon President and CEO Aaron Schutt says that Doyon has been pursuing an oil or a gas find: “We’ve always been looking for either. Oil is a more valuable commodity, so if you find commercial oil, you’re very happy. But in the context near Nenana with the local market in Fairbanks, natural gas is very attractive, too. That’s not necessarily true anywhere in Alaska, because you can have a good gas find and nobody to export it, or no local use, and you don’t have much, frankly.” Doyon was joined during the summer of 2016 by partner Cook Inlet Region, Inc. (CIRI) in their oil and gas exploration program in the Nenana Basin. Schutt says the partnership with CIRI is “very comfortable; we know those folks quite well, obviously, and it’s nice to have an Alaska partner.” He continues that he sees great potential and a long future of Alaska Native Corporations, in particular, working together in the state, “In part because we’re not scared of Alaska,” he says. “The things that are going on in Juneau with the fiscal problems, and changing tax regimes—it doesn’t scare us the way that it would for people from Houston, or New York, who already think that Alaska’s so far away and so different. Then you layer the constantly changing environment in Juneau with regard to oil and gas policy, and it just scares them. So that’s one really nice thing about having an Alaska Native Corporation partner: they understand exactly where we’re from, it doesn’t scare them, and of course we share a lot of values,” Schutt says. Doyon announced in November 2016 that the 10,000-foot Toghotthele #1 well did not produce a commercial discovery. The release stated, “While the results of the well were not commercial, both companies remain optimistic based on overall exploration results from our multi-year efforts, the data gathered from the well, and the hydrocarbon development possibilities in the basin.” Schutt says that, even without a commercial find, the data gathered from drilling the well is incredibly valuable. “We certainly saw evidence of hydrocarbons in the basin; there were a lot of gas shows, natural gas, which is typical of the results of the other two wells. And then there were a number of oil shows, and we’re not talking liquid oil, we’re talking about staining in rocks. We’ve seen it one other time in the Nunivak #1—there were a couple of those shows, and that was evidence that oil was generated in the basin and had moved through somewhere in the distant past. And so we saw much more evidence in Toghotthele #1 and that’s exciting in the sense that we certainly hope to find oil in the basin,” Schutt explains. Doyon and partner CIRI have already begun moving forward in their exploration efforts with a seismic program that began in January and wrapped in April. Schutt says the seismic program was “fairly large,” and

Alaska Business | May 2017 www.akbizmag.com

Doyon Drilling Doyon Drilling is an active participant in oil and gas exploration and production. Schutt says, “The most exciting [project] is our new build that we announced with ConocoPhillips last fall, the Rig 26 project.” Rig 26 is being constructed in Canada and is set to arrive in Alaska in 2020. The rig will have the capacity to drill wells up to six miles horizontally, considerably further than current North Slope long-reach rig capability. Schutt www.akbizmag.com

says, “It will change the industry in Alaska a bit; these super-long extended reach rigs mean you don’t need to build as many roads and pads. Sitting here in our Anchorage office [located at the C Street and Klatt roundabout] they would be drilling all the way to the Port of Anchorage downtown and hitting a parking lot or even smaller target.” Schutt goes on to say such technology wasn’t available even ten or fifteen years ago. Other Doyon Drilling projects include Rig 142, which Schutt says came into the field only a year ago, operating in NRP-A and the Alpine field; the Artic Fox rig performing exploratory projects, recently with Armstrong; and an exploration project with 88 Energy taking place just off the Dalton Highway. Doyon Drilling wholly owns all eight of its rigs, five of which are currently working. Schutt says that for a long time in Alaska all

eight rigs were working, but for a short period during the recent industry decline they dropped to as few as three. “We’d definitely like to have them all working,” Schutt says. “Alaska is a little different market with rigs; we have longer term contracts and more consistent usage.” He says in other locations, even in a busy environment, usage varies widely as there are many competitors and operators. “We like the steadiness of having them all working; it helps us with our keeping employees working and trained at the levels we want them trained at and achieving our shareholder employment objectives— that’s important.” R

Tasha Anderson is an Associate Editor for Alaska Business Monthly.

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processing data from it will likely take a few months to complete. At press time in April, Schutt estimated more than one hundred workers were in the field for the program. “We had to ramp up given the warm weather in the Interior in early April before everything became mush, and soup, and mud.” The seismic work is taking place in an eight-mile by eight-mile area approximately ten-to-twelve miles north of Toghotthele #1, Schutt says. He says it’s possible that Doyon will be analyzing a scenario in which the company would drill in the area next winter, beginning sometime in January or February 2018. “It’s definitely a winter-only drill location within that seismic area.” Schutt explains that it’s too far from any current infrastructure to develop without building an all-weather road (instead of an ice road) and that would be too expensive for an exploration program. “And the time to build that road—we’d have to be building it right now in the winter given its location.” Every well is different, and Schutt says Toghotthele #1 definitely provided some further insight into the basin. “We learned in this basin there are very deep sand dunes kind of throughout this area, and it caused us some issues in what’s called the surface hole. We hauled a lot of sand out,” he says. Schutt is clear that Doyon’s exploration programs are predicated on economic goals. “We do programs for economic reasons,” he says. “But when we are running a program, we definitely focus on hiring shareholders and local village corporation owned businesses.” Seismic isn’t one of Doyon Drilling’s regular lines of service—their program is being conducted by Geokinetics—but even then the focus remains. He says at one point during the seismic work about forty locals from Minto and Nenana were working on the project. “SAExploration did the last 3D seismic program for us. Both companies have worked for us in the past, and they’ve both done a great job including our shareholders and locals in their programs,” Schutt says. Schutt is optimistic about Doyon’s future exploration efforts. “We learn a lot about the basin every time. Most people don’t remember the history of Prudhoe Bay; I think the thirteenth well was the discovery well. They drilled many dry holes before they found oil, and now it’s Prudhoe Bay. … We’re not going to find a Prudhoe Bay; we know that. But you have to learn a lot about the geology and the history in order to narrow in on the area where you’re going to have the most success. Well, we understand that geologic history more and more as we do the work.”

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Oil & Gas

Q&A with Keith Meyer, President, Alaska Gasline Development Corporation

Photo courtesy Alaska Gasline Development Corporation

Alaska Business Monthly: Many Alaskans are excited for construction on the Alaska LNG project to get started, to put thousands of people to work, to boost the economy. What is being done to make that happen? Keith Meyer: The Alaska LNG project is important for the state of Alaska and will provide significant job opportunities for trades and craftsmen. The project is expected to create approximately 10,000 jobs for design and construction, plus 1,000 jobs for long-term operations. Studies have shown that each direct job will create a ripple effect in the economy that generates 20 indirect jobs. The Alaska Gasline Development Corporation (AGDC) is actively directing the project and is taking positive steps forward. In 2016, AGDC took the reins of the Alaska LNG project and the technical and regulatory handover is now complete. AGDC staff is actively engaged with Asian commercial interests and recently hosted an Alaska LNG Summit that brought together twenty-three representatives from fourteen companies for the purpose of learning more about the Alaska LNG project. In addition to site visits to Prudhoe Bay and Nikiski, the Alaska LNG Summit included a full day of presentations from Alaskaâ&#x20AC;&#x2122;s major producers, government representatives, Alaska Native Regional Corporations, and labor representatives. One-on-one meetings were also conducted, allowing company representatives to ask specific questions and gain further clarity on various aspects of the project. AGDC continues to work with the Federal Energy Regulatory Commission (FERC) on the Section 3 application and anticipates the filing will take place this spring. Collaborative agreements have been finalized with BP and ConocoPhillips, and AGDC has initiated discussions with instate utilities and potential customers.

Alaska Business | May 2017 www.akbizmag.com

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ABM: What are some of the companies involved? Meyer: Companies assisting AGDC with responses to the Draft 2 Resource Reports include, AECOM, Worley Parsons, CH-IV, Greenburg Traurig, CH2M, Hawk, Arktis, Alaska Land Status, AES, Owl Ridge, RDI, Stoel Rives, PRL Logistics, and Michael Baker International, among others. ABM: Is that work progressing quickly enough to keep AGDC on track to file the FERC application this summer? Meyer: Yes, AGDC is on track to file the Natural Gas Act (NGA) Section 3 application to FERC; we now plan to file in spring. ABM: Full-on front end engineering and design (FEED) was scheduled to begin this year. Will it? Meyer: The project co-venture partners have spent more than $600 million in engineering and optimization work. Additional front end engineering will be rolled together into an overall engineering, procurement, and construction (EPC) arrangement. As part of the regulatory process, and to better quantify the potential cost exposure, AGDC plans to engage the service of a major EPC firm with the capability to manage the overall project construction. ABM: Where will the $2 billion come from to FEED the project: obtain permits, final designs, and prepare for a construction decision in 2019? Meyer: As part of the overall project funding process, numerous sources of project equity and debt are being considered. In addition, a cost-effective structure has been created that is financeable and compresses the timetable. This structure provides AGDC the agility needed to work through the complicated federal and state permitting system. ABM: Originally, the project was expected to cost $45 billion to $65 billion. Now it’s mostly referred to as a $45 billion project. If the project costs were actually reduced $20 billion, how was this done? Meyer: The $45 billion to $65 billion was an early estimate made prior to conducting significant engineering. The $600 million spent over the last two and a half years was www.akbizmag.com

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ABM: How many people are working to address FERC’s 420 pages of questions and move forward with the rest of the application process? Meyer: The AGDC project management team is working with more than seventyfive individuals from engineering and environmental firms that were also involved in the development of the Draft 2 Resource Reports. The team is addressing nearly 3,000 comments received from state and federal regulatory agencies and is using all available data and previous regulatory work products to address the questions. AGDC is also working with state agencies to coordinate their questions and help streamline the response to FERC.

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spent on engineering and optimization. The current estimate is actually below $45 billion and includes more than $15 billion in contingencies and owner’s costs that are being challenged further. High-quality engineering and cost estimating efforts were completed in 2016, helping to optimize the project, reduce uncertainties, and decrease anticipated construction costs. In addition, AGDC is working to reduce the financial costs associated with the investment and is seeking parties that are willing to lend and invest in the midstream project at the lowest market rates in exchange for a steady reliable return. ABM: What kind of annual debt service is realistic? Meyer: If we look simplistically, and call the project a $40 billion total number, financed with 75 percent debt at an average interest rate of 5 percent for twenty years, and using a basic mortgage-style debt service, the annual debt service would be about $2.4 billion per year. The system will handle about one trillion cubic feet per year (1 Tcf), which means the total debt service will be about $2.40/MMBtu for the twenty-year debt life. This debt service looks to be very manageable, but AGDC is also looking at ways to reduce the interest cost further. After the debt is retired, there are still many decades of gas supply in the north. Assuming the pricing for the service is still competitive, the $2.4 billion payments that would have gone to debt service will then go to the equity investors. The long-term, stable nature of gas pipelines and LNG projects is what makes them attractive to the large infrastructure funds, which provide stable investments for pension funds, insurance companies, sovereign wealth funds, and other low-risk investors. ABM: Project documents indicate 115,000 forty-foot-long pipe sections for the project. If American steel is used, as has recently been mandated by President Trump, how much will that increase project costs? Meyer: The overall cost of the Alaska LNG project will be contingent on a variety of supply chain variables, and President Trump’s directive to use American steel in new pipelines is one of those variables. The executive order states that pipeline builders use US products “to the maximum extent possible and to the extent permitted by law.” When the Alaska LNG project advances into construction, the cost and availability of US steel will be considered. ABM: The original plans have the project terminating at Nikiski. Where does it actually make the best sense to locate the gas treatment facility, export terminal, and pipeline terminus: Nikiski, Port Mackenzie, or Valdez? Why? Meyer: The Gas Treatment Plant facility will be sited on the North Slope where the gas exists. The natural gas will be treated to remove carbon dioxide (CO2) and hydrogen sulfide (H2S) before entering the pipeline for

Alaska Business | May 2017 www.akbizmag.com

ABM: If the state is unable to acquire the 650 acre LNG plant site in Nikiski, would it consider relocating the project to Port Mackenzie or Valdez? Meyer: AGDC is currently working collaboratively with the former joint venture partners for the rights to acquire the proposed Nikiski site and expects those discussions to conclude favorably. ABM: What makes the Alaska LNG project attractive to investors when there is such a worldwide glut of LNG?

Meyer: The Alaska LNG project is attractive to investors based on acceptable returns. Several major global investments banks have been interviewed for a potential role as financial advisor and lead arranger. Each of the banks have the credentials to arrange funding for a multi-billion dollar project and have demonstrated credentials in the US LNG project finance arena. Investors recognize that additional LNG will be needed but are trying to find the best projects to support. Alaska has clear strategic and locational advantages that makes it an attractive project. However, we do need to compete in the global arena to claim our share of the market. ABM: What are your thoughts on the emerging global shift from long-term contracts to short-term contracts and spot market pricing for LNG? What effect will this have on securing customers and investors? Meyer: Buyers are seeking to evolve contract terms in order to reduce long-term price volatility by seeking destination flexibility, re-openers, and non-oil linked pricing. AGDC is confident the Alaska LNG project can deliver North Slope natural gas to Asian markets at a competitive purchase price. Part of the reason for the shift to shorter term contracts is a frustration on the part of buyers due to wild swings in prices as a result of oil-linked contracts. The Alaska project is primarily an infrastructure project monetizing stranded gas, so we can offer

buyers a long-term stability that is not easily achieved elsewhere. Because the major buyers are gas and electric utilities, serving millions of residential customers, they have a desire for the kind of stability that Alaska can offer. ABM: Has AGDC secured any customers or investors for the Alaska LNG Project? Meyer: AGDC continues to establish new contacts with potential LNG buyers in Asian markets. At the same time, AGDC is nurturing existing relationships and preparing for contract negotiations with potential customers. Meetings are also being held with several large, worldwide LNG trading companies. The contracting process typically takes a couple years, but we are striving to compress that timeframe in half. The project has only been truly introduced to the global buying community as a direct opportunity since late last year and in earnest only since AGDC stepped into the lead. We have received an enthusiastic reception from the large Asian utilities but need the time it takes to develop an acceptable service offering in these times of global surplus. Fortunately, Alaska has earned excellent brand identity in the LNG arena over the last forty-five years with a highly reliable and direct service; now the challenge is to compete in the global arena against projects in the Lower 48 states, Canada, and other countries. R

FUELING ALASKA’S ECONOMIC ENGINE Together we can position Alaska for a prosperous tomorrow. Alaska’s natural gas infrastructure project will create thousands of jobs and fuel Alaska’s economic engine with reliable, clean, low-cost energy for generations.

www.agdc.us www.akbizmag.com

May 2017 | Alaska Business

OIL & GAS SPECIAL SECTION

transport to the LNG facility. The site for the pipeline terminus and LNG export terminal in Nikiski was chosen following an extensive review of potential sites. Two major studies were conducted—a screening study to identify and assess high level potential sites and a feasibility study to assess the ability to cost-effectively design, permit, build, and operate at the site. Factors considered included available land, adequate water depth, and waterway width to accommodate LNG carriers, distance from shore to forty-foot depth, a port’s potential ice-free window, and proximity to infrastructure or other industrial/port facilities. Fortunately for Alaska, there are a number of very good sites for LNG projects, including Valdez and Port Mackenzie, but the Alaska LNG project selected Nikiski and has conducted extensive work relative to that site.

SPECIAL SECTION

Oil & Gas

North Slope & Cook Inlet Activity

The BP-operated Prudhoe Bay oilfield has surpassed 12.5 billion barrels of production. Prudhoe Bay’s large-scale enhanced oil recovery includes the use of enriched gas and re-injecting 8 billion cubic feet of produced natural gas each day from the Central Gas Facility to support reservoir pressure.

Alaska’s oil and gas industry is always “active” By Darryl Jordan

n business or financial terms, “activity” does enjoy a spot as a leading indicator of success or failure. Normally measured by the amount of sales and inventory turnover, a successful activity level leads to a business’s overall profitability. In Alaska’s oil and gas industry, oil and gas activity generally focuses on one element of the three branches of defined financial activity.

Many Aspects of Activity The three branches of activity in accounting vernacular are operating, financing, and investing. In Alaska’s oil and gas production run dating back to the discovery of oil (in quantities measuring more than a billion barrels of oil on Alaska’s North Slope and in the nearby Cook Inlet), oil and gas activity has mainly focused on investment activity. Indeed, investment activity is very important because an investor will want not only a steady return on investment but a chance for 74

equity growth in the base value of the initial investment. Case in point, the Alaska Department of Labor Research and Analysis Section put the number of oil related jobs in 1980 at 6,000. In 1977 the Prudhoe Bay field was just beginning to flow oil and would not peak in throughput in the Trans Alaska Pipeline System (TAPS) until 1988, when the number of oil field employees increased to more than 9,000. The 1980s was a time of investment for major oil companies on a scale that had the world financial markets also peaking with activity. By 1991, the then-peak of 10,700 oil employees dropped and would not top 10,000 oil employees again until 2006. The year 2015 saw a record number of 14,000 oil employees. The subsequent (in excess of 20 percent) drop to preliminary 2016 numbers is 11,000. Alaska activity in the oilfields is at present still well over the average for decades prior to 2006. So activity needs to be taken in context. Activity at BP Alaska is a great example of context. Investment activity, as a percentage, was drastically reduced from 2015 expenditures of $1.1 billion to roughly half that number at $600 million in 2016 dollars. BP Group Chief Executive Bob Dudley in January 2017 stated that total capital expenditures will be under $17 billion for 2017 and 2018 for all their operations, yet Alaska is grabbing a large percentage.

Investment activity aside, operational activity has not slackened. The Greater Prudhoe Bay gross production in 2015 was 281,800 barrels of oil per day and in 2016 measured in at 280,700 barrels per day. This number is well over half of the throughput for TAPS in 2016. In context, overall activity prompted a reduction of 50 personnel for BP Alaska from 2015 numbers of 1,750 to the 2016 numbers of roughly 1,700. The 1,700 direct oil employee jobs support approximately 16,000 industry jobs according to BP; however, the Alaska Oil and Gas Association places the number of industry jobs at 110,000, in total, throughout the state. Given a prorate share of the jobs versus throughput, the activity is important. Janet Weiss, president of BP Alaska, says, “Our focus at Prudhoe Bay over the next few years would be to improve competitiveness by reducing costs both for operations and for new developments, with a goal of making programs that used to require $80 oil to be economically competitive, economically competitive at $55 per barrel oil.” On the operating budget side, expenditures are $100 million less than spending in 2015 of $1.2 billion. This is in part due to BP Alaska’s improved efficiency of Greater Prudhoe Bay area operations in response to the low price environment. Examples of ef-

Alaska Business | May 2017 www.akbizmag.com

North Slope South of Prudhoe Bay, Accumulate Energy Alaska is planning to spud Icewine 2 in the second quarter to fracture and test the tightoil formation the HRZ shale. The well will be drilled from the Franklin Bluffs pad, approximately thirty miles south of Deadhorse, adjacent to the Dalton Highway. The 11,200 foot vertical wellbore will be hydraulically stimulated followed by flow back tests. Further sidetracking, subsequent deepening of the wellbore, or lateral legs would be considered after the evaluation and would likely be carried out in 2018. Offshore in the Beaufort Sea, Hilcorp Alaska is continuing to progress the Environmental Impact Statement (EIS) for development on an artificial gravel island. The plan is for a new 9.3 acre, man-made Liberty Island, which would take an estimated two years to construct and require about 833,000 cubic yards of gravel to be excavated from an onshore gravel mine. The island will have facilities for drilling, production, operational support, utilities, camp, and a reliefwell area, and would use a subsea pipeline to a tie-in with the existing Badami pipeline, which also carries hydrocarbons produced at ExxonMobil’s Point Thomson facilities. Hilcorp is also planning a new drill pad at Milne Point, on the shore between the Prudhoe Bay and Kuparuk units. The new “Moose” pad is designed to support development of forty-four wells drilled into the Kuparuk and Schrader Bluff formations. The 17-acre pad is estimated to require 236,550 cubic yards of gravel and will eventually be connected by a three mile road and pipeline. If all goes as planned, construction will be completed by September 2018 and allow the start of drilling. Anadarko Petroleum is a large leaseholder on the North Slope, and the company has a capital budget of $4.5 billion to $4.8 billion with $1.9 billion being spent onshore in the United States. In Alaska, Anadarko works only through other operators, so its activity will be melded with other North Slope producers. Caelus Energy LLC has no North Slope activity planned for the Smith Bay area after completion of two exploratory wells, Caelus-Tulimaniq #1 and a step out Caelus-Tulimaniq #2. The next step will be to drill another appraisal well in the winter of 2017/2018 and perform a mini-development with hydraulic fracturing and flow testing. The Nuna project, east of the Colville River, has a planned 22 acre pad and two wells;

it’s slowed, pending oil price recovery and more negotiations on mutually agreed terms. certainty about State of Alaska oil tax credits. BP is also supportive of the State of Alaska ExxonMobil continues to operate the Point in the Alaska LNG project. AGDC and BP Thomson Unit, producing nearly 8,000 barrels have signed a Cooperation Agreement that of gas condensate per day. This is a significant will bring together efforts and resources on: asrise from the initial production rate of 5,000 sessing a tolling model; preserving regulatory barrels per day achieved at startup in June of progress; and, identifying financing options for 2016. The current production facility limit is the path forward. Janet Weiss adds, “The gas at 10,000 barrels of gas condensate. As of Janu- Prudhoe Bay and Point Thomson represent for ary, 708,312 barrels had been produced from BP the largest resource opportunity to progress the new field. The field’s real energy potential in BP’s global portfolio. Exploring a new comis natural gas, estimated to be 25 percent of the mercial structure—a utility-type structure that known gas on the North Slope. Combined with could be further advantaged by State ownerExxonMobil’s 36.4 percent working interest in ship—is very worth-while as the Wood-MackPrudhoe Bay, ExxonMobil remains committed enzie study issued a few months ago suggested. to make natural gas reserves available to a vi- It will also open up exploration and developBusiness 12 the 3/27/17 1:05 PM able NorthAlaska Slope gas projectMonthly_BPJobs1_Half.pdf through bilateral ment for next forty-plus years.”

BP supports

16,200 Alaska jobs

CMY

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Prudhoe Bay

We believe that Alaskans know their state best, which is why 78% of the BP employees who work here live in Alaska. Learn more about what we’re doing to create and sustain good Alaska jobs for today and tomorrow at bp.com/Alaska

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OIL & GAS SPECIAL SECTION

ficiency are leveraging activities including well and facility maintenance and rate-adding wellwork that may be done in a less costly manner using non-rig equipment and development drilling. In 2016, BP completed 430 rate-enhancing well jobs; the previous year BP completed 465 rate-enhancing well jobs. To be fair regarding the Alaska Department of Labor statistics, the activity needs to be buffered as the Alaska oil industry also employees a huge number of nonresident workers. In 2015, more than 36.4 percent of the 18,000 workers did not qualify for a Permanent Fund Dividend. This number has been increasing steadily since 2009 and may be fueled by the fact that nonresidents in the industry earned 10 percent less than resident Alaska oilfield workers.

CT-1 & CT-2

State of Alaska, Department of Natural Resource

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Division of Oil & Gas Harrison Bay 3D and Nanuq South 3D tax credit seismic data out to 30-day public notice for release.

Armstrong Energy Applied to DNR for expansion of Pikka Unit to include additional lands that are part of proposed development. EIS progressing through US Army Corps of Engineers and other agencies.

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Caelus Energy Alaska Tulimaniq wells drilled in 2016 in Smith Bay state waters remain confidential but described by operator as discoveries in Brookian Torok Fm. Third well planned for 2018 to obtain first flow test(s).

a sk Ala

Teshekpuk Lake

ary

OIL & GAS SPECIAL SECTION

North Slope Oil a

Smith Bay

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ASRC Exploration Placer Unit term extended two years to 2018 by DNR.

ConocoPhillips Commissioned new extended reach drilling rig to develop Fiord West area in northwestern Colville River Unit from existing gravel pads.

Qugruk

Pikka QUGRUK 9

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QUGRUK 7 ! (

Bear Tooth ConocoPhillips Construction work underway at GMT-1. Gravel placement, bridge construction, and pipeline work planned for 2017. Production scheduled for 2018, peak output estimated at 18k BOPD. Drilled two wells on Tinmiaq prospect in 2016.

TINMIAQ 6

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TINMIAQ 2

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Greater Mooses Tooth

Colville River ! (

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QUGRUK 8

Pikka

FLAT TOP1

U.S. Bureau of Land Management Reviewing GMT-2 project scoping for Draft EIS.

ConocoPhillips Former Tofkat Unit leases assigned to ConocoPhillips after unit expiration; applying to include leases in expanded Colville River Unit, and plans to drill Putu 1 exploration well and sidetrack in Q1 2017.

Bureau of Land Management National Petroleum Reserve-Alaska public bid opening will be held December 14, 2016 at 1 PM.

UMIAT 23H

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Umiat

S. M

Kuparuk River

Armstrong Energy Planning to drill Horseshoe 1 exploration well on state leases ~15 mi south of Pikka Unit in Q1 2017.

Division of Oil and Gas Northern Alaska lease sales offering 5,075 tracts in North Slope, Beaufort Sea, and North Foothills Areawides are scheduled for December 2016. Public bid opening will be held December 14, 2016 at 9 AM.

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RENDEZVOUS 3

National Petroleum Reserve - Alaska

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Division of Oil & Gas Approved sale of state royalty ANS oil to Petro Star Inc. to supply up to 23.5k barrels per day starting January 1, 2017.

Alaska Business | May 2017 www.akbizmag.com

es, Division of Oil and Gas, as of December 2016 Eni Petroleum Planning to resume drilling at Nikaitchuq Q1 2017. Drilling would include one producer, two injectors, and four laterals.

Hilcorp Alaska Permitting new Moose Pad in northwestern Milne Point Unit to drill up to 44 wells into Kuparuk and Schrader Bluff Formations. Peak production estimated at10k-15k BOPD. Also expanding E Pad to allow for eight development wells.

Beaufort Sea Hilcorp Alaska Seeking to expand Kuparuk oil pool (Hooligan PA) in Northstar field to include Kuparuk A sands reservoir. Expecting to conduct two Kuparuk recompletions/workovers in 2016 and 2017. Currently conducting enhanced oil recovery project in Ivishak reservoir.

Nikaitchuq Northstar Milne Point

GRUK 5 & 5A

Prudhoe Bay

Kuparuk River

Miluveach

Deadhorse

Alaska

e Pipelin

Division of Oil & Gas Storms 3D tax credit seismic data released to public in November.

Point Thomson

Badami

SAExploration Acquired Aklaq 3D seismic onshore and in state waters of Foggy Island Bay-Mikkelsen Bay area, winter 2015-2016.

ALKAID 1

ConocoPhillips Development plan calls for 29 wells and sidetracks at Kuparuk River Participating Area during 2016. Deferring additional development drilling at West Sak and Tarn satellites.

Liberty

Prudhoe Bay

Trans

! (TUTTU 1

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Geokinetics/Great Bear Conducted 2016 Great Bear 3D seismic survey in areas east and west of Dalton Highway.

Hwy

AOGCC approved new Kuparuk River-Torok Oil Pool and Torok Area Injection Orders; allows for ConocoPhillips to continue 'Moraine' development evaluation program at Drill Site 3S.

n Dalto

cer

Hilcorp Alaska EIS process underway for Liberty development from artificial gravel island.

Duck Island

! ( ICEWINE 1 !

SAExploration Conducted Toolik Kuparuk 2D seismic survey west of Franklin Bluffs.

Accumulate Energy Alaska Planning to drill Icewine 2 well at Franklin Bluffs pad winter 2016-2017. Planning 11,200 ft vertical well to target HRZ shale.

Exploratory Wells Spud Wells Spud ! (

2016

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2015

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2014

Oil & Gas Unit Boundary

4.5

13.5

22.5 Miles

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Alaska Department of Transportation Applied to US Army Corps for upgrades to Dalton Highway including reconstructing and relocating sections and paving northernmost 50 miles. !

Map Location

The accuracy of this map is subject to pending decisions currently on appeal and other administrative actions. Please visit www.dog.dnr.alaska.gov/GIS/ActivityMaps.htm to see our most current maps.

! !

www.akbizmag.com !

PLACER 3

Dewline Beechey Point

ooguruk

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National Marine Fisheries Service Final EIS for oil and gas activity in Beaufort and Chukchi Seas limits exploratory drilling to one program per year in each sea.

MAP: State of Alaska Department of Natural Resources

May 2017 | Alaska Business

OIL & GAS SPECIAL SECTION

and Gas Activity

OIL & GAS SPECIAL SECTION

Wood-Mackenzie, an independent analytics business, in January of 2017 stated that the global upstream outlook for 2017 is good and this year will see an upturn in activity, reversing the last two years of decline.

Cook Inlet The Alaska Industrial Development and Export Authority (AIDEA) has been investing in Cook Inlet. Consistent with its mission to assist with economic development, AIDEA provided BlueCrest Energy with a loan of $26,007,155 for the development of the Cosmopolitan oil field in the southern portion of Cook Inlet. These funds complement the $200 million spent thus far by BlueCrest Energy and are only part of the estimated $525 million needed to reach the goal of 8,000 barrels of oil per day. The Cosmopolitan Unit is located along the shore north of Anchor Point in the Kenai Peninsula. The plan is to drill ten production wells with multi-zone completions and ten injection wells, all from the shore to the oil bearing formation located offshore. The injection wells are for a planned gas lift as the oil found contains very little of its own gas. Injecting gas into the well will cause the density of the liquid to be reduced to the point it may flow to the production facilities. BlueCrest Energy completed construction of a new extended-reach, high-horsepower drill rig and has begun drilling. The rig recently finished well H-16 adjacent to the Hansen Production Facility, north of Anchor Point. The Hansen Production Facility will employ ten full-time operators, and the mancamp is

capable of housing up to seventy-four people. The facility will be used to separate the oil from produced water and gas before shipping the oil to Tesoroâ&#x20AC;&#x2122;s refinery on the Kenai Peninsula. Because initial production will not support a pipeline, the produced oil will be trucked using Carlile Transportation, perhaps at a rate of twenty-five loads a day. The processed oil will be stored at the Hansen Production Facility in heated tankage while awaiting pickup. If continued drilling goes as planned, 180 people will be employed for another five to six years. BlueCrest Energy boasts that 90 percent of their employees are from the local area and there is increased vendor activity from Kenai to Nikiski. Glacier Oil and Gas also has been active in the Cook Inlet. Glacier Oil and Gas retained holdings of Miller Energy and operates the West McArthur, Redoubt, and North Folk Unit in Cook Inlet. The company completed a well workovers program at West McArthur and Redoubt Units and is planning for future small projects at the North Fork Unit. It still hopes to drill a new well from a jack up drilling rig, Spartan 151, as early as April. The well, named Sabre #1, is set to be drilled in forty feet of water to a depth of two miles. The target location is west of the Trading Bay Unit, which has produced 107 million barrels of oil and 79 MCF of gas, and north of the West McArthur Unit, which has produced a little under 15 million barrels of oil and a little under 4 MCF of gas. The Bruin Bay fault is a major structure in this area and has tended to be the limit for oil and gas fields in the Cook Inlet.

Hilcorp Alaska is active in the Cook Inlet, and completed an exploratory well named Greystone #1 which is nestled in the Kenai Peninsulaâ&#x20AC;&#x2122;s Deep Creek Unit and the Nikolaevsk Unit between the towns of Homer and Ninilchik. The well is on CIRI land and neither CIRI nor Hilcorp have released any information. Working in the Ninilchik Unit, which stretches from Clam Gulch to Ninilchik offshore, Hilcorp has plans to expand the Kalsota Pad, roads, and pipeline for the future installation of eight gas development wells. Produced fluids from the gas wells will be separated at the Kalsota Pad and shipped to the Susan Dionne Pad for injection back into the produced water system. The new pipelines are planned to be six inch diameter, flexible steel gas flowlines designed to be buried three feet in the ground with fiber optic communication, electrical, and instrumentation cables. Hilcorp Alaska has been the operator of the Beluga River gas field for a year since ConocoPhillips sold their one-third interest to Municipal Light and Power (ML&P) and Chugach Electric Association, which own 70 percent and 30 percent, respectively. The prolific gas field still produces 45,000 thousand cubic feet per day, and while majority owner ML&P reports that there is a development plan filed with the State of Alaska, there is no new activity for 2017. R Freelance writer Darryl Jordan lives in Anchorage.

Increasing safety and response time, while lowering costs for remote and offshore operations LEARN MORE: GIS | Inspections | Thermal FAA Certified, Insured 78

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OIL & GAS SPECIAL SECTION

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Nenana Basin, Doyon, Ltd Drilled Toghotthele 1 exploration well during summer 2016. Planning 2017 Nenana 2D and 3D seismic survey. Cook Inlet Region Inc. joined as co-investor in Nenana exploration.

Nancy Lake State Recreation Area Houston

Copper River Basin, Ahtna Spud Tolsona 1Big exploration well west Lake of Glennallen in late September.

Susitna

Knik

Cook Inlet Energy Terminated Otter Unit.

Susitna Flats State Game Refuge

Lewis River

Ormat Nevada P&A'd three Mt. Spurr geothermal wells summer 2016. Released leased acreage back to the state.

Pretty Creek ! (

OLSEN CREEK 2

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Ivan River

Beluga River

Stump Lake

North Cook Inlet

Moquawkie

Trading Bay State Game Refuge NordAq Energy Tiger Eye Unit terminated and leases surrendered to the State.

Kitchen Lights

North Granite Trading Bay Point KITCHEN LIGHTS 5

West Trading McArthur Bay River

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Swanson River ! (

Middle Ground Shoal

Redoubt Bay Critical Habitat Area Redoubt

Kenai

Cannery Loop

Sterling

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Cook Inlet

Kasilof

Kenai National Wildlife Refuge

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Tustumena Lake

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Ninilchik

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Hilcorp Alaska Applying to expand Falls Creek Participating Area in northern Ninilchik Unit. Constructing Kalotsa gravel pad, access road, and pipeline in vicinity of Susan Dionne in southern Ninilchik Unit. Expecting to drill four wells from pad starting in November 2016.

Ninilchik

Deep Creek ! ( GREYSTONE 1

Bureau of Ocean Energy Management Issued draft EIS in preparation for proposed Cook Inlet OCS Oil and Gas Lease Sale No. 244 for 2017. Proposed Cook Inlet Sale No. 258 for 2021.

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Nikolaevsk

Kenai National Moose Range Wells Spud ! (

2016 2015 No Activity

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2014

Existing Wells Approved for Gas Storage Field Oil & Gas Units

Cosmopolitan Anchor Point

Cooper Landing

Hilcorp Alaska Kasilof Unit terminated, leases extended until January 31, 2017.

Clam Gulch

MAP: State of Alaska Department of Natural Resources

South Middle Ground Shoal Unit renamed to Middle Ground Shoal Unit and expanded to include North and Middle Ground Shoal fields.

Soldotna

Kenai

Department of Natural Resources Portions of Cosmo 3D tax credit seismic survey acquired outside of unit out to 30-day public notice as eligible for release.

Hilcorp Alaska Processing Middle Ground Shoal 3D seismic data.

Salamatof

Apache Alaska Surrendered 84 of 87 Cook Inlet leases by opting not to pay rent.

Chugach National Forest

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Beaver Creek

Nikiski

BlueCrest Energy Planning to drill up to five wells at Cosmopolitan Unit in 2017.

Birch Hill

Furie Operating Alaska Hope KLU A-1 development well reached TD; completion planned for April or May 2017. Moved Randolf Yost jack-up rig to winter storage in late October. KLU A-2A well completed as gas producer in September.

Cook Inlet Oil and Gas Activity

Tyonek

Nicolai Creek

ConocoPhillips Entered into a Purchase and Sale Agreement with Hilcorp Alaska transferring ConocoPhillipsâ&#x20AC;&#x2122; interest in North Cook Inlet Unit leases, wells, facilities and equipment to Hilcorp. Also transferred other Cook Inlet leases to Hilcorp.

State of Alaska, Department of Natural Resources, Division of Oil and Gas, as of December 2016

Lone Creek

Anchorage

Nikolaevsk

North Fork

Homer Kachemak

15 Miles

! ( WEST EAGLE 1

Global Geophysical Services Conducted 2016 South Kenai 2D seismic survey; permit covered multiple areas throughout the southern Kenai Peninsula.

Map Location

The accuracy of this map is subject to pending decisions currently on appeal and other administrative actions. Please visit www.dog.dnr.alaska.gov/GIS/ActivityMaps.htm to see our most current maps.

May 2017 | Alaska Business

SPECIAL SECTION

Oil & Gas

Alaska Business | May 2017 www.akbizmag.com

OIL & GAS SPECIAL SECTION

Alaska’s Oil and Gas Subsidiaries: The Industry’s Backbone By Tom Anderson

he new year has brought challenges to all economic sectors in Alaska as the State Legislature, Governor Walker, and natural resource industry members negotiate the most sustainable financial approach for the state and its future. The oil and gas sector remains the largest and most comprehensive revenue-generating player on the employment spectrum. Part and parcel to the exploration, extraction, and production of oil and gas reserves in the North Slope, Cook Inlet, and in Middle Earth are the hundreds of industry subsidiaries keeping the petroleum flowing and preserving Alaskan’s jobs.

Picture of a Laborer applying a FBE (fusion bonded epoxy) coating to a Spool. © Judy Patrick Photography

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May 2017 | Alaska Business

OIL & GAS SPECIAL SECTION

If one were to label the companies—which range in size and region as well as task and training—an appropriate moniker in relation to the industry, it would be “backbone.”

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Udelhoven, a Household Name Alaska’s oil and gas industry permeates across all regions, cities, and communities of the state because of its profound impact on commerce and economies. As new companies form and enter the market, and the mainstream of providers have a five to ten year shelf life, a few iconic companies forge along with decades of steady, successful growth and delivery. One stalwart at the pinnacle of the field is Udelhoven Operating Companies, offering comprehensive oil and gas industry support services since 1970. The company launched from the Kenai Peninsula more than forty-seven years ago, offering general contracting and oil production support services through processional

“Long term investment in the oil and gas industry will be encouraged by a fair and stable tax policy. That means jobs and a sound economy, which will help all Alaskans.”

—Jim Udelhoven CEO, Udelhoven

managers and experts in construction trades. Led by its founder Jim Udelhoven, the company remains conscientious about local hire and strengthening community economies to spread the benefits from industry revenues. Udelhoven has three companies, with its Oilfield Service System Services as the primary hands-on subsidiary through which fabrication, construction, and maintenance are performed from Cook Inlet to Prudhoe Bay. Another subsidiary, Udelhoven, Inc., offers professional and technical services from Houston, Texas, offices covering oil and gas industry support of projects involving quality assurance and control, electrical and instrumentation support, start-up and precommissioning consultations, and overall project management. The company’s signature Alaska market remains in the Cook Inlet region and Prudhoe Bay. Jake Arness, project manager for Udelhoven’s Kenai Business Unit, recognizes the geographic and economic value generated by the company. “What’s important about our presence on the Kenai Peninsula remains local hire and giving back to the community. We’re as much community stewards as employers, ” he says. Arness walks the walk, serving on the Kenai Chamber of Commerce Board, as well as on the Challenger Learning Center and Kenai Construction Academy Boards, in an effort to encourage recruitment and local employment.

Alaska Business | May 2017 www.akbizmag.com

OIL & GAS SPECIAL SECTION

BLM Activity By Darryl Jordan

FROM HERE TO THERE? NO PROBLEM.

il & Gas activity can include non-oil company work, such as that being completed by the Bureau of Land Management (BLM). Senator Murkowski secured $50 million for BLM in a 2013 Act. Three legacy wells were plugged at Umiat, and site surface cleanup for wells in Cape Simpson used $10 million of the fund in 2015. In December 2015, the BLM awarded two contracts to Marsh Creek LLC and Olgoonik Construction Services with the intent of using the remaining $50 million for clean-up of eighteen of the forty-seven legacy wells still requiring cleanup. Five wells remain to be cleaned up in the winter of 2017. R Arness explains Udelhoven’s Cook Inlet staff contingent totals seventy-six employees, ranging from roustabouts to instrument technicians and welders to electricians. The company has a fabrication plant located between the Kenai and Nikiski communities, 100-feet-by-120-feet in size, with a large indoor crane that benefits their efforts. He adds that 2017 projects are stacking up. One project Udelhoven is tasked with this year is supporting Hillcorp Alaska’s Granite Point Platform in the Cook Inlet. Installed in 1966, with water ranging from sixty-two to seventy-seven feet deep, Arness oversees the rebuilding of a six-foot diameter crane pedestal on the platform. They started in late February and should be finished in midApril following the fabrication and welding. The Osprey Platform in Cook Inlet off the West Forelands, installed in 2000, is another work site upon which the Udelhoven team is being contracted for this year. Arness and Jim Udelhoven concur that the “bread and butter” of their business is yearround rotating work for clients like Hillcorp, BP, ConocoPhillips, Tesoro, and others. The company outsources electricians, welders, and technicians from their respective shops. Udelhoven adds that over the years his company has made a positive impact and been involved with hundreds of successful projects from the Kenai Peninsula to the North Slope, yet low oil prices and an apparent discouragement of petroleum industry investment by some State lawmakers has resulted in a staff of 800 filtering down to 300 in 2017. “Long term investment in the oil and gas industry will be encouraged by a fair and stable tax policy,” Udelhoven says. “That means jobs and a sound economy, which will help all Alaskans.” Udelhoven’s commercial tributaries range from domestic work with states like Alaska, Texas, Louisiana, and New Mexico to international business relations with China, Georgia, Australia, and Trinidad, to name a few. As a strong and growing subsidiary, as long as the state’s petroleum regulations and taxes don’t stifle progress, the best days may be yet to come for this prominent, community-centric service company.

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May 2017 | Alaska Business LE ABM Third Horiz2.indd 1

11/18/16 10:55 AM

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“It’s important that oil and gas service companies remain involved and active in their respective communities so there is a line of communication, support, and employment. It’s about getting the job done for our clients and giving back to our community. That’s what makes it all worthwhile.”

—Genevieve Schok Jr. NACE Level 2 Coating Inspector Quality Control Department Flowline Alaska

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Flowline Alaska: Corrosion’s Worst Enemy Genevieve Schok Jr. holds a NACE Level 2 coating inspector certification. She helps her company Flowline Alaska’s Quality Control Department and assists with management, human resources, and marketing. “It’s important that oil and gas service companies remain involved and active in their respective communities so there is a line of communication, support, and employment,” Schok notes. As the company’s community liaison, she represents the needs of her employees as a board member of the Alaska Support Industry Alliance, Greater Fairbanks Chamber of Commerce, and the Fairbanks Animal Shelter Fund. “It’s about getting the job done for our clients and giving back to our community. That’s what makes it all worthwhile.” Flowline is an Alaskan-owned and operated company that provides corrosion coatings, insulation, welding, and pipe fabrication services on the North Slope. The company performs all work at its Fairbanks facilities and then ships materials to the North Slope for installation by clients. Schok’s father started the firm in 1982 and is now retired, making her a second-generation service provider. The company’s full-time office staff totals twelve members, with a workforce made up of fiftysix Alaskan union craft employees. Schok adds that her union employment varies with workload, at times employing as many as one hundred full-time union employees from Local 302: Operating Engineers, Local 375: Pipefitters and Plumbers, and Local 942: Laborers. This year Flowline is working on Greater Moose’s Tooth for ConocoPhillips: straight run pipe coating, insulation, and cross country spool fabrication and also pipe racks. Additionally, they just completed DS14 pipeline work for BP over the 2016 winter and holidays. While the company predominately provides materials to the North Slope, with its rail capability and central location, Flowline has the ability to ship across the state. Schok adds that the current economy and its instability at the hands of lawmakers is

Alaska Business | May 2017 www.akbizmag.com

OIL & GAS SPECIAL SECTION

one facet of her job that can be unnerving. “One of the scariest parts of what we do is the fiscal instability of our State in regards to oil taxation,” she says. “Year after year our legislators look to the oil companies for more money to spend on state services, while those same companies have been funding 90 percent of state services historically.” She notes that when taxes get raised on the companies, their investment decisions have a direct impact on Flowline and the hiring of employees and vendors. One example she gives is under Alaska’s Clear and Equitable Share (ACES) her company went from approximately one hundred full-time equivalent employees to less than half. The legislation hurt employment in Fairbanks, and the trickle effect permeated across the market. The increased progressivity in taxation ultimately caused a sharp downturn in scheduled work. “After SB21 [Senate Bill 21] passed we witnessed significant new investments on numerous projects from all the producers on the North Slope, while some of the recent finds by COPA, Caelus, and Armstrong ushered Alaska into an entirely new production heyday.” Schok adds that industry investment matters, while raising taxes on the industry again will not support future growth. Rebecca Logan, general manager of the Alliance, concurs with Schok. “More than 3,500 employees of our members have lost jobs, companies have gone out of business, and now there isn’t much work; 2017 is projected to be worse than 2016,” she says. Logan says these are engineers, health and safety personnel, oilfield supply and equipment operators and repair technicians, surveyors, transporters, drillers, environmental consultants, and many more.

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CONAM Construction: Momentum in a Turbulent Economy Across the board, oil and gas service companies are feeling the same pain. The Udelhovens and Flowlines are not alone in their anxiety over fickle state fiscal policies and the lack of clarity in the preservation of reasonable tax structures for the petroleum industry. Another company that is forging ahead through the uncertainty while delivering for its clients, project by project, is CONAM Construction.

“Work is definitely thinning out. We handle a lot of negotiated work, and that work is now diminishing because of the current low oil prices and unstable tax regime in the state.”

—Bill Binford North Slope Area Manager CONAM

www.akbizmag.com

Ko d i a k P i e r I I I

E NGINEERS, I NC.

May 2017 | Alaska Business

OIL & GAS SPECIAL SECTION

WHEN YOU MAKE A PROMISE, KEEP IT In the fast-paced and highly demanding petroleum industry, it’s hard to predict the market, the economy, and regulatory demands. It’s important to have a partner who will show up for you at the right time, with the right knowledge and expertise to make your job easier. When we go to work for you, we bring our best experts, tools, and resources. When we make a commitment, we honor it, and when we make a promise, we keep it. © CONAM

Bill Binford, CONAM

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Bill Binford, the company’s North Slope area manager, says CONAM launched its operations in 1984 with substantive oil patch contracts that blossomed into fiber optic and communication installations, pipeline corrosion and repair work, specialized civil construction, and module installation and revamp work at major oil and gas facilities across the North Slope. The company has added pipeline construction and installation of on-shore facilities servicing projects throughout the Cook Inlet area. CONAM’S Mining Division provides mining construction services around the state. Tikigaq-CONAM LLC, in a joint venture with Tikigaq Corporation of Point Hope, focuses on utility and infrastructure projects in remote villages, management of the Barrow Gas Fields, pipeline maintenance, and installation of SCADA systems throughout the North Slope villages. In 2009, CONAM was purchased by Quanta Services, Inc., an S&P 500 company specializing in energy infrastructure projects, specifically in electrical services and oil and gas industry support. CONAM employs between 200 to 300 people, with its headquarters in Anchorage and branch offices and equipment shops in Nikiski and Deadhorse. In the last couple of years, the company completed the Furie Operating Alaska’s onshore gas processing facility for the Kitchen Lights platform in Cook Inlet. On the North Slope, CONAM also completed significant projects for BP and ConocoPhillips, winning Conoco’s prestigious Supplier Recognition Award for Excellence in Execution. CONAM highlights the fact it is safety driven, and Binford reminds that safety is not negotiable. The company has adopted strong project management principles along with hiring and retaining talented staff and experienced craftsmen from the construction trades. The crews include pipefitters, welders, electricians, laborers, operators, and insulators. The staff segment for CONAM includes

Alaska Business | May 2017 www.akbizmag.com

OIL & GAS SPECIAL SECTION

“The reality is that the Alaskan oil industry has to overcome a $15/barrel higher cost structure than the Lower 48 competition, due to costs from TAPS, tanker trips to Pacific NW ports, a 650-mile airplane ride to the work site, mancamps, and severe Arctic conditions.”

Built to deliver a better world AECOM is one of the largest and most respected providers of engineering and construction support services in the world. AECOM has served Alaska’s oil and gas industry since the discovery of oil on Alaska’s North Slope.

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—Bill Binford North Slope Area Manager, CONAM

project managers, project and field engineers, project controls, quality control inspectors, safety representatives, material coordinators, and office managers. Impacts from Alaska’s 2017’s economy and decreases in oil industry volumes vary somewhat depending on the client, adds Binford. “Work is definitely thinning out,” he says. “We handle a lot of negotiated work, and that work is now diminishing because of the current low oil prices and unstable tax regime in the state.” The good news is that CONAM continues to provide construction services for BP’s Global Projects Organization and ConocoPhillips Capital Projects Organization. CONAM also provides fire and gas system upgrades (system of fire alarm and suppression) for Hilcorp at its Milne Point Unit field. Binford notes that the Alaska Legislature’s SB21 afforded significantly more employment and project opportunities for the company and resulted in heightened oil and gas work in Cook Inlet and the North Slope. “The reality is that the Alaskan oil industry has to overcome a $15/barrel higher cost structure than the Lower 48 competition, due to costs from TAPS, tanker trips to Pacific NW ports, a 650mile airplane ride to the work site, mancamps, and severe Arctic conditions. We are thankful for the work we have, but fear that the minute the Legislature raises taxes on the petroleum industry and takes away tax credits in this low oil price climate, the producers will pull their CAPEX budgets and head south, and the entire state will feel the consequences, and TAPS throughput will decline once again. This is definitely a time for a reasonable and balanced approach to our state budget deficit.”

Ahtna Construction— Middle Earth and Beyond In the center of the oil and gas production map, between the Cook Inlet basin and the North Slope, lies Ahtna country. “Middle Earth,” as some refer to the geography in resource development parlance. Ahtna Corporation is one of the thirteen Alaska Native Regional Corporations and is based in Glennallen, Alaska. It is owned by more than 1,900 shareholders, a majority of whom are of Ahtna Athabascan descent and reside in the region for which the parent corporation serves. www.akbizmag.com

May 2017 | Alaska Business

OIL & GAS SPECIAL SECTION

“For our service contract for Alyeska and assisting with the TAPS upkeep, it all begins when Alyeska Risk and Integrity Management identifies anomalies that have been determined through data received during ILI [In-Line Inspection] pig runs. A pig is a device inserted into the pipe, gathering information by traveling throughout the length of a pipeline driven by a product flow to measure structural stability. If any problem is located, our crews excavate the anomaly and expose the mainline. We support various contractors that assess the condition of the pipe and perform mechanical repairs. Once repairs are made, we repair the coating and backfill the excavation.”

—Roy Tansy Jr. Executive Vice-President, Ahtna Netiye’

The Ahtna subsidiary that most prevalently works as a service provider in the oil and gas industry is Ahtna Construction & Primary Products Corporation (AC&PPC), the corporation’s first subsidiary formed in 1974. AC&PPC specializes in civil construction, pipeline maintenance, emergency preparedness, and oil spill response, with offices and shops in Anchorage, Fairbanks, and Glennallen. Ahtna Netiye’ Executive Vice-President Roy Tansy Jr. notes that AC&PPC prides itself in providing jobs to Ahtna shareholders and bring profits back to Ahtna, Inc. by working on the pipeline. He says TAPS currently goes through fifty-five miles of Ahtna lands in the Copper River Basin, where the company performs construction and maintenance. AC&PPC is consistently recognized as having the highest Alaskan Native employment percentages out of all of Alyeska Pipeline Service Company vendors. The parent company employs 1,650 people in all subsidiaries combined, while AC&PPC currently has a staff of 160 during peak construction season. “For our service contract for Alyeska and assisting with the TAPS upkeep, it all begins when Alyeska Risk and Integrity Management identifies anomalies that have been 88

Alaska Business | May 2017 www.akbizmag.com

From Sea to Shining Sea—and Everything in Between Alaska’s oil and gas industry is here to stay, but not without the ebb and flow of policy shifts affecting finances and operations. The clear pattern and practice of the top tier service providers like Udelhoven, Flowline, CONAM, and Ahtna Construction is maintaining safety and delivering a quality product. This is happening from Cook Inlet to Middle Earth to the North Slope. Whether safety and delivery are measured in fabrication superiority, repair and maintenance acumen, welding and technical design skills, or just plain elbow grease and determination, Alaska remains in good hands. Behind every oil and gas producer is a cadre of service providers keeping production on task and promptly to market. They are the backbone of natural development and core to the industry. R

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Tom Anderson writes from across Alaska. www.akbizmag.com

401 E. Van Horn Rd., Fairbanks, AK May 2017 | Alaska Business

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determined through data received during ILI [In-Line Inspection] pig runs. A pig is a device inserted into the pipe, gathering information by traveling throughout the length of a pipeline driven by a product flow to measure structural stability. If any problem is located, our crews excavate the anomaly and expose the mainline. We support various contractors that assess the condition of the pipe and perform mechanical repairs. Once repairs are made, we repair the coating and backfill the excavation,” says Tansy. Ahtna Construction performs work outside of the mainline integrity investigations, working multiple line-wide programs for Alyeska: rivers and flood plains, cathodic protection, mineral mining, pipeline integrity testing, and baseline support activities. Ahtna Construction’s Baseline group provides right-of-way maintenance from the Glennallen Response Base, and is responsible for oil spill response between Hogans Hill and the gates at the Valdez Marine Terminal. Tansy adds that winter projects typically start in February and go through the springtime. The company, like most construction businesses, remains busiest during the summer and through fall. AC&PPC’s service area extends from Pump Station 1 to the Valdez Marine Terminal. This year AC&PPC continues its awarded Alyeska projects, which include mainline integrity investigations, rivers and flood plain mitigation support, cathodic protection, PIT program excavations, and support of the Alyeska Mineral Mining Project. Tansy admits the state’s economic horizon is somewhat fragile, with oil and gas business members concerned they will lose colleagues in the industry to production opportunities in other states and foreign countries. He and his Ahtna management team continue to focus on what they can control, like high safety standards, renewed contracts based on stellar services rendered, and a 40 percent Alaska Native hire rate.

OIL & GAS SPECIAL SECTION

Alaska Business

2017 Oil & Gas Directory

Alaska Business | May 2017 www.akbizmag.com

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

EXPLORATION & PRODUCTION COMPANY TOP EXECUTIVE

BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99515-6612 Phone: 907-561-5111 Fax: 907-564-4124 ConocoPhillips Alaska, Inc. 700 G St., PO Box 100360 Anchorage, AK 99510 Phone: 907-276-1215 Fax: 907-265-1502 Doyon Drilling, Inc. 11500 C St., Suite 200 Anchorage, AK 99515 Phone: 907-563-5530 Fax: 907-561-8986 ExxonMobil PO Box 196601 Anchorage, AK 99519 Phone: 907-561-5331 Fax: 907-564-3719 Furie Operating Alaska LLC 188 W. Northern Lights Blvd., Suite 620 Anchorage, AK 99503 Phone: 907-277-3726 Fax: 907-277-3796 Tesoro Alaska Co. 1601 Tidewater Rd. Anchorage, AK 99501 Phone: 907-261-7221 Fax: 866-421-8306 Tolsona Oil & Gas Exploration, LLC 110 W. 38th Ave., Suite 200A Anchorage, AK 99503 Phone: 907-433-0708 Fax: 907-272-6356

YEAR FOUNDED / ESTABLISHED IN ALASKA

@BP_Alaska alaska.bp.com Joe Marushack, Pres. twitter.com/COP_Alaska conocophillipsalaska.com Ron Wilson, Pres./GM info@doyondrilling.com doyondrilling.com Cory Quarles, AK Production Mgr. exxonmobil.com Bruce Webb, Sr. VP

1952 13,300 An independent exploration and production company. We are Alaska’s largest oil producer 1952 1,100 and have been a leader in oil and gas exploration and development in the state for more than 50 years. www.conocophillipsalaska.com; https://twitter.com/COP_Alaska; https:// www.facebook.com/conocophillips. 1982 262 Doyon Drilling operates on the North Slope of Alaska with rigs designed to drill in northern 1982 262 Alaska conditions. The company consistently strives to improve its operations and has some of the most technologically advanced land drilling rigs in the world. 1870 71,100 ExxonMobil is the largest holder of discovered gas resources on the North Slope and the 1954 259 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 11 Gas & Oil exploration company. 2011 7

FurieAlaska.com Cameron Hunt, VP

1969 1969

600 235

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

2015 2015

60 60

Ahtna is currently pursuing natural resource development in the Copper River Basin. Tolsona Oil & Gas Exploration, LLC is the owner-operator of a new gas drilling program on state land about 11 miles west of Ahtna’s Glennallen, Alaska Corporate Headquarters.

tsocorp.com Tom Maloney, CEO, Ahtna, Netiye’ dlee@ahtna.net ahtna-inc.com/tolsona

COMPANY TOP EXECUTIVE

BUSINESS DESCRIPTION

1959 79,800 BP operates the Greater Prudhoe Bay area, which consists of the Prudhoe Bay field and a 1959 1,700 number of smaller fields. This area produces 55 percent of Alaska’s oil and gas production. BP also owns interests in seven other North Slope oil fields and pipelines, including TAPS.

Janet Weiss, BP AK Pres.

SERVICES & SUPPORT 3M Alaska 11151 Calaska Cir. Anchorage, AK 99515 Phone: 907-522-5200 Fax: 907-522-1645 Acuren 600 E. 57th Pl., Suite B Anchorage, AK 99518 Phone: 907-569-5000 Fax: 907-569-5005 Advanced Supply Chain International LLC 3201 C St., Suite 308 Anchorage, AK 99503 Phone: 907-345-2724 Fax: 907-345-8621 AECOM 700 G St., Suite 500 Anchorage, AK 99501 Phone: 907-562-3366 Fax: 907-562-1297 aeSolutions 3800 Centerpoint Dr., Suite 620 Anchorage, AK 99503 Phone: 907-865-5992 Fax: 907-865-5993 AFF Distribution Services 5491 Electron Dr. #8 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7094 Afognak Leasing LLC 3909 Arctic Blvd., Suite 500 Anchorage, AK 99503 Phone: 907-222-9500 Fax: 907-222-9502 Air Liquide America L.P. 6415 Arctic Blvd. Anchorage, AK 99518 Phone: 907-562-2080 Fax: 907-564-9752 Alaska Airlines 4750 Old Int’l Airport Rd. Anchorage, AK 99502 Phone: 907-266-7200 Fax: 907-266-7229 Alaska Chadux Corporation 2347 Azurite Ct. Anchorage, AK 99507 Phone: 907-348-2365 Fax: 907-348-2330 Alaska Clean Seas 3300 C St., Suite 200 Anchorage, AK 99503 Phone: 907-743-8989 Fax: 907-743-8988 Alaska Commercial Development Group 3324 Koba Way Fairbanks, AK 99709 Phone: 907-457-1861 Fax: 907-457-2781

WORLDWIDE / ALASKA EMPLOYEES

YEAR FOUNDED / ESTABLISHED IN ALASKA

Stephanie Mathers, Reg. Mgr. innovation.3malaska@mmm.com 3M.com Frank Noble, Reg. Mgr. AK tdaugherty@acuren.com acuren.com Scott Hawkins, Pres./CEO Luisa.Vallejo@ascillc.com ascillc.com Laura Young, AK Ops Mgr. aecom.com Chris Hickling, AK Bus. Dev. Mgr. chris.hickling@aesolns.com aesolns.com Jared Lastufka, Ops Mgr.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1902 88,000 3M manufactures a wide range of products covering many markets in Alaska. In the area of 1971 12 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 10,000 Materials engineering, nondestructive examination and integrity management for the oil 2002 13 and gas, power, mining, transportation and construction industries.

1999 1999

200+ Supply chain management specializing in asset intensive resource industries. 200

1904 92,000 AECOM Alaska is a team of engineers, scientists, planners & support staff providing arctic1948 70 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 150 aeSolutions is a complete system integrator specializing in safety instrumented systems, 2008 24 automation, process safety consulting, industrial cybersecurity, alarm management, and operations & maintenance solutions; supporting all phases of the Process Safety Lifecycle. 1988 1988

500 120

Third-party warehousing & distribution company; short- & long-term storage; order processing, deliveries, & inventory reports; cold storage, chill to freeze; pick & pack individual youtube.com/americanfastfreight orders; through bill of lading & single invoice; bypass mail service. A division of American americanfast.com Fast Freight, Inc. Matt Thorpe, Sr. VP Ops 2004 21 Lease and sell temporary or permanent remote camp facilities, portable offices, and 2004 21 equipment. Build to suit new camp construction. Provide camp relocation, camp operamthorpe@alutiiq.com tions and camp management services. Provide hotel-style temporary and permanent afognakleasing.com housing in Deadhorse, Alaska. Brian Benson, Area VP 1902 68,000 Providing packaged and bulk gas, scientific and calibration gases, welding tools, filler 1955 74 metals, hardgoods and machines to oilfield and pipeline constructors. Full line of rental us.airliquide.com/en/contact-us.html welders and plasma equipment and repair (warranty and other) for all major welding us.airliquide.com/en/welcome.html equipment and tool manufacturers. Brad Tilden, Chairman/CEO AK Air Group 1932 19,100 Alaska Airlines, Virgin America, and regional carrier Horizon Air, provide passenger and 1932 1,800 cargo service to more than 100 destinations in Alaska, Canada, Mexico, Hawaii, and the Lower 48. alaskaair.com Matthew Melton, GM 1993 14 Alaska Chadux Corporation (Chadux) is a member-funded, 501(c)(4) nonprofit oil spill 1993 14 response organization headquartered in Anchorage, AK. Chadux is classified as an OSRO info@chadux.com by the USCG and registered as a PRAC, and an NTVCC with the State of Alaska. We provide chadux.com resources to cleanup oil spills. Barkley Lloyd, GM 1979 84 We protect the environment by providing response services to the Alaska North Slope 1979 84 crude oil explorers and producers and the first 167 miles of the Trans Alaska Pipeline acsgmpres@alaskacleanseas.org System in accordance with oil spill response agreements and plans. alaskacleanseas.org Matthew Greer, Pres. 1997 5 General contractor located in Fairbanks, Alaska who design/builds from the ground up 1997 5 wood/metal framed industrial buildings. Has space for lease for oil/gas semi-truckers looking for affordable/secure/clean warehouse.

Alaska Business | May 2017 www.akbizmag.com

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OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

Alaska Directional LLC 200 E. Commercial Cir. Palmer, AK 99645 Phone: 907-357-9015 Fax: 907-357-9027 Alaska Dreams, Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713 Alaska Frontier Constructors Inc. PO Box 224889 Anchorage, AK 99522 Phone: 907-562-5303 Fax: 907-562-5309 Alaska Marine Lines 100 Mt. Roberts St. Juneau, AK 99801 Phone: 907-586-3790 Fax: 907-463-3298 Alaska Oil & Gas Association 121 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-272-1481 Fax: 907-279-8114 Alaska Rubber & Rigging Supply 5811 Old Seward Hwy. Anchorage, AK 99518-1479 Phone: 907-562-2200 Fax: 907-561-7600 Alaska Textiles 620 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-265-4880 Fax: 907-265-4850 Alaska West Express 1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-339-5100 Fax: 907-339-5117 All American Oilfield LLC 14896 Kenai Spur Hwy., Suite 203 Kenai, AK 99611 Phone: 907-283-1048 Fax: 907-283-1051 Allied GIS, Inc. 8600 Spendlove Dr. Anchorage, AK 99516 Phone: 907-333-2750 Fax: 907-333-2751 Alutiiq General Contractors LLC 3909 Arctic Blvd., Suite 500 Anchorage, AK 99503 Phone: 907-222-9500 Fax: 907-222-9519 Alutiiq Oilfield Solutions LLC 3909 Arctic Blvd., Suite 500 Anchorage, AK 99503 Phone: 907-222-9500 Fax: 907-222-9502 Alyeska Pipeline Service Company PO Box 196660, MS 542 Anchorage, AK 99519-6660 Phone: 907-787-8700 Fax: 907-787-8240 American Fast Freight, Inc. 7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5100 American Fast Freight, Inc. 47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 Fax: 907-262-1925 American Fast Freight, Inc. 5025 Van Buren St. Anchorage, AK 99517 Phone: 907-248-5548 Fax: 907-243-7353 American Fast Freight, Inc. 3501 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-452-7129 Fax: 907-451-7103 American Marine International 6000 A St. Anchorage, AK 99518 Phone: 907-562-5420 Fax: 907-562-5426 American Relocation Services 47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 American Relocation Services 5491 Electron Dr., Unit 1 Anchorage, AK 99518 Phone: 907-248-2929 Fax: 907-561-4244

YEAR FOUNDED / ESTABLISHED IN ALASKA

Billy Long, Pres./CEO akdirectional@alaskadirectional.com alaskadirectional.com Meini Huser, Pres. sales@alaskadreamsinc.com alaskadreamsinc.com John Ellsworth, Pres. info@akfrontier.com akfrontier.com Kevin Anderson, Pres. amlcsc@lynden.com lynden.com/aml Kara Moriarty, Pres./CEO info@aoga.org aoga.org Janeece Higgins, CEO info@alaskarubber.com alaskarubber.com Clif Burnette, Pres. info@alaskatextiles.com alaskatextiles.com; korbana.com Scott Hicks, Pres. information@lynden.com lynden.com/awe Pete Dickinson, Pres. info@allamericanoilfield.com allamericanoilfield.com Gail Morrison, Pres./Sr. GIS Analyst gmorrison@alliedgis.com alliedgis.com Jake Garner, Dir. Ops GM-ACV AGC jgarner@alutiiq.com alutiiq.com Matt Thorpe, Sr. VP Ops mthorpe@alutiiq.com alutiiq.com Thomas Barrett, Pres. facebook.com/alyeskapipeline alyeska-pipe.com Kevin Kelly, Pres./CEO youtube.com/americanfastfreight americanfast.com Ron Moore, AK Sales Mgr. youtube.com/americanfastfreight americanfast.com Ron Moore, AK Sales Mgr. alaska@americanfast.com americanfast.com Ron Moore, AK Sales Mgr. youtube.com/americanfastfreight americanfast.com Tom Ulrich, VP/AK Reg. Mgr. alaska@amarinecorp.com amarinecorp.com Damian Naquin, GM youtube.com/americanfastfreight americanrelocationservices.com Damian Naquin, GM youtube.com/americanfastfreight americanrelocationservices.com

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

2012 2012

22 22

Horizontal directional drilling, trenching, utility installation.

1994 1994

30 30

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

2005 2005

300+ Heavy Civil Construction. 300+

1980 1980

352 118

1966 1966

4 4

1981 1981

121 62

1978 1978

30 30

1978 1978

186 175

2010 2010

96 96

2002 2002

3 3

2009 2009

121 121

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. Construction services and products include design-build, bid-build, pre-manufactured modular buildings, pre-engineered metal buildings, and waste-water/envirovac modules.

2001 2001

17 17

We provide industrial coatings and well floor kits for the oil and gas industry as well as tundra and portable road/rig matting.

1970 1970

800 800

1984 1984

500 120

1984 1984

500 120

1984 1984

500 120

1984 1984

500 120

1973 1973

275 54

1988 1988

500 120

1988 1988

500 120

Alaska Marine Lines is a marine transportation company providing barge service to and from Alaska and Hawaii. We offer twice weekly service to Southeast Alaska and Central Alaska, seasonal service to Western Alaska, and bi-weekly service to Hawaii. Charter services are also available. Alaska oil and gas industry trade association.

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. We are the number one supplier of FRC Apparel, to include our very own Korbana Protective Apparel, in Alaska and North Dakota, and around the world. With a highly trained sales staff we make customer service and quality control our priorities. Alaska West Express provides oversized and bulk truckload transportation throughout the United States and Canada, specializing in shipments to and from Alaska, where we are the leader in transporting liquid- and dry-bulk products, hazardous and non-hazardous chemicals and petroleum products. On-shore and off-shore services include drilling, maintenance and support, workover, coil tubing, grind and inject, and well testing crews. Professional services include oilfield engineering, consulting and management services. Owner/operator of workover Rig 111.

Alyeska Pipeline Service Company has operated the Trans Alaska Pipeline System since 1977, and has delivered more than 17 billion barrels of oil. Focused on safe and flawless operations and sustainability, employees are working to manage today’s operational challenges and celebrate TAPS’ 40th year. Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads & single shipments, temperature protected, dry vansl, specialized equipment, heavy haul, project logistics, barge, steamship, intra-state trucking, warehousing, distribution, military shipments, etc. Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads & single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, barge, steamship, intra-state trucking, warehousing, distribution, military shipments, etc. Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads & single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, barge, steamship, intra-state trucking, warehousing, distribution, household goods, military shipments & more! Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads & single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, barge, steamship, intra-state trucking, warehousing, distribution, military shipments, etc. 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. 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. Commercial/residential relocation, moving & storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, certified moving consultants, budget service available. Also locations in Fairbanks, Soldotna & Kodiak.

Alaska Business | May 2017 www.akbizmag.com

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

American Relocation Services 3411 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-456-3097 Fax: 907-456-3098 APICC 2600 Cordova St., Suite 105 Anchorage, AK 99503 Phone: 907-770-5250 Fax: 907-770-5251 Arcadis 880 H St., Suite 101 Anchorage, AK 99501 Phone: 907-276-8095 Fax: 907-276-8609 Arctic Catering & Support Services 3230 C St., Suite 200 Anchorage, AK 99503 Phone: 907-562-5588 Fax: 907-562-5898 Arctic Foundations, Inc. 5621 Arctic Blvd. Anchorage, AK 99518 Phone: 907-562-2741 Fax: 907-562-0153 ARCTOS LLC 130 W. Int’l Airport Rd., Suite R Anchorage, AK 99518 Phone: 907-440-4093 Fax: 866-532-3915 ASRC Energy Services LLC 3900 C St., Suite 701 Anchorage, AK 99503 Phone: 907-339-6200 Fax: 907-339-6219 ATCO Structures & Logistics Ltd. 425 G St. Anchorage, AK 99501 Phone: 907-677-6983 Fax: 907-677-6984 Bowhead Transport Company LLC 4025 Delridge Way SW, Suite 160 Seattle, WA 98106 Phone: 800-347-0049 Fax: 206-957-5261 Brice Environmental Services Corp. PO Box 73520 Fairbanks, AK 99707 Phone: 907-456-1955 Fax: 907-452-1067 Bristol Bay Industrial 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503-7146 Phone: 907-231-9929 Bristol Engineering Services Corporation 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 800-563-0013 Fax: 907-563-6713 Brooks Range Supply, Inc. Pouch 340008 Prudhoe Bay, AK 99734 Phone: 907-659-2550 Fax: 907-659-2650 C2 North LLC 4141 B St., Suite 201 Anchorage, AK 99503 Phone: 907-569-9122 Fax: 603-388-0793 Carlile 1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301 CCI Industrial Services LLC 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503 Phone: 907-258-5755 Fax: 907-770-9452 CH2M 949 E. 36th Ave., Suite 500 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-762-1600 Chugach Alaska Services LLC 3800 Centerpoint Dr., Suite 1200 Anchorage, AK 99502 Phone: 907-261-0474 Chugach Professional Oilfield Services 3800 Centerpoint Dr., Suite 1200 Anchorage, AK 99503 Phone: 907-261-0427 Coffman Engineers 800 F St. Anchorage, AK 99501 Phone: 907-276-6664 Fax: 907-276-5042

YEAR FOUNDED / ESTABLISHED IN ALASKA

Damian Naquin, GM youtube.com/americanfastfreight americanrelocationservices.com Cari-Ann Carty, Exec. Dir. info@apicc.org apicc.org Tony Salazar, AK Ops Leader cynthia.oistad@arcadis.com arcadis.com David Gonzales, CEO info@arcticcatering.com arcticcatering.com Edward Yarmak, Pres. info@arcticfoundations.com arcticfoundations.com Randy Pysher, Pres./Bus. Mgr. info@arctosak.com arctosak.com Doug Smith, Pres./CEO info@asrcenergy.com asrcenergy.com Steve Lockwood, Pres. atco@atcosl.com atcosl.com Luther Bartholomew, GM info@bowhead.com BowheadTransport.com Craig Jones, Pres. craigj@briceenvironmental.com briceenvironmental.com Mark D. Nelson, Pres./CEO solutions@bbindustrial.com bbindustrial.com Travis Woods, Pres./CEO

WORLDWIDE / ALASKA EMPLOYEES

1988 1988

500 120

1999 1999

6 6

1888 27,000 Arcadis is Alaska’s leading provider of construction and program management services 1994 22 and a leading global design, project management and consultancy firm.

1973 1973

350 300

Remote Camp Services: Camp Management, Catering, Housekeeping, Janitorial, Maintenance, Security, HSE Systems, Incinerator & generator management, Procurement, and Expediting.

1972 1972

15 15

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

2007 2007

5 5

2015 2015

45 45

1994 1994

50 25

1982 1982

60 60

2001 2001

5 3

1980 1980

484 320

1989 1989

305 285

2015 2015

4 4

1979 1979

387 103

Full service Environmental Regulatory Compliance Contractor, project permitting, field compliance services, permit and compliance management, Oil Spill, SPCC, FRP Plans, plan audits, full range spill prevention & response planning services, response management & support. Heath and Safety management. 1985 2,762 A “one-stop shop” for quality consulting and contracting services to the energy, natural 1985 2,513 resources, infrastructure, industrial, and power industries. AES offers a broad range of in-house vertical integration services, self-performance capabilities, and a cross-trained craft labor pool. 1947 1,000 ATCO Structures & Logistics offers complete infrastructure solutions to customers 2009 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. 1982 34 Bowhead transports cargo between Seattle, Western Alaska, Arctic Waters and the North 1982 27 Slope with ocean, coastal, ocean going Tug & Barge, shallow draft vessels for remote operations. Bowhead provides terminal services, vessel and crew support, vessel chartering, and marine and cargo logistics. 1991 39 Brice is an ANC 8(a) and proud Calista subsidiary with a long history of performing envi1991 28 ronmental remediation/consulting, design-build, engineering, and construction in Alaska, nationwide, and the Pacific.

bristol-companies.com Eric Helzer, Pres./CEO manager@brooksrangesupply.com brooksrangesupply.com Melanie Roller, Owner/Principal mroller@c2north.com c2north.com Terry Howard, Pres.

BUSINESS DESCRIPTION

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. APICC works with industry and educational and training institutions to prepare Alaskans to work in living wage jobs in Alaska, and to ensure an available, well-trained Alaskan workforce.

Working alongside our clients to develop long-term, sustainable results, Bristol Bay Industrial is Alaska’s innovative industrial services integrator. We create customized Client Solutions in support of the entire project life cycle by leveraging our member companies and strategic partners. Civil engineering, permitting and planning; total project management encompassing planning, design and construction. facebook.com/BristolAllianceOfCompaniesfacebook. com/BristolAllianceOfCompanies. 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. Small business certifications with an emphasis on Alaska Native corporations. Project management, technical writing and business solutions for the oil and gas industry.

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

carlile.biz A. Ben Schoffmann, Pres./CEO info@cciindustrial.com cciindustrial.com Terry Bailey, Sr. VP/AK Reg. Mgr. Terry.Bailey@ch2m.com ch2m.com/alaska Ryan Kegley, GM CASinfo@chugach.com chugach.com Gerald Atol, GM gerald.atol@chugach.com chugach.com Tom Looney, Mng. Principal anchorageinfo@coffman.com coffman.com

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 19,663 Premier Alaskan oil & gas contractor with planning, engineering, procurement, logistics, 1962 1,625 sealift/truckable modules fabrication, piping, construction, program & construction management, operations & maintenance, supporting oil, gas, LNG, transportation, environmental, water, mining & government. 2008 158 Chugach Alaska Services provides tailored, cost-efficient staffing solutions to Alaska’s oil 2008 158 and gas industry.

Chugach Professional Oilfield Services provides professional oilfield engineering, consulting and management services to operators across Alaska.

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

Alaska Business | May 2017 www.akbizmag.com

owland-Bach has just completed installation of a custom-built hydraulic press brake for stainless steel fabrication in their 20,000-square-foot Anchorage shop. For a company that has grown for more than 40 years by seizing market opportunities through innovation, quality craftsmanship, and excellent customer service, having the ability to make a huge leap forward in one of its early core capabilities is justifiably a source of great pride. The new computer-controlled, 230-toncapacity machine can shape stainless steel with improved accuracy, reduced setup time, and repeatable results. Dowland-Bach’s experienced designers, welders, and fabricators develop products from concept to finish, providing custom stainless steel parts and products to meet the needs of industry, architects, and artists. “We have invested in automated modern equipment to improve our fabrication capabilities and better serve Alaska,” says Reed Christensen, President and General Manager. Dowland-Bach was launched in 1975 to manufacture fail-safe wellhead shutdown systems for the Prudhoe Bay oilfield in Alaska. Company founders designed, manufactured, and installed control panels that have operated in the arctic for more than 40 years. Today, the business is an industry leader in control systems, process modules, and engineered automation systems, as well as stainless steel fabrication. Acquired by Koniag, Inc., in 2008, Dowland-Bach is now

a subsidiary of the Alaska Native Regional Corporation. To meet the needs of the Alaska market for corrosion-resistant stainless steel, Dowland-Bach stocks and distributes pipe, tubing, flanges, sheet, and an extensive list of butt weld, socket weld, and threaded fittings. More than $1 million in inventory is maintained. Dowland-Bach provides control panels for the oil and gas industry, water, wastewater, power utilities, and other industrial applications. The automation technology integrates hydraulic, pneumatic, and electric systems with programmable logic controllers (PLCs) to perform functions that include operating HVAC systems, controlling pumps, and regulating chemical injection. Another type of specialty panel provided are termination boxes for industrial applications. Dowland-Bach builds non-incendive termination boxes to safely contain electrical terminations conducting up to 600 volts in potentially explosive atmospheres. Early panels were operated by hydraulic pressure and simple mechanical instrumentation; new panels are designed and built with electronics to control the hydraulic power. Alaska requires that electrical equipment be listed by Nationally Recognized Testing Laboratories (NRTLs) such as UL, Intertek/ETL, and FM to ensure safety and compliance to OSHA codes and standards. Dowland-Bach conducts extensive testing of products and accommodates unannounced –

PAID

A DV ERTISEM ENT

–

site visits by NRTLs to qualify for and apply certified listings to its control panels. Dowland-Bach custom engraves each tag that is attached to a component to verify the applicable listing. A complementary area of growth for Dowland-Bach has been expansion into automated systems for control and monitoring. Leveraging modern networking and IT infrastructure technologies, complete automation systems are designed, installed, and supported. These state-of-the-art solutions incorporate the advantages of remote operation for instrumentation and controls for pressure, temperature, and other conditions; acquisition and retention of process data that support regulatory reporting; and convenient access to real-time system information from cell phones and laptops. Automated systems provide improved product quality, reduced material and labor costs, optimized maintenance, and safe performance for a wide variety of industrial operations. To learn more about the products and services provided by a company whose cando spirit delivers creative solutions and that offers off-the-shelf convenience, visit the Dowland-Bach website at www.dowlandbach.com. For an even better understanding of company capabilities, call (907) 562-5818 to schedule a shop tour. 6130 Tuttle Place, Anchorage, AK 99507 (907) 562-5818 dowlandbach.com

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

Colville, Inc. Pouch 340012 Prudhoe Bay, AK 99734 Phone: 907-659-3198 Fax: 907-659-3190 CONAM Construction Co. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-6600 Fax: 907-278-4401 Construction Machinery Industrial, LLC 5400 Homer Dr. Anchorage, AK 99518 Phone: 907-563-3822 Fax: 907-563-1381 Cook Inlet Spill Prevention & Response 51377 Kenai Spur Hwy. Kenai, AK 99611 Phone: 907-776-5129 Fax: 907-776-2190 Craig Taylor Equipment 733 Whitney Rd. Anchorage, AK 99501 Phone: 907-276-5050 Crowley Marine Solutions, Inc. 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550 Cruz Companies Alaska 7000 E. Palmer Wasilla Hwy. Palmer, AK 99645 Phone: 907-746-3144 Fax: 907-746-5557 DAT/EM Systems International 2014 Merrill Field Dr. Anchorage, AK 99501 Phone: 907-522-3681 Fax: 907-522-3688 Deadhorse Aviation Center PO Box 34006 Prudhoe Bay, AK 99734 Phone: 907-685-1700 Fax: 907-685-1798 Delta Constructors LLC 3000 C St., Suite 202 Anchorage, AK 99503 Phone: 907-771-5800 Fax: 907-771-5911 Delta Leasing LLC 8101 Dimond Hook Dr. Anchorage, AK 99507 Phone: 907-771-1300 Fax: 907-771-1380 Denali Drilling, Inc. 8240 Petersburg St. Anchorage, AK 99507 Phone: 907-562-2312 Fax: 907-562-5971 Denali Universal Services LLC 11500 C St., Suite 100 Anchorage, AK 99515 Phone: 907-522-1300 Fax: 907-522-3531 Doyon Anvil 509 W. Third Ave. Anchorage, AK 99501 Phone: 907-677-3021 Fax: 907-279-4088 Doyon Associated LLC 615 Bidwell Ave., Suite 100 Fairbanks, AK 99701 Phone: 907-374-9130 Doyon, Limited 1 Doyon Pl., Suite 300 Fairbanks, AK 99701-2941 Phone: 907-459-2000 Fax: 907-459-2060 DXP| Alaska Pump & Supply 261 E. 56th Ave., Bldg A Anchorage, AK 99518 Phone: 907-563-3424 Fax: 907-562-5449 Edison Chouest Offshore 301 Calista Ct. Anchorage, AK 99518 Phone: 907-562-2111 Equipment Source, Inc. 1919 Van Horn Rd. Fairbanks, AK 99701 Phone: 888-868-9049 Fax: 907-458-7180 ESS Support Services Worldwide 201 Post Rd. Anchorage, AK 99501 Phone: 907-865-9818 Fax: 907-865-9866

YEAR FOUNDED / ESTABLISHED IN ALASKA

Eric Helzer, Pres./CEO info@colvilleinc.com colvilleinc.com Dale Kissee, Pres.

WORLDWIDE / ALASKA EMPLOYEES

215 215

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.

1984 1984

250 250

General construction contractor specializing in design and construction of oil and gas facilities and pipelines, mining facilities, water and sewer facilities, and other remote infrastructure projects.

1985 1985

105 105

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

1991 1991

33 33

Provides oil-spill response services to member companies in the greater Cook Inlet area. Registered with the U.S. Coast Guard, (OSRO) and ADEC (PRAC).

1954 1954

55 55

1892 1953

175 23

1981 1981

226 170

Factory authorized dealer for: Doosan large excavators, loaders & articulated trucks; Bobcat mini-loaders & excavators; Dynapac compaction rollers; Fecom land clearing attachments & carriers. Providing sales, rentals, parts, and service. Alaskan owned and operated, serving AK for more than 60 years. Crowley Marine Solutions provides the oil and gas industry with expertise in offshore engineering, project management, ocean towing, module transportation, project logistics, port development, spill prevention and response services. Crowley Marine Solutions specializes in Arctic operations. Experts in resource development and heavy civil construction.

1987 1987

10 8

2012 2012

8 5

2007 2007

550 50

2002 2002

40 40

1970 1970

15 15

1946 1946

706 612

1984 1984

450 65

Full service consulting engineering for the petro chemical industry.

2006 2006

200 200

Doyon Associated, LLC (DAL) specializes in arctic pipeline construction and associated infrastructure. DAL has an established presence in Alaska with offices in Fairbanks and Anchorage, and shop/yard facilities in Fairbanks and Deadhorse.

1972 1972

831 537

Doyon Drilling-Oil & Gas Drilling; Doyon Associated-Construction; Doyon Anvil-Engineering; Doyon Remote Facilities & Services-Camps and Camp Services.

conamco.com Ken Gerondale, Pres./CEO o.prestwick@cmiak.com cmiak.com Todd Paxton, GM

BUSINESS DESCRIPTION

1981 1981

cispri.org Chris Devine, Pres./CEO facebook.com/craigtaylorequipment craigtaylorequipment.com Bruce Harland, VP crowley.com Dave Cruz, Pres. info@cruzconstruct.com cruzconstruct.com Jeff Yates, GM sales@datem.com datem.com Tim Cudney, Dir. deadhorseaviation.com Ed Gohr, CEO info@deltaconstructors.net deltaconstructors.net Rudi von Imhof, Pres. info@deltaleasing.com deltaleasing.com Ron Pichler, Pres. rpichler@ak.net or denali@ak.net denalidrilling.com Thomas (Bob) Kean, Pres./CEO

DAT/EM Systems International develops solutions for the photogrammetric, engineering & GIS industries. The DAT/EM Photogrammetric Suite includes Summit Evolution 3D stereo mapping software, LandScape point cloud viewing and editing toolkit, Summit UAS for analyzing 3D UAS data, and more. The Deadhorse Aviation Center is Fairweather, LLC’s multi-modal 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, laydown yard for storage rental, office space, terminal, bedrooms, and a full dining facility. Delta Constructors specializes in Construction Management (estimating, planning, scheduling and project execution) and direct hire construction for structural, piping, mechanical, electrical and instrumentation disciplines, in support of Up & Mid-Stream Oil and Gas development. 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. DDI provides geotechnical, environmental, mineral exploration, commercial water well and large diameter (8’) shaft drilling. We also drill, install tie-backs and construct retaining walls. We have provided these services throughout Alaska since 1970. Specialized equipment for onshore and offshore. Operational support including catering, housekeeping, facility maintenance, and security.

denaliuniversal.com Terry Caetano, Pres./GM doyonanvil.com Warren Christian, Pres. doyonassociated.com Aaron Schutt, Pres./CEO info@doyon.com doyon.com Robert Cambron, General Manager sales@alaskapump.com alaskapump.com; dxpe.com Gary Chouest, Pres./CEO

1908 1978

1960 2007

chouest.com Nick Ferree, Mgr. NickF@equipsrc.com equipmentsourceinc.com Larry Weihs, RVP kmadlock@ess-worldwide.com essalaska.com

2000 2000

1986 1986

3,400 Serving industrial, municipal and commercial customers, DXP | Alaska Pump & Supply is 25 at the leading edge of technology providing the best rotating equipment, bearing and PT, MROP, safety products, expert service and engineered solutions from skids to complete modules. Field services are available. 9,250 Founded in Galliano, Louisiana in 1960, the Edison Chouest Offshore companies (ECO) are 94 recognized today as the most diverse and dynamic marine transportation solution providers in the world. ECO operates a growing fleet of over 200 vessels, serving an expanding global customer base. 45 ESI designs, develops, & builds quality, innovative worksite products for the oil, mining, 45 construction, & agriculture industries. All of our products are built Arctic tough, built to last, & tested in challenging environments. We also specialize in Kubota Tractors. SalesService-Parts-Rentals. 500,000 Restaurants, lounges, and espresso operations. Catering services: small to large remote 500 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.

Alaska Business | May 2017 www.akbizmag.com

Everts Air Cargo PO Box 61680 Fairbanks, AK 99706 Phone: 907-450-2300 Fax: 907-450-2320 Fairweather LLC 301 Calista Ct. Anchorage, AK 99518 Phone: 907-346-3247 Fax: 907-349-1920 Fluor Alaska, Inc. 4300 B St., Suite 210 Anchorage, AK 99503 Phone: 907-865-2000 Fax: 907-865-2023 Foss Maritime Company 188 W. Northern Lights Blvd., Suite 1020 Anchorage, AK 99503 Phone: 907-782-4950 Fax: 907-782-1185 Fugro 5761 Silverado Way, Suite O Anchorage, AK 99518 Phone: 907-561-3478 Fax: 907-561-5123 GeoTek Alaska, Inc. PO Box 11-1155 Anchorage, AK 99511-1155 Phone: 907-569-5900 Fax: 907-929-5762 Global Diving & Salvage, Inc. 5304 Eielson St. Anchorage, AK 99518 Phone: 907-563-9060 Fax: 907-563-9061 Golder Associates, Inc. 2121 Abbott Rd., Suite 100 Anchorage, AK 99507 Phone: 907-344-6001 Fax: 907-344-6011 GPS Alaska, Inc. 360 E. Int’l Airport Rd., Suite 10 Anchorage, AK 99518 Phone: 907-562-8000 Fax: 907-562-8080 Great Northwest, Inc. PO Box 74646 Fairbanks, AK 99707 Phone: 907-452-5617 Fax: 907-456-7779

YEAR FOUNDED / ESTABLISHED IN ALASKA

Robert Everts, Pres./CEO info@evertsair.com evertsair.com Linda Leary, Pres. facebook.com/fairweatherllc fairweather.com Wyche Ford, Sr. Project Dir./GM AK Ops fluor.alaska@fluor.com fluor.com John Parrott, Pres./CEO info@foss.com foss.com Rada Khadjinova, GM Alaska AKProjects@fugro.com fugro.com Christopher Nettels, Pres. ksmith@geotekalaska.com geotekalaska.com Devon Grennan, CEO/Pres. info@gdiving.com gdiving.com Mark Musial

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1995 1995

317 287

Everts Air Cargo is an Alaskan owned and operated air carrier providing scheduled and charter (domestic and international) air freight service using MD-80, DC-9, & DC-6 aircraft.

1976 1976

115 85

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. Fluor provides integrated engineering, procurement, fabrication, construction, maintenance & project management solutions to Clients globally. Our integrated solutions approach spans the entire project life cycle–helping to reduce costs & schedules, improve certainty of delivery & increase safety. Foss Maritime offers marine services without equal across the globe, in remote ports & in extreme environments. Our experienced crews specialize in pioneering cargo transport and project services using cutting edge technology, with a steadfast commitment to quality, safety & the environment. Fugro collects data on topography, soil composition, and environmental conditions, both onshore and offshore. We organize the acquired data and add value through processing, interpretation and visualization. In addition, we provide geo-related design, asset inspection, and integrity advice. 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/or Vacuum Clearing. Global is a leader in the marine services industry. With more than 35 years of experience in commercial diving, marine construction, marine casualty response, environmental services, and topside and subsea inspection and testing services, we offer safe, effective solutions to complex problems. Arctic and geotechnical engineering, groundwater resource development, environmental sciences and remedial investigation.

1912 60,000 1954 2

1889 1922

1,600 65

1962 11,000 2003 3

2002 2002

25 25

1979 1979

250 75

1960 1980

6,400 27

2004 2004

6 6

1976 1976

200 180

golder.com Kevin Silvernale, Pres. info@gpsalaska.com gpsalaska.com John Minder, CEO/Pres.

GPS Alaska supplies precision positioning for surveyors, engineers, and contractors. We sell, support, and offer technical training for the positioning products we offer. As well as survey and engineering tools, GPS Alaska is the most experienced team in Alaska for heavy equipment automation. Heavy highway civil construction, utilities, paving, landscaping.

info@grtnw.com grtnw.com

Internet at the Speed of Light When it comes to oil and gas efficiency and innovation, customers demand the most advanced fiber optic technology. We are excited to share that last month, Quintillion celebrated the launch of its fiber optic cable system into the Deadhorse and Prudhoe Bay markets, including an infield fiber system in JV partnership with Alaska Communications, that connects the oil and gas fields west of Prudhoe Bay. Quintillion serves the market by wholesaling capacity to telecom providers at greatly reduced prices – enabling reasonable rates for internet access. Coming soon! Quintillion Subsea Cable System is on schedule to bring high-speed internet to Utqiagvik, Nome, Kotzebue, Point Hope and Wainwright later in 2017, at substantially lower cost and with improved quality of service compared to existing satellite and microwave backhaul. Internet at the Speed of Light. Powered by Quintillion. Coming in 2017.

Qexpressnet.com

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May 2017 | Alaska Business

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

HaberVision 15710 W. Colfax Ave., #204 Golden, CO 80401 Phone: 303-459-2220 Fax: 303-379-4742 Hawk Consultants, LLC 670 W. Fireweed Ln., Suite 201 Anchorage, AK 99503 Phone: 907-278-1877 Fax: 907-278-1889 Hector’s Welding, Inc. 701 Finnel Dr. North Pole, AK 99705 Phone: 907-488-6432 Fax: 907-488-8385 High Tide Exploration 180 E. Hygrade Ln. Wasilla, AK 99654 Phone: 907-354-3132 Immersive Video Solutions 3400 Knik Ave. Anchorage, AK 99517 Phone: 907-279-4000 Fax: 907-274-4000 Kakivik Asset Management LLC 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503 Phone: 907-770-9400 Fax: 907-770-9450 Lounsbury & Associates 5300 A St. Anchorage, AK 99518 Phone: 907-272-5451 Fax: 907-272-9065 LW Survey 1075 Check St., Suite 202 Wasilla, AK 99654 Phone: 907-357-8375 Lynden Air Cargo 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-7248 Fax: 907-257-5124 Lynden International 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

100

YEAR FOUNDED / ESTABLISHED IN ALASKA

Steve Haber, Chairman/Co-Founder sales@habervision.com habersafety.com Drema Fitzhugh, GM dfitzhugh@hawkpros.com hawkpros.com Ken Therriault, VP/GM hectors@acsalaska.net hectorswelding.com Chris Hoffman, Owner Chris@hightidealaska.com hightidealaska.com Kenn Kadow, Pres. kenn@immersivevideosolutions.com immersivevideosolutions.com A. Ben Schoffmann, Pres./CEO info@kakivik.com kakivik.com Ken Ayers, Pres. k.ayers@lounsburyinc.com lounsburyinc.com Gordon Brinker, Pres. International f.schilling@lwsurvey.com lwsurvey.com Rick Zerkel, Pres. charters@lynden.com lynden.com/lac John Kaloper, Pres.

WORLDWIDE / ALASKA EMPLOYEES

2005 2005

3 1

1985 1985

90 78

1956 1956

4 4

2010 2010

2 2

2005 2005

11 1

1999 1999

305 285

1949 1949

50 50

1998 1998

200 5

1996 1996

171 171

1980 1980

214 44

BUSINESS DESCRIPTION

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. Serving the energy industry and organizations responsible for developing and delivering major projects. We provide professional staffing and QA/QC services to our clients, as well as serving as expert consultants in all phases of planning, design, construction & operation of oil and gas facilities. Steel sales, iron fabrication: 10’ shear and brake; roll, Iron Worker; and 10’ X 12’ plasma table.

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

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. 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. We offer clients an array of survey solutions, covering the full life cycle of projects from preliminary planning to final as-built positioning. We combine current technologies including LiDAR and GPS, with industry-leading expertise to provide quality facilities, land and route survey services. Charter air cargo service. Scheduled air cargo and express package service.

Domestic and international freight forwarding and logistics.

ancall@lynden.com lynden.com/lint

Alaska Business | May 2017 www.akbizmag.com

Lynden Logistics 6400 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744 Lynden Oilfield Services 1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-339-5100 Fax: 907-339-5117 Lynden Training Center 4325 Cinch St. Fairbanks, AK 99701 Phone: 907-456-2223 Fax: 907-456-2266 Lynden Transport 3027 Rampart Dr. Anchorage, AK 99501 Phone: 907-276-4800 Fax: 907-257-5155 Marine Container Solutions LLC PO Box 407 Seahurst, WA 98062 Phone: 206-499-0474 Maritime Helicopters 3520 FAA Rd. Homer, AK 99603 Phone: 907-235-7771 Fax: 907-235-7773 Matheson Tri-Gas 6350 Arctic Blvd. Anchorage, AK 99518 Phone: 907-563-6644 Fax: 907-562-2090 Modular Transportable Housing 3116 Commercial Dr. Anchorage, AK 99501 Phone: 877-929-9902 Moffatt & Nichol 880 H St., Suite 208 Anchorage, AK 99501-3450 Phone: 907-677-7500 Fax: 907-677-7577 N C Machinery 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580

YEAR FOUNDED / ESTABLISHED IN ALASKA

Alex McKallor, Pres. information@lynden.com lynden.com/llog Scott Hicks, Pres. information@lynden.com lynden.com/loil Scott Hicks, Pres. ltc@lynden.com lynden.com/training Paul Grimaldi, Pres. trananccs@lynden.com lynden.com/ltia Todd Shirley, Owner/COO Todd@marinecontainersolutions.com marinecontainersolutions.com Robert Fell, Dir. Ops info@maritimehelicopters.com maritimehelicopters.com Scott Kallman, Pres./CEO mathesongas.com Stacy Stoltenow, VP office@mthousing.net mthousing.net Shaun McFarlane, VP smcfarlane@moffattnichol.com moffattnichol.com John Harnish, Pres./CEO jstubben@ncmachinery.com ncmachinery.com

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1984 1984

13 5

Arrangement of freight transportation, information management and logistical services.

2015 2015

28 28

Lynden Oilfield Services, a division of Alaska West Express, provides support for exploration, production, and service companies on the North Slope working to develop Alaska’s oil and gas resources.

1995 1995

4 4

Provides training in hazardous materials transportation, emergency response, Incident Management, hazardous waste, work place safety, and equipment operation. Lynden Training Center, a division of Alaska West Express, is ‘the hands-on training facility.’

1954 1954

251 123

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

2011 -

1 0

Cargo container sales (new-used-custom-related equipment) and leasing.

1973 1973

46 46

We support petroleum, construction & marine industries as well as federal/state agencies. Our fleet includes Bell 206L, 407 and twin-engine 412HP & BO-105 Eurocopters. Our 86’ helipad equipped vessel supports remote marine-based operations. Bases in HomerFairbanks-Kenai-Kodiak-Dutch Harbor-Valdez. 1927 9,000 Matheson Tri-Gas, Inc. is a single source provider of industrial and specialty gases, 2016 19 including bulk and cylinder gases, gas handling equipment, high performance purification systems, and related hardgoods. The Company also provides support services and system management services. 1995 10-50 Mining/Logging Camps, Construction Camps, Construction Offices, Jobsite Engineer2005 1-5 ing Units, Industrial Facilities, Laboratories, Field Offices, Dormitory buildings, Office Buildings, Urban Housing, Shower and Locker Room Facilities, Medical Buildings, Exercise Buildings, Classrooms, Survival Units. 1945 650 Moffatt & Nichol has provided waterfront engineering services to the energy industry since 2012 3 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. 1926 1,116 Cat® machine sales, parts, service, and rental. Cat® engines for marine, power genera1926 265 tion, truck, petroleum, and industrial applications. Sales and rental of Cat® and other preferred brands of rental equipment and construction supplies.

COMPANIES

HIRING ALASKANS MARINE LLC

ENERGY SERVICES LLC A CIRI COMPANY

A CIRI COMPANY

FOR MORE THAN

36 years

CONTRUCTION, INC Experts in Resource Development and Heavy Civil Construction

Cruz Construction | Alaska Interstate Construction | Alaska Aggregate Products Cruz Energy Services | Cruz Marine Original www.akbizmag.com

A CIRI Company

Option 1

A CIRI Company

Option 2 May 2017 | Alaska Business

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COMPANY TOP EXECUTIVE

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

NANA WorleyParsons PO Box 111100 Anchorage, AK 99511 Phone: 907-273-3900 Fax: 907-273-3990 NMS 800 E. Dimond Blvd., Suite 3-450 Anchorage, AK 99515 Phone: 907-273-2400 Fax: 907-273-2424 NMS Camp Services 800 E. Dimond Blvd., Suite 3-450 Anchorage, AK 99515 Phone: 907-273-2400 NMS Food & Facilities Management 800 E. Dimond Blvd., Suite 3-450 Anchorage, AK 99515 Phone: 907-273-2400 NMS Security 800 E. Dimond Blvd. Anchorage, AK 99515 Phone: 907-273-2400 Fax: 907-273-2424 NMS Staffing 800 E. Dimond Blvd., Suite 3-450 Anchorage, AK 99515 Phone: 907-729-5570 Fax: 907-729-5579 NORCON, Inc. 949 E. 36th Ave., Suite 501 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-275-6300 Nordic-Calista Services 219 E. Int’l Airport Rd., Suite 200 Anchorage, AK 99518 Phone: 907-561-7458 Fax: 907-563-8347 North Star Terminal & Stevedore Co., LLC 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-263-0120 Fax: 907-272-8927 Northern Air Cargo, Inc. 3900 Old International Airport Rd. Anchorage, AK 99502 Phone: 907-243-3331 Fax: 907-249-5191

YEAR FOUNDED / ESTABLISHED IN ALASKA

Craig Morrison, Pres. info@nanaworleyparsons.com nanaworleyparsons.com Matthew Daggett, Pres. information@nmsusa.com nmsusa.com Jason Carlson, VP Ops

1997 1997

1974 1974

WORLDWIDE / ALASKA EMPLOYEES

300 300

2,200 Built on a culture of safety and integrity, NMS delivers award-winning support services to 2,000 a variety of clients in Alaska and the contiguous U.S. Our service portfolio includes food services, security, facilities management, camp services, staffing and hotel management.

1974 1974

550 550

1974 1974

740 690

1974 1974

500 350

1991 1991

50 50

1974 1974

200 200

1982 1982

14 14

1950 1950

20 20

1956 1956

384 379

nmsusa.com Derrell Webb, VP Ops nmsusa.com Eric Fox, VP Ops nmsusa.com Jason Carlson, VP Ops nmsstaffing@nmsusa.com nmsusa.com Randy Barnes, Pres. Norcon, Inc. Inquiries@NORCON.com norcon.com Noel Therrien, Ops Mgr. info@nordic-calista.com nordic-calista.com Jeff Bentz, Pres. scottv@northstarak.com northstarak.com David Karp, Pres./CEO customercare@nac.aero nac.aero

BUSINESS DESCRIPTION

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

As the largest and most-experienced camp services provider in Alaska, NMS is committed to the safe and professional operations of remote worksites. We continually find strategic ways to offer clients value while keeping individual, corporate and environmental safety at the forefront of what we do. NMS offers quality food service solutions that include catering, corporate dining, healthcare services, education services and restaurant management; our facilities management services provide dedicated workforces for clients’ buildings and grounds, allowing them to focus on their core business. Since 1974, NMS has partnered with some of the world’s largest and most technologically advanced organizations, offering the highest-quality security services, including armed and unarmed guards, public reception, wildlife control and state-of-the art video surveillance. NMS provides staffing services that allow companies, large or small, to focus on the daily responsibilities and challenges of running a business rather than intensive hiring processes–processes we’ve perfected over 26 years. NMS will recruit, qualify and hire the best employees for your business. NORCON is a full-service General Contractor with expertise in mechanical, electrical, instrumentation & process pipe installations for AK Oil & Gas. Our experienced craft labor executes projects including well tie-ins, critical shutdowns/turnarounds, scaffolding, and support facility construction. Workovers, completions, coiled tubing drilling, rotary drilling, remote camp leasing, and catering services.

Stevedore, Marine logistics, specializing in providing crane and equipment operated, rental solutions. We also offer state of the art ABI Mobil Ram machines, for large diameter drilling, with vibratory and hammer attachments built for driving pile. We are DOT approved for bridge foundation work. Anchorage based Northern Air Cargo is Alaska’s 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’s services.

“We’re bringing in BDO. The partner’s already on it.” People who know, know BDO.SM

BDO provides assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. We offer a sophisticated array of services and the global capabilities of the world’s fifth largest accounting and consulting network, combined with the personal attention of experienced professionals. BDO 3601 C Street, Suite 600, Anchorage, AK 99503 907-278-8878 Accountants and Consultants www.bdo.com © 2014 BDO USA, LLP. All rights reserved.

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Northern Land Use Research Alaska LLC 234 Front St. Fairbanks, AK 99701 Phone: 907-474-9684 Fax: 907-474-8370 NRC Alaska LLC 425 Outer Springer Lp. Palmer, AK 99645 Phone: 907-258-1558 Fax: 907-746-3651 Ocean Marine Services, Inc. PO Box 7070 Nikiski, AK 99635 Phone: 907-776-3685 Fax: 907-776-3681 Offshore Systems Kenai PO Box 8505 Nikiski, AK 99635 Phone: 907-776-5551 Fax: 907-776-8836 Offshore Systems, Inc. PO Box 920427 Dutch Harbor , AK 99692 Phone: 907-581-1827 Fax: 907-581-1630 Olgoonik Inspection Services 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-562-8728 Fax: 907-562-8751 Olgoonik Oilfield Services 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-868-5112 Fax: 907-562-8751 Pacific Alaska Lumber Company, LLC 421 W. First Ave., Suite 245 Anchorage, AK 99501 Phone: 888-732-3542 Paramount Supply Company 7928 King St. Anchorage, AK 99518 Phone: 907-349-0280 Fax: 907-349-0281 Peak Oilfield Service Company LLC 5015 Business Park Blvd., Suite 4000 Anchorage, AK 99503 Phone: 907-263-7000 Fax: 907-263-7070

www.akbizmag.com

YEAR FOUNDED / ESTABLISHED IN ALASKA

Burr Neely, GM nlur@northernlanduse.com northernlanduse.com Blake Hillis, Sr. VP NRC Alaska PNielsen@nrcc.com nrcc.com Kelly McNeil, VP

1991 1991

2014 2014

1982 1982

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

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. 1,500 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. 85 OMSI owns and operates offshore supply vessels, landing crafts and research vessels in 75 support of Cook Inlet oil and gas development.

omsi-ak.com Kelly McNeil, VP

1983 1983

140 30

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.

1982 1982

60 50

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

2014 2014

3 3

2009 2009

13 13

2007 2007

5 1

1954 1982

125 5

1987 1987

700 640

Olgoonik Inspection Services provides integrity compliance inspection, nondestructive testing, engineering, and remediation services for government and commercial clients. Inspections are performed in accordance with ASNT, ASME, API 653, API 510, API 570, NACE, AWS-CWI, and STI. Arctic Solutions and Exploration Support; Remote Logistics; Scientific Services and Acquisition; Program and Project Delivery, Environmental Compliance, Engineering, Unmanned and Remote Sensing, Arctic-based Heavy Equipment Operations, and Natural Resource Development. Wholesale â&#x20AC;&#x153;direct-shipâ&#x20AC;? suppliers of ALL construction and specialty materials serving ALL industries in Alaska. ALL Wood, Timbers, Treated, Plywood, Panels, EWP, GLB, Metal, SIP, GEO, Rigid Foam, GWB, Helical Piers, Millwork, and Hardware. WE STOCK MATS IN ALASKA. Rig, Crane, Composite, and Access. Paramount Supply Company is an industrial wholesaler founded in 1954 by John Hagen. Paramount quickly built its reputation with quality products and exceptional service. That tradition literally began out of the trunk of the founders car, continues today. 22 locations in AK, AZ, ID, OR, TX, WA & WY. Oilfield general contracting, heavy civil construction, ice roads, camps, all-terrain vehicle transport, rig moving and drilling support.

offshoresystemsinc.com Jeff Savage, GM offshoresystemsinc.com Steve MacRae, VP olgoonikinspectionservices.com Weston Howe, VP oilfield@olgoonik.com olgoonikoilfieldservices.com Vint Jones, Pres. vint@pacaklumber.com pakaklumber.com Jay Goold, Branch Mgr. jaygoold@paramountsupply.com paramountsupply.com Craig Crawford, Pres./CEO peak@peakalaska.com peakalaska.com

May 2017 | Alaska Business

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COMPANY TOP EXECUTIVE

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

Petro 49 1813 First Ave. Anchorage, AK 99503 Phone: 907-562-5000 Fax: 907-273-8242 Petroleum Equipment & Services, Inc. 5631 Silverado Way, Unit G Anchorage, AK 99518 Phone: 907-248-0066 Fax: 907-248-4429 PND Engineers, Inc. 1506 W. 36th Ave. Anchorage, AK 99503 Phone: 907-561-1011 Fax: 907-563-4220 Price Gregory International 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255 PRL Logistics, Inc. 421 W. First Ave., Suite 250 Anchorage, AK 99501 Phone: 907-261-9440 Fax: 907-261-9441 Production Testing Service 440 E. 100th Ave. Anchorage, AK 99515-2603 Phone: 907-344-2024 Fax: 907-344-2022 Puget Sound Pipe & Supply Co. 2120 Spar Ave. Anchorage, AK 99501 Phone: 907-277-7473 Fax: 907-277-9656 Quality Equipment Sales & Services 11801 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-6215 Fax: 907-349-2332 Quantum Spatial 2014 Merrill Field Dr. Anchorage, AK 99501 Phone: 907-272-4495 Fax: 907-274-3265 Samson Tug & Barge Co. 329 Harbor Dr. Sitka, AK 99835 Phone: 800-331-3522 Fax: 907-747-5370

YEAR FOUNDED / ESTABLISHED IN ALASKA

Kurt Lindsey, Pres./CEO facebook.com/PetroMarineServices/ petromarineservices.com Kevin Durling, Pres. sales@pesiak.com pesiak.com Jim Campbell, Pres.

WORLDWIDE / ALASKA EMPLOYEES

240 240

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

1983 1983

18 18

1979 1979

105 70

We are in the business of supplying specialty products in the Alaska oil and gas market. Representing the following industry leaders: TESCO, HDBS, Churchill Drilling Tools (Circ subs), Sprung Engineered Structures, Drilltech, TAM International, and Cementation Accessories and Equipment. General civil, structural, geotechnical, arctic, marine, and coastal engineering; survey; permitting; hydrology; metocean; quality assurance; inspection. linkedin.com/company/ pnd-engineers-inc.

pndengineers.com Robert Stinson, Sr. VP

BUSINESS DESCRIPTION

1959 1959

1974 1974

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

pricegregory.com Ron Hyde, Pres./CEO info@pacrimlog.com pacrimlog.com Robert Hoff Jr., Pres. gstalzer@ptssite.com productiontestingservices.com Scott English, AK Div. Mgr. senglish@pspipe.com pugetpipe.com Ray Belanger, Pres./Owner quality@ak.net quessak.com Adam McCullough, AK Bsns. Dev. Dir. contact@quantumspatial.com quantumspatial.com George Baggen, Pres./CEO sales@samsontug.com samsontug.com

2002 2002

40 40

1988 1988

40 12

1917 1984

150 30

1982 1982

8 8

1960 1960

433 30

1937 1937

PRL is Alaska-Owned and Operated with a high commitment to Safety. From expediting to your most complex, remote logistics challenges, PRL provides scalable logistics solutions worldwide to meet your logistics needs and ensure project success. We specialize in Alaska, the Lower 48, and beyond. Well testing, equipment rental and engineering.

Alaska’s largest supplier of pipe, valves and fittings to Alaska oilfields. Two locations in Alaska: Anchorage and Kenai.

Truck Up-fitter, Construction Equipment, Vehicle Maintenance, Highway Maintenance Equipment. Thomas Bus & Dimond Coach Dealer. Fisher Snowplows and service. Flatbeds, Service Bodies, Tool Boxes, Hoists, Cranes.

Quantum Spatial’s comprehensive capabilities encompass the acquisition, analysis, integration, and management of geospatial data. We offer a diverse portfolio of advanced imaging and remote sensing technologies, backed by powerful modeling, visualization, and GIS tools. 150+ Alaskan owned, we offer the full range of barge freight & cargo hauling services, transport80+ ing cargo to Sitka, Cordova, Valdez, Fairbanks, Prudhoe Bay, Seward, Anchorage, Kenai Peninsula, Kodiak, King Cove, Dutch Harbor, Juneau, Ketchikan, Petersburg, Wrangell, Prince of Whales Island & Metlakatla.

CERTEK HEATING SOLUTIONS

E X T R E M E

MOBILE

E N V I R O N M E N T

HEATING

SOLUTIONS

•PIPELINES •RIGS •CONSTRUCTION •NORTH SLOPE •COMPLETIONS

W W W. C E R T E K H E A T. C O M 104

1.888.923.7835

Alaska Business | May 2017 www.akbizmag.com

Schlumberger Oilfield Services 6411 A St. Anchorage, AK 99518 Phone: 907-273-1700 Fax: 907-273-4760 Security Aviation 6121 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-248-2677 Fax: 907-248-6911 Shoreside Petroleum, Inc. 6401 Lake Otis Pkwy. Anchorage, AK 99507 Phone: 907-344-4571 Fax: 907-349-9814 Siemens Industry Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139 SLR International Corporation 2700 Gambell St., Suite 200 Anchorage, AK 99503 Phone: 907-222-1112 Fax: 907-222-1113 Spill Shield, Inc. 2000 W. International Airport Rd, #D-2 Anchorage, AK 99502 Phone: 907-561-6033 Fax: 907-561-4504 Steigers Corporation 791 South Park Dr., Suite 800 Littleton, CO 80120-5719 Phone: 800-935-6569 Fax: 303-500-3113 Summit ESP 4341 B St., Suite 101 Anchorage, AK 99503 Phone: 907-770-1033 Superior Machine & Welding, Inc. 1745 Ship Ave. Anchorage, AK 99501 Phone: 907-278-3944 Fax: 907-277-4999 Swagelok Alaska 341 E. 56th Ave. Anchorage, AK 99518 Phone: 907-563-5630 Fax: 907-563-4721

YEAR FOUNDED / ESTABLISHED IN ALASKA

Christine Resler, GM randerson2@slb.com Schlumberger.com Stephen “Joe” Kapper, Pres. sales@securityaviaition.biz securityaviation.biz Kurt Lindsey, Pres. info@shoresidepetroleum.com shoresidepetroleum.com Leverette Hoover, GM AK/Pacific Rim leverette.hoover@siemens.com siemens.com Brian Hoefler, AK Mgr. bhoefler@slrconsulting.com slrconsulting.com Lark Christensen spillshield@ak.net spillshield.com William Steigers, Chairman/CEO wdsteigers@steigers.com steigers.com John Kenner, Pres./CEO facebook.com/SummitEsp Summitesp.com Jantina Lunsford, Pres. smwjal@acsalaska.net superiormachine.net Tarek Sheira, AK Branch Mgr.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1956 95,000 Oilfield Services. 1956 500

1985 1985

25 25

1981 1981

100 100

1992 1992

4 2

1993 2004

5 1

2010 2014

500 18

Electric Submersible Pumps and Surface pumping systems ESP and associated services.

1950 1950

10 10

Full service machining shop and oilfield servicing company. Propellor and shaft repairs.

24/7 on-demand air charter. Approved carrier for Corps of Engineers, State and Federal Agencies. Executive travel, crew changes, HAZMAT, “HOT” cargo and medical transports.

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 ‘Essential 1’ brand. 1849 400,000+ Energy Services Company (ESCO)/Total Building Integrator: to include Building Automa1982 75 tion/Energy Management control systems, fire alarm, HVAC mechanical systems, security (card access, CCTV, intrusion, etc.), audio, video solutions, mass notification systems, electrical distribution and more. 2000 1,200 Air permitting and measurements, acoustics, project permitting, environmental compli2001 70 ance, site investigation, remediation, risk assessment and oil spill contingency planning.

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. 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 40,000 Instrumentation and fluid system components. Authorized Swagelok distributor for Alaska. 1965 10

info@alaska.swagelok.com alaska.swagelok.com

CH2M is the only firm in Alaska to have built every type of truckable module » » » » »

Blast-resistant Control Rooms (BRMs) Remote Electrical and Instrumentation (REIMs) Fuel Gas Conditioning Chemical Injection Emergency Shutdown (ESDs)

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Production Separators Test Separators Pigging – Launchers and Receivers Metering Switchgear Generator

PR0119171106ANV

Building modules for the North Slope is just one thing we excel in – we are the team that delivers engineering, fabrication, maintenance, and construction. If you are looking for the experts in Alaska, look no further than CH2M Alaska.

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www.ch2m.com | alaska@ch2m.com

May 2017 | Alaska Business

105

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

Thompson Metal Fab 3000 SE Hidden Way Vancouver, WA 98661 Phone: 360-696-0811 Total Safety U.S., Inc. 209 E. 51st Ave. Anchorage, AK 99503 Phone: 907-743-9871 Fax: 907-743-9872 TransGroup Global Logistics 3501 Postmark Dr. Anchorage, AK 99502 Phone: 907-243-4345 Tri-Jet Manufacturing Services 1960 S. Eklutna St. Palmer, AK 99645 Phone: 866-607-1653 Fax: 907-268-2086 Truckwell of Alaska, Inc. 5801 Silverado Way Anchorage, AK 99519-1659 Phone: 907-349-8845 Fax: 907-344-0644 TTT Environmental Instruments & Supplies 4201 B St. Anchorage, AK 99503 Phone: 907-770-9041 Fax: 907-770-9046 Tutka, LLC 2485 E. Zak Cir., Suite A Wasilla, AK 99654 Phone: 907-357-2238 Fax: 907-357-2215 Udelhoven Oilfield System Services 184 E. 53rd Ave. Anchorage, AK 99518-1222 Phone: 907-344-1577 Fax: 907-344-5817 UIC Arctic Response Services, LLC 301 Calista Ct., Suite 101 Anchorage, AK 99518 Phone: 907-865-4900 Fax: 907-334-8263 UIC Oil & Gas Support 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-677-8220 Fax: 907-677-8283

106

YEAR FOUNDED / ESTABLISHED IN ALASKA

John Rudi, Owner/Pres. tmfab.com Troy Thacker, Pres./CEO

1937 -

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

200 0

TMF, a VOSB, is a steel fabricator who excels at low-temp projects. Our certifications include: API (4F-0087), AISC (Adv. Bridge) & ASME (U-stamp). We work in a 300,000 sq ft facility with nearly 60 ft under the roof and from our 15-acre rig up yard adjacent to a Columbia River barge slip. 1994 4,000 Remote Emergency Medical Services, Breathing Air Systems, Gas Detection Systems, H2S 2003 9 and Safety Consultants, Safety and Medical Training.

totalsafety.com Rich Wilson, Station Mgr. karic.anc@transgroup.com transgroup.com Nicole Cullen, GM ncullen@trijetprecision.com trijetprecision.com Kris Swanson, Owner info@truckwell.com truckwell.com Deborah Tompkins, Owner info@tttenviro.com tttenviro.com John Sommer, P.E./Member john@tutkallc.com tutkallc.com Jim Udelhoven, CEO rfrontdesk@udelhoven.com udelhoven.com Peter Andersen, GM info@uic-ars.com uic-ars.com Rob Luis, Sr. VP uicalaska.com

1987 2011

3,000 U.S. owned full service freight forwarder and global logistics provider. We provide trans2 portation, warehousing and specialized logistics solutions, coupled with software tailored to meet the specific needs of each individual customers-for every link in your supply chain. Areas Served: Worldwide. 2004 8 Waterjet cutting, powder coating, ceramic coating, welding and fabrication, machining2004 8 including 5-axis, 3D modeling, and drafting.

1989 1989

19 19

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

2003 2003

11 9

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

1999 1999

10-50 WBE/DBE, HUBZone, General Contractor (roads, bridges, culverts, site work), environmen10-50 tal cleanup and consulting, SWPPPs, SPCCs, NALEMP/IGAP CA/grant management.

1970 1970

360 350

Oilfield Services, Construction Management, Electrical & Mechanical Construction.

2013 2013

61 60

UIC Arctic Response Services, LLC provides Alaskaâ&#x20AC;&#x2122;s oil and gas industry with spill response contingency planning, response equipment leasing, operations, and maintenance as well as marine project support. Please visit us at www.uic-ars.com for more information.

2005 2005

20 20

UIC O&G offers Project Mgt, Contract Mgt. & Planning, Project Development, Project Planning & Operations, Project Logistics, Project Fuel Mgt, Remote Camp Services w/ Personnel Staffing, Administrative Services & Labor Pool, Project Communication Planning & Implementation.

Alaska Business | May 2017 www.akbizmag.com

Vigor Alaska 3801 Tongass Ave. Ketchikan, AK 99901 Phone: 907-228-5302 Fax: 907-247-7200 Washington Crane & Hoist 651 E. 100th Ave., Unit B Anchorage, AK 99515 Phone: 907-336-6661 Fax: 907-336-6667 Waste Management National Services, Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 907-274-0477 West-Mark Service Center-Fairbanks 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273 William Scotsman 440 S. Sylvan Rd. Wasilla, AK 99623 Phone: 907-562-1000 Fax: 907-562-1082 Wolseley Industrial Group 151 W. 95th Cir. Anchorage, AK 99515 Phone: 907-273-2100 Fax: 907-273-2111 Yukon Equipment, Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 800-478-1541 Fax: 907-258-0169 Yukon Fire Protection Services 5601 Silverado Way Anchorage , AK 99518 Phone: 907-563-3608 Yukon Industrial 600 W. 58th Ave. Suite J Anchorage , AK 99518 Phone: 907-274-7973

YEAR FOUNDED / ESTABLISHED IN ALASKA

Adam Beck, Pres. info@akship.com vigor.net/facilities Mike Currie, VP SDick@washingtoncrane.com washingtoncrane.com Mike Holzschuh, Sr. Territory Mgr. mholzschuh@wm.com wm.com Scott Vincent, CEO wwalker@west-mark.com west-mark.com Craig Pester, Area Mgr. craig.pester@willscot.com willscotalaska.com Mark Mays, AK Area Branch Mgr. Karl.Greninger@WolseleyInd.com wolseleyindustrialgroup.com Charles Klever, Pres. info@yukoneq.com yukoneq.com Matt Atkins , GM/VP matkins@yukonfire.com yukonfire.com Matt Atkins , GM/VP

1994 1994

1975 2008

1971 1971

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

2,500 With twelve locations and more than 2,500 workers Vigor is the leading provider of 220 shipbuilding, ship repair and complex fabrication in the Pacific Northwest and Alaska employing 220 Alaskans in Ketchikan and Seward shipyards able to travel to the most remote locations. Industrial services. 35 Crane builders, crane design, new crane sales, new hoist sales, lifting equipment design 8 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. 43,000 Hazardous and nonhazardous waste disposal, project management, complete logistical 10 oversight, complete US and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation, and turnkey remedial services.

1967 2009

215 7

Liquid transportation tank trailer repair.

1963 60,000 Workforce Camps, Remote Accommodations, Mobile Office, Office and Modular Solutions. 1993 6

1950 23,000 Wolseley Industrial Group provides PVF materials in every Alaska market. Locations in 1981 90 Anchorage, Fairbanks, Soldotna, and Wasilla. We are the only ISO9001:2008 certified PVF supply house in the State of Alaska. Full time Quality Assurance provided. Steel, HDPE, pipe, valves, fittings, stainless. 1945 38 Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, 1945 38 Oshkosh, Etnyre, Monroe, Trackless, and Snow Dragon. Anchorage, Fairbanks, and Wasilla locations. A subsidiary of Calista Corp. 1978 1978

34 34

2016 2016

5 5

www.yukonfire.com

Fire and gas detection and suppression system design, supply, installation and service. Alaskaâ&#x20AC;&#x2122;s only representative of Detector Electronics. Kidde Fire Systems, Marioff Hi-Fog, Ansul, Tyco Fire Protection Products, CWSI Wireless Fire Alarm, Foam Suppression, Marine Systems, compliance inspections. Industrial Fire & Gas Detection and Suppression solutions. System design and engineering, compliance inspections, and panel fabrication and testing services. Det-Tronics, Kidde Fire Systems, Ansul, Tyco Fire Protection Products, Marioff Water Mist, Edwards/EST.

Anywhere... Anything... Anytime... On Time!

Alaska (907) 562-5588 www.akbizmag.com

ArcticCatering.com May 2017 | Alaska Business

107

OIL & GAS SPECIAL SECTION | 2017 OIL & GAS DIRECTORY

COMPANY TOP EXECUTIVE

VISITOR INDUSTRY

Arctic Tourism Beautiful, remote, unique By Tasha Anderson

Photo by John Gaedeke

Iniakuk Lake Wilderness Lodge, owned by Patricia Gaedeke, can accommodate up to ten guests at any time and is accessible only by plane—on floats in the summer and skis in the winter.

Photo by John Gaedeke

Guests of Iniakuk Lake Wilderness lodge can canoe or kayak on Iniakuk Lake, which is five miles long and offers views of the Brooks Range.

108

hat’s fantastic about Alaska’s tourism industry is that there’s something for everyone—whether it’s a group taking a walking ghost tour of Downtown Anchorage, a family rafting trip on the Nenana in Denali National Park, or a couple settling in for an endless Alaska summer night in a remote cabin, Alaska offers visitors and residents alike nearly endless recreational options. In Alaska’s Arctic, there are many traveling options remote and unique even by Alaska standards. Utquiaġvik (formerly Barrow) is Alaska’s and the United States’ northernmost city, and as such presents opportunities for exposure to Arctic sights and Alaska Native customs and culture unique to the region, including a June festival celebrating the end of the whaling season. Nome, perched on the tip of the Seward Peninsula overlooking the Bering Sea, offers a mix of Alaska Native culture, Alaska adventure, sporting events, and a rich history as Alaska’s most famous Gold Rush town. Kotzebue—known as the Gateway to the Arctic—lies on a sand spit at the end of Baldwin Peninsula in the Kotzebue Sound at the end of the Noatak, Kobuk, and Selawik Rivers, serving as a trading location for Alaska Natives for hundreds of years. And there are dozens of other villages and small communities throughout the Arctic to

Alaska Business | May 2017 www.akbizmag.com

Photo by John Gaedeke

Fishing at Iniakuk Lake Wilderness Lodge is primarily catch-and-release, owner Patricia Gaedeke explains, to ensure the health of local fish populations.

explore. As small and rural as these communities may be, there are, speckled in the region, even more remote adventures for those wanting to immerse themselves in wilderness. One remarkable example is the Iniakuk Lake Wilderness Lodge.

Iniakuk Lake Wilderness Lodge Iniakuk Lodge is located sixty miles north of the Arctic Circle and is accessible only by plane. The Iniakuk’s owner, Patricia Gaedeke, says that all of their tours is all-inclusive. “They include round-trip air transportation

from Fairbanks with Wright Air Service to Bettles, where guests transfer to Brooks Range Aviation, and then they fly on floats to Iniakuk Lake,” Gaedeke explains. “Our packages also include lodging, meals, and a guide for each group for the time that they’re here.” Gaedeke, originally from California, says that in the 1970s, her future husband was a master guide who contracted her father for a hunt. Two years later, when guide Bernd Gaedeke came through California on a winter vacation, he met Patricia “and fifty days later we were married and I moved to Alaska,” she says.

It was in the summer of 1974 (the summer of their honeymoon), with a BLM log cutting permit, that Gaedeke and her husband cut the logs for the lodge and floated them across Iniakuk Lake the following summer “with no big equipment, just with a lot of friends” to build the lodge. “It took two or three more years to get the interior done,” Gaedeke says. For some years Iniakuk Lodge was purely a hunting destination, but Gaedeke says it has transitioned into tourism, providing a soft eco-tourism experience. The main lodge is situated at the north end of the five-mile-long Iniakuk Lake, Arctic tourism offers stunning water, tundra, and mountain vistas, including the Brooks Range. Photo by John Gaedeke

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May 2017 | Alaska Business

109

Iniakuk Lake Wilderness Lodge is open for a short winter season, during which time guests can enjoy Arctic winter sports such as dog sled mushing with Yukon Quest 2015 winner Brent Sass.

overlooked by 4,000 foot mountain peaks that mark the onset of the southern Brooks Range. The main lodge features the dining hall, kitchen, and three bedrooms on the second floor, with a separate bathhouse boasting modern showers and endless hot water nearby. Iniakuk Lodge also offers a private, two-bedroom guest suite with attached bath and an upstairs lounge and fireplace with a panoramic view of Iniakuk Lake and the Brooks Range. Gaedeke says guests have many activity options, including hiking, catch-and-release fishing, canoeing, boating, and flightseeing, all from the main lodge. She explains the fishing is catch-and-release as a precaution to ensure the fish population in the lake isn’t threatened. “The fish are under the ice about eight months of the year, and so if we kept every fish over the last forty years that everyone has caught, there probably wouldn’t be any fish left in the lake at this point. It takes them a long time to grow, and they have a short season when they can spawn and gather food.” Gaedeke charters with Wright Air Service to fly in about 2,500 pounds of food, so there’s plenty to go around, even without the fish. “We have two other cabins that are within the Gates of the Arctic National Park and Preserve,” Gaedeke says, while the main lodge is located just outside of the park. Guests that want a broader sense of the area can book a package that offers a two night stay at each property for a total of six days, ending with

Photo by John Gaedeke

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Alaska Business | May 2017 www.akbizmag.com

Winter activities at Lake Iniakuk Wilderness Lodge include hiking, snowshoeing, dog sled mushing, and ice fishing during the Lodge’s short winter season when both the lake is solid enough for planes to land safely and there’s enough light. Photo by John Gaedeke

two nights at the main lodge, “so guests can shower and feel refreshed before returning to civilization.” Gaedeke says, at most, the Iniakuk can accommodate ten people at any time. “It’s not really the kind of place, and neither is the Brooks Range, where you just want to go by the numbers. It’s high-end, low-volume.” The Iniakuk Lodge speaks specifically to guests looking for a tranquil, remote experience. “We’ve been doing this for well over forty years, and I think we’ve only had two couples that got on the beach and realized, ‘Nope, this is a little too remote for me,’ and they got right back on the plane,” she says. The lodge—which is run on solar power— is seasonal, but it’s open for the summer and winter seasons. Their summer season is from the end of June to early September so they are able to fly out before the lake freezes. Their winter season begins in February, when the lake is frozen solid enough for ski planes to land and there’s still some daylight. The winter season ends the first week of April. “So it’s short and intense,” Gaedeke says. During the winter there’s a sled dog team on site, so guests can mush, ski, snowshoe, and ice fish. The sled dogs are owned by musher Brent Sass, who won the 1,000 mile 2015 Yukon Quest, a sled dog race that runs from Whitehorse, Yukon in Canada to Fairbanks. No matter the season, Iniakuk is a treat. Despite its remote location, it features some modern amenities, including internet service through satellite. And Gaedeke is the cook for the property, making bread and all other items from scratch for meals served familystyle. She says it may not be fancy, but it’s good, nourishing food. She summarizes, “Guests really like the remoteness of the lodge; they like the fact that we talk over meals and have the kind of atmosphere that people used to have before everybody starting looking at their phones and watching TV. [Guests] go away refreshed and renewed, and I’ve noticed they just seem peaceful when they leave.” R

Tasha Anderson is the Associate Editor for Alaska Business Monthly. www.akbizmag.com

May 2017 | Alaska Business

111

RIGHT MOVES CRW

CRW Engineering Group, LLC is excited to welcome Andrea Meeks, PE; Karl Hulse, PE; and Matt Edge, PE, PTOE, to CRW’s leadership. Meeks is a civil and environmental engineer with more than sixteen years of Alaska engineering experience. She joined CRW in 2003 after spending three years working in Unalaska and continues to work for rural Alaska, designing infrastructure and facilities. Meeks Hulse is a licensed civil and environmental engineer with nineteen years of experience in Alaska. He has been part of the CRW team for the past fourteen years and focuses on projects that directly benefit the health and welfare of Alaska community residents, bringing new and improved energy Hulse and sanitation systems to rural Alaska. Edge, a licensed civil and environmental engineer and certified Professional Traffic Operations Engineer, has been contributing to CRW’s design for the past seventeen years. Known for his dedication to CRW client needs, Edge’s hands-on project management has led to the successful Edge completion of transportation, drainage, and sanitation improvement projects throughout Alaska.

Alaska Alcohol and Marijuana Control Office

The Alcohol and Marijuana Control Office announced Erika McConnell has been appointed as its new Director. McConnell joins the office after fourteen years with the Municipality of Anchorage, where she oversaw special land use permits for alcohol and wrote the city’s marijuana land use regulations.

Mt. McKinley Bank

Amy Richards was promoted to Executive Vice President and Chief Operations Officer of Mt. McKinley Bank. Richards has been with the bank for more than thirty years working entirely in the Deposit Operations area. Richards oversees five offices and is a member of the bank’s Asset Liability and Compliance Richards Committees.

Kaye Kingkade has been promoted to Senior Vice President. Kingkade celebrates her 30th Anniversary with Mt. McKinley Bank in 2017. In addition to her other duties, Kingkade is responsible for marketing and contributions. Kingkade started her career at Mt. McKinley Bank Kingkade as a teller and moved up the ranks. Dawn Thompson has been promoted to Senior Vice President and Information Systems Manager. Thompson has been with the Bank for thirty-three years, starting her Mt. McKinley Bank career in the Loan Servicing Department. In 2000 she made the decision to move to the IT Thompson Department. Thompson now oversees all of the data systems of the bank as well as the Business Continuity Plan and Vendor Management.

American Income Life Insurance Company-Altig

American Income Life Insurance Company-Altig (AIL-Altig) has appointed Joanna Hansen to Regional General Agent in the Anchorage office. After earning her bachelor’s degree at the University of Alaska, Hansen joined AILAltig in August of 2015. She was then Hansen appointed to Master General Agent in January of 2016.

Kumin

Kumin has promoted architect Sarah Salazar to the position of Associate, making her the youngest Associate in Kumin’s forty-year history. A licensed Architect in both Alaska and New Mexico, Salazar received a Bachelor Salazar of Architecture from the University of Arizona and is also a Certified Document Technologist.

Great Alaskan Holidays

Great Alaskan Holidays announced the hiring of several new key personnel and the promotions of two current team members. Tommy Weitzel has recently been promoted to Retail Service Manager and has been with Great Alaskan Holidays for more than seven years. Weitzel has a very strong industry background with more than twenty years of relative experience as a lifelong Alaskan.

Michael Haggerty has been promoted to Parts Manager for Great Alaskan Holidays. Originally from Pendleton, Oregon, Haggerty has a five-year depth of industry experience. Steve Brawn has joined Great Alaskan Holidays as their newest RV Sales Consultant. Brawn has been providing sales consultation for locally owned small businesses in Alaska’s power sports arena for more than seven years and has also been an Alaskan resident his entire life. Leroy (LJ) Johnson is Great Alaskan Holidays newest RV Technician, coming to the organization with more than fifteen years of related experience. A lifelong Alaskan, Johnson’s power generation and distribution background includes maintenance and shop foreman responsibilities with Holland America/Princess Cruise Lines. Malinda Ezell has also recently been hired as the company’s new Service Writer. Over the previous two years, Ezell, a lifelong Alaskan, has been employed with Great Alaskan Holidays in a seasonal capacity as a customer service representative and customer service supervisor and is now with the company on a full-time basis.

R&M Consultants

Don Porter, PE, has been named Group Manager of Utilities and Nicole Knox, PE, has been promoted to Group Manager of Site Development at R&M Consultants, Inc. Porter has been with R&M for twenty-seven years and was formerly group manager of site development. Porter is responsible for utility systems design and coordination, including water/sewer plan and profiles, trench and piping details, arctic pipe protection, and rehabilitation design for Porter existing pipe systems. He holds a BS in Civil Engineering from Colorado State University. Knox has worked in R&M’s site development group since 2005. She is responsible for site planning, design, and construction administration services for a variety of sites in urban and rural locations. Knox holds a BS in Civil Engineering from UAA.

Knox

AEDC

Darleen Fernandez has joined the AEDC team as their new Development Director. Fernandez was development director at Girl Scouts of Alaska following nearly twenty years as an administrator and fundraiser with local arts organizations including the Anchorage Symphony Orchestra and Sitka Summer Music Festival. She holds a bachelor’s degree in Journalism and Public Communications from UAA.

RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO

Real Alaskans. Real cargo. 112

Alaska Business | May 2017 www.akbizmag.com

Compiled by Tasha Anderson RE/MAX Dynamic Properties

RE/MAX Dynamic Properties welcomes Shawn Rogers to the team. A lifelong Alaskan, Rogers graduated from UAA and opened her own business called Putter Wild, an indoor black light miniature golf course in South Anchorage. After five successful years, she sold her business Rogers to pursue a career in real estate sales. The company also welcomes Sara Lindemann to their team. Lindemann came to rural Alaska in the early eighties, eventually moving to Anchorage. She has worked in the real estate, oil and gas, and medical industries and is pursuing a new career in real estate sales.

Lindemann

Bell & Associates

Bell & Associates announced three promotions in their Anchorage office and firm headquarters. Frank “FT” Bell has been promoted to Chief Operations Officer. Bell has more than ten years of experience of land surveying with the company in the Prudhoe Bay office as a head chainperson, instrument person, occasionally as a party chief, and most recently as operations manager Bell in the Anchorage office. Bell has a Bachelor of Arts in Psychology from Alaska Pacific University and a Master of Science in Psychology, also from Alaska Pacific University. Kyle Griffiths, the new Chief Financial Officer, brings more than ten years of experience in financial services in Oregon and Alaska. Griffiths has a Bachelor of Science in Business Administration from Portland State University and a Master of Science in Business Administration with a con- Griffiths centration in Finance from the University of Memphis. Chris Burt, PE, has been promoted to Chief Technology Officer. Burt has served more than eighteen years with the company in many different roles including office technician, civil engineer, and 3D laser scanning manager. Burt is also in charge of managing the engineering department and Burt leading the firm in all platting projects within the state of Alaska.

Northrim Bank

James Beasley was promoted to VP, Electronic Banking Manager. Beasley has been with Northrim for almost one year and brings nearly eleven years of electronic banking experience. He holds a bachelor’s degree from Texas Christian University and an MBA from Texas A&M Beasley University – Commerce. Jennifer Ludden was promoted to AVP, Business Electronic Banking Manager. She has been with Northrim for two years and has thirteen years in the financial industry. Prior to moving to Alaska, she worked at Bank of America in a variety of positions starting as a teller and working her way to management. Ludden Ludden holds a bachelor’s degree in Architecture from the University of Arizona. Yana Milette was promoted to AVP, Consumer Electronic Banking Manager. Milette started at Northrim in December 2015 and brings ten years of finance experience including eight years at local credit unions. She holds an MBA with an Milette emphasis in Management from UAA. Nate Olmstead was promoted to VP, Data Analytics Manager. He has been with Northrim since November 2015 and has twelve years of experience within IT and data analysis. Olmstead has held multiple certifications for Information Technology and currently holds a Project Olmstead Management Professional certification. Northrim hired Kari Skinner as a new VP, Marketing and Communications Director. Skinner joins Northrim with more than fifteen years of sales and marketing experience, most recently with Simon Property Group as a director of marketing and business development. She holds an Skinner MBA from the University of Utah. Northrim also hired VP, Commercial Real Estate Loan Officer John Damjanovich who comes to Northrim with more than twenty-seven years of experience in the financial sector. He was most recently the CFO for an electronics manufacturer in Minnesota. Damjanovich holds Damjanovich a Bachelor of Science in Business Administration and Finance from Bemidji State University.

Alutiiq Museum

The Alutiiq Museum hired Jeffrey Garcie as its Development Assistant, a new staff position. Garcie will split his time between being a representative to the Digital Inclusion Corps and community engagement. His duties will include stewardship of the museum’s Garcie members and sponsors as well administrative support for development work and daily business.

UBS Financial Services

Cameron Barrows recently joined UBS as a Wealth Planning Associate. Barrows will assist a UBS Financial Advisor in the Anchorage branch to construct comprehensive financial plans for their clients to deliver holistic financial advice to their high net worth houseBarrows holds. Barrows has five years of experience in the financial services industry. He received his undergraduate degree from UAA and his MBA from APU.

Peak Oilfield Service Company

Bristol Bay Industrial announced that Craig Crawford has been named President and CEO of its subsidiary Peak Oilfield Service Company LLC. Crawford has more than thirty years of experience leading and managing companies and business units in the Crawford oil and gas, refinery, petrochemical, and mining industries in the United States. He holds a Bachelor in Business Management from North Carolina State University and is the board chair for the Alaska Process Industry Careers Consortium.

Professional Growth Systems

Professional Growth Systems is excited to welcome John Gregoire. He earned a Bachelor of Arts in Interdisciplinary Studies from UAA focusing on Small Group Communication Psychology and then a Master of Education in Student Development Administration from Seattle University. Gregoire’s partnering Gregoire with Professional Growth Systems will offer a broader mix of tools to his clients as well as bring state-of-the-art training tools to the Professional Growth Systems toolbox. R

Lumber. Siding. Insulation. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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Inside

Alaska Business May 2017

FIRM 49

rooke Sandoval-Banker, previously the director of Marketing for Jack White Real Estate, has launched FIRM 49, a digital marketing company created to assist Alaska businesses looking to make the shift from traditional marketing to digital through the implementation of digital platforms. firm49.com

MUNICIPALITY OF ANCHORAGE

he Anchorage Parks and Recreation Department announced a process to update the master plan for Town Square Park. The new master plan provides a twenty year vision for Town Square Park, seeking to address community issues and concerns and identify strategies to ensure the park is a safe and thriving public space for all. Advisory groups and public workshops will address issues such as park safety, evaluating and understanding design and usage, analyzing the role of programming in civic space, and revisiting how Town Square Park fits into the long-term fabric of downtown Anchorage. Members of the public can apply online to participate as part of the Citizens Advisory Group or the Technical Advisory Group. muni.org

ALASKA REGIONAL

laska Regional and The Jason Foundation, Inc. partnered to designate a JFI Affiliate Office dedicated to increasing awareness and prevention of youth suicide. The office at the hospital in Anchorage offers free educational materials and training programs to parents, teachers, students, churches, and other community organizations. The “Promise for Tomorrow” curriculum is intended for students in 7th through 12th grades as a part of school health or wellness classes.

Compiled by Tasha Anderson

An especially useful resource for this particular age group is a smart-phone app called “A Friend Asks.” The free app provides information, tools, and resources designed to help users offer support to friends or family who are showing signs of struggling with thoughts of suicide. JFI also offers programs for parents and other adults to address youth suicide by providing strategies for awareness and prevention. alaskaregional.com

FUGRO

ugro announced a partnership with the Shell Ocean Discovery XPRIZE to support firstround testing of the global, three-year competition, which incentivizes development of rapid, unmanned, high resolution ocean mapping technologies. Fugro’s role is to provide high resolution deepwater baseline bathymetry data over a 500 km² competition area. The company collects more than 1 million km² of high resolution bathymetry data per year globally, predominantly in water depths greater than 750 meters. Capitalizing on its deepwater survey expertise, Fugro will acquire seafloor data using stateof-the-art techniques and equipment, including a deepwater autonomous underwater vehicle (AUV) equipped with sonar-based survey systems. This information will be used to groundtruth the work of twenty-one semi-finalist teams advancing to Round 1 of the competition.

ALUTIIQ MUSEUM

ore than half a century after they were taken from Chirikof Island, human remains representing at least 109 Alutiiq people have been returned to the Kodiak region. The US Fish & Wildlife Service transferred the remains to the Alutiiq

Museum, Kodiak’s tribal repository, as a step in their repatriation to the Alutiiq community. The remains were collected in 1962 by physical anthropologists and were largely from the Russian Orthodox cemetery in the historic village of Ukamak, about one hundred miles south of Kodiak Island. Since their collection, the human remains have been held by two universities, the University of Wisconsin Milwaukee and Indian University at Bloomington. During this time they were subject to research without the knowledge or consent of the Alutiiq community. The return to the Kodiak region represents the culmination of years of work by the Fish & Wildlife Service, Alutiiq Museum, and Sun’aq Tribe, and an important step in closing a painful chapter in Alutiiq history. alutiiqmuseum.org

VIGOR

igor was recently awarded a contract to build two, all-aluminum, 400-passenger ferries for Water Emergency Transportation Authority (WETA) in San Francisco. The hulls will be constructed at Vigor Ballard and the superstructure at Vigor’s Harbor Island shipyard. Designed by Incat Crowther, Australia, the 135-foot by 38-foot, catamarans will feature MTU 12V4000 M64 EPA Tier III engines rated 1875 BHP @ 1800 RPM coupled with ZF7600 reduction gears as the propulsion system. An exhaust after treatment system will also be included on the ferries. vigor.net

ALASKA DELEGATION

ince 1990, Roll Call has published its Congressional Clout Index—a biennial analysis that ranks a state’s clout in comparison to its

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population. The newest Roll Call Clout Index, released in February, puts Alaska’s Congressional delegation atop the list as the nation’s top performer. According to the study, Alaska ranks 15 spots higher (33) than its population ranking (48) —making it pound for pound the most powerful congressional delegation relative to its representation in Congress. rollcall.com

CLARE SWAN EARLY HEAD START CENTER

esponding to the needs of Anchorage’s working families, the new Clare Swan Early Head Start Center, which opened March 1, provides eligible Alaska Native and American Indian families a safe and supportive learning environment for comprehensive early childhood development and childcare services for children six weeks to three years of age. The full-time childcare center serves more than seventy infants and toddlers and their families for up to ten hours per day, year-round. Located in the former Kogi restaurant at 800 Northway Drive in East Anchorage, the Clare Swan Center operates through a partnership between Cook Inlet Tribal Council and Anchorage Vineyard Family Resource Center. A nine-month renovation transformed the former restaurant space into a new childcare and development center. citci.org

CHUGACH ELECTRIC BOARD

he Chugach Electric Association’s Board of Directors formally adopted the Triple Bottom Line as its new business management philosophy to emphasize sustainability in the operations of the member-owned cooperative. Triple Bottom Line is a method of evaluating a business’s performance using economic, social, and environmental measures. The Chugach board adopted the resolution at its meeting on February 21. chugachelectric.com

TRILOGY METALS

rilogy Metals Inc. is pleased to announce that the permitting process is advancing on the Ambler Mining District Industrial Access Project (AMDIAP). The Notice of Intent initiating the permitting process under the National Environmental Policy Act for the preparation of an EIS on AMDIAP was published on February 28, 2017, by the Bureau of Land Management in the US Federal Register. The Notice of Intent states that the various federal and state agencies

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intend to prepare an EIS for federal authorization to construct and operate an approximately 211mile long industrial access road in the southern Brooks Range foothills of Alaska, originating at the Dalton Highway and ending at the Ambler River, providing access to the Ambler Mining District. BLM announced the beginning of the EIS scoping process to solicit public comments and identify issues. It also intends to coordinate the development of the EIS with the National Park Service, which is in accordance with the Alaska National Interest Lands Conservation Act. NPS is developing a separate environmental and economic analysis solely for the purpose of determining the most desirable route for the portion of the proposed road right-of-way that would cross the Gates of the Arctic National Preserve. trilogymetals.com

MATANUSKA VALLEY FEDERAL CREDIT UNION

he Matanuska Valley Federal Credit Union (MVFCU) introduced, for the first time in Alaska, Interactive Teller Machines designed to give their members a more personal ATM experience. This unique technology allows MVFCU members to interact on demand with a centrally located MVFCU teller via high-quality audio and video. The teller is able to fully remote drive all the modules on the ATM to deliver the same kind of service that members have come to expect from in-branch transactions. The new Interactive Teller Machine service, dubbed “Live ATM” by MVFCU, offers members the benefit of performing most transactions usually handled by a brick and mortar lobby teller at more remote locations and with expanded hours—with no ATM card required. MVFCU installed Live ATM at their Palmer and Wasilla locations with plans to expand to more remote locations with longer business hours in the near future. mvfcu.coop

WORLD TRADE CENTER ANCHORAGE

orld Trade Center Anchorage, for most of its thirty-year history, has been located in the core downtown area, close to major hotels, convention centers, and local, state, and federal offices. As of March 1, they returned to their downtown roots at the new address of 507 E Street, Suite 213. Phone numbers, email, and website addresses remain the same. wtcak.org

NATIONAL PARK SERVICE

laska’s national parks hosted a record 2.78 million visits in 2016, the National Park Service’s Centennial year. That figure tops the previous record set in 2015 by about 100,000. The five most visited parks in 2016 remained unchanged from previous years: Klondike Gold Rush National Historical Park (912,351); Denali National Park (587,412); Glacier Bay National Park (520,171); Kenai Fjords National Park (346,534); and Sitka National Historical Park (217,141). nps.gov/Alaska

ALASKA CLUB

n March, The Alaska Club unveiled its new facility, Studio at The Alaska Club, formerly known as the Jewel Lake Express Club. The second floor is now home to a 1,600-square-foot hot yoga studio featuring a state-of-the-art heat and humidifying system, sound system, and yoga instructors who teach a uniquely developed style of yoga that strengthens and empowers attendees. In addition to the new hot yoga studio, the first floor of Studio at the Alaska Club received a complete renovation, which includes a functional training area, new strength and free-weight equipment, upgraded full-body strength training circuit, and new cardiovascular equipment. The new studio, located at 3841 West Dimond Boulevard, continues to offer 24-hour access to cardio and weight training seven days a week. thealaskaclub.com

ALASKA DEPARTMENT OF NATURAL RESOURCES

new online reservation system for Alaska State Parks public use cabins debuted April 1—the first step in a process of enabling reservations for Alaska State Park facilities on the nationwide Reserve America website. ReserveAmerica.com is used by thirty-one state park systems as well as two federal agencies—the US Forest Service and US Fish & Wildlife Service—to provide reservations for cabins, campgrounds, and other facilities. Alaska State Parks anticipates that its campgrounds and other facilities will be added to ReserveAmerica.com later this year. reserveamerica.com

GREAT ALASKAN HOLIDAYS | AKONTHEGO

reat Alaskan Holidays announced a teaming agreement with Erin Kirkland and AKontheGO. Together the two are launching a series of RV

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INSIDE ALASKA BUSINESS travel-related broadcasts through a variety of outreach channels. By traveling throughout Alaska in one of Great Alaskan Holiday’s premium RVs, AKontheGO intends to increase awareness of family RV travel within the state, enhancing social media, marketing, and public relations opportunities via statewide mobile platforms for both organizations. rvak.com | akonthego.com

TITLE WAVE BOOKS

ngela Libal, the long-time manager of Title Wave Books in Spenard, has a new role at the nearly twenty-seven-year-old bookstore—owner. Libal saw an opportunity when Title Wave’s founders, Steve Lloyd and Julie Drake, decided to retire after almost three decades in retail. A lifelong Alaskan, Libal joined Title Wave as a bookseller nearly twenty years ago and has managed the store since 2008. She plans to downsize the store somewhat while remaining open for business. Since 1996, Title Wave has made its home in Spenard, a neighborhood known for its eclectic blend of mostly locally-owned, independent, hip retail stores and restaurants. wavebooks.com

ORANGETHEORY FITNESS

rangetheory Fitness, a personal training, interval fitness franchise that is sweeping the nation, is opening its first studio in Alaska. The new studio is located at 35 West 104th Avenue. Led by highly skilled coaches, Orangetheory Fitness workouts incorporate endurance, strength, and power elements through a variety of equipment including treadmills, rowing machines, TRX suspension training, and free weights. orangetheoryfitness.com

ALASKA STATE LEGISLATURE

ecognizing the importance of ingenuity and creativity in building a strong economy, members of the Alaska State Legislature have formed a caucus centered on moving Alaska’s economy forward through innovation. The Alaska Innovation Caucus (AKIC) will foster a culture of entrepreneurship and support small business development across the state. The National Bureau of Economic Research shows that net job creation is driven by business start-ups and innovation is a central driver of high-growth startups, allowing companies to form around new products and services. The caucus will research and discuss policy op-

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tions including encouraging growth of globally competitive startups and greater access to venture capital; how to simplify and help startups navigate, regulatory frameworks within the state; support development of startup mentorship networks; and support entrepreneurship in schools and universities, including encouraging technology transfer and commercialization. akleg.gov

PICK.CLICK.GIVE

espite an uncertain state economy and a new Permanent Fund Dividend model, Alaskans have once again proven their generosity by pledging $2.7 million to 668 Alaskan nonprofit organizations. Of Alaskans who filed for a Permanent Fund Dividend, 4.8 percent elected to give through the Pick.Click.Give. Charitable Giving program, demonstrating that Alaskans continue to give to the causes they care about in their local communities and across the state. The Alaska Department of Revenue reports that 26,128 Alaskans made 44,136 individual charitable gifts totaling $2,702,450 from their 2017 PFDs. Although this a slight decrease from record years in 2015 and 2016, Alaskan generosity continues to shine in challenging times. pickclickgive.org

AIDEA

he Alaska Industrial Development and Export Authority (AIDEA) Board approved a loan participation to a family-owned Southeast Alaska marine tour company that provides whale watching and wildlife tours and overnight cruises. The loan, to Allen Marine, Inc. of Sitka, is for $12,077,867 (56.2 percent) of a $21,490,866 loan brought to AIDEA by Northrim Bank. Northrim originated the loan and is participating with $9,412,999. The loan’s purpose is for refinancing and debt consolidation. aidea.org

TRAVEL JUNEAU

s part of its new brand rollout, Travel Juneau launched a new version of its official organization website, TravelJuneau.com in March. TravelJuneau.com provides a fresh look for Travel Juneau’s extensive resources for business, adventure, and leisure travelers looking to visit Alaska’s state capital. The new website features streamlined navigation, allowing for a more enjoyable user experience; an updated search engine; a new events section that provides details on upcoming events

in Juneau; promotional features; and Travel Juneau’s increased ability to share the latest and greatest information on a moment’s notice with visitors to the website. The website complements the Travel Juneau app launched in 2016 that provides TravelJuneau.com’s travel resources at the fingertips of residents and visitors alike. traveljuneau.com

SEARHC | AICS

outhEast Alaska Regional Health Consortium (SEARHC) and Alaska Island Community Services (AICS) announced the official start of their merger in April, after more than a year of discussions about delivering sustainable and improved healthcare services for Wrangell and surrounding communities. SEARHC’s commitments under the merger include the promise of serving all patients; assuming the property tax obligation the AICS clinic site; and establishing a local advisory council to provide feedback and information to SEARHC’s governing board regarding operations of AICS’ programs and services. Additionally, a percentage of surplus funds from operations will be set aside for communitydesignated health priorities. The newly-created Walker Foundation will manage and disseminate these resources. As a division of SEARHC, AICS’ programs and services will continue benefiting patients and residents. Consistent with the healthcare delivery arrangements between AICS and Wrangell Medical Center (WMC), SEARHC will provide physician and provider coverage for WMC as well as part-time pharmacy coverage; behavioral health consultation services; bio-medical services; and information technology services. In turn, WMC will provide SEARHC patients treated at the AICS clinic with radiology, laboratory, and rehabilitation services, as well as handle biowaste services at the AICS clinic. Search.org | akics.org R

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Business Events MAY

MAY

Partner Connect Series: Collaboration & Mobility

Business Technology Center, Anchorage: Create a business experience that’s as unique as Alaska. Empower your employees with the ability to work outside the office. Enjoy lunch at the Alaska Communications Partner Connect Series and engage with technology that takes your business to the next level. alaskacommunications.com/pcMay2017

MAY

ASME Boiler Code Week

Hilton Anchorage and Egan Center: The Boiler Code Week is a forum for business leaders and policymakers to discuss high profile topics related to the ASME Boiler and Pressure Vessel Code concerning the design, fabrication, and inspection of boilers, pressure vessels, and nuclear power plant technologies. asme.org

7-12

MAY

Alaska Bar Convention

Centennial Hall Convention Center, Juneau: This conference provides opportunities to complete CLE requirements as well as an opening reception, several luncheons, and an awards reception and dinner. alaskabar.org

10-12 MAY

11-13

Alaska VFW Annual State Convention

Millennium Alaskan Hotel, Anchorage: The annual convention includes a Joint Memorial Service, VFW Business Session, guest banquets, and other events. alaskavfw.org

MAY

12-14

Marine Firefighting Symposium for Land-Based Firefighters

Homer: This three-day conference is an industry-recognized effort to provide the best available marine firefighting information and practices to shore-based firefighters, using both classroom and field experiences, hosted by Prince William Sound Regional Citizens’ Advisory Council and Cook Inlet Regional Citizens’ Advisory Council. pwsrcac.org

Compiled by Tasha Anderson MAY

Alaska State HR Conference

Anchorage Hilton: The 2017 Conference theme is HR Mission Possible featuring keynote speakers Neal Fried, Economist Extraordinaire with the Alaska Department of Labor, and Al Bolea, the founder and architect of the Applied Leadership Seminar. alaska.shrm.org/conference

18-19

MAY

ACUL Annual Meeting

Sitka: The Alaska Credit Union League’s annual meeting is an opportunity to gather, network, and learn. alaskacreditunions.org/events.html

18-20 MAY

ADS Annual Meeting

MAY

Alaska Oil & Gas Association

Best Western Inn & Convention Center: The annual meeting of the Alaska Dental Society, which is “Committed to enhancing the dental profession and the health of all Alaskans.” akdental.org

27-28

Dena’ina Center, Anchorage: AOGA hosts a one-day conference focused on industry trends, legal and scientific issues surrounding development, and national and state-level energy policies and politics. aoga.org

JUNE

JUN

IRWA Education Conference

Dena’ina Center, Anchorage: This is the International Right of Way Association’s 63rd Annual International Education Conference, providing educational and learning opportunities as well as networking events. irwaonline.org

11-14 JUN

15-19

Mining History Association Annual Conference

University of Fairbanks: The Mining History Association is an organization of individuals interested in the history of mining and metallurgy. Members include independent scholars, laypersons, college and university professors, historians, miners, geologists, retired mining industry personnel, and many others. mininghistoryassociation.org

JUN

19-23

7th Annual Nuka System of Care Conference

Nuka Wellness and Learning Center, Anchorage: The general conference presents Southcentral Foundation’s developed and proven content on organizational strategies and processes; integrated medical, behavioral, and traditional practices; and supporting infrastructure. Discover new insights, learn from relevant experiences, and obtain guidance from Southcentral Foundation’s award-winning system. southcentralfoundation.com

WASHTO 2017

JUN

Centennial Hall Convention Center, Juneau: WASHTO 2017 ALASKA will be attended by State Department of Transportation CEOs, chief engineers, and executive leadership from the eighteen westernmost states in the country, as well as executives from the US Department of Transportation and Federal Highways Administration. washto.org/default.asp

25-28

JULY Alaska Business Week

JUL

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

15-22

AUGUST

AUG

AML Winter Legislative Meeting

Haines: The Alaska Municipal League is a voluntary, nonprofit, non-partisan, statewide organization of 162 cities, boroughs, and unified municipalities, representing more than 97 percent of Alaska’s residents. akml.org

15-17

SEPTEMBER In-bound Marketing Summit SEPT Alaska AIMS is a gathering of business owners,

marketing agencies, nonprofits, content writers, web developers, bloggers, and more. It includes speakers and workshops to educate the business community on marketing skills and building connections. alaskainbound.com R

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PEDAL POWER

EAT

SHOP

Bicycles I

n Anchorage alone, there are 120-plus miles of paved bike and multi-use trails, according to the Parks and Recreation Department of the Municipality of Anchorage. Beyond the paved trails, there are 105 miles of maintained ski trails and innumerable trails appropriate for mountain biking in and around the city. No matter your skill level, Anchorage has a trail waiting to be explored. All that biking is supported by Alaska’s many biking stores, which offer a range of products, services, and purchasing and rental options.

The Bicycle Shop With two locations, one at 1035 West Northern Lights Boulevard and one at 1801 West Dimond Boulevard, The Bicycle Shop offers repair services, including flat tires, basic tune-ups, custom wheel building, and bike boxing, in addition to sales of new and used bikes. bikeshopak.com Trek Bicycle Store Anchorage Located at 530 East Benson Boulevard, Unit 9C, Trek offers daily bike rental, bike repair and mobile bike repair services, as well as custom bike fittings, and cycling accessories. trekstorealaska.com

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Chain Reaction Cycles Located at 12201 Industry Way, Unit 2, Chain Reaction Cycles provides bike repair and service as well as bike fitting. The shop rents and sells bicycles and related products. chainreactionalaska.com

Speedway Cycles Located at 1231 West Northern Lights Boulevard, Speedway Cycles provides bicycles, including Fatback fattire bikes, and service such as tune-ups, maintenance, and installations. speedwaycyclesak.com

Paramount Cycles Located at 1320 Huffman Park Drive, and in addition to cycling clothing and shoes, Paramount Cycles is a full-service bike shop and sells bicycles, including mountain bikes, road bikes, and fattire bikes for winter (or summer) cycling. paramountcyclesak.com

Pablo’s Bicycle Rentals Located at 501 L Street Downtown, Pablo’s offers rentals of bikes and bicycle accessories, including bikes for every age from toddlers to adults. Rentals are hourly and include a lock, repair kit, helmet, and area map. pablobicyclerentals.com

Downtown Bicycle Rental, Inc. Located at 333 West Fourth Avenue, Downtown Bicycle Rental offers bike rentals at hourly, daily, and weekly rates. Rates include a lock, helmet, maps and directions, trip suggestions, panniers, and repair kits. Downtown Bicycle Rentals also rents car bike racks and clip-in pedals and shoes. alaska-bike-rentals.com Off the Chain A community bike collective and a low-cost, volunteer-run 501(c)(3) located at 1406 West 33rd Avenue, Unit D, Off the Chain provides classes and information on bicycle ridership, awareness, and safety. They also carry an inventory of refurbished bicycles, used parts, and basic new parts. During shop hours, Off the Chain is open to the public and provides access to tools, a library, and advice from volunteer mechanics. offthechainak.org

Alaska Business | May 2017 www.akbizmag.com

SHOP

Anchorage MAY

Great Alaska Aviation Gathering

6-7 Now in its 20th season, this is Alaska’s premier must-see aviation event with more than 23,000 attendees, including pilots and aviation enthusiasts. Alaska is the “flyingest” state in the union with more pilots and aircraft per capita than anywhere else in the world. greatalaskaaviationgathering.org MAY-JUN

Erma Bombeck: At Wit’s End

11-4 A one-woman show illuminates and celebrates the life of Erma Bombeck. Heartwarming and funny, and a loving tribute to the famous and beloved humorist, Erma captures the frustrations of generations of women struggling with home, family, and women’s freedoms, asking “If Life is a Bowl of Cherries, What am I Doing in the Pits?” Cyranos.org Anchorage

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presentations, community events, and many more activities fun for all ages. copperriverdeltashorebirdfestival.com

MAY

Alaska Visitor Industry Charity Walk

Homer MAY

Kachemak Bay Shorebird Festival

11-14 More than 130 bird species migrate to Kachemak Bay. Sandhill cranes, Arctic and Aleutian terns, Pacific bolden-plover, bristle-thighed curlew, horned puffins, and red-necked stint are only a few bird species visitors might see. The festival includes fun and educational activities for any level of birder and all ages. homeralaska.org

MAY

The Alaska Native Heritage Center celebrates mothers and the opening day of its 2017 summer season. Enjoy live performances, village site tours, and free admission at the Alaska Native Heritage Center. alaskanative.net

Whistle Down the Wind

Ride AWAIC is a local motorcycle ride to benefit Abused Women’s Aid in Crisis, Alaska’s largest domestic violence safe shelter and resource center, made possible by the Diamond Girls Motorcycle Club. www.awaic.org/events/ride-awaic

Whistle Down The Wind, with music by Andrew Lloyd Webber and lyrics by Jim Steinman, will be performed by the JDHS Theatre Department in collaboration with the Alaska Youth Choir. An extraordinary tale about the transforming power of love, Whistle Down the Wind, tells a touching story of innocence of children colliding with the cynicism of the adult world. traveljuneau.com

Cordova

Ketchikan

MAY

Ride AWAIC

MAY

Copper River Delta Shorebird Festival

4-7 This week-long festival is a great experience and a wonderful sight to see. As many as 5 million shorebirds rest and feed in Cordova during the spring migration. There are opportunities for bird watching, hiking, www.akbizmag.com

11-13

MAY

Taikai Con

This is the second annual Taikai Con, a convention to celebrate pop-culture, art, cinema, music, and literature, organized by nonprofit Taikai Corporation and taking place at the Glenn Massay Theater.

Start at any participating location and enjoy a wonderful spring evening of art and live music by The Defibulators. ketchikanarts.org

River float trip complete with local birding experts, there is something at this bird festival for every interest. kenaiwatershed.org/events

Kodiak

Valdez

Kodiak Crab Festival

MAY

Fest is a time for the 25-29 Crab community to celebrate the abundant resources that we receive from the sea. Activities include good food games, a parade, vendors, and more. kodiakchamber.org

Juneau Maritime Festival

This is a one-day familyfriendly event showcasing many facets of Juneau’s maritime history, commerce, and culture, including a helicopter rescue demonstration, great seafood, activities for kids, informational and sales booths, and songs and stories for all ages. There’s also a Maritime Marinade contest, food vendors, and a beer garden. traveljuneau.com MAY

MAY

Juneau Jazz & Classics

Jazz & Classics 3-18 Juneau celebrates its 27th annual festival with sixteen days of soullifting, blues-chasing, live music with concerts, workshops, cruises, and free events all over town. This year’s roster will bring Arlo Guthrie, the Grace Kelly quintet, and more. jazzandclassics.org

Wasilla

The Visitor Industry Charity Walk celebrates this commitment to giving through a fun, festive community event that raises money for nonprofit agencies throughout Alaska. Since the first walk in 2000, more than $1 million has been distributed to Alaska charities. The walk takes place in Anchorage on May 13. alaskacharitywalk.org

MAY

Mother’s Day Celebration and Opening Day

STAY

Fairbanks

Juneau

MAY

Compiled by Tasha Anderson

MAY

climbing enthusiasts 27-28 Rock meet to climb in Keystone Canyon and other locations around Valdez. Rock climbing takes place during the day with other festival activities at night. valdezalaska.org

Petersburg MAY

Wasilla

Little Norway Festival

festival celebrates 18-22 This the signing of Norway’s

Soldotna Kenai Peninsula Birding Festival

MAY

California Suite

California Suite is a humorous Neil Simon play that examines the lives of people with varied back grounds and from different locales that all visit the same hotel suite in swanky Beverly Hills: Hannah, a New York magazine writer; Marvin, a conservative middle-aged businessman from Philadelphia; British star and Academy Award nominee, Diana; and two couples from Chicago at the tail-end of a disastrous vacation they should not have shared. valleyperformingarts.org R

5-28

constitution in 1848, the coming of spring, the beginning of the fishing season, and US Armed Forces Day. petersburg.org

MAY

Rock Climbing Festival

18-21 With a variety of low-cost or free activities including kids’ activities, guided birding excursions, social events, and not-to-be missed Kenai

Valdez

Celebration of the Sea Art Walk

5 Celebrate art and the start of a new season at the Arts Council’s 17th Annual Celebration of the Sea Art Walk. Guests will enjoy new art pieces by local artists, music, and refreshments.

MAY

Valdez Fly-In and Air Show

is the premier bush flying event in Alaska and includes 12-14 This airplane rides, static displays, local vendors and concessions, the Poker Run, a Flour Bombing, and the STOL competition. valdezflyin.com May 2017 | Alaska Business

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EVENTS CALENDAR MAY 2017

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ALASKA TRENDS

Long History of Fluctuation

Total Jobs

Other 10% Financial 4% Health Care 10%

Total Wages

Oil Trade, Trans, and and Gas Utilities 4% 6% Construction 5% 4% Manufacturing

Financial 4%

Government 24%

Trade, Trans, and Utilities 8%

Oil and Gas 11%

Construction 8%

Information 2%

Manufacturing 4% Retail 6% Leisure and Professional/ Hospitality Business 4% Services 10%

Government 24%

Leisure and Hospitality 10% Professional/ Business Services 9%

Other 8%

Health Care 10%

Retail 11%

Information 2%

Note: Residents only

Direct oil industry jobs represented 4 percent of all wage and salary employment for Alaska residents in 2015. Oil is a relatively small employer, but it carries a big punch. Because average earnings in the oil industry are more than two-and-a-half times the overall average, they represented 11 percent of the state’s total wages in 2015, at $2 billion. Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section

82%

Job Growth by Alaska Industry, 2005 to 2015

57%

In addition to the oil industry reaching record employment levels during the past decade, it was the second-fastestgrowing industry in the state. That hadn’t happened since the 1970s.

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www.amarinecorp.com 120

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• ROV Services • Vessel Support Services

Alaska Business | May 2017 www.akbizmag.com

Information

Construction

-5%

ALASKA TRENDS IS BROUGHT TO YOU BY AMERICAN MARINE/PENCO

-9%

Financial Services

1% Government

-5%

Retail Trade

Transportation and Utilities

10% All Employment

Leisure and Hospitality

Professional and Business Svcs

Health Care

Oil and Gas

11% Manufacturing

13%

26%

34%

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section

Other Mining

luctuation is nothing new for Alaska oil industry employment, which has waxed and waned for decades. Prior to the most recent job loss, the industry had been on a decade-long growth trend—and that was preceded by a fifteenyear decline. Unlike the current contraction, however, Alaska’s total job count continued to grow during those years. The state’s oil production peaked in 1988, and the industry reached a high of 10,700 jobs in 1991. It wouldn’t break that 10,000 barrier again until 2006, though. With an extended period of low oil prices, the industry lost 2,200 jobs between 1991 and 1997. Then in 2001, employment spiked, reaching a ten-year high with the development of the Alpine and North Star oil fields before falling that same year and hovering at the 8,000 level again through 2004. By that point, Alaska’s oil industry appeared to be entering a permanent era of stagnation or enduring decline. But four years of aboveaverage oil prices—which by 2005 were more than double the 2001 low—breathed new life into the industry, which began to grow again with work on West Sak, maintenance in Prudhoe Bay, and continued development of a number of satellite fields. In early 2006, a section of BP’s pipeline sprung a leak, resulting in hundreds of millions of dollars spent on repairs. Record oil prices also ushered in a long list of new players and new projects, such as Pioneer Natural Resources and ENI’s Oooguruk and Nikaitchuq off-shore prospects. Other major players fueled further activity and growth, including big investments by ConocoPhillips, Shell’s massive offshore drilling efforts, and Exxon’s Point Thompson undertaking to ship gas condensate. Relative newcomers such as Hilcorp led a big upswing in activity in Alaska’s oldest oil and gas province, Cook Inlet. R

Oil Industry a Small Slice of Jobs, Bigger Share of Wages Alaska’s Industry Mix, 2015

Compiled by Alaska Business Staff All oil and gas

ANS Crude Oil Production

$139,704

Oil and gas extraction

$222,588

Oilfield services

$106,023

Mining (nonoil)

$108,192

01/01/2014

$87,408

Utilities Construction

Alaska Average Annual Wages by Industry, 2015

$81,312

Information

$64,488

Prof/Business Services

$63,156

Transportation and Warehousing

$62,472

Health Care

$55,831

Government

$55,716

Financial Industry

$54,912

Statewide Average

In 2015, annual average earnings for the industry were more than 2.5 times higher than the statewide average. The average for oil and gas extraction, which includes direct producers, was considerably higher than for oilﬁeld services companies.

$54,192

Manufacturing

$47,268

Retail Trade

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section

$30,684

Social Assistance

$28,920

Leisure and Hospitality

04/09/2017 10/01/2015 05/01/2015 09/01/2012 05/01/2011 01/01/2010 09/01/2008 05/01/2007 01/01/2006

ANS Production per barrel per day 566,682 Apr. 9, 2017

09/01/2004 05/01/2003 01/01/2002 09/01/2000

0 400,000 800,000 1,200,000 SOURCE: Alaska Department of Revenue Tax Division

$23,124

ANS West Coast Crude Oil Prices 580

456

422

Feb

Mar

03/31/2017

2016

172

Jan

Apr

2015

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

09/01/2014 Feb

Mar

Apr

May

Jun

09/01/2012

-245 -635

Over-The-Year Change in Oil Industry Jobs

-876

09/01/2010 -997

-1,019

09/01/2008

-1,322 -1,909

09/01/2006

-1,742

-2,095 The most recent numbers for oil and gas employment show the industry started to shed jobs in May of 2015 and losses gained momentum in 2016. It’s unclear how long this trend will continue, as oil prices will play a critical role.

-2,027

ANS West Coast $ per barrel $52.71 Mar. 31, 2017

09/01/2004

-2,139 -2,711

-2,594

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section

09/01/2002 -3,164

09/01/2000 $0

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

Oil Industry Earnings and Workers By Borough or Census Area of Residency, 2015 Even though most of the industry’s jobs are concentrated in three areas, its resident workforce comes from nearly every part of the state. A prime example is the Matanuska-Susitna Borough, which has neither oil industry employment nor production. However, in 2015, 2,713 Mat-Su residents worked in the industry and earned $281 million. That figure is especially significant considering Mat-Su’s locally generated payroll was just $906 million. In 2015, 8 percent of workers living in Mat-Su commuted to the North Slope. Note: Only areas with five or more workers are disclosable. Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section

Anchorage Municipality Matanuska-Susitna Borough Kenai Peninsula Borough Fairbanks North Star Borough Valdez-Cordova Census Area Yukon-Koyukuk Census Area North Slope Borough Southeast Fairbanks Census Area Juneau, City and Borough Prince of Wales-Hyder Census Area Kodiak Island Borough Denali Borough Northwest Arctic Borough Dillingham Census Area Haines Borough Lake and Peninsula Borough Sitka, City and Borough Bethel Census Area Hoonah-Angoon Census Area Ketchikan Gateway Borough

Workers Earnings Avg Earnings 5,121 $716,159,556 $139,848 2,713 $281,270,012 $103,675 2,536 $276,596,446 $109,068 855 $74,742,553 $87,418 153 $13,142,920 $85,901 70 $5,327,880 $76,113 58 $2,424,665 $41,805 57 $5,019,637 $88,064 17 $1,471,406 $86,553 15 $926,456 $61,764 14 $1,075,089 $76,792 13 $1,152,808 $88,678 13 $407,513 $31,347 12 $584,924 $48,744 12 $564,444 $47,037 10 $597,593 $59,759 7 $1,072,165 $153,166 6 $290,190 $48,365 5 $332,040 $66,408 5 $577,844 $115,569

Statewide Employment Figures 10/1976—2/2017 Seasonally Adjusted 02/31/2017 11/01/2012 01/01/2010 03/01/2007 05/01/2004 07/01/2001 09/01/1998

Labor Force 362,688 Feb. 2017 Employment 339,388 Feb. 2017 Unemployment 6.4% Feb. 2017

11/01/1995 01/01/1993 03/01/1990 05/01/1987 07/01/1984 09/01/1981 11/01/1978 01/01/1976 0 100,000 200,000 300,000 400,000 SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section; and US BLS

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ADVERTISERS INDEX Acrisure LLC...............................................................26 Advanced Physical Therapy of Alaska..........63 AE Solutions Alaska LLC.......................................82 AECOM..........................................................................87 Afognak Leasing LLC.............................................25 AK USA Federal Credit Union............................15 Alaska Crane LTD.....................................................72 Alaska Dreams Inc...............................................103 Alaska Gasline Development Corp.................73 Alaska Logistics.....................................................110 Alaska Rubber & Rigging Supply.....................89 Alaska Satellite Internet (ASI)............................42 All American Oifield Services............................84 ALSCO...........................................................................35 American Marine / Penco....................120, 121 Arctic Catering & Support Services.............107 Arctic Chiropractic..............................................118 Arctic Office Products..........................................49 ASRC Energy..............................................................48 AT&T..................................................................................9 Avis Rent-A-Car........................................................45 BDO.............................................................................102 BP ..................................................................................75

Business Insurance Associates Inc.................52 C & R Pipe and Steel Inc.......................................89 Calista Corp...............................................................59 Carlile Transportation Systems.........................17 Certek Heating Solutions.................................104 CH2M..........................................................................105 CIRI...............................................................................117 Conrad-Houston Insurance Agency..............23 Construction Machinery Industrial...................2 Cruz Companies...................................................101 CRW Engineering Group, LLC...........................57 Delta Leasing LLC....................................................47 Dowland-Bach Corp..............................................97 Doyon Limited..........................................................67 EDC Inc........................................................................25 Equipment Source Inc.............................................3 Fairweather LLC.....................................................111 First National Bank Alaska.....................................5 Foss Maritime............................................................83 Fountainhead Hotels.............................................85 GCI...............................................................................124 Global Diving & Salvage Inc..............................88 Judy Patrick Photography...............................122

K2 Dronotics..............................................................78 Land’s End Resort...................................................83 Landye Bennett Blumstein LLP.........................24 Lynden Inc..................................................................33 Matheson Tri-Gas....................................................72 Mechanical Contractors of Fairbanks...........53 Microcom....................................................................43 N C Machinery..........................................................95 Nana Regional Corp................................................71 New Horizons Telecom Inc................................21 Nortech Environmental & Engineering........56 Northern Air Cargo.................................112, 113 Northrim Bank..........................................................19 NRC Alaska..............................................................106 Olympic Tug & Barge............................................86 Pacific Coast Maritime..........................................86 Pacific Pile & Marine...................114, 115, 116 Pacific Tugboat Service.......................................88 Parker Smith & Feek...............................................91 PenAir...........................................................................46 PND Engineers Inc..................................................85 Quintillion Networks.............................................99 Ravn Alaska................................................................13

Ritchie Brothers Auctioneers............................68 Seatac Marine Service...........................................65 Span Alaska Transportation LLC......................27 Stellar Designs Inc...............................................118 Thompson Metal Fab.............................................69 Trihydro Alaska.........................................................86 Tutka, LLC...................................................................82 Udelhoven Oilfield System Services Inc......32 Ukpeagvik Inupiat Corporation...23, 24, 37 United Way of Anchorage....................................11 University of Alaska Anchorage.......................55 Verizon.........................................................................41 Vigor Alaska...............................................................65 Visit Anchorage........................................................93 Voice of the Arctic Inupiat...............................123 Washington Crane & Hoist...............................100 Waste Management National Services.........87 Wells Fargo Bank Alaska......................................29 West-Mark Service Center...................................71 Westmark Hotels - HAP Alaska..........................51 World Trade Center Anchorage.......................64 Yukon Equipment Inc............................................84

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