MAY 2010 by Alaska Business

Small Businesspersons of the Year | Southcentral Regional Review

MAY 2010

$3.95

Special Section Oil and Gas Alaskaâ&#x20AC;&#x2122;s Prize Page 76

Building Alaska Special Construction Section Page 54

Executive Retreats Get Away From it All Page 48 Colleen Starring President Enstar Natural Gas

Pat Galvin Commissioner of Revenue Alaska Department of Revenue

M AY 2 0 1 0 TA B L E O F C O N T E N T S

ABOUT THE COVER

D E PA R T M E N T S From the Editor . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . 8 Events Calendar . . . . . . . . . . . . 42 Market Squares . . . . . . . . . . . . . 73 Right Moves . . . . . . . . . . . . . . . . 74 Alaska Trends . . . . . . . . . . . . . . 119 Ad Index . . . . . . . . . . . . . . . . . . 122

Enstar Natural Gas President Colleen Starring and Alaska Department of Revenue Commissioner Pat Galvin play key roles in Alaska’s oil and gas industry. ABM’s annual Oil & Gas Special Section begins on page 76. Cover photo by Judy Patrick.

R E G U L A R F E AT U R E S

VIEW FROM

THE

ARTICLES

TOP

INSURANCE

Heather Knowlan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Federal Resource Solutions. By Peg Stomierowski.

Business Inurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Risk management requirement. By Peg Stomierowski.

REGIONAL REVIEW Southcentral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Alaska’s most populated region. By Tracy Barbour.

LEGAL SPEAK Campaign Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Newfound corporate power. By Jeff Waller.

ALASKA THIS MONTH Birds, Visitors Flock to Homer . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Shorebird festival features boat tours, beach walks. By Nancy Pounds. Photo courtesy of U.S. Fish and Wildlife Service

PAGE Photo by Gaylord Spurgeon, GZS Photography

GOVERNMENT Public-Sector Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Government and military stabilize economy. By Vanessa Orr.

LEADERSHIP Teens Serving Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Alaskan youth receive top honors, learn lessons in leadership. By Lauren Heyano. PAGE

Alaska House, New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Multi-use approach for art and culture. By Heidi Bohi.

TOURISM

HR MATTERS Workplace Bullies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Countering job nightmares. By Lynne Curry.

ART

Executive Board Retreats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Many options for Alaska getaways. By Peg Stomierowski.

www.akbizmag.com • Alaska Business Monthly • May 2010

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M AY 2 0 1 0 TA B L E O F C O N T E N T S ARTICLES

ARTICLES

SPECIAL SECTION: OIL & GAS OPINION The All Alaska Gas Hub. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Let’s empower Alaska. By Bob Poe. Great Oil Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 What do Alaskans want? By Heidi Bohi.

PAGE

Photo courtesy of Donna and Kevin Maltz

SPECIAL SECTION: SMALL BUSINESS Donna and Kevin Maltz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Small Businesspersons of the Year. By Peg Stomierowski. Chic Fashion Boutiques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 A growing Anchorage market. By Meghan McCausland. Small Business Ideas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Entrepreneurs take note. By Sam Dickey. Fort Wainwright Warrior in Transition complex.

PAGE Image courtesy of Tetra Tech and kpb architects

SPECIAL SECTION: BUILDING ALASKA ATCO Opens Anchorage Office . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Alaska presence key to company growth. By Gail West. Construction Industry Legal Issues . . . . . . . . . . . . . . . . . . . . . . . 56 Storm water biggest issue facing state. By David Duffy. Alaska Construction Academies . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Programs train youth, adults across Alaska. By Gail West. Summer Construction Bonus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Defense and stimulus money means more projects. By Heidi Bohi.

PAGE

84 Alaska Oil O and Gas G Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Legislature reluctant to lower taxes. By Mike Bradner. Alaska Business Monthly’s 2010 Oil & Gas Directory . . . . . . . . . 96 CORRECTION In the February 2010 HR Matters column, additional information is needed to clarify a point about random drug testing in the work force. Alaska law allows private employers the right to test employees; however, the Alaska Supreme Court has ruled State, municipality and city employees are protected against employer random drug tests by the State constitution.

www.akbizmag.com • Alaska Business Monthly • May 2010

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ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., P.O. Box 241288, Anchorage, Alaska 99524; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2010, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues $3.95 each; $4.95 for October. Back issues $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, P.O. Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change. Manuscripts: Send query letter or manuscripts to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Monthly is prohibited. Address requests for specific permission to the Editor, Alaska Business Monthly. Online: Alaska Business Monthly is available online from Data Courier and online from Thomson Gale. Microfilm: Alaska Business Monthly is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

DITOR

Alaska fares better than Lower 48 counterparts.

Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF

THE

Providence ‘Generations’ Project Fuels Economy

Volume 26, Number 5 Published by Alaska Business Publishing Co. Anchorage, Alaska

Managing Editor Associate Editor Art Director Art Production Graphic Design

n early March, I, along with a handful or two of other journalists, stood in the foyer of the Providence Health Park Lobby in the Healing Arts Alcove while looking out on acres of spruce and birch and snow-covered mountains awaiting a big announcement about major campus expansion at Providence Alaska Medical Center called Generations, named in recognition of the Providence commitment to care for generations of Alaskans. Generations, a $150.3 million project, will expand and modernize the newborn intensive care unit (quadrupling its size), as well as prenatal and mother-baby and labor and delivery units. It also will expand the cardiac surgery program (using the first hybrid technology in the state), as well as renovate other areas of the hospital. That is provided the State approves its certificate of need, which was filed in late February and is hoped to be granted by the end of summer. The 86,000-square-foot construction project, which includes a new building, and 101,000-square-foot remodel project, is three times the size of any construction work done in the last 11 years at the hospital, and should provide hundreds of construction jobs in various trades to the community over the lifetime of the project.

WORK FOR ALASKANS

The architectural firm designing the project is ZGF out of Seattle, which has extensive experience in health care, according to Kirsten Schultz Brogan with Providence. RIM Architects, a local firm, will be working on the project with ZGF. And additional local involvement from others is expected as the project progresses. Design work should begin in the fall and construction beginning in January 2011, lasting through December 2014. A general contractor has not been selected, as of mid-March.

FIFTY-SEVEN PERCENT GROWTH IN HOSPITAL CONSTRUCTION SPENDING

This is good news for Alaskans and good news for the construction industry. In the Alaska Construction Spending 2010 Forecast, put together by staff at the Institute of Social and Economic Research at the University of Alaska for the Construction Industry Progress Fund and the Associated General Contractors of Alaska, hospitals showed a growth of nearly 60 percent in Alaska construction spending for the year, by far the largest percentage of construction growth cited for both private and public sectors. Total hospital construction spending was estimated to be $221 million in 2010, and included upgrades to Providence, as well as new hospitals in Nome and Barrow. These figures do not reflect the Generations project construction dollars, as construction will not begin this year.

BETTER OFF THAN THE LOWER 48, BY FAR

Ironically, days after the announcement of Generations, the Associated Builders and Contractors Inc., nationally, put out a Construction Economic Update that showed nonresidential construction suffered more job losses, nationwide. Since February 2009, the report stated, the nonresidential building construction sector lost more than 101,700 jobs. Nationwide, the outlook for construction employment looked and remained “bleak” the report stated. Alaskans are lucky. This project will be a boon to Anchorage, a boon to Alaska and a boon to the construction workers in the state. This is great news in a time of economic uncertainty. – Debbie Cutler Managing Editor

www.akbizmag.com • Alaska Business Monthly • May 2010

INSIDE ALASKA BUSINESS Company Inks Deal With United Airlines

orthern Air Aviation Services was chosen to provide groundhandling services for United Airlines at Ted Stevens Anchorage International Airport beginning this month. The company planned to hire up to 90 seasonal workers beginning this spring. NAAS is a division of Northern Air Cargo. NAAS will work with United Airlines to provide passenger checkin, baggage handling, ramp control and related operational services. NAAS provides year-round and seasonal support for several airlines in Anchorage, including American Airlines, Air Canada and Frontier Airlines. NAAS expects to handle nearly 800 flights between May and September. “We are looking forward to expanding our services at the airport through supporting United’s return to the market,” said company spokeswoman Margot Wiegele. In other company news, Northern Air Cargo has renewed its agreement with Teck Alaska Inc. to provide air freight service to Red Dog Mine. NAC will provide at least one scheduled weekly direct flight from Anchorage to Red Dog Mine with a Boeing 737-200 all-cargo aircraft.

Gustavus Inn Earns Award

ustavus Inn at Glacier Bay was chosen an “America’s Classic” by the James Beard Foundation of New York. The honor is a first for Alaska, inn officials said.

The award recognizes restaurants that have high-quality food and reflect the character of their community. The award for Gustavus Inn is in the Pacific Northwest category. Gustavus Inn is a red-roofed farmhouse inn and restaurant featuring ingredients from its garden and fresh Alaska seafood, including Dungeness crab, salmon and halibut. Dave and JoAnn Lesh were invited to accept the award at New York City’s Lincoln Center in May. Gustavus Inn at Glacier Bay was founded in 1965 by Dave’s parents Jack and Sally Lesh. JoAnn and Dave Lesh have owned it since 1980. The inn hosts visitors to Glacier Bay National Park in a renovated, historic homestead, serving 30 guests three meals daily in the summer.

Businessman Earns Design Patent

nchorage entrepreneur Courtney Larsen was awarded a fourth design patent for his line, Eternally Classic Jewelry. The award, presented in December 2009, caps nearly three years of effort to secure rights to his design. The wedding ring design symbolizes two pairs of hands clasped in marriage. Ten pairs of parallel lines represent the 10 intertwined fingers of each spouse. Larsen designed his own wedding band in 2005 and found a jeweler to manufacture it. Larsen used architectural design principles he acquired while studying to earn a bachelor’s degree from the University of Utah. He also used 3-D computer-aided

COMPILED BY NANCY POUNDS design techniques – skills learned as an architectural and engineering technology student at the University of Alaska Anchorage. He started a business in 2006 selling Eternally Classic Jewelry. The company has developed since then, adding a Web site, offering variations on the initial design, gaining private-investor funding and reaching partnerships with complimentary businesses.

Kenai Wal-Mart Supercenter Opens

he new 236,161-square-foot Kenai Wal-Mart is expected to add 370 jobs to the area before its grand opening March 31. Eighty percent of the positions were to be filled by fulltime workers. The store is located at the corner of Kenai Spur Highway and Marathon Road, 10096 Kenai Spur Highway in Kenai, and expects to stock about 142,000 items. Construction was completed in early 2010. The new retailer will sell a full line of groceries and other merchandise.

Hospital Earns Designation

he Alaska Native Medical Center trauma center was re-verified as a Level II Trauma Center by the American College of Surgeons earlier this year. ANMC is Alaska’s only designated Level II trauma center. The hospital staff and doctors fulfilled certain requirements to secure the certification. For example, a trauma center must have emergency doctors on hand at all times and surgeons on

www.akbizmag.com • Alaska Business Monthly • May 2010

INSIDE ALASKA BUSINESS call and available within 15 minutes. While the majority of ANMC’s services are reserved for beneficiaries of the Indian Health Service, the trauma center serves all people, regardless of race. Seriously injured non-Alaska Native trauma patients may be taken to ANMC, if they are injured closest to ANMC or they need services unavailable at other facilities.

Wind Farm on Web

nalakleet Valley Electric Cooperative completed installation of a 600-kilowatt, six-turbine, windpower unit and launched a Web cam for Alaskans to monitor its energy production. Visit the site at: http:// northernpower.kiosk-view.com/unalakleet. The wind farm began operating in November 2009, and the Web portal was added this year. The wind-power turbine is one of the first projects implemented through funding from the State’s Renewable Energy Fund, a $250 million grant program designed to support renewable energy projects that help reduce the cost of energy for Alaskans. The Alaska Energy Authority oversees the Alaska’s Renewable Energy Fund Program, which provided a $4 million grant for the Unalakleet project. The Norton Sound Economic Development Corp., the Commercial Development Quota organization serving Alaska’s Bering Strait region, and the Unalakleet Native Corp. also helped finance the project. UVEC’s wind farm was developed and built by Anchorage-based STG Inc. last summer. The project is expected

to deliver 1.5 million kilowatt-hours of wind-generated electricity to UVEC annually, approximately 35 percent of the electricity needs for the community. The six-turbine array is connected into UVEC’s existing distribution system and the utility’s diesel-powered generation facilities. The project had produced enough electricity by mid-February to save approximately 21,000 gallons of diesel fuel for the Unalakleet memberowned cooperative. “Like most all rural Alaska utilities, we have seen a dramatic increase in the delivered price of our primary fuel source, diesel, over the past five years,” said UVEC General Manager Ike Towarak. “The wind installation will help us be better prepared to manage ongoing operational costs at the utility. This results in direct benefits for our members by making it possible to pass along cost savings to UVEC’s rate-payers.”

Alaska Air Adds Inflight Internet Service

laska Airlines will offer Aircell’s Gogo Inflight Internet service on its aircraft. The company began installing the Gogo service on a Boeing 737-800 in February. Alaska Airlines was testing the system as part of the process to secure certification from the Federal Aviation Administration. The airline planned to begin outfitting its entire fleet with the Internet system, beginning with the long-range 737-800s, upon obtaining certification.

Alaska Airlines passengers will be able to browse the Web, access online music and games, and check e-mail. The Gogo system is currently available in the Lower 48. Aircell agreed to expand its network to provide Gogo service to Alaska as part of its agreement with the airline. The service will be available starting at $4.95, based on flight length and device used. Last year Alaska Airlines successfully tested a satellite-based inflight wi-fi service offered by Row 44. However, the airline chose Aircell’s Gogo service to speed fleet-wide installation and wi-fi availability for customers.

NMS Earns National Ranking

ANA Management Services was ranked 41 in DiversityBusiness. com’s annual Div500, the 10th annual listing of the nation’s top 500 diversity-owned businesses. The award is based on the company’s business performance, annual gross revenue and status as a diversityowned business. NMS is owned by NANA Development Corp., a subsidiary of NANA Regional Corp., and Sodexo. It marks the second consecutive year NMS has received the honor. Other Alaska companies in the list include Ahtna Technical Services at 68 and Kanaak Corp. at 110. The Div500 is a classification that represents the top 500 diversityowned (women, Blacks, Hispanics, Asians, Native American and other minority groups) businesses in the U.S., in sectors such as technology, manufacturing, food service and

www.akbizmag.com • Alaska Business Monthly • May 2010

INSIDE ALASKA BUSINESS professional services. The Div500 is produced annually by DiversityBusiness.com, a multicultural B2B Internet portal linking large organizational buyers to multicultural product and service businesses. Diversity Business is a membershipbased exchange platform that facilitates contacts and communication, supplier diversity tools, streamlines business processes and provides vital business news and information.

Contractor Lands Corps Project

he U.S. Army Corps of Engineers Alaska District awarded a $31.9 million contract to Knik Construction Co. Inc. to build a boat harbor in Akutan. The Anchorage company will build two rock breakwaters to create an entrance channel and mooring basin. Knik Construction will obtain, deliver and place rock for the breakwaters. The project is expected to be finished in September 2012. Akutan, an island in the Aleutian Chain, is one of the five top U.S. commercial fishing ports with crabbers, trawlers, smaller vessels and skiffs drawn to the fishprocessing industry there. However, Akutan lacks protected moorage for its fishing fleet despite strong waves in typical weather. Federal funding of $28.6 million came from the American Recovery and Reinvestment Act. Aleutians East Borough provided $3.27 million. Corps officials said about $59 million of federal ARRA funds have been awarded to contractors for work in Akutan, Seward Harbor, Anchorage Harbor and Cordova Harbor.

UAA Center Gains National Grant

he National Institutes of Health awarded a two-year, $1.2 million grant to the University of Alaska Anchorage Center Addressing Health Disparities through Research and Education. The award from the National Center for Minority Health and Health Disparities creates the first NIH-funded Center of Excellence on UAA’s campus. The funding will help the center support its existing programs and hire new employees. The center also aims to work with the Anchorage School District to implement its new Health Career Academy. Center officials also hope to develop a program for students looking for graduate-level health professional careers

BLM Honors Science Center Friends

he Friends of Campbell Creek Science Center received the Bureau of Land Management Public Lands Partnership Excellence award. The award honors the group for its support of BLM interpretative, educational and public outreach programs. The group was founded in 2005. It has supported the BLM-Alaska’s Campbell Creek Science Center by partnering with 100 local businesses, organizations and residents to raise $150,000, plus $56,000 worth of donations from area businesses. Funds raised provide craft supplies for class learning activities, refreshments at public evening lecture series, morning bird walks, and major annual

COMPILED BY NANCY POUNDS special events, such as Winter Trails Day, Outdoor Week, National Trails Day and National Public Lands Day. The group has developed newsletters, print and radio ads and other publicity materials. Group officials report visitation rose from 38,000 in 2005 to 57,000 in 2009.

GeoNorth Finishes SNC Web Site

eoNorth LLC of Anchorage completed design of a Web site for Sitnasauk Native Corp., the village corporation based in Nome. The Web site is www.snc.org. SNC operates a home-heating fuel-delivery service and a real estate venture with residential and commercial buildings. SNC owns six professional and technical service companies in the Lower 48. SNC owns and operates a wind generation farm with co-owner Bering Straits Native Corp. GeoNorth’s project for SNC marks its continuing development of its Web design and development effort. GeoNorth has previously emphasized its geographic information system application development. ❑ Inside Alaska Business If you want to be included in Inside Alaska Business, space availability, please send press releases to editor@ akbizmag.com. Press releases should be kept to one page, and include contact information and photos, if available. Most press releases are also posted on our Web site, www.akbizmag.com. Check the Web site daily for new news and government releases.

www.akbizmag.com • Alaska Business Monthly • May 2010

VIEW FROM THE TOP

Heather Knowlan Federal Resource Solutions BY PEG STOMIEROWSKI

ABM: How’s the view from the top at FRS? How do you see your role and future? Knowlan: Things look exciting. FRS is enabling small- to medium-sized companies to build a larger market share in federal contracts. Our team is able to eliminate aging account receivables because we focus on payment in real time not 30, 60 or 90 days after payment was due. ABM: What gave you the idea of leveraging your expertise this way? Knowlan: After working with DoD contracts and invoicing, I learned very quickly the government agencies

involved in payment do not communicate. Most owners of small- to mediumsized businesses do not have time or resources for learning the invoicing systems. We fill a niche market, and our services make a dramatic difference. ABM: What’s the problem behind sluggish payment? Knowlan: Reliable cash flow is key for businesses; especially in today’s economy, lines-of-credit or quick loans do not come easily. FRS is able to navigate these federal invoicing systems to ensure fast processing. Many companies are intimidated by horror stories they’ve heard about delayed government payments. Our clients have spent a lot of time landing federal contracts, and when they are unable to rely on regular payment, performance suffers and growth is discouraged. ABM: What types of businesses are impacted the most? Knowlan: All businesses are impacted by delayed accounts receivables. But small- to medium-sized companies have to get really creative if their accounts payable and accounts receivables get out of balance. ABM: What are FRS’s primary strengths, weaknesses, opportunities and threats? Knowlan: Besides offering a proven model for outsourcing services like payroll, accounting or medical billing, a key strength is experience. Outsourcing federal invoicing is a newer concept, and educating owners about our availability and capabilities has been a challenge. The opportunities to provide invoicing services are numerous, and FRS’s services are scalable. ABM: Is the simplicity of your function ever an impediment in and of itself? Knowlan: Simplicity of federal invoicing is relative and differs by business.

Photo courtesy of Federal Resource Solutions

eather Knowlan is owner of Federal Resource Solutions (FRS), with offices in Anchorage and Escondido, Calif. The firm provides invoicing services and reporting tools for federal contractors. Knowlan, who has a bachelor’s degree in business management, has worked in insurance, finance and Department of Defense (DoD) contracting. Since 2002, she has been volunteer co-coordinator for the Alaska Run for Women, which benefits breast cancer programs. Many, but not all, FRS clients are new to the world of government contracting. “Our sole purpose,” Knowlan says, “is to significantly improve the profitability of our clients’ businesses.” FRS, which has enjoyed steady growth since it was started in 2007, expects substantial growth in 2010. In this challenging economy, Knowlan says, many companies are “right sizing” their work forces, and outsourcing to FRS is an economical way to benefit from expertise. Electronic invoicing is being mandated for all DoD contracts, she added, and FRS has provided training to the Anchorage Procurement Technical Assistance Center team.

Heather Knowlan

Many firms lack the resources to spend precious time learning systems and employing a resource to ensure timely payment. Some are comfortable, for example, preparing payroll in house, while others prefer to outsource so they can focus on their core functions. Outsourcing to FRS eliminates costly cash-flow interruptions, for instance, when in-house billing resources take a leave. Our team of professionals provide follow-up, research, reporting and key discussions involved with keeping a company’s government account receivables running smoothly. We are experienced in the systems and in working with contracting officers and representatives of the Defense Finance Accounting Service and the Defense Contract Audit Agency. ABM: What keeps companies from outsourcing? Knowlan: Business owners are typically doers and innovators. There are many reasons why they decide not to outsource. However, many come to realize that outsourcing can be very economical, as well as conducive to maintaining greater focus and peace of mind. ❑

www.akbizmag.com • Alaska Business Monthly • May 2010

INSURANCE

Photo by Gaylord Spurgeon, GZS Photography

The Business Insurance Associates team, (from left) Timothy W. Gibson, Susan R. Coates, Angela M. Pobieglo, Christopher Pobieglo and Geoffrey S. Willis.

Business Insurance Risk management requirement. BY PEG STOMIEROWSKI

n a prolonged recession, with companies still laying people off and the best of employees, irregardless of raises or promotions, praying to hang onto their jobs, insurance managers warn that liability claims tend to rise, and it’s a bad time for businesses to be lax or unprotected. Thirty-five percent of private companies in the United States have been hit with employment practices claims in the last five years, according to

promotions sponsored by Business Insurance Associates in Anchorage. Employers lose 70 percent of court cases, the firm reports, and the average compensatory damage award for claims in 2007 exceeded $625,000.

BUSINESS INSURANCE Yet many small business owners, Business Insurance Associates managers said, fail to insure for these and other risks. Like their employees, they may

feel that what’s happening all around them won’t happen to them. With some 20,000 agents licensed to write insurance in Alaska, and a limited pooling of providers, owners should interview a few brokers or agents for someone they feel they can trust, then seek quotes for types of coverage, said Angela M. Pobieglo of Business Insurance Associates. The most common – and essential – is commercial general liability insurance.

www.akbizmag.com • Alaska Business Monthly • May 2010

Smith & “ Parker, Feek understands the complexity of our company and excels, in coordination with our employee benefits team, at providing outstanding service to our employees.

“

Melanie Osborne, In House Counsel Ahtna, Incorporated

Parker, Pa P ark rker, rke er, Smith er Smit Sm ith & Feek ith Fee Fe ek k combines co om mb biiine ne n es a collaborative coll co lla ab bo orrat ative iivve te te team ea am a am approach ppro pp roac ach to ach to client clliie en nt service sse errvvic ice with with h 73 73 years ye ear ars of e of experience xper xp eriie en enc nce to to create cre reat ate lasting lla ast s iin ng value v lu va lue for for businesses fo bu b ussiine ess sse sses ess lliik like ke eA Ahtna, htna, ht na n a, Incorporated. In nco corp orrp p po orra or ated ate at ed. That’s Th T ha ha att’’ss why why hy over o ove er 97% 97 9 7% of our of our ur clients cli lien nts ts retain ret etai ain our ou o ur firm firm year fir yye ea arr after aft fter er year. ye ea ar. r.

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Insuring a business is essential to protecting one’s assets, say Angela and husband Christopher L. Pobieglo. Owners who lack insurance may figure they don’t have that much to lose if they declare bankruptcy and walk away. But they could lose everything in court, the Pobieglos say – if for no reason other than having to defend themselves. Even fighting the most frivolous lawsuit, they observed, can be expensive and result in lost time and morale. The agency works mainly with contractors, architects and surveyors, commercial property owners, restaurants, nonprofits and retail stores, and their client list is no accident. Restaurants and contractors tend to fail at a higher rate than most businesses, they said, and those businesses’ workers’ compensation rates alone can be astronomical. . Besides, Angela said, some fabulous food artisans may not be good at running the business side of a dining establishment, even in good times. Others may not be good at networking and behind-the-scenes roles, and may not know whom to call for help when they need it. Lack of this kind of business

acumen, she said, is one of the primary reasons why businesses fail. For small home-based businesses, the Pobieglos recommend consulting with one’s homeowner’s agent to see whether coverage could be added to the policy. “If you’re running a bookkeeping operation, you might be okay,” Christopher said. “If you’ve turned your living room into a nightclub, probably not.”

RISK MANAGEMENT In general, they observed, employers can be sued for a variety of exposures, from property damage to customer injury, defamation, sexual harassment or discrimination. While they don’t deny insurance sales tend to be fear-driven, they are enthusiastic about educating owners on the litigious nature of our society. Often, they said, insurance coverage turns out to be a fairly reasonable piece of the risk-management puzzle. Under the liability umbrella, for instance, a business owner might want to consider employment practices coverage. Essentially, Angela said, this is designed to protect the owner and

managers from claims related to discrimination, sexual harassment, promotion practices and termination. Even if a business owner is doing many of the right things in attempting to manage risk exposure – for example, using employee handbooks, requiring diversity training and training employees on inappropriate behavior the owner still could be liable for inappropriate actions of managers. For a typical small business, Christopher said, coverage could run $500 to $3,000 annually. Risk management refers to identifying and analyzing risk exposures, planning and implementing strategies, including commercial insurance, and reviewing the process, he explained. Ideally, he added, insurance is an afterthought to fully considering the probability of riskexposure occurrences and severity, and so a way of transferring some risks to planned coverage programs. While a person may choose to carry certain risks – and many enterprises indeed have risk exposures impossible or too expensive to transfer through insurance – in some cases, Business Insurance Associates managers said, the cost of

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insurance versus uninsured claims makes coverage worth considering.

POLICY OFFERINGS Following are some of the different types of insurance coverage a business might want to consider, starting with liability and auto, the two Angela considers most important for someone starting out. Liability – in the Pobieglos eyes, everyone needs basic liability coverage, which is designed to protect against accidents and injuries. A general liability policy protects members of the general public against the operations of the business, Angela explained, but as the owner, your assets won’t be on the line unless someone concludes that you did something wrong.

carry auto insurance in your personal name, but the business then has risk exposure for your business driving activities, Angela said; even if your business doesn’t own a vehicle, you should have business-use coverage. Workers’ compensation insurance – required under Alaska law, she said, so long as you have a single employee; and if you incorporate, the state regards you as an employee (while if you are a sole proprietor, a limited liability company or a partnership, it may not). This insurance is designed to pay medical expenses and lost wages for workers hurt on the job. Coverage costs may depend on industry risks. While a medium-size retail outlet may pay $10,000 a year for workers’ comp coverage, for a

if something happens to that person, the business receives funds to recruit and train a replacement. Christopher said businesses with multiple owners often arrange buy-sell agreements funded this way to allow for surviving owner or owners to collect as beneficiaries and buy-out ownership shares from the deceased’s spouse and/or family. Business interruption insurance – tied to property insurance, this covers expenses if you are shut down by fire or disaster. To Angela, it’s one of the least understood but more important types of business insurance sold. If, as in the case of many contractors, your business isn’t tied to a single place, it may not be the best idea, but otherwise there’s no reason to be without

Bonding – while insurance generally constitutes a two-party agreement (insured and insurer), bonding involves a third party as well (principal party, surety party and the obligee). Since bonding is meant to cover for occurrences that are within a person’s control, and underwriting is based on a zero-loss philosophy, it requires an indemnity agreement. General liability coverage may range from $150 a year for a small business to millions a year for a contractor; typically, they said, a small business may expect to pay $1,000 to $2,000 a year. For the most part, Christopher added, insurance premiums, which are based on payroll or gross receipts, reflect business volume and risk exposure. In addition, many practitioners in fields such as architecture or design, accounting, law, medicine or real estate, carry professional liability coverage. This is designed to address errors and omissions, or claims related to advice or consultation, beyond what is covered in a general liability policy. In the case of nonprofits, Angela declines to sit on any agency board that doesn’t have insurance covering officers and directors; otherwise, she said, she could be held liable for board policies. Anyone sitting on a homeowners association board also could be vulnerable, she added for instance, if someone who felt the association wasn’t spending wisely decided to sue. Vehicle insurance – if you operate a vehicle, they said, you must have vehicle insurance in the same name the vehicle is titled in. If you have a business, but the vehicle is titled in a personal name, legally you have to

contractor that rate would be low; Angela said she has known contractors whose workers’ comp rates run as high as 65 percent of gross compensation. As for independent contractors, workers’ comp coverage doesn’t technically extend to them, Christopher said, and you should require any subcontractors or independent contractors working for or with you to provide evidence they have their own workers’ comp coverage. If you don’t, and they are hurt, that claim could make its way back to your workers’ comp policy, affecting your claims history and increasing future premiums. Always get certificates of insurance, he advises. Your workers’ comp carrier also is likely to treat any uninsured subcontractors as your employees, for audit purposes, and therefore you could incur unnecessary costs for insuring subcontractors or independent contractors. Property insurance – most business involves some type of tools or equipment. Even when you are working from home, your homeowner’s policy may not cover for things being used for business in the event of loss, theft or damage. Key manager insurance – this generally involves having life insurance on a key manager or employee so that

it, she said. The Poblieglo’s advise at least having coverage quoted so you can properly weigh the expense versus the risk. Bonding – while insurance generally constitutes a two-party agreement (insured and insurer), bonding involves a third party as well (principal party, surety party and the obligee). Since bonding is meant to cover for occurrences that are within a person’s control, and underwriting is based on a zero-loss philosophy, it requires an indemnity agreement. Surety requirements vary from state to state. Concert promoters, car dealers, notaries, post-secondary education schools and contractors all require surety bonds as a condition of being professionally licensed with the State of Alaska, Christopher said. There also are dozens of other commercial surety bonds, such as employee dishonesty, court bonds and U.S. custom bonds, he said – and none should be confused with contract surety bonds, which construction contractors may be required to post on commercial, State and federal contracts. School districts and other parties whose projects involve public funding generally seek contract surety bonds for projects worth more ❑ than $100,000.

www.akbizmag.com • Alaska Business Monthly • May 2010

GOVERNMENT

Public-Sector Employment Government and military stabilize economy.

Photo courtesy of Alaska Department of Labor and Workforce Development

BY VANESSA ORR

Neal Fried, economist, Alaska Department of Labor and Workforce Development.

fiscal health, and in Alaska’s case, other states would love to be in our fiscal position,” said Neal Fried, economist, Alaska Department of Labor and Workforce Development. “If you look at the employment count for government in Alaska, the public sector is larger than the national average. That, combined with the fact that oil prices remained relatively high, helped us to avoid hits like were felt in other parts of the country.” According to preliminary data for 2009, Alaska claimed 17,000 federal civilian workers last year; an increase of 100 jobs from the previous year. State government jobs numbered 25,400, which includes the university system, railroad, State institutions and State government. Local government employment, which includes school districts and city and borough government, equaled 41,800 jobs, an increase over 2008 by approximately 600 jobs. “All pieces of government grew a little last year in contrast with most of the rest of the economy,” said Fried. “In 2010, it looks like health care, social assistance and government will continue to grow, with federal government getting an extra boost from the 2010 census. It is projected that in 2010, overall, government will grow by 1 percent, similar to 2009.” While most of these jobs are located in Anchorage, Fairbanks and Juneau, Fried says local government exists everywhere. “School districts are very often the largest single employer in many communities,” he added. “It is not unusual in rural communities to have more government positions than private-sector jobs.”

for the 49th state, however, is that all levels of the public sector grew, helping the state to fare better than many states in the Lower 48. “State and local government numbers are often a reflection of an area’s

www.akbizmag.com • Alaska Business Monthly • May 2010

n a tough economy, jobs – or the lack of them – are a subject foremost in people’s minds. In Alaska, 2009 marked the first time in 21 years of growth that the state experienced a drop in employment. The good news

MILITARY COMPONENT One other factor affecting Alaska’s economic well being is the number of active duty personnel, or uniformed military, employed within the state. According to Fried, active duty personnel in 2009 equaled 23,191, including positions in the Coast Guard. “The employment numbers in Fairbanks and Anchorage skew a little differently because each area has two large military installations, which results in a disproportionate amount of military workers and civilian employees who work for the military,” he said. “Each area also has a large university, whose numbers are counted under State government.” For the past decade, the number of military positions has been expanding. “As a result of America’s actions in Iraq and Afghanistan, the numbers started to climb pretty substantially, which provided a boost to Alaska,” said Fried. “Military expansion is more important to Alaska than to other parts of the country because we have four large military installations and a number of smaller ones.”

FAIRBANKS While the number of government and military jobs plays a major role in the economic health of the state, the benefits of these positions are even more apparent at a local level. “Approximately 43 percent of jobs in Fairbanks are government jobs and 51 percent of wages paid in Fairbanks are government wages,” said Jim Dodson, president, Fairbanks Economic Development Corp. “This is a huge amount. In an isolated community, with the closest town of any size 360 miles away, it’s important for new dollars to come into the economy. Once they get here, they multiply to a degree, making the economic impact actually bigger than the original dollars spent. “For example, $6 billion comes into Fairbanks annually, with the military accounting for 20 percent of that. Other federal jobs account for another 10 percent, State government adds 4 percent, and the University of Alaska Fairbanks accounts for 6 percent. Once these dollars are multiplied, the number is actually closer to $14.3 billion, with the military responsible for 27 percent of that.”

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The city boasts approximately 31,700 “base” jobs, which, when multiplied, adds another 21,000 jobs for a total of 53,000 jobs. “Thirty percent of these jobs are military, 12 percent are federal government, 11 percent are State government and 7 percent are from the university,” Dodson said. He gives the example of construction jobs, which multiply as a result of work required on military bases. “Each base obviously has maintenance that needs to be done and new construction on post, which may require the hiring of people outside the base,” he said. As for future employment opportunities in Fairbanks, Dodson says he expects the economy will be affected by fewer federal dollars making their way into the state. “Employment in Alaska shrunk 6 per cent last year and is projected to shrink by 7 percent this year,” he said. “One of the things that’s happened is Sen. Ted Stevens brought tremendous amounts of federal dollars into the state during his tenure; you don’t see that now. We can’t expect our current delegation to match what he did. We’ve also seen a decline in oil production on the trans-Alaska oil pipeline by 6 percent a year, which means fewer dollars going into State government on average, depending on the price of oil.” In order to continue to benefit from both government and military jobs,

ANCHORAGE Anchorage is also committed to retaining government and military jobs. “If you look at the number of base closures across the country that have taken place in the last decade, you can see that we’ve worked hard to keep our bases open,” said Anchorage Mayor Dan Sullivan. “One thing that helped was when we received the designation to be a strategic military port. The military is able to load and unload equipment at our port, which helps in our efforts to maintain a military presence here. Expanding our infrastructure has been key.” In addition to working with Fort Richardson and Elmendorf Air Force Base, Anchorage has also encouraged federal, State and local government offices to remain and expand in the city. “We added a parking garage at the Atwood Building and both the IRS and the U.S. Forest Service are looking to lease new space in Anchorage,” Sullivan said. Millions of dollars have been spent revitalizing Ted Stevens Anchorage International Airport, which ranks second for cargo traffic in North America – fifth in the world. “The airport, which is a State facility, has a heck of an economic impact here,” said Sullivan. “It is estimated that one out of every eight jobs in Anchorage is related to the airport, ranging from logistics to warehousing to freight moving.”

Photo courtesy of Municipality of Anchorage, Mayor’s Office

Photo courtesy of Fairbanks Economic Development Corp.

Jim Dodson, president, Fairbanks Economic Development Corp.

the Fairbanks Economic Development Corp. works hard to protect the relationships they have. “We spend a lot of time interacting with the military on what their current missions are at Fort Wainwright and at Eielson Air Force Base,” Dodson said. “Because Alaska is a resource state, we also work with the mining industry and the forestry industry to help tap the area’s tremendous potential. We take the assets that we have, like the University of Alaska Fairbanks, which does $150 million in research a year, and we work with them to create new business opportunities and jobs centered around research. One result of this is the Cold Weather Testing Facility at UAF; we worked on this for several years and established Fairbanks as the most accessible, affordable place to do cold-weather testing in the U.S.”

Dan Sullivan, mayor, Municipality of Anchorage.

There are also a high number of jobs related to State government in Anchorage, most notably in the legislative arena. “Because we have the highest single contingent of legislators in the state, our Legislative Information Office is the state’s largest,” Sullivan said. While the opportunity to find a government job in Anchorage may be a draw to some people, Sullivan believes the bigger draw is the area itself. “Do these jobs bring people in? Maybe a little bit,” he said. “But I believe what attracts people is the fact that Anchorage is a beautiful place to live and has so many opportunities for recreation and employment. Good, highly trained people come up here for the lifestyle and for adventure and then find jobs.”

“Do these jobs bring people in? Maybe a little bit. But I believe what attracts people is the fact that Anchorage is a beautiful place to live and has so many opportunities for recreation and employment. Good, highly trained people come up here for the lifestyle and for adventure and then find jobs.” – Dan Sullivan Mayor Anchorage

www.akbizmag.com • Alaska Business Monthly • May 2010

JUNEAU As the capital city, it only make sense that State government positions contribute heavily to the bulk of jobs in Juneau. “Government employment is nearly 50 percent of the employee base in Juneau,” said Mayor Bruce Botelho. “There is also a major federal presence here because the U.S. Forest Service has its Alaska regional office in Juneau and the 17th Coast Guard District has its headquarters here.” City government, which is made up of a combined work force of the school district, city employees and ancillary services, numbers roughly 1,500 employees. The city manages the docks and harbors, airport and hospital. “We have, unfortunately, been outmigrating some government jobs, particularly in State employment,” Botelho said. “What was probably most dramatic was the decision to move the headquarters of the Alaska Marine Highway System to Ketchikan, resulting in the loss of about 46 employees. We also experienced a loss of federal presence in Juneau when the Bureau of

Indian Affairs moved their operations to Anchorage.” There has been growth in other areas, which has helped to offset the job losses, according to Botelho. “The opening of the Ted Stevens Marine Research Institute at Lena Point helped to increase the footprint of the National Marine Fisheries Service in Juneau,” he said. “The University of Alaska Southeast has also been expanding. Juneau is very active as a community in encouraging scientific research and the jobs that it brings. The Marine Research Institute is now the premier international research center on the North Pacific, performing cutting-edge studies on climate change and ocean acidification in support of U.S. interests in maintaining and growing commercial fisheries.” Botelho says $5 million for a new Forestry Sciences Laboratory in Juneau has been included in the first phase of the federal budget this year. Juneau remains focused on promoting itself and retaining its status as Alaska’s capital city and has undertaken several projects to this end. “In early April, the Thomas B.

Stewart Legislative Building was dedicated,” Botelho said. “It was the result of the city purchasing the Scottish Rite Temple and giving it to the State so legislators would have more room to work.” The city also made a former elementary school the primary headquarters for the Legislative Affairs Agency in an effort to facilitate and accommodate State government.

PUBLIC-SECTOR CAREERS As for who makes up all of these government and military positions, Fried says it would be easier to list those who are not included than those who are. “Government and military jobs cut across all career paths,” he said. “These employees are accountants, nurses, administrative assistants, carpenters, teachers, prison guards, railroad engineers, lawyers in the court system, FAA employees, forest rangers, firefighters and police officers, among others. Occupationally, they are representative of a very big piece of economy. Government employment is not an occupation; it’s an industry that represents a rich collection of occupations.” ❑

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REGIONAL REVIEW

A private room in the Level II/III Newborn Intensive Care Unit at Providence Alaska Medical Center.

Southcentral Alaska’s most populated region. BY TRACY BARBOUR

Anchorage at a Glance Population: Nearly 300,000 Government structure: Elected mayor and an 11-member assembly Key contacts: Mayor Dan Sullivan Main industries: Oil and gas, government, tourism, health care, fishing Tax base: Taxes on property, bed and cigarette/tobacco products Major Hospitals: Providence Alaska Medical Center, Alaska Native Medical Center, Alaska Regional Hospital Airport: Ted Stevens Anchorage International Airport Port: Port of Anchorage

outhcentral extends from Canada to the western shores of Cook Inlet and from the Alaska Range south to the Gulf of Alaska. It is a geographically diverse area, featuring rugged coastlines with prolific bays and fjords, national parks, agricultural lands, oil and natural gas fields, forests, glaciers, lakes and streams. Southcentral is home to about half of the state’s population, which is concentrated in the Municipality of Anchorage. South of Anchorage lies the Kenai Peninsula, with its popular communities of Seward, Soldotna, Kenai and Homer. To the north of Anchorage sits the Matanuska-Susitna Borough, which includes Palmer, Wasilla and Talkeetna. Other communities in the

region are Valdez, Cordova and Whittier, on the east and west sides of Prince William Sound. The Southcentral region has an abundance of wildlife, including black and brown bears, moose, Dall sheep, caribou, fox, lynx, wolves, coyotes and bald eagles. During the month of May, migratory birds such as trumpeter swans, loons, geese and ducks are a common sight. In Prince William Sound, humpback, killer and gray whales can be spotted, while beluga whales are more unique to Cook Inlet and Turnagain Arm. The relatively mild weather in Southcentral makes wildlife viewing a pleasant summertime experience. In the summer, there are clear skies and

www.akbizmag.com • Alaska Business Monthly • May 2010

As a testament to the local economy, Anchorage has been named the All-America City four times by the National Civic League and the most tax-friendly city in the United States by Kiplinger. And Alaska – due in great part to Anchorage – was recently cited as one of the healthiest places to live by BusinessWeek magazine. temperatures that reach the 70s. During winter, average temperatures range from 18 to 28 degrees Fahrenheit.

ANCHORAGE, THE ECONOMIC HUB OF THE REGION AND STATE Anchorage is the economic, transportation and medical hub for the Southcentral region and the entire state. With a population of more than 290,000, it encompasses more than 40 percent of the Alaska’s total population. (Only New York has a higher percentage of residents who live in the state’s largest city.) With its blend of urban amenities and nature, Anchorage is a special place, says Mayor Dan Sullivan, a fourthgeneration Alaskan. It offers breathtaking views of the Chugach Mountains and Sleeping Lady, as well as access to ample parks and open spaces. “We have more park land per capita than virtually any city in the nation,” Sullivan said. “We have world-class bike systems and enough green places where people don’t feel like they live in a big city.” Anchorage boasts an array of attractions to engage residents and visitors. It has three municipal facilities that host major concerts, trade shows and conventions: the Alaska Center for the Performing Arts, the William A. Egan Civic and Convention Center and the Dena’ina Civic and Convention Center. In terms of sporting events, the world-

famous Iditarod Trail Sled Dog Race kicks off its ceremonial start in downtown Anchorage on Fourth Avenue the first Saturday of March each year, and the Alaska Aces hockey team calls Anchorage home. Anchorage is also home to a variety of museums and other attractions, including the Anchorage Museum at Rasmuson Center, Alaska Museum of Natural History, Alaska Native Heritage Center, Alaska Zoo, Imaginarium: Science Discovery Center and Oscar Anderson House Museum.

ANCHORAGE ECONOMY FLAT Anchorage has a diverse economy with major industries, including oil and gas, government, construction, tourism, health care and the military. Anchorage serves as the headquarters of most of the oil industry and service-related companies, as well as the bulk of the major Native corporations. With the effects of the recession, Anchorage’s tourism is down slightly, Sullivan said. The same is true for air cargo traffic at the Ted Stevens Anchorage International Airport and activity at the Port of Anchorage. Still, the Anchorage Economic Development Corp. ranks the city’s economy as “flat.” “We’ll take flat any day over what some areas (in the Lower 48) have had to go through,” Sullivan said. One of Sullivan’s most pressing challenges is managing the city’s $420 million budget. Because of the decline in the national and worldwide economy, city revenues are down in a number of areas. On top of that, about 18 months ago, the city government dramatically increased its expenses by approving a labor contract and budget that were not sustainable, according to Sullivan. Tens of millions of dollars in shortfalls have led the city to face dramatic cuts in its budget. “Every city in the country has its own unique challenges,” Sullivan said. “We’re focused on restoring the fiscal health of the city.” Sullivan also is concerned about Anchorage’s supply of energy. With the Cook Inlet natural gas supply nearly depleted, the city is working on potential solutions. As a short-term initiative, Anchorage has developed an Energy Watch program to reduce gas consumption and avoid potential

equipment failures during extremely cold weather. Long-term possibilities for guaranteeing Anchorage’s future energy supply include hydroelectric, geothermal and wind energy. “The problem is, in our area, we’re cursed with too many choices, which can actually impede progress,” Sullivan said. “Each group thinks their project should get funded and moved forward.”

ANCHORAGE ECONOMY BETTER THAN MOST Although Anchorage’s economy has softened, it’s still probably a better place to live than most other places in the nation, said Alaska Department of Labor Economist Neal Fried. The oil industry, which has softened quite a bit, is doing pretty well. And health care, social assistance and government are growing. But the residential real estate market has slowed down, although it didn’t drop as much as in other parts of the country. “Unlike other places, we never had a big build-up of inventory, so we didn’t have a big overhang,” Fried said. Anchorage benefits from the growth that takes place almost everywhere else in the state. And as another positive, the city has a lot of federal government agencies and employees, and now the federal government is doing well. As a testament to the local economy, Anchorage has been named the All-America City four times by the National Civic League and the most tax-friendly city in the United States by Kiplinger. And Alaska – due in great part to Anchorage – was recently cited as one of the healthiest places to live by BusinessWeek magazine. Interestingly, Alaska has become a much more consumer-driven state, Fried said. For a long time, Alaska was underserved in many areas such as retail, health care and personal services. Now, that’s all changed. Consumers in places like Anchorage are less likely to go to Seattle for services or order from a catalog. “People are more likely to get their services locally,” he said. As another trend, more people are migrating to Anchorage from rural areas of the state, such as Dillingham, Barrow and Kotzebue, based on a report in the February 2010 Alaska Economic

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Trends. The movement from “Majority Native Areas” to Anchorage has increased steadily since 2004 to about 1,400 each year in the 2008-2009 period, according to the article written by State Demographer Gregory Williams with the Alaska Department of Labor and Workforce Development in Juneau. The total population movement – with people mostly under 35 years old – from the Majority Native Areas to Anchorage amounts to only 0.5 percent of Anchorage’s population annually. For the Majority Native Areas, though, the movement to Anchorage amounts to about 2 percent of those populations annually. In terms of unemployment, Anchorage had the second-lowest preliminary unemployment rate, behind the North Slope Borough, in the state for the month of December (the most current rate available). That rate was 7 percent, which is up considerably from 5.7 for the same period a year ago. However, it’s significantly lower than unemployment rates elsewhere. “I’m sure most of the country would love to see rates that low,” Fried said. For the first time, since the early ’80s, Anchorage’s unemployment rate has fallen below the national average. But that’s not terribly surprising to Fried, who says: “We are in a recession in a milder sense (than the Lower 48).” The labor market in Anchorage, as in many other places, has shifted over recent years, Fried said. Employers faced labor shortages several years ago; now they’re being swamped by applicants. It’s the same situation nationally. In fact, fewer Alaskans are leaving the state to look for work elsewhere, and more people are coming to Anchorage to find jobs. “What we can guess is that fewer people are leaving than normally because the grass has not been ‘greener’ elsewhere,” Fried said. “Anchorage has historically been greener than in other parts of the state.”

Located in the heart of Downtown Anchorage, for more than two decades World Trade Center Alaska has opened doors overseas for companies participating in Alaska’s international trade economy. – In 2009, Alaska’s overseas exports reached 3.3 billion dollars. – Alaska ranks 6th in the nation by value of exports on a per capita basis. To find out more, contact Greg Wolf, Executive Director, at (907) 278-7233.

EXPANSION CONTINUES AT UNIVERSITY, PROVIDENCE AND PORT Despite the economic downturn, Anchorage has a number of important expansion projects moving forward. For example, Providence Alaska Medical Center is planning a major

www.wtcak.org

www.akbizmag.com • Alaska Business Monthly • May 2010

Al Parrish is chief executive of Providence Health & Services Alaska.

campus expansion that will expand and modernize the Newborn Intensive Care Unit (NICU), Prenatal and Mother Baby Units and cardiac surgery program, and renovate other areas of the hospital. The project

involves remodeling 100,789 square feet of existing space within the hospital and constructing a new 85,782-square foot-building. As Alaska’s largest health care provider, Providence is the only provider of many specialized health care services in Alaska, such as advanced prenatal services and the Level II/III NICU. The project, called “Generations,” in recognition of the Providence commitment to care for generations of Alaskans, will expand to serve a statewide need for those services. It will include, among other things, the modernization and expansion of the NICU from 47 to 66 beds. Construction on the $150 million project is slated to begin in January 2011 and will last through December 2014. “At Providence, serving Alaskans’ needs for health care both now and in the future is core to our mission,” stated Providence Health and Services Alaska CEO Al Parrish, in a March 3 statement to the press. “Generations was designed based on assessing community need for health care services and identifying what Providence needs

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to do now to prepare the hospital campus to serve current and future generations of Alaskans.” Also, Providence Health Park is adding a new medical office building to support the hospital’s future growth and development. The new 106,429-squarefoot building, which will include a sleep center, an ambulatory surgery center and physician offices, is a $55.6 million project that is scheduled to be completed by this December. The University of Alaska Anchorage (UAA) is also in a growth mode, with enrollment up 6 percent over last spring, according to Chancellor Fran Ulmer’s February 8 “Make it Monday” speech. The Anchorage campus, which has more than 15,000 students, opened the ConocoPhillips Integrated Science building last fall. This makes UAA one of the first universities in the nation to integrate, in one building, scientific teaching, study and research. Currently, UAA is working on a new sports arena to address the needs of its rapidly growing student population and the surrounding community. New health sciences and engineering buildings are also on the horizon for the Anchorage campus. The Port of Anchorage expansion project continues to make progress. The multi-phase project is “shovel ready” and has all necessary permits and designs in place, according to Sullivan. “I think that by the end of this decade it will be a done project,” he said. “We will have a modern, expanded port that will last us for years.” The Port of Anchorage serves 80 percent of Alaska’s population and is the entry point for 90 percent of the consumer goods shipped to Alaska. It is one of 19 designated national strategic ports. One hundred percent of the jet fuel for Elmendorf Air Force Base and 80 percent of the fuel for Ted Stevens Anchorage International Airport enter through the city’s port. In terms of economic impact, the port generates more than $750 million each year, and more than 4.5 million tons cross its docks annually. The expansion will almost double the port’s real estate and enhance its utility and economic impact on the state. “This really is a great project for the future of Anchorage,” Sullivan said. ❑

www.akbizmag.com • Alaska Business Monthly • May 2010

LEADERSHIP

Teens Serving Now Alaskan youth receive top honors, learn lessons in leadership.

Esther Smith

hile many believe youth are the future of America, teens are doing pretty well in the present, serving communities daily. Prudential Jack White/Vista Real Estate has recognized this, starting the Spirit of Community Initiative. The program has provided recognition and training for youth volunteers since 1995, and this year is no different. Another Spirit of Community Award and another Points of Light Youth Leadership Institute (PYLi) have passed, both with incredible results. “Volunteer experience can be done no matter where you are,” said Esther Smith, a senior at Chugiak High School. It can take you to Africa and to Asia and South America, but it doesn’t have to. The beauty is that you’ll meet the same people with the same needs next door or in the city or everywhere, and there will always be people who need somebody else to care for them and to spend time with them.” As this year’s Spirit of Community

Award winner, and Alaska’s most impressive student volunteer, Smith knows a thing or two about service. When most students headed to the beach, Smith traveled to Malaysia, Brazil, Panama, Ethiopia and Zambia. She spent the last four summers teaching English, distributing necessities and helping with reforestation and building projects. Moreover, Smith learned lessons in compassion. “We worked with around 700 to 800 AIDS orphans during the summer in six different rescue unit,” she said. ‘They just want to hold your hand, and that’s so powerful.” Smith’s work is unbelievable, but she is still like any other teenager, “just trying to survive the last few months of high school.” She loves reading and Facebook and participates in nationallevel debate competitions. Right now, she is looking forward to her Washington, D.C., trip this month, a perk of winning the award. There, Smith will meet other American teens involved in community service. “I’m a complete political junkie,” she said. “So being able to go to D.C. with other top volunteers in the country is going to be awesome.” Smith also has done work locally, as have many PYLi participants. This year’s graduates are making a difference through churches, schools and more, coming from as far away as New York to participate in the intense Spring Break training. The 28 students wanted to learn how to serve their community, and they did. “I’ve always known I’ve been pretty good at leadership, but I’ve never actually been able to be put in a leadership position,” said Anchorage East High junior Matthew Chenery, who was an assistant to PYLi’s Master Trainer Beau Basset. “I think I’ve become a bit more friendly, actually, more open, more community-minded.”

Others came out of the training with a mission. “Everybody needs to get involved in community service. Everybody. It’s not a choice, it’s an obligation,” said sophomore Marissa Ridgley, also from East. Bassett is not surprised by these results. “Young people have the most creative ideas,” said Bassett. “They also don’t perceive the barriers and obstacles that adults do.” Consequently, he says, the community is strengthened. “Everyone wins when diverse young people learn about the importance of leadership and service to others.” It is through youth programs that Esther Smiths are discovered, that students succeed, that young people allow themselves to give back and be leaders, and decide that they are more than the future. They are the now. About the Author Lauren Heyano is a sophomore at Polaris K-12 in Anchorage, where she is editor-in-chief of Polaris’ student newsletter, the Sispillé. She is also a 2007 PYLi graduate.

www.akbizmag.com • Alaska Business Monthly • May 2010

Photo by Daniel Shepard

BY LAUREN HEYANO

Lauren Heyano

ART

Alaska House, New York Multi-use approach for art and culture. Photo by Perry Eaton

BY HEIDI BOHI Perry Eaton made “The watcher” during a 2009 “artist in residence” at the ChateauMusee in Boulogne sur Mer, France. The traditional Alutiiq Suqpiaq bird mask is made from a white spruce stump the artist selected for the grain variations. It takes about three years to dry a piece of wood large enough to make a mask this size.

SUCCESS STORY The opening was a huge success: a steady flow of hundreds of people packed the gallery, making it impossible to even move. Sit down receptions had standing room only. “It was heady stuff,” Perry Eaton, also a board member for the facility says. “At one point, I was standing on the sidewalk watching and it was like an out-of-body experience – like watching an Alaska village in the middle of SoHo.”

Photo by Katie Baldwin/Alaska House, New York

iming has an awful lot to do with the outcome of a rain dance. So when Alaska House, New York (AHNY) opened its doors Sept. 15, 2008, just the day before what would go down in history as the black Friday that marked the Dow’s biggest plunge since the Sept. 11, 2001, terrorist attacks, it was like expecting showers in the middle of a draught. A nonprofit arts and cultural center, dedicated to promoting Alaska from the pulse point of Manhattan’s SoHo district, the facility had built its business plan around the promise of selling high-end Alaska Native art to visitors from around the world. The inventory for the inaugural exhibition reflected the cultural diversity and artistic traditions of Alaska’s indigenous people and was one of the largest and most diverse collections of art ever assembled. The lineup included renowned Alaska Native artists such as Larry Ahvakana, Sylvester Ayek, Alvin Amason, Susie Bevins-Ericsen, Sonya Kelliher Combs, Perry Eaton and John Hoover.

Alaska House, New York is a nonprofit Alaska Native art gallery in the heart of New York City’s fashionable Soho district.

Despite the promising marketplace for art sales in SoHo, unknowingly they had picked the worst time to open a gallery. No sooner had the champagne glasses been cleared, than art sales dried up and the board of directors found itself looking at ways to zig instead of zag to keep the doors open – rent is $21,000 a month for the 3,000-squarefoot-duplex facility – while continuing to develop the program. Alice Rogoff, a successful philanthropist and co-founder of the Alaska Native Arts Foundation (ANAF) – the sister organization of AHNY – became interested in Alaska when she came to watch the 2002 Iditarod. While

visiting the state, she had the opportunity to travel to several rural villages. As she met many of the locals in different communities and was approached with their artwork, she immediately realized the tremendous talent and the potential for helping these artists effectively penetrate the marketplace.

ONE WOMAN’S VISION Her vision of what AHNY could be for Alaska was far from conventional. The purpose of ANAF is to improve the economic well-being of Alaska Native artists by stimulating demand for their work and helping establish fair market pricing. Based on a multi-tier approach,

www.akbizmag.com • Alaska Business Monthly • May 2010

ALL ABOUT ART Almost two years into promoting Alaska, the strategy based on the idea of selling Alaska art by promoting Alaska business and Alaska ideas, Eaton says, positions AHNY as a “special class of a chamber of commerce” that promotes Alaska business and Alaska ideas including economics and world politics, and the challenges that come with the state’s location. “Of course it all comes back to art because art is culture and Alaska Native indigenous art is especially fascinating to people,” Eaton says. “Everything kind of markets each other.” AHNY offers visiting Alaskans

Photo by Katie Baldwin/Alaska House, New York

Rogoff’s idea was to use ANAF to procure art and carry the inventory risk, while using AHNY as the domestic and international distribution network. Alaska Native artists need access to international audiences, but before these customers would be willing to buy, they needed to be educated on the culture and the business climate. As the international crossroads of worldwide marketplaces and center for the arts, a storefront and meeting place in New York was the way to reach the world. As sister organizations, AHNY and ANAF have separate boards of directors with AHNY focusing more on exhibits and advocacy and ANAF concentrating on the arts, though the two boards support each other. AHNY was created by a private board of Alaska leaders to exhibit and sell artwork, while addressing the misperceptions and the lack of knowledge about the state, including its economic realities, energy resources, vitality as a global shipping hub, sustainable fisheries and rich Alaska Native history. Although the broader concept for success had always included offering both art exhibitions and eventually symposiums on Alaska Native culture and economic issues, with the main revenue stream all but dried up, they knew they had to explore other ways to get people in the door. “Anything that speaks to the issues of Alaska is fair game,” Eaton says, adding that educating people from New York, a city at the heart of American culture, gave them a big advantage. “It is much more than a destination.”

Gallery Associate, Andrei Jacobs, at work at Alaska House, New York, a bi-level Alaska Native Art gallery in the heart of Soho in New York City.

meeting space, videoconferencing capabilities, and a gathering place in the nation’s media and financial capital, to discuss the many issues and opportunities for Alaska and around the world. About 30 percent of visitors are visiting Alaskans, or those who have relocated to New York. Another 30 percent are international, and 15 percent are local residents. The remaining 25 percent are visitors from the Lower 48. AHNY currently has 583 pieces of artwork in inventory at the gallery and with ANAF has more than 2,000 unique handmade products by Alaskan artisans online and in the New York and Anchorage galleries and has purchased Alaska Native artwork valued at more than $1 million dollars, providing a direct economic stimulus to rural Alaska. All art provided for exhibition or sale is procured through a cultivated statewide network of more than 1,100 Alaska Native artists.

ECONOMIC ADVANTAGES TO ALASKANS The sale of Alaska Native art plays a significant role in the sustainability of Alaska’s villages. Commercial success in a New York retail environment allows artists to continue living in their traditional communities, while they gain recognition in one of the most recognized art markets in the world. By creating new markets and increasing the international profile of rural

Alaska, AHNY encourages economically sustainable villages and reinforces the continuity of traditional cultures. At the same time, sales are limited by costly transportation, a need for a robust communications infrastructure, and a lack of trusted retail and wholesale outlets. An accomplished artist himself, Eaton says, most of Alaska Natives’ artwork is sold by wholesalers, or seasonal retail stores, which typically take a 50 percent cut for their marketing efforts. Since the art form shifts between high-end, expensive collectibles that start at $4,000 and arts and crafts pieces with average price tags between $50 and $100, the artist takes a substantial hit. The foundation works to promote better returns. The secondary goal is to promote Alaska art outside of the state by establishing a physical presence in a major market. Although the group looked at several possible locations, New York appealed to the board because the art is not stereotypical as is the case with regions such as the Southwest and Pacific Northwest. “The future really lies in this multiuse activity that has evolved with instate partners. Even if art sales took off tomorrow and it was a stand-alone gallery, I’d be disappointed,” Foster says. “The multi-use approach, using Alaska House as a venue to highlight culture and the arts, promoting Alaska’s diverse people, industries and issues is ❑ the best possible outcome.”

www.akbizmag.com • Alaska Business Monthly • May 2010

LEGAL SPEAK

CAMPAIGN FINANCE Newfound corporate power. BY JEFF WALLER

President Obama expressed concerns about the decision and the possibility of large corporations using this ruling to drown out the voices of the people. Like any newfound power, the right of corporations and unions to independently advertise in elections has the potential for substantial abuse, but also carries with it the possibility of a substantial benefit. Is the Supreme Court’s decision an opening for outof-state companies, foreign companies and foreign governments to influence the outcome of our elections through big money corporate political advertisement spending, or is this an opportunity for businesses and unions to educate and inform the public on crucial political matters effecting business?

POSSIBLE ABUSES One of the many possible abuses includes corporations from other states using political advertisements to push an agenda that is contrary to business in Alaska. This could include anything from taxes to bans on resources extraction. Of course, Alaska-based corporations could do the same in states with competing resources. This meddling in our elections could extend to foreign-owned companies purchasing advertisements through a corporation formed in the United States to influence issues during an election that favor the foreign company. This possible danger has been recognized by a representative in the state of New York who has proposed legislation that would ban corporations with as little as 5 percent foreign shareholders from political advertising. If passed, the legislation would basically prohibit nearly all publicly traded companies from placing political advertisements. The

ne person – one vote; one corporation – no vote. But now corporations can influence an election through independent political advertising, and in states like Alaska, this means basically unlimited spending on advertisements. Business and politics will never be the same. The recent United States Supreme Court decision in Citizens United v. Federal Election Commission eliminated prohibitions that kept corporations from paying for political advertisements. The Court held that corporations (and by extension unions and other forms of business) have a right to free speech and should be allowed to purchase political advertisements, so long as they do so independent of a candidate, to either support or oppose a candidate. This recognition of a right of free speech involving politics in entities that are not a natural person has some voters and politicians up in arms. After all, a corporation cannot vote, so what place does it have in trying to influence the outcome of an election? On the other side, is a corporation or a union expressing its view about a candidate that much different from you or me trying to convince our family and friends to support or oppose a particular politician? The idea is the same; it is the scale that differs. And it is this difference of scale that is causing apprehension in many people. In a Washington Post-ABC News poll, more than three-quarters of the people responding, Democrats, Independents and Republicans alike, all disapproved of the idea of corporations and unions being able to voice their support or opposition to candidates. According to the Los Angeles Times,

Jeff Waller

likelihood of such a law withstanding a Constitutional challenge is doubtful, but the legislative action recognizes the threat of foreign companies influencing our elections and our businesses. In addition to influence from foreign corporations, foreign governments could funnel huge sums of money through corporations properly formed in the United States (to many people’s surprise, you do not have to be a U.S. citizen to start and own a corporation in the U.S.) and advertise for or against candidates or issues. Through this process, foreign countries could not only change the face of politics in American, but also influence the outcome of elections and our place in international business.It is not difficult to imagine several issues effecting business that a foreign country would support (or oppose) through corporate-political advertising that could benefit the foreign country. Whether the issue is protecting the environment, drilling for oil, immigration, corporate taxes, or any

www.akbizmag.com • Alaska Business Monthly • May 2010

other issue, political positions that affect the bottom line of companies in the United States can provide a benefit to competing foreign countries. Imagine if an Alaska company was able to influence the elections of a country where its exports are sold. How many businesses would pass on such an opportunity? It is not difficult to believe that foreign businesses and governments will want to influence United States elections, including elections at a state level.

LEGISLATIVE ONSLAUGHT In the coming years, there will probably be a myriad of proposed legislation addressing perceived abuses for the purpose of protecting voters. For example, Alaska law does not permit corporations or unions to donate directly to candidates. The Alaska Legislature is considering changes in the law to require disclosure and reporting by entities making independent expenditures in campaigns.

the media rather than being limited solely to making contributions. Further, a corporation’s and a union’s opinions and positions can be stated in whatever words the corporation or union chooses without the message being filtered through political pundits. Businesses and unions can proudly declare “we like” or “we dislike” candidate X, and tell the public exactly why the candidate should or should not be elected.

Now corporations can influence an election through independent political advertising, and in states like Alaska, this means basically unlimited spending on advertisements. While this prospect is terrifying to many, it is highly unlikely that Alaska businesses (or other businesses in the United States) and politicians are going to passively stand by while outside interest attempt to hijack an election. It is a rare place indeed that freely tolerates outside meddling. Alaska businesses will have the ability to inform the voters about such external influences in their own political advertisements.

MEDIA DOMINATION Other concerns include big money corporations purchasing all the advertising time and print space in local major media in favor of one candidate, and whether the corporations will have to be identified as the source of the advertisement. While it may be logistically possible to purchase all the space on local major media at great expense, that would not be possible in the boundless expanses of the Internet. The importance of the Internet in political campaigns will continue to grow, as shown during the last presidential election. As to identifying the corporation running the advertisement, unless the corporation has the same name as the businesses it operates, or identifies whether it is a local or foreign-owned company, such a requirement may have little practical impact on voters unless voters take the time and effort to investigate the corporation.

The Congress is also proposing new rules. Some may withstand Constitutional challenges, many will not. Free speech, especially speech on political issues, is highly protected and can only be restricted in very limited circumstances. Like it or not, businesses’ position in politics has been altered in a fundamental manner.

ADVERTISING ADVANTAGES On the positive side, this new category of political advertising presents opportunities for businesses and unions to inform and educate the public about the issues and topics that are important to Alaska businesses and labor. Whether this right is used positively or negatively will be decided in part by each corporation, business or union. However, the public may also play a part considering that consumers can exert substantial economic pressure on companies that overstep acceptable boundaries. Prior to the Citizens United case, if a corporation or union opposed a candidate or issue, even one that could adversely affect business or labor, their only choice was making relatively limited donations to the opposing political party with the hope that the candidate would educate the public on the importance of the issue. Now, corporations and unions can present their messages through

The ruling in Citizens United also will benefit smaller corporations that can now easily purchase advertisements on their own rather than forming a political action committee or an issue advocacy entity that cannot refer to elections. Smaller companies can now express their own message directly to the voters. Despite the fear and trepidation that the Citizens United case engenders, smart business should see this as an opportunity for the betterment of business and our economy as a whole. Well-informed voters can make their decisions based upon a broader presentation of issues and concerns. As this new right for corporations, businesses and unions is exercised, hopefully the majority of businesses and unions will use this opportunity to benefit not only themselves, but also to inform the public when someone is trying to ❑ lead voters astray. About the Author Jeff Waller is a senior associate attorney at Holmes Weddle & Barcott P.C. in Anchorage. His practice includes litigation, construction law, employment law, insurance defense, and real estate matters. Prior to becoming an attorney, Waller owned and operated several businesses.

www.akbizmag.com • Alaska Business Monthly • May 2010

SMALL BUSINESS SPECIAL SECTION

BY PEG STOMIEROWSKI

Photos courtesy of Donna and Kevin Maltz

HUMBLE BEGINNINGS

Alaska’s 2010 SBA Small Businesspersons of the Year Donna and Kevin Maltz, pictured at their business Fresh Sourdough Express in Homer, August 2007.

onna and Kevin Maltz, owners of the Fresh Sourdough Express Bakery and Restaurant in Homer and newly recognized as Alaska’s Small Businesspeople of 2010, are honored to represent Alaska’s small businesses, especially in advocating for greater sustainability in serving community needs. While their passion for grassroots enterprise and “green” values endures, their sweat equity in the bakery and restaurant field extends back decades. From its humble beginnings on the Kenai Peninsula, Fresh Sourdough Express was known as the hippie granola bakery, Donna says and acknowledged as an eco-friendly pioneer. The Maltzs extol “eco-friendly” business as the

way of the present and the future. For 28 years, they’ve been offering regional cuisine, all the while laboring hard to stay true to their core values, whether in their scratch bakery, restaurant or catering. Everything is baked and prepared on premises and the dinners they serve highlight local seafood and produce. As ever for the Maltzs, in business as in life, personal and planetary concerns merge whether, they said, it’s in grinding organic grains for cultured sourdough breads, serving organic coffee, hand-crafting products from scratch ingredients, using eco-friendly packaging, or supporting local farmers, fishing and communities by buying and serving quality regional produce.

It was 1982 when Donna, then 25, came to Homer with her then-boyfriend in a 10-year-old laundry truck with $43, their dog named Red, a vision of adventure and a trailer full of supplies for a working soup-andbread kitchen. They began selling from their truck on the Homer Spit. She recalls talking to her family from a payphone outside the old Sterling Café, with smokers gathered nearby talking politics while she pressed her ear to the receiver. An organic farmer and social ecology graduate from Evergreen College in Washington state, with scant bank credit potential at the time, Donna pleaded with her father for help and eventually received a $10,000 loan to smooth the way for expansion from the laundry truck to a 360-square-foot facility (now expanded to 3,000 square feet). “That’s a defining moment,” she feels. “When I passionately believe in whatever it is I want to do, I just go for it, somehow accepting there will be success.” With the money, they bought kitchen equipment. She also paid “every last penny” back before summer ended. Her dad became a key supporter, over the years acting as her bank and consultant and visiting Homer every year. Kevin, a nature lover with similar values, had been working as a fish counter off Kodiak Island when he wandered into the bakery and bought a loaf of Donna’s sourdough rye during a swing through Homer. Before long they met and he applied for a baker’s position.

www.akbizmag.com • Alaska Business Monthly • May 2010

They’ve been together since, living and working in harmony. The businesson-wheels is now a full-service bakery and restaurant open May through September, when it serves hundreds of customers a day. They also run “A Memorable Experience” bed-andbreakfast, hosting weddings and doing catering and event planning.

to a seasonal schedule, she says, but remained successful as the couple grew the AH!laska brand from locations in the Lower 48 during the winter months. While they sold that business in 2000, she said, the brand remains successful and continues to promote Alaska. She still involves herself with the brand and the natural foods industry.

entrepreneurs need to collaborate rather than compete, they say, and to be strong in order to encourage others like them. Amid this prolonged recession, Donna figures small businesses everywhere need to reach out to their communities by offering meaningful work and to reclaim their integral role in the web of life.

PROMOTING WHAT’S LOCAL Wherever they are and whatever they’re stirring up, the Maltzs work to promote local resources. “Buying locally made and grown products is what keeps the money in a community,” Donna says. Besides emphasizing the uniqueness of a place, she says, this creates jobs and stimulates local interest. They supplement their resources by ordering from natural foods distributors. She and Kevin involve themselves in almost all aspects of the business. They hire 25 to 30 seasonal workers whom they feel could also fit well into the enterprise. The business incorporates principles of recycling, waste management, water and energy savings and biodegradable packaging. Relationships within the company, Donna says, are integral to success and are “as important as the relations you have with the products you manufacture.” These days, as they continue to expand while garnishing accolades for their culinary business experience, the couple is in search of similarly minded partners who would eventually buy and run Sourdough Express.

SEASONAL TRANSITION In 1992, consistently with their mission and vision, the Maltzs founded AH!laska, a nationally distributed brand of organic cocoa and chocolate syrup – the first in the nation, Donna says. Two years later, she says, they were growing the brand from Homer, using a $200,000 line of credit they had attained though the assistance of the Alaska Small Business Development Center (SBDC) network. It wasn’t so easy, she recounts, working a national business from Homer. The time zone lengthened their work days and travel costs tended to be high. The Fresh Sourdough Express went

Alaska’s 2010 SBA Small Businesspersons of the Year Donna and Kevin Maltz’s Fresh Sourdough Express in Homer.

For seven years now, the couple has wintered in Hawaii, where they are keeping busy with their new company, “Always in Season.” They sell fare made from local meats and produce, including cultured, brined fermented vegetables, at the local farmers market and they envision Alaskans enjoying similar preparations from their local produce. Their son Jazz, 18, works on an educational sustainable family farm there. Maintaining the regional culinary focus they are known for can be challenging in Alaska, Donna says. With their rigorous standards, they look for quality when buying from local farmers and fishing sources. They believe purchasing organic and fairly traded commodities helps farmers everywhere. They don’t just use farm chickens, she explains, but seek out free-range chickens “that eat the grass and peck the ground and aren’t pecking one another.” Although less than 3 percent of the food most Alaskans eat is imported, and the state has fertile land for both growing and grazing, she laments that attention to farming has diminished. The Maltzs support the Alaska Grown and the Slow Food movements.

ENDANGERED SPECIES For all of their own success, the couple views small businesses and small farmers as endangered species. For the sake of survival and growth, like-minded

In the startup stages, she reflects, inevitably a budding enterprise needs a person or place to turn to for occasional counsel and support. When you don’t have a family member, as she did, or a mentor to turn to and you can’t get a loan from a bank, as so many can’t today, she says a lot of owners may choose to place faith in angel investors willing to bank on some entrepreneurial talent and allure. The Maltzs and their counterparts in other states who are also being recognized for their small-business prowess were nominated by business and government representatives. Donna and Kevin credit Bryan Zak, Southwest regional representative for the SBDC, for their nomination. “We’re lucky to have him on the Kenai Peninsula,” says Donna. “He has a big vision and totally gets what we’re about.” While they are grateful to the SBDC and others, they feel supporting small business is the job of every citizen in America, especially now, since these enterprises are a major source of employment. They also look toward the restoration of functional banking loan programs to support smart community enterprise. The Maltzs were hoping to be in Washington, D.C., to share their views with more than 100 other local entrepreneurs later this month when the national award winner is ❑ announced.

www.akbizmag.com • Alaska Business Monthly • May 2010

SMALL BUSINESS SPECIAL SECTION

Chic Fashion Boutiques A growing Anchorage market.

Photos by Devon Duke

Interior shot of Her Tern boutique in downtown Anchorage.

BY MEGHAN MCCAUSLAND

n the last five years there has been a growth in niche fashion boutiques in Anchorage. Larger chains such as Nordstrom, JCPenney and Abercrombie and Fitch have primarily dominated the retail market this far north. However, in Anchorage, small business owners are taking on large retail stores by setting up shops all over town. “I think that the more businesses we have in our town, the better off we all are. Everyone loves a variety and selection,” says Haley Welsome, owner of Blush Boutique. A group of local Anchorage women agreed and saw the potential to expand the retail clothing market. Prompted by their personal passions for fashion, these women have worked tirelessly to bring style to Alaska. The boutique owners are predominantly female entrepreneurs who are carving out their place in Alaska’s retail market. Each owner has introduced an individualized eye for style

that gives each boutique its own personality. Whether it’s shoes, designer jeans, handcrafted Alaska handbags or T-shirts, all boutiques strive to bring something unique, fashionable and high quality to the local shoppers, they say.

BOLD WOMEN CARVING THEIR NICHE Annie Ciszak, the 28-year-old owner of Bella Boutique, saw that, “there wasn’t a

Annie Cisak Cisak, owner of Bella Boutique Boutique.

shop like this in town.” The small store, stuffed to the brim with indie goodies, opened its doors in 2007 bent on offering only handcrafted products. The business has been successful in its colorful and brightly lit space on Spenard Road. Ciszak says she loves that her boutique offers her the opportunity to, “get to deal directly with artists. For some it’s their full-time job and some are stay-at-home moms.” Ciszak judges her potential products with the artistic eye of a jeweler bringing in only what is special, such as silk-screened ties. Brett Ricker is one of the managers for Her Tern, a small shoe and accessory boutique downtown that opened in 2005. Though the store is connected to Skinny Raven, Ricker and CoManager Ashley Munson have the run of the place. “We do all the fun parts, we do all the buying for the store,” Ricker says. They also help plan the store’s advertising and contribute to Her Tern’s blog, as well as connect

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Bottoms Boutique on Fifth Avenue. Bottoms chose to tackle fashion from the waist down, focusing on designer jeans and shoes. Bowen and husband, Verdie, celebrated the store’s one-year anniversary last September. She opened the store just after her college graduation, drafting her own business plan, and opening her doors within six months of the idea. “If you say ‘boutique,’ a lot of people think it is out of their price range but I’ve worked really hard to have $20 shoes, $85 jeans to $300 jeans,” Bowen says. Leeann Taylor, together with husband, Shane, tackle the market of high-

Brett Ricker and Ashley Munson, co-managers of Her Tern.

with customers daily on a personal level. Ricker says she’s found, “the typical Alaskan shopper isn’t used to independently owned stores.” Therefore both women strive to create a less threatening atmosphere. “We know all of our customers,” Ricker says. “We have a lot of women we know by

name and shoe size. At a (buying) show we may pick up a shoe and say ‘so-andso would like this shoe’ (allowing us) to buy for the customers specifically.” “I wanted to bring something more fashion-forward – stuff that Alaska wouldn’t be afraid to spend money on,” says Casendra Bowen, owner of

“We have a lot of women we know by name and shoe size. At a (buying) show we may pick up a shoe and say ‘so-and-so would like this shoe’ (allowing us) to buy for the customers specifically.” – Brett Ricker Co-Manager Her Tern

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www.akbizmag.com • Alaska Business Monthly • May 2010

Leeanne Taylor, owner of About Face.

quality, classy lingerie and bath and body products in their boutique About Face. Taylor found she, “was constantly bringing stuff back from Atlanta,” for friends. In 2003, she opened her doors, deciding it was time Alaska had some quality products in-house. Taylor purchases lingerie and bath and body products from around the world and carries two of the oldest French and Italian lines of lingerie. Everything in her store is comfortable, classic and beautiful, she says.

“We found when we were starting our small business it seemed like people assumed we would fail. I often felt very patronized.” Now her successful boutique has outgrown its original downtown location and spills over into another quaint boutique in South Anchorage. About Face’s downtown neighbor, Blush Boutique, which opened in 2005, also caters to women’s fashion and Welsome says she works to make her boutique’s experience worthwhile. “As a boutique, we offer a one-onone customer experience and take pride in our customer care. After all, it is our customers who allow us to do what we love,” Welsome says. “We aren’t solving world issues, but we make women happy when they’re in our store. It’s a place to come and relax, chat about things women love to talk about and maybe something catches your eye that you must have in the meantime.” For Welsome, a positive experience for her customers provides an additional bonus for doing what she loves.

STEPPING OUT FROM THE SHADOWS OF GIANTS These small business owners must compete for survival with the large retail chains whose buildings cast shadows over downtown Anchorage. Yet the innovative owners are sidestepping tradition and recognizing the flaws of the retail chains. In turn, they have chosen to offer something a chain store does not. Bella Boutique offers one of a kind merchandise. “You are going to have something no one else has,” Ciszak says. She realizes the frustration of a market saturated with the same merchandise, “as long as it’s different we are willing to give it a try,” she adds. Her Tern may seem small in stature compared to the department stores, but it is large by boutique standards. Its walls host antique paintings, bright colors and a clean, chic look; even a fashionable pair of Moon Boots stand on bold display. The managers try to make sure there is a little something for everyone. “We don’t want people to feel uncomfortable because we are in Anchorage, Alaska. We have shoes that range

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from $89 to $600,” Ricker says. Besides the huge array of fashionable shoes, the store also carries local designers who have made jewelry from odds and ends like old, metal keys, handbags from recycled leather and belt buckles from glass. “I try to bring in something people can afford and that no one else has,” Bowen says. Affordable, in the world of boutiques, does not imply low quality or less attention. “Customers appreciate the one-on-one service,” she says. “I can see their body shape and help them find something that fits.” Through chatting with customers, Bowen says, she’s found some customers have felt they need to dress a certain way to get help in upscale retail stores. That is clearly not the case in her store, or any other of the boutiques. Excellent customer service is at the top of the list for the business owners. About Face’s Taylor has made sure that her staff is fully trained in fitting lingerie. “We won’t sell a bra that doesn’t fit and we educate our customers on how they should fit,”

she says. Her boutique also boasts exclusivity in Alaska, though Nordstrom has picked up one lingerie brand that About Face carries. “Our bras are individually cut by a machine, pieced and sewn one at a time,” ensuring a quality fit. Blush Boutique offers the small, social setting similar to a coffee shop. Welsome encourages an atmosphere for people to come in a stay awhile. Exclusivity is also important in setting her store apart. “Being that I am the owner and buyer, I have complete control over what is sold in our store,” she says. “We are able to purchase small quantities to make each item more special, rather than a department store that will have a whole rack of a certain style.”

COMMUNITY-ORIENTED SHOPS “Shopping locally is so important,” Taylor says. “The generation behind me is less attuned to that. The younger customers often don’t understand the concept of local economy so we talk to customers about that because it important to support.”

Bella’s Cizak also agrees, “with the economy doing what it’s doing, when you spend your dollar here, most of it is staying in the community. You support small business and local artists. You support a person you can actually see.” Many of the boutiques also participate in community events. “With other boutiques we do fashion events, occasionally do a First Friday and we carry some local artists in the store. The events give people something to look forward to and something fun to do,” Ricker says. Bottoms also contributes to First Friday and fashion shows. Blush’s Welsome says she is, “very grateful to our community as the people have been very supportive of our business. Alaskans take pride in supporting local business.” The boutique culture that is growing in the belly of Anchorage is one of camaraderie. “We put our heads together and figure out what works and what doesn’t,” Ciszak says. They cater to customers, draw outside the traditional retail margins, and work to create something unique in the far north. As for the daring entrepreneurs themselves, “Let’s get back on top ladies!” says Ciszak. ❑

Alaska USA Better for your business Customized solutions | Local service | Fewer fees ■ Checking, loans, & depository services ■ 24/7 online account management ■ Business Visa® Check Card ■ Insurance, bonds, & employee benefits ■ Retirement services ■ Investment management Find out what Alaska USA can do for your business. 563-4567 | (800) 525-9094 | www.alaskausa.org Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.

www.akbizmag.com • Alaska Business Monthly • May 2010

SMALL BUSINESS SPECIAL SECTION

Entrepreneurs take note. BY SAM DICKEY

n business, success often comes down to price. I am not talking about money, but planning, relationships, improvement, customer value and engagement. While I am a believer in the old saw “if it’s worth doing, it’s worth planning to do,” I am not sure that is 100 percent correct. I do believe that planning, done correctly, raises one’s awareness. Sometimes deadlines must be met to keep things on track, and planning helps us keep sight of that. Planning before opening our business helps us avoid some of the pitfalls. A good business plan will describe your business, your vision and your goals. What are the needs of your work force? Will you be able to use unskilled workers or will you require a highly trained work force? Potential problems and solutions? Do you have the capital and equipment needed to be successful? Have you analyzed your competition? Competing on price alone won’t be enough. In addition to a business plan, separate plans may be needed for marketing, advertising and promotion, long-range budgeting and managing growth. A poorly handled expansion can hurt your business – even to the point of closing. Fortunately, there is much help out there. You can avail yourself of the Small Business Development Center, SCORE, the Women$finances program of the YWCA or any of a myriad of others that can help you develop your plans. Whatever you do, don’t fail to plan.

they provide you with sound advice, but also they can potentially be a great source for new business either directly or through referrals.

MAKING CHANGE

Photo courtesy of Sam Dickey

Sam Dickey Deputy District Director U.S. SBA Alaska District Office

HUMAN INTERACTION I have heard it said that, “All businesses are relationship businesses.” I agree. Look for, create and maintain positive relationships with your partners, your employee, your customers and competitors. Not only can they provide you support, but also some of the greatest improvements to your business are likely to come from your employees and customers. Listen to them. They are the ones who interact with your systems, services and products every day. It is equally important to maintain productive linking relationships with providers of business services, such as your attorney, accountants, bankers and those in lines of business complimentary to your own. Not only can

Incremental improvement is a way of life for any new small business as they smooth out operations and systems, but after a while some forget to keep improving. If you’re not moving forward, you’re moving back. Even if you are not working on a new product, twist or offering, your competition is. As your clients preferences change, as technology changes, as your industry changes, you must change or resign yourself to an ever-shrinking customer base, which means an ever-shrinking cash flow. Often small things yield big results. A hostess at one restaurant asked callers to “please call back if you unable to keep your reservation” and cut reservation no-shows 43 percent. A marginally used paper-recycling program suddenly goes to 95 percent participation when someone places a small box marked “recycling” on everyone’s desk. Turning off printers, computers, monitors and lights after hours could reduce your electric bill by as much as 30 percent, possibly more. The changes were small, the results were big and all produces increases in customer satisfaction, employee satisfaction or the bottom line. Strive to be constantly improving.

CREATING CUSTOMER LOYALTY As customers, few of our purchases are made based on price alone, we purchased based on the value our

www.akbizmag.com • Alaska Business Monthly • May 2010

your business is unique Shouldn’t your SBA Loan be too? Key is an SBA Preferred Lender, with dedicated SBA specialists located across the country. We do our own underwriting, so you get approval from a community bank with nationwide resources. We are the 15th largest SBA 7(a) lender in the country, offering: t -PXFS NPOUIMZ QBZNFOUT t $PNQFUJUJWF JOUFSFTU SBUFT t -POHFS UFSNT t 'MFYJCMF SFQBZNFOU PQUJPOT t /P QSFQBZNFOU QFOBMUJFT Key can help you ﬁnd the right solutions for your business.

go to key.com/sba call Win Gruening at 907-463-7201 visit your local KeyBank branch

* SBA loans are subject to credit approval. Certain restrictions may apply. Key is an SBA Preferred Lender. KeyBank is Member FDIC. ©2010 KeyCorp. Key.com is a federally registered service mark of KeyCorp. CS10614

purchase brings to us. Perhaps we like the particular brand of shortbread cookies you sell above all others. Perhaps your salesperson took the time to explain to me why I not only didn’t want the more expensive fishing reel I was looking at, but a less expensive one, and oh yes, the more expensive line. But I left with a now strong preference for what was the third specialty store where I had been in the previous few days. An employee at a book store informed a customer the book she was looking for is out of print, and in the next breath offers to bring her his copy of the book he had purchased but never read. His offer of a $5 paperback created a customer for life. All of these things created value for the customers involved. They told the customer they were important, a priority. The cost of acquiring a new customer through advertising and promotion can often dwarf the cost of keeping your current customers happy. Offers of free product, free or reduced cost monthly service are enticing and will get many to try your product or

service. But how many of those new customers will convert to long-term customers? Your current customers are not only of the highest value to you in terms of their lifetime purchases from you, but they may well be your most effective sales force. Listen to them, ask them what they like, dislike, they will tell you what they want, they will help you innovate your way into keeping them. Just as your customers recognize the value you bring to them, be sure to recognize theirs. Everything we have talked about so far comes down to engagement – engagement with customers, employees, service providers, new and existing customers and people who can help you get past the bumps in the road by providing advice, training and capital – it doesn’t end there.

ENTREPRENEURIAL SUCCESS You are your company’s greatest salesman, if you’re not willing to make the pitch, you may wish to reconsider hanging your shingle. Even if you hire a salesman or a marketing firm, you should take a leadership role and

establish direction. Your marketing team can help you craft your message and perfect your pitch, but they must clearly understand your mission and priorities. Communicate to them and your customers the problems you can help them solve. Above all, remember that no man is an island, find mentors and tap them for their knowledge. One of my biggest fears is calling a meeting and realizing I am the smartest guy in the room. Surround yourself with experienced advisors, good board members, good employees and good professional service providers; they will help make you strong. A lender may not like you as an individual, but they may be excited about your team. It is important to lay out clearly and early that you have the talent. All these things barely scratch the surface of the exciting, interesting and challenging world of an entrepreneur. In this month’s issue, you will find stories of others who have made the journey. They have planned, toiled, innovated and improved relentlessly to make their business better and more profitable day-to-day, year-to-year, customer-by-customer. One such business is the Fresh Sourdough Express Bakery in Homer. We at the SBA wish to extend them congratulations on their selection as SBA’s Alaska Small Busi❑ ness of the Year for 2010. About the Author Sam Dickey is the Deputy District Director, U.S. Small Business Administration Alaska District Office. He has held this position since March 2006 and is responsible for the delivery of all SBA programs and services. In addition to his current duties, Dickey is the Alaska HUBZone Contracting empowerment program liaison. He has been employed by the U.S. Small Business Administration since 1988, and has 24 years experience in the computer industry, ranging from mainframe programming to network management and PC assembly and repair. A resident of Alaska since 1966, Dickey lives with his wife of 24 years and has three children, all residing in Anchorage.

www.akbizmag.com • Alaska Business Monthly • May 2010

BY NANCY POUNDS

Photo courtesy of U.S. Fish and Wildlife Service

Birds, Visitors Flock to Homer Shorebird festival features boat tours, beach walks. Dunlins and Western Sandpipers gather every spring to eat small invertebrates in the rich mud on the shores of Kachemak Bay. Since 1993, the Kachemak Bay Shorebird Festival celebrates the return of the migration every year on the weekend closest to May 8.

blue-sky day in Homer with little wind, a sparkling sea and a backdrop of jagged mountains is a slice of heaven on earth. Thousands of migrating birds join the scene, drawing visitors for a weekend of activities this month. The Kachemak Bay Shorebird Festival runs Thursday through Sunday, May 6-9. The festival features field events, workshops and presentations at various locations in Homer. Several activities are set for beaches or the ocean via boat tours. The Homer Chamber of Commerce and the U.S. Fish and Wildlife Service co-sponsor the annual festival. “It has become one of the premier bird festivals in North America with world-renown speakers,” said Paul Dauphinais, chamber executive director. Birders value Homer for its natural surroundings to spot migratory birds rather than a site that has been adapted and altered, he said. And the biggest draw is the numbers – about 130 species of birds visit Homer in early May, including 20 species of shorebirds, according to event organizers. “There is quite a diversity of birds that come,” Dauphinais said. This year’s theme is “Partners across the Pacific: Common Waters, Uncommon Birds.” The festival is important for the Homer economy, drawing visitors to businesses during a slower season, said Christina Whiting, festival coordinator.

BIRDS AND BIRDERS Bird enthusiasts also benefit from the festival. About 70 percent of participants are Alaskans, with another 25 percent from the Lower 48 and 5 percent from international destinations, Whiting said. The birds reap rewards from the festival, too. “Kachemak Bay provides rich feeding grounds for shorebirds, seabirds and woodland birds,” Whiting said. “It is

important to preserve critical habitat areas for these birds. The festival provides many areas of education on the importance and necessity of maintaining wild spaces for them.” Eighteen years ago, some Homer residents organized the first festival to spotlight the area’s value as a migratory bird destination. They also were responding to a proposal to fill in Beluga Slough to build a recreational vehicle park, Whiting said. The festival has grown every year since then, adding field events and workshops. The festival’s growth with excellence spurs its reputation nationally and worldwide and draws more participants each year, Whiting said. Organizers continue to expand the junior birder program. “We believe nature conservation begins by educating the young,” Whiting said.

EVENTFUL FESTIVAL This year’s shorebird festival will feature more than 50 field events, including popular boat tours to Barren Island and kayak trips to spot birds and wildlife. Other popular activities include guided hikes across the bay at Kachemak Bay State Park, van tours to birding spots and the Overlook Park beach walk, a trek requiring rubber boots. The keynote speaker is Peter Harrison, an author and illustrator specializing in seabirds. Whiting expects to finalize event details and step away from her desk to join birding activities. She delights in touring the beaches, scanning for birds with children and beginning or advanced birders. “I love interacting with the participants and hearing about the birds they are seeing and the activities they are enjoying,” she said. “It’s always exciting when people tell me they’ve checked a bird off their life-list during the festival weekend.” Visit www.homeralaska.org.shorebird.htm for a schedule of events and more information. ❑

www.akbizmag.com • Alaska Business Monthly • May 2010

M AY E V E NT S C A L E NDA R •••••••••

1 to 8

N C H O R A G E •••••••••

Anchorage Chamber Citywide Cleanup

It’s time for Anchorage residents to grab their orange bags, roll up their collective sleeves and sweep the city clean during the 42nd Annual Anchorage Chamber Citywide Cleanup. For more information, visit www.anchoragechamber.org

Hamlet

1 to 8

Written in 1602, Hamlet is one of the most complete portrayals of the human psyche. A compelling take of familial discord, personal ambition, love and revenge. For more information, phone 907-2632787 or visit www.myalaskacenter.com.

Market 907

1 to 31

Alaska’s Indoor Flea Market is fun for the entire family, as there is something old and new for everyone. There is a variety of food, arts, crafts, clothing and antique vendors. It’s located in South Anchorage at 7521 Brayton Dr. For more information, phone 907-229-2053 or 907-350-1811, or visit www.market907.com.

1 to 31

Anchorage Market & Festival

Local farmers and artisans sell their goods on Saturdays and Sundays in this festival atmosphere. Enjoy free, lively entertainment and great food while browsing through more than 300 booths between Third Avenue and E Street parking lots. For more information, phone 907-272-5634 or visit www.anchoragemarkets.com.

Arctic Sirens First Friday Cabaret

Dining, dancing and show, featuring the vocal talents of five local singers each show, backed by the Kevin Barnett Trio, 7:30 p.m., Snowgoose Theater. For more information, phone 907-245-7311 or visit www.arcticsiren.com.

Bike to Work Clinic

Are you ready for Bike to Work Day (May 21)? Are you geared up for the summer commuting season? Do you know the Rules of the Road? Or what the most common danger zones are and the simple things you can do to stay safe? If you answered “No” to any of these questions, join BCA, Bicycle Commuters of Anchorage at REI, 1200 W. Northern Lights 6 p.m. to 8 p.m. For more information, visit www.bicycleanchorage.org.

Bonny Sosa KidzMile

Children ages 18 and under are encouraged to stop by after school at Wendler Middle School and run, hop, skip or jump as often and as fast as they can in timed heats that go every 15 to 20 minutes. Participants receive certificates. Healthy food and snacks are provided, volunteers are welcome. Entry fee $5. For more information, phone 907-346-1902.

21 to 22

Anchorage Relay For Life

The American Cancer Society Relay For Life is a life-changing event that gives everyone in communities a chance to celebrate the lives of people who have battled cancer, remember loved ones lost, and fight back against the disease. For more information, phone 800-227-2345, e-mail anchoragerelay@gmail.com or visit www. relayforlifeofanchorage.org.

www.akbizmag.com • Alaska Business Monthly • May 2010

M AY E VE N TS C A L E N D A R Smithsonian, Imaginarium and Planetarium

Celebrate the grand opening of the Smithsonian Arctic Studies Center, Imaginarium Discovery Center, Thomas Planetarium and ConocoPhillips Gallery. Explore the museum’s newest cultural, historical and scientific offerings and enjoy a variety of live entertainment and hands-on family activities. Opening remarks begin at noon in the atrium. For more information, phone 907-929-9200 or visit www.anchoragemuseum.org.

Free Day at Alaska Botanical Garden

The Alaska Botanical Garden consists of about 110 acres of “boreal forest,” with approximately 11 acres of cultivated gardens and interconnecting nature trails. The garden location: 4601 Campbell Airstrip Rd. For more information, phone 907-770-3692 or visit www.alaskabg.org.

• • • • • • • • •

O R D O V A • • • • • • • • •

Shorebird Festival

6 to 9

The annual event celebrates the spring migration of birds through the Copper River Delta. Community activities and events include workshops, guest speakers and field trips. For more information, phone 907-424-7260 or visit www.cordovachamber.com.

• • • • • • •

A I N E S • • • • • • •

17th Annual Great Alaska Craftbeer and Homebrew Festival

28 to 29

Beer tasting, dinner and awards. For information, phone Southeast Alaska State Fair, 907-766-2476 or e-mail seakfair@aptalaska.net.

• • • • • • • • •

O D I A K • • • • • • • • •

Whale Festival

1 to 5

Celebrate the return of the migrating gray whales during the 15th annual Whale Fest. Events planned daily for all ages and most are free to attend. For more information, visit www.whalefestkodiak. com or e-mail whalefestkodiak@gmail.com.

Kodiak Crab Festival

27 to 31

A celebration of spring and King Crab fishing from the Emerald Isle. Seafood cook-off, parades, food, carnival booths and midway, running events, a golf tournament, bicycle and survival suit races, a blessing of the fleet ceremony, concerts, USCG demonstrations and more. For more information, phone 907-486-5557 or visit www. kodiak.org.

•••••••••

13 to 16

E T E R S B U R G •••••••••

Little Norway Festival

This annual celebration dates back to May 17, 1958, when two local women chaired the first Little Norway Festival in celebration of Petersburg’s unique Norwegian heritage. The festival has grown over the years to span the third weekend of May and celebrate not only Norway’s constitution, but U.S. Armed Forces Day, the coming of spring and the beginning of the fishing season. For more information, visit www.petersburg.org. www.akbizmag.com • Alaska Business Monthly • May 2010

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Welcome to Sitka Day

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Celebration of the seasonâ&#x20AC;&#x2122;s first large cruise ship in Sitka. Enjoy music, Native dancers and New Archangel Dancers under the Crescent Harbor Shelter. For more information, visit www. sitkacoc.com.

Motherâ&#x20AC;&#x2122;s Day Quilt Show

8 to 15

Sponsored by the Oceanwave Quilters Guild, showing new and historic quilts at Harrigan Centennial Hall, 330 Harbor Dr. For more information, phone Sabra, 907-747-5071.

Annual Julie Hughes Triathlon

Meet at Hames Athletic & Wellness Center, 801 Lincoln St., registration is the day before. Join in the six-mile run, 10-mile bike ride and 1,000-meter swim. There will be a short course for participants age 12 and under. $20 fee. All cyclists are required to have a bicycle safety check prior to the event. Athletes can compete on a team or individually. For more information, phone Susan, 907-747-0519.

Sitka Salmon Derby

29 to 31

Catch fish in the sparkling waters of Sitka to win cash and prizes. For more information, contact the Sitka Sportsmanâ&#x20AC;&#x2122;s Association at 907-747-6790.

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Make the Moose

1 to July 4

The Talkeetna Artists Guild of Denali Arts Council in partnership with the Talkeetna Historical Society and the Talkeetna Chamber of Commerce organize and host the Moose on Parade each year. Moose art will go on display in May and will be auctioned on July 4 weekend. For more information, phone 907-733-7929 or visit www. talkeetnachamber.org.

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7 to 9

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May Day Fly-In and Air show

Experience the most unique Bush Plane competition in the Western United States. For schedules, registration and more information, visit www.valdezalaska.org.

Fused Fireweed and Stained Glass

Get a taste of the process of stained and fused glass while making a beautiful fireweed piece. Held at the Glass Mermaid Studio and Gallery, 321 Egan Ave., Ste. 105. For more information, phone 907255-5947 or visit www.glassmermaid.net. â?&#x2018;

If you would like your event featured in the Events Calendar, send details at least two months prior to scheduled affair to Elaine Collins at circ@akbizmag. com. Events are placed at no cost on a space-available basis. For more information, call 907-276-4373.

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ May 2010

HR MATTERS

Countering job nightmares. BY LYNNE CURRY

workplace violence. Although no state currently protects employees against workplace bullying, bills before the Massachusetts, Illinois and New York legislatures may change that.

BULLY TACTICS Bullies come in many sizes and types, among them the character assassin, the micro-managing control freak; the silent grenade ready to explode, and the opportunistic, manipulative backstabber. Like schoolyard bullies that throw spitballs, workplace bullies generally launch their attack by making unjustified accusations about their target’s character, competency, personality or emotional stability. By creating hearsay they erode others’ respect for and trust in their target. Left unchecked, they undermine their target’s self-confidence and work relationships. Many initially try to ignore workplace bullies, hoping if they act professionally the bully will leave them alone or act nicely in return. Often, those targeted view the initial bully onslaught as a one-time event. Nothing could be further from the truth. Bullies perceive niceness and avoidance as weakness and an invitation to take advantage.

hen “Jim” accepted a job with an Anchorage oil services company, he didn’t realize he was putting his career at risk. He’d heard stories that his new boss “Bill” was one tough son of a gun and that those who got on Bill’s wrong side didn’t last long. Jim didn’t worry, he was tough, too. “Anne” didn’t benefit from the same forewarning. When she landed what she thought was a dream job, she quickly bonded with her charismatic boss “Karla.” When Karla liberally poured wine at an informal evening out and said “tell me all about you,” Anne did. Like many others in the country, Jim and Anne found themselves in a job nightmare. According to an Associated Press alert, 29 percent of all U.S. managers and employees deal with workplace bullies. A Society for Human Resource Management (SHRM) white paper reports “one out of six individuals report being bullied at some time at work during their careers.” According to SHRM’s latest survey, bullying in the workplace is three times as prevalent as illegal discrimination, and occurs at least 1,600 times as often as

L Lynne C Curry

Those who don’t stand up to the bully’s initial attack inadvertently encourage continued bullying. Most individuals confronting a workplace bully expect to receive support from co-workers or another senior manager. Unfortunately, because many bullies show their true selves only to their target while maintaining a charming front toward others, and because most individuals give the benefit of the doubt to the bully,

www.akbizmag.com • Alaska Business Monthly • May 2010

Do you work with a bully? Don’t play the bully’s games. unless they personally experience the attack, bystanders rarely help those slammed by bullies. When those on the sidelines finally realize what’s going on, they may consider the fight not theirs or even run for cover.

COUNTERMEASURES Unfortunately, those confronted by a bully often instinctively make exactly the wrong moves, either playing into the bully’s hands or naively coming across as an easy target. These wrong moves include trying to appease the bully; stooping to the bully’s level and thus losing others’ respect; letting the bully isolate you from others, and wasting energy by responding to phony issues. What does it take to stop a bully? You – because bullies lack internal brakes, those who want to stop a bully from steamrollering or trampling over them have to outmaneuver the bully. When under attack, you can’t afford ordinary reactions such as letting the bully push your emotional hot buttons; becoming angry or arguing; pleading, giving in; taking the bully’s words at face value; trying to appease the bully or agreeing under pressure or stooping to the bully’s level. When you react to a bully’s provocative attack,

you give the bully the upper hand. To avoid these nonproductive yet instinctive reactions, take a moment to realize what’s going on and ask yourself “what game is this?” Then, don’t play. For example, if the bully confronts you with “where did you come up with this crap?” respond straightforwardly and nondefensively with “it came from the Harvard Business Review” or whatever source you used. You can further outmaneuver the bully and avoid nonproductive pointcounterpoint arguments by countering attacks with questions. For example, if the bully mutters, “you sure screwed this up,” ask “in what way?” If the bully says, “just about every way you could have,” then respond, “as soon as you give me a specific, we can move forward.” By rising above the attacks and offering to deal with real issues, your actions announce “bullying won’t fly with me.”

DON’T PLAY The good news – bullying is a two way interaction. You can’t be bullied if you refuse to play the bully’s game by his rules. If you don’t play along, you merely witness a failed attempt to bully you. Soon after he started his job, Jim

correctly assessed that Bill treated well those he considered in his camp. Hoping to move up fast, Jim became Bill’s hatchet man on jobs he chose to delegate and worked 70-hour weeks on projects that Bill took credit for. Within a year, Jim had a reputation nearly as negative as Bill’s and yet higher ups in his company viewed Jim as a strong producer who got tough jobs done fast. When Bill realized Jim might upstage him, he decided to take Jim out. The two men fought relentlessly until Jim decided he’d had it. Unfortunately, the stress trashed Jim’s personal life as well and the resulting divorce so disheartened Jim he stepped off the career escalator he’d hoped to ascend. Soon after Anne started, she experienced Karla’s dark side. Karla pushed Anne to spy on others in the building. When Anne hesitated, Karla asked Anne if she’d like others knowing some of Anne’s secrets, including the fact she’d danced topless to pay her college tuition. When Anne got caught shifting through papers on a lead manager’s desk, Karla disclaimed all knowledge of the situation and personally fired Anne. Do you work with a bully? Don’t ❑ play the bully’s games.

About the Author

Local management/employee trainer and consultant and the author of Managing Equally and Legally, Won By One and Solutions, Dr. Lynne Curry provides training on handling verbal confrontation and workplace bullies to groups ranging from the Alaska National Guard to the employment law section of the Alaska Bar Association. For the last three decades Curry’s HR consulting and training firm, The Growth Company Inc., has provided more than 35,000 training and consulting sessions to board members, managers, supervisors and employees of more than 3,500 organizations in Alaska, Washington, Oregon, Florida, Connecticut, Arizona, Texas, Washington, D.C., California, Hawaii, Japan and Mexico. For more information on The Growth Company Inc.’s training and HR on-call services to companies needing help with recruiting, team-building, strategic planning, management or employee training, mediation or HR trouble-shooting, please visit www.thegrowthcompany.com. www.akbizmag.com • Alaska Business Monthly • May 2010

TOURISM

“Effects of the economic downturn are still being felt and groups are using ingenuity in trying to continue the retreat tradition, especially in attempting to bring together representatives scattered throughout the state.” – Laurie Wolf • Foraker Group

The Portage Board Room and Salon is a featured executive meeting space at The Hotel Alyeska.

Photo by Ken Graham Photography.com

Executive Board Retreats Many options for Alaska getaways. BY PEG STOMIEROWSKI

ith Alaska’s high season for executive board retreats budding in a tepid economy amid decreased corporate and agency budgets, diverse establishments are doing what they can to compete, especially for repeat business.

RETURNING GUESTS For Alyeska Resort in Girdwood, as well as smaller destinations, repeat visits are a critical part of sales strategy in this sector, so customer satisfaction counts. Alyeska Marketing Director Sandy Chio says close coordination with the client on goals and event plans makes a difference – so does performance. Alyeska, a full-service resort, by its

own account excels at hosting business retreats, meetings and getaways in what is a fairly intimate setting from a conference standpoint. Its eighth-floor meeting space features a floor-to-ceiling bay window, making guests feel like they are actually in the mountains. The resort considers itself best for 250-person conferences, she said, or executive retreats for fewer than 50. Almost a third of Alyeska’s revenues come from meetings and weddings, Chio said, with 75 percent of that from board retreats and executive getaways. Peak season is Memorial Day to Labor Day for summer board retreats, and the winter season just concluded. The resort is expecting business to match or exceed 2009 figures.

SAVING COSTS For organizations looking to stretch their dollars, the Alyeska sales team offers ideas such as between-season gatherings, where members can enjoy typical amenities along with discounted room rates and space rental fees. These days, much of the difference may be in the details New York strip steak or filet mignon, Chio says, or by selecting a more moderately priced bottle of wine. In winter, the resort is able to offer executive groups discounted lift tickets, as well as savings on private lessons and demo equipment rentals. Guided mountain tours are another complimentary option, and Alyeska has reintroduced in-house décor touches to spruce up rooms and tables without

www.akbizmag.com • Alaska Business Monthly • May 2010

organizations having to spend out-ofpocket to introduce a few frills. To save on costs, some organizations are meeting less, while others are paring down amenities and plotting out event budgets, item by item, with facility planners.

ANNUAL RETREATS In the nonprofit sector, the Foraker Group’s Laurie Wolf said, effects of

Photo by Tom Evans

MORE CONFERENCING Karen Zak, general manager of Visions Meeting and Event Management, a division of USTravel, feels that overall, many organizations are conferencing more, not less – a trend fueled by the poor economy and a faster pace of decision making. Fewer five-year plans survive today’s rush, so frequent communication becomes a greater necessity as business and technology move at warp speed. But she doesn’t see the need for face-toface meetings changing anytime soon. Trends for smaller conferences, Zak said, include video-conferencing and staying in-state to meet.

At 2,300 feet above sea level, the Alyeska Upper Tram Terminal is surrounded by mountain peaks, seven hanging glaciers and water views.

the economic downturn are still being felt and groups are using ingenuity in trying to continue the retreat tradition, especially in attempting to bring together representatives scattered throughout the state. Despite budgetary pressures, Wolf said most organizations still feel the need to bring board reps together

once a year somewhere, whether for a day retreat or longer when affordable delegate housing can be found. Some members may be flown in, but then may stay in someone’s house. Some organizations meeting in Anchorage use corporation meeting rooms when board members of the nonprofits can secure their use from their

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workplaces. Others have been meeting at BP’s Energy Center conference room, receiving use of the space for free and paying for catering. BP’s Energy Center is dedicated to serving nonprofits. “Previously a board may consider going out of state a good investment in order to fully engage the participants,” said Zak, who with husband Bryan, also is co-owner of Alaska Adventure Cabins in Homer. “Now they will stay in state, but look for a location or facility that is new to the group and inspires productivity.”

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A lot of Alyeska Resort’s business comes from within the state,” Chio said, adding that Alaskans tend to love traveling in Alaska, combining business and family fun. This mountain resort keeps busy in high season, she said, because of fine facilities, skilled staffing and the ability to offer a balance of work and outdoor play opportunities, including 1,400 acres to ski and a network of trails. Attendees may combine day-fishing trips or flight-seeing with their meeting itineraries, do these activities after hours, or combine their business stay with a pre- or post-meeting family sight-seeing jaunt, she said. Alyeska’s full-service concierge team provides an obvious benefit in helping plan wildlife day cruises or glacier dog-sled tours. Alyeska Resort, with a 304-room hotel and six on-site dining locations, features 13,000 square feet of dedicated

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meeting space and an additional 15,000 square feet of special-event and function space, Chio said, with related sales, conference, catering and hospitality staffs constituting about two-thirds of the year-round staff. The sales manager helps negotiate contract details and the conference services team helps strategize how the event will be executed, down to such small details as linen, décor, menus and in-room amenities. The conference services manager can help save costs, for instance, by recommending drink tickets versus a hosted bar, appetizer stations versus seated banquet dinners and other ideas.

WHITTIER The Inn at Whittier, located on the other side of North America’s longest shared-use tunnel, is on the western shores of Prince William Sound. The Inn accommodates business meetings in its four-story structure featuring 25 rooms, suites with Jacuzzi tubs and a 150-seat restaurant and lounge. Glacier or wildlife cruises are available nearby. The Inn is open year-round and rates vary with space and the season.

SEWARD Seward Windsong Lodge has several rooms available for meetings, private dinners and special events. Group menus and banquet selections are available, along with Internet access and a professional team of meeting planners.

HOMER Land’s End Resort, with 98 hotel rooms at the tip of the Homer Spit, in Homer, features two main meeting areas: The Quarter Deck features in-room sound and seating for 250; and the Harbor Room, with portable sound and seating for 50. The Quarter Deck can be divided by a soundproof sliding wall and is equipped for audiovisual presentations, wi-fi computer and fax/phone use. The center of the Chart Room restaurant can accommodate private functions for groups up to 75. Also available at this full-service resort are 16 privately owned Land’s End Lodges. These luxury units, which can sleep up to six, are available for smaller meetings and receptions, with some able to accommodate up to 30. Sophisticated shopping, recreational,

GIVE YOUR MEETING A BREATH OF

entertainment and dining facilities in town are easily accessed by car or taxi car and the guest service and tour desk is available to help plan excursions. Customized discounts may be based on group size Alaska Adventure Cabins, with the addition of the 2,400-square-foot timber-frame Bear’s Den Lodge, now can accommodate meeting groups, corporate retreats and special events, according to its owners. The lodge has a chef’s kitchen, two conference-style tables and two levels with lounge areas. The main level, with more than 1,000 square feet, offers meeting space and catering is available. While the lodge sleeps 12, all five diverse cabins facilities together can house up to 35 people. Zak says the facility has hosted from 12 to 53, including wedding rehearsal parties, family reunions and club get-togethers.

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for a gathering, corporate or otherwise, in search of a purposeful calm in, as Frommer’s reviewers observed, “a building that’s an astonishing work of art itself, full of exquisite stone, dramatic spaces and even an indoor creek and waterfall.” “We immerse our visitors in a healthy lifestyle and model environmentally conscious living,” says Stillpoint’s Jan Thurston. “Guests experience timeless wilderness that touches the soul; thoughts are collected and creativity is coaxed from hiding.” Overnight groups of up to 22 are welcome and groups of 12 or more may be given exclusive use of the facilities. The lounge, with an impressive fireplace, is equipped with a 100-inch screen for video, PowerPoint presentations and wireless Internet.

the five cabins for their gatherings. Hatcher Pass Lodge, off the grid above tree line, is known for Alpine dining. The lodge and its nine cabins can be reserved as an exclusive retreat for about 30 people. Moose Wallow Bed & Breakfast, at the base of the Talkeetna Mountains north of Palmer on the Glenn Highway, has three cabins that can accommodate a limited executive getaway. While the cabins are surrounded by 80 open acres, they are accessible to shopping and dining in Palmer and Wasilla. Yukon Don’s in Wasilla, from the second floor, features a majestic view of the Matanuska Valley and the Chugach and Talkeetna mountain ranges. Amenities at the themed cabins include breakfast options, fireplaces and an observation deck.

MAT-SU VALLEY Hatcher Pass Bed & Breakfast offers log cabin facilities at the base of Hatcher Pass and an easy drive from Palmer and Wasilla. The B&B doesn’t have a special conference room or niche, but serves groups using the larger of

BIG LAKE Sunset View Resort in Big Lake expanded to accommodate corporate meetings, family reunions and executive retreats. The resort includes four executive lakeside homes with

conference facilities to accommodate up to 100 people. Lodging includes private rooms for as few as six and up to 44 people. Tables, chairs, linens, audiovisual equipment and wi-fi are included. On-site catering is available, or groups can prepare their own meals in the kitchen. The staff can help to arrange activities to complement the meeting agenda, including dog mushing, skiing or snowmachining in winter, or boating, hiking or bike riding in summer.

SITKA Remote Baranof Wilderness Lodge at Warm Springs Bay opens its cabin and lodge facilities from May through September, with hot springs close by and recreational opportunities available.

JUNEAU Glacier Bay National Park and Preserve, 60 miles west of Juneau, embraces 3.3 million acres of outdoor wonders. Getting there involves flights to Juneau and Gustvus and a ferry ride to Bartlett Cove. The lodge offers 56 rooms with accessibility to hiking trails, cruises and flight-seeing tours. ❑

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BUILDING ALASKA SPECIAL SECTION

ATCO Opens Anchorage Office Alaska presence key to company growth.

ementing Alaska as a focal point for company growth, ATCO Structures and Logistics opened a branch office in Anchorage in October 2009. People familiar with resource extraction in the state will remember ATCO’s long history of providing company housing – more than 50 years on the trans-Alaska oil pipeline, for the U.S. Post Office and for operations and camps for mine and offshore drilling sites. During the ’70s and ’80s, the company had an office in Alaska, and Boris Rassin, executive vice president of business development for ATCO Structures and Logistics, said the ATCO brand has been strong over the years. “We have had a long commitment to Alaska,” Rassin asid. “When we opened this branch, it was like coming home. I saw lots of units while I was in Alaska, and they’re still in use from the ’70s.” According to Rassin, ATCO started business in 1947 as Alberta Trailer Hire. Its mission was to create offices and housing through modular construction. “It was a regional business; but from that background, it grew and diversified in different directions,” he said. Today, ATCO Ltd., with more than 7,700 employees and approximately $9.9 billion in assets, comprises a family of companies providing utilities, energy, structures and logistics and technologies. ATCO’s utilities group is focused on the transportation and delivery of natural gas, electricity and water, primarily in Alberta and the northern

Canada. The company’s energy group owns and operates hydroelectric, coal and natural-gas-fired power plants. The structures and logistics group includes ATCO Structures and Logistics Ltd., which was formed July 1, 2009, with the merging of ATCO Structures, ATCO Noise Management and ATCO Frontec. The new ATCO Structures and Logistics builds on the complementary skills of the three former companies to provide services to clients around the world, according to Rassin. He said ATCO has the project skills to allow it to operate and cater to camp facilities, and the noise-abatement component provides clients the ability to build industrial buildings on the same site as housing and other camp facilities. “It’s a more holistic approach to our business,” Rassin said. “One company has the ability to provide everything from site preparation to operation of camps and industrial construction. We understand the whole project, and clients don’t have to do all this piecemeal anymore.”

SHIELDING PEOPLE, WILDLIFE The Anchorage branch will have the entire scope of services available, including the ability to offer noiseabatement products, Rassin added. “If you build a pipeline through a sensitive area, you have to take many things into consideration,” he said. “The acoustical criteria, for instance – we’ve provided consulting services for the Canadian government with acousti-

BY GAIL WEST

Larry Angel Anchorage Branch Manager ATCO Structures and Logistics

cal products to meet requirements for compressor stations, the pipeline and airports, so the migration of caribou and birds isn’t jeopardized. “I think something like that would be needed in Alaska, as well,” he added. ATCO also offers another product Rassin said could prove to be very useful in Alaska – blast-resistant buildings. “Refineries are inherently injurious environments,” Rassin said. “That’s been recognized by the American Petroleum Institute. Think about the blast at the Texas refinery in which people were killed. “The API has prohibited woodbased trailers on refineries in certain

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zones. ATCO created a new industry to provide steel blast-resistant trailers. They’re quite intricate in design, and include varying blast overpressure and duration levels, special exterior coatings, gas detection and low-, mediumor high-response blast designs. “They provide safety for employees working in areas such as oil and gas, mining and petrochemical plants where safety is a priority,” he added. “Inside, they are just like any ATCO trailer, but they are entirely made of steel.” This technology is one of many ATCO offers now through its Anchorage branch, and as with other ATCO modular units, the blast-resistant buildings will be available to rent or purchase. “If you’re a contractor and working on a short-term job, you don’t want to put lots of capital into it, so you rent,” Rassin said. “That’s one of the reasons we need to be local – we’re creating a rental fleet in Alaska, and we’ll have a full distribution yard.” Another strength of the company, he added, is its focus on creating opportunities in the communities in which it works. Alaska’s resource area is remote, he said, and ATCO services are best used in remote areas. “We get technical support from Calgary,” he said, “but we try to operate as locally as we can. That’s one reason we have strong relationships with First Nations people and with Alaska Native people. “We’ve had a relationship for many years with Arctic Slope Regional Corp.,” he added. “Creating these relationships helps us understand the communities we serve.” As part of ATCO’s worldwide presence, it maintains offices and manufacturing facilities in Canada, the United States, Australia, United Arab Emirates, Chile, Hungary, Mexico, Peru and China. In addition, the company has nonmanufacturing offices in a number of locations in the U.S., Canada and Europe.

CREATING SOLUTIONS “On two ends of the spectrum,” Rassin said, “we’ve completed a construction camp for 20,000 people in the United Emirates – and a camp for 78 in Alaska for the Teck Pogo gold mine south of Fairbanks. A challenging new job we’ve

just been awarded is to provide some services and accommodations for the G-8 Summit in Ontario this June. Everything has to come together perfectly for this two-week summit, and it has to house thousands from all kinds of different places.” Other, more picturesque projects ATCO has completed include the three-story modular, hotel-like structure in Whitehorse, Yukon Territory. In 2007, this structure was used to house athletes during the 2007 Canada Winter Games. Currently, it provides permanent student housing for Yukon College and area seniors. Incorporated into the design for this project was the elimination of noise between suites, triple-pane windows to conserve energy, and an esthetically pleasing exterior finish. One of ATCO’s newest businesses is Urban Space. This company manufactures condos, townhouses and senior housing; medical and long-term care facilities; classrooms and cafeterias; recreational facilities; and commercial and retail outlets. “These types of structures are more affordable to build in smaller towns and villages where it’s expensive to build on site,” Rassin said. “We can build it in our factory, move it and install it. It can be half the price and half the construction schedule.” ATCO’s Anchorage office is currently a one-person operation – Larry Angel, who has more than 30 years experience in the construction industry, 15 of those in the modular-camp business. Angel will provide the face for the company that has built camps across Alaska. During the pipeline construction days, 7,000 ATCO units were moved by truck and barge to pipeline sites – units that included kitchens, diners, dormitories, recreation complexes, post offices, hospitals and maintenance and storage facilities. Today, ATCO projects span Alaska, from the North Slope and Prudhoe Bay to Delta Junction to Toksook Bay. “We think Alaska will benefit from ATCO’s commitment to the north and from the diverse solutions we can provide,” Angel said. “I am excited about the opportunities here in Alaska, and happy to be a part of the ❑ ATCO team.”

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BUILDING ALASKA SPECIAL SECTION

Construction Industry Legal Issues Storm water biggest issue facing state.

n October 30, 2008, Alaska became the 46th state to assume regulatory control of the National Pollutant Discharge Elimination System, or NPDES, under the federal Clean Water Act. This event put the Alaska Department of Environmental Conservation, or DEC, on track to displace the U.S. Environmental Protection Agency, EPA, as the lead permitting and enforcement agency for discharges into Alaska’s waterways. This transition from federal to State control will take three years. As the first step, DEC took control of permits issued to municipal sewage treatment plants, seafood processing facilities, fish hatcheries and log storage/transfer facilities statewide. Now, in the second year of the program, DEC’s authority has expanded to include storm-water discharge by the construction industry. In October 2010, EPA is scheduled to transfer its NPDES permitting authority to DEC over the mining industry, with the oil and gas industry to follow in 2012. Although the program’s first year was relatively benign, the upcoming construction season will be the first test of DEC’s capacity to administer the federal program.

STORM WATER REGULATION Regulation of storm water discharges from construction sites is undoubtedly an important way to protect Alaska’s riparian habitat and aquatic resources. Without onsite controls and so called “best management practices,” runoff from grubbing, clearing, excavation and grading can impact nearby water resources through increased sedimentation. Further, such runoff provides a pathway for harmful chemicals such as fuel, oil, solvents, detergents and paint to reach streams and wetlands. For these reasons, Alaska’s contractors have long been required to obtain authorization from EPA to discharge

storm water from construction activities that disturb more than one acre. Going forward, unless the project is located on the Metlakatla Indian Reservation or in the Denali National Park and Preserve, DEC has become the lead permitting agency in Alaska. This new State authority also extends over construction projects located on Alaska Native regional and village corporate lands. At least for now, DEC’s storm water requirements will be familiar to Alaska’s construction industry. Existing projects initially approved by EPA were simply transferred to DEC. For new projects less than one acre in size, the rules stayed the same – no storm water permits are required. For new projects more than one acre, contractors will need to send their required “Notice of Intent” to DEC, rather than EPA, to begin the permitting process. In December 2009, DEC changed its price schedule and now requires a $490 fee to accompany storm water permit applications. For construction projects located in the “urban areas” of Anchorage, Fairbanks or the city of North Pole, local governments still have a direct role in the process and can require contractors to comply with local erosion control and discharge ordinances, in addition to DEC’s requirements. Although no longer the lead permitting agency, EPA will review and provide comments on new permit applications. EPA also retained authority to conduct inspections of construction sites. The status quo will change in 2011, when DEC will be required to implement new and more stringent storm water requirements under EPA’s recently published Construction Effluent Limitation Guidelines, or ELGs. The new ELGs will require contractors to adopt more aggressive best management practices to reduce erosion and sediment transport from large construction sites. The new federal rules also

BY DAVID DUFFY

David Duffy

include tougher pollution prevention measures, such as requiring onsite controls for discharge of wastewater from equipment and vehicle washing and prohibiting washout of concrete unless managed by appropriate controls. Other prohibited construction site discharges include stucco, paint, form-release oils, curing compounds and other common construction materials, most of which have gone virtually unregulated in the past.

BIGGEST CHANGE But the biggest change for Alaska’s construction industry will be learning how to cope with, pay for and maintain compliance with a new federal rule that sets a numeric limit on the amount of sediment contained in runoff from construction sites. Up until now, no onsite monitoring or testing of runoff from construction sites has been required by EPA or DEC. But beginning in August 2011, EPA will require DEC to enforce a limit of 280 nephelometric turbidity

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took over the NPDES program during former Gov. Palin’s administration. At the time, the governor hailed the event as a step toward Alaska’s independence over our natural resources. From my perspective as a construction lawyer, the current storm water protections are adequate to protect the state’s water resources – regardless of whether they are implemented by EPA or the State. Although EPA’s new rules may provide a measurable benefit to the state’s water resources, DEC’s pending adoption of more stringent regulations will come at a cost to both the private and public sector. Whether this cost is necessary presents an important policy question, particularly in rural Alaska. For now, contractors are encouraged to obtain or update their certifications in erosion and sediment control through a course offered by the Associated General Contractors of Alaska, or AGC, which has information online at www.agcak.org. This course was developed in conjunction with various federal and State agencies and is probably the best source of information available to Alaska contractors about how to stay in compliance with current and pending rule changes. A similar, but more heated debate will occur in coming months as DEC takes regulatory control over discharges from both the mining and oil and gas industries. Fortunately for the construction industry, storm water regulation is much less complicated than controls over mining and oil and gas discharge permits. To its credit, DEC is doing a good job in making information about these changes available online at www.dec.state.ak.us/water/ npdes/index.htm. I encourage them to continue to do so in the future. ❑ About the Author David Duffy is an associate in the Anchorage office of Oles Morrison Rinker & Baker LLP and is a member of the construction and commercial litigation practice groups. Prior to going into law, Duffy was the chief executive officer for an Alaska Native village corporation. Before moving to Alaska in 2000, David gained extensive natural resource and environmental management experience working for tribal governments and organizations in New Mexico.

Up until now, no onsite monitoring or testing of runoff from construction sites has been required by EPA or DEC. But beginning in August 2011, EPA will require DEC to enforce a limit of 280 nephelometric turbidity units, or TBUs, on all sites more than 20 acres in size.

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units, or TBUs, on all sites more than 20 acres in size. Within the next four years, turbidity monitoring will be required on construction sites greater than 10 acres. Prior to now, contractors were never required to conduct testing. People may wonder what 280 TBUs looks like and how it is measured. To put the new 280 TBU discharge limit into perspective, one NTU is the maximum limit for drinking water. The waters of the upper Kenai River, under normal conditions, typically carry less than 20 NTUs during normal conditions. The silty waters of Tustumena Lake vary between 40 NTUs and 50 NTUs. However, Anchorage’s downtown Ship Creek is capable of discharging 600+ NTUs into Cook Inlet at the peak of spring runoff. The turbidity of upper Cook Inlet and Knik Arm waters range from 200 to 600 NTUs, with reported lows under 30 NTUs and highs that exceed 800 NTUs. Sampling for turbidity is relatively easy and can be accomplished in the field with portable meters, or by sending samples into a lab. Typical tests run about $25 per sample. Although the new federal storm water regulations will reduce pollution from large construction sites in Alaska, they will also increase the costs of construction for both private and publicly funded projects. The new rules will also require increased inspections by DEC officials to ensure that project owners and contractors are in compliance. Although the goals of reducing sedimentation and pollution are laudable, the actual benefit of such increased regulation over the state’s construction industry is less clear when many other common sources of storm water pollution remain unregulated. Runoff from road sand, salt and de-icing chemicals is a prime example. Unregulated agricultural practices is another. In all fairness, even if Alaska had not taken over the NPDES program, EPA would have implemented these new ELGs through its Construction General Permit, or CGP. Now that DEC administers the program, the State anticipates putting its version of the new storm water standards out to public comment in late summer or early fall and plans to adopt its final rule in February or March 2011. Perhaps ironically, DEC

BUILDING ALASKA SPECIAL SECTION

Alaska

Construction Academies

Photo by Charlie Carlson, Juneau Construction Academy

Gilmore White (Metlakatla) on the left and Patrick Iler (Juneau) fit a set of rafters during a session of Carpentry 1, a class organized and financed by the Juneau Construction Academy and conducted at the University of Alaska Southeast Technical Education Center.

Programs train youth, adults across Alaska. BY GAIL WEST

ost employers would be grateful if they had access to a steady stream of readily available, tested, trained and reliable applicants. Today, builders are among the lucky ones – through the Alaska Construction Academies. Funded by the Alaska Department of Commerce,

Community and Economic Development and the Denali Commission, there is such a pipeline in place and working well. Created to recruit and train Alaska’s youth and adults interested in the construction trades, the first academy was established in Anchorage in 2006. It was

formed through a partnership of the Associated General Contractors of Alaska, Anchorage Home Builders Association, Anchorage School District, Alaska Works Partnership, Alaska Department of Labor and Workforce Development and Cook Inlet Tribal Council and began with a $1 million legislative grant

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and the charge to serve 200 youth and adults within the year. At the end of six months, the Anchorage academy had surpassed those goals – providing training for more than 450 students and more than 150 adults. The success of the academy demonstrated to lawmakers the need and the desire for this type of training, and resulted in a $3.5 million annual appropriation from the Legislature to expand. Using this appropriation, construction academy sites were opened in Fairbanks, Juneau, on the Kenai Peninsula, in Ketchikan and the MatanuskaSusitna valleys. “The partnerships in creating all these urban academy sites were crucial,” said Kathleen Castle, executive director of the Alaska Construction Academies. “We have the same kind of partners in all six urban sites – the local school district, an adult training provider (generally Alaska Works Partnership), the State of Alaska job centers, Native corporations, Associated General Contractors of Alaska and the local and state home builders’ associations. All the academy sites have both adult and student components.” By 2008, AGC, which administered the academies, realized the growth needed an enhanced organization and created a separate 501(c)3 nonprofit, the Construction Education Foundation. The CEF also functions as the training arm of AGC and the construction academies became a foundation program. According to Castle, one of the best things about the training all students and adults receive, was that it was put together by the construction industry and students that complete accredited programs receive industry-recognized certifications. “At the student level,” she said, “we often use a core curriculum that teaches tool identification, blueprint reading and construction math skills. At the adult level, the program tends to be 40- to 60-hour courses in carpentry, electrical, plumbing and welding skills. “Each local academy has an advisory board that includes employers, and the employers were surveyed to find out what they were looking for in entrylevel skills. Almost all we asked said employees needed to be able to read

tape measures and to drive a fork lift.” The curriculum developed from this survey includes those two skills, as well as training in carpentry, welding, weatherization, sheet metal HVAC and other skills for adults. For students, the schools use the National Center for Construction Education and Research – including classes on surveying and blueprint reading, construction logistics, digital electronics and introductory courses in such trades as plumbing, electricity, carpentry, masonry and welding. In addition, the academies

offer short-course certifications in fork lift safety, OSHA 10, scaffolding fall protection and first aid/CPR. They also offer North Slope Training and Cook Inlet Training certificates.

FINDING WILLING WORKERS Recruitment for all classes, student and adult, is accomplished in a variety of ways – from television and radio spots to fliers, newspaper ads and People Mover bus ads in Anchorage. Juneau experimented once by advertising in a movie theater, but Charlie Carlson,

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an employee of South East Regional Resource Center and admissions coordinator for the adult program at the Juneau Construction Academy, said he didn’t think that was successful. Despite the lack of success through movie advertising, recruitment at all the urban academy sites has been brisk and successful. “Since the beginning of this fiscal year, July 1,” Carlson said, “we’ve received 115 applications. “In all our classes, we try to instill the necessity to be on time, to be reliable and to start producing when you arrive at work,” Carlson added. “That’s something valuable in and of itself.” Carlson stresses to all the Juneau adult students that this is their chance to get a foot in the door of the construction industry if the students take them seriously. One of the Juneau adult programs biggest successes, according to Carlson, is a former prisoner. “He took classes while he was at a half-way house and he proved to be very responsible,” Carlson said. “Now, he’s been working for the same employer for the past couple of years and he’s a constructive member of society.” Finding available, skilled workers, was proving problematic four years ago when the academies were created. Castle said employers were having problems finding Alaskans trained in the construction field. Many construction hands were being hired out of state for Alaska jobs. According to Castle, approximately 20 percent of Alaska’s construction workers come from the Lower 48. The academies set out to correct that problem. “It was difficult bringing high school youth into construction,” Castle said. “There was often a stigma attached to those youth who didn’t want to become doctors or lawyers or something that required a college degree. “Smaller companies, especially, were having trouble finding qualified workers who would stay in the jobs,” she said.

RISING INTEREST, RISING ENROLLMENT Rick Rios, coordinator for Career and Technology Education for the Anchorage School District, said that once Anchorage schools began offering

www.akbizmag.com • Alaska Business Monthly • May 2010

Photo by Charlie Carlson, Juneau Construction Academy

Zach Heppner (left) receives direction form Brad Austin, Plumbers and Pipefitters Local Union 262 training coordinator, during a Juneau Construction Academy class in residential plumbing. Heppner is now an apprentice with Local 262.

construction academy classes, enrollment climbed from 240 in the first year to 1,067 last year. Construction classes are offered in six of the Anchoragearea comprehensive high schools as well as at King Career Center and several middle schools. “The Anchorage School District also added after-school programs, so kids whose class load is full can take construction-oriented classes after school hours and on weekends,” he said. The six urban academies have provided training to more than 6,500 students and more than 800 adults over the past two years and have proven so successful that this year five rural academies are opening their doors – in Nome, Bethel, King Salmon, Dillingham and Kodiak. “The rural programs are all just getting started,” said Castle. “Generally, they’ll be doing from 10 to 20 days of training for a combination of youth and adults. They’re going to offer carpentry with weatherization as the context. In many cases, they’ll incorporate the blower door in what they’re learning so they can get jobs with housing authorities in villages, learning how to weatherize and retrofit homes.” Each of the rural academies incorporates partnerships that include the Native corporation of the area as well

as the school district, housing authorities, the DOL, job centers and Alaska Works Partnership. The more experienced sites, the urban ones, have worked hard to enhance their programs. Just north of Anchorage, Ray DePriest, the director for Career and Technical Education for the Matanuska-Susitna Borough School District, said the Mat-Su academy offers classes in all the valley high schools. “We’ve taken on projects to help accelerate our course offerings,” DePriest said. “We have a group of students at one of the schools building a portable classroom. Last year at Houston, students began to design and do the preliminary work for a welding-lab upgrade. “We took a significant amount of our resources and put them into a firemarshal designed welding lab. The students built the concrete, masonry walls and we were able to offer welding classes for the first time.” As a result, the Construction Education Foundation gave the Mat-Su school district an additional $100,000 in January to complete the lab and DePriest said his students are working now to finish it. “When we’re done next year,” he added, “we’ll have a world-class welding facility for high school and

www.akbizmag.com • Alaska Business Monthly • May 2010

adult students in the Houston area.” The welding program in Fairbanks turned out one of that city’s success stories, according to Randy Cheap, a field representative for Alaska Works Partnership.

“There should be housing construction on Fort Wainwright this coming year,” he said. “We’re hoping that turns into jobs for new employees and that it ties into apprenticeship opportunities. We have those people

and to get certified in what they do – often in those programs. “The builders have really taken ownership of this adult academy. Since the instructors come from the association,” he added, “they are business people

“We have limited space for welding students,” Cheap said, “but a young man came to the Delta program from Tok. He took a welding class and was so excited about it. He was focused on getting into the construction trades. “After that, he moved to Fairbanks and took a carpentry class. Before he finished it, he had the opportunity to move into a welding apprenticeship as a welder helper. Since then, he’s been working on the Slope.” Fairbanks is one of the areas in Alaska hoping for a slight uptick in construction this year, Cheap said.

ready – people who have dedicated their time to improving themselves.” At the Kenai Peninsula academy, the director of the adult construction academy is, himself, a builder and the president of the Kenai Builders Association. Bob Hammer, Hammer Enterprise, said the academy in Kenai is slightly different from other locations around the state. “All the instructors are members of the association,” Hammer said. “We don’t intend to take away from the technical schools or the college vocational technical programs. We’d like our students to go on in their training

who actually work in the field and they have a vested interest in turning out work-ready students.” Hammer said the academy built a shed last year and donated it to the Friends of Athletes with Disabilities, a Special Olympics group, to store their equipment. “There’s also a playground committee in Soldotna and we’re working with them to build a big community playground.” Hammer said one of his greatest successes was a kid named Chris. “He came to a Workforce Development class at Kenai high school one

www.akbizmag.com • Alaska Business Monthly • May 2010

day,” Hammer said. “He was going to an alternative school and he had a great, big, red Mohawk. He was kind of cocky, arrogant, but I hired him to work for me one summer, then he moved on to another job. Now he’s back for more construction education. No more red Mohawk.”

FINDING JOBS One of the primary components of each academy is the job search. In Anchorage, Rios said the Anchorage School District has embedded career guides from the Department of Labor on the King Career Center campus. “The career guides help employers see that these high school students in the academies have set their priorities and they want to work in the construction trades,” Rios said. Gary Abernathy, one of two career guides for the DOL at King Career Center, calls himself a connector between employers and students. “We have the only job center in Alaska dedicated to youth right now,” Abernathy said. “It’s a pilot program, but it’s growing.”

Youth take a beating about lack of motivation, Abernathy continued, about not being interested. “But I can tell you there are 20 seniors right now giving up their spring break for these classes in order to get a better job when they graduate. These kids will graduate with five certifications,” he added. The Alaska Construction Academies work hard to recruit youth and adults from across the spectrum and crosses all gender and ethnic lines. One young woman, currently appearing in television ads for the academies, is now a journeyman electrician. In both urban and rural academies, partners include local Native corporations that bring additional resources to the table to train Native youth and adults. For employers seeking qualified, motivated people in the trades, all of this is good news. According to research conducted by the construction foundation and its partners, Alaska still needs about 1,000 new workers every year – just to make up for those retiring and to fill slots being given

to Outside employees, said Castle. The construction academies are turning out those local employees – and earning national awards along the way. In 2008, the U.S. Department of Labor Employment and Training Administration presented ACA with an award for “Leveraging the Power of Partnerships,” and the Construction Users Roundtable presented ACA with an award for “Outstanding Contribution in Construction Industry Workforce Development.” Newly trained employees are taking their places right alongside their counterparts on construction sites across the state, thanks to the academies. They’re also helping to contribute to the state’s economy, not taking their earnings south. “This is a program construction employers have asked for,” said Cheap. “Its success will come from how they use it. The people we’re turning out can’t get any better training than what we’re giving them.” To get more information about the construction academies, go to www. alaskaca.org. ❑

www.akbizmag.com • Alaska Business Monthly • May 2010

BUILDING ALASKA SPECIAL SECTION

Photo courtesy of PCL

Summer Construction Bonus

Defense and stimulus money means more projects. Anchorage railroad depot. Originally built in 1942, it is on the National Register of Historic Places.

BY HEIDI BOHI

here are two seasons in Alaska: winter and the construction season. As the 2010 building frenzy gets under way this month, between now and mid-October, weather and daylight are just two factors helping some of Alaska’s top commercial and institutional construction companies complete some of the state’s biggest projects, also comprising the bulk of their annual work. In addition to Mother Nature’s cooperation, many of these larger companies report they are entering the season with an added advantage: jobs resulting from American Recovery and Reinvestment Act (ARRA) money, commonly referred to as stimulus funds. At a time when the country anxiously awaits news of base closures nationwide, this is one sign the government is continuing to invest in the long-term future of armed forces based in Alaska, critical for sustaining communities such as Fairbanks where the economy is dependant on the military. Of the estimated $929 million slated for Alaska, more than half is going to capital improvements, including $197 million to Department of Defense

programs and projects, and $49 million to the U.S. Army Corps of Engineers.

BIG BUSINESS Construction is Alaska’s third largest industry, pays the state’s second highest wages, and employs about 21,000 workers, with an annual payroll of more than $1 billion, accounting for 20 percent of the state’s economy. Although construction continues year-round, even in Alaska, for about 500 companies that bring in annual receipts of $2.1 billion, a quick drive around communities in the state’s primary construction centers – Anchorage, Kenai Peninsula, Ketchikan, Kodiak, Fairbanks – are a reminder the summer construction season is when a lot of Alaskans rely on the industry to earn the biggest share of their annual wages. For every $1 million spent on construction, it is projected 10 to 15 jobs are created, and many of this season’s projects range between $20 million and $40 million. “As we have seen in the past, a late spring, early winter, or a plain lousy summer can make a big impact, and any two or more of these can cause

a lot of hurt to projects and peoples’ wages,” says John MacKinnon, executive director of the Associated General Contractors Alaska. This is why heading into the 2010 season with the ARRA advantage and increased government spending the industry is giving extra thanks to the construction gods. All in all, MacKinnon says, Alaska is better off than the rest of the country: while the other 49 states and the District of Columbia report declines, Alaska shows an increase in construction employment resulting in 100 new jobs. A sampling of the season’s projects follows.

PCL CONSTRUCTION SERVICES ALASKA RAILROAD HISTORIC DEPOT RENOVATION Restoring the white building currently housing the Alaska Railroad Corp.’s administrative offices involves everything from installing modern conveniences and environmental controls to moving outdated mechanical and electrical systems currently housed in the basement, while also making them

www.akbizmag.com • Alaska Business Monthly • May 2010

historically accurate. The $5.5 million project, which broke ground this month, is slated for completion in January 2011. Besides practical improvements, PCL leaders say it will restore the character of the building to its full 1940s glory as much as the budget will allow, including the roof and windows. While the upstairs will be renovated so it can continue to be used for administrative offices, the downstairs passenger areas will be restored so construction activity does not affect the railroad’s visitor season.

WARRIOR IN TRANSITION FORT WAINWRIGHT With design work being completed this month and demolition of existing buildings getting ready to start, PCL Construction will be ready to take on the design-build for three separate buildings of the warrior-in-transition complex at Fort Wainwright, providing housing for soldiers recuperating from injuries sustained fighting overseas. The $21 million complex includes the primary facility, a 32-bed barracks that is 20,000 square feet, an administrative and operations facility of 8,200 square feet, a soldier and family assistance center that is 6,600 square feet, with counseling offices and a day care center. Construction will be finished by the end of summer 2011.

F-22 FIELD TRAINING DETACHMENT FACILITY PCL is constructing a 13,000-squarefoot training facility for maintenance crew to support the bed-down of the new F-22 Raptors fighter aircraft at Elmendorf Air Force Base. Project elements of the steel frame structure include a concrete foundation meeting Alaska seismic and frost heaving requirements, insulated metal skin and a standing-seam roof. The facility will include secure and unsecure offices, classrooms and two high-bay maintenance training areas. The scope of work also includes fire suppression and detection features, an intrusion-detection system, environmental controls, communications, utilities, pavements, parking force protection, site improvements and contaminated soil remediation. The $4.7 million project broke ground this spring, foundations will be poured this month, and the timeline calls for completion in March 2011. www.akbizmag.com • Alaska Business Monthly • May 2010

TED STEVENS ANCHORAGE INTERNATIONAL AIRPORT

Concourse B off T Ted Stevens A Anchorage Airport. C d St h IInternational t ti l Ai t

PCL is putting the finishing touches on the Ted Stevens Anchorage International Airport South Terminal Seismic and Security Retrofit, Phase II. The project consisted of the remodel and retrofit of the A and B concourses and the remaining portions of the main terminal not completed in Phase 1. The scope of work included abatement of hazardous materials and demolition of portions of the existing structure, seismic upgrades, interior and exterior architectural finishes, roofing and mechanical and electrical system upgrades. The new upgrades were designed to bring the terminal and systems up to code, and to revise the architectural aspects to more closely match the C Concourse. Phase II was completed under budget and the entire project should be completed at the end of the month.

Airport photos by © Ken Graham Photography.com

Left: Energy-efficient heating and ventilation were included in the mechanical and electrical system upgrades at Ted Stevens Anchorage International Airport.

Terminus of B Gates at the Anchorage airport.

www.akbizmag.com • Alaska Business Monthly • May 2010

DAVIS CONSTRUCTORS AND ENGINEERS INC. PROVIDENCE ALASKA MEDICAL CENTER Valued at about $45 million, one of this summer’s biggest projects for Davis Constructors and Engineers is the wrap-up of the Providence Alaska Medical Center medical office building on the southwest campus. The 108,000-square-foot steel structure, scheduled for completion in June, includes an ambulatory surgery center, a sleep lab, a neurological clinic and an orthopedic clinic. During peak construction, which started last May, 130 people were on the job. One of three office buildings built by Davis, each structure was designed to use common features of a hub building that centralizes elevators, circulation ducts and other common building functions, allowing Providence to phase the buildings in without disrupting surrounding operations.

Providence medical office building is nearing completion.

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Tikahtnu Commons Regal 16 theater entrance in Anchorage.

SAND LAKE ELEMENTARY SCHOOL Additions, modifications and renewal of the existing Sand Lake Elementary School, scheduled for completion in August, will result in 26 classrooms, plus an art room and a music room, a gymnasium, multi-purpose room, remodel, a 43,000-square-foot addition and remodel of approximately 9,300 square feet, and lots of windows for the largest Anchorage School District elementary school. The $17 million project, employing 100 workers during peak construction, is a steel structure with metal siding and EIFS exterior finishes.

Photo courtesy of Davis Constructors

Photo courtesy of TK Architects

TIKAHTNU COMMONS In addition to including Alaska’s first IMAX screen, the new 16-screen theater complex at Tikahtnu Commons in Anchorage is a new prototype for Regal Entertainment Group’s theaters nationwide. To future moviegoers, what makes the 140,000-square-foot structure exciting is the state-of-the-art theater and enhanced food court. But to Davis Constructors and Engineers, the $24 million facility, considered the anchor of this growing new retail center, is interesting because of the aggressive schedule: it will be finished next month after only 297 days. “This month, we’ll have contractors going out the back door, while there are others coming in the front door – it is a scheduling feat,” says Josh Pepperd, president, of the 180 people employed on the project. The concrete foundation is also complex, containing more than 60 elevation changes between the theaters, so it’s like having 16 buildings in one.

Renovations at Sand Lake Elementary School in Anchorage are under way. www.akbizmag.com • Alaska Business Monthly • May 2010

Image courtesy of Res3D

Photo courtesy of TK Architects

Aero Medical Clinic at Elmendorf Air Force Base.

ELMENDORF AIR FORCE BASE

Tikahtnu Commons Regal 16 theater entry columns.

The Aero Medical Clinic, specifically for flight services, is a two-story, 35,000-squarefoot facility that will be completed in September 2011. The $20 million LEED silver, sustainable green building with a glass and metal panel exterior includes high efficiency mechanical systems and an ambulance garage, and is located next to the existing hospital. During peak construction of the 540-day schedule, 100 people will be employed.

“Employers love to see that students have leadership skills and hands-on experiences.” • Anna Marie Ferntheil Junior, Civil Engineering

UAA SCHOOL OF ENGINEERING Hands-on learning for tomorrow’s engineers Engineering is a very hands-on discipline and it’s critical for students to gain practical experience before entering the engineering workforce. With hands-on learning at the core of its curriculum, the School of Engineering recently acquired new lab space to open up a multitude of new activities for students to engage in applied engineering and innovative design. The Engineering Design Studio and Rapid Prototype and Manufacturing Lab equip students with the tools they need to design and fabricate a wide variety of projects for classes, industry and national competitions.

UAA School of Engineering • Engineering Alaska’s Future Today • www.engr.uaa.alaska.edu • 786-1900

UAA IS AN EEO/AA EMPLOYER AND EDUCATIONAL INSTITUTION.

www.akbizmag.com • Alaska Business Monthly • May 2010

RSA

Bethel, Alaska

Kevin G. Smith Photography

Image courtesy of Res3D

Kilbuck Elementary School

Wasilla—191 Swanson Avenue, Suite 100 357-1521 Ɣ Anchorage—2522 Arctic Boulevard, Suite 200 276-0521

F22A Weapons Load Crew Training Facility at Elmendorf Air Force Base.

F-22A WEAPONS LOAD CREW TRAINING FACILITY

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The F-22s on Elmendorf Air Force Base will have a new weapons load and training center by July 2011. Construction starts in June on this $12 million, 18,000-square-foot facility that will be LEED-silver rated. The single-story metal panel building includes special construction in the concrete floor slabs so it can withstand the heavy loads. The hangar has one bay and will be used to train military personnel to load F-22s with dummy weaponry.

F-22 SQUADRON OPERATIONS AND AIRCRAFT MAINTENANCE HANGAR FACILITY A six-bay F-22 hangar and squad operations center, scheduled for completion next year, will have a three-story office building attached to it and is the centerpiece of the F-22 program, housing planes flown by top pilots and providing office space for squadron command, mission planning and operations staff. This LEED-silver rated facility will provide state-of-the-art systems that come out of floor and hook into the F-22s, providing power for airplane auxiliary systems. The steel hangar is 35,000 square feet and office space occupies 48,000 square feet. The exterior shell will be erected this month while preparations are made to pour interior concrete floor slabs. The project will eventually employ 150 workers.

www.akbizmag.com • Alaska Business Monthly • May 2010

NEESER CONSTRUCTION INC. (NCI)

Photo courtesy of Neeser Construction

VALLEY PRISON Goose Creek Correctional Center, a $216 million design-build contract with the Matanuska-Susitna Borough, will be constructed on a 150-acre site. The facility has five separate structures designed to create a campuslike appearance and function: general population housing (GPH), support services (SV), outside administration (OA), a warehouse (WH) and a vehicle maintenance shop (VMS). Total square footage is 450,000 square feet and the facility has a capacity for 1,536 inmates. GPH and SV will have insulated tilt-up concrete wall panels and structural steel. The three remaining structures – OA, WH and VMS – are sited outside the secure perimeter and will be constructed using brace frame structural steel with insulated architectural metal panel wall systems. More than 600 Alaskans will be employed on the project, which began in April 2009 and will be completed by 2012.

Goose Creek Prison construction site, circa fall 2009.

NOME HOSPITAL The first and largest Indian Health Services (IHS) project funded by ARRA, and one of the largest rural construction projects in Alaska history, the $171 million Norton Sound Regional Hospital in Nome is being paid for with $146 million in ARRA money, plus $15 million from the Denali Commission, and $10 million from IHS. The 14-bed facility also includes several primary care and dental clinics, food and laundry services, and administrative facilities. Constructed on a pile foundation using a structural steel frame, concrete decks and insulated

www.akbizmag.com • Alaska Business Monthly • May 2010

Courtesy of Neeser Construction

Site of Nome hospital.

exterior panel systems, the hospital is 150,000 square feet and is scheduled to be complete by 2012. NCI projects more than 35 percent of the 150 workers employed on the project will be Alaska Native.

WATTERSON CONSTRUCTION WARRIOR IN TRANSITION FORT RICHARDSON Fort Richardson’s $26 million warrior-in-transition rehabilitation facility will offer transitional health care barracks for recovering soldiers. The complex, slated for completion next year, includes four buildings. A two-story, 45,000-square-foot dorm accommodates 80 people. Battalion headquarters is a single story, 8,500-square-foot building. The company operations facility is a one-story, 9,200-square-foot building. The soldier and family assistance center is a single-story, 7,500-square-foot facility where families are reunited with soldiers. Adjacent to the Elmendorf Air Force Base Hospital and the new Veteran’s Affairs clinic, heated sidewalks throughout the complex will allow patients to walk outside with ease during winter months. The project will employ 60 people during peak construction.

VEHICLE MAINTENANCE FACILITY Located on Fort Wainwright, this $22 million vehicle-maintenance facility broke ground in April and is slated for completion in July 2011. There are 27,500 square feet on the first floor and 6,500 square feet on the second floor, which is dedicated to administrative offices. The project includes an overhead crane and solar panels in the metal siding and will be surrounded by an 11-acre concrete parking lot. During peak construction the facility will employ 40 people. ❑

www.akbizmag.com • Alaska Business Monthly • May 2010

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ May 2010

I G H T

UNIVERSITY

ALASKA

Heather Hudson was appointed director of the Institute of Social and Economic Research at the University of Alaska Anchorage. Hudson also was hired as a professor of public policy for the UAA College of Business and Public Policy. Hudson previously worked as Fulbright Visiting Policy Research Chair at Carleton University in Ottawa, Canada. She also has worked as professor and director of the Communications Technology Management and Policy Program at the University of San Francisco. Hudson’s research work has included studying telecommunications service and satellite telemedicine in rural Alaska. Richard Caulfield was appointed provost at the University of Alaska Southeast. He previously worked as director of the University of Alaska Fairbanks Tanana Valley Campus. Caulfield has been a UAF faculty member for more than 25 years.

. UKPEAGVIK IÑUPIAT CORP.

Chris Morgan was hired as chief financial officer . for Ukpeagvik Iñupiat Corp., the Alaska Native village corporation for Barrow. He has more than 20 years of accounting and finance industry experience in Alaska. His past posts include vice president of finance for Harbor Enterprises and chief financial officer for Arctic Slope World Services, a subsidiary of Arctic Slope Regional Corp.

SOLSTICE ADVERTISING LLC

Elias Rojas joined Solstice Advertising LLC as director of client services. His experience includes work in campaign management, philanthropy and strategic planning. He has worked with nonprofit organizations and political candidates in Alaska, California and New York City.

WINGS

ALASKA

Rob McKinney was appointed president of Juneau-based Wings of Alaska. He is an experienced commercial pilot. He earned a degree in aviation technology from Purdue University and a master’s degree in business administration from Ellis College. The air carrier operates scheduled service to Southeast Alaska communities and, as SeaPort Airlines, serves 10 Lower 48 cities.

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V E S

THOMPSON

AND

COMPILED BY NANCY POUNDS CO.

Tim Thompson joined Thompson and Co. as a partner. Thompson worked as director of external affairs and corporate spokesman for the Alaska Railroad Corp. Thompson and Co. formerly operated as Bernholz and Graham Inc., until Jennifer Thompson Thompson, current president, purchased it last April. Sophie Shafter will handle social media marketing. She previously worked for the Anchorage Convention and Visitors Bureau communications department. Ariel Walsh serves as account coordinator and officer manager. Walsh has more than 10 years of experience in the banking industry. Tara Stevens was promoted to account executive. She has worked three years at the firm.

FIRST NATIONAL BANK ALASKA

Allen Hippler was promoted to vice president at First National Bank Alaska. Hippler is Bethel branch manager. Debbie Olson was appointed assistant vice president. She serves as operations supervisor at the Kodiak branch. Chris Longacre was appointed assistant vice president and loan officer II in Wasilla. Longacre has been with First National for five years. Jaime Vinette was chosen business development officer. Vinette has more than 10 years experience in the banking industry. Hank Wiedle was appointed assistant personnel officer in the human resources department. Wiedle has more than 26 years of human resource experience.

GINGER

Guy Conley, head chef at Ginger restaurant in Anchorage, was nominated as a semifinalist in the 2010 Best Chef Northwest category of the James Beard Foundation Awards. Conley was chosen from among 21,000 entries to be one of 20 semifinalists in his category. Winners will be announced this month.

HDR ALASKA

Tim Gallagher was promoted to vice president at HDR Alaska. He is a professional engineer and serves as business development manager for the company. He worked as commander and district engineer of the U.S. Army Corps of Engineers Alaska Gallagher District before joining HDR Alaska. Wescott Bott was appointed manager of the HDR Alaska water business group. He joined the company four years ago. Bott, a professional engineer, has 10 years of engineering experience. Brian McMillen earned his professional Bott architect registration in Alaska. McMillen is the company’s federal design team coordinator. James Brady was chosen as the company’s fisheries section manager. He is a senior fisheries scientist with HDR Alaska. His 30-year career in Alaska includes managing his own firm, McMillen North Cape Fisheries Consulting, serving as a supervisor for the Alaska Department of Fish and Game Central Region Commercial Fisheries Division, and as manager of the salmon and herring fisheries in the Prince William Sound/Copper River area. Tobin Lilly was hired as a geographic information systems analyst. He previously worked as the GIS database administrator and managed GIS-based programs at Shaw Air Force Base in South Carolina.

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www.akbizmag.com • Alaska Business Monthly • May 2010

I G H T

CREDIT UNION 1 Scott Butterworth was promoted to senior vice president of lending at Credit Union 1. Butterworth previously worked as vice president of lending. He has more than 27 years of lending experience at Alaska financial institutions. Butterworth

CIRI ALASKA TOURISM

Liz Johnson was hired as sales manager for CIRI Alaska Tourism’s marine division, which includes Kenai Fjords Tours, Mariah Tours and Prince William Sound Glacier Cruises. Johnson previously worked as tourism sales manager for the Fairbanks Convention and Visitors Bureau. Dee Buchanon joined CIRI Alaska Tourism as director of marketing. Buchanon has more than 20 years experience in Alaska marketing, public relations and advertising, including work as director of sales and marketing for Hawaiian Vacations. CIRI Alaska Tourism is a subsidiary of Cook Inlet Region Inc.

V E S

SPONSORED BY NORTHERN AIR CARGO

RASMUSON FOUNDATION

Bill Corbus, Linda Leary and Aaron Schutt joined the Rasmuson Foundation as committee members. Committees research and provide recommendations to the 12-member board of directors. Corbus was appointed to the audit committee, and is currently president and director of the Alaska Energy and Resources Co. in Juneau. Leary was assigned to the program-related investment committee. She is president and owner of Carlile Transportation Systems Inc. Aaron Schutt was appointed to the grants committee. Schutt is senior vice president and chief operating officer for Doyon Ltd. in Fairbanks.

Corbus

Leary

Schutt

STATE GOVERNMENT

Elisabeth Schafer, paralegal in the Sitka District Attorney’s Office, has been chosen as Woman of the Year by the board of Sitkans Against Family Violence. Schafer has worked as a paralegal in Sitka since 2002. The award honors service and dedication to women and children in the community.

RESOURCE DATA INC.

Johnson

Buchanon

Kevin Browning was hired as system administrator at Resource Data Inc. in Anchorage. Browning has more than two years of experience working as a system administrator. He earning a bachelor’s degree in management information systems

at the University of Alaska Anchorage. Marlin Fowler joined the company’s Anchorage office as a senior programmer/analyst. Fowler has more than 16 years of programming experience. In the Juneau office, Margaret Brockhaus was hired as a project manager/senior business analyst. Brockhaus has more than 20 years experience as an information technology professional. Dallas Monk was hired as a programmer/analyst. Monk earned a bachelor’s degree in computer science from Radford University.

DENALI ALASKAN FCU

Denali Alaskan Federal Credit Union announces Heather Flynn and Werner Waak as the two newest members of its board of directors, overseeing the strategic direction and development of Alaska’s third largest credit union. Flynn brings more than 40 years of professional, political and volunteer experience in nonprofit development, management, fundraising and community relations to the Credit Union’s sevenmember board. A Willamette University graduate, she has directed two Anchorage nonprofit human services agencies meeting the needs of victims of domestic violence and sexual assault, pregnant teens and recovering substance abusers. Waak joins the board after volunteering on the Credit Union’s supervisory committee. He served 23 years in the Air Force before joining the staff at the Municipality of Anchorage, where he currently is senior administrative officer of its purchasing department. He received a bachelor’s degree in occupational education from Wayland Baptist University, and a Masters of Science in Operations Management from the University of Arkansas. He is currently on the board of directors of the Birchwood ❑ Recreational Shooting Park.

Did someone in your company receive a promotion or award? Please submit information, for possible inclusion in Right Moves, to editor@akbizmag.com. Information received is published, space available, two months after receiving the press release. Right Moves is compiled by Nancy Pounds of Anchorage and sponsored by Northern Air Cargo.

www.akbizmag.com • Alaska Business Monthly • May 2010

OIL & GAS OPINION SPECIAL SECTION

Photo courtesy of Bob Poe.

Bob Poe.

The All Alaska Gas Hub Let’s empower Alaska. BY BOB POE

here is no single issue that will have more impact on Alaska’s economic future, on in-state employment, on our kids’ future, than energy security. Very soon Alaskans will be facing a real energy crisis. Southcentral Alaska is literally running out of gas. Rural and Interior Alaskans are paying crushingly high prices for energy. And, electric power generation up and down the Railbelt is at significant risk if new gas supplies don’t become available as early as 2015. The departing Parnell Administra-

tion’s Pipeline Coordinator, Harry Noah, testified to a Legislative hearing last December that Alaska had become “wrapped around the axle” on a gas pipeline. He said “civil war was brewing” between Alaska politicians on which way a pipeline should go. He might be right. Right now politicians are lining up to support the “bullet line,” or are hanging on to their support for the Alaska Gasline Inducement Act (AGIA) effort and the Denali Pipeline, and still others are steadfastly

supporting the gas pipeline to Valdez for liquefied natural gas (LNG) exports. But we have a moment, right now, to empower ourselves – to build an All Alaska Gas Hub to Fairbanks. The State of Alaska should build a large capacity gas line from the North Slope to Alaska’s Interior, creating the All Alaska Gas Hub as a central connection point for multiple gas pipelines in Alaska – like the Henry Hub in Louisiana. Why? If we did this Interior Alaskans would have easy access to gas. The hub could easily supply a “bullet

www.akbizmag.com • Alaska Business Monthly • May 2010

line” to Southcentral Alaska, and, when export contracts are reached, could supply the “All Alaska Pipeline” to Valdez. And, shipping liquefied petroleum gas (LPG) on barges out of Nenana to Western Alaska would be possible. Each of Alaska’s competing gas lines suffers the same problem. Before any of these pipelines can deliver even a thousand cubic feet (MCF) of gas they each must travel 800 miles to the North Slope. Under the All Alaska Gas Hub concept, the first and toughest 400 miles are met through the State’s investment, making each of the competing pipelines easier to finance once they are ready. Since it is in Alaska’s interest to see this pipeline developed now, we can afford to take the longer view. The State could also build for the future by preparing a larger pipeline corridor to allow for future expansion, and build in financial credits to the deal to encourage competing projects to move forward more quickly. Since North Slope oil producers make part of their revenue today from tariffs on trans-Alaska oil pipeline, they likely will want to invest in the All Alaska

Gas Hub once they believe the state is serious about making it happen. Today the State of Alaska owns all State highways, the Marine Highway System, the Alaska Railroad, and the Railbelt (electric) intertie. None of these provide revenue streams like an All Alaska Gas Hub would, yet all are critical to the economic vitality of the regions they serve. Why not a large capacity gas pipeline from the North Slope to an All Alaska Gas Hub, it would simply be another State-owned transportation system, and one a large majority of Alaskans want. Fortunately, Alaskans have been prudent, saving almost $34 billion in the Permanent Fund and $10 billion in the Constitutional Budget Reserve. We have low debt and well-proven financing capabilities through Alaska Industrial Development and Export Authority, Alaska Housing Finance Corp., the Alaska Railroad Corp. and the Alaska Energy Authority, and today’s oil prices are allowing us to run a budget surplus. Under a rational tax structure, gas produced and shipped from the North Slope

would represent to the State new royalty and tax revenue, as well as transportation tariff revenue. Now is the time Alaska, to seize our own future and to design our own destiny. Let’s invest in ourselves and determine ours’ and our children’s bright future here by building the All ❑ Alaska Gas Hub. About the Author Bob Poe has served four Alaska governors in several roles, including Commissioner of Administration; executive director of AIDEA, Alaska’s largest investment bank; executive director of the Alaska Energy Authority; and Deputy Commissioner of the Department of Transportation. He has worked for top international consulting companies, including Price Waterhouse and Coopers and Lybrand, and has led a variety of Alaska business efforts including attracting the FedEx and UPS cargo hubs to Anchorage, formation of the Alaska Heart Institute and most recently the Pegasus Aircraft Maintenance sale to NANA Development Corp. He is currently seeking the Democratic nomination for Alaska governor.

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OIL & GAS SPECIAL SECTION

What do Alaskans want?

he historic chronicle detailing pre-oil Alaska has become almost as predictable as the monotonous din of a rig turntable going around and around and around. Before oil started flowing through the pipeline, so the story goes, Alaska was a different place and without it would look nothing like it does today. There were only 150,000 people in Anchorage. Alaskans paid State taxes. There were no arts to speak of. Libraries and schools were modest. There was no Alaska Permanent Fund – or dividend. By modern standards, quality of life was lacking. And this is the short list. Those were the not-so-good goodold-days. Then big oil rode into town. The $900 million in lease bonuses paid by the oil companies in 1969 for Prudhoe Bay transformed Alaska government. Revenues from production paid for permanent State and local government improvements without leaving behind any pesky tax burdens. Despite some differences of opinion, most Alaskans have seen it as a win-win relationship for both the oil companies and the state: Alaska leases its oil and gas to private oil companies, in turn they carry the investments to explore, develop and produce the resources. Today, the number of exploratory and development wells has tanked to the lowest levels in a decade. BP Exploration (Alaska) Inc. delayed its development in the western region of the North Slope as a result of the Alaska’s Clear and Equitable Share (ACES) tax rates. ConocoPhillips cited the same reason for scrapping a $300 million refinery project and the first time in more than 40 years, it is not exploring. The number of jobs is decreasing and the oil companies do not seem to be bluffing when executives say they will invest elsewhere. Although oil continues to be Alaska’s

biggest contributor to the economy, the reign of popularity seems to be waning and the future of the petroleum industry in Alaska is becoming downright scary. Oil companies need incentives to stay, but feel they are getting disincentives at every turn. While Alaskans continue to benefit from the industry, whether through direct employment or quality of life, many also support the idea of ACES, which raises production taxes on the industry 400 percent and adds the risk of driving business out of Alaska to where the business environment is friendlier and the profits more promising. It comes down to short-term gains versus long-term investments, which industry leaders say, results in a system that is bad for both the State and the industry. Alaskans seem to be doing everything they can to grab what they think is their fair share of proceeds from the declining output on the North Slope, saying it’s their oil. From an investor’s standpoint, Alaska is becoming a less lucrative place to invest exploration and production dollars. What is it that Alaskans want from the petroleum industry?

TONY KNOWLES A former two-term Alaska governor (1994-2002) and two-term Anchorage mayor (1981-1987), more than any other politician, Tony Knowles probably knows all facets of the oil industry better than any other elected official in Alaska’s history. Currently the executive director of the National Energy Policy Institute, a nonprofit energy policy organization, one of his first jobs out of college was drilling the second well on the North Slope. Knowles’ father, Carroll Knowles, was a third-generation oilman and independent wildcatter. “There was never a deal he didn’t think he could be a part of,” he says. His

Photo by Bill Zervantian/Bill Z Photography

BY HEIDI BOHI

Former Gov. Tony Knowles.

mother, Ruth Sheldon Knowles, was an oil business journalist, consultant and author, wrote the best-selling book “The Greatest Gamblers: The Epic of American Oil Exploration.” Today, Knowles is concerned because Alaskans are not engaged with the oil industry for the first time since it was discovered in Cook Inlet. “A lot of State officials have mistaken attitudes about the industry,” he says. “They are looked at as either our friends and we love them, or our enemies and they’re taking all our money and resources – and both approaches are inappropriate. We need to partner with the industry. We need a business relationship where we share the gain and we share the pain.” For the first time since 1965 when Unocal discovered the McArthur River oil field, the largest in Cook Inlet, nothing is going on – and at a time when the rest of the country is aggressively investing in the industry, Alaska’s oil patch is at a stand-still, he says, adding that the only real activity is on federal lands and

www.akbizmag.com • Alaska Business Monthly • May 2010

Besides taking into consideration the global competition for investment dollars, Knowles says the 6 percent decline in production means big problems for the trans-Alaska oil pipeline. The lower volume will result in triggering a series of problems that will dramatically increase costs and lower profits to industry and revenues to the State. Those problems range from paraffin build up, which causes valves to shut down, to a low-flow rate that results in bacteria in the oil that increases corrosion rates. This all costs big dollars to fix. When Prudhoe Bay was discovered, experts thought it would last until 2000. As new technology came onboard, this was increased to 2030 or maybe 2050. Now, because of the decrease in production, and no investment in new fields, shutdown could happen sooner rather than later, Knowles says.

STEPHEN HAYCOX Alaskans want job security from the oil industry and they simply will not live here if they can’t have that. It’s more important than anything else and it’s not spoken about as clearly as

Photo courtesy of Gene Storm

waters. “Does that tell you something? We’re not engaged. We look at (the industry) as an ATM machine, but you can’t just push the card in and make a withdrawal. It requires an investment and timeline strategy that is at least a decade from discovery to production. We see falling exploration, falling employment and all the signs that the oil industry, at best, is on hold – and in all actuality is in decline – because we’re not engaged.” But, Alaskans are none the wiser. Say the words “Alaska oil industry” and they’ll give it two thumbs up, he says. Alaskans want to believe the industry is good for the state, good for jobs and that it will protect the environment, but they don’t want to be played for a sucker and they don’t want the industry to maximize its profits at their expense. “They take it for granted that it’s always going to be there – they assume there are lots of resources and it’s inevitable that they’re going to be developed,” Knowles says. “What I’d tell them is ‘There’s a lot of trouble on the horizon, and development won’t just happen automatically.”

Stephen Haycox

it ought to be,” says Stephen Haycox, a history professor at the University of Alaska Anchorage. “People don’t live in Alaska because of a love affair with Alaska. They live here because they can have the same material norm that Americans have anywhere in the country,” Haycox says. “How do we know? Because when they

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lost their jobs (during the crash of 1985), they didn’t set up tents and live on the land and love it to death. They went back home where they could have a couple of cars, an 1,800-square-foot home and eat out as many times as they wanted to.” What makes job security so important, he says, is the narrow character of the economy, with one-third of the economic base being in oil and onethird in federal spending. Alaskans still remember the trickle down of a 60,000-person out migration when oil dropped from $40 per barrel to $15 and jobs in Alaska evaporated. At the same time, he says, Alaskans feel betrayed and want reassurance, especially when it comes to being lied to about pollution issues. “This is an industry that from the first day in 1968 said,’We will not damage the environment and we know how not to damage your environment,’” Haycox says, referring back to the discovery of huge oil reserves in Prudhoe Bay. Since then, Alaskans have watched as the Exxon Valdez dumped 11 million of gallons of crude oil into Alaska waters, followed by a BP Alaska spill, and the industry’s surrogates corrupting the legislature. “What kind of betrayal is that?” Another area of skepticism, Haycox says, is the thinking behind ACES. At the time it was passed, oil was $140 a barrel, while the industry claimed it was being over taxed. Today, oil hovers around $80 a barrel, profitability is above a certain level, and Alaskans feel entitled to some of that return. “If it was selling at $140 there would be no discussion about reversing ACES – none whatsoever,” Haycox says. “Give us break,” seems to be the current sentiment of Alaskans, he says. “If the industry is making a level of profit twice that of what it used to make, than Alaskans should be getting something. There is still a very palpable feeling that we’re in the same situation we were before statehood – which is being exploited by people using Alaska resources to make a lot of money, but not leaving an adequate return in Alaska for that privilege.”

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When it comes to what the petroleum industry is, what it does and how it operates, there are two camps of opinion,

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Photo courtesy of ISER

home run. But, he points out, things have changed â&#x20AC;&#x153;and weâ&#x20AC;&#x2122;re now in the age of hitting singles and doubles â&#x20AC;&#x201C; not home runs.â&#x20AC;? While Alaskans continue to devote so much attention to getting the gas line off the ground â&#x20AC;&#x201C; assuming it will be the next big thing for the economy â&#x20AC;&#x201C; instead, he says, they should be paying more attention to expanding current oil production by developing smaller fields that will pay off in the short-term, especially considering that one more barrel of oil that sells for $82 is 20 times more than the $4 cost of one

thousand cubic feet (Mcf) of natural gas. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a distortion of our priorities by concentrating on the home run, but if you can hit a bunch of singles and pull them together, youâ&#x20AC;&#x2122;ll score more often instead of holding out for the home run that may not come until the 10th inning.â&#x20AC;? Goldsmith says he doesnâ&#x20AC;&#x2122;t have the answer for how to go about making Alaska competitive for oil and gas development. But, â&#x20AC;&#x153;We should constantly be working to get to the sweet spot, which is the level of oil taxes that balances current revenues with future

Scott Goldsmith

says Scott Goldsmith, a UAA economics professor and authority on fiscal problems inherent to an economy dependent on the industry. Using the proposed gas pipeline to illustrate this thinking, he says what he sees as the appropriate view is that the industry operates in a worldwide environment where there are opportunities for investment that promise the highest return will be pursued and Alaska should let the industry take the lead because they understand world economic conditions. â&#x20AC;&#x153;In that view, one needs to be careful to make sure the environment in Alaska is conducive to attracting that kind of investment, while recognizing there are potential opportunities for industry to be viable for another 50 years â&#x20AC;&#x201C; because thereâ&#x20AC;&#x2122;s a lot of oil and gas to be produced, but itâ&#x20AC;&#x2122;s not a slam-dunk.â&#x20AC;? The second school of thought, regarded as being more traditional, â&#x20AC;&#x153;Is that Alaska has the resources and weâ&#x20AC;&#x2122;re in a position of strength to be able to dictate to the industry â&#x20AC;&#x201C; rather than negotiate â&#x20AC;&#x201C; what the terms are that will allow them to develop our resources,â&#x20AC;? which includes not just oil and gas, but all of the stateâ&#x20AC;&#x2122;s natural resources. â&#x20AC;&#x153;You can see it today with the controversy surrounding the development of North Slope gas. â&#x20AC;&#x2DC;Itâ&#x20AC;&#x2122;s our gas, letâ&#x20AC;&#x2122;s go ahead and build a pipeline and get on with it is the thinking,â&#x20AC;&#x2122;â&#x20AC;? he says, adding that this is based on the assumption that the world will come to Alaska to buy gas. Alaskans always want the next

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revenues and jobs. It would only be sheer luck if the current ACES gets us to that spot.” The State, in its analyses of ACES, he says, has spent a lot of time calculating current revenues under different scenarios, but not enough time trying to understand how future investments would be impacted, and consequently future revenues and jobs. “The challenge is that the oil prospects on the North Slope are heterogeneous – and different types of developments may require different types of tax structures,” Goldsmith says. “The State needs to have a much better understanding of how taxes impact investment beyond just looking at number of wells drilled and the total petroleum work force to see if the tax is working.”

BETSY LAWER

Photo courtesy of First National Bank Alaska

A lifelong Alaskan who remembers life before statehood, Betsy Lawer, chief executive officer of First National Bank Alaska, doesn’t understand the lovehate relationship Alaskans today seem to have with the oil industry, especially, she says, considering how much it contributes to education, nonprofits, the arts and athletics.

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Betsy Lawer

“There is a whole generation of residents who have lived in Alaska when there has always been oil. The concept of what it would be like without oil is very clear to me because that’s the world I grew up in,” Lawer says, adding that she is not convinced Alaskans

www.akbizmag.com • Alaska Business Monthly • May 2010

“There is a distrust problem right now and I don’t know how we get beyond that.” – Betsy Lawer Chief Executive Officer First National Bank Alaska realize what they have to lose if the industry goes away. “We had a seasonal economy, the cost of living was significantly higher than the Lower 48 (states), and we had a lot fewer entertainment options, retail stores and fewer roads.” When she was growing up, those who moved to the state with the oil companies stayed and grew their careers and raised families, and Alaskans got to know them personally. Now, they seem to use it as a professional stepping-stone before moving on. This, and remaining hard feelings left from the oil spill, may be part of why Alaskans seem to be lashing out. Either way, she says, “There is a distrust problem right now and I don’t know how we get beyond that.” Education is part of the solution, Lawer says. Alaskans should take a stand on what’s important to them, but to do that, they need to understand the nuances about what drives the Alaska economy. To help them make informed decisions about their future, and to develop an awareness about how the public and private sectors can work together, FNBA is funding the three-legged stool brochure and Web site that explains the Alaska economy in terms of being built on three legs: 1) petroleum, 2) inflows of cash from the federal government, and 3) other basic sectors such as seafood, tourism, mining, timber, international cargo and personal assets from outside Alaska (primarily federal retirement benefits). At the same time, it emphasizes how critical petroleum is to the state’s prosperity and the need for keeping that leg strong by supporting responsible development efforts of this industry. “I hate to be surprised and I don’t like to surprise others with bad news. We see what’s happening and can provide key information and an expert perspective,” Lawer says. “Alaskans shouldn’t be surprised that indicators point in a direction that could find us in a pre-oil-days scenario when there’s ❑ a downturn in the economy.” www.akbizmag.com • Alaska Business Monthly • May 2010

OIL & GAS SPECIAL SECTION

Cook Inlet Production Diminishing to point of no return? BY MIKE BRADNER

Cook Inlet. A gas flare or flare stack is an elevated vertical stack or chimney found on oil wells or oil rigs, and in refineries, chemical plants and landfills used for burning off unusable waste gas. On oil rigs and in refineries and chemical plants, its primary purpose is to act as a safety device to protect vessels or pipes from over-pressuring due to unplanned upsets. This acts just like the spout on a tea-kettle when it starts whistling as the water in it starts boiling. The flammable gases are burned as they exit the chimney producing a weak to a bright flame depending upon the amount of gas being exhausted. Steam can be added to reduce the amount of black smoke that is generated. In order to keep the flare system functional a small amount of gas is continuously burned, like a pilot light, so that the system is always ready for its primary purpose – an overpressure safety device.

Here is the situation: The inlet’s producing oilfields are fast declining in production and are nearing their economic limits. In its heyday, the Inlet produced more than 200,000 barrels of oil daily. It now produces about 12,000 barrels daily. Chevron Corp., which owns and operates most of the Inlet’s platforms,

www.akbizmag.com • Alaska Business Monthly • May 2010

s Cook Inlet’s petroleum industry nearing its last days? One would hope not – the region is where Alaska’s petroleum industry started in the 1950s, and geologists say there is potential for new discoveries – but unless something happens we could well witness its end, possibly in the near future.

has shelved a plan to try to rekindle the aged fields with new investment and development work. The company is now in a “harvest” mode, it acknowledges. Oil production in the Inlet not only sustains a large number of jobs, but also it helps support the Tesoro refinery at Nikiski, near Kenai. The refinery

once supplied all of its crude oil needs from Cook Inlet, but now has to import crude from overseas as a supplement. If inlet oil production ceases, the refinery will have to import all of its needs, which could add to operating challenges the refinery already faces. A lot of communities, not just in Cook Inlet, have a stake in the refinery because a good portion of the state’s gasoline and diesel supply comes from Tesoro. Almost all fuel needs of Western Alaska communities are supplied by barge from this plant, also. If the refinery were not operating, this fuel would have to be brought in from out-of-state, most likely from the Pacific Northwest.

NATURAL GAS The situation for natural gas is better, but not greatly. As with crude oil, gas reserves are being depleted in the region’s big gas fields. Daily production can no longer meet peak winter demand from local gas and electric utilities during cold snaps. In such situations, the liquefied natural gas (LNG) factory near Kenai ceases

making liquefied gas and diverts its supply to the local utilities. But another problem is that a federal LNG export permit for the plant expires in March 2011, less than a year from now. The owners of the plant, ConocoPhillips Alaska Inc. and Marathon Oil Co., applied for another extension of the permit, which previously expired in 2009 but was extended for two years, to 2011. ConocoPhillips, the operator of the plant, says it hopes the facility can play some continued role in meeting local gas needs even if LNG exports cease in 2011. However, converting the plant to an LNG import terminal and regasification facility, which is one possibility, will involve significant capital investments that will have to be paid for by the utilities, and ultimately Alaska consumers. The unresolved future of the plant adds to the uncertainties facing the industry and the local utilities. Another uncertainty that concerns the industry, ironically, is the State’s talk of building a gas pipeline to the region from the North Slope. If this

pipeline were financed privately, the gas it would deliver would not be cheap, and new gas discovered in Cook Inlet will be able to compete. However, if the State subsidizes the pipeline in significant ways this may not be the case. Also, possibilities that major hydroelectric projects, such as the Susitna River dam or the Lake Chackachamna lake-tap project, could be built with State funds could take away a good part of the electric utility market for natural gas. That will weigh on explorers as they plan any investment in drilling for new gas in Cook Inlet.

COOK INLET POTENTIAL The picture isn’t as bleak as it seems, however. There is still good potential for new oil and gas discoveries in the Cook Inlet basin, perhaps significant ones, if more drilling can be done. State officials and legislators are now alert to the region’s problems, and several new policy initiatives are pending that could make a difference. These include expansions of tax incentives to encourage new exploration for gas.

www.akbizmag.com • Alaska Business Monthly • May 2010

Another plus for the region is the existing infrastructure, a trained work force and skilled local contractors. There are challenges with this, however, because as inlet petroleum activity declines there are fewer contractors, which creates reduced competition and higher costs. However, given luck and the right recipe of new government policies, the industry could bloom anew in Cook Inlet. Ironically, the industry is underexplored, geologists say. With an industry now more than 50 years old, how did that happen? To some extent it was bad luck and timing, in the opinion of many.

HISTORY LESSON Just as Cook Inlet was hitting its peak in new fields being discovered and developed in the late 1960s, big oil discoveries were made on the North Slope. Exploration budgets were quickly diverted to the Slope, and the money never came back. The exploration cycle for Cook Inlet was interrupted and the momentum was gone. All of the early exploration in the inlet was for oil, but some big gas fields were discovered while explorers searched for oil. These large discoveries resulted in a regional surplus that led to a natural gas distribution system and cheap energy for space heating and power generation, but it also killed off any incentive for exploration for new gas, since any discoveries would have just added to the surplus that existed then (it no longer does) and further depressed prices. Geologists are convinced there is more oil and gas yet to be discovered in the Inlet. The geology of the region is considered favorable to gas, and oil is now believed to be more widespread than first thought. For example, the oil discoveries made earlier were mostly concentrated in one area of upper Cook Inlet, where the platforms and fields now operate. But the existence of the Cosmopolitan oil deposit near Anchor Point, now being evaluated by Pioneer Natural Resources, shows there are oil accumulations outside “oil alley” in the upper inlet. Many geologists also believe there is deep gas and perhaps oil at depths below the existing fields. There have been few deep wells drilled, however, so these theories have not been tested.

www.akbizmag.com • Alaska Business Monthly • May 2010

There are challenges with this, however, because as inlet petroleum activity declines there are fewer contractors, which creates reduced competition and higher costs. Another offshore area in the inlet that is believed to have considerable potential, for both oil and gas, is a group of prospects that have had several names given by companies over the years, including “Sunfish” to “Northern Lights.” Oil was discovered at its fringes of some of these in the early days of Cook Inlet exploration, but the discoveries were not economic at the time. Using modern seismic technology, some geologists see trends in these prospects that indicate possibly bigger deposits of oil, and perhaps gas as well. However, one needs to drill these prospects to see if the oil or gas is actually there, and that has been the rub. This area is too far from shore to drill an “extended reach” well from a rig on shore. What’s needed is a rig that can work offshore, like a drillship or a “jack-up” rig. A jack-up rig, the favored option, is a mobile drilling unit floated into place that lowers steel legs to the sea bottom and then mechanically “jacks” itself up from the water surface, creating a stable drill platform. A group of independent companies have been working for several years to get a jack-up rig to the Inlet (there was one there last in the 1980s) to test these concepts. If the money can be raised and the rig arrives next summer as now planned, several promising offshore prospects could be drilled and tested.

UNDEREXPLORED COOK INLET Scott Jepsen, now vice president for external affairs for Denali – The Alaska Gas Pipeline, explained why people think Cook Inlet is underexplored in a talk given several years ago to the Alaska Support Industry Alliance, an oil contractor association, when he was Cook Inlet manager for ConocoPhillips. www.akbizmag.com • Alaska Business Monthly • May 2010

Jepsen was speaking mainly of gas in Cook Inlet, but his argument applies broadly to oil as well. “In looking at Cook Inlet – like any large, prolific resource basin – there are characteristics that are common,” Jepsen said. “There is inevitably a distribution of field sizes in basins that have been well explored. There should be a few giant fields and an ever-increasing number of smaller fields.” Speaking of gas, “about 85 percent of the natural gas ever discovered (in the inlet) is in four giant gas fields, the Beluga River, North Cook Inlet, the Kenai gas field and the McArthur River field,” each of which contained more than one trillion cubic feet of reserves, Jepsen said. There also havebeen four fields discovered with gas reserves in the 100 billion cubic foot to 250 billion cubic foot range. However, all of the other gas fields found have been in the 50 billion cubic foot range, he said. “Statistically, one would expect to see more of the mid-size fields,” than have been discovered, Jepsen said. Geologists are convinced they are out there. They have to be found, however. Secondly, there are cycles of exploration in all oil basins based on new technology or “play concepts” (new theories by geologists), Jepsen explained. After an initial burst of exploration, when the larger and best fields are discovered, companies typically come back a few years later armed with new tools and new ideas. Sometimes – usually, in fact – there are new companies that bring fresh ideas and new theories. Cook Inlet’s exploration cycle was interrupted by the North Slope discoveries; still, by the 1980s, new companies appeared on the scene with fresh ideas, and activity picked up. This was the beginning of the secondary cycle of exploration that Jepsen spoke of. However, these early initiatives were not as successful as hoped. Anadarko Petroleum, a major independent company, explored on the west side of the inlet and made a modest gas discovery, but then sold the property to another independent, Aurora Gas, and refocused on the North Slope. Forcenergy (which became Forest Oil), another major independent,

bought in as a partner with Unocal (now Chevron), in several producing inlet oilfields and developed the small Redoubt Shoal oilfield. The company brought in a new platform, the Osprey, but the field encountered technical problems and did not produce as expected. Forest sold the property to a small independent company, Pacific Resources, which went bankrupt during the recent economic recession. Another small independent has taken over the platform with hopes of restarting production at Redoubt Shoal.

NEW HOPE FOR INDEPENDENTS There are now other new players in the inlet. One is Escopeta Oil and Gas, a small, Houston-based independent that is working to get the jack-up rig to the inlet to explore the offshore prospects. Escopeta’s geologists, looking anew at the geology and recently done seismic data, believe there are substantial reserves of deep gas in the inlet. Armstrong Oil and Gas Co., a Colorado independent, is the newest company on the scene. Armstrong has been very successful on the North Slope in finding oil in places where the large companies had looked previously but failed. Now Armstrong has taken over the small North Fork gas field on the Kenai Peninsula, which has proven reserves. The company will build a pipeline and sell gas to Enstar Natural Gas, and will invest in further exploration. Unlike its North Slope ventures where Armstrong purchased leases, explored prospects and made discoveries and then sold to others, the company now intends to produce and operate its new, small Kenai Peninsula field, it says. Even if major companies like Chevron are pulling back, the continued interest by entrepreneurial independents like Armstrong and Escopeta show Cook Inlet still has strong potential. Another good sign is that one major company, Marathon Oil, which first came to the area in 1954, is still an active producer and explorer. Marathon drilled the first gas exploration well drilled in years last winter on the Kenai Peninsula, demonstrating the company’s belief ❑ in the region’s potential.

www.akbizmag.com • Alaska Business Monthly • May 2010

OIL & GAS SPECIAL SECTION

Photo by Debbie Cutler

BY MIKE BRADNER

Alaska State Capitol in Juneau.

tate oil and gas taxes were the subject of intense discussions in the State Legislature this spring. Industry has complained for some time the high rate of tax is discouraging investment. A steady decline in the drilling of new exploration and production wells since 2006, the year major changes in the State tax

were made, seems to bear this out. The matter has some urgency because production from the North Slope oilfields is declining at about 5 percent a year. Unless there is new production coming from somewhere in a few years the Trans-Alaska Pipeline System will be approaching a level of low oil â&#x20AC;&#x153;throughput,â&#x20AC;? and

Transportation Tank & Trailer Service Center Before

After

mechanical problems will begin affecting the pipeline.

COMMISSIONER GALVINâ&#x20AC;&#x2122;S VIEWS Alaskaâ&#x20AC;&#x2122;s revenue commissioner, Pat Galvin, acknowledges the problem of declining production, but he doesnâ&#x20AC;&#x2122;t believe the tax is to blame. Galvin argues that industry investment overall

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www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ May 2010

Photo by Judy Patrick

Pipes lead into a BP facility in the Prudhoe Bay oilfield.

has actually increased in recent years, and that a generous investment tax credit mechanism in the law that pays a good share of exploration costs – with cash rebates in some cases – has brought new companies to Alaska to explore. Who is right, the industry or the commissioner? It’s quite likely both are right. There is some evidence indicating the high tax rate discourages companies from long-range, high-risk exploration ventures where companies hope to find large oil deposits. Galvin is correct, however, the tax credit incentives are encouraging new exploration. Independent companies are exploring – even if their targets are relatively near the existing large producing fields where the likely new discoveries will be modest in size. Legislators should be forgiven if they respond cautiously in sorting out these conflicting claims and in understanding the State’s complex petroleum tax structure. They have the responsibility of deciding what the right tax rate is, one that doesn’t discourage development, but also has the people of Alaska receiving a fair share of the production benefits from State-owned lands.

TAX HISTORY Some history is in order: Alaska modeled its original oil and gas production taxes on those commonly used in other states. The tax was typically, and still is, a percentage of the “wellhead value,”

or the value of the oil at the point of production. In the Lower 48, where oil and gas is bought and sold at the field level, these market prices are easy to establish. In Alaska, little, if any, oil or gas is sold in the field, so other ways must be found to establish an accurate value for the oil, for tax purposes. The same is done for payment of the State royalty, which is typically 12.5 percent of the value of the oil. Because there are no large-scale markets for oil in Alaska, the value for tax purposes is determined by subtracting transportation costs from the nearest market where the oil is sold, and the market price can be determined. For Alaska oil, this usually means subtracting tanker and pipeline costs from U.S. West Coast market prices. For many years, the value of North Slope oil was essentially determined at Pump Station 1 at Prudhoe Bay where the oil is metered as it enters the trans-Alaska oil pipeline. This procedure is mostly done with North Slope crude oil because in Cook Inlet all oil is sold from the offshore platforms to the Tesoro refinery near Kenai. Special tax provisions apply to Cook Inlet. This model prevailed for many years when Alaska had a “gross revenue” tax system, where the tax was applied to gross revenues (minus transportation) at Pump Station 1, but with no deduction allowed for the production costs and capital investment in the oilfield itself.

www.akbizmag.com • Alaska Business Monthly • May 2010

THERE THERE’S PPT All this changed in 2006 when the State converted its gross revenue to a net revenue (sometimes called net profit) system, the Petroleum Profits Tax, or PPT. For years economists in the Department of Revenue had suggested the change to a net revenues system because of problems resulting under certain conditions with gross revenues. Basically, with gross revenues, when prices rise the State share does not rise in proportion, and the State largely misses the benefit on the upside. On the downside, when prices drop, company share of revenues drop but the drop in the State revenue is slower. While some see this as a positive attribute (i.e., more stability for State income at times of low oil prices), the revenue economists felt this was at the expense of gains lost at high prices. More fundamentally, the system caused the State and its producers to be in misalignment. For example, when prices were low, the share of the revenues going to the State could be greater than to the companies, and this at a time when the producers need cash flow to cover fixed costs and keep the oilfields running and people employed. The goal with the switch to net revenues through the PPT was to better align the State and the producers so gains and losses were shared more or less equally. After much study, former Gov. Frank Murkowski became convinced of the merits and followed the revenue department’s advice. However, the governor was interested in going one step further to develop a mechanism to encourage producers to reinvest profits in Alaska. He suggested a capital investment tax credit where companies could write off some of their investment as a dollar-for-dollar credit against the production tax liability. Companies that reinvest their Alaska earnings in the state, benefit from the tax credit. Those that do not reinvest do not get the benefit. The Legislature adopted this idea in the State tax law in 2006 when it also adopted the net profits tax, switching away from the gross revenues tax used historically.

Partnership defined. On the North Slope, teamwork is critical. For more than 75 years, we’ve perfected our position as a dependable team player by anticipating needs and delivering as promised. That’s why explorers and producers depend o on n Alaska Air Cargo and employees mployees like Sachi every day. We are Alaska Air Cargo. o. True partners delivering for you.

UNBEATABLE FREQUENCY ACROSS ALASKA

www.akbizmag.com • Alaska Business Monthly • May 2010

TAX CREDIT BENEFITS

stay mobile Peak’s All Terrain Vehicles can carry loads of up to 50 tons without witho hout an an impact on the environment, and they are recognized as “Summer Approved” for tundra travel by the State of Alaska’s Division of Natural Resources. Our ﬂeet of ATV’s are an investment toward protecting the environment and supporting the petroleum industry in its effort to explore and develop Alaska’s Arctic Regions. We are mobile when you are ready to explore.

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Murkowski took another step with this, however. This was an additional feature to give extra help to companies new to Alaska, and which do not yet have production tax liability against which to use the tax credits. The governor proposed that tax credits earned by explorers could be transferred, or sold, to firms with production. These concepts were also adopted and provided the foundation for the array of investment incentives now in the production tax. The original PPT recommendations were for a tax rate of 20 percent of net profits and a capital investment tax credit of 20 percent, meaning 20 percent of the investment can be credited against production tax liability. The Legislature, in 2006, made changes to Gov. Murkowski’s proposal, which is not surprising. The tax rate went from 20 percent to 22.5 percent. More important, the tax rate would be ratcheted up according to a “progressivity formula” linked to crude oil prices. After Sarah Palin defeated Frank Murkowski in the 2006 primary, and was elected governor in the general election, she reviewed the tax and proposed several variations, including what amounted to technical changes recommended by the Department of Revenue. Gov. Palin called her changes the “Alaska’s Clear and Equitable Share” act, or ACES. What is significant is Gov. Palin’s initial proposal was somewhat modest compared with how the Legislature changed it. The governor suggested raising the base tax rate to 25 percent, but also proposed changes to the progressivity formula that had the effect of moderating the tax. The Legislature took the governor’s proposal and sharply increased the tax effect of the progressivity formula. It almost seemed that each legislative committee that handled the bill was hiking the tax in a competition. There were also significant changes to the bill made in floor amendments in the final hour of its consideration. One change made at the request of Democrats was to limit deductions of costs in the large Prudhoe Bay and Kuparuk fields to 2006 levels for three years, with the limit expiring at the end of 2009. It is interesting when

www.akbizmag.com • Alaska Business Monthly • May 2010

Democrats introduced a bill to extend the limit during the 2009 session there was little attention paid. The bill received no hearings and it seems unlikely there will be any action on the proposal during the 2010 session.

REAL TIME This brings us to the present. Industry complains that the tax rate under the present progressivity formula is high at current crude oil prices, and has put Alaska among the higher-tax producing regions of the world. Costs in Alaska are high and at least the onshore prospects are modest, with potential reservoirs being smaller and of lower quality. (The picture is different offshore, where prospects and reservoir targets appear good, but these are beyond the State’s taxing jurisdiction.) The combination of these factors, a high tax rate, high costs and modest prospects, is resulting in a decline in investment in new oil development, the companies argue. Commissioner Galvin and others at the Department of Revenue dispute this. In a report released earlier this year on performance of the ACES tax, the department said investment by industry has actually increased since the tax revision took effect in 2007 and industry employment also has increased in the last three years. (State Department of Labor data shows it has decreased somewhat in recent months, however.) Further, the department says industry investment is forecast to increase again in 2010 and 2011. The claim is based on data submitted by the Alaska producers on their projected levels of capital investment. The AC E S law also requires companies to submit estimates of expected investment, and while the department cannot divulge information from individual companies it can release the aggregate totals, which has been done. Why the difference? The department feels some companies are no doubt decreasing investment but others are increasing spending, and the trend in total is up, not down. Two examples of new projects are the Point Thomson gas-cycling and condensate-production project being developed by ExxonMobil and its

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www.akbizmag.com • Alaska Business Monthly • May 2010

partners, primarily BP, Chevron and ConocoPhillips; and the Nikaitchuq offshore field now being developed by Eni Petroleum. Work crews are busy on both projects this winter.

NO NEW WELLS

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The major critics of the ACES tax, such as ConocoPhillips, say a good part of the increased spending is maintenance work related to upkeep of existing facilities, and not money being spent to find new oil. The company cites figures to show a declining rate of reserve replacement in the large producing fields since 2007, when the ACES tax was passed. In its talks to Alaska groups, BP similarly shows a sharply reduced rate of new footage drilled in the fields over the same period (drilling of new wells in existing fields is crucial to replacing reserves and slowing the rate of decline). These claims can be either believed or disbelieved, but there is no doubt the trend of drilling is down since 2006, based on public data filed with the Alaska Oil and Gas Conservation Commission. Since drilling is a key indicator of probable reserve replacement, which is crucial in slowing the decline in production, the data provides some verification for the companiesâ&#x20AC;&#x2122; claim that something is amiss. Adjusting the tax downward is a risky call for politicians when they face elections. Gov. Sean Parnell, who faces his own election, is charting a cautious course, calling for some adjustments to the tax but no wholesale revisions. Some legislators, like Rep. Craig Johnson, an Anchorage Republican, are more aggressive, and want the tax rate lowered to spur new investment. Johnson introduced a bill that would approximately halve the impact of the tax. Overall, itâ&#x20AC;&#x2122;s a healthy dialogue. The tax changes made in 2006 and 2007, when the net profits tax was adopted and then altered, were significant changes in Alaska tax policy. Following such major changes it is understandable that after three or four years lawmakers look once again at the tax, with an eye toward mid-course adjustments. Issues that affect an industry paying for 90 percent of the State budget must be taken â?&#x2018; seriously, and they are.

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ May 2010

Why should you choose Crowley? For Business Development Director Bill Hill, the answer can be summed up in one word: investment. Investment in top-of-the-line equipment, like our new large, high-capacity barges. Investment in our people who receive extensive safety and skills training. And investment in our communities, through local hire, environmental protection and community service initiatives. Weâ&#x20AC;&#x2122;ve been investing in Alaskaâ&#x20AC;&#x2122;s growth and success for over 50 years. For service in your area, call Crowley statewide at 1.800.977.9771.

Liner Shipping U Worldwide Logistics U Petroleum & Chemical Transportation U Alaska Fuel Sales & Distribution U Energy Support Project Management U Ship Assist & Escort U Ship Management U Ocean Towing & Transportation U Salvage & Emergency Response

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY

Oil & Gas: A Year to Remember

larm about reduced oil exploration, especially by the majors, intense debates about tax issues, and fears the proposed gas line from Prudhoe to the Lower 48 will not happen dominate conversations and spread concern among government leaders and businessmen and women alike. After all, we are a resource-driven state, with our main investment, and main income, being oil and potentially gas. What are we to do? A look at this directory shows oil and gas is not dead, and in fact holds promise. Look at the list of exploration companies. There are many more than the majors, some doing successful work up north and in Southcentral. Take Eni for example or Shell, who returned full-force after a hiatus that began in 1988.

Production companies also dominate the list, as do services and support and other sectors. Maybe not all is bleak. Read through the pages, see what these companies are doing, and have hope, much hope, in Alaska’s future. It’s not time to turn out the lights. It’s time for open discussion, for standing firm in support of this important industry, for making changes. If your company is not listed in this directory, and you do work in Alaska’s oil and gas industry, please contact Elaine Collins at circ@akbizmag. com and she will send you a survey for the Power List and next year’s oil and gas directory.

EXPLORATION COMPANIES COMPANY

Top Executive

Aurora Gas LLC 1400 W. Benson Blvd., Ste. 410 Anchorage, AK 99503 Phone: 907-277-1003 Fax: 907-277-1006

G. Scott Pfoff, Pres

Aurora Power Resources Inc. 1400 W. Benson Blvd., Ste. 410 Anchorage, AK 99503 Phone: 907-277-1003 Fax: 907-277-1006

G. Scott Pfoff, Pres.

ConocoPhillips Alaska Inc. PO Box 100360 Anchorage, AK 99510-0360 Phone: 907-276-1215

Trond-Erik Johansen, Pres.

Doyon Drilling Inc. 3201 C St., Ste. 700 Anchorage, AK 99503-3934 Phone: 907-563-5530 Fax: 907-561-8986

Aaron Schutt, Pres.

Eni Petroleum 3800 Centerpoint Dr. Anchorage, AK 99503 Phone: 907-865-3300 Fax: 907-865-3380

David Moles, Alaska Eni Rep. VP Development and Ops

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

Dale Pittman, Alaska Prod. Mgr.

FEX LP 3601 C St., Ste. 370 Anchorage, AK 99503 Phone: 907-644-4429 Fax: 907-644-4892

Richard Garrard, Geoscience Mgr.

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

Howard Grey, Mgr.

Inlet Drilling Alaska Inc. 210 N. Willow St. Kenai, AK 99611-7703 Phone: 907-283-3567 Fax: 907-283-7065

Donald J. Dodge, Pres.

Estab.

AK Empls.

1999

1994

1952

1,000

1982

266

Business Description Services: Aurora Gas is an independent oil and gas exploration and production company with operations in Cook Inlet.

gspfoff@aurorapower.com www.aurorapower.com

gspfoff@aurorapower.com www.aurorapower.com Services: Kenai office: PO Box 66, Kenai, AK 99611; phone 776-8166; fax 776-6240.

www.conocophillips.com

info@doyondrilling.com www.doyondrilling.com

Services: Oil-well drilling contractor. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, Pioneer Natural Resources, UltraStar, Savant Alaska, Anadarko, FEX LP, Eni Petroleum and Rampart Energy. Services: Oil and gas exploration and production.

www.eni.com Services: Oil and gas exploration and production.

www.exxonmobil.com 2004

Services: Oil and gas exploration.

1983

Services: Specializes in drilling services for geotechnical and environmental projects, including land-based and offshore programs. Drilling methods include coring, air rotary, mud rotary and auger tools using a variety of drilling equipment and specialized in-situ sampling devices. Has a wide array of heliportable drills for remote or difficult terrain conditions.

1992

Services: Oil and gas drilling contractor.

www.talisman-energy.com

hgrey@foundex.com www.foundex.com

inletdrl@acsalaska.net

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY EXPLORATION COMPANIES COMPANY

Top Executive

Estab.

AK Empls.

Business Description

Kuukpik Drilling LLC 801 B St., Ste. 300 Anchorage, AK 99501 Phone: 907-279-6214 Fax: 907-279-2609

W.R. Hicks, Gen. Mgr.

2002

Services: Oil and gas drilling and workover. Geothermal drilling and workovers. Notable Clients: ConocoPhillips Alaska and Puna Geothermal.

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

Carri Lockhart, Production Mgr.

1955

Services: Oil and gas exploration and production.

Nabors Alaska Drilling Inc. 2525 C St., Ste. 200 Anchorage, AK 99503 Phone: 907-263-6000 Fax: 907-563-3734

David Hebert, Gen. Mgr.

1963

475

Services: Oil and gas drilling. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, Chevron, FEX, Anadarko, Pioneer Natural Resources, Eni Petroleum, Brooks Range Petroleum.

Parker Drilling 1420 E. Tudor Rd. Anchorage, AK 99507 Phone: 907-339-4000 Fax: 907-339-4001

David C. Mannon, Pres./CEO

2008

Services: Contract drilling, drilling and production rental tools, advanced-rig design, engineering, rig construction, extended-reach drilling, drilling in environmentally sensitive and harsh/remote climates, training and HSE programs. Notable Clients: BP Exploration (Alaska), ExxonMobil, Eni, Schlumberger, ConocoPhillips.

2003

2005

Services: Integrated oil and gas company, international.

1998

Services: Oil and gas exploration and production.

AK Empls.

Business Description

www.marathon.com

www.nabors.com

bobi.akers@parkerdrilling.com www.parkerdrilling.com

Pioneer Natural Resources Alaska Inc. 700 G St., Ste. 600 Anchorage, AK 99501 Phone: 907-277-2700 Fax: 907-343-2190

Ken Sheffield Jr., Pres.

Services: Oil and gas exploration and production.

ir@pxd.com www.pxd.com

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

Pete Slaiby, VP Shell Alaska Exploration & Appraisal

XTO Energy Inc. 810 Houston St. Fort Worth, TX 76102 Phone: 817-885-2334 Fax: 817-885-1990

Bob Simpson, Chairman

www.shell.com.us/alaska

vaughn_vennerberg@xtoenergy.com www.xtoenergy.com

PRODUCTION COMPANIES COMPANY

Top Executive John Minge, Pres.

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

Estab. 1959

2,000

Services: Oil and gas production.

1957

390

Services: Oil and gas production.

1952

1,000

1977

180

Services: Jet fuel, asphalt oil, turbine fuels, gasoline and diesel fuel. Notable Clients: Alaska Railroad, Fed-Ex, GVEA and Alaska Airlines.

1955

Services: Oil and gas production.

1984

290

Services: Refines and distributes heating fuel, diesel fuel and jet fuel.

2003

Services: Oil and gas exploration and production.

www.alaska.bp.com

Chevron 3800 Centerpoint Dr., Ste. 100 Anchorage, AK 99503 Phone: 907-276-7600 Fax: 907-263-7904

John Zager, Gen. Mgr.

ConocoPhillips Alaska Inc. PO Box 100360 Anchorage, AK 99510-0360 Phone: 907-276-1215

Trond-Erik Johansen, Pres.

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

Kevin Radke, VP/Alaska

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

Carri Lockhart, Production Mgr.

Petro Star 3900 C St., Ste. 802 Anchorage, AK 99503 Phone: 907-339-6600 Fax: 907-339-6653

Doug Chapados, Pres./CEO.

Pioneer Natural Resources Alaska Inc. 700 G St., Ste. 600 Anchorage, AK 99501 Phone: 907-277-2700 Fax: 907-343-2190 Tesoro Alaska PO Box 3369 Kenai, AK 99611 Phone: 907-776-8191

Ken Sheffield Jr., Pres.

www.chevron.com Services: Oil and gas production. Kenai office: PO Box 66, Kenai, AK 99611; phone 776-8166; fax 776-6240.

www.conocophillips.com

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

www.marathon.com

www.petrostar.com

ir@pxd.com www.pxd.com Stephen Hansen VP Kenai Refinery

1969

Services: Independent refiner and marketer of petroleum products.

www.tsocorp.com

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

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

Paul H. Sander, Mgr.

Acuren USA 7911 King St. Anchorage, AK 99518 Phone: 907-569-5000 Fax: 907-569-5005

Dennis Lee, Managing Dir.

AECOM 1835 S. Bragaw St., Ste. 490 Anchorage, AK 99508 Phone: 907-561-5700 Fax: 907-273-4555

Jane Thomas, Ops. Mgr. Alaska

AERO-METRIC Inc. 2014 Merrill Field Dr. Anchorage, AK 99501 Phone: 907-272-4495 Fax: 907-274-3265

Anthony B. Follett, VP

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

Allan Stone, Area Mgr.

Alaska Airlines 4750 Old Int’l Airport Rd. Anchorage, AK 99502 Phone: 800-426-0333 Fax: 907-266-7229

Bill MacKay, Sr. VP Alaska

Alaska Airlines Air Cargo 4750 Old Int’l Airport Rd. Anchorage, AK 99502 Phone: 800-225-2752 Fax: 907-266-7808

Bill MacKay, Sr. VP Alaska

Estab.

AK Empls.

Business Description

1971

Services: Occupational health and environmental safety solutions/products, electrical and communication product solutions, traffic safety product solutions, corrosion protection product solutions, welding and grinding product solutions, fire protection and suppression product solutions.

2002

200

Services: Materials engineering, nondestructive testing and inspection. Notable Clients: BPXA, Chevron (UNOCAL), Peak Oilfield Services, Flint Hills, Forest Oil, Tesoro, Marathon Oil and many more.

1977

Services: Comprehensive environmental services proven to meet planning, permitting, compliance and remediation needs of clients in Alaska and worldwide. AECOM is a global organization, consisting of 45,000 employees in 100 countries. Notable Clients: Shell, ConocoPhillips, BP Exploration (Alaska) Inc., U.S. Fish and Wildlife, United States Army Corps of Engineers, AT&T Alascom, and more.

1960

Services: Aerial photography and airborne GPS/IMU, remote sensing, digital orthophotos, elevation modeling, mapping, image processing, GIS services and Lidar. Notable Clients: State and federal agencies, Native corporations and private industry.

Services: United States’ largest distributor of industrial, medical and specialty gases and related welding equipment, safety supplies and MRO products to industrial and commercial markets. Notable Clients: ConocoPhillips, BP Exploration and Nabors Alaska Drilling.

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

www.acuren.com

jane.thomas@aecom.com www.aecom.com

alaska@aerometric.com www.aerometric.com

www.airgas.com 1932

1,600

Services: Alaska Airlines, the nation’s ninth largest carrier, and its sister carrier, Horizon Lines, together serve 92 cities in Alaska, the Lower 48, Canada, Hawaii and Mexico.

1932

1,600

Services: Nationwide logistic and freight services. Cargo services provided throughout Alaska and the Lower 48. Warehouse and logistics network, awardwinning service and cargo charters.

www.alaskaair.com

RESPONSIBLE DEVELOPMENT Our people. Our land. Our companies.

Enriching our Native way of life.

£££Ê7°Ê£ÈÌ Ê Ûi Õi]Ê-Õ ÌiÊ{ää]Ê V À>}i]Ê Ê xä£ÊUÊ äÇ°ÓÇn°ÎÈäÓÊUÊÜÜÜ°LL V° iÌ

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

Alaska Analytical Laboratory 1956 Richardson Hwy. North Pole, AK 99705 Phone: 907-687-7394 Fax: 907-488-0772

Stefan Mack, Pres.

Alaska Anvil 509 W. Third Ave. Anchorage, AK 99501 Phone: 907-276-2747 Fax: 907-279-4088

Frank G. Weiss III, Pres.

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

John Ellsworth, Pres.

Alaska Interstate Construction LLC 601 W. Fifth Ave., Ste. 400 Anchorage, AK 99501 Phone: 907-562-2792 Fax: 907-562-4179

Steve Percy, Pres.

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

Kevin Anderson, Pres.

Alaska Oil & Gas Association 121 W. Fireweed Ln., Ste. 207 Anchorage, AK 99503 Phone: 907-272-1481 Fax: 907-272-8114

Marilyn Crockett, Exec. Dir.

Alaska Process Industry Careers Consortium 2600 Denali St., Ste. 700 Anchorage, AK 99503 Phone: 907-770-5250 Fax: 907-770-5251

AK Empls.

Business Description Services: Environmental testing laboratory. Soil analysis for methods, 8021B/ AK101, AK 102/103. ADEC certified.

2008

klovejoy@alaska-analytical.com www.alaska-analytical.com 1984

fweiss@anvilcorp.com www.anvilcorp.com 2005

Services: Multidiscipline engineering and design services, project management, conceptual and feasibility studies, project scope of work development, cost estimating and scheduling, procurement and safety services, and API tank inspection. Notable Clients: Alyeska Pipeline Service Co., BP Exploration (Alaska) Inc., Flint Hills Resources, Petro Star, Tesoro Alaska, GCI and ConocoPhillips Alaska. Services: Specializing in Arctic and remote-site development projects with the experience, equipment and personnel necessary to safely and efficiently complete a wide range of jobs.

afcinfo@ak.net www.akfrontier.com 1982

600

1980

david.gonzalez@aicllc.com www.aicllc.com

beckym@lynden.com www.shipaml.com

Services: Ice and snow roads, well-site pads, gravel roads, bridges and culverts, structures, airstrips and helipads, gravel islands, dock and port facilities, excavation, communications, pipeline installation, environmental remediation, and more. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, Alyeska Pipeline Service Co., Alaska Department of Transportation, Nova Gold, and more. Services: Coastwide transportation, scheduled and nonscheduled barge service. Twice-weekly scheduled barge service to Southeast Alaska and weekly scheduled barge service to Central Alaska. Services: Nonprofit trade association whose member companies represent most oil and gas exploration, production, transportation, refining and marketing activities in Alaska. AOGA provides a forum for communication and cooperation with members, the public and local, State and federal governments for the petroleum industry in Alaska.

info@aoga.org www.aoga.org

Services: Workforce development, career awareness for the process industries. Todd Bergman, Exec. Dir.

1999

mmiles@apicc.org www.apicc.org

Mobile Refueling

Fueling the companies that fuel our economy

Anchorage 344.4571 Cordova 424.3264 Seward 224.8040 Whittier 472.2314

www.shoresidepetroleum.com Quality Fuels and Lubricants www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Alaska Railbelt Marine PO Box 24348 Seattle, WA 98124 Phone: 206-768-3545 Fax: 206-764-5782

Mike Halko, Pres.

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

Charles Cartier, VP

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

Paul Laird, Gen. Mgr.

Alaska West Express 1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-279-9515 Fax: 907-272-8152

Dean C. McKenzie, Pres.

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

Kevin Hostler, Pres./CEO

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

Terry Umatum, Alaska Sales Mgr.

American Marine Corp. & Pacific Environmental Corp. 6000 A St. Anchorage, AK 99518 Phone: 907-562-5420 Fax: 907-562-5426

100

Estab.

AK Empls.

Business Description Services: Scheduled and nonscheduled rail and cargo barge service to Central Alaska.

1999

1988

1979

1978

122

Services: Truckload transportation, specializing in shipments containing liquid and dry-bulk products, hazardous, nonhazardous chemicals and petroleum products. Intermodal transfer facility in Fairbanks specializes in railcar transfer, and more. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, Teck-Pogo Inc., NC Machinery, Craig Taylor Equipment and Construction Machinery Industrial.

1970

800

Services: The 800-mile long Trans Alaska Pipeline System (TAPS) is one of the world’s largest pipeline systems. Starting in Prudhoe Bay on Alaska’s North Slope, TAPS stretches through rugged and beautiful terrain to Valdez, and more. Notable Clients: BP Pipelines (Alaska) Inc., ConocoPhillips Transportation Alaska Inc., ExxonMobil Pipeline Co., Unocal Pipeline Co. and Koch Alaska Pipeline Co. LLC.

1984

Services: Full range of ocean and air freight forwarding services, including bypass mail. Company owns and operates its own fleet, including tractors, trailers, box trucks, refrigerated trailers, containers and flatbeds. In Alaska, operates a warehouse and distribution company, file storage/shredding services company, and a residential and commercial moving and storage company, and more.

1994

200

Services: Bonded full-service specialty marine contractor providing marine safe, complaint and cost-effective operations in marine construction, oil and gas infrastructure installation, maintenance and repair, dredging, , and more. Notable Clients: BP Alaska, ConocoPhillips, Shell Offshore, Shell E&P, Shell Pipeline, Tesoro Alaska, XTO Energy, GCI, ITT, Environmental Crossings, and more.

mhalko@arm.lynden.com www.lynden.com

www.akrubber-rigging.com

info@alaskaalliance.com www.alaskaalliance.com

www.awe.lynden.com

alyeskamail@alyeska-pipeline.com www.alyeska-pipe.com

umatumt@americanfast.com www.americanfast.com Tom Ulrich, VP

alaska@amarinecorp.com www.amarinecorp.com or www.penco.org

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

AK Empls.

Business Description Services: American Petroleum Institute certified inspector-653 tank and 570 piping, Certified Welding Inspection (CWI), site inspection, regulatory compliance management and assistance, spill prevention, plan review, and more. Notable Clients: Fex LP, Brooks Range Petroleum Corp., ASRC Energy Services, Rain for Rent, Peak Oilfield Service Co., Atigun, Chevron, Petro Star Inc., and more. Services: Oil and gas services provider for every aspect of oil ield services and industrial facilities development from the earliest regulatory stage through exploration, drilling support, engineering, fabrication, construction, and more. Notable Clients: Alyeska Pipeline, Anadarko, BP, Chevron, ConocoPhillips, ExxonMobil, Marathon, Parker Drilling, Pioneer Natural Resources, and more.

Arctic Regulatory Compliance & Technical Oilfield Services LLC 130 W. Int’l Airport Rd., Ste. R Anchorage, AK 99518 Phone: 907-632-1006 Fax: 866-532-3915 ASRC Energy Services Inc. 3900 C St., Ste. 701 Anchorage, AK 99503 Phone: 907-339-6200 Fax: 907-339-6212

Kirsten Ballard, Owner/CEO

2006

kirsten@arctosak.com www.arctosak.com Mark C. Nelson, Pres./CEO

1985

2,865

Aurora Gas LLC 1400 W. Benson Blvd., Ste. 410 Anchorage, AK 99503 Phone: 907-277-1003 Fax: 907-277-1006

G. Scott Pfoff, Pres.

1999

Notable Clients: Oil & Gas

Big G Electric & Engineering 42005 Kalifonsky Beach Rd. Soldotna, AK 99669-8229 Phone: 907-262-4700 Fax: 907-262-1011

Bruce M. Gabriel, Pres.

1987

Services: Electrical/instrumentation services, directional boring, utility work, UL-508 panel shop, third-party meter proving, QA/QC program-drilling support crews. A versatile electrical contractor; and more. Notable Clients: ConocoPhillips, Tesoro Petroleum, Marathon, CH2M HILL, Peak Oilfield, Chevron, Doyon and General Communications Inc.

BJ Services Co. U.S.A. 430 C St., Ste. 340 Anchorage, AK 99501 Phone: 907-349-6518 Fax: 907-349-1486

Rod Edwards, Alaska Acct. Mgr.

1969

Brice Inc. PO Box 70668 Fairbanks, AK 99707 Phone: 907-452-2512 Fax: 907-452-5018

Sam Robert Brice, Pres.

1961

Services: High-pressure pumping services, coiled-tubing services, DUCT, down-hole tools, process and pipeline service, well control, production chemicals, casing/tubing services, commissioning, leak-detection services, and more. Notable Clients: Alyeska Pipeline, BP Exploration (Alaska) Inc., Aurora Gas LLC, Marathon, Tesoro, XTO Energy, ConocoPhillips, and more. Services: Remote Arctic construction, road construction, gravel pads, rock crushing/material production, airstrip construction, gravel hauling and marine services. Environmental Division: Drilling mud stabilization, and more. Notable Clients: Alaska Department of Transportation and public facilities, USACE, Red Dog Mine, Chevron, AVEC, FEX, AECOM and BEM.

Bristol Fuel Systems Engineers & Constructors 111 W. 16th Ave., Third Flr. Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713

Joe Terrell, CEO

info@asrcenergy.com www.asrcenergy.com

gspfoff@aurorapower.com www.aurorapower.com

bigg@biggelectric.com www.biggelectric.com

rod_edwards@bjservices.com www.bjservices.com

albab@briceinc.com www.bricecompanies.com 1994

Services: Specializing in design, construction and maintenance of aviation bulkfuel storage and distribution systems. Notable Clients: Tesoro

mheiken@bristol-companies.com www.bfs.bristol-companies.com

Where the road ends…

Our Work Begins

Cruz Construction is proud to announce the launch of our latest division, Cruz Marine LLC. We can transport equipment, materials, and supplies to locations in coastal Alaska or along inland waterways. And we are adding tugs and barges with ice-strengthened hulls to our ﬂeet for next season. Whether by land or water, we are a partner who can deliver what you need, when and where you need it.

Anywhere you need it. Any season of the year. www.akbizmag.com • Alaska Business Monthly • May 2010

MARINE LLC

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

101

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

C2 North LLC 721 Sesame St., Ste. 24 Anchorage, AK 99503 Phone: 907-569-9122 Fax: 603-949-6204

Melanie Roller, Member/Owner

Caribou Construction Inc. 5100 Cordova St., Ste. 206 Anchorage, AK 99503-7243 Phone: 907-563-5444 Fax: 907-562-6448

Don Pearson, Gen. Mgr.

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

Harry McDonald, CEO

CCI Inc. 111 W. 16th Ave., Ste. 401 Anchorage, AK 99501-3717 Phone: 907-258-5755 Fax: 907-258-5766

Keith Burke, Pres./CEO

CH2M Hill 949 E. 36th Ave., Ste. 500 Anchorage, AK 99508 Phone: 907-62-1500 Fax: 907-762-1600

Charles O’ Donnell, Pres.

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

Joe Obrochta, Pres./CEO

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

Mark Helmericks, Pres./CEO

102

Estab.

AK Empls.

Business Description

2001

Services: Project management, technical writing and business solutions for the oil and gas industry. Notable Clients: BP Exploration (Alaska), ConocoPhillips China, Denali - the Alaska Gas Pipeline and CH2M HILL.

1987

Services: General oilfield contractor providing remote-site camps, D7 Caterpillars, 977 loaders, Challenger tractors and wagons, fuel sleighs, freight sleighs, mulchers and personnel. Remote-site cleanup support, well closures, removal of debris for environmental cleanups and freight hauls to remote villages.

1980

600

Services: Alaskan-owned and-operated, full-service transportation and logistics company. Offering multi-modal transportation and logistics services between all points in Alaska, Hawaii, Canada and Lower 48, and more. Notable Clients: Serving all the major oil companies and those that provide services to the industry.

mroller@c2north.com www.c2north.com

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

pspittler@carlile.biz www.carlile.biz

Services: Oilfield contracting provider of environmental and construction services, maintenance support, specialty product application, hazardous/nonhazardous waste management and soil-spill response. HAZMAT.

1989

www.ccialaska.com 1964

3,000

1996

113

1981

120

eric.helzer@ch2m.com www.ch2m.com

mhenriksen@chiulista.com www.chiulista.com

info@colvilleinc.com www.colvilleinc.com

Services: Energy & Chemical: engineering, procurement, construction, fabrication, operations, maintenance and oilfield services. Environmental: assessments, air, water, soil and remediation. Transportation: highway exchanges, docks and bridges, air and marine ports, mining and minerals and industrial systems. Notable Clients: All major and minor oil and gas producers. Services: Provides temporary remote-site personnel, camp management, catering and housekeeping, and expediting services to the petroleum, mining, commercial fishing and construction industry operations in rural Alaska, and more. Notable Clients: Nordic Calista Services, Barrick Gold (Donlin Creek Project), Nixon Fork Mine (Mystery Creek Resources), NorQuest Seafoods Inc., and more. Services: Fuel services, solid waste and recycling services, industrial supply. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, CH2M HILL, Alaska Airlines, North Slope Borough and Alyeska Pipeline Service Co.

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

AK Empls.

1953

250

1981

150

1969

Services: Turbo diesel engines, power generation, sales, parts and service. Notable Clients: Fairbanks Gold, BP Exploration, Alaska Boat Co., K&L Distributors, AVEC, Weaver Brothers, People Movers, Lynden Transport, Sourdough Express, Peak Oilfield, Crowley, CH2M Hill, Alaska DOT, Kenworth, BJ Watson and United Freight.

Business Description Services: Ocean transportation, marine logistics, All-terrain transportation, heavy hauling, ice road and ice island construction, ship assist and escort (Valdez), petroleum-product transportation and sales. Notable Clients: The petroleum industry, Ship Escort/Response Vessel System (SERVS), Alyeska Pipeline Service Co., and more. Services: Ice road and ice pad construction, Rig service and rig moving, Tundra transportation, Heavy civil construction, including roads and pads, erosion control, seismic line cleaning, portable bridges, and more. Notable Clients: Pioneer Natural Resources, BP Exploration (Alaska) Inc., ConocoPhillips, Forest Oil, FEX LP, Teck-Cominco, Chevron USA, and more.

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

William Hill, Dir. Bus. Dev.

Cruz Construction Inc. 3852 N. Clark-Wolverine Palmer, AK 99645 Phone: 907-746-3144 Fax: 907-746-5557

Dave Cruz, Pres.

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

Stephen G. Rude, Ops Mgr.

CWM Industries Inc. 340 E. 76th Ave. Anchorage, AK 99518-2840 Phone: 907-349-7649 Fax: 907-349-6404

Allen Thornhill, Pres.

1983

Services: Machine shop, welding, fabrication, structural piping, field services, crane booms, aluminum boat and fabrication.

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

Jeffrey Yates, Gen. Mgr.

1987

Delta Leasing LLC PO Box 240925 Anchorage, AK 99524 Phone: 907-771-1300 Fax: 907-771-1380

Matt Thorpe, Dir. Sales/Bus. Dev.

2002

Services: Celebrating 23 years, a leader in the development of software for digital mapping and photogrammetric applications. Specialize in 3D stereo-viewing of aerial photographs and satellite imagery for the production of engineering-quality maps, digital orthophotos and GIS databases, and more. Notable Clients: McClintock Land Associates, Aero-Metric Inc., and more. Services: Deadline-driven and results-oriented leasing company providing leasing solutions for modular living facilities, equipment and vehicles. Specializing in remote camps for the oil and gas industry. Alaskan-owned and-operated. Notable Clients: Alyeska Pipeline Service Co., BP, ConocoPhillips, Encna Oil & Gas (USA) Inc., Eni Petroleum, Exxon Mobil and Pioneer Natural Resources.

Denali – The Alaska Gas Pipeline 188 W. Northern Lights Blvd. Anchorage, AK 99503 Phone: 907-865-4706 Fax: 907-865-4790

Bud Fackrell, Pres.

crowley.alaska@crowley.com www.crowley.com

info@cruzconstruct.com www.cruzconstruct.com

www.cumminsnorthwest.com

jyates@datem.com www.datem.com

info@deltaleasing.net www.deltaleasing.net 2008

Services: Denali - The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver more than 4 billion cubic feet of natural gas per day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.

www.denalipipeline.com

Providing Service to Alaska since 1963

To book freight, get quotes, or ask questions CONTACT OUR CUSTOMER SERVICE DESK 1.866.935.6825 customerservicedesk@ntcl.com

WE DELIVER.

www.ntcl.com

www.akbizmag.com • Alaska Business Monthly • May 2010

103

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

Doyon Drilling Inc. 3201 C St., Ste. 700 Anchorage, AK 99503-3934 Phone: 907-563-5530 Fax: 907-561-8986

Aaron Schutt, Pres.

Doyon Emerald (Emerald Consulting Group LLC) 670 W. Fireweed Ln., Ste. 200 Anchorage, AK 99503 Phone: 907-258-8137 Fax: 907-258-8124

Bettina Chastain, PE

Doyon Universal Services LLC 701 W. Eighth Ave., Ste. 500 Anchorage, AK 99501-3469 Phone: 907-522-1300 Fax: 907-522-3531

Kelly Patrick, VP

Enstar Natural Gas Co. PO Box 190288 Anchorage, AK 99519-0288 Phone: 907-277-5551 Fax: 907-334-7737

Colleen Starring, Pres.

Entrix 1600 A St., Ste. 304 Anchorage, AK 99501 Phone: 907-563-0438 Fax: 907-563-0439

Michael Nagy, Office Mgr.

Era Alaska 6160 Carl Brady Dr. Anchorage, AK 99502 Phone: 907-248-4422 Fax: 907-266-8391

Bob Hajdukovich, Pres./CEO

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

Terry Bennett, VP Alaska Ops

AK Empls.

Business Description

1982

266

Services: Oil well drilling contractor. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, Pioneer Natural Resources, UltraStar, Savant Alaska, Anadarko, FEX LP, Eni Petroleum and Rampart Energy.

1996

Services: Specialized provider of management and consulting services in the fields of program management, project management, business management, logistics management, information technology/telecommunications, and more. Notable Clients: ConocoPhillips Alaska Inc., ConocoPhillips Co., BP Exploration (Alaska) Inc., Alyeska Pipeline Service Co., and more.

1946

850

Services: Operational support services, including catering, security and facility maintenance. Notable Clients: ConocoPhillips, Alyeska Pipeline, Doyon Drilling and Nabors Alaska.

1961

182

Services: Distributes natural gas to residential and business communities in Southcentral Alaska.

1984

Services: Oil and gas permitting and compliance services.

1948

800

Services: Scheduled airline services to more than 100 communities statewide, comprised of Era Aviation, Frontier Flying Service, Hageland Aviation Services and Arctic Circle Air. Notable Clients: Alyeska Pipeline Service Co., Exxon Mobil, Shell Oil and ConocoPhillips.

1948

108

Services: Helicopter charters, flight-seeing tours, aerial photography, air and land adventures, dog sled adventures, heli-hiking, construction, mineral exploration, seismic, remote-site work, oil and gas support, internal and external load work. Notable Clients: Statewide and worldwide.

info@doyondrilling.com www.doyondrilling.com

ecg@doyonemerald.com www.doyonemerald.com

www.doyonuniversal.com

info@enstarnaturalgas.com www.enstarnaturalgas.com

www.entrix.com

info@flyera.com www.flyera.com

bbarber@erahelicopters.com www.erahelicopters.com or flightseeingtours.com

Serving Alaska for over  years •

Mechanical and electrical inspection, QA/QC , revamp, functional check out, commissioning and as-built programs.

•

UDELHOVEN OILFIELD SYSTEM SERVICES, INC. 184 E. 53rd. Ave. Anchorage, AK 99518 Phone 907-344-1577 Fax 907-522-2541

104

Construction, industrial and modular fabrication.

•

HVAC, state certified plumbers.

•

Structural welding.

•

Process piping.

P.O. Box 8349 Nikiski, AK 99635 Phone 907-776-5185 Fax 907-776-8105

www.akbizmag.com • Alaska Business Monthly • May 2010

Pouch 340103 Prudhoe Bay, AK 99734 Phone 907-659-8093 Fax 907-659-8489

Delta Delivers BP Liberty SDI Drill Camp North Slope, Alaska

Alaskan-owned Deadline driven Results oriented Delivering leasing solutions for Alaskaâ&#x20AC;&#x2122;s oil and gas, mining and construction industries. We provide the equipment, facilities and services you need to turn problems into solutions.

4040 B St. Suite 200 Anchorage, AK 99503 907.771.1300

deltaleasing.net

Fleet Vehicles | Industrial Equipment | Remote Camps & Facilities

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

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

Larry Weihs, COO

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

Robert W. Everts, Pres.

Fairweather E & P Services Inc. 310 K St., Ste.700 Anchorage, AK 99501 Phone: 907-264-6100 Fax: 907-264-6190

Jesse Mohrbacher, Pres.

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

Matthew Holta, Branch Mgr.

FMC Technologies Inc. 700 W. Int’l Airport Rd., Ste. A1 Anchorage, AK 99518 Phone: 907-563-3990 Fax: 907-563-5810

Alan McArthur, Area Mgr.

Frawner Corp. 9024 Vanguard Dr., Ste. 204 Anchorage, AK 99507 Phone: 907-561-4044 Fax: 907-346-4797

Jay Frawner, Pres.

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

Scott Widness, Alaska Div. Mgr.

106

Estab.

AK Empls.

Business Description

1986

200

Services: Remote camp services, catering services for both remote locations and Anchorage, Kenai and Mat-Su Valley events, temporary labor services, camp supply, hard camps and tent camps. Notable Clients: Chevron, Alaska Railroad, Sumitomo Metal Mining Pogo, Hess Oil Co., Schlumberger, Halliburton, Shell and TransCanada.

1995

280

Services: Scheduled and charter air transport services, including freight, fuel or passenger. Emphasis is placed on serving the unique needs of each customer, along with specializing in the movement of hazardous materials and oversized freight. Passenger charters using Embracer 30 seat aircraft.

1993

Services: Provides project management and development, engineering, drilling, permitting, logistics and operational services to the exploration and production sectors of the petroleum industry.

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

rragar@evertsair.com www.evertsair.com

bill@fepsi.com

Services: Provider of recruitment solutions to specialist technical industries, active in more than 40 countries worldwide. Providing more than 5,000 contractor professionals in support of clients global operations. Working with some of the world’s largest energy companies and deliver professional services contract, and more. Notable Clients: BP, Exxon, Chevron and Shell.

2009

mholta@fircroft.com www.fircroft.com 1965

Services: Supplier of wellheads and Christmas trees, with a repair and service organization to support North Slope and Cook Inlet locations.

2002

Services: General construction, building trenchless technologies construction, HVAC and horizontal directional drilling. Notable Clients: Department of Defense.

1994

alan.mcarthur@fmcti.com www.fmcti.com

frawner@frawnercorp.com www.frawnercorp.com

swidness@fugro.com www.fugro.com

Services: Geophysics and geotechnical services. Arctic engineering, route studies, logistical planning, horizontal directional drilling design, pipeline evaluation, engineering geophysics, oceanography. Offshore surveying: coastal zone and riverine mapping, hydrographic surveying and charting, geologic hazards evaluations, environmental studies. Geospatial services, airborne mapping (photogrammetric, lidar, radar), 3D modeling and visualization, GIS. Airborn, and more.

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

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

Richard Gunter, Pres.

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

Chuck Robinson, Alaska Area Mgr.

Global Offshore Divers 5400 Eielson St. Anchorage, AK 99518 Phone: 907-563-9060 Fax: 907-563-9061

Devan Grennan, Gen. Mgr.

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

Mark Musial, Mgr. Alaska Ops

Great Circle Flight Services 6121 S. Airpark Pl., Ste. 2 Anchorage, AK 99502 Phone: 907-245-1232 Fax: 907-245-1501

Louis Jennings, Gen. Mgr.

Estab. 1986

AK Empls. 6

Business Description Services: Down-hole tools and oilfield threading, general machine equipment repairs, pumps, air compressors and babbit bearings.

ggms@acsalaska.net www.ggms.biz Services: Statewide geophysical programs, specializing in HD3D (high-density) 3-D surveys. Notable Clients: BP, Anadarko, TOTAL, FEX, Encaha, PetroCanada, Forest Oil, Andex Resources, Doyon Limited, Armstrong, Rutter and Wilbanks.

2000

charles.robinson@geokinetics.com www.geokinetics.com 1998

Services: Commercial diving contractor, oilfield diving contractor, underwater welding, underwater NDT, underwater pipeline installation and repair, international marine salvage, civil and private marine construction, ship husbandry, and more. Notable Clients: Chevron, Alyeska Pipeline Service Co., XTO Energy, State of Alaska DOT, Marathon Oil, Crowley Maritime, Swalling Construction, and more.

1980

Services: Cold-region engineering and technical expertise related to earth, air and water. Notable Clients: Alaska Department of Transportation, Alaska Railroad and Alaska Native Tribal Health Consortium.

2005

Services: Offers personal, attentive FBO services to private and charter aircraft traveling to and through Alaska. Open 24 hours. Notable Clients: Large corporate flight departments, jet charter companies and local air charter operations.

1985

Services: Project control, management, cost engineers, QA/QC, maintenance coordinators, supervision/project coordinators, contract dispute resolution and professional staffing services. Notable Clients: Alyeska Pipeline and BP (Alaska) Exploration Inc.

1956

Services: Light-to-heavy-metal fabrication, processing, 10-foot shear, 10-foot and 14-foot brake, plate rolls, shape rolls, profile cutting, more than 800-ton stock on hand, metal sales and equipment rentals, and more. Notable Clients: A.F.C., Cruz Construction, Great Northwest Inc., Ghemm Company, Alaska Petroleum, Flint Hills Resources, T.C.I., and more.

info@gdiving.com www.gdiving.com

www.golder.com

dispatch@greatcircleflight.com www.greatcircleflight.com

Hawk Consultants LLC 670 W. Fireweed Ln., Ste. 201 Anchorage, AK 99503 Phone: 907-278-1877 Fax: 907-278-1889

Maynard Tapp, Managing Member

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

Ken Therriault, Gen. Mgr.

info@hawkpros.com www.hawkpros.com

hectors@acsalaska.net www.hectorswelding.com

www.akbizmag.com • Alaska Business Monthly • May 2010

107

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

Inlet Drilling Alaska Inc. 210 N. Willow St. Kenai, AK 99611-7703 Phone: 907-283-3567 Fax: 907-283-7065

Donald J. Dodge, Pres.

Inlet Petroleum Co. 459 W. Bluff Dr. Anchorage, AK 99501 Phone: 907-274-3835 Fax: 907-272-8151

Rocky Brew, Pres.

Judy Patrick Photography 430 W. Seventh Ave., Ste. 220 Anchorage, AK 99501 Phone: 907-258-4704 Fax: 907-258-4706

Judy Patrick, Owner/Photographer

Kakivik Asset Management LLC 111 W. 16th Ave., Ste. 100 Anchorage, AK 99501 Phone: 907-770-9400 Fax: 907-770-9450

Scott Torrison, Pres./CEO

AK Empls.

Business Description

1992

Services: Oil and gas drilling contractor.

1986

Services: Alaska’s largest lubricant supplier. The base of its product selection is commercial and industrial lubricants, featuring the Chevron and ConocoPhillips (76 lubricants), Shell, Pennzoil-Quakerstate, BP/Castrol, and Aeroshell brands. A major supplier of automotive and industrial antifreeze, Wix filters, additives, industrial cleaners and spill-response supplies, and more.

1984

1999

158

Services: Creative photography of oil and gas exploration and production on Alaska’s North Slope. Judy is a 20-year veteran photographing in Alaska’s oil industry from Cook Inlet to the Arctic, and more. Notable Clients: BP, ConocoPhillips Alaska Inc., Chevron, Anadarko, Pioneer Natural Resources, Shell Exploration and Production Co. Services: Full service asset integrity management company, specializing in nondestructive testing (NDT), external and internal corrosion investigation and quality program management. Offers mechanical and civil inspections, and more. Notable Clients: ConocoPhillips, BP, Alyeska Pipeline Service Co., Marathon, Sinclair, Enterprise Engineering, Boeing, Doyon Utilities, Ch2M Hill, ML&P, and more.

1974

300

Services: Operations support services such as catering and camp management. Notable Clients: ConocoPhillips, BP, Anadarko Petroleum Co., Pioneer Natural Resources, CH2M HILL, Shell Oil and Eni Petroleum.

inletdrl@acsalaska.net

info@inletpetroleum.com www.inletpetroleum.com

judy@judypatrickphotography.com www.judypatrickphotography.com

virwin@kakivik.com www.kakivik.com

Kuukpik Arctic Catering 1301 Huffman Rd., Ste. 206 Anchorage, AK 99515 Phone: 907-562-5588 Fax: 907-562-5898

Rick MacMillan, VP

Kuukpik Drilling LLC 801 B St., Ste. 300 Anchorage, AK 99501 Phone: 907-279-6214 Fax: 907-279-2609

W.R. Hicks, Gen. Mgr.

2002

Services: Oil, gas drilling and workover. Geothermal drilling and workovers. Notable Clients: ConocoPhillips Alaska and Puna Geothermal.

LCMF LLC 615 E. 82nd Ave., Ste. 300 Anchorage, AK 99518 Phone: 907-273-1830 Fax: 907-273-1831

Steve Chronic, Gen. Mgr.

1982

Services: Land surveying, oilfield exploration, construction and support, and bulk fuel.

info@kasvcs.com www.kasvcs.com

www.lcmf.com PA I D

A D V E RT I S E ME N T

Denali D enali enal ali Group Gro roup up honors Jack Jac Ja ack ck Crockett Cro rock cke ket ett tt upon up retirement ret re ettire rement nt after afte aft fter er 40 years year ye arss of service serrv servi rvi vice ce Denali Group recently honored Jack Crockett, Vice President of Corporate Sales, upon his retirement from the company. Jack’s career with the company spanned 40 years and included serving in a wide range of capacities, from driver to Vice President. After working summers for the company while in school, Jack joined the company full-time in 1970 as a driver for Pacific Movers. As the company grew and new acquisitions were obtained, Jack transitioned from “behind the wheel” to “behind the desk”, serving in various capacities in Operations and Sales. Early in his career, Jack served as Dispatcher, Sales Representative and then as General Manager of the Anchorage and Fairbanks divisions of Pacific Movers.

108

Jack Crockett, Vice President of Denali Group.

In 1994 he was promoted again, this time to Corporate Sales for Denali Group, representing the company’s diverse holdings at international conventions and traveling extensively throughout the country. Jack then served as Vice President, and was particularly instrumental in overseeing the company’s expanded focus on local and military household relocations. Throughout the last decade he has overseen the company’s successful involvement in multiple Army and Air Force

deployments in Alaska. He also was responsible for the company’s relocation of the Alaska Native Hospital to the new Alaska Native Medical Center in Anchorage from its downtown location to Tudor Road. For the last two years he has held the position of Vice President of Corporate Sales. “Jack Crockett was always our secret weapon. His rare ability with people was an extraordinary asset for our company. He is legendary in the Moving business and

anyone who knows Jack knows what a great friend he is to all! He has been part of our family for 40 years and always will be,” said Walt and Katherine Schlotfeldt, owners of Denali Group, Inc. Jack served as the Alaska Movers Association President, as a board member of Food Bank of Alaska and for a number of years has served as a board member and Golf Tournament Committee Chair of the Armed Forces YMCA of Alaska, “Serving Those Who Serve Us.” In his retirement, Jack plans on dividing his time between his pool at home in Richardson, Texas, and on his boat in Big Lake, Alaska. Jack and his wife, Marilyn, have three children, Brian, Deantha and Jack Rader.

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

LifeMed Alaska LLC 4700 Business Park Blvd., Ste. E25 Anchorage, AK 99503 Phone: 907-249-8401 Fax: 907-563-6636

Gary Stromberg, CEO

Lynden Air Cargo 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-7248 Fax: 907-245-0213

Judy McKenzie, Pres.

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

Dave Richardson, Pres.

Lynden Logistics 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-249-0215 Fax: 907-245-1744

Alex McKaller, Pres.

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

Jim Beck, Pres.

M-I SWACO 721 W. First Ave. Anchorage, AK 99501 Phone: 907-646-3200 Fax: 907-279-6729

Erin Brayer, Alaska Reg. Mgr.

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

Don Fell, Pres.

Estab.

AK Empls.

Business Description

2008

Services: Critical-care air ambulance services, state certified: advanced life support and medivac services. CAMTS accredited. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips and Arctic Slope Regional Corp.

1996

161

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

1980

Services: International air and ocean forwarding and logistics.

Services: Transportation logistics, including coordination, freight-forwarding, consolidation, warehousing, distribution, packing and crating, order entry, fulfillment and support, information management, bill audit, processing and payment.

www.lifemedalaska.com

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

rickp@lynden.com www.laf.lynden.com

jjohn@lynden.com www.lynden.com 1954

153

Services: Full-service freight transportation to, from and within Alaska.

1976

200

Services: M-I SWACO, through its completion fluids, drilling fluids and SWACO divisions, provides total fluids management to the oil and gas industry in Alaska.

1973

paulf@lynden.com www.lyndentransport.com

ebrayer@miswaco.com www.miswaco.com

info@maritomehelicopters.com www.maritimehelicopters.com

Services: Maritime Helicopters supports marine, petroleum, construction, as well as State and federal Agencies. Operates six-passenger Bell-407, Bell Long Ranger, and four-passenger Bell Jet Ranger helicopters. Maritime Helicopters also operates a 86 foot research vessel with Heli-Pad.

www.akbizmag.com • Alaska Business Monthly • May 2010

109

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

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

Jeffrey Baker, Alaska Office Principal

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

Randy Orr, VP/Gen. Mgr.

Motion Industries 5401 Fairbanks St., Ste. 2 Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536

Chris Ransom, Branch Mgr.

MRO Sales Inc. 5631 Silverado Way, Ste. G Anchorage, AK 99518 Phone: 907-248-8808 Fax: 907-248-8878

Kevin Durling, Pres.

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

Allan Dolynny, Pres./Gen. Mgr.

NC Power Systems 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7563 Fax: 907-786-7567

John J. Harnish, Chair/CEO

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

Mary Quin, Pres.

AK Empls.

Business Description Services: Civil and pipeline engineering and design. Hydrology and hydraulic studies. Geotechnical investigations. NEPA and permitting. GIS.

1942

1979

2007

Services: A leading industrial maintenance, repair and operation (MRO) replacement parts distributor of bearigs, power transmission, electrical and industrial automation, hydraulic and industrial hose, hydraulic and pneumatic components, process pumps and equipment

1990

Services: Belzona repair products, Hydralight/Sweeney Bolting, Craftsman industrial tools distributor, Cortec corrosion inhibitors, Armstrong tools, Mission Fluid King, Kenco, Reznor, Mac Tools, Autoclave, D.L. Ricci Corp., and more. Notable Clients: Alaska DOT, BP Exploration (Alaska) Inc., ConocoPhillips Alaska, Marathon, Municipality of Anchorage, Doyon Drilling, and more.

www.mbakercorp.com

info.panc@millionair.com www.millionair.com/panc

www.motionindustries.com

sales1@mrosalesinc.com www.mrosalesinc.com

1926

180

sfield@ncmachinery.com www.ncpowersystems.com

1950

www.northstarak.com

Northern Air Cargo 3900 Old International Airport Rd. Anchorage, AK 98502 Phone: 907-243-3331 Fax: 907-249-5191

David W. Karp, Pres./CEO

Northern Transportation Co. Ltd. 10104 103 Ave., Ste. 1209 Edmonton, AB TSJ0H8 Phone: 867-874-5167 Fax: 867-874-5179

John Marshall

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

Mary E. Shields, Gen. Mgr.

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

Ed Fitzgeralds, CEO

Parker Drilling 1420 E. Tudor Rd. Anchorage, AK 99507 Phone: 907-339-4000 Fax: 907-339-4001

David C. Mannon, Pres./CEO

Peak Oilfield Service Co. 2525 C St., Ste. 201 Anchorage, AK 99503 Phone: 907-263-7000 Fax: 907-263-7070

Mike O’Connor, Pres.

Pearson of Alaska 5100 Cordova St., Ste. 206 Anchorage, AK 99503-7243 Phone: 907-563-3067 Fax: 907-562-6448

Donald E. Pearson, Pres.

Petro Star Inc. 3900 C St., Ste. 802 Anchorage, AK 99503 Phone: 907-339-6600 Fax: 907-339-6653

Doug Chapados, Pres./CEO

1956

Services: Caterpillar engine sales, parts and service throughout the state. Product packaging for marine, electric power, oil and gas industries. Temperature control, compressed air and power generator rentals. Services: Provides a wide variety of business management services encompassing food, facilities, security, safety, training, hotels, employee leasing and catering. Notable Clients: BP Exploration (Alaska) Inc., Alyeska Pipeline Services, UAF, Alaska Airlines, Providence Hospital, Alaska Pioneer Homes, Marathon Oil, Alaska Native Medical Center, Sitka School District, and more. Services: Provided full-service stevedoring services at ports in Anchorage, Valdez, Homer, Seward, Dutch Harbor since 1950. Looking forward to operating at other ports as the demands of the industry require, and more. Notable Clients: AIC, ASRC, Boeing, BP, Builders Choice, ConocoPhillips, Crowley, Denali, Eni Petroleum, Ground based missile defense system, and more.

1974

information@nmsusa.com www.nmsusa.com Jeff Bentz, Pres.

Services: Largest 24-hour, full-service FBO Four hangers with more than 100,000 square feet of hanger and office space. More than 10 acres of ramp space. Service corporate aircraft, including fuel, de-icing, parking, customs assistance, hanger space and catering. Notable Clients: Fortune 500 companies and general aviation.

Services: Project-delivery company focused on multi-discipline engineering and design, procurement and construction-management services for the hydrocarbons, power, minerals and metals and infrastructure and environment industries. The three main business units deliver capital projects, operations and maintenance design services and fire and gas integrated life and asset protection services.

1997

info@nanaworleyparsons.com www.nanaworleyparsons.com

North Star Terminal & Stevedore Co. LLC PO Box 102019 Anchorage, AK 99510 Phone: 907-263-0120 Fax: 907-272-8927

110

Estab.

295

info@nac.aero www.nac.aero

Services: Quality air cargo services to 14 rural Alaskan locations. Boeing 737 fleet accommodates oversized freight and small package express services. Certified repair station and ground handling-services also available. Services: Marine transportation, sales and supply and exploration support. Notable Clients: Doyon Drilling, Shell Exploration, BP and North Slope Borough.

1963

ntcl@ntcl.com www.ntcl.com 1981

100

Services: Connecting the right people to the right jobs. Notable Clients: NWTS clients are businesses and industries that require administrative, technical, professional, craft or direct staff support, including the oil industry.

1961

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

2008

Services: Contract drilling, drilling and production rental tools, advanced rig design, engineering, rig construction, extended-reach drilling, drilling in environmentally sensitive and harsh/remote climates, training and HSE programs. Notable Clients: BP Exploration (Alaska), ExxonMobil, Eni Petroleum, Schlumberger, ConocoPhillips.

1987

585

Services: Alaska general contractor providing fabrication, construction, facility maintenance, tank cleaning, ice and gravel road construction, drilling support, rig moving, crane services, camp facilities, logistics and rolligon transport services. Notable Clients: ConocoPhillips, Alyeska Pipeline Services, Chevron, Tesoro, Marathon Oil, Anadarko and BP Exploration (Alaska) Inc.

www.pdstech.com

www.pafak.com

bobi.akers@parkerdrilling.com www.parkerdrilling.com

www.peakalaska.com

Services: Remote-site camps, D7 Caterpillar, 977 loaders, Challenger tractors and wagons, fuel sleighs, freight sleighs and personnel. Geophysical and remotesite cleanup support.

1976

tpquick@gci.net www.dpnorth.com 1984

290

Services: Refines and distributes heating fuel, diesel fuel and jet fuel.

www.petrostar.com

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Petroleum Equipment & Service Inc. 5631 Silverado Way, Ste. G Anchorage, AK 99518 Phone: 907-248-0066 Fax: 907-248-4429 Petrotechnical Resources Alaska (PRA) 3601 C St., Ste. 822 Anchorage, AK 99503 Phone: 907-272-1232 Fax: 907-272-1344

Kevin Durling, Pres.

Estab.

AK Empls.

1983

1997

sales@pesiak.com www.pesiak.com Tom Walsh, Managing Member info@petroak.com www.petroak.com

Business Description Services: Weatherford Cementation products, casing centralizers, float equipment, Tam International, inflatable packers, port collars, Ray Oil Tools, specialty centralizers, Tesco Corp., top drives, casing drilling, and more. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips Alaska, Chevron, Marathon Oil, XTO, Brooks Range Petroleum, Forest Oil Co., and more. Services: Provides clients with individuals to fill specific needs, or with integrated teams to manage exploration and development projects. Skills: project management, geophysics, geology, petrophysics, engineering, and more. Notable Clients: Areas of Expertise: North Slope, Cook Inlet, Interior Basins, Bristol Bay, Gulf of Alaska.

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

David Pierce, President

1979

Services: Civil, Structural, marine, geotechnical, coastal, and value engineering, sanitary/wastewater, surveying inspection, quality assurance cost administration, permitting, right-of-way acquisition, site remediation/pollution control, demolition consultation and in-house research and development. Notable Clients: BP, ConocoPhillips, ExxonMobil and Eni Petroleum.

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

David Matthews, VP Alaska Area Mgr. 1974

225

Services: Construction and maintenance of pipelines, process facilities, power facilities, communications and civil works. E.P.C. and labor relations services. Notable Clients: ConocoPhillips, BP Exploration (Alaska) Inc., Alyeska Pipeline Service Co., Eni Petroleum, Enstar and Denali.

PSC 1813 E. First Ave., Ste. 101 Anchorage, AK 99501 Phone: 907-272-9007 Fax: 907-272-6805

Greg Harris, Location Mgr.

1979

Services: Waste-transportation treatment and disposal, waste-reduction technologies, refuse, recovery and recycling solutions, chemical lab packing, norm decontamination services, on-site industrial cleaning, and more. Notable Clients: Alyeska Pipeline Services, BP Exploration (Alaska) Inc., ConocoPhillips, Chevron, U.S. Department of Transportation, FAA,and more.

Puget Sound Pipe & Supply Co. 2120 Spar Ave. Anchorage, AK 99501 Phone: 907-277-7473 Fax: 907-277-9656

Jerry Hendriks, VP Alaska Ops

1984

Services: Alaska’s largest supplier of pipe, valves and fittings to the Alaska oilfields, and a second location at 42436 Kenai Spur Highway, Kenai. Notable Clients: Contract supplier to ConocoPhillips Alaska, BP Exploration (Alaska) Inc., Alyeska Pipeline Service Co., Flint Hills Resources and Tesoro Alaska Petroleum.

1999

Services: Geological and geophysical consulting for petroleum exploration.

R3 Exploration Corp. 2248 S. Xenophon St. Lakewood, CO 80228 Phone: 303-989-8071 Fax: 303-989-8071

www.pndengineers.com

dmatthews@pricegregory.com www.pricegregory.com

sdaugherty@pscnow.com www.pscnow.com

jerryhendriks@aol.com www.pugetpipe.com R. Randy Ray, Pres.

www.akbizmag.com • Alaska Business Monthly • May 2010

111

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

AK Empls.

Business Description

1937

Services: Alaskan-owned company, common carrier for deep-sea domestic transportation of freight, with scheduled barge service from Seattle to Alaska.

Schlumberger 2525 Gambell St., Ste. 400 Anchorage, AK 99503 Phone: 907-273-1700 Fax: 907-561-8317

Chris Barton, Alaska GeoMarket Mgr. 1956

600

Services: Provides virtually every type of service to the upstream E&P industry. Consists of geomarkets and service segments dedicated to improving oil and gas reservoir performance.

Shaw Alaska Inc. 2000 W. Int’l Airport Rd., Ste. C-1 Anchorage, AK 99502 Phone: 907-243-6300 Fax: 907-243-6301

Steve Crupi, Enviro. Scientist

2002

Services: A vertically integrated provider of technology, engineering, consulting, procurement, pipe fabrication, construction and maintenance services for government and private-sector clients in the energy, chemicals, environmental and infrastructure markets. Local expertise: Permitting, NEPA, and more. Notable Clients: Department of Defense, mining industry, oil and gas, and more.

SLR International Corp. 4601 Business Park Blvd., Ste. 42 Anchorage, AK 99503 Phone: 907-222-1112 Fax: 907-222-1113

Andrew Dimitriou, Alaska Mgr.

2001

Services: Site investigation, site restoration, permitting, compliance, engineering services, toxicology and risk assessment, spill prevention planning. Notable Clients: Alyeska Pipeline Service Co., BP Exploration (Alaska) Inc., ConocoPhillips (Alaska), Brooks Range Petroleum, Shell E&P, Pebble Limited Partnership, Donlin Creek Partnership, Municipality of Anchorage, and more.

Span Alaska Transportation PO Box 878 Auburn, WA 98071 Phone: 253-796-6330 Fax: 253-395-7986

Mike Landry, Pres.

1978

Services: Less than truckload/truckload from any point in the Lower 48 to any point in Alaska. Ship and barge service available.

Steigers Corp. 791 South Park Dr., Ste. 800 Littleton, CO 80120-5719 Phone: 907-264-6715 Fax: 800-935-6569

William D. Steigers, Chairman/CEO 2004

Superior Machine & Welding Inc. 1745 Ship Ave. Anchorage, AK 99501 Phone: 907-278-3944 Fax: 907-277-4999

Jantina Lunsford, Pres.

Swift Oil & Gas 3111 Denali St., Ste. 102 Anchorage, AK 99503 Phone: 907-222-4100 Fax: 907-222-4101

Leslie Lockhart, Alaska Recruit. Dir.

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

Mike Tolbert, Pres.

TransCanada Corp. 3201 C St., Ste. 505 Anchorage, AK 99503 Phone: 907-433-4001

Tony Palmer, VP Alaska Dev.

Tri-Jet Manufacturing Services 1960 S. Eklutna St. Palmer, AK 99516 Phone: 907-745-6900 Fax: 907-746-8015

Delbert Henry, Gen. Mgr.

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

Jim Udelhoven, CEO

UMIAQ 3201 C St., Ste. 506 Anchorage, AK 99503 Phone: 907-677-8220 Fax: 907-677-8286

Edith Vorderstrasse, Gen. Mgr.

Unique Machine LLC 8875 King St. Anchorage, AK 99515 Phone: 907-563-3012 Fax: 907-562-1376

Pat Hanley, Gen. Mgr.

Washington Crane & Hoist 1200 E. 76th Ave., Unit 1202 Anchorage, AK 99518 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

Waste Management Inc. 13225 NE 126th Pl. Kirkland, WA 98034 Phone: 425-825-2004 Fax: 425-814-7868

Mike Holzschuh, Sr. Project Mgr.

George Baggen, Pres./CEO

Samson Tug & Barge 6361 First Ave. S. Seattle, WA 98108 Phone: 907-747-8559 Fax: 907-747-5370

112

jerrymorgan@samsontug.com www.samsontug.com

www.schlumberger.com

suzanne.hall@shawgrp.com www.shawgrp.com

admin@slrcorp.com www.slrcorp.com

kathyL@spanalaska.com www.spanalaska.com Services: Full-service environmental consulting firm providing a wide range of project management, permitting and environmental compliance services for industrial projects. Specializes in managing complex environmental programs. Permitting and compliance ambient air modeling, due diligence, and more. Notable Clients: Alaska Industrial Development and Export Authority, and more.

wdsteigers@steigers.com www.steigers.com 1950

Services: Machine and welding services.

209

Services: Recruitment, contracts, HR, payroll, logistics, offered to any discipline specific to the oil and gas industry.

1979

Services: Complete remote logistic Services: camps, catering, expediting, gear consolidation and vehicle rentals. Full-supply of Baroid and Boart Longyear products. Notable Clients: Anadarko, AngloGold, ConocoPhillips, Encana and CH2M HILL.

Services: The Alaska Pipeline Project proposed by TransCanada would connect natural gas from the North Slope of Alaska to major markets in North America.

2004

Services: Design, fabrication, machining, water-jet cutting, bending, cutting and powder-coating services. Notable Clients: Airglas, Alaska Native Technologies, Alaska Roteg, ConocoPhillips, Dowland-Bach, Alaska Railroad, Federal Aviation Administration, Envision, General Mechanical and North Slope Telecom.

1970

525

Services: Functional checkout, startup and inspection services.

2006

Services: Regulatory planning, stakeholder relations, response planning and operations, geospatial analysis, development engineering, civil construction, logistics and full-service camps.

1975

1980

smwjal@acsalaska.net www.superiormachine.net

info@swift-alaska.com www.swiftoilandgas.com

taiga@taigaventures.com www.taigaventures.com

info@thealaskapipelineproject.com www.transcanada.com

dhenry@trijetprecision.com www.trijetprecision.com

www.udelhoven.com

umiaqinfo@uicumiaq.com www.ukpik.com

pat.hanley@umalaska.com www.umalaska.com

Services: Design, development, manufacture and distribution of oilfield construction, mining, fishing and government parts to industry-quality standards. Notable Clients: BPXA, ConocoPhillips, Marathon, Chevron, Pioneer Natural Resource, Eni Petroleum, Baker Hughes, Halliburton Weatherford, Schlumberger, FMC, Cameron and Tubular Solutions of Alaska. Services: Service and sales of overhead cranes and hoists. Notable Clients: Alyeska Pipeline, ConocoPhillips, BP and Fort Knox Gold Mine.

jevans@washingtoncrane.com www.washingtoncrane.com

mholzschuh@wm.com www.wm.com

1969

Services: Transportation and disposal of hazardous and non-hazardous waste. Bulk marine, rail and over-the-road transportation, turnkey remedial services, project management with complete logistical oversight, complete U.S. and Canadian manifesting. Notable Clients: Public, private, government and numerous oil companies.

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SERVICES & SUPPORT COMPANY

Top Executive

Estab.

AK Empls.

Business Description

Weona Corp. 10501 Olive Ln. Anchorage, AK 99515-2622 Phone: 907-344-1921 Fax: 907-344-8244

Edward G. Wrede Sr.

1981

Services: Machining, welding and fabrication. Notable Clients: Halliburton, Schlumberger, Peak Oilfield, M-I Drilling and Baker Hughes.

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

Wayne Walker, Service Center Mgr. 2009

Services: National Board “R” Stamp, DOT inspections and certifications, pumping systems, rebarrels, UT and HM180 testing, bottom loading/vapor recovery conversions, trailer running gear and maintenance, Sanitary Three “A” standards. Notable Clients: CH2M Hill, ConocoPhillips, ASRC, BP, Alaska Frontier Constructors, NANA Oil, Weaver Brothers, Colville, Ice Services, and more.

weonacorp@gci.net

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

SUPPLIERS COMPANY

Top Executive

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

Paul H. Sander, Mgr.

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

Allan Stone, Area Mgr.

Alaska Cover-All LLC 6740 Jollipan Ct. Anchorage, AK 99507 Phone: 907-346-1319 Fax: 907-346-4400

Paul Nelson, Mgr.

Estab. 1971

AK Empls. 15

Services: Occupational health and environmental safety solutions/products, electrical and communication product solutions, traffic-safety product solutions, corrosion-protection product solutions, welding and grinding product solutions, fire protection and suppression, and more.

Services: Alaska state dealers for Cover-All building systems. Steel-framed LDPE fabric-covered, fully engineered, portable buildings. Widths from 18 feet to 300 feet at any length. Notable Clients: Seward Ship’s Drydock, BP GTL plant, Alpine Field-Phillips, CH2M Hill, Deadhorse hangar, ExxonMobil Sakhalin, Graybar, Pioneer Natural Resources, STG Inc. and Udelhoven.

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

www.airgas.com

paul@alaskacoverall.com

1998

Business Description

www.akbizmag.com • Alaska Business Monthly • May 2010

113

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SUPPLIES & EQUIPMENT COMPANY

Top Executive Janeece Higgins, Gen. Mgr.

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

Estab.

AK Empls.

1981

1944

237

info@alaskarubber.com www.alaskarubber.com

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

Diana Pfeiffer, Pres.

Business Description Services: Alaska’s largest stocking distributor of industrial and hydraulic hose and fittings. Also stocks belting, pumps, v-belts, kamloks and stainless steel assemblies. Stocks transportation chain and nylon sling for lifting and rigging, hand tools and much more. Services: Along with the best selection of commercial vehicles in Alaska, Alaska Sales and Service has an experienced staff and a separate commercial service department. Alaskan-owned and -operated since 1944.

richardd@aksales.com www.aksales.com

Alaska Structures Inc. 9024 Vanguard Dr., Ste. 101 Anchorage, AK 99507-4659 Phone: 907-344-1565 Fax: 425-889-1206

Dennis Taylor, Sales

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

Ron Tharp, Pres.

Arctic Controls Inc. 1120 E. Fifth Ave. Anchorage, AK 99501-2754 Phone: 907-277-7555 Fax: 907-277-9295

Jerry A. Stewart, CEO

Arctic Foundations Inc. 5621 Arctic Blvd. Anchorage, AK 99518-1667 Phone: 907-562-2741 Fax: 907-562-0153

Erwin L. Long, Pres.

ATCO Structures & Logistics Ltd. 425 G St., Ste. 707 Anchorage, AK 99501 Phone: 907-677-6983 Fax: 907-677-6984

Harry Wilmot, Pres.

Services: Servicing the oil and gas industry for more than 34 years. Engineered buildings are ideal for pump stations, pipeline survey facilities, warehouses, grind and inject facilities, above-ground pipeline enclosures, below-ground pipeline enclosures, vehicle-maintenance buildings, pigging enclosures, and more. Notable Clients: Contact Alaska Structures Inc. for a listing of past clients and projects.

1975

commercial@alaskastructures.com www.alaskastructures.com 10

1985

1972

Services: Ground-freezing systems for permafrost stabilization and containment applications. Thermopiles, thermoprobes and helixpiles. Notable Clients: Oil companies, Native corporations, U.S. PHS, school districts, energy authorities and utility companies.

Services: An extensive line of work force housing and space-rental products, including camps, construction offices, schools, offices, custom products and more. Manufactured to Alaska building codes in ISO-registered facilities. Transportation, installation, parts, service, catering and facilities management.

avf@alaska.net www.swagelok.com

sstewart@arcticcontrols.com www.arcticcontrols.com

info@arcticfoundations.com www.arcticfoundations.com

atco@atcosl.com www.atcosl.com

Services: Valves, fittings, tubing, gauges, hoses, tools, etc. Distributor for Swagelok. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, Alyeska, CH2M HILL and Dowland-Bach.

1965

Services: Manufacturer representatives for industrial controls, and instrumentation for oil and gas, mining and municipalities. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, CH2M HILL, NANA/Colt Engineering, ASRC Energy and Pioneer Natural Resources, Pogo Mining, Red Dog Mines, and Anchorage and Fairbanks municipalities.

EHS ALASKA

INCORPORATED

ENGINEERING, HEALTH & SAFETY CONSULTANTS

Hazardous Material Abatement Design Environmental Consulting Industrial Hygiene Services

907.694.1383 www.EHS-Alaska.com

114

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SUPPLIES & EQUIPMENT COMPANY

Top Executive

Aurora Gas LLC 1400 W. Benson Blvd., Ste. 410 Anchorage, AK 99503 Phone: 907-277-1003 Fax: 907-277-1006

G. Scott Pfoff, Pres.

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

Chris Beaver, Chairman/CEO

Brice Inc. PO Box 70668 Fairbanks, AK 99707 Phone: 907-452-2512 Fax: 907-452-5018

Sam Robert Brice, Pres.

BW Technologies by Honeywell 3279 W. Pioneer Pkwy. Arlington, TX 76013 Phone: 817-274-2487 Fax: 817-274-8321

Carl Johnson, VP Americas

Caribou Construction Inc. 5100 Cordova St., Ste. 206 Anchorage, AK 99503-7243 Phone: 907-563-5444 Fax: 907-562-6448

Don Pearson, Gen. Mgr.

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

Margaret Harrison, Owner/VP

CH2M Hill 949 E. 36th Ave., Ste. 500 Anchorage, AK 99508 Phone: 907-62-1500 Fax: 907-762-1600

Charles O’ Donnell, Pres.

Estab.

AK Empls.

Business Description Notable Clients: Oil and Gas

1999

1972

200

1961

Services: Remote Arctic construction, road construction, gravel pads, rock crushing/material production, airstrip construction, gravel hauling and marine services. Environmental Division: Drilling mud stabilization, and more. Notable Clients: Alaska Department of Transportation and Public Facilities, USACE, Red Dog Mine, Chevron, AVEC, FEX, AECOM and BEM.

Services: Industry leader in innovative detection instrumentation for protection from an extensive range of toxic gases, combustibles and oxygen hazards. Showcasing a full-line of portable, fixed and stand-alone equipment. BW utilizes advanced microcontrollers and cutting-edge sensing technology to design and produce some of the smallest, and more.

1987

2004

Services: Portable access roads and staging areas. Notable Clients: Enstar Natural Gas, Attigun Equipment Supply - Tesoro oil refinery, Brice Construction.

1964

3,000

gspfoff@aurorapower.com www.aurorapower.com

www.bakerhughes.com

albab@briceinc.com www.bricecompanies.com

info@gasmonitors.com www.gasmonitors.com

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

info@carolinamat.com www.carolinamat.com

eric.helzer@ch2m.com www.ch2m.com

Services: Energy and Chemical: engineering, procurement, construction, fabrication, operations, maintenance and oilfield services. Environmental: assessments, air, water, soil and remediation. Transportation: highway exchanges, docks and bridges, air and marine ports, mining and minerals and industrial systems. Notable Clients: All major and minor oil and gas producers.

www.akbizmag.com • Alaska Business Monthly • May 2010

115

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SUPPLIES & EQUIPMENT COMPANY

Top Executive

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

Mark Helmericks, Pres./CEO

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

Stephen G. Rude, Ops Mgr.

Delta Leasing LLC PO Box 240925 Anchorage, AK 99524 Phone: 907-771-1300 Fax: 907-771-1380

Matt Thorpe

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

Lynn C. Johnson, Pres.

Ferguson Enterprises Inc. 151 W. 95th Cir. Anchorage, AK 99515 Phone: 907-273-2100 Fax: 907-273-2111

Mike Karpiak, Gen. Mgr.

FMC Technologies Inc. 700 W. Int’l Airport Rd., Ste. A1 Anchorage, AK 99518 Phone: 907-563-3990 Fax: 907-563-5810

Alan McArthur, Area Mgr.

Flowline Alaska Inc. 1881 Livengood Ave. Fairbanks, AK 99701 Phone: 907-456-4911 Fax: 907-456-1194

Richard Schok, Pres.

Frawner Corp. 9024 Vanguard Dr., Ste. 204 Anchorage, AK 99507 Phone: 907-561-4044 Fax: 907-346-4797

Jay Frawner, Pres.

Global Offshore Divers 5400 Eielson St. Anchorage, AK 99518 Phone: 907-563-9060 Fax: 907-563-9061

Devan Grennan, Gen. Mgr.

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

Ken Therriault, Gen. Mgr.

Inlet Petroleum Co. 459 W. Bluff Dr. Anchorage, AK 99501 Phone: 907-274-3835 Fax: 907-272-8151

Rocky Brew, Pres.

Lynden Air Cargo 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-7248 Fax: 907-245-0213

Judy McKenzie, Pres.

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

Don Fell, Pres.

Motion Industries 5401 Fairbanks St., Ste. 2 Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536

Chris Ransom, Branch Mgr.

MRO Sales Inc. 5631 Silverado Way, Ste. G Anchorage, AK 99518 Phone: 907-248-8808 Fax: 907-248-8878

Kevin Durling, Pres.

NC Power Systems 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7563 Fax: 907-786-7567

John J. Harnish, Chair/CEO

116

Estab. 1981

AK Empls. 120

info@colvilleinc.com www.colvilleinc.com

Business Description Services: Fuel services, solid waste and recycling services, industrial supply. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, CH2M Hill, Alaska Airlines, North Slope Borough, Alyeska Pipeline Service Co. Services: Turbo -iesel engines, power generation, sales, parts and service. Notable Clients: Fairbanks Gold, BP Exploration, Alaska Boat Co., K & L Distributors, AVEC, Weaver Brothers, People Mover, Lynden Transport, Sourdough Express, Peak Oilfield, Crowley, CH2M Hill, Alaska DOT, Kenworth, BJ Watson and United Freight.

1969 27

www.cumminsnorthwest.com

Services: Deadline-driven and results-oriented leasing company providing leasing solutions for modular living facilities, equipment and vehicles. Specializing in remote camps for the oil and gas industry. Alaskan-owned and -operated. Notable Clients: Alyeska Pipeline Service Co., BP, ConocoPhillips, Encana Oil and Gas (USA) Inc., Eni Petroleum, ExxonMobil and Pioneer Natural Resources.

2002

1975

Services: Control systems design, fabrication and engineering. Distribution of stainless steel and fabrication. UL, 508, 698, 50 and 1773. Chemical-injections system design, engineering and fabrication. Water and waste water PLC-based control systems. Chemical-injection skid and modules, and more. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips, and more.

1981

163

Services: Pipe, valves and fittings, low-temperature and high-yield plumbing, HVAC supplies, commercial and industrial plastic (HDPE), geosynthetics, fire protection and water-works products, and more. Notable Clients: Alaska Energy Authority, ASCG Inc., BP Exploration (Alaska) Inc., Cominco Teck Exploration, ConocoPhillips, Tesoro, and more.

1965

Services: Supplier of wellheads and Christmas trees, with a repair and service organization to support North Slope and Cook Inlet locations.

1983

Services: Insulated pipe, corrosion coatings, pipe fabrication and Arctic pipe.

2002

Services: General construction, building trenchless technologies construction, HVAC and horizontal directional drilling. Notable Clients: Department of Defense.

1998

1956

Services: Commercial diving contractor, oilfield-diving contractor, underwater welding, underwater NDT, underwater pipeline installation and repair, international marine salvage, civil and private marine construction, ship husbandry, and more. Notable Clients: Chevron, Alyeska Pipeline Service Co., XTO Energy, State of Alaska DOT, Marathon Oil, Crowley Maritime, Swalling Construction, and more. Services: Light-to-heavy metal fabrication, processing, 10-foot shear, 10-foot and 14-foot brake, plate rolls, shape rolls, profile cutting, more than 800-ton stock on hand, metal sales and equipment rentals. Pipe bending machine, and more. Notable Clients: AFC, Cruz Construction, Great Northwest Inc., Ghemm Co., Alaska Petroleum, Flint Hills Resources, TCI, Osborne Construction, and more.

1986

Services: Alaska’s largest lubricant supplier. Product selection base is commercial and industrial lubricants, featuring the Chevron and ConocoPhillips (76 lubricants), Shell, Pennzoil-Quakerstate, BP/Castrol and Aeroshell brands.

1996

161

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

1973

Services: Supports marine, petroleum, construction and State and federal agencies. Operates six-passenger Bell-407, Bell Long Ranger and four-passenger Bell Jet Ranger helicopters. Also operates a 86-foot research vessel with Heli-Pad.

2007

1990

Services: A leading industrial maintenance, repair and operation (MRO) replacement parts distributor of bearings, power transmission, electrical and industrial automation, hydraulic and industrial hose, hydraulic and pneumatic components, process pumps and equipment, industrial supplies and material handling, and more. Services: Belzona repair products, Hydralight/Sweeney Bolting, Craftsman industrial tools distributor, Cortec corrosion inhibitors, Armstrong tools, Mission Fluid King, Kenco, Reznor, Mac Tools, Autoclave, DL Ricci Corp., and more. Notable Clients: Alaska DOT, BP Exploration (Alaska) Inc., ConocoPhillips Alaska, Marathon, Municipality of Anchorage, Doyon Drilling, and more.

1926

180

info@deltaleasing.net www.deltaleasing.net

lynn@dowlandbach.com www.dowlandbach.com

michael.karpiak@ferguson.com www.ferguson.com

alan.mcarthur@fmcti.com www.fmcti.com

rns@flowline-alaska.com www.flowline-alaska.com

frawner@frawnercorp.com www.frawnercorp.com

info@gdiving.com www.gdiving.com

hectors@acsalaska.net www.hectorswelding.com

info@inletpetroleum.com www.inletpetroleum.com

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

info@maritomehelicopters.com www.maritimehelicopters.com

www.motionindustries.com

sales1@mrosalesinc.com www.mrosalesinc.com

sfield@ncmachinery.com www.ncpowersystems.com

www.akbizmag.com • Alaska Business Monthly • May 2010

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SUPPLIES & EQUIPMENT COMPANY

Estab.

AK Empls.

Ron Rowbotham, Pres.

1986

100

Jeff Bentz, Pres.

1950

Top Executive

Nordic-Calista Services 4700 Business Park Blvd., Ste. 19 Anchorage, AK 99503 Phone: 907-561-7458 Fax: 907-563-8347 North Star Terminal & Stevedore Co. LLC PO Box 102019 Anchorage, AK 99510 Phone: 907-263-0120 Fax: 907-272-8927

Business Description Services: Drilling, workover and completion services. Notable Clients: ConocoPhillips, BP Exploration (Alaska) Inc., Kerr McGee and Armstrong Inc. Services: Full-service stevedoring services at ports in Anchorage, Valdez, Homer, Seward, Dutch Harbor since 1950. Will operate at other ports as industry demands require. Provide operated crane services to 300 tons, and more. Notable Clients: AIC, ASRC, Boeing, BP, Builders Choice, ConocoPhillips, Crowley, Denali, Eni Petroleum, ground-based missile defense system, and more.

www.northstarak.com 1995

Services: Distributor of Eaton Aeroquip hydraulic products, industrial, hydraulic hose, fittings, accessories, gasket material, sheet rubber, MRO supplies, and hydraulic components sales, service and repair. Kenai and Anchorage locations. Notable Clients: McJunkin Redman, ConocoPhillips, Tesoro, Chevron, BJ Services, Schlumberger Technology, CUDD Pressure Control, and more.

1959

200

Services: Fuel, lubricants, batteries, solvents, antifreeze, sorbents, filter supplier, convenience stores and fuel barging.

1983

Services: Weatherford Cementation products, casing centralizers, float equipment, Tam International, inflatable packers, port collars, Ray Oil Tools, specialty centralizers, Tesco Corp., top drives, casing drilling, and more. Notable Clients: BP Exploration (Alaska) Inc., ConocoPhillips Alaska, Chevron, Marathon Oil, XTO, Brooks Range Petroleum, Forest Oil Co., and more.

1985

Services: Operates out of distribution facilities in Anchorage, Fairbanks and Kenai; specializes in commercial grade structural, geotechnical, environmental and corrosion prevention products. Liner fabrication facilities in Anchorage with full-service capabilities. Notable Clients: BP, ConocoPhillips, Shell, Exxon, Chevron and Peak.

David Matthews, VP Alaska Area Mgr. 1974

225

Services: Construction and maintenance of pipelines, process facilities, power facilities, communications and civil works. EPC and labor relations services. Notable Clients: ConocoPhillips, BP Exploration (Alaska) Inc., Alyeska Pipeline Service Co., Eni Petroleum, Enstar and Denali.

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

Jackie Brunton, Pres.

Petro Marine Services PO Box 389 Seward, AK 99664 Phone: 907-562-5000 Fax: 907-273-8237

Carol Ann Lindsey, CEO

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

Kevin Durling, Pres.

Polar Supply Co. (A Division of SBS) 300 E. 54th Ave. Anchorage, AK 99518-1230 Phone: 907-563-5000 Fax: 907-561-1850

Ed Waite, Pres.

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

jb2inc@alaska.net

waynek@harborent.com www.petromarineservices.com

sales@pesiak.com www.pesiak.com

dshooner@polarsupply.com www.polarsupply.com

dmatthews@pricegregory.com www.pricegregory.com

www.akbizmag.com • Alaska Business Monthly • May 2010

117

Alaska Business Monthly’s 2010 OIL & GAS DIRECTORY SUPPLIES & EQUIPMENT COMPANY Puget Sound Pipe & Supply Co. 2120 Spar Ave. Anchorage, AK 99501 Phone: 907-277-7473 Fax: 907-277-9656

Top Executive Jerry Hendriks, VP Alaska Ops

Tom Condon, Op. Mgr.

Tri-Jet Manufacturing Services 1960 S. Eklutna St. Palmer, AK 99516 Phone: 907-745-6900 Fax: 907-746-8015

Delbert Henry, Gen. Mgr.

Services: Alaska’s largest supplier of pipe, valves and fittings to the Alaska oilfields. A second location is at 42436 Kenai Spur Highway, Kenai. Notable Clients: Contract supplier to ConocoPhillips Alaska, BP Exploration (Alaska) Inc., Alyeska Pipeline Service Co., Flint Hills Resources and Tesoro Alaska Petroleum.

1992

Services: Smart Ash incinerators, water scrubbers, Medi-Burn medical-waste incinerators, Drug Terminator drug burner and Oil Away bulk oil burner. Notable Clients: Alaska Department of Environmental Conservation, U.S. Air Force, Alaska Energy Authority, Alaska Village Electric Cooperative, Alyeska Pipeline Service Co., UIC Construction, and more.

2004

2003

Services: Portable gas-detection specialists, calibration services, RAE-certified warranty service (repair) center, in-stock parts and accessories, supplied air, SCBA’s, sound level meters, PPE and more.

1975

Services: Design, development, manufacture and distribution of oilfield construction, mining, fishing and government parts to industry-quality standards. Notable Clients: BPXA, ConocoPhillips, Marathon, Chevron, Pioneer Natural Resources, Eni Petroleum, Baker Hughes, Halliburton Weatherford, Schlumberger, FMC, Cameron and Tubular Solutions of Alaska.

1980

Services: Service and sales of overhead cranes and hoists. Notable Clients: Alyeska Pipeline, ConocoPhillips, British Petroleum and Fort Knox Gold Mine.

1945

Services: Alaska state dealer for Case construction equipment, Snow Dragon snow melters, Thawzall ground heaters, Trail King equipment trailers, Oshkosh snow blowers, M-B runway brooms, ASTEC trenching equipment, and more. Notable Clients: BP, ConocoPhillips, Alyeska Pipeline, AFC, AIC, Marsh Creek, CH2M Hill.

dhenry@trijetprecision.com www.trijetprecision.com Deborah Tompkins, Owner info@tttenviro.com www.tttenviro.com Pat Hanley, Gen. Mgr.

Washington Crane & Hoist 1200 E. 76th Ave., Unit 1202 Anchorage, AK 99518 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

Yukon Equipment Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 907-277-1541 Fax: 907-258-0169

Morry Hollowell, Pres./CEO

pat.hanley@umalaska.com www.umalaska.com

jevans@washingtoncrane.com www.washingtoncrane.com

info@yukoneq.com www.yukoneq.com

Business Description

1984

spillshield@ak.net www.spillshield.com

Unique Machine LLC 8875 King St. Anchorage, AK 99515 Phone: 907-563-3012 Fax: 907-562-1376

118

AK Empls.

jerryhendriks@aol.com www.pugetpipe.com

Spill Shield Inc. 5610 Silverado Way, Ste. A10 Anchorage, AK 99518 Phone: 907-561-6033 Fax: 907-561-4504

TTT Environmental Instruments & Supplies 4201 B St. Anchorage, AK 99503 Phone: 907-770-9041 Fax: 907-770-9046

Estab.

www.akbizmag.com • Alaska Business Monthly • May 2010

L A S K A

BY JOEL AINSWORTH

E N D S

Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

Anchorage Construction Decline T

he Anchorage Municipality requires permitting for most residential and commercial building within the city. Each month, the city aggregates and releases the location of building and valuation of commercial and residential permits occurred during that period. The valuation of a permit is the builder’s expected value at the time of application. The data collected in these monthly reports can provide a useful tool for monitoring building construction activity around Anchorage. The graph has been adjusted for inflation to measure the real value of building construction in Anchorage since 2000. As illustrated, spending on residential projects began a rapid decrease in 2003. Conversely, commercial spending peaked in 2006, prior to beginning a softer, but downward trend. Yet, as illustrated below, the disparity between residential and commercial building

projects grew considerably during the last five years. As might be expected, 2007 and 2008 were especially challenging years for building construction in Anchorage. In 2008, residential projects decreased by 26.3 percent and commercial projects decreased by 21.3 percent. Although projects continued to get smaller in 2009, the marginal change was significantly less, with residential and commercial projects only diminishing by 5.2 percent ❑ and 9.1 percent respectively.

Source: Municipality of Anchorage; Permit Activity Reports

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF PACIFIC PILE & MARINE

www.akbizmag.com • Alaska Business Monthly • May 2010

119

L A S K A

Indicator

GENERAL Personal Income -- Alaska Personal Income -- United States Consumer Prices -- Anchorage Consumer Prices -- United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total EMPLOYMENT Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Sectoral Distribution -- Alaska Total Nonfarm Wage & Salary Goods-Producing Service-Providing Natural Resources & Mining Logging Mining Oil & Gas Extraction Construction Manufacturing Wood Products Manufacturing Seafood Processing Trade/Transportation/Utilities Wholesale Trade Retail Trade Food & Beverage Stores General Merchandise Stores Trans/Warehouse/Utilities Air Transportation Truck Transportation Information Telecommunications Financial Activities Professional & Business Svcs Educational & Health Services Health Care Leisure & Hospitality Accommodation Food Svcs & Drinking Places Other Services Government Federal Government State Government State Education Local Government Local Education Tribal Government Labor Force Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast

120

R E N D S Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Period

Latest Report Period

US $ US $ 1982-1984 = 100 1982-1984 = 100

3rd Q09 3rd Q09 2nd H09 2nd H09

29,943 12,077,636 193.456 215.935

29,844 12,131,245 191.335 216.177

0.33% -0.44% 1.11% -0.11%

Number Filed Number Filed Number Filed

January January January

71 54 13

86 65 16

50 35 8

42.00% 54.29% 62.50%

Thousands Thousands Thousands Thousands Thousands

January January January January January

326.19 185.27 41.35 33.91 32.99

322.76 184.54 41.01 34.49 31.65

323.88 184.08 40.57 34.15 32.00

-42.80% 0.65% 1.93% -0.72% 3.10%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January

306.8 38.7 268.1 14.3 0.1 14.2 12.2 12.3 12.1 0.3 8.1 60.6 6.0 34.9 6.3 9.9 19.7 6.1 2.9 6.4 4.2 14.1 23.6 40.1 29.0 27.5 6.1 17.6 11.5 84.4 16.3 25.0 7.0 43.1 24.6 3.5

306.5 35.7 270.8 15.1 0.1 15.1 12.9 14.0 6.6 0.3 3.3 61.9 6.2 35.5 6.2 9.8 20.2 6.1 3.1 6.8 4.2 14.2 24.5 39.6 28.7 26.6 6.0 16.8 11.4 85.8 16.4 26.2 8.1 43.2 24.7 3.3

304.8 39.9 264.9 15.6 0.2 15.4 13.1 13.6 10.7 0.5 6.9 61.3 6.2 34.9 6.1 9.8 20.2 6 3.1 7 4.7 14.3 24.3 37.7 27.3 27 6.2 17.1 11.1 82.2 16.1 24.7 7 41.4 23.7 3.5

0.66% -3.01% 1.21% -8.33% -50.00% -7.79% -6.87% -9.56% 13.08% -40.00% 17.39% -1.14% -3.23% 0.00% 3.28% 1.02% -2.48% 1.67% -6.45% -8.57% -10.64% -1.40% -2.88% 6.37% 6.23% 1.85% -1.61% 2.92% 3.60% 2.68% 1.24% 1.21% 0.00% 4.11% 3.80% 0.00%

Thousands Thousands Thousands Thousands Thousands

January January January January January

360.66 202.15 45.47 37.90 37.53

354.60 199.93 44.73 38.08 36.21

356.16 199.36 44.48 38.21 36.22

1.26% 1.40% 2.23% -0.80% 3.59%

Units

www.akbizmag.com • Alaska Business Monthly • May 2010