Alaska Oil & Gas Reporter - July 2014 by Morris Media Network

OIL TAX REFORM

Is it a GIVEAWAY or a GATEWAY? A special report on Ballot Measure One See page A12

Photo/AdAm Elliott/ For thE JournAl illustrAtion /nAdyA GilmorE /AJoC

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Page A2 • July 13, 2014 • Alaska Journal of Commerce

July 13, 2014 • Alaska Journal of Commerce

40 Years... Thanks to our customers and employees, we’ve been privileged to serve Alaska’s oil industry for over 40 years. Our goal is to build a company that provides a service or builds a project to the complete satisfaction of its customers. We shall strive to be number one in reputation with our customers and our employees. We must perform safely. We must provide quality performance. We must make a profit. We shall share our successes and profits with our employees. Work can be taken away from us in many ways, but our reputation is ours to lose. Our reputation is the key that will open doors to new business in the future.

184 East 53rd Ave. Anchorage, AK 99518 (907) 344-1577

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• Page A3

Page A4 • July 13, 2014 • Alaska Journal of Commerce

Bulletin DOT prepping to remove Gov’t Hill buildings

Alaska Journal of Commerce

Telephone: 907-561-4772 Fax: 907-563-4744 Web site: www.alaskajournal.com Regional Vice President

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The Alaska Department of Transportation and Public Facilities announced July 3 it is accepting bids to demolish state-owned buildings in preparation for construction of the Knik Arm Crossing. DOT purchased the three properties along Erickson Street in Anchorage’s Government Hill neighborhood and relocated the tenants more than a year ago. The contract will allow the successful bidder to demolish or relocated the structure with the condition that certain existing vegetation is maintained and the lots are cleaned and reseeded after the buildings are removed. Removing the empty houses not only makes way for bridge construction, which the state hopes to start next year, it also increases neighborhood safety by eliminating vacant structures, according to the department. DOT officially took over the bridge July 1 from the Knik Arm Bridge and Toll Authority after a public funding plan passed by the Legislature this spring for the mega project included a transfer of construction responsibility to the department. — Elwood Brehmer Brehmer covers transportation and construction for the Journal. Contact him with tips and story ideas at elwood.brehmer@alaskajournal.com.

NMFS considers changes to fisheries financing program The National Marine Fisheries Service is considering how to expand the Fisheries Financing Program that funds vessel construction and refurbishment. The agency, or NMFS, has published an advanced notice of proposed rulemaking in the

Freedom ride

Photo/Rashah McChesney/Peninsula Clarion

Robin and Vinni Catalano ride a flag-bedecked Harley Street Glide motorcycle on July 4 during the annual Independence Day Parade in Kenai.

Federal Register seeking comments on possible changes to the program that would allow the fund to be used for vessels that would have an increased harvesting capacity. The financing program, or FFP, can finance up to 80 percent of the project cost for a variety of fisheries activities including fishing, processing, quota purchases and aquaculture facilities. Previously, FFP loans could not be made for construction or refurbishment if the work would increase a vessel’s harvesting capacity. NMFS is now considering allowing loans for that purpose,

however, as it could also improve the safety, efficiency, environmental impacts and fuel-efficiency of the vessels’ operations. The proposed change is also the partial result of an increase in loan authority for the program. It can lend $100 million for the 2014 fiscal year, more than the usual $69 million. The appropriations language also removed the prohibition on using the funds to improve harvesting capacity. According to the notice, NMFS is considering either allowing each fishery management council — such as the North Pacific Fishery Management Council, which

Proposed rule for flatfish flexibility published

Ken Hanni (907) 275-2155 Dustin Morris (907) 275-2153 Jada Nowling (907) 275-2154 Legal Notices

Michelle Ditmore

Proud Supporter of the Oil & Gas Industry

(907) 275-2178 For advertising or general information call: (907) 561-4772 or Fax: (907) 5634744. E-mail: editor @alaskajournal.com. Copying done for other than personal or internal reference use without the express permission of the Journal is prohibited. Address requests for specific permission to the editor, Andrew Jensen. Alaska Journal of Commerce (ISSN 0271-3276) is a statewide business newspaper of record published weekly (52 times a year) by Alaskan Publications, 301 Arctic Slope Avenue, Suite 350, Anchorage AK 99518. Alaskan Publications is owned by Morris Communications Corporation, P.O. Box 2123, Augusta, Georgia 30903-2123. (706) 7226060. Member Associated Press (AP), National Newspaper Association, The Network of City Business Journals and ACCN. Periodicals Mail Postage Paid at Anchorage, Alaska 99502-9986. Subscriptions are $45 per year in municipality, $52/year rest of Alaska, $70/year out of state and may be ordered by calling (907) 561-4772. POSTMASTER: Send address changes to Alaska Journal of Commerce, 301 Arctic Slope Avenue, Suite 350, Anchorage, AK 99518. USPS (413-310)

makes decisions for federal fisheries from three to 200 miles offshore from Alaska — to determine how the loans could be used in particular fisheries, or allowing vessel owners in any limited entry fishery to access the funding. Comments are being accepted through July 30. The request for comments is looking for ways to develop the regulations, and does not set forth specific regulations for review. — Molly Dischner Dischner covers fisheries for the Journal. Contact her with tips and story ideas at molly.dischner@ alaskajournal.com.

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The National Marine Fisheries Service has published the proposed rule that would allow Bering Sea fishers some flexibility as they target flatfish. The North Pacific Fishery Management Council created the new regulation, which would allow Amendment 80 cooperatives and Community Development Quota entities to exchange harvest quota for three flatfish species — flathead sole, rock sole and yellowfin sole. The catch limits for each of those species are generally far less than what could be allowed biologically, because of the overall 2 million-metric ton cap that applies to Bering Sea groundfish harvests. Industry asked for the change as a way to more fully utilize the full 2 million metric ton cap, rather than leaving fish in the water because fishing for one of those species was poor. If the change is implemented as planned, harvesters could swap flathead sole quota for rock sole quota, or another switch between those species, as long as they didn’t exceed the acceptable biological catch, or ABC, for the species. An annual report on use of the flexibility would also be required. Comments on the proposed rule are due July 30. See Bulletin, Page A7

July 13, 2014 • Alaska Journal of Commerce

• Page A5

Movers & Shakers Harry W. Need IV has been hired as the director of gift planning for the University of Alaska Foundation. Need joins UA with seven years of development experience, most recently as a development officer responsible for facilitating major gifts to the University of Alaska Anchorage’s College of Arts and Sciences. He Need graduated from the University of Colorado Boulder in 2001, completed Leadership Anchorage in 2008, and earned an MPA with dual emphases in policy analysis and public management from UAA in 2013. He earned a fundraising executive certification through CFRE International in 2013 and was recognized as a “Top Forty under 40” professional by the AK Journal of Commerce in 2014. Latosha Frye has bee promoted to chief financial officer for Northrim BanCorp. effective May 16. Frye takes over from Joe Schierhorn, who has served as CFO since 2001. He will devote his time to being the chief operating officer for Northrim Bank. Frye has been with Northrim Bank since 2006 when she was Frye hired as assistant vice president, lead accountant for financial reporting. She was promoted to assistant controller in 2008 and in 2009 was promoted to vice president, controller of financial reporting. Before joining Northrim Bank, Frye was with KPMG LLP where she was a senior audit associate. Frye holds a masters of accountancy and bachelor’s degree from the University of Montana. She is a graduate of the ABA Stonier Graduate School of Banking and has earned the Wharton Leadership Certificate from the Wharton School at the University of Pennsylvania. Frye is a certified public accountant with the State of Alaska. Northrim Bank hired of Allen Hippler as vice president, construction loan officer and promoted Barb Ervin to vice president, core applications group manager. Allen joins Northrim from Faulkner Walsh Constructors,

where he was the chief financial officer. He has more than 12 years of experience in the banking and financial industry after starting his career at First National Bank Alaska. He has a bachelor’s degree in economics from the University of Dallas. Ervin was within the Information Tech- Ervin nology Department. She has been with Northrim Bank for more than 12 years and has more than 30 years of experience in banking and investments. She was most recently the vp, branch administration Hippler manager at Northrim. She attended the Graduate School of Banking in Madison, Wis., graduating in 2012. She was the winner of the 2006 Northrim Bank President’s Award. MacNamara (Mac) Shoulders recently joined URS as a biologist with more than 30 years of experience specializing in managing interdisciplinary environmental programs, designing field studies and permitting for oil and gas, and other civil projects. He has broad experience in permitting projects in Alaska and an in-depth knowledge of state and federal regulations including: National Environmental Policy Act, ESA, Marine Mammals Protection Act, Migratory Bird Species Act, State of Alaska Fish and Game regulations, and State of Alaska Water Quality regulations. As a major component of these projects, Shoulders has conducted scoping, permitting and project management, and compliance management with Alaskan communities and regulatory agencies. He also has experience as a project manager for ensuring environmental compliance during large civil construction projects. Jolene John has been hired as the new U.S. Department of Agriculture-Rural Development Alaska West Area Manager effective July 14. The West Area covers the Lake and Peninsula Borough; Bristol Bay Borough; Dillingham census area; Bethel and WadeHampton census areas; Nome census area; and the Northwest Arctic Borough. John

Digging history

AP Photo/James Poulson/Daily Sitka Sentinel

In this June 18 photo, volunteer workers, from left, Brant Brantman, Bridger Williams, Xaver Clarke and Jesse Brantman hold up some of the iron balls they found mixed in the rocks they were removing from the Hames Center roof in Sitka. The balls likely came from the same place as the rocks — the Indian River area, the site of battles between Tlingit Natives and Russians in 1804. They may be Russian canister shot fired from ship’s cannons.

comes from the village of Toksook Bay/Nunakauyaq, on Nelson Island, a member of the Nunakauyarmiut Tribe and grew up as a Yup’ik speaker. She attended the University of Alaska Fairbanks earning a bachelor’s degree in rural development, with an emphasis in community organization and service. Jolene also completed a Kellogg Fellowship for Emerging Leaders in Public Health under the School of Business, University of North Carolina Chapel Hill. Gavin Graham has been named a Wells Fargo Anchorage small business specialist based at the Benson Boulevard location in Midtown. Graham joined Wells Fargo in October 2013 as a management trainee. He has three years of financial services experience in Alaska. Graham

Graham, a South Anchorage High School graduate, earned a bachelor’s degree in economics from DePauw University in Indiana. Upon college graduation, he served as an intern conducting research for Anchorage Economic Development Corp. Jacqueline Dailey of Juneau was recently elected president of the Rural Alaska Community Action Program Inc. board of directors. Dailey, representing the Alaska Native Brotherhood and Alaska Native Sisterhood, will serve her first term as RurAL CAP’s board president. She previously served as the secretary/treasurer on Dailey the RurAL CAP board. Steve Longley of Nome continues to serve as vice president and Margaret Roberts of Kodiak was elected secretary/treasurer.

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Page A6 • July 13, 2014 • Alaska Journal of Commerce

Editorial & Opinion

State is right to join suit over King Cove road Fairbanks Daily News-Miner

The long and perplexing dispute over the proposed onelane gravel road through a portion of the Izembek National Wildlife Refuge on the Alaska Peninsula has just become a heavyweight fight. Gov. Sean Parnell on June 30 announced the state has filed a motion in federal court asking to join a lawsuit against Interior Secretary Sally Jewell over her December refusal to approve a congressionally sanctioned land exchange that would allow construction of the road between King Cove and the all-weather airport at Cold Bay. The lawsuit was brought by the city of King Cove, the Aleutians East Borough and three Alaska Native entities in early June. Gov. Parnell’s decision, which follows through on the intent he announced in April, is the right course of action. The road — 11 miles of which would go through the refuge — has been sought by King Cove residents for two decades as a means to have safe access to the Cold Bay airport. Volatile weather regularly makes King Cove’s airport unusable, leaving people in need of advance medical care shut in or needing to be flown out by the Coast Guard when the

situation becomes an emergency. The Coast Guard has been summoned to King Cove five times this year to airlift people in need of medical aid. The governor’s action is proper not only because the health and safety of people are at risk but also because such disregard from Interior Department officials can potentially happen elsewhere in Alaska. Alaska is standing up for its rights. The state makes both points in its court filing requesting to intervene in the case on behalf of King Cove: “[T]he State has an interest in ensuring that its citizens and communities are provided reasonable access across the vast federal landholdings in the State. In this case, the health and safety purposes of such access over the Izembek Refuge are literally of life and death importance.” What’s puzzling about this whole situation is that the federal government would clearly benefit from the land exchange — and the secretary even acknowledged that fact in her December rejection of the idea. Under the swap, the federal government would receive 43,093 acres of state land and 13,300 acres of King Cove Corp. land, all to be added to the Izembek refuge. The refuge would give up 206 acres. Secretary Jewell, supported on the issue by several na-

The oil tax referendum: Competition matters By Roger Marks Guest commentary

At current prices and costs it appears that ACES and SB 21 would bring in about the same amount of revenue now. Where they differ is what happens at higher prices. ACES was enacted in 2007. The progressivity structure imposed very high taxes at high prices. It eliminated nearly all upside potential: the ability for producers to make somewhat proportionally more money when oil prices are high. For instance, if oil prices were to get to $140 per barrel again, the marginal tax rate under ACES would be about 90 percent. That means every time the price goes up $1, the government would get 90 cents of that dollar. Upside potential is important in shaping investment decisions, in large part because it offsets low price risk. When investors evaluate opportunities they incorporate future oil prices. There is much uncertainty about prices so they evaluate projects over a range of outcomes. Economic feasibility depends on upside potential being able to offset downside price risk. So what happens on the upside can have a big impact on results. Even if upside potential is of relatively low probability, so much money can be made when it does happen that it can make a project worth developing. But if upside potential is suppressed, like it was under ACES, it may not be worthwhile to develop the project. A fundamental principle of oil development is that oil does not produce itself. Be it old or new oil, it needs capital. The capital comes from the debt and equity of the corporations. These investors have lots of opportunities; their capital is fluid, but finite, and it goes to where it gets the best deal. Jurisdictions have to compete for it. Alaska competes with other jurisdictions with similar risk/reward profiles in regards to reserves, cost, risk, and operating conditions. These would include other North America jurisdictions, Arctic jurisdictions, other tax and royalty regimes, and places with similar production/reserves. The average government take (total taxes and royalties going to state and federal governments as a percentage of pre-tax profit) in these places is about 60 percent. Under ACES at a $140 per barrel oil price, the government take would be about 73 percent. That 13 percentage-point difference would be worth about $1.8 billion per year. In-

vestors could demonstrably make more money in nearly any other place than Alaska with similar development conditions. Why would they want to do business here? Even if it was profitable, it was more profitable elsewhere. In 2007, there was upwards of $60 billion in infrastructure from past investments on the North Slope that had nowhere to go. It was “captive” investment. This infrastructure was put in place to produce oil over an extended number of years, including the present and the future. So, after 2007, production from that past investment continued, paying higher taxes. The state made lots of money, and some of that money no doubt did good things, but it came at a price. Since 2007, oil prices have gone from a $60 per barrel world to a $120 one. Investment should have soared. Worldwide, between 2007 and 2012 upstream capital outlays for exploration, development, and production increased 60 percent adjusted for inflation. Here, instead, it increased only 16 percent. As a result, in 2013 the outlook for production under ACES was only 300,000 barrels per day in 10 years, and 200,000 in 15 years. Yet the additional oil is clearly there. Where the state constitution calls for resources to be used for the maximum benefit of its people, that must mean future generations, as well. The tax rates under SB 21 are more in line with the competition. If producers can earn here what they earn in other places, they should invest here like they invest in other places. Production will likely increase relative to ACES. While it is impossible to say exactly how much more, even at higher prices it would only take a modest amount of additional production over the ACES forecast for SB 21 to bring in more total petroleum revenue (including royalties, property taxes, and state corporate income taxes). In the early 1960s when the state was deciding how to develop its land, it could have started its own state-owned oil company. Rather, it chose to open up its resources to the world through the competitive bidding lease system. The experience, expertise, and capital of multinational corporations was brought here to explore and develop. The lessees made the monetary outlays and incurred the geological risk. Development proceeded from market forces. Fair share is what you can get in a competitive environment. Roger Marks is a petroleum economist based in Anchorage.

tional environmental organizations, chose instead to agree with personnel from the Fish and Wildlife Service, who said the road would be too disruptive to the area’s habitat. Residents of King Cove make what should be a convincing argument to the contrary — that absence of the road has brought death and injury to their community. U.S. Sen. Lisa Murkowski, one of several Alaska leaders trying to sway distant Washington officials about the need for the road, notes that 19 people have died in plane crashes coming to or departing from King Cove or because they couldn’t get to medical care in a timely manner. Residents have to travel to Anchorage, 600 miles away, for many medical procedures. Secretary Jewell has been showing a certain aloofness to the situation and to the state. She hasn’t responded to several requests, including from the Alaska Legislature, to reconsider her decision, and she hasn’t even responded to a letter sent to her by King Cove residents in April. Let’s hope the weight of a legal filing from the state of Alaska will get her attention and prompt her to reconsider her denial of this road, which is so essential for the health and safety of the small community of King Cove and which is becoming increasingly indicative of how the federal government views Alaska.

Who do you trust? By Vic Fischer Guest commentary

The discovery and production of oil on the North Slope has been of tremendous benefit to Alaska for many reasons. One major reason is the oil on the North Slope belongs to all Alaskans because the State of Alaska owns the land and, therefore, the oil and gas beneath it. It is OUR oil. This includes Prudhoe Bay, Kuparuk, and Alpine, and other oil fields. Oil producers pay money to the state because we are both the owner of the oil and we are a sovereign state of the union. Some basic terms: Owners: Like the fictional Ewing family on the TV show “Dallas” that leases oil production rights on their land, the real State of Alaska leases our lands for exploration and production of oil resources. Our state leases specify royalty rates and other contractual provisions owed to the landowner. Sovereign: As a sovereign state government, Alaska has the right to levy taxes on corporations conducting business within its boundaries. Once royalties and taxes are paid, they are state monies to be spent in accordance with the constitution and state law. They are not gifts from generous corporations. When determining tax rates on state owned oil resources, the state must balance a system that generates a fair return for the state, while encouraging industry investment in exploration and production because Alaska gets paid on barrels of oil actually produced. SB 21 repeal: The effort to Vote Yes to repeal Senate Bill 21 is based on a judgment that Alaska’s elected officials have done a bad job of ensuring that Alaskans receive a fair return for our oil. When the Legislature adopted SB 21 in April 2013, they lowered taxes for the major oil companies that have leased our lands on the North Slope. It is called a “Giveaway” because the companies do not have to do anything to receive the money. • No requirement for the companies to invest more money in Alaska. • No requirement to produce more oil in Alaska. • No requirement to hire more Alaskans. For this reason it is a bad deal for Alaskans. It should be repealed so we can replace it with a better law that links tax cuts with verifiable production. Alaska’s previous tax system — Alaska’s Clear and Equitable Share, or ACES — was adopted in 2007 after one-tenth

of the Alaska legislature was convicted of bribery over oil taxes. The system had a progressive tax structure, so the state would share in the volatility of oil prices. When oil prices fell, taxes were lowered. When oil prices rose, taxes increased. The system was supported by Republicans, Democrats and independents. High oil prices created significant income to the state, as well as high profits to the industry. While ACES was in place: • North Slope jobs hit all-time highs. • Oil field investment grew by 70 percent. • Oil company profits soared. For example, ConocoPhillips made $14 billion in profits, or $28 per barrel profit in Alaska, which is almost three times higher than in the Lower 48. The Scott Goldsmith comparison of SB 21 and ACES is based on a hypothetical case for what might occur in the future. An Alaska Department of Revenue analysis using real oil prices and production costs that actually occurred during the years ACES was in effect shows that if SB 21 had been the law, the state would have lost $8.5 billion dollars of revenue. ACES produced income to the state that allowed the legislature to fund education, public safety and to increase construction projects on roads statewide. Multi-national oil companies are not in Alaska to provide jobs for Alaskans, nor to support schools or build roads. They are not here for benevolent reasons. Their purpose and, indeed, their statutory requirement is to maximize profits for their shareholders. Under SB 21, they got a very good deal. Alaskans, however, got a lousy deal. The nominal tax rate of 35 percent drops into a 10 to 15 percent effective tax range as SB 21 takes full effect. The state share falls precipitously, while producers’ profits skyrocket. Truly a Giveaway! Just think for a moment — why are Exxon and the other oil giants spending MILLIONS to convince Alaskans to vote against the repeal? Do you really think they would do this if their taxes were the same under both laws? Don’t be fooled! SB 21 is in THEIR best interest, but it is not in OURS. Stand Up for Alaska — VOTE YES Aug. 19. Over 50,000 Alaska residents signed a petition to give you the opportunity to vote whether or not to repeal this law. Who do you trust? Vic Fischer is Director Emeritus of the Institute of Social and Economic Research of the University of Alaska. He was a delegate to the 1955 Alaska Constitutional Convention and is a former state senator.

July 13, 2014 • Alaska Journal of Commerce

• Page A7

Bay haul beats forecast; Alaska fish get clean bill of health By Laine Welch Fish Factor/For the Journal

With salmon fisheries going on every summer all across Alaska, you might wonder why so much attention is focused on Bristol Bay. The answer can be summed up in two words: sockeye salmon. Bristol Bay is home to the largest red salmon runs in the world and sockeye is Alaska’s most valuable salmon fishery by far. In most years, well over one-third of Alaska’s total earnings from salmon fishing stem from Bristol Bay. Whereas other fishing regions like Copper River, Cook Inlet, Kodiak, Southeast and the Alaska Peninsula might get sockeye catches ranging from 1 million to 5 million fish, Bristol Bay’s harvests can reach into the 20 million to 40 million range. “The Bay” also has the most salmon fisher- Welch men with more than 2,800 active permit holders. Fishermen were expecting to catch about 17 million reds at Bristol Bay this summer, but it could blow past that by the time you read this. Catches already were topping 2 million per day and by July 4, the harvest was at 14 million — with another surge of sockeyes on the way. Salmon trackers already were predicting that the run of sockeyes homing in to Bristol Bay could top 38 million, 45 percent over the preseason forecast. Alaska’s statewide sockeye catch this summer is pegged at nearly 34 million, a 14 percent increase over 2013. The total salmon

Bulletin:

catch this year is projected at 133 million fish, down 47 percent from last year’s record haul. (Summed up in two words: pink salmon.)

Independence Day thought Commercial fishermen are the world’s only remaining hunter/gatherers for a wild capture resource.

Alaska fish tests clean Ramped up testing this summer shows Alaska fish is free of all signs of radiation from the Fukushima nuclear meltdown after Japan’s horrific earthquake/tsunami three years ago. “The results of the testing of the Alaska fish that were just collected look very good. There is no detection of any radiation that would have originated from Fukushima. That was very good news,” state veterinarian Bob Gerlach announced last week. From the beginning, state and federal agencies have partnered to test and track Alaska seafood for radiation. Concerns over contaminants that showed up recently in salmon and tuna caught off the Pacific coast prompted them to do more Alaska-specific testing prior to salmon season. “The state has worked with the state Department of Health and DEC to develop a sampling plan to select certain species of fish from the Aleutian islands and Bristol bay, Gulf of Alaska and Southeast and we will be collecting additional samples through the summer from other species of fish to try and get background information. But at this point we haven’t been able to detect anything at all — all the samples have

Continued from Page A4

— Molly Dischner Dischner covers fisheries for the Journal. Contact her with tips and story ideas at molly.dischner@ alaskajournal.com.

Crowley offers ‘round-the-clock fuel at McGrath Airport Pilots flying out of McGrath can now refuel at their convenience. Crowley Maritime Corp., which supplies fuel to the remote Western Alaska airport, announced July 7 that it has installed the airport’s only aviation fuel card lock system. It allows pilots to pay for jet fuel or avgas with a credit card, in much the same way drivers “pay at the pump,” according to a Crowley release. The new payment system will also eliminate fees associated with after-hours fuel purchases, the company states. Previously, a pilot wishing to make an off-time fuel purchase would have to arrange to have a Crowley employee meet them at the airport. McGrath is one of the region’s busiest hub airports. “The 24-hour availability of our top-quality jet fuel and avgas was something that our customers had been asking about for a while now. Not only are pilots able to access Crowley fuel around the

clock with the card system now in place, they’re paying less for that convenience,” company vice president Sean Thomas said in a formal statement. The card lock pumps are located on the east tarmac of Runway 25. — Elwood Brehmer Brehmer covers transportation for the Journal. Contact him with tips and story ideas at elwood.brehmer@ alsakajournal.com.

Federal mining fees increase The Bureau of Land Management is reminding placer miners fees for claims on federal lands went up as of June 30. Annual mining claim maintenance fees increased from $140 to $155. Association placer claim fees are also $155 for each 20acre parcel. As of Sept. 1, new mining claims fees will be increased from $34 to $37. Miners who have already paid the $140 fee for the 2015 assessment year must pay the additional $15 or risk forfeiture of their claims, according to a BLM notice. Payments can be sent to the BLM offices in either Anchorage or Fairbanks. The new fees can be viewed at the Federal Register, Volume 79, Number 125.

come up as ‘non-detects,’” Gerlach told KDLG. Oceanographers have predicted that radiation from Fukushima was expected to hit Alaska waters this year. “Because fish come in at different time periods, we were collecting as early as possible when the salmon fishery started, and will continue to the end of the season,” he added.

Scallops status quo There’s been no stampede to Alaska’s scallop beds that is newly opened to all comers. The fishery has been managed under a limited entry system for years, but was changed to “open access” starting July 1. “To date we haven’t had anyone register or obtain an observer to fish in that fishery, so we anticipate the same four vessels that have his-

torically fished the last four to five years to be the only vessels that will fish during this scallop season,” said Mark Stichert, fishery manager at ADFG in Kodiak. Weathervane scallop beds dot Alaska’s waters from one end to the other, yielding a stable total harvest each year of around 400,000 pounds of shucked meats. “Historically, the two largest beds are Yakutat and here in Kodiak,” Stichert said. “Some fishing has occurred inside Prince William Sound and up in Cook Inlet, but those two areas are both closed this season due to low abundance. We have scallop fishing that occurs in the Alaska Peninsula, a small fishery in Dutch Harbor, and a fairly sizeable harvest in the Bering Sea.” Managers also are re-opening

an old scallop bed along the Alaska Peninsula that has been closed for five years to allow the stocks to regenerate. Fishermen’s prices for scallops can be at or above $10 a pound, making the fishery worth $4 million at the Alaska docks.

Comments wanted Federal fishery managers want comments on plans to relax Steller sea lion protections and allow more fishing for cod and Atka mackerel along the western Aleutian Islands. It could lead to those fisheries being reopened in January after a five-year closure. Deadline to comment is August 15. www.regulations.gov. Laine Welch lives in Kodiak. Visit www.alaskafishfactor.com or contact msfish@alaska.com for information.

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Page A8 • July 13, 2014 • Alaska Journal of Commerce

State, producers, TransCanada agree on gasline engineering By Tim Bradner Alaska Journal of Commerce

The North Slope gas producers, pipeline company TransCanada Corp. and the State of Alaska signed a long-awaited agreement July 2 to jointly fund preliminary engineering for a large-diameter

North Slope gas pipeline and large liquefied natural gas export plant at Nikiski. “Environmental and pipeline engineering fieldwork has officially begun,” Gov. Sean Parnell said in a statement. “I am pleased all parties continue to make progress on building

an Alaska gasline project that will create thousands of Alaska jobs and fuel Alaska homes and businesses.” Costs of the overall project, which would export 15 million to 18 million tons per year of LNG, have been estimated at $45 billion to $65 billion. However, the Pre-

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liminary Front-End Engineering and Design, or pre-FEED, process that has now begun will produce an updated cost figure. Under the Joint Participation Agreement that has been signed, parties engaged in the project agreed on how to share costs of the pre-FEED, which will involve expenditure of several hundred million dollars and will take about a year to complete. Updated costs are expected to be available in late 2015, state officials have said. State legislators who worked to pass the enabling legislation for state participation in the pipeline also expressed optimism. “I am very encouraged by this LNG opportunity for Alaskans,” said state Sen. Cathy Giessel, RAnchorage. “Affordable gas, abundant job opportunities and prospering families — it’s bright future.” Sen. Anna Fairclough, R-Eagle River, said, “We are another step closer in this long process to deliver affordable energy to Alaskans. I appreciate the collaboration and hard work by all parties to move this important project forward.” However, Bill Walker, former Valdez mayor who is running for governor against Parnell as an independent, dismissed the signing as “another study.” “This pre-election announcement is nothing more than electioneering at its worst and risks the future of this state. It places control in the boardrooms of Houston, London and Calgary where decisions will be made that are best for these companies and their shareholders,” Walker said in a statement. Walker has supported a statebuilt pipeline that should be in construction now. “Alaskans are rightfully concerned that we are entering into another doomed study while the market opportunities continue to pass us by,” Walker said. The deal was expected to be signed by June 30, but concerns expressed by ConocoPhillips delayed the signing until July 2, according to sources familiar with the negotiations. BP, ExxonMobil, TransCanada and the Alaska Gasline Development Corp., a state corporation, had agreed earlier on the joint-funding arrangement. ConocoPhillips is now pleased with the agreement, company spokesman Natalie Lowman said. “The signing of the JVA (Joint Venture Agreement) brings the state, through AGDC, into the project as a full participant. This is a significant milestone,” she said. Parnell said work will now also begin on preparations to secure an LNG export license from the U.S. Department of Energy and on permits needed from the Federal Energy Regulatory Commission. “Each producer party, in addition to the state, will begin to engage the LNG sales market,” Parnell said in his statement. Primary markets are expected

to be in Asia. If the project is built, it could be in operation in 2024. It would be one of the world’s largest LNG export projects, state officials said. The overall project is structured so the three producers and TransCanada will own the large gas treatment plant planned for the North Slope and the 800-mile, 42inch pipeline that would be built to Southcentral Alaska. The state, through its Alaska Gasline Development Corp., or AGDC, has an option to acquire 40 percent of TransCanada’s interest in the pipeline and treatment plant, but the option must be exercised in 2016, according to the state’s agreement with the pipeline company. For the large LNG plant planned at Nikiski, AGDC would own 25 percent with the three producer companies owning the remaining 75 percent. TransCanada would own no part of the LNG plant. Earlier, the state signed three other agreementswith TransCanada. One gives the state the right to acquire 40 percent of the pipeline company’s holding in 2016. The second is a “Precedent Agreement” for the state to ship state-owned royalty gas through TransCanada’s share of the Slope conditioning plant and pipeline. The state will take its royalty and tax share of gas, about 25 percent of expected gas production from the Slope, and ship it through TransCanada’s capacity in the pipeline. The state share will be 750 million cubic feet to 850 million cubic feet of the 3 billion to 3.5 billion cubic feet that would be shipped daily through the pipeline. A third agreement with TransCanada was the formal termination of the state’s “AGIA” (Alaska Gasline Inducement Act) contract with the pipeline company that the state had entered into in 2010. Termination of the AGIA contract brought closure to a difficult, controversial chapter in the gas pipeline effort. TransCanada had initially focused on an overland pipeline to ship Alaska gas to Alberta and, eventually, the U.S. Lower 48 states. By 2012, the rapid development of shale gas in the U.S. and Canada made an overland pipeline increasingly doubtful, and effort switched to a pipeline across Alaska and a large LNG export project. The state had been unhappy with terms in its 2010 contract with TransCanada, however, as the state was required to pay a subsidy to the pipeline company, which totaled more than $300 million before the AGIA agreement was terminated. A negotiation of a new contract, as part of the overall joint-venture with the producing companies, ended those concerns. Tim Bradner can be reached at tim.bradner@alaskajournal.com.

July 13, 2014 • Alaska Journal of Commerce

• Page A9

Strong, early sockeye returns highlight salmon season By Elwood Brehmer Alaska Journal of Commerce

The Bristol Bay sockeye run continues to exceed expectations. Prior to the season, the Alaska Department Fish and Game forecast was for a sockeye run of 26.6 million fish. A run of that size would have allowed a commercial harvest of 17.9 million fish, leaving about 8.7 million fish for escapement. All of those numbers have already been surpassed. Through July 7, ADFG counted a total salmon run of 30.88 million in the region. The commercial harvest through that day was 21.14 million fish. The run has also well surpassed the 2013 run of 23 million fish. The 20-year average run is approximately 36 million sockeyes for Bristol Bay. Strong red returns in the Wood River drainage pushed ADFG to increase the sport fish limit from five to 10 reds per day on July 4. The Wood River run was more than 1.9 million through July 2, far greater than the upper escapement goal of 1.5 million fish. An early and now waning king salmon run on the Nushagak River forced the department to halve the daily bag limit — from two to one — for sport caught kings in the large Bristol Bay watershed July 7. As of that day, 59,539 kings had passed the Portage Creek sonar on the Nushagak, well off last year’s total of 86,054 kings for the same day. The total Nushagak king run in 2013 was 113,743 fish. According to a July 3 ADFG release, the run is expected to fall within the escapement goal range of 70,000 to 90,000 kings.

Southcentral Upper Cook Inlet sockeye returns continue to outpace historical averages as well.

Through July 8, 42,273 early-run sockeyes had passed the Russian River weir, exceeding the runs upper-end escapement goal of 42,000 fish with six days of counts to come. The traditionally larger late run officially begins July 15. Those late-run reds are on their way up the Kenai River, too. Nearly 127,000 fish had passed the sonar at Mile 19 of the Kenai by July 8. By comparison, 50,100 late-run reds had passed the counter in the same period last year. The Kenai River personal use dipnet fishery begins July 10. King salmon caught

Additionally, ADFG expanded the personal use red fishery on the Kasilof through Aug. 7, opening the river to dipnets up to the Sterling Highway bridge. Upper Inlet commercial fishers have harvested 520,000 salmon, ADFG reported July 9. Of those, 452,210 were Upper Cook Inlet Central District sockeyes. The department also reported 2,481 kings had been taken commercially in the Upper Inlet. To the south, the Lower Inlet commercial fleet had harvested 122,683 salmon, a catch dominated by 117,848 sockeyes as of July 9. Elsewhere in Southcentral, more than

turns, ADFG is opening the Chitina dipnet fishery July 14 to July 20 with a supplemental harvest of 10 fish per household allowed above the annual limit. The yearly limit is 15 for household of one and 30 salmon for households of two or more. Commercial harvest of Kodiak sockeyes neared 789,000 fish as of July 7, with the total salmon catch eclipsing 1 million fish. A majority of the sockeyes came from the Karluk River area with 423,521 fish harvested there. More than half — 41,870 — of the 91,664 pinks harvested in Kodiak fisheries came from Karluk as well. Chum harvest around the island totaled 106,094 fish through the first week of July, with the Karluk, northeast and Duck bay areas dominating the catch.

Through July 7, ADFG counted a total salmon run of Southeast 30.88 million in the Bristol Bay region compared to the The summer king troll fishery opened preseason forecast of 26.6 million. The commercial harJuly 1 in Southeast. ADFG’s total king harvest through July 7 was 21.14 million fish compared to the vest target, with Alaska hatchery fish, is 171,300 fish. original forecast of 17.9 million.

in the fishery must be released. Sport king fishing opened July 1 on the Kenai below a regulatory marker near Skilok Creek, downstream of Soldotna. The first week of the run is ahead of the previous two years with 1,524 fish counted through July 7. Single-hook and no-bait restrictions are in place for the fishery. With more than a month to go in the Kasilof River red run and already surpassing its minimum escapement goal of 160,000 fish, ADFG increased the daily bag limit from three to six sockeyes on the Kasilof July 4. Through July 8 the Sterling Highway sonar on the river had counted 201,469 sockeyes.

17.8 million salmon have been harvested commercially in Prince William Sound fisheries, according to ADFG numbers available July 9. The eastern purse seine fishery pinks accounted for more than 10 million of those fish, with another 2.8 million pinks harvested in the Montague District. Copper River gillnet fishers had taken 1.8 million sockeyes and 9,541 kings, according to the Sound report. Through July 8, nearly 960,000 sockeyes had passed the Miles Lake counter on the Copper. The upper escapement goal for the fishery, which is counted through July 27, is 750,000 sockeyes. As a result of the high sockeye re-

Harvest statistics will not be available until later in the month, according to the department. In the spring troll fishery about 43,000 kings were taken. That was the highest number since 2007. Only 7,000 chums were harvested by 43 Icy Strait spring troll fishers, down from a harvest of 280,000 chums by 185 permit holders in the same area in 2013, ADFG reported. The region’s purse seine fishery opened in traditional areas June 15. ADFG is projecting a harvest of 22 million pinks, well below the 10-year average of 34.5 million of the small salmon. Total chum returns, which are primarily hatchery fish, are expected to be 9.9 million salmon. Elwood Brehmer can be reached at elwood.brehmer@alaskajournal.com.

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Page A10 • July 13, 2014 • Alaska Journal of Commerce ATT-0950 AJOC May 2014.pdf

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July 13, 2014 • Alaska Journal of Commerce

• Page A11

Customized solutions, scalable services. Buccaneer bankruptcy slows gas fight with CIRI By Elwood Brehmer Alaska Journal of Commerce

A dispute over natural gas rights and royalties is on hold as Buccaneer Energy works out its finances in a South Texas Bankruptcy Court. Representatives for Houstonbased Buccaneer Energy, Cook Inlet Region Inc. and the State of Alaska convened at the Alaska Oil and Gas Conservation Commission office in Anchorage July 7 for what ended up being a very brief hearing in the fight over gas Buccaneer is producing from its Kenai Loop field. CIRI, the Southcentral Alaska Native Regional corporation, claims Buccaneer owes it royalties for gas the company pulled from its land that is adjacent to the Kenai Loop pad. Buccaneer once held a now-terminated gas lease with for the CIRI property. It does not dispute that the drainage is occurring from CIRI lands at two of the three wells, KL-1 and KL-3, on the Kenai Loop pad. The Alaska Mental Health Trust Authority also owes it money, CIRI says, for the royalties the authority has received from Buccaneer that stemmed from draining CIRI’s gas. The Alaska Mental Heath Trust Authority owns the Kenai Loop property that Buccaneer is leasing. CIRI argues it is having its subsurface rights violated as gas is being pulled from beneath its property buy the KL-1 and KL-3 wells without a pooling agreement in place. CIRI Vice President of Land and Energy Development Ethan Schutt said during an April hearing on the issue that nearly 8 million cubic feet of gas per day is being produced by the wells. The Buccaneer gas lease for the CIRI land was terminated by the Native corporation for undisclosed reasons. AOGCC Chair Cathy Foerster said the commission would not rule on the conflict until a stay put in place on Buccaneer and associated proceedings by the court while the bankruptcy situation is sorted out is lifted. The petroleum company filed for Chapter 11 bankruptcy May 31. A quick look at Buccaneer’s financial statements made the bankruptcy claim predictable, Schutt said in an interview. Buccaneer reported assets of $0 to $50,000 with liabilities between $50 million and $100 million in its bankruptcy filings. The company also proclaimed its belief that funds would be available for unsecured creditors. See Buccaneer, Page A31

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On August 19th

Vote No on

Ballot Measure 1 threatens Alaska’s future.

Voting No means:

More jobs for Alaskans

1/3 of all Alaska jobs come from the oil and gas industry.

More oil production

Alaska oil production has been declining for years, and the pipeline now runs at only 1/4 capacity. The old tax sytem, called ACES, failed to stop the decline. The new system is designed to produce more oil.

More money in the Permanent Fund The new tax system is designed to increase oil production. More oil production means more money going to the Permanent Fund.

More economic growth for everyone

Everyone benefits from a stronger economy. It means more jobs that are better paying. Voting No supports small businesses across Alaska.

Alaska depends on oil tax revenues Alaska will get more revenue under the new tax structure than under the old, failed system (ACES).

90% of all state revenue comes from oil

all other revenue sources Source: Alaska Dept. of Revenue, April 5, 2013 presentation

Let’s give oil tax reform a chance www.VoteNoOnOne.com Paid for by Vote No on 1, Anchorage, AK 99509. Leslie Hajdukovich, Bob Berto, Rick Boyles, Linda Leary and Rick Mystrom, co-chairs, approved this message. Top contributors are BP, Anchorage, Alaska, ConocoPhillips, Anchorage, Alaska, and ExxonMobil, Anchorage, Alaska.

Page A12 • July 13, 2014 • Alaska Journal of Commerce Editor’s note: Over the pages in this and the additional section, you’ll find a comprehensive look at the issues surrounding the upcoming Aug. 19 election that will decide whether Alaska keeps the oil tax reform bill passed in 2013 or returns to the previous system known as ACES, or Alaska’s Clear and Equitable Share, that was in place from 2007 until the end of 2013. A ‘no’ vote will keep the 2013 tax reform in place while a ‘yes’ vote will revert the state to ACES. The critics of oil tax reform have labeled it a ‘giveaway’ to industry while its supporters have argued that reform was necessary to encourage additional production and make the state competitive with other parts of the world. We hope the information in this special edition of the Alaska Journal of Commerce will help our readers make an informed choice at the poll next month.

1969

Oil discovered at Prudhoe Bay.

1977

TAPS goes into operation.

WHAT’S INSIDE: This page: A history of Alaska’s oil taxes A14: What were the problems with ACES? A15: How SB 21 attempts to fix ACES A16: The criticisms of SB 21 A19: A Q&A with the Alaska Department of Revenue A22: How industry has responded to oil tax reform A25: New companies entering the North Slope A26: What happens if SB 21 is repealed? B2: Builders Choice busy with Slope housing units B3: MagTec in Kenai sees leap in business B7: Little Red Services uses tax credit to manufacture in-state B8: Doyon, other Native corps join to oppose repeal

1986

Price collapse triggers state recession.

1988

Legislature passes separate accounting oil income tax

The evolution of Alaska’s oil taxes By Tim Bradner Alaska Journal of Commerce

1989

Production decline begins on Slope.

1989

Exxon Valdez spills; triggers new environmental laws. Legislature increases taxes on Slope

1991

Legislature repeals 1988 separate accounting oil income tax.

2006

Legislature passes PPT, a net income tax on oil.

2007

Legislature repeals PPT, replaces with ACES.

2013

Legislature repeals ACES, passes SB 21.

How do Alaska’s oil taxes work? Our state has several ways that we tax the value of oil production. With the upcoming Ballot Proposition 1 vote, most attention is on the state production tax, which was changed by the Legislature in 2013 with Senate Bill 21. There are two other special state taxes on oil, however. One is a state property tax on oil and gas production facilities and pipelines; it is Alaska’s only state property tax. A second is a special state corporate income tax on oil producers that operates differently than the corporate income tax on non-petroleum corporations operating in Alaska. Although it is not a tax, royalties from oil and gas production from stateowned lands are also a significant source of income to the state treasury. The production tax brings in most of the revenue, however. In the state fiscal year concluded June 30, Alaska received an estimated $2.1 billion from the production tax; $464 million from the corporate income tax and $97 million from the state property tax. Another $1.68 billion was paid in royalties. Altogether, oil revenues pay about 90 percent of the state’s unrestricted general fund revenues.

Production tax is on net revenue The state production tax is usually

referred to as a tax on net revenue of oil produced. From a practical standpoint it applies only on the North Slope, because Cook Inlet oil producers essentially pay no production tax. What is taxed is really the net value of the oil, which is calculated by deducting production costs from sales revenues. The sales revenues are derived from income received on the West Coast with deductions allowed for tanker costs from Valdez and transportation costs through the Trans-Alaska Pipeline System. Because no oil is actually bought or sold on the Slope to indicate actual market sales prices, the state uses this method to derive the value of a barrel of oil at the field for tax purposes as well as for royalty cash payments. Alaska has had a net revenues tax on oil since 2006, which allows production costs to be deducted. For most of its years as an oil producing state — in Cook Inlet since the 1960s and the North Slope since the 1970s — the state had a “gross revenues” tax, allowing deductions for transportation costs but not production costs. The change to a net revenues tax — it was first called the Petroleum Profits Tax, or PPT, in 2006 — was a fundamental shift in Alaska’s oil tax policy. It was proposed by former Gov. Frank Murkowski at the urging of economists in the state

2013

Referendum organized to repeal SB 21, restore ACES.

2014

Legislature authorizes state participation in gas pipeline.

AUG. 19, 2014 Primary election to decide fate of SB 21.

AP Photo/Courtesy/Alyeska Pipeline Co.

Illustration/Nadya Gilmore/AJOC

Sections of 48-inch diameter pipe are lowered onto a pipeway along the side of a bridge across the Yukon River in August 1976. More than 12 billion barrels of oil have flowed through the TransAlaska Pipeline System since 1977, peaking at 2 million barrels per day in 1988 and since declining to about 530,000 barrels per day in 2014.

July 13, 2014 • Alaska Journal of Commerce Revenue Department who had long argued that a net revenues tax would perform better for the state, over the long term, than the gross revenues tax. That was because the gross revenues tax performed in odd ways as oil prices fluctuated, and sometimes to the disadvantage of the state. In periods of high oil prices, for example, the producers would capture most of the gains while the state would miss out. However, the gross revenues system also worked to the state’s advantage in periods of low prices because the price dip affected state revenues less than it did the producers’ incomes. Although there would be benefits and costs of the net revenue system over time, economists argued the net revenues system was better overall because it allowed the state to gain in the “upside,” when oil prices were high, but also to share some of the pain with producers on the downside, when prices were low. By keeping more revenue flowing to the producers during a price slump it would encourage them to keep drilling to sustain production, the revenue department argued. It was, overall, a more equitable sharing of the benefits and risks, they said. Murkowski adopted the idea and pressed the new Petroleum Profits Tax, or PPT, on the producers as a bargaining chip in negotiations over a deal on a natural gas pipeline, which were underway in 2005 and 2006. The new tax was actually a tax increase on the producers because the deal also ended the Economic Limit Factor, a development tax incentive in the former tax that had become obsolete and harmful to the state while it benefitted the producers. The companies reluctantly accepted the tax increase in return for the state agreeing to certain terms in the gas pipeline deal. The Legislature, in a special session, enacted the tax change and increase but not the pipeline deal, however. One element introduced into the Petroleum Profits Tax in 2006 was a “progressivity” formula that increased the tax rate as the per-barrel value of oil rose. The increases were relatively mild, however. It was indexed so that the base tax rate, which was set at 22.5 percent, went up 0.2 percent for each dollar increase in the net value of a barrel of oil. The progressivity index was to double the following year, however.

ACES ascends In 2007, Gov. Sarah Palin was in the governor’s mansion instead of Frank Murkowski. Palin wanted her own stamp on the state production tax and asked the Department of Revenue for recommendations. As with any new tax, like the PPT, there were tweaks that the Revenue Department considered necessary, and several recommendations were made to the new governor. Palin also increased the

Photo/File/AP

Former Alaska Gov. Frank Murkowski talks to local and national media in Anchorage on Aug 30, 2006, about a natural gas pipeline and calling a special legislative session. Murkowski’s oil production tax change, known as the Petroleum Profits Tax, was passed by the Legislature during that session. Murkowski lost reelection a few months later to Sarah Palin and the PPT would be repealed the following year.

base rate of the tax from 22.5 percent to 25 percent in the revised tax and also lowered the per-barrel value at which the progressivity formula would kick in from $40 per barrel to $30 per barrel. Palin introduced these proposals in a bill and changed the name of the tax to “Alaska’s Clear and Equitable Share” or ACES, to put her personal stamp on it. Overall, the impact of her proposals was relatively mild compared with what was to come. As the ACES bill progressed through the Legislature in 2007, each House and Senate committee wanted to put its mark on the bill. Oil prices were rising at the time, along with fuel prices at the pump, and legislators were getting heat from constituents over energy costs. Lawmakers responded by increasing the index of the progressivity formula so that the tax rate went up faster — from 0.2 percent to 0.4 percent — as oil values rose, driven by high oil prices. Those changes would bring in more revenues to the state from the industry’s “windfall” from high oil prices, it was argued. Later, in 2008, some of the higher state revenues were distributed to citizens in the form of a one-time “energy dividend” payment of $1,200. However, as the ACES bill moved through the Legislature in 2007 it seemed each legislative committee tried to outdo the previous committee in making it “tougher” on the industry. When the ACES bill finally went to the House and Senate floor that year there were even amendments being made — and decided — by floor votes.

tor because it is typically the drilling of new production wells that sustains the producing fields. As the drilling slowed, the decline in production continued at a long-term average of 6 percent per year and even increased to 8 percent in some years. At the time, the North Slope producers were also making major investments in field maintenance, but the amount of capital spent on developing new oil, which is the important number, dropped. By 2010 and 2011 only 30 cents of every dollar invested by the major producers was spent on activity like drilling, ConocoPhillips Alaska president Trond-Erik Johansen said. The other 70 percent was being spent on maintenance. Overall capital investment by the companies, including the major maintenance and any new development, was flat. Exploration drilling also dropped. In the winter of 2011 there was only one exploration well drilled on the Slope. The aggressive progressivity formula in ACES resulted in an effective “total govern-

ment take” (combined state and federal taxes) on North Slope production of more than 70 percent at times. It was one of the highest tax regimes of any oil-producing region of the world among those that used tax and royalty systems (some producing nations rely on production-sharing agreements with producers).

Bulging budgets Defenders of ACES argue that the gush of revenues produced by the tax resulted, during period of high prices, in a buildup of state savings that are now cushioning the deficits in the state budget. Some of the revenues went into state savings accounts but much of the revenue was also spent in hefty state capital budgets. At the time, Sens. Lyman Hoffman, D-Bethel, and Bert Stedman, R-Sitka, said the big state capital budgets helped cushion the state’s economy when the rest of the nation tipped into sharp recession in 2009. Hoffman and Stedman cochaired the Senate Finance Committee during some of those years. However, the availability of the ACES revenue also re-

• Page A13

sulted in substantial increases in the state operating budget, Sen. Pete Kelly, R-Fairbanks, the current Senate Finance cochair, has observed. The state’s gain was at the expense of the oil producers, who were largely cut out of the benefits of higher prices. For example, in 2007 when crude oil prices were about $70 per barrel, ConocoPhillips, which reports income for Alaska operations, earned net revenues of about $22 per barrel on its production that year. Meanwhile, the state earned about $27 per barrel (state taxes and royalty combined) on ConocoPhillips’ production. In 2011, oil prices were about $106 per barrel. ConocoPhillips earned about $27 per barrel, $2 per barrel higher, but the state earned $51 per barrel.

Balancing the take What’s important about this is how it affects the companies’ long-term projections on pending new investments. The companies know that, over time, there will be cycles of high prices as well as cycles of lower prices, and they need to know that when the high price cycle occurs they can share in the gain along with the state. The best tax, they say, is one where “upside” gains are split 50-50 between the companies and the state. Senate Bill 21 largely does this, they say. The split doesn’t work that way on the low-price cycle, however. Both ACES and SB 21 have minimum-price floor tax rates that protect the state’s revenues if prices drop too low. The companies say they are willing to accept this as long as the upside is shared. ACES wouldn’t allow that, however. As designed, the ACES tax led to declining investment in the North Slope fields in the kinds of activity like drilling that makes new oil. Meanwhile, states with less aggressive tax structures, like North Dakota and Texas, enjoyed huge increases in industry investment over the same period and rapid increases in production.

ACES in the hole The effects of the high tax rates were quickly to be felt. Doyon Drilling, one of the state’s major drilling contractors, saw two of its rigs laid off. Drilling activity dropped from 10 rigs working in 2006 to 8 in 2007 and to 6 in 2010. (Drilling has since increased to 17 rigs working this past winter). Drilling is a key indica-

Photo/File/AP

Former Alaska Gov. Sarah Palin, explains the state’s oil and gas tax to a University of Alaska Anchorage student after a news conference in Anchorage on Sept. 4, 2007. Palin successfully pushed for a repeal of the state’s year-old oil production tax known as PPT, calling it a failure and tainted by the federal corruption charges against former lawmakers involved with the tax change. The Legislature would go on to pass a new tax called Alaska’s Clear and Equitable Share, or ACES.

Page A14 • July 13, 2014 • Alaska Journal of Commerce

Legislators on both sides agreed ACES needed changes

Alaska’s previous oil tax, known as ACES, was passed in 2007. By 2009 and 2010, it was widely agreed — by Democrats as well as Republicans in the Legislature — that changes were needed. There were disagreements over what the changes should be, but it was generally accepted that the tax had become dysfunctional. Why was that?

percent. Six months later it was 50 percent, increasing only because of swings in world oil prices. Another problem was that a tax rate change under ACES subjected all of a company’s earnings on oil production to the changed tax. It wasn’t like the federal income tax where tax rates on income are bracketed. Bruce Tangeman, former state Deputy Revenue Commissioner for Tax, said he believes the instability and unpredictability of the ACES tax was its biggest problem and not so much the high tax rates. “Oil producers are used to paying high taxes, but they want them to be stable and consistent. The ‘progressivity’ formula in our tax made it perform in ways that were just wacky. It really made us unattractive,” Tangeman said.

A complicated, unpredictable tax

Back luck on timing

By Tim Bradner Alaska Journal of Commerce

First, the ACES tax was extremely complicated, and difficult for companies to understand. In and of itself this was a big barrier for firms interested in coming to Alaska. Other states, like Texas and North Dakota, have simpler taxes. Second, ACES’ effects were unpredictable, and short-term swings in crude oil prices could cause the tax rates to vary widely. Under ACES, the tax had to be calculated every month, so month-to-month variations in prices could play havoc with a company’s best effort to predict its tax payment for the year. In January 2009, one North Slope producer estimated its average tax rate for the year at 15

Photo/Dan Joling/AP

Mike Pawlowski, currently a Deputy Revenue Commissioner, said Alaska also suffered some very bad luck with timing when ACES was enacted. “When the Legislature was considering ACES in 2007 there seemed to be a very limited competitive environment,” or other places companies could invest, he said. That perception, held by everyone at the time, shaped legislators’ decisions. In 2008, the competitive world changed, unexpectedly, in ways few in industry and no one in Alaska saw coming. Shale oil development in Texas and North Dakota took off along with activity in Alberta, Canada, and suddenly Alaska wasn’t looking so good.

Former Alaska Gov. Tony Knowles, a Democrat, speaks at a rally calling for changes in Alaska’s oil tax structure on Feb. 23, 2011, in Anchorage. Current Republican Gov. Sean Parnell completed Palin’s term after she resigned in 2009, and after winning election in 2010 he announced he wanted to reform the oil tax structure known as ACES to encourage additional investment and production on the North Slope.

“As oil prices went off our situation became worse, because the ACES tax rates climbed and made us look worse and worse compared with those other places,” Pawlowski said. Pawlowski said Alaskan activity was getting no lift from high oil prices through 2010 and 2011 while those other states were booming, but what was particularly striking is that the tax disadvantage was enough to overcome the huge advantage Alaska has in transporting oil through a wellestablished pipeline and tanker transportation system compared

Effective ACES Tax Rate at $115/barrel market price (all taxes & royalties) 90%

70% 60% 50% 40% 30%

ca n

ai n ar uvik gu ge lf o nti ca f m na n e ca ada xico na y da uk o ca bea n na uf da or ba t gr ffen ee c n ca ana land na da da n n w no un t rth av ca da ut na ko da ta ne wf te ou xa nd s la n ice d la n al d be au rta str al ia u. k. br a m zi al l ay sia eg yp AL AS ru t KA ssi –A a C no ES rw ay o in ma do n ne sia

Effective Tax Rate

80%

Source: Roger Marks, 2/8/12 Presentation

Change in Average Oil Production by State 2011-2012 .1

70.0%

60.0%

50.0% .9 %

40.0%

% 1% New Mexico

-6 Alaska North Slope

Colorado

Wyoming

North Dakota

Kansas

Texas

California

4% \Montana

Mississippi

2. Lousiana

Alabama

Utaha

0.0% Oklahoma

6% 9. 2%

10.0%

-10.0%

.8 % 13

% 15

% .5 14

20.0%

30.0%

Source: AK Department of Revenue & US Energy Information Administration – 3/18/13

Charts/Courtesy/Alaska Oil and Gas Association

TOP: The chart shows the effective tax rate for oil at a price of $115 per barrel under ACES, which was in place from 2008 until the end of 2013. The rate was the fourth-highest in the world at that price. BOTTOM: From 2011 to 2012 while ACES was in effect, every North American oil-producing jurisdiction outside Alaska saw an increase in production.

with the bottlenecks faced by North Dakota producers. Companies were willing to pay the costs of transporting oil by rail and even truck rather than come to Alaska, he said.

High-cost projects subsidized, efficient wells penalized Tangeman said one of the worst attributes of ACES, however, was how it subsidized high-cost drilling and production that would pay little or no production tax with direct state payments, while the tax was increased on conventional, or “light” oil, which did pay taxes. This came about mainly because of a 20 percent capital investment tax credit in ACES that allowed companies a dollar-for-dollar tax credit on one-fifth of all capital investments, for whatever reason. In the case of a high-cost project like shale oil or heavy oil, both of which are being pursued on the North Slope, there were scenarios where the state would actually lose money, where there would be effectively no production tax and where the state front-end subsidy would be more than the royalty revenue that could be expected. The capital investment tax credit was applied to all kinds of investments, not just those linked to production, Tangeman said. “The cost of repaving an airport runway would be partly paid by the state, and while that may improve the efficiency of support operations it wouldn’t result in one new barrel of production,” he said. Pawlowski cited another example with Point Thomson, the large gas and liquid condensate field east of Prudhoe Bay now being developed by ExxonMobil Corp. It is an expensive project, at $4 billion capital cost, and if ACES were in effect the state would pay 20 percent of the cost, or $800 million. Yet Point Thomson will produce only 10,000 barrels a day of liquids, at least in the near-term, so the state’s $800 million investment would result in a huge loss compared with the revenues received from production. ExxonMobil and its partners,

which include BP, have other reasons for developing Point Thomson, including as a settlement of litigation and the first phase of a large gas project. But it is not a conventional commercial project that makes money. One of the most important changes in SB 21 was to end the 20 percent capital investment tax credit and to replace it with tax credits linked to production so that companies would have to produce oil to get the credit, not just spend money, Pawlowski said. Also, the capital investment tax credit was getting expensive for the state treasury. Had ACES remained in effect it would have resulted in several hundred million dollars per year per year in the state budget.

Nothing in ACES to encourage new oil One final defect of ACES, in the view of Revenue officials and many legislators, was there was nothing in it to explicitly encourage development of new oil on the North Slope except for the imperfect 20 percent capital investment tax credit, which seemed to offer an ongoing capital subsidy, and exploration tax credits that were only for certain expenses. Over the three years that tax changes were being considered, legislators seemed in wide agreement, even Democrats, that something for new oil should be part of the deal. Democrats including Rep. Les Gara, D-Anchorage, came in with their own specific proposals, and there were Democratic minority proposals for mechanisms to encourage new oil from producing fields. In the heated closing days of the 2012 legislative session, under the Senate Democrat-Republican bipartisan coalition, a bill passed aimed mainly at encouraging new oil. The House did not go along with the Senate proposal, however, because it did not contain enough to encourage new oil in the existing fields. A mechanism specifically aimed at new oil was to become a key part of SB 21 when it passed the Legislature in 2013.

July 13, 2014 • Alaska Journal of Commerce

• Page A15

How SB 21 attempts to solve the problems with ACES By Tim Bradner Alaska Journal of Commerce

Senate Bill 21, passed by the Legislature in 2013, aimed to solve the problems that had appeared in the previous oil production tax, known as ACES. The bill, effective as of this past Jan. 1, has sparked raging debates over the financial effects of the tax change — whether or not it was a tax “giveaway” to the industry — but there are two new provisions in SB 21 that have received little attention. One is a “frontier basin” incentive that encourages drilling in the huge, unexplored sedimentary basins of Interior and Western Alaska, where discoveries, most likely natural gas, could supply local sources of energy. This provision essentially extends to rural areas a set of exploration tax credits and stable tax rates that have applied in Cook Inlet for years. When Southcentral Alaska utilities became worried about depleted gas reserves in Cook Inlet gas fields a few years ago, the Legislature quickly pushed through incentives to get new drilling underway. It worked. Companies have been exploring for, and finding, new gas supplies since then. The worry over shortages is over, at least for the time being with utility supply contracts secured through the 2017-18 winter. Now rural Alaska wants to do the same thing to bring relief from skyhigh energy costs. Interior Alaska Native Regional corporation Doyon Ltd. is now exploring the Nenana Basin west of Fairbanks and the Yukon Flats Basin north of the Interior City. (see story, page B8) Doyon can afford to drill, and risk its own money, with the help of the incentives enacted in SB 21. Without them, Doyon would not have been able to do much exploration, according to Doyon CEO Aaron Schutt. It’s a similar story in the Copper River basin near Glennallen. Ahtha Corp., Alaska Native regional corporation based there, hopes to find natural gas for local heating and power generation. The new incentives in SB 21 will help it attract industry partners, Ahtna has said. Ditto for NANA Regional Corp., based in Kotzebue, which believes the Selawik Basin in that region could hold gas that could be a local source of energy. Secondly, there is a tax credit for oil and gas service companies who relocate facilities from the Lower 48 to Alaska or build new or expand support facilities in the state. Little Red Services, a locallyowned support company, is one company that has already taken advantage of this. The company has relocated a plant from North Dakota to Anchorage. (See story, page B7) SB 21 allows a service company to credit up to 10 percent of its investment against Alaska corporate income taxes. The provision in intended to favor Alaska-based service companies according to Sen. Click Bishop, R-Fairbanks, who sponsored the amendment to SB 21. Bishop believes helping local service companies and suppliers

AP Photo/Bill Roth/Alaska Dispatch News

Surrounded by workers employed by the oil industry, Gov. Sean Parnell signs Senate Bill 21 at a special event hosted by the Anchorage Chamber of Commerce in May 2013. The bill attempts to solve the problems with ACES by eliminating the complex and volatile progressivity formula and encouraging new production from new and existing fields.

will boost Alaska-hire in the industry support sector.

Simpler, easier to understand The most important change in the state’s petroleum tax brought by SB 21, however, is that the new tax is simpler and easier to predict, although its base tax rates are actually higher than the ACES tax. Under SB 21, the base tax is 35 percent compared with a 25 percent under ACES. The new tax is simpler, however, mainly because the “progressivity” formula that was in ACES has been eliminated. Eliminating the progressivity formula helps the state in important ways. The formula contained a tax escalator provision that raised the tax rate by 0.4 percent for every $1 per barrel gain in the value of oil. This had the effect of hiking tax rates quickly to high levels when oil prices climbed. The problem this created for producing companies was that taxes could climb steeply and unexpectedly. It was also unpredictable for the state, as it turned out. While the progressivity formula caused tax rates to climb sharply and quickly when oil values increased, the same thing happened in reverse when oil values dropped. Precisely this happened last fiscal year. Oil prices dropped a bit, per-barrel producing costs rose (partly because production had also dropped) and the lower net value of the oil (revenues minus costs) caused state revenues to plummet. It caught the Department of Revenue and state legislators off guard. The state will run a $1.8 billion deficit in the fiscal year just ended June 30, requiring a draw from state cash reserves. Part of the blame for the deficit can be laid to ACES, which was in effect for the first six months of the fiscal year. The new law, under SB 21, has no progressivity formula. Its base tax rate is 35 percent no matter what happens to oil values. While the base tax rates differ, the effective tax rate under SB 21 is softened by production tax credits that are allowed because under SB 21 there is a new per-barrel tax credit. The same reduction in the effective rate happened under ACES, although

the mechanism was different. Under ACES a capital investment tax credit allowed companies to credit 20 percent of their capital expenditures, which also brought down the effective tax rate. The comparisons might differ from year to year due to changing costs and

oil prices but for this year at least the financial effect of tax credits under ACES and under SB 21 would be about the same.

Incentive for new oil

is that it contains a direct incentive for new oil development, which ACES did not have. The “new oil” incentive is a tax credit of $5 per barrel for new barrels produced from a geologic reservoir that was previously not drilled. To qualify for these credits, the oil must be from non-producing deposits that are separate from existing fields, or clearly defined deposits within existing fields that are separate from reservoirs that are producing. The Division of Oil and Gas, which has experienced petroleum geologists on staff, will help the Department of Revenue make the determinations of when “new oil” can be eligible for the tax credit. There is a complicating factor with the per-barrel production tax credit, however. The $5-per barrel tax credit for “new” oil is given to barrels produced from separate new deposits. However, a lot of new oil can be squeezed out of the older producing fields with new drilling and new technology. Although the fields are older, history has shown that mature producing fields are the best place for companies to develop new oil. In fact, most of the known but undeveloped oil resources of the

A second key achievement of SB 21, in the view of its advocates,

See Fixing ACES, Page A16

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Page A16 • July 13, 2014 • Alaska Journal of Commerce

Behind the criticism of SB 21 and the effort to repeal it

By Tim Bradner Alaska Journal of Commerce

Why did people get so worked up about Senate Bill 21, the bill changing Alaska’s oil and gas production tax? The bill passed the Legislature in April 2013 and within weeks there were petitions filed for a voter referendum to repeal the tax, and shortly afterward people with clipboards were at the entrance to retail stores gathering signatures. The referendum gained sufficient signatures, and Lt. Gov. Mead Treadwell approved its placement on the primary election ballot for this coming Aug. 19. SB 21 generated a lot of political heat as it moved through the Legislature during the 2013 session in Juneau. Gov. Sean Parnell sponsored the bill and supported it along with most Republican lawmakers. Democrats uniformly opposed it, but they were in the minority. A handful of Republicans also voted against it in the House and Senate. At the time SB 21 passed, it did appear that it would reduce state revenues compared with what the existing tax, known as ACES, would have brought in. The Department of Revenue estimated in April 2013 that the tax change would result in a revenue loss of $670 million to $720 million in fiscal year 2015, the current budget year that began July 1, compared with what ACES would have brought in. However, in the department’s fiscal year 2015 revenue forecast released in December 2013, the tax change was estimated to have a much smaller revenue impact. In fact, were ACES in effect in fiscal year 2015, the current budget year, it would have brought in less revenue, the department said. Yet in the heated debate raging since

Fixing ACES: North Slope are in the existing fields, state geologists have said. To provide an incentive to tap these resources, the Legislature granted a sliding scale, per-barrel tax credit in SB 21 that applies to all production from the field, without attempting to distinguish whether it is “new” or “old.” The credit ranges from zero at high oil values to as much as $8 per barrel if oil values drop to lower levels. Since these per-barrel tax credits would apply to all production from the existing fields, critics of SB 21 have criticized this as a major “giveaway” in the new tax law. It was to counter the adverse financial effect of this, however, that the Legislature raised the bas tax rate in SB 21 to 35 percent from the 25 percent tax rate under ACES. The financial effect to the state may be softened by the higher tax rate but the underlying structural change in SB 21 of tax credits linked to production rather than spending, as it was under ACES, was a primary goal for Gov. Sean Parnell and the Legislature in making the change.

Top Photo/Mckibben Jackinsky/Homer News Right Photo/Michael Dinneen/Journal file

ABOVE: Opponents of Senate Bill 21 rally in Homer on June 14 as part of the “Vote Yes” campaign to repeal the oil production tax bill passed in April 2013. RIGHT: Vic Fischer, who was a delegate to the Alaska Constitutional Convention, carries a box full of petition signatures into the Division of Elections on July 13, 2013. Fischer is leading the effort to repeal SB 21, which he labels a giveaway to the oil industry.

2013, critics said the projected revenue loss would be $2 billion, hence the slogan, “a $2 billion giveaway.” Generally, the Revenue Department now estimates the new tax will bring in about the same amount as ACES at current prices, but that can change year-to-year depending on oil prices and costs. If oil values drop, SB 21 would bring in more money. If values rise, ACES would bring in more money. The change in the Revenue Department’s See Criticism, Page A17

Continued from Page A15

Photo/Michael Penn/Juneau Empire

At far left and far right, respectively, are Democrat state Sens. Hollis French and Bill Wielechowski, both of Anchorage, on the last day of the 2013 Legislative session in Juneau. The two have been among the most outspoken critics of Senate Bill 21, but they have also previously proposed ideas to fix problems with the previous tax system known as ACES.

July 13, 2014 • Alaska Journal of Commerce

Criticism:

Continued from Page A16

estimates, between April 2013 and December 2013, set off new changes from opponents of SB 21 that the numbers had been “cooked” by the Revenue Department and industry. That it coincided with an actual revenue decline of $1.8 billion in fiscal year 2014 and $1.3 billion in fiscal year 2015 added fuel to the controversy, although Revenue Commissioner Angela Rodell explained to legislators in January that the tax change had nothing to do with the drop in revenues (the new tax didn’t take effect until Jan. 1, 2014). What caused the decline was a combination of lower oil prices, higher per-barrel production costs and an 8 percent drop in production for fiscal year 2013 that was unexpected in April 2013.

Politics of oil At the root of the animosity, though, is a distrust many Alaskans have of the oil and gas industry and an almost knee-jerk disbelief of any claims by industry. The issue has also become political, too, with most Democrats automatically lining up as critics of oil tax changes and Republicans mostly lining up behind Gov. Sean Parnell’s push for the change. There are exceptions, of course. Former Gov. Tony Knowles, a Democrat, favors SB 21. Sen. Bert Stedman of Sitka, a Republican, voted against SB 21 and favors its repeal. The oil tax reform issue has been around for a few years. It was first before the Legislature in 2011 and 2012 as House Bill 110. That bill passed the Republicancontrolled House but bogged down in the state Senate, which was then controlled by a coalition of Democrats who had gathered enough Republicans to form a majority. Even still, a coalition in the Senate was making progress toward changing the ACES tax when the Legislature ran out of time in the 2012 session. A bill passed the Senate that put in place tax reductions for newly-discovered oil in fields or deposits within existing field areas that were not producing. It did not contain a reduction

for the already-producing fields, however, which is where the big hang-up was. The House rejected the Senate-passed bill, arguing that the existing fields have a great deal of undeveloped oil and that a tax reduction applied there would unlock those deposits as well. Legislators were in wide agreement that “new oil” deserved a tax break. The argument was over “old oil,” or oil produced in the large “legacy” fields. In 2012 this disagreement might have been worked out if legislators had had more time. As it was lawmakers bumped up against the 90-day adjournment deadline, so the bill died. It was resurrected the following year, in 2013, as SB 21. The politics of the debate increased after the Senate leadership changed hands in the 2012 election. Two Fairbanks Democratic senators were defeated in highlycharged races and it was enough for the Senate to be controlled by Republicans in 2013 and 2014. The lingering resentment over the loss of control of the Senate would help fuel the animosity toward the tax change, which passed in the closing days of the 2013 session, and later, the effort to repeal it.

culating

rity Testing

Another criticism of SB 21 is that it grants a tax reduction to “old oil,” or existing production in the North Slope fields. While there were few objections to lowering taxes for new oil, giving “old oil” the tax break seemed like a giveaway to critics. Also, while the argument for the old oil break was that this would

encourage companies to invest to squeeze more oil from existing wells, there was no guarantee or requirement that this would happen. In contract, the “new oil” tax break, in the form of a per-barrel tax credit, must be linked to development of a new deposit. The tax reduction doesn’t occur unless money

is invested to produce new oil. To this, the governor and companies said critics should watch the producing companies to see what they do. Despite the lack of an explicit guarantee or specific requirements in the law there have been significant investments since SB 21 was approved.

Other objections If there was no revenue reduction, or “giveaway” in SB 21 — at least in the 2014 and 2015 fiscal years — what other objections are there? There are two, mainly. One is that there will be a tax reduction if oil prices climb. A current criticism of SB 21 is that the state could lose out on substantial revenues during a period of high prices. To be sure, though, the state will gain revenues with SB 21 at higher prices because it is a net revenuestype tax, so if oil values go up the state’s income will increase. However, revenues would have gone up more were ACES still in effect because of the progressivity formula. The key criticism of ACES was that the gain under the tax was one-sided, almost all to the state and little to industry. That made Alaska projects look bad compared with other states.

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Page A18 • July 13, 2014 • Alaska Journal of Commerce

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July 13, 2014 • Alaska Journal of Commerce

• Page A19

Q&A with Revenue Commissioner Rodell and Deputy Pawlowski

By Matt Woolbright Morris News Service-Alaska/ Juneau Empire

JUNEAU — Department of Revenue Commissioner Angela Rodell and Deputy Commissioner Mike Pawlowski, who was integral in the development of Senate Bill 21, met with the Juneau Empire on June 30 to discuss how the new oil tax system was developed, and how companies have reacted to the new business climate for the oil and gas industry in Alaska. They said a methodology change in how revenue forecasts are compiled by the department has confused some into thinking SB 21 has done little-to-nothing to slow the decline of oil production. They are optimistic about the state’s future under the system. When did this administration determine there needed to be a change? At what point did ACES stop working? Rodell: On the one hand, we saw production declining in Alaska while expanding just about everywhere else, and we also saw — despite high prices — relatively flat investment in Alaska compared to everywhere else. So those were the big drivers and indicators on Alaska not being competitive. We were dropping in production on a consistent basis, accelerating that in some years and not attracting the investment to offset that decline. Can you talk a little about how SB21 was developed? Rodell: You have to go back to (House Bill 110) that was debated in the Legislature for two years — it did not pass right there at the end…there were also some proposals passed by the (Senate majority) Bipartisan Working Group specifically related to the development of new oil that failed to pass the House. So during those two years, there were a lot of consultants both for the legislative branch and the executive branch that had drilled down and identified five key problems with ACES… (Following the session) everybody had sort of admitted that oil taxes needed to be reformed; I don’t think that’s really been in question, so we really focused on what the body of knowledge said that ‘these are the problems.’ So the governor gave us four guiding principals, and what we did was work to develop a tax reform package that addressed the problems that were identified while meeting the principals. Editor’s note: Pawlowski identified those problems as follows: 1. High tax rates made Alaska uncompetitive particularly at high prices. 2. High marginal tax rates created disincentives for cost control. 3. In low price environments, the state had significant exposure

Photo/Michael Penn/Juneau Empire

Alaska Department of Revenue Commissioner Angela Rodell, seen June 30 in an interview with the Juneau Empire, says critics of Senate Bill 21 are misusing the department’s long-term forecast to make their case.

to credits and high-cost projects. 4. The complexity of the system made it very difficult to plan. 5. The way the calculation of tax worked made the development of gas next to impossible. And the four principals provided by Parnell were: 1. Any tax reform needs to be fair to Alaskans. 2. It needs to be competitive and durable for the long term. 3. It needs to encourage new production. 4. It needs to be simpler and more balanced. There’s no such thing as perfect legislation, so are there

things about this piece of legislation that are already being viewed as weak points or things that need to be tweaked? Rodell: The tax has only been in place for six months so we have not had a single tax filing under this tax. The taxpayers pay monthly returns, but until we end up with a complete year and a complete filing, it’s going to be hard to say. August has inserted some uncertainty in it for taxpayers, so we’re going to need to get past August and get a full year under our belt to truly understand what needs to be tweaked and the best route to go about that. We’re just not going to know until we have a full tax year.

The bill got passed and we’ve seen an influx of investment, but revenue forecasts are still low. We’re looking at years of decline and there are a lot of claims out there calling it “The Giveaway” and a lot of other things. How do you combat those claims and assertions that this hasn’t done what it intended to do? Rodell: People are taking the Department of Revenue’s forecast totally wrong. What the Department of Revenue forecast is, is a way that we use to calculate a revenue forecast, and in the past we banked as a department on every single project happening exactly as they said it would and at the production they said it would. Instead the department moved to a more prudent approach where we add back in production as it gets closer and more certain. So for the purposes of calculating a revenue number to tell the Legislature and the governor what they have to spend 10 years from now, we’re taking a prudent approach to forecasting, and at the same time we recognize and show a high-case scenario of if these things continue and actually come to fruition we see a much higher number — but you can have a permitting delay, you can have a well get interrupted. We add these back in as we get certainty, so these numbers that people are quoting for production are not an accurate reflection of what the department is doing with its production forecast. Is it inaccurate to say there’s a decade of shortfalls projected? Pawlowski: We don’t know what shortfalls will be because we don’t know what production will be, we don’t know what price will be and we don’t know what cost and lease expenditures will actually be…it’s production ultimately that will drive the value for Alaska over the long-term — and we see a lot of that production, but for the purposes of the next 10 years

Photo/Becky Bohrer/AP

Revenue Department Deputy Commissioner Mike Pawlowski, left, sits next to Department of Natural Resources Commissioner Joe Balash on March 14 in Juneau. Pawlowski said oil that isn’t produced won’t benefit anyone in Alaska.

we’re not banking on it. You don’t do your family budget on going to Vegas and winning. Rodell: The revenue forecast is one of the things we’ve tried to work very objectively in the department…when we apply the same methodology (as the one used for price forecasting) to our production forecast, our production forecast was way out of whack because it wasn’t being risked in any way. It was taking everything we knew and saying it was possible…our goal is to more accurately reflect — especially in the near-term, so ’15, ’16 — than what was happening. That has gotten mixed up in policy discussions. So in 2011, you were predicting a kind of best-case scenario and the best-case scenario was off by a lot? Rodell: Yes. So you’ve switched now to more of a realistic scenario? Rodell: A worst-case scenario…it’s good to have a 10-year plan, but when you look back to 2004 and you’re forecasting to 2014, there was no PPT, there was no ACES and there was no SB21 in that scenario — so revenues came in so differently than forecasted. That’s one of the struggles I have with a ten-year plan — there’s so much that’s going to happen over the next 10 years that to say because 2023 says we’re down to 300,000 barrels a day — it’s a political statement; it’s not a statement in fact or reality. What is the advantage of having SB21 or any system that stays in place for a long time? Rodell: The biggest advantage is you’re giving taxpayers certainty and stability so that when they make a significant investment into the state of Alaska, they understand what the cost of that investment is going to be and they can predict the return on their investment, and that’s true with any tax type. If SB 21 stays in place and the governor is re-elected, you’re going to see real stability and real investment in the state of Alaska — and meaningful investment. What’s been the difference in the last year — or six months — and what investments have you seen on the North Slope, and is there a sense of optimism that we’re really going in the right direction? Rodell: There’s a huge sense of optimism. I haven’t been to the Slope in quite a while, but just in going to Fairbanks and even Anchorage and the Mat-Su Valley, the sense of people being able to get a job, the sense of opportunity, of economic growth and development — it just feels like there is a tremendous amount of activity. When I was in Fairbanks, the amount of pipe at the rail yard there getting ready to be moved up — I’ve never seen the yard so full of pipe before…When you’re out there and you’re talking to people, people feel really good about what their opporSee Q&A, Page A20

Page A20 • July 13, 2014 • Alaska Journal of Commerce Continued from Page A19

tunity is in the state right now. Pawlowski: And we’re seeing a lot more interest from money to

500

able to find investors before SB 21 passed, but finished the financing of a project after the bill became law)…

Estimated capital spending* for exploration and developent AlaskaNorth Slope vs. U.S. and worldwide for the years 2003 – 2012 Alaska North Slope U.S. spending Worldwide spending WC ANS crude

450 400

(Index 2003 = 100)

invest in Alaska…(Pawlowski told a story about an Anchorage-based petroleum company that was un-

350

120 100 80

300 250

200

150 100

(Dollars per barrel)

Q&A:

50 0

0 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

*North Slope figures based on tax return information; U.S. based on top 50 public companies; worldwide based on top 75 public companies Source: Econ One Research

Chart/Courtesy/Alaska Oil and Gas Association

This chart compares capital spending on Alaska’s North Slope versus US and worldwide spending. It shows capital investments remained relatively flat even as the price of Alaska North Slope crude jumped from about $60 per barrel in 2009 to more than $115 in 2012.

There’s just a buzz not just in Alaska, but also outside Alaska. What a good opportunity people are starting to see up here; you can feel it. This goes right into a claim the other side would say, ‘Of course there’s a buzz, it’s a giveaway of natural resources.’ How do you contend with that? Pawlowski: It’s a bumper sticker,;it’s not mathematically correct. The other part of it is… If you don’t drill for oil, you’re not developing it and it’s not benefiting anybody. You’re talking about something that doesn’t exist other than in the ground. It takes capital, technology and investment to target the more challenged oil. To take that, ‘Oh, you’re just giving it away so people develop it,’ well, if it never gets developed then what are we doing? That’s part of our constitutional mandate to develop these resources for the maximum benefit of the people. Rodell: It really is philosophical at its heart. We want the private

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sector spending and creating jobs, not relying on government capital budgets to be the job creators in this state. Seeing that activity on the private sector side and that business — the ripple effects on small businesses…it trickles so far into our economy that we get a lot more bang for that dollar. So I don’t think of it as a giveaway, I think of it as a reinvestment in our state’s economy because — whether we like it or not — we are a resource-dependent state and we rely on these companies to be here and to not only generate revenue into the state coffers, but to employ Alaskans and employ all the support; when one job in the oil patch creates 20 jobs you can understand what a multiplier effect this industry has in this state. We need to have a healthy oil and gas industry in this state to continue. Pawlowski: One more point, we have not had a full-calendar year cycle with SB 21 in place for companies to progress projects to the point they share them with us. Our last full production forecast was developed in the fall after SB 21 passed, and companies have annual cycles of approving projects, so I don’t believe we’ve even seen the full company reaction to SB 21 yet. All the exploration going on doesn’t count in our forecasts yet. Going into this, you had to have had some expectations for production, for revenue and for investment — kind of benchmark goals you wanted to hit. So where are we at compared to what you expected the reaction to be in those three areas? Pawlowski: As the person who worked in the modeling and developing of (scenarios presented to lawmakers during the debate over SB 21 in 2013), the announced work — again, a lot of that is in the development stages so it doesn’t fall under our forecast methodologies — the announced work does exceed anything that I had thought about in the development of what we thought reasonable upside scenarios would be. Rodell: When we did the fall forecast and we saw the increased expenditures from companies of $10 billion that’s a huge commitment to the state in reaction. As we saw production progress — the fiscal year just ended so we won’t have the final production numbers out for the current year, but from what I’ve seen I don’t expect to see the 5.5 to 8 percent decline we saw in previous years … it’s going to be much better than that. The response has been very good considering the uncertainty generated by August. So you would anticipate even better numbers next year if this were to stay in place and that uncertainty were no longer in the equation? Rodell: Yes, I do. Pawlowski: Absolutely, and I’d add one thing: take all the progress in oil and you layer on top of the progress on gas. It’s the combination of both that really has me energized about the 30-year future for Alaska.

July 13, 2014 • Alaska Journal of Commerce

• Page A21

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Page A22 • July 13, 2014 • Alaska Journal of Commerce

Production decline erased in first year under oil tax reform Average Daily North Slope Production barrels

Decline yearto-year

1987 1988* 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002* 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1,890,722.90 2,004,100.85 1,951,480.25 1,827,459.59 1,803,828.65 1,772,916.98 1,733,269.74 1,660,158.31 1,597,542.75 1,482,354.56 1,363,355.41 1,242,900.58 1,108,183.66 995,446.18 978,701.94 1,001,875.47 982,739.43 970,375.86 908,189.04 837,142.49 732,208.25 714,447.75 692,706.41 642,540.89 599,919.03 579,357.64 531,639.15 530,939.03

6.00% -2.63% -6.36% -1.30% -1.70% -2.20% -4.20% -3.80% -7.20% -8.00% -8.80% -10.80% -10.20% -1.70% 2.40% -1.90% -1.30% -6.40% -7.80% -12.50% -2.40% -3.00% -7.20% -6.60% -3.40% -8.20% -0.13%

WORKING RIGS BEFORE & AFTER SB21 December 2012 – April 2013 December 2013 – April 2014

WEEK

DEC 1 2 3 4

JAN 5 6 7 8

FEB 9 10 11 12

MAR

13 14 15 16 17

APR 18 19 20 21 0

Average: 2013 (before SB21) 7.8 2014 (after SB21) 11

Source: Baker Hughes Inc.

Weekly average of North Slope working rigs in December-April, 2003-2014

*Increase Note: FY 2014 is preliminary data, subject to change, based on 11 months of finalized data from monthly production off-take report and June derived from daily run tickets.

Pre-ACES ACES SB 21

Source: Department of Revenue, July 1 8

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

When rigs are drilling new production wells in the fields, the added production can be significant. Ed King, an economist with the state Department of Natural Resources, said in a previous interview that each working drill rig on the North Slope typically completes six new producing wells a year, and each new well can add 800 to 1,000 barrels per day of new production. It’s a rule of thumb, King said, because each drilling situation is different. Also, some drill rigs work on workovers as well as new wells. Drilling and working over wells in the legacy fields can add production relatively quickly, Jepsen said. The uptick in production over the last year, reversing the production decline, illustrates that. What is most important, Jepsen said, is that the bulk of the remaining known undeveloped oil resources of the Slope that are known are actually within the currently producing fields. That is about 4.5 billion barrels out of 5 billion barrels in total of known resources. The companies have also announced new North Slope projects since SB 21 was passed, and those are also significant. Projects announced by ConocoPhillips alone could add 40,000 barrels per day to production by 2018, Jepsen said, although those are subject to final approval by the company’s board in December. This includes the new Drill Site 2S and North East West Sak project in the Kuparuk field and GMT-1 in the National Petroleum Reserve-Alaska. BP is also working on its large Prudhoe Bay west-end development project that could add another 40,000 barrels per day after 2018, the company has said.

2004-05

What have the North Slope producers done since Senate Bill 21 passed the Legislature? They’ve ramped up drilling and ended a 24-year decline in North Slope oil production, that’s what. As recently as last December the state estimated a 4.4 percent decline for this year. That’s now history. The companies have also announced $8.5 billion in new projects that could add more than 100,000 barrels per day in new oil over the next eight years. This is in addition to $5 billion in new projects, mainly the Point Thomson gas project east of Prudhoe Bay and the CD-5 oil project near the Alpine field, that are already underway. But for now — and most important immediately — production from the North Slope fields will result in about the same amount of oil this year as last year. The decline will have essentially stopped, at least for this year. For the fiscal year 2014, production averaged 530,939 barrels per day compared to average production for the previous fiscal year of 531,639 b/d. The state fiscal year runs from July 1 through June 30. Were it not for typical summer maintenance that reduced output by about 40,000 barrels per day in June compared to May, production would have exceeded the prior fiscal year. The figures are subject to adjustment, said Cherie Neinhuis, a petroleum analyst with the state Department of Revenue, but the data indicates the state ended the 2014 fiscal year on June 30 with North Slope output roughly on par with the previous year. This is a significant achievement because the average decline in production has been about 6 percent per year in recent years and was 8 percent between 2012 and 2013, according to the Revenue Department data. A lot of new projects are being announced, but the real action, for now, is in big producing fields, the “legacy” Prudhoe Bay, Kuparuk River and Alpine fields, where the companies have ramped up drilling and “workovers” of wells. All of this has happened since the Legislature passed SB 21 in April 2013. ConocoPhillips and BP, the two major North Slope field operators, have added four drilling rigs to their operations. BP decided to add two rigs before the tax change was made, spokeswoman Dawn Patience said. However ConocoPhillips’ two rigs were added after the tax change, said Scott Jepson, ConocoPhillips’ vice president for external affairs. BP will have two additional rigs working by 2016, Patience said. The best way to add new production, and to sustain it, is to get more rigs drilling wells, said Jepsen. “If you want to see real progress, get more rigs working. New projects will enhance production at the margin but to really sustain production, new oil has to come from the legacy fields and drilling more wells is the best way to achieve that,” Jepsen said. Jepsen said one of the two workover rigs put to work mainly repairing older wells has so far resulted in 3,000 barrels per day of new production. That rig went to work in mid-2013. Production results from the second rig, which was started up this spring, are not yet available because it has been drilling new wells that are not yet hooked up. BP has also increased its well work aimed at stimulating new production by 20 percent this year and has increased its spending on this kind of work by 40 percent, Patience said. The company is doing “rate-enhancement” projects on 500 wells this year, an increase of 100 from last year.

Fiscal year

2003-04

By Tim Bradner Alaska Journal of Commerce

Source: Baker Hughes Inc.

Charts/Nadya Gilmore/AJOC

TOP: This chart compares the number of working rigs on the North Slope by week in the last year under ACES and the first winter under Senate Bill 21. The average over 21 weeks increased from 7.8 under ACES to 11 under SB 21. During the week of Feb. 28, 2014, an all-time record of 17 rigs were working on the Slope. BOTTOM: This chart compares the weekly average for working rigs from 2003 to 2014. Drilling activity dropped sharply after ACES passed and increased in the first winter after it was repealed.

Other companies are at work also. Brooks Range Petroleum, a small independent company, intends to have its small Mustang field in production in 2016 producing 8,000 to 10,000 barrels per day and increasing in 2017 to about 12,000 barrels per day, company officials have said. Caelus Energy, the new owner of the Oooguruk field, plans to develop Nuna, a satellite to the existing field, with preliminary construction beginning this winter. Nuna could produce between 15,000 and

20,000 barrels per day, Caelus has said. Repsol, a major company, is exploring in the Colville River delta area near the Alpine field and has made new oil discoveries. The company is now engaged in evaluating the discoveries and is doing environmental and engineering studies for possible development, although that has not been announced. Tim Bradner can be reached at tim.bradner@alaskajournal.com.

July 13, 2014 • Alaska Journal of Commerce

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July 13, 2014 • Alaska Journal of Commerce

• Page A25

Several new entrants buy into Slope in year after SB 21 By Tim Bradner Alaska Journal of Commerce

New projects are being announced for the North Slope, but there are also new companies taking a stake in the region, too. But this is also a cautionary tale. Just as new companies arrive full of hopes, others are leaving disappointed. Despite the geologic potential for the Slope, costs are high, taxes are high (although SB 21 has helped that a bit), and markets are distant. There’s no guarantee of success. Most recently, Caelus Energy, a small independent, purchased the Alaska holdings of Pioneer Natural Resources, a larger company that has decided to focus on its shale oil opportunities in Texas. While Pioneer’s departure should be a concern, Caelus brings with it a major investor, Apollo, the first private equity firm to acknowledge a role on the North Slope. However, Pioneer’s experience with its small Oooguruk offshore field is telling. Despite substantial investment the company was never able to achieve the production it hoped for. As the Lower 48 shale oil boom took off, Alaska began looking second-rate for Pioneer when compared with opportunities in Texas and other states. However, in the last year Pioneer did begin experimenting with large-scale hydraulic fracturing of its Oooguruk wells, and with very good results. By then, however, the company’s decision to leave had already been made. Caelus is anxious to continue the large-scale fracturing Pioneer started and to develop a new satellite field Pioneer had also started work on at Nuna. In another development, Miller Energy, a small Tennessee independent now active in Cook Inlet through its subsidiary Cook Inlet Energy, has purchased Savant Alaska, which owns a majority stake and is operator of the small Badami oil field east of Prudhoe Bay. This again is a mixed message. Savant’s departure caps the company’s frustrating experience in attempting to boost production at Badami, a field once operated and originally developed by BP. Badami has been challenged by a variety of complex reservoir problems, and was a huge disap-

pointment for BP, which had high hopes. It was equally disappointing for Savant. Miller will now try its hand, bringing its expertise in working with small fields and coaxing more oil out of wells that have had problems. Another new company present on the Slope, through a new investment in Brooks Range Petroleum, is Thyssen Petroleum, another small Texas-based independent. There will be other new investors in Brooks Range as well. The company’s new investors will be buying out the interests in the company of Alaska Venture Capital Group, a consortium of Kansas independents, and Ramshorn Investments, a subsidiary of Nabors Industries. Brooks Range intends to have its small Mustang field in production in 2016 and has plans to pursue similar prospects nearby. Other small independents are getting active on the slope. NordAq Energy, a small Alaska-based company, has acquired state-owned offshore acreage north of the National Petroleum Reserve-Alaska as well as onshore federal leases within the NPR-A, and is working on a long-range exploration plan. Arctic Slope Regional Corp., the regional Native-owned development corporation based in Barrow, is also exploring for itself on state oil and gas leases it has acquired and is in partnership with operating companies on its own lands on the Slope. Yet another development is Hilcorp’s purchase of older producing assets of BP — the small Endicott and NorthStar offshore field — and a 50 percent interest in two other fields, Milne Point and Liberty, the latter of which is undeveloped. This represents another kind of transition for the North Slope That Hilcorp, a large Texasbased independent that is now active in Cook Inlet, is willing to make the jump to a much more challenging operating area, shows again that new companies are willing to come to the Slope. It also signals the kind of transition in the industry that has been played out in Cook Inlet and elsewhere where large companies, in this case BP, shed older, less profitable assets to refocus energies on larger opportunities. In this case, BP says it wants to

Investments announced after Senate Bill 21 ConocoPhillips-operated projects • Drill Site 2S, Kuparuk field (8,000 b/d) • North East West Sak, Kuparuk field (9,000 b/d) • GMT-1, National Petroleum Reserve-Alaska (30,000 b/d) Total: $2 billion Prudhoe Bay projects operated by BP • $3 billion, Prudhoe Bay end-end (40,000 b/d) • $1 billion in-field Prudhoe drilling, projects Total: $4 billion Mustang project, Brooks Range Petroleum (12,000 b/d), $585 million Pending: Nuna development, Cealus Energy (15,000-20,000 b/d), $2 billion Total: $8.585 billion Source: Company press releases, AJOC interviews

concentrate on further developing the large Prudhoe Bay field, where it sees a lot of remaining oil, and on the large gas pipeline and liquefied natural gas project. Some of the highest hopes for new oil are with Repsol, a Spainbased major company that has been exploring on the North Slope since 2011. Repsol has demonstrated that there is a lot of oil on the Slope — almost every exploration well the company has drilled has encountered oil. What Repsol is now studying is whether oil that has been discovered can be commercially developed. Repsol is also in Alaska because of tax reform, the company has said. Although it arrived and drilled wells before SB 21 passed, the company said it made its decision to acquire leases and drill in 2011 ands 2012 because the state was actively working on tax reform and Repsol believed it would ultimately pass, which it did in 2013. The arrival of new players is encouraging, but there are also firms that have arrived and then left. Total, the large Paris-based major company, drilled expensive exploration wells in the NPR-A, but then pulled out after hitting dry holes. Hunt Oil Co., a major Texasbased company, took a large lease exploration position in the NPR-A a few years ago, then looked carefully at what it had acquired and the problems of exploring and developing oil in the region, and left. FEX LLC, a subsidiary of Talisman, a large Canadian independent, drilled exploration wells in the NPR-A, and found oil, but then left. FEX said its discoveries were encouraging but for some other

Photos/File/AJOC

TOP: Hilcorp Energy, a Houston-based independent that has led the resurgance of natural gas in Cook Inlet, spent $1.2 billion to acquire several assets from BP on the North Slope, including the Endicott (seen above), NorthStar, Milne Point and Liberty fields. Hilcorp and BP also agreed to a plan to develop the Liberty field. MIDDLE: Miller Energy, a Tennessee-based independent that owns Cook Inlet Energy, purchased the Badami field from Savant earlier this year. Savant purchased the Badami field from BP but was frustrated in its efforts to boost production. BOTTOM: Caelus Energy, a newly-formed independent based in Texas, purchased the Alaska assets of Pioneer Natural Resources in fall 2013. Caelus acquired the producing Oooguruk field seen here and has plans to develop Nuna, which the company believes can produce 15,000 to 20,000 barrels per day.

company, not it. Those leases have been sold to NordAq Energy, the small independent based in Anchorage. The jury is still out, meanwhile, on Anadarko Petroleum Corp.’s exploration for gas in the southern “foothills” region of the North Slope. The company has partnered with ConocoPhillips in exploring for and developing the Alpine field, where it holds a minority interest, and in making several discoveries in the northeast NPR-A. However, Anadarko’s exploration for oil in the central North Slope area was disappointing after an expensive dry hole was drilled. There has been better luck exploring for gas in the

foothills region, where discoveries have been made. Development of those will await a natural gas pipeline, however. Another highly-publicized exploration venture was Great Bear Petroleum’s program to explore for shale oil in large shale formations in the central North Slope. Great Bear drilled two exploration wells into the shales but has not conducted a production test, which is important in determining whether oil can actually flow out of the tight shale. The company has now refocused is efforts, however, on development of conventional oil and gas which were also found when it drilled the shale oil tests.

Page A26 • July 13, 2014 • Alaska Journal of Commerce

Repealing oil tax reform will produce wide consequences By Tim Bradner Alaska Journal of Commerce

If Alaska voters repeal Senate Bill 21 on Aug. 19, what will happen? Under the state constitution, a law that is repealed goes off the books 30 days after the election results are certified by the lieutenant governor. That means the previous oil tax, known as ACES, would be back on the books in late September. In terms of sheer tax headaches, that will be a nightmare for the Department of Revenue and the tax administrators of companies that pay taxes and explorers who file for tax credit payments. Because ACES required monthly tax returns, oil producers would immediately have to file a tax return for October, oil company officials say. However, would it be the end of the oil boom we’re now seeing? Not immediately, the companies say. But if drilling slows again like it did in 2007, when the Legislature passed the ACES tax, the consequences for the state budget and the economy are sobering. It would also not be good news for the large North Slope gas pipeline and liquefied natural gas export project. Senate Bill 138, which passed the Legislature this year to authorize state participation in the gas pipeline, also changed key parts of the state oil and gas production tax.

Impact on gas pipeline If SB 21 is repealed, sections of the gas pipeline authorization bill will also be affected. It will take time to analyze that and it will definitely require changes to the tax statute by the Legislature. Lawmakers would have to quickly pass a bill solving the problems. Given that a new Legislature in 2015 will have at least some brand new members, quick action is problematic if not doubtful. This could become a major issue in advancing the gas project. Repealing SB 21 will also undercut the gas pipeline in other, more fundamental ways, company and state officials say. The North Slope oil producing business needs to be economically strong to support commercial gas production. That’s because oil and gas are mostly produced out of the same wells and depend on the same North Slope infrastructure. Oil pays for the maintenance of that infrastructure, however, because there simply won’t be enough of a profit margin in the gas to do that. Because production is expected to last for decades (the financing of the gas pipeline depends on that) SB 21’s repeal will endanger the oil business that economically supports gas. That will undermine the economic structure of the gas pipeline. That project faces enough other hurdles like competitors and high costs, and this additional one could be a body blow to the project. Gas revenues simply can’t maintain all the aging North Slope infrastructure. As to how the repeal would immediately affect the gas pipeline effort now underway, the impact on the companies’ and the state’s efforts to market gas to Asia, which is getting underway this year, could

be substantial. The gas marketing teams will be seeking buyers for a 20-year to 30-year supply of gas and asking customers to sign “take-or-pay” contracts for those periods. With the economics of the enterprise, and the price of the LNG, thrown into question, the marketing efforts could be severely compromised. Dan Fauske, CEO of the Alaska Gasline Development Corp., said there is a strong linkage between continued oil production and the gas project. “The industry has consistently stated that a stable and predictable fiscal regime is central to making the long-term transportation commitments necessary to finance the construction of a North Slope gas pipeline. To the extent that a repeal of SB 21 puts Alaska’s oil tax structure back into question, I believe it will also alter the economics of the gasline, creating the real potential for delaying our progress,” Fauske said, adding that these were his personal opinions. The consequences for the state budget are equally severe. North Slope oil producers have now stopped the decline in oil production, at least for this year. For years the decline rate was about 6 percent. In fiscal year 2013 it was 8 percent.

Budget scenarios If the historical 6 percent decline rate were to resume, the state’s billion-dollar-plus annual deficits would continue unless there were immediate and severe budget cuts. Under that scenario, the state will drain its existing cash reserves except for the Permanent Fund by 2020, Dr. Scott Goldsmith, senior economist at the University of Alaska’s Institute of Social and Economic Research, has calculated. ISER publishes an annual report on the state fiscal gap, usually in December, authored by Goldsmith. Previous reports have estimated that state cash reserves will be exhausted by 2024 given the historic 6 percent decline and only very modest budget growth of 2 percent per year in state funds. Last spring, the Legislature transferred $3 billion from state cash reserves to the public employees’ pension funds, which means the financial cushion is less by that amount. The effect is to accelerate the exhaustion of reserves by four years to 2020, Goldsmith has calculated. If that were to occur, the state Legislature would have to take drastic action in cutting budgets and tapping Permanent Fund income to help pay for the budget (unlike the principle of the Permanent Fund, the Fund’s income can be appropriated by the Legislature). Taxes on citizens, like a state income tax and/or sales tax, may also be needed. With Permanent Fund income used to pay for public services, the citizen dividend would be sharply reduced or ended. Goldsmith has made calculations for more positive scenarios, however. Budget deficits would remain if the production decline were just halted, but if production were increased by only 1 percent per year, the deficit would be eliminated by 2023, although state cash reserves would still be emptied. If production were increased by 2 percent or 3 percent per year, a

Top Photo/Courtesy/Office of Gov. Sean Parnell • Middle Photo/Michael Dinneen/Journal file • Bottom Photo/Courtesy/ExxonMobil

TOP: Gov. Sean Parnell signs Senate Bill 138 in Fairbanks in May. The bill authorizes the state to take a 25 percent ownership in a large natural gas pipeline project along with the major North Slope producers and pipeline company TransCanada. MIDDLE: From left to right, Ted Westerman of ConocoPhillips, Steve Butt of ExxonMobil and Dale Burnworth of BP enjoy a light moment during a photo shoot Jan. 8 at the Petroleum Club in Anchorage. The three are the lead actors for the proposed natural gas pipeline from the Slope to Nikiski, a project that could be derailed if Senate Bill 21 is repealed. BOTTOM: The Point Thomson field is seen in this aerial photo. A $4 billion project by ExxonMobil, Point Thomson will play a crucial role in the eventual natural gas pipeline.

healthy cash reserve, about $7 billion, would remain in 2023. These estimates still assume a modest budget growth of 2 percent yearly, which may be challenging given normal population growth and inflation, Goldsmith has said. Two other immediate consequences of a repeal are that a special exploration tax credits for exploring in “Middle Earth,” the large unexplored sedimentary basins of Interior and rural Alaska, will be gone. Those were a part of SB 21. Doyon Ltd. in Interior Alaska, Aht-

na Inc. in the Copper River region, and NANA Regional Corp. in northwest Alaska, are all planning exploration in their regions aimed at securing local sources of energy. The repeal of the new tax will likely end those efforts, the corporations have said. Secondly, a special tax credit to help oil service companies relocate or build new facilities and equipment in Alaska will be gone. Under SB 21 service companies can take a credit for up to 10 percent of investments in Alaska facilities against their corporate income tax.

Will SB 21’s repeal endanger the renaissance in oil now underway on the slope? It probably will. The oil companies themselves are reluctant to predict what will happen if the old tax law, ACES, comes back into effect. The new drill rigs hired in the last year won’t immediately shut down, and some new projects announced will likely continue but on a more drawnout schedule, the companies say. But the bloom will definitely be off the boom, and the decline in production will likely return.

July 13, 2014 • Alaska Journal of Commerce

• Page A27

Vets, service providers discuss challenges of civilian life By Molly Dischner Alaska Journal of Commerce

A roundtable discussion between Sen. Mark Begich and several representatives of veterans’ organizations and service providers focused largely on the need for better communication about benefits and more streamlined services. Veterans also talked about proposed changes to the program meant to help prepare military members for civilian life. Begich held the July 2 roundtable at Catholic Social Services in Anchorage to better gauge how Alaska’s veterans are doing, and what is needed, particularly for the youngest veterans coming back from Iraq and Afghanistan. “We must address the unique needs of this current generation of veterans, particularly during their transition to civilian life,” Begich said. “When I look at the needs of these veterans, it’s not just providing individuals with access to necessary care and services, but also providing their families with the support they need. “We have far more service members with families today and like any family they are struggling with childcare costs and family needs — while also trying to successfully transition to civilian life. There are things we can — and must — do to support these veterans and their families and that is what today’s event was all about.” Stephanie Smithson, program director for Homeless Family Services at Catholic Social Services, said one of the biggest issues is making sure veterans know about the available benefits and how to access them. Other participants agreed. Jennifer Baker, a military spouse who works with Hope For Heroes, said her organization encounters a lot of

veterans who need help just covering basic expenses, like buying food and paying utility bills. “They don’t know any of the benefits they can receive,” she said. Eric Warner, a counselor at the Vets Center, said the VA is supposed to have peer navigators to help veterans navigate the system, but that he hasn’t been able to figure out who holds those three positions at Joint Base Elmendorf-Richardson. There is a program meant to help address the transition from military service to civilian life — the Transition Assistance Program, or TAP. TAP includes an employment workshop and other information meant to help service members navigate their benefits and the civilian world. But Veteran Bryan Box, president of the University of Alaska Anchorage Student Veterans Association, said that it doesn’t always work. Sometimes, it just “vomits information at them,” and departing service members can’t retain enough of it to be useful. Some soldiers are trying to take TAP while still deployed, making it particularly difficult to focus on the new information, said UAA Military and Veterans Assistant Nichole Grunwald, who is also a veteran. Warner added that while it’s a requirement that 100 percent of troops receive outgoing counsel, that doesn’t happen in practice. One audience member, however, said that part of the issue is that different supervisors have different views on TAP. His enabled him to go for nearly a decade before he left the service. Other supervisors, however, don’t help military members make time for the course. TAP was recently revised after Congress directed the Department of Defense to do so, but those re-

Photo/Molly Dischner/AJOC

Alaska U.S. Sen. Mark Begich hosts a roundtable to discuss veterans’ issues July 2 at Catholic Social Services in Anchorage. The topics included better communication of benefits to veterans, education aid, transitioning to civilian life and combating homelessness.

visions haven’t necessarily solved all of its problems. Begich said he would ask the DOD whether the revisions were suggested internally, or veterans were consulted to find out what information and structure would have helped them. Participants also talked about some of the issues facing veterans, such as homelessness, finding jobs, education and mental health. Begich asked the participants if it would be helpful if education benefits were easier to use outside of public colleges. Most agreed, and Warner said that when institutions have different timelines than public colleges, it can be difficult to make the benefits work out, like at Northern Industrial Training, which offers a shorter program but is more expensive during the time it runs. Roundtable participants also talked about the growing number

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of homeless veterans. “That is becoming a complicated problem,” Begich said. Warner said that the criteria for housing assistance can be problematic. Some programs consider veterans homeless if they are “couchsurfing.” Others only consider them homeless if they are living outside, in a camp. Warner said at times he’s had to recommend that individuals stop staying with friends and move outdoors so they can get help. Smithson said that couchsurfing is just considered at an “imminent risk” for homelessness, and not truly homeless. Warner said that mental health issues are often a component of other problems veterans face, but

it’s difficult to address them until a vet has a roof over his or her head. Baker said that sometimes military members return straight from a deployment to home life, and families aren’t necessarily prepared to help the returning service member cope. When her husband returned, she didn’t receive any information about what his transition might be like, she said. Baker said there’s also a stigma against Post Traumatic Stress Disorder, or PTSD, that can make it difficult for veterans to get a job or adjust to family life. “I think a lot of that goes back to the mental health issues,” she said. Molly Dischner can be reached at molly.dischner@alaskajournal.com.

Providing project management professionals for major projects throughout Alaska and the world.

Page A28 • July 13, 2014 • Alaska Journal of Commerce

Born in spill planning, uses for ShoreZone tool expanding

By Molly Dischner Alaska Journal of Commerce

A program originally brought to Alaska to support oil spill planning and response efforts in Cook Inlet has since expanded to most of the state with uses from coastal monitoring to art and education. The coastal mapping endeavor ShoreZone’s Alaska debut was as a Cook Inlet Regional Citizens Advisory Council pilot project in 2001. Now, about 80 percent of Alaska’s coastline is mapped including Southeast Alaska and the North Slope. ShoreZone provides public ac-

cess to a coastal map that includes several elements: high-resolution photos, videos, and data on the biology and geomorphology of the coast. “Having the biology and the geology together is a robust data set,” said ShoreZone’s Darren Stewart, who works for The Nature Conservancy as a coordinator among the various partners. In addition to oil and gas uses, the database is valuable for Coast Guard search and rescue operations, researchers doing reconnaissance and selecting sites, marine debris cleanup efforts, and recreation planning such as planning kayak trips and looking for safe landing spots for boats, Stewart said. “Being able to see an area before you get there saves a lot of time and money and resources,” Stewart said. This summer, the National Marine Fisheries Service is funding the next step in mapping Alaska’s coast — about 2,500 miles along the Yukon-Kuskokwim Delta shoreline from Cape Newenham to Emmonak,

Screen shot/AJOC

This screen shot of the ShoreZone mapping tool shows the various layers such as fish populations, currents and realtime sensors that can be viewed for nearly 80 percent of the Alaska coast. About 2,500 more miles along the YukonKuskokwim Delta will be mapped this summer.

including Nunivak Island. That work will be done in two surveys in July and August, and cost about $300,000. NMFS is the primary funder this summer, but the Yukon Delta National Wildlife Refuge will provide various services like fuel drops, lodging and other logistics support, Stewart said. A private contractor, Coastal and Ocean Resources Inc., or CORI, collects the data that feeds into the maps. A biologist and a geomorphologist will ride in a helicopter along the coast, taking video and shooting still images, and narrating along the way.

Generally, the team will follow the same standardized protocol that has been used throughout the state — including doing the work when there are the lowest tides and the most light. “They want the entire coastline from the lowest of the low waterline to the supertidal zone,” Stewart said. In some places, additional information is collected based on interest — for instance, a baseline hydrocarbon study was done on the North Slope. Later on, mappers will listen to the narration and use the imagery to create maps in units. That can take several months, and depends on funding, Stewart said. Eventually, the database that’s built allows for queries about a variety of things — where logs are likely accumulate, whether a stretch of coast has pebble or boulders or a sandy beach, and the habitat there, said CORI’s John Harper, who has been involved with the project since it started in British Columbia. CORI has done all but one of the surveys in Alaska, according to Stewart, and funding has come from a variety of partners — about 30 to 40 organizations have been involved at one time or another. “It’s very cool that we’ve had this array of funding,” Harper said.

Rooted in spill response and planning ShoreZone has its roots in oil spill planning — the program started in British Columbia for that purpose, and first came to Alaska for the same. Cook Inlet Regional Citizens Advisory Council Director of Science and Research Sue Saupe said several organizations recognized the need for more information about Alaska’s coast after the Exxon Valdez oil spill. In 2001, the Cook Inlet advisory council, or CIRCAC, decided to see if ShoreZone could fill that need and funded the first pilot project. “We wanted a better inventory of all the coastlines in Cook Inlet,” she said. The early goal was to provide habitat information and imagery that could be used in emergency situations.

The more information that is available about the coast, the easier it is to plan for a spill and cleanup, and minimize the impacts, because different habitats and landscape types respond differently to various treatments, she said. For instance — oil will linger longer on a slat marsh than an exposed stretch of rocks. ShoreZone provided the information that CIRCAC wanted, so after the pilot, the group started approaching other potential partners around the state to get involved. Within three years, all of Cook Inlet, the outer Kenai Peninsula coast, the Katmai region and northern portion of Kodiak were mapped. “I think the imagery is what really sparked people’s interest in making that happen,” Saupe said. Eventually, the project expanded to Southeast Alaska, and then Bristol Bay and most recently the North Slope in 2012 and St. Lawrence Island in 2013, Stewart said. The uses within the oil and gas realm are varied, Saupe said. “This imagery has so much value, I think, in oil spill planning and response,” Saupe said. Saupe said the program helps an oil spill response team on several levels — operations, planning and logistics. During the 2012 Kulluk incident when the Shell drill rig separated from its tow and went aground in a storm near Kodiak, Harper said the response team relied on ShoreZone to figure out where to land, where to store booms and how to prepare for grounding and minimizing damages.

Flying the coast Today, the ShoreZone website is accessible to anyone with a computer and fast enough internet connection. Log on, and you can fly all the segments of Alaska’s coast that are mapped. But it didn’t start that way. Early on, the ShoreZone partners had to figure out how to make the data available, as the database deliverable was simply a disc of information, imagery and maps, Saupe said. In 2004, the National Marine See ShoreZone, Page A29

July 13, 2014 • Alaska Journal of Commerce

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Fisheries Service agreed to host the data and make sure it was seamless throughout the various regions of the data, and in 2005 the agency released the first integrated website, making all the data collected so far available to the public. The website is always being improved, Saupe said. “It’s just a constant effort, constant effort by NOAA to keep upgrading, take advantage of new tools,” she said. More recently, the video displayed on the website went from one second capture to full streaming video for certain portions of the database. Saupe said the partnership is always looking for ways to improve access and use of ShoreZone in oil spill planning and response, and in other capacities. One of the efforts has been to create offline tools, so that responders in areas with limited internet access can still use the ShoreZone information. An early iteration of that effort is available by borrowing a hard drive and pulling all the data from it, but that’s a cumbersome process. Another version is in the works, which would allow users to pull the data right from the internet onto a local drive. For now, however, Saupe said the website remains the best way to access the data. CIRCAC has also worked with the Alaska Oceans Observing System, or AOOS, on a program that integrates ShoreZone data with

other information responders might want, Saupe said. The Cook Inlet Response Tool includes more than 100 data layers, such as ShoreZone habitat information and video, realtime weather sensors and webcams, oil persistence, and marine mammal information. Saupe said it was a “powerful way to look at information.” AOOS also has ShoreZone data merged with additional databases for other regions of the state, including the Gulf of Alaska, Prince William Sound and the Arctic. “The goal was to take this ShoreZone imagery the next step,” Saupe said. CIRT also includes Geographic Response Strategies, which are pre-planned, site-specific protection measures for anadramous streams, archeological sites and other places considered fragile or in need of protection. Those were commissioned by Alaska’s Department of Environmental Conservation, and are available throughout the state, although they — like ShoreZone — began in Cook Inlet. Other patches remain to be mapped, including Norton Sound and parts of the Aleutian Islands, in part because it’s difficult to find funding for those areas. Other gaps in the data are the Southwest Alaska Peninsula, including King Cove and Sand Point, which are imaged but not mapped, Glacier Bay, the Pribilof Islands and Unimak Pass. The western Aleutians will be particularly difficult, and may have

to be done by boat, Stewart said. “Even though its logistically challenging space, getting the Aleutians done is really important,” Stewart said. Harper said that Unimak Pass is a priority because of the shipping traffic in the region. “Even just regular cargo ships, they carry huge amounts of oil onboard,” Harper said. For now, there’s no set plan for updating the information as the coastline changes, although the mapping protocol relies on small homogenous units, so updates could be done piece-bypiece if necessary. Saupe said that the Cook Inlet was already reflown in 2009, as technology improved and the original imagery became outdated. The imagery statewide is also useful for gauging change, she said. “That imagery has become a very important data source in and of itself,” she said.

Beyond oil and gas The survey process itself also leads to other interesting discoveries, Saupe said. For instance, during the Gulf of Alaska mapping, researchers discovered that macrocystis kelp beds previously thought not to extend past Icy Strait are actually found in the western Gulf of Alaska. After a small bed in Kenai and a larger bed in Kodiak were noted, CIRCAC funded dive studies to learn more about the habitat, Saupe said, and researchers have looked through historical records to try to

Photo/Courtesy/ShoreZone

This North Slope aerial photo was taken for the ShoreZone mapping tool. The tool was originally for oil spill response but has since expanded into uses that even include planning kayak trips and the website has been upgraded to facilitate better access to the data.

learn more about its range, and if this is a change. CIRCAC has also used the habitat information from ShoreZone to develop further studies of salt marshes in Cook Inlet, she said. ShoreZone has also been used to develop two art exhibits, which pair large prints of the photos taken during the survey with scientific information about each area. The exhibits looked at the Gulf of Alaska and the Arctic, and have been installed in various places throughout the state, including the State Museum in Juneau. Communities also use ShoreZone for coastal planning, Stewart said. “Just to get a good bird’s eye view of what’s there on the coast,” he said. ShoreZone is also a tool for education, Saupe said, both in schools and communities. Saupe demonstrated the web-

site in Kodiak. She had a young girl spot the place where she had taken a long beach walk, and a woman point out important archaeological sites around the island. A U.S. Coast Guard member responsible for pulling information when preparing for rescues said it would help with that work in the future. “Right there, you just had all these different levels of interest,” Saupe said. The website is also being used in some schools, both to learn about the coast and as the basis for other projects. One projects has students using the imagery to collect history and information about the villages and surrounding areas from local elders, Saupe said. Molly Dischner can be reached at molly.dischner@alaskajournal.com.

A NO VOTE ON BALLOT MEASURE 1 KEEPS SB 21 IN PLACE

New projects such as Drill Site 2S at Kuparuk, GMT 1 in the NPRA and 1H NEWS represent about

$2 billion in investments. Since the passage of SB 21, ConocoPhillips has added two drilling rigs at Kuparuk,

a two-thirds increase in rig count.

More than 1,000

new positions supporting ConocoPhillips’ 2014 winter Slope activities.

The planned addition of an estimated

40,000 bopd

(combined monthly peak rate) in 2018

from these new projects.

The More Alaska Production Act is already resulting in new investments that will increase production. Alaska’s new business climate should lead to increased job and business opportunities for Alaskans, more oil production, more state revenue and increased contributions to the Permanent Fund. Paid for by Vote No on 1, Anchorage, AK 99509. Bob Berto, Rick Boyles, Leslie Hajdukovich, Linda Leary and Rick Mystrom, co-chairs, approved this message. Top contributors are BP, Anchorage, Alaska, ConocoPhillips, Anchorage, Alaska, and ExxonMobil, Anchorage, Alaska.

Page A30 • July 13, 2014 • Alaska Journal of Commerce

Nearing 30 years, state power program keeps going and going By Elwood Brehmer Alaska Journal of Commerce

About to turn 30 years old, a state power assistance program is more important than ever to life in rural Alaska. The Power Cost Equalization Program, known as PCE, helps mitigate the financial burden of electric bills that

can be downright exorbitant with just modest power use in some parts of the state. Designed to bring power costs for rural residents in line with the rates their urban counterparts pay, Alaska Village Electric Cooperative President and CEO Meera Kohler said PCE takes what is often a rate of 60 cents per kilowatt-hour or more

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and reduces it to a more manageable rate of about 20 cents per kilowatt-hour, or kwh. “PCE is probably the number one issue in terms of importance to us,” Kohler said. Rising diesel prices — the fuel behind power generation in almost all PCE participating communities — particularly in the last five years, has pushed the program to provide roughly $40 million in annual assistance of late to the 81,000 Alaskans that lived in the 190 communities eligible in fiscal year 2013, according to data provided by the Alaska Energy Authority, which administers the program. Eligible utilities turn in monthly reports to the authority and are then reimbursed for the qualifying power their customers used. The base PCE rate is the weighted average of Railbelt and Juneau utility rates. Because Chugach Electric Association in Anchorage provides more than half of the residential sales used to calculate the base rate, its rate accounts for more than half of the equation. That rate is expected to be 14.8 cents per kwh for state fiscal year 2015, up 0.8 cents from 2014, and is very near current Chugach rates. AEA Executive Director Sara Fisher-Goad told the author-

ity’s board June 26 that not all of Golden Valley Electric Association’s residential sales, at by far the highest rates among Railbelt utilites, factor in to the base PCE rate. “Although Golden Valley has the higher rates, the percentage of their impact to those rates is less because it’s just the City of Fairbanks that is included, not the entire (Fairbanks) North Star Borough,” she said. As a result, sales to about

35,000 residents are calculated into the formula, not 90,000. Golden Valley was calculated into the latest PCE base with a rate of 23 cents per kwh. The maximum PCE rate for each community is equal to 95 percent of the local utility’s operating costs, up to $1 per kwh, minus the base rate. For this fiscal year, the PCE assistance cap is 80 cents per kwh. The most recent average cost after assistance is 21 cents per kwh,

according to AEA. Fisher-Goad said only utilities participating in the program at its inception in October 1984 are eligible for assistance today. Any utility with costs below the urban average, primarily those utilizing natural gas or hydropower, is not eligible. That includes the “Four Dam Pool” communities of Ketchikan, Wrangell, Petersburg, Kodiak and the Copper River valley. To qualifying utilities, PCE offsets about 30 percent of all of the power they sell, according to AEA. Assistance is offered to residential customers, with a cap of 500 kilowatt hours per month, and community facilities, with a cap of 70 kilowatt hours per resident per month. The local qualifying local services include sewer and water, community buildings and public lighting. Without PCE, average rural customers would see their bills triple from about $100 per month to $300 per month, Kohler said. That is particularly significant when the customers often have limited incomes that go almost exclusively towards energy bills, food and clothing, she said. “Most of the protein on their tables comes from subsistence (harvest) so thank goodness for See Program, Page A31

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July 13, 2014 • Alaska Journal of Commerce

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that,” Kohler said. Commercial customers, eligible for assistance in the early years of the program, no longer qualify; neither do state facilities. Kohler said the local facility assistance is essential to keeping some rural towns alive. “The cities are able to operate their facilities because their cost of power is a third of what it would otherwise be and if PCE were to go away I think there would be a lot of communities that would basically close their doors,” Kohler said. “The local governments would not be able to pay the electric bill. They’re already struggling with the heating bill.” As it stands, a lot of rural communities have cut all fulltime employees to save money, she said. Along with eliminating commercial customers, PCE has seen its use cap lowered from 700 kwh per month to the current 500 kwh, a reduction that cut program costs by 40 percent, but also put a seasonal strain on some customers, Kohler said. A vast majority of rural residents don’t hit the 500 kwh cap during summer, she said, but exceed it in winter. Kohler said she has supported bills that have stalled in the Legislature in recent years that would raise the cap to 600 kwh per month. “I would very much support PCE going to support commercial customers, especially if the limit is the same as residential and for some small businesses it might make a very material difference,” she said. “But the political realities — you choose your battles and my battle is to preserve PCE for residential customers.” Fisher-Goad said ways to improve the program are always being investigated, but in re-

Buccaneer:

cent years it has been healthy and self-sustaining. The Power Cost Equalization Endowment Fund was capitalized in 2000 with Constitutional Budget Reserve money and sale proceeds from the Four Dam Pool projects, she said. The fund has about $943 million in it today and was supplemented in 2006 and 2011 with capital appropriations totaling $582 million. Managed by the Department of Revenue, AEA is authorized to take up to 7 percent of its three-year market average from the endowment to pay for the program. Fisher-Goad said the authority uses about $300,000 to cover administrative costs and another “very small” amount to train utility operators on how to comply with the program to achieve maximum efficiency every year. AEA anticipates investments by the Revenue Department will be relied upon as the sole funding source for the endowment for the foreseeable future, Fisher-Goad said. Revenue has a legislative mandate to achieve 7 percent returns on the endowment in order to keep it solvent. Along with the legislation to raise the kilowatt-hour ceiling, legislation to eliminate the return mandate and cap AEA’s draw at 5 percent stalled last session. While the department has done “a fabulous job on meeting the investment mandate,” and then some the last several years as Fisher-Goad said, Deputy Revenue Commissioner Mike Pawlowski said discussions came up in the department during the last session about how to reduce the stress of hitting such a high return. “PCE is one of the only funds that Revenue manages that has statutory direction to achieve

Continued from Page A11

The brief July 7 hearing was the third meeting of the parties before the AOGCC since early April. All the while, the commission has encouraged the parties to negotiate a settlement without commission intervention. The Alaska Department of Natural Resources, which oversees the Mental Health Trust Authority and receives royalties through the Division of Oil and Gas, has also been a part of negotiations that have been close to reaching an agreement several times, involved parties have said. Schutt said negotiations have not taken place in recent weeks. Buccaneer filed for bankruptcy a day before it was to set up an escrow account at an Alaska bank to hold the revenue from Kenai Loop gas sales until a resolution could be reached per an earlier AOGCC order. As of mid-June that account had not been established as Buccaneer asked for clarifications to details in the commission order. On July 7, Schutt said he did

not know if the account had been set up. Buccaneer has chosen to remain silent about its court matters and the commission said it cannot comment on an ongoing case. CIRI filed a motion for relief from the automatic stay in the South Texas court July 1, stating that Buccaneer’s finances won’t be resolved until the AOGCC case is. “A determination of the parties’ rights is essential to (Buccaneer’s) efforts to sell their assets, as well as make a distribution of the escrowed funds possible,” the motion states. Schutt said it is unclear when the matter will be ultimately be settled as it will likely take 30 to 60 days after the stay is lifted before the AOGCC takes it up again. “There’s a lot of balls in the air and it’s very complex,” he said. A hearing on CIRI’s motion is set for Aug. 5, 12 p.m., Alaska Daylight Time, at the federal courthouse in Houston, Texas. Elwood Brehmer can be reached at elwood.brehmer@alaskajournal.com.

that type of a rate of return and internally we’ve raised that there are risks that come along with chasing that type of return,” Pawlowski said. Regardless of how the program may change in the future, Kohler said she wants all Alaskans to understand it is not

an entitlement program, particularly during years of leaner state budgets. “(PCE) makes a very, very modest amount of electricity affordable for Alaskans who want to live in the places they’ve lived for thousands and thousands of years,” she said. “I feel that all

the wealth of Alaska has come from rural Alaska and the very least we can do is sustain rural Alaska because in my opinion, that’s what makes Alaska, Alaska — rural Alaska.” Elwood Brehmer can be reached at elwood.brehmer@alaskajournal.com.

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Page A32 • July 13, 2014 • Alaska Journal of Commerce

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July 13, 2014 â&#x20AC;˘ Vol. 38, No. 28 â&#x20AC;˘ www.alaskajournal.com

Slope Support Sector Surges Business picks up from Interior to Peninsula

Photo/Michael Dinneen/For the Journal

Little Red Services owner Doug Smith stands next to a newly created custom truck bound for the North Slope. Little Red Services builds specialized tank trucks to help oil field operators with well stimulation jobs. The trucks cost $1.5 million to $2 million each and were previously built in Alberta but are now being built here thanks to a tax credit in Senate Bill 21.

Page B2 • July 13, 2014 • Alaska Journal of Commerce

Builders Choice busy with new housing units for Slope By Tim Bradner Alaska Journal of Commerce

You may not think of Builders Choice Inc. as an oil services company, but it is, and the Anchorage-based modular housing construction company has a big stake in the future prosperity of the state’s petroleum industry. It’s for that reason the company has a large red-and-white “Vote No on 1” sign at the entrance to its plant on 104th Street in South Anchorage, said Mark Larson, who owns Builders Choice, or BCI, with his wife, Sandi. Two-thirds of BCI’s revenues come from projects directly related to the oil and gas industry, Larson said. The company hopes to diversify this year with a new business in lumber and building-related hardware, but for now, $40 million of BCI’s annual earnings of about $60 million are linked to the industry, Larson said. The company has about 200 full-time employees “Passage of Senate Bill 21, the oil tax reform bill, has created an enthusiasm in the industry to keep working here, and when new projects are developed the industry’s workers need housing,” he said. BCI operates a 50,000-square foot modular housing construction facility in south Anchorage that builds housing units mainly for industrial and commercial customers, along with a truss plant in the Matanuska-Susitna Borough that serves homebuilders. The Larsons have steadily built their business since taking over the company in 2001. Revenues have multiplied six-fold since then and much of that was due to the Larsons refocusing the company away from building modular units for residential construction and toward commercial and industrial clients such as the oil and gas industry. Today, the company’s roster of customers reads like a “who’s who” list in the natural resource industries, but new hotels and other large buildings, particularly in remote areas, have been important for BCI. The new Barrow hotel built for Arctic Slope Regional Corp., which opened last spring, is one recent commercial project. The building, which replaced an older ASRC-owned hotel that was damaged by fire, was built in a jointventure with SKW Eskimos, Inc. A new commercial store for Hooper Bay along with teacher housing was built when a large fire destroyed existing housing in that Bering Sea community, and BCI also built units for a new school at Kalskag, a village in the Yukon-Kuskokwim region near Bethel. Most recently, the company built the modular operations and housing facility for the Point Thomson project east of Prudhoe Bay, and previously built operations facilities for the Eni Oil and Gas Nikaitchuq field as well as facilities for BP and two large Deadhorse facilities built to house service company work-

Photos/Michael Dinneen/For the Journal

TOP: Builders Choice owner Mark Larson is seen at the company fabrication shop in South Anchorage. Larson said about two-thirds of his company’s $60 million in annual revenue is linked to the oil and gas industry. MIDDLE: Finish carpenter Josh Kushner works on trimming out a sink area. Kushner is one of about 200 full-time employees working for the company. BOTTOM: Lead flooring worker Joshua Valpiando applies adhesive to the flooring of a module.

ers, the 426-bed Aurora Hotel and 190-bed Brooks Camp. BCI also built the camps and operations centers for the Greens Creek and Kensington mines near Juneau, which are both producing. Other previous commercial customers have included Alyeska Resort near Girdwood, for an employee housing facility, and modular units that were used to construct the Denali Canyon Lodge, built for Westmark Hotels. BCI builds its housing units in a controlled environment in its Anchorage plant which ensures better quality control compared with the traditional approach of “stick-built” structures where workers and materials are more exposed to weather and temperature variations, Larson said. The units are “stackable,” meaning that two- and threestory complexes are quite feasible. The modules are trucked to the North Slope 80 percent to 90 percent complete including the inside electrical, plumbing and even furnishings. The structures can be built, moved to the North Slope and put in use quickly. “With the Brooks Camp phase one (at Deadhorse), we began fabricating in Anchorage in August and had the units moved to the Slope and occupied in December,” Larson said. The schedule was possible

because site work at Deadhorse was being done while the modules were being built in Anchorage. That allowed the units to be hooked up quickly when they were moved to the Slope. Larson feels confident he can compete with Lower 48 and Canadian module fabricators because the costs of mov-

ing completed units, which are bulky, outweigh the lower costs of building outside Alaska. He knows this because BCI also operates a small modular construction plant in South Dakota that is serving the booming shale oil industry in North Dakota. Labor and other costs are 25 percent lower in South Dakota

than Anchorage but the location advantage is more important. There have been times when the company’s Alaska plants were at maximum use and some units had to be built in South Dakota and moved north but that did raise costs, Larson said. Tim Bradner can be reached at tim.bradner@alaskajournal.com.

July 13, 2014 • Alaska Journal of Commerce

• Page B3

Businesses young and old see positive effects from SB 21 By Kaylee Osowski Morris News Service-Alaska/ Peninsula Clarion

KENAI — Born in 2008 under the ACES oil tax structure, a company dealing in oilfield equipment experienced a growth spurt during the past year. MagTec Alaska LLC’s President Ryan Peterkin credits the company’s growth to the 2013 implementation of Senate Bill 21 following the repeal of the previous regime known as Alaska’s Clear and Equitable Share, or ACES. “In the short time that SB21 has been in place … we have experienced a steady increase in opportunities in the oil and gas development,” Peterkin wrote in an email. MagTec provides oilfield and construction equipment including heaters, generators, pumps, tanks, pickups, tractors, loaders, air compressors, boilers, mobile offices and break shacks among other things. The company also provides catering and lodging services. Since early 2013, Peterkin said MagTec has seen an increase of 30 percent to 40 percent in revenues and has hired more than 40 new employees to reach more than 100 in total. Those new positions have included mechanics, expediting and safety personnel and man camp personnel such as housekeepers and cooks. Peterkin said MagTec provides accommodations at five locations on the west side of Cook Inlet, Prudhoe Bay and the Kenai Peninsula. “We’ve doubled the camps since last year,” he said. Peterkin said growth at MagTec started even before SB 21 was adopted. “When the campaign for SB 21 was getting great support … so probably 2012, July, the oil companies started making commitments to do work and started planning work, if tax relief was given to them in 2013,” Peterkin

said. “So our ramp up actually started in 2012 due to that SB 21 coming into effect.” He said when the company

services to the oil and gas industry for decades, has more than doubled its Kenai-based equipment and employees dur-

ciding if it’s right or wrong. “We don’t need to see more change, we need stability so existing companies stick around

We don’t need to see more change; we need stability so existing companies stick around and new ones are encouraged to invest in Alaska. — Ryan Peterkin, President, MagTec Alaska

started just after ACES was put into place, MagTec saw drilling and activities and investments by oil and gas companies come to a near stop. In 2007, MagTec committed to a $250,000 annual property lease for 27 years in the North Slope Borough. “We had projects that were planned that got canceled because of the ACES tax, which was supporting our investment up there,” Peterkin said. “We had a project that canceled that we were moving up on the support for that almost bankrupted me. I mean there’s no two ways about it, because of the ACES tax.” He said MagTec invested $5 million to $6 million and had to renegotiate terms with banks to get released. “That crippled everything,” Peterkin said. “I mean it was like a ghost town in Prudhoe Bay right after the ACES tax. I mean everything stopped.” Business growth was very slow until mid-2012. In late 2012, when oil companies were confident relief was on the way, the opportunities that came were “unbelievable” he said. The company focuses its business on both the North Slope and on the Kenai Peninsula. Peterkin said about 85 percent of revenues come from North Slope clients and the rest is from the Peninsula. Peterkin said what he knows for sure is that Alaskans need to give SB 21 a chance to work before de-

ing the past two years, said Jim Doyle, president and part-owner of Weaver Brothers. “I was here in the start, in the

and new ones are encouraged to invest in Alaska,” he said. Weaver Brothers Inc., a trucking company that has provided

‘50s when they started Swanson River, and it’s never been as busy as on the Peninsula as it is right now,” Doyle said. Weaver Brothers came to Alaska in the 1950s. In 1978, the Doyle family bought the business and to this day operates terminals out of Kenai, Anchorage and Fairbanks. The Kenai terminal covers the Peninsula from Swanson River to Homer and the Beluga, Trading Bay and Drift River areas on the west side of Cook Inlet. Doyle said Weaver Brothers employs more than 50 people out of its See MagTec, Page B7

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SALT LAKE CITY (AP) — The federal agency tasked with approving mines and drills on public lands is handicapping development in Utah and across the U.S. because it takes too long to review oil and gas proposals, a federal report finds. In Utah, the Bureau of Land Management’s Vernal office is now handling applications amounting to half the yearly federal workload, reports the Department of the Interior’s Inspector General. Reviewing such applications has not been high on the agency’s to-do list, and supervisors don’t track progress on the applications, the report finds. But it also acknowledges that the agency grapples with outdated resources and too little staff. In Vernal, it concedes, a high cost of living means the agency has difficulty attracting workers. Agency staffers could streamline the process by digitizing and assigning the applications to specific managers, the review finds. “Specifically,” the report says, “the federal government and Indian lands mineral owners risk losing royalties from delayed oil and gas production.” Such delays for about 1,000 proposals on the federal land covering 90 percent of Uintah County chase away industry, Commissioner Mike Mckee tells the Deseret News. “I will take my hat off to the Vernal office because I believe they are doing a good job, as much as they can, but with that said, there has been a backlog for a number of years,” McKee said. Nationally, oil and gas production on federal and Indian lands has brought in $3 billion since fiscal year 2011. Utah comes behind Wyoming and New Mexico for its share of drilling on federal lands. In 2012, reviewing the proposed drills took 7½ months on average, the report finds. Companies applying for drills and other operations cause some delays, it found, but others stem from agency offices’ lack of oversight, accountability and staffing. It’s not the first review to point to a backlog: The Office of Inspector General in 2003 found long delays. In August of 2013, the General Accountability Office criticized the agency for long processing times that persisted. The BLM at that time said it would implement a list of recommendations by the end of this year. Kathleen Sgamma, vice president of governmental affairs for Western Energy Alliance, a group of independent oil and gas producers, said she welcomes the recommendations but says hefty constraints likely mean that very little will change. The alliance, she said, supports a bipartisan bill that would funnel more money to offices handling more applications. The report stressed a need to continue federal funding for a halfdozen temporary offices around the country, including one in Vernal. The BLM counters that if industry bore more of the cost for processing the applications to drill, the agency’s efficiency would improve in that area.

July 13, 2014 • Alaska Journal of Commerce

• Page B5

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Page B6 • July 13, 2014 • Alaska Journal of Commerce

“We work a long way from Bristol Bay, but as the second largest Alaskan company, BBNC understands developing our natural resources is a team effort and we all have a role to play. For me, I worked hard from the bottom up and now I’m trusted to lead a crew of my own.” — Wayne Deutschlander, Kakivik Asset Management, Bristol Bay Native Corporation

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July 13, 2014 • Alaska Journal of Commerce

• Page B7

Credit gives Little Red Services reason to build in Alaska By Tim Bradner Alaska Journal of Commerce

Little Red Services, an Alaskan-owned oil well service company founded in 1983, is putting a new state incentive to work in building equipment in here that was previously constructed out of state. Senate Bill 21, the oil tax reform bill passed by the Legislature in 2013, not only changes the state oil production tax. It also contains a provision granting a 10 percent state tax credit for oil service equipment, or facilities, that are made in Alaska. Little Red Services uses specialized tank trucks to help oil field operators with well stimulation jobs. The trucks cost $1.5 million to $2 million each and were previously built in Alberta. They’re now being built here, said Doug Smith, president of the company. Since SB 21 was passed in April 2013, Little Red Services has completed construction of one new truck and is now started work on a second. The company has also rebuilt two older trucks in the last year. Under the incentive, the company can take a dollar-for-dollar tax credit against its

Alaska corporate income tax for up to 10 percent of the costs. For example, the tax credit would be $150,000 for a $1.5 million new truck. If SB 21 is repealed by voters in the upcoming August state primary election, the incentive will be terminated. Since SB 21 passed, the North Slope producers have sharply stepped up well stimulations and well “workovers,” along with new drilling in the large producing fields because this is the quickest way to get new production into the pipeline. New production projects are also planned but it takes several years to secure permits and do the engineering and construction for these. Smith has been a big increase in his company’s work. “We hadn’t built a new truck for five to six years. In the last 12 months, since the new tax bill passed, we’ve rebuilt two and will have built two entirely new trucks,” he said. Weona Corp., which maintains a fabrication shop in south Anchorage, is doing the building. Weona employs 20 to 30 full-time employees and five to seven of those are now working on the construction

Photo/Michael Dinneen/For the Journal

Little Red Services owner Doug Smith chats with welder/fabricator Ivar Carlson behind the tank of the new truck at Weona Corp. fabrication shop in South Anchorage. A tax credit in Senate Bill 21 has a 10 percent tax credit for oil service equipment or facilities that are made in Alaska.

for Little Red Services. Little Red Services was recently acquired by Arctic Slope Regional Corp., the Barrow-

MagTec:

Photo/Rashah McChesney/Peninsula Clarion

Jim Doyle, owner and president of Weaver Bros. Inc waves to one of the company’s distinctive turquoise-painted trucks on July 2 in Nikiski. Doyle, who has been in Alaska since the beginning of its oil-producing days, said things have never been busier for his business on the Kenai Peninsula. A combination of state tax incentives and new entrants to Cook Inlet has led to a resurgence in natural gas production after shortages were feared just a few years ago, and Doyle thinks the same will happen with the tax change on the North Slope.

based Native regional corporation that owns lands on the North Slope and is active in oil field support work.

Continued from Page B3

Kenai branch, which is its busiest terminal. “The hardest work is down here on these winch trucks and we’ve got a good crew here,” Doyle said. The winch trucks are used to move drill rigs and haul other oilfield-related materials. While Weaver Brothers doesn’t have a terminal in Prudhoe Bay it does run trucks up for various reasons. “We don’t do much work on the North Slope at all, very little,” Doyle said. “As far as on the Peninsula the last two years, (business has) more than tripled.” Even though Weaver Brothers doesn’t rely on North Slope producers for its business, Doyle has noticed the increase in operations there. “There’s more exploration and more drilling activity on the North Slope, so something’s got to help that get going because it was slowed down for a long time,” Doyle said. “(SB 21 is) helping to bring more of these drill rigs that are coming into the North Slope just like they are (in the Cook

Inlet). These oil companies are not going to keep spending more money all the time unless they can make more money.” Doyle said he thinks SB 21 has had an overall positive effect on the oil and gas industry in Alaska and would like to see the tax structure stay in place. “There’s always ups and downs and this is an up, and the oil companies tell us it’s going to be at least a 10-year up this time,” Doyle said. Doyle said with more drill rigs coming into the Cook Inlet “all the time,” Weaver Brothers will continue to grow. With the Kenai terminal as busy as it has been during the past two years, and branches in Anchorage and Fairbanks, Doyle doesn’t think the company should open a base on the North Slope. “We can keep busy enough with what we’ve got,” he said. Kaylee Osowski can be reached at kaylee.osowski@ peninsulaclarion.com.

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Page B8 • July 13, 2014 • Alaska Journal of Commerce

CEO: Work for Doyon rigs, shareholders on rise after reform By Elwood Brehmer Alaska Journal of Commerce

Business is thriving at the Doyon family of companies largely due to Alaska’s revamped oil taxes according to CEO Aaron Schutt. The Fairbanks-based Alaska Native corporation for the Interior is big into the oil and gas industry through its subsidiaries, namely Doyon Drilling, Doyon Anvil and Doyon Associated and Doyon Universal Services. “The health of the (oil) industry is critically important to our business success and being able to employ people and specifically shareholders, which is a big corporate goal that we have every year,” Schutt said. In May, Schutt joined five other Native Regional corporation leaders in forming a coalition to oppose Ballot Measure 1, aimed at repealing the oil tax structure in Senate Bill 21 pushed by Gov. Sean Parnell and passed by Republicans in the Legislature. Since the passage of SB 21 in April 2013, Doyon Drilling’s seven drill rigs — six of which operate on

the North Slope — have been increasingly active, he said. “There is more demand currently for rigs than there are rigs” on the Slope, he said. Additionally, nearly 400 Doyon Associated employees chipped in to complete the pipeline between ExxonMobil’s Point Thomson gas field and the Trans-Alaska Pipeline this past winter. Schutt noted that it is the first export-sized line built on the Slope in more than two decades. The work available today is a stark contrast from 2008, when two Doyon Drilling rigs were sidelined for lack of work. At that time, the oil tax regime known as ACES had been in place for roughly a year. ACES, a progressive tax structure that taxes more on a barrel of oil as the price rises, would be reinstated within weeks if Ballot Measure 1 passes during the August primary elections. Schutt detailed the cost to Doyon of having a drilling rig go down. He said each rig employs about 80 field hands that have an average salary of about $100,000. Additionally, each rig requires camp support staff, bringing the total number of jobs supported to nearly 100.

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Doyon Ltd. CEO Aaron Schutt enjoys a light moment during a May press conference with the heads of five other Alaska Native Regional corporations to announce their opposition to Ballot Measure 1. Schutt said the tax reform passed in 2013 has put more shareholders to work and incentives in the bill are helping his company explore for oil and gas on its massive Interior land holdings.

“Just our rig is about $8 million in annual salary,” Schutt said. “Our Alaska-hire rate is very high, in excess of 90 percent, so you’re talking about almost $8 million of Alaska salary gone.”

Overall, about half of the workers manning Doyon Drilling rigs are Doyon shareholders, he said, further implicating the interest they have in keeping busy. “The financial impact is huge when

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you have a rig go down. It’s a very significant event for us,” he said. Beyond the well-known impact oil production has on the state budget, development activity supports local city and borough governments through property taxes in the millions of dollars, he said. Changing the tax structure again and reverting back to ACES, with the possibility of another tax plan proposed by Democrats to follow, would make the investment climate in Alaska unstable and uninviting, according to Schutt. Former state senator and a leader of the “Repeal the Giveaway” campaign Vic Fischer wrote in an email to the Journal that while six Native corporations joined “No on 1,” that’s only half of the entire group. He also pointed out that the ones that did — Doyon, Bristol Bay Native Corp., Cook Inlet Region Inc., Bering Straits Native Corp., NANA Development Corp., and Arctic Slope Regional Corp. — all have a vested interest through either subsidiaries in the petroleum industry or contracts with producers that “mandates they oppose the referendum.” He wrote that the corporations speak only for their corporate interests and that they don’t represent the views of the voters of the respective regions, a fact that he wrote will bear itself out Aug. 19. Schutt said the state should be patient and let SB 21’s 35 percent base tax play out, as it has been in place for less than a year. ACES had a base tax rate of 25 percent with the sharp escalation in the rate as prices increase. The Legislature can “tweak” SB 21 if it sees fit, he said. The “Repeal the Giveaway” campaign simplifies an issue that has vast implications on Alaska, with 90 percent of the state’s revenue coming from oil taxes, Schutt said from his office in Anchorage. “The bumper sticker slogans that we see around town are very inadequate for the very complicated set of economic incentives and penalties we have for oil and gas taxes,” Schutt said. It’s no secret there are factors out of anyone’s control that make Alaska a challenging place for any type of business. A lack of infrastructure, harsh weather and the See Doyon, Page B9

July 13, 2014 • Alaska Journal of Commerce

Doyon:

• Page B9

Continued from Page B8

high costs of labor and raw goods can deter investment. The tenuous ice road season on the North Slope is a great example, according to Schutt. An event as simple as a warm winter can delay hundreds of millions of dollars of oilfield work for up to a year. The tax structure is one piece of the “investment climate” that can be controlled, he said. A stable tax structure encourages investment, Schutt said, a message voiced by other opponents of Ballot Measure 1. That investment often takes five years or more to come to fruition, and Schutt said he believes SB 21 should remain in place to provide the most inviting oil and gas climate possible while oil prices — projected to remain at roughly $100 per barrel for the coming years — aren’t spiking.

because the fracking occurring there is technology that is accessing known reservoirs and production decline could happen there rapidly. Schutt said it isn’t wrong to say SB 21 doesn’t guarantee investment as its opponents point out, but that ACES was “a very flawed bill and tax structure.” “I agree we need to maximize everyone can say that, maximize the states take,” he said. “That doesn’t mean you kill the goose that’s laying the golden eggs because you want to have a big Christmas dinner with the goose.”

Nenana exploration As the battle over oil tax policy continues in all corners of Alaska, Doyon is continuing to explore in the center of the state. The Native corporation has

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demands a lot of attention, Schutt said. If oil and gas can be produced from Nenana, he said it’s an ideal location given its proximity to the highway and the ready market for a new fuel in the Interior. It’s new exploration, like Doyon’s,

said. “It doesn’t consider that this would be a brand new field with all new infrastructure — high risk for continuing to develop the field, so it doesn’t match the oil and gas tax structure well, certainly not under ACES.”

that makes keeping SB 21 in place critical, he said. “If Ballot Measure 1 passes and we find oil in the Interior we’ll be taxed just the North Slope and that, even under SB 21, is a fairly healthy level of tax,” Schutt

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The “middle earth” exploration credits in Senate Bill 21 have incentivized Doyon Ltd. and other Alaska Native Regional corporations to explore for oil and natural gas on their lands away from the North Slope.

He noted that ACES and SB 21 pull in roughly the same amount of tax revenue at current oil prices, about $105 per barrel. “In the five-year horizon, if you can believe (oil price) projections that are fairly accurate, better than our weather here, we should be fairly indifferent in that tax structure as Alaskans,” he said. “It’s certainly not the giveaway that SB 21 opponents have portrayed it to be.” According to Fischer, the state shared in profits made by oil producers under ACES, something it could miss out on if prices rise under SB 21. “SB 21 has essentially a flat tax, giving producers virtually all the benefit from price increases, which are a reflection of market prices, not of any change in cost of production,” he wrote. Schutt said that Alaska will be competing with rapidly-growing Lower 48 oilfields for investment money in the future, a claim Fischer dismissed

spent nearly $40 million on seismic and drill work on its state leases just west of Nenana, Schutt said. In all, Doyon is the primary leaseholder of more than 400,000 acres that roughly parallel the Parks Highway in the Interior. Schutt said “middle earth” exploration credits, as they are known, for Interior as part of the oil tax change were crucial to further work in the area. Doyon drilled a second well near Nenana in 2013, to go with one drilled in 2009. He said seismic work this fall would determine if more drilling is to come, but that the company is optimistic with what it has seen so far. “The things are all in place for a highly productive hydrocarbon system including possibly oil. You see a lot of source rocks including coals and shales that will produce oil in the right circumstances,” he said. Additionally, the area to the north at the edge of the Minto flats

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Page B10 • July 13, 2014 • Alaska Journal of Commerce

Dead ahead: Pothole in federal highway trust fund looms By Joan Lowy Associated Press

WASHINGTON (AP) — As the summer driving season swings into full gear, states can expect a large pothole in their construction budgets if Congress doesn’t reach an agreement quickly on how to pay

for federal highway and transit programs, President Barack Obama and his top officials are warning. States will begin to feel the pain of cutbacks in federal aid as soon as the first week in August if lawmakers don’t act, Transportation Secretary Anthony Foxx said in a letter to states. That’s because the

balance in the federal Highway Trust Fund is dropping and will soon go below $4 billion, the cushion federal officials say is needed for incoming fuel tax revenue to cover outgoing payments to states. The cuts will vary from state to state but will average about 28 percent, transportation officials said.

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By the end of August, the trust fund’s balance is forecast to fall to zero and the cuts could deepen. A second deadline is coming Sept. 30 when the government’s authority to spend money on transportation programs expires. As many as 700,000 jobs could be at risk over the next year, Obama told a crowd of about 500 gathered Tuesday beneath the Key Bridge, which spans the Potomac River and joins the District of Columbia and Virginia. Revenue from federal gas and diesel taxes continues to flow into the trust fund, but the total is expected to be about $8 billion short of the transportation aid the government has allocated to states this year. Over the next six years, a gap of about $100 billion is forecast if transportation spending is maintained at current levels. At the same time, transportation experts and industries that depend on the nation’s highways to get their products to market are calling for greater spending on transportation to shore up aging roads, bridges and tunnels and to accommodate population growth. “Right now there are more than 100,000 active projects across the country where workers are paving roads and rebuilding bridges and modernizing our transit systems,” Obama said. “And soon states may have to choose which projects to continue and which ones to put the brakes on because they’re running out of money.” Already some states are cutting back on construction projects because of the uncertainty of federal funding, Foxx told reporters earlier. “I think people will see it in the traffic. I think people will see it in the condition of our roads,” he said. The reason for the shortfall is that revenue from the federal 18.4-centa-gallon gasoline and 24.4-cent-agallon diesel tax hasn’t kept pace with transportation needs. The taxes haven’t been increased in more than 20 years, while construction and other costs have continued to go up. The most obvious solution is to raise fuel taxes, which is what

several blue-ribbon commissions have recommended and business groups like the U.S. Chamber of Commerce and the American Trucking Associations have urged. But neither political party nor the White House wants to get out front on a proposal to raise taxes in an election year. Foxx didn’t rule out Obama’s signing legislation that raises the gas tax, but he indicated the administration doesn’t believe there is enough support in Congress to pass a gas tax increase. “We have said if Congress acts on something, we’ll keep an open mind,” Foxx said. Instead, Obama is pushing a plan to close tax loopholes and use the revenue to pay for increased transportation spending for the next four years. “We have a proposal we think is politically acceptable,” Foxx said. Nearly a dozen proposals to address the problem have been floated in Congress, including several to raise the gas tax, but none have gained traction. House Ways and Means Committee Chairman Dave Camp, R-Mich., offered a similar proposal to Obama’s plan in April. But many Republicans say they’d rather offset increases in transportation spending with cuts in other government programs rather than higher taxes. And many lawmakers say they want to adhere to the trust fund’s “user pays” principle by raising money from people who most use the roads, if not through a gas tax then some other means. Saying his plan would “support millions of jobs” by making “companies that are shipping their profits overseas” pay their fair share of taxes, Obama blamed the impasse on the GOP. “It’s not crazy, it’s not socialism. It’s not the imperial presidency,” he said. “But so far, House Republicans have refused to act on this idea. I haven’t heard a good reason why they haven’t acted — it’s not like they’ve been busy with other stuff. No, seriously. I mean, they’re not doing anything. Why don’t they do this?”

Oil drops near $103/barrel Associated Press

The price of oil slipped closer to $103 per barrel July 8 as concerns about possible supply disruptions continued to fade. By early afternoon in Europe, benchmark U.S. crude for August delivery was down 15 cents to $103.38 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, was down 64 cents to $109.60 on the ICE Futures exchange in London. The Nymex contract has been easing since it hit a 10-month closing high of $107.26 on June 20, reflecting worries that insurgents in Iraq might push into important oil-producing regions and choke off supplies from OPEC’s second-biggest exporter. The Iraqi government’s progress in regaining some control since then has assuaged those fears. U.S. crude production, meanwhile, is at its highest in about two decades. Also, an agreement in Libya between the central government and a regional militia is expected to

allow the reopening of two oil terminals, boosting crude exports by about 500,000 barrels per day from 350,000 barrels now. “The imminent return of Libyan supply to the market is continuing to weigh on prices,” said analysts at Commerzbank in Frankfurt in a note to clients. Commerzbank, however, warned that the need for infrastructure maintenance and the fragility of the agreement still posed risks. Investors will later be monitoring fresh information on U.S. stockpiles of crude and refined products. Data for the week ending July 4 is expected to show draws of 3 million barrels in crude oil stocks and of 1 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. In other energy futures trading in New York: • Wholesale gasoline retreated 1.25 cents to $2.9765 a gallon. • Natural gas fell 3.9 cents to $4.186 per 1,000 cubic feet. • Heating oil lost 1.11 cents to $2.9034 a gallon.

July 13, 2014 • Alaska Journal of Commerce

• Page B11

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ENGINEERING & CONSULTING Golder Associates Inc. A global company specializing in ground engineering and environmental services. For more than 30 years our Alaskan operations have been supporting arctic and offshore oil and gas, mining, transportation, and energy projects through planning, permitting, design, construction, and closure. Our resources in more than 180 offices globally makes it possible for us to help our clients achieve their business objectives around the world and at home. 2121 Abbott Road, Suite 100 Anchorage, AK 99507 Contact: Mark Musial Phone: 907-344-6001 Fax: 907-344-6011 Email: mmusial@golder.com Web site: www.golder.com UMIAQ - Diversified Development and Support Services in the Arctic UMIAQ is a member of the Ukpeaġvik Iñupiat Corporation (UIC) family of companies. UMIAQ provides resource development services, design, consulting, logistics and science support while understanding the politics, culture, land use issues, regulations and environmental conditions related to industrial and community development in the arctic and

6700 Arctic Spur Road Anchorage, AK 99518 907-677-8227 Fax: 907-677-8286 Contact: Cindy Shake Email: cindy.shake@uicumaiq.com Website: www.uicumiaq.com

ENVIRONMENTAL UMIAQ - Diversified Development and Support Services in the Arctic UMIAQ is a member of the Ukpeaġvik Iñupiat Corporation (UIC) family of companies. UMIAQ provides resource development services, design, consulting, logistics and science support while understanding the politics, culture, land use issues, regulations and environmental conditions related to industrial and community development in the arctic and subarctic Alaska. These services include architecture, engineering, regulatory planning, stakeholder relations, surveying, geospatial analysis, response planning and operations, onshore and offshore spill prevention, arctic science support, logistics, local traditional knowledge and full-service camps. UMIAQ works to ensure project needs are safely and successfully met. 6700 Arctic Spur Road Anchorage, AK 99518 907-677-8227 Fax: 907-677-8286 Contact: Cindy Shake Email: cindy.shake@uicumaiq.com Website: www.uicumiaq.com

FREIGHT SHIPPING Totem Ocean Trailer Express (TOTE) A privately owned deep water shipping company serving Alaska since 1975. TOTE operates a fleet of roll-on/roll-off (RO/RO) cargo ships offering twice weekly service between the Ports of Tacoma, Wash., and Anchorage, Alaska. Transit time port-to-

udelhoven uMiAQ port is 66-72 hours. TOTE specializes in flat bed, enclosed trailer and over dimensional freight for the oil and gas industry. 2511 Tidewater Road Anchorage, AK 99501 Contact: Greg Kessler Phone: 800-234-8683 Fax: 907-278-0461 E-mail: greg.kessler@totemocean.com Web site: www.totemocean.com

GENERAL CONTRACTORS Conam Construction CONAM Construction Company is a full service General Contractor serving the oil and gas industry in Alaska with Engineering, Procurement, Construction and Maintenance Services. Core Values include being the best at Safety, Quality and Customer Satisfaction. CONAM is a subsidiary of Quanta Services, Inc., a S&P 500 company specializing in construction and energy infrastructure projects. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 907-278-6600 Fax: 907-278-4401 Contact: Dale Kissee Email: dkissee@conamco.com Website: www.conamco.com Price Gregory International Price Gregory International (PGI) is an EPC heavy Mechanical/Electrical contractor specializing in pipeline projects, electrical power and process facilities, and infrastructure installations anywhere, in any terrain, with any challenges. PGI is part of Quanta Services, (PWR:NYSE), a leader in specialized contracting services in the electric power, pipelines, and telecommunications industry. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 907-278-4400 Fax: 907-278-3255 Contact: Bob Stinson Email: bstinson@pricegregory.com Website: www.pricegregory.com The Udelhoven Companies Serving the needs of general contracting and oil production since 1970,

Westmark Hotels the Udelhoven Companies provide a full spectrum of efficient and flexible technical and construction services to industry and commerce in locations throughout North America, the Caribbean, Russia, and the Gulf of Mexico. Company capabilities include industrial construction, general, electrical and mechanical commercial construction, automation systems, instrumentation and controls, technical support, inspection and commissioning services, process controls and functional check-out. Our highly trained and experienced personnel combined with a vigorous company commitment to quality and safety ensures timely execution of client objectives regardless of magnitude. 184 East 53rd Avenue Anchorage, Alaska 99518 Phone: 907-344-1577 Fax: 907-562-1880 Web site: www.udelhoven.com UMIAQ - Diversified Development and Support Services in the Arctic UMIAQ is a member of the Ukpeaġvik Iñupiat Corporation (UIC) family of companies. UMIAQ provides resource development services, design, consulting, logistics and science support while understanding the politics, culture, land use issues, regulations and environmental conditions related to industrial and community development in the arctic and subarctic Alaska. These services include architecture, engineering, regulatory planning, stakeholder relations, surveying, geospatial analysis, response planning and operations, onshore and offshore spill prevention, arctic science support, logistics, local traditional knowledge and full-service camps. UMIAQ works to ensure project needs are safely and successfully met. 6700 Arctic Spur Road Anchorage, AK 99518 907-677-8227 Fax: 907-677-8286 Contact: Cindy Shake Email: cindy.shake@uicumaiq.com Website: www.uicumiaq.com

LOGISTICS Totem Ocean Trailer Express (TOTE) A privately owned deep water shipping company serving Alaska since 1975. TOTE

Page B12 • July 13, 2014 • Alaska Journal of Commerce Continued fromPage page Continued from 10 B11 operates a fleet of roll-on/roll-off (RO/RO) cargo ships offering twice weekly service between the Ports of Tacoma, Wash., and Anchorage, Alaska. Transit time port-toport is 66-72 hours. TOTE specializes in flat bed, enclosed trailer and over dimensional freight for the oil and gas industry. 2511 Tidewater Road Anchorage, AK 99501 Contact: Greg Kessler Phone: 800-234-8683 Fax: 907-278-0461 E-mail: greg.kessler@totemocean.com Web site: www.totemocean.com

REMEDIATION Golder Associates Inc. A global company specializing in ground engineering and environmental services. For more than 30 years our Alaskan operations have been supporting arctic and offshore oil and gas, mining, transportation,

and energy projects through planning, permitting, design, construction, and closure. Our resources in more than 180 offices globally makes it possible for us to help our clients achieve their business objectives around the world and at home. 2121 Abbott Road, Suite 100 Anchorage, AK 99507 Contact: Mark Musial Phone: 907-344-6001 Fax: 907-344-6011 Email: mmusial@golder.com Web site: www.golder.com

RESOURCE DEVELOPMENT UMIAQ - Diversified Development and Support Services in the Arctic UMIAQ is a member of the Ukpeaġvik Iñupiat Corporation (UIC) family of companies. UMIAQ provides resource development services, design, consulting, logistics and science support while understanding the politics, culture, land use issues, regulations and environmental conditions related to industrial and

community development in the arctic and subarctic Alaska. These services include architecture, engineering, regulatory planning, stakeholder relations, surveying, geospatial analysis, response planning and operations, onshore and offshore spill prevention, arctic science support, logistics, local traditional knowledge and full-service camps. UMIAQ works to ensure project needs are safely and successfully met. 6700 Arctic Spur Road Anchorage, AK 99518 907-677-8227 Fax: 907-677-8286 Contact: Cindy Shake Email: cindy.shake@uicumaiq.com Website: www.uicumiaq.com

SCIENCE UMIAQ - Diversified Development and Support Services in the Arctic UMIAQ is a member of the Ukpeaġvik Iñupiat Corporation (UIC) family of companies. UMIAQ provides resource

development services, design, consulting, logistics and science support while understanding the politics, culture, land use issues, regulations and environmental conditions related to industrial and community development in the arctic and subarctic Alaska. These services include architecture, engineering, regulatory planning, stakeholder relations, surveying, geospatial analysis, response planning and operations, onshore and offshore spill prevention, arctic science support, logistics, local traditional knowledge and full-service camps. UMIAQ works to ensure project needs are safely and successfully met. 6700 Arctic Spur Road Anchorage, AK 99518 907-677-8227 Fax: 907-677-8286 Contact: Cindy Shake Email: cindy.shake@uicumaiq.com Website: www.uicumiaq.com

Foreign investors turn eyes toward North Dakota oil patch By Josh Wood Associated Press

WILLISTON, N.D. (AP) — Foreign investors more familiar with projects in the emerging markets of Eastern Europe and tropical escapes of Southeast Asia are finding a new destination for their dollars and francs: Western North Dakota’s oil patch that’s home to booming towns, low unemployment rates and high incomes. SelectUSA, a government foreign investment initiative, said the state has drawn at least 31 publicly announced foreign investment projects since 2003 worth a total of $1.04 billion. Now two foreign companies are planning a pair of large oil patch developments worth $800 million. Williston Economic Development head Tom Rolfstad said there’s likely more foreign investment than what’s immediately visible. Among the latest projects is Swiss firm Stropiq’s plan for a $500 million, 219-acre mixed-use development called Williston Crossing featuring 1 million square feet of retail, entertainment and hotel space along with offices and residential plots. The oil patch is “an emerging market by most definitions, except it is in the continental U.S.,” said Stropiq co-founder Terry Olin. “We have rule of law and property rights — things that in most emerging markets can be challenging.” Olin has North Dakota roots but spent the past two decades working on projects in Moscow and St. Petersburg, Russia. Another foreign investment firm, Singapore’s Barons Group of Companies, has proposed a $300 million project in Dickinson called Barons Vista that includes a mall, four-star hotel, spa, offices and condos. Barons entered the U.S. buying distressed properties during the recession. CEO Danny Lim said that during that time he

Photo/Josh Wood/AP

In this July 3 photo, the Brooks Hotel and a Fuddruckers restaurant are seen in Williston, N.D. North Dakota’s oil boom has not escaped the eyes of foreign investors. Two foreign investment firms are trying to bring two large-scale mixed-use developments worth a total of $800 million to the state’s oil patch.

“realized North Dakota is not suffering a depression and jobs are still very rampant.” North Dakota is an outlier in Barons’ portfolio. In Malaysia, the group is developing 36-floor towers replete with luxury residences featuring infinity pools and a hotel. And in the hills of the idyllic Indonesian island of Bali and on the white sand beaches of Boracay in the Philippines it’s planning five-star resorts. Some foreign investments are smaller in scale but still play a role in the local economy. Turk-

ish company Serka Services spent at least $26 million last year on a Fuddruckers restau-

rant and a hotel in Williston. Big or small, the rapidly growing, highly paid oil patch popu-

lation — combined with a severe shortage of housing and retail space — is attractive for such projects, though some people are wary because booms can go bust. That happened in the 1980s in Williston. Investors “recognize that unlike in a large population area somewhere else in the world, we do have the risk that we become a sparsely populated area again if the oil industry were to shut down,” said Olin. “The first thing that comes to mind is the freezing temperature,” added Lim. “The other

thing they are thinking is this is a really remote area — are you sure you want to put your money there?” But unlike previous booms, there are tens of thousands more wells still to be dug and much better technology available, so members of the oil industry and state leaders anticipate oil production will continue for decades to come. “The situation here, as you well know, is that there is no reason for so many people to live here in the past,” said Olin. “And now there is. And we have an awful lot to create.”

July 13, 2014 • Alaska Journal of Commerce

Parnell won’t study marijuana measure ahead of vote Associated Press

FAIRBANKS (AP) — Gov. Sean Parnell said he will not use state resources to study the implications of legalizing marijuana unless voters approve a pot initiative this fall. Parnell said he would work to implement the initiative if it passes in November; the Republican also is up for reelection this year. But he said he personally opposes the measure, which would legalize recreational use of marijuana by those 21 years of age or older. “I’m not excited about the prospect,” he told the Fairbanks Daily News-Miner during an editorial board meeting. “I think we’re not sending the right message to our kids.” Voters in Colorado and Washington approved similar measures in 2012. But it took more than a year to put in place the systems for oversight, taxation and quality control. Colorado began marijuana sales Jan. 1, while sales were first allowed in Washington on July 8. If Ballot Measure 2 passes, Alaska would become the third state to legalize recreational marijuana use. Supporters say marijuana should be taxed and regulated in a manner similar to alcohol. A spokesman for the ballot group earlier this year questioned the state’s initial estimated cost for implementation as “poorly researched fiction.” Cost estimates are part of the certification process for proposed initiatives in Alaska. Parnell said Alaska would have the benefit of learning from what happened in Colorado and Washington. He said he discussed legalization with Colorado Gov. John Hickenlooper, a Democrat, whose advice was: “Don’t go into this lightly.” “He urged caution among governors when it comes to passage of this,” he said. “There are a lot of unintended consequences.” While Parnell acknowledged there are challenges that could come from legalization, he said he won’t ask state employees to prepare for possible legalization now. He said the Department of Law should focus on its existing workload, not on what may happen after the election. If the measure passes, Parnell said the Legislature and state regulatory agencies would need to establish oversight rules. Ballot Measure 2 also would create a Marijuana Control Board to regulate the new industry.

www.alaska journal.com

• Page B13

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How the cupcake crumbles: The dangers of focusing on a single product By Candice Choi AP Food Industry Writer

NEW YORK (AP) — Turns out, being a one-hit wonder is risky. When Crumbs, the New York City-based chain that built its business around cupcakes, shuttered several dozen of its remaining locations on July 7, it seemed like an abrupt ending for a company that opened a decade ago to ride the wave of popularity of the sugary treat sparked by the TV series Sex and The City. But Crumbs’ rise and fall isn’t surprising when considering the company’s dependence on a fad. In fact, it’s the latest cautionary tale for one-item restaurants and other chains that devote their entire menus to variations of a single product. • Krispy Kreme, for instance, expanded rapidly in large part on the cult-like following of its doughnuts. But sales started declining and the company ended up closing locations. Last year, restaurant industry researcher Technomic said Krispy Kreme had 249 locations, down from 338 a decade ago. The chain has broadened its menu more recently. • A similar fate befell Mrs. Fields, which is known for its cookies. The chain has suffered in part because of the ubiquity of places that sell cookies, and it was down to 230 stores last year, from 438 a decade ago. • TCBY had 355 stores last year, down from 1,413 a decade ago. Part of the chain’s problem is the competition, given the proliferation of frozen yogurt places. Companies that only offer one item can fall victim to a number of risks. For one, trendy products tend to attract competition from big and small players that want to jump on the bandwagon. For instance, Starbucks and Cold Stone Creamery have been trying to capitalize on the cupcake trend with cake pops and ice cream cupcakes, respectively. Being beholden to a single item also makes companies more susceptible to customers’ whims and changing tastes. There’s always a new fad. Fro-

zen yogurt. Chopped salads. Freshly squeezed juices. Entrepreneurs may be eager to open stores selling these products, but there’s always the danger that fickle customers will move on to the next thing. “A cupcake shop today can’t survive on just cupcakes,” said Darren Tristano, a Technomic analyst. To combat the risks, many chains diversify their menus. And several have prospered by moving beyond their flagship products. Dunkin’ Donuts, for instance, has been pushing aggressively into specialty drinks and sandwiches, with a focus on boosting sales after its morning rush hour. And Starbucks has introduced a range of new foods and drinks in its cafes, including premium bottled juices and salad boxes. The coffee chain even plans to expand wine and beer offering in evenings to as many as 1,000 locations over the next several years. Magnolia, another popular New York City cupcake shop, is credited for sparking the cupcake craze after it was featured in Sex and the City. The chain, which opened in 1996, has endured while many of the cupcake shops that opened up in its wake — including Crumbs — focused on just cupcakes. That’s in part because Magnolia, which now has seven locations, offers a variety of desserts, including cakes, pies, cookies, brownies and banana pudding. Sara Gramling, Magnolia’s spokeswoman, said the company is learning about the dangers of focusing too heavily on one product, as well as expanding too quickly. “We’ll be mindful of those lessons,” she said. Still, some chains manage to persevere by carving out a niche where there aren’t many competitors; Auntie Anne’s and Cinnabon have expanded locations over the years. As for Crumbs, the company noted in a statement late July 7 that it was evaluating its “limited remaining options.” That will include a Chapter 7 bankruptcy filing.

July 13, 2014 • Alaska Journal of Commerce

• Page B15

Obama asks for $3.7 billion to deal with border children By Erica Werner and Jim Kuhnhenn Associated Press

WASHINGTON (AP) — Tackling what he has called a humanitarian crisis, President Barack Obama on July 8 asked Congress for $3.7 billion to cope with a tide of minors from Central America who are illegally crossing the U.S. border, straining immigration resources and causing a political firestorm in Washington. The White House said the money would help increase the detention, care and transportation of unaccompanied children, help speed the removal of adults with children by increasing the capacity of immigration courts and increase prosecution of smuggling networks. The money would also increase surveillance at the U.S. border and help Central American countries repatriate border-crossers sent back from the United States. Obama requested the money in a letter to House Speaker John Boehner. The request did not include

proposals for legislative changes that the White House wants. But Obama said he still will seek such changes, including providing the secretary of Homeland Security additional authority to speed up the removal of children who have arrived from countries such as Guatemala, Honduras and El Salvador. Obama said he also wants increased penalties for individuals who smuggle vulnerable migrants, such as children. The developments all come as Obama has declared comprehensive immigration legislation dead in Congress and announced plans to proceed on his own by executive action to make whatever fixes he can to the nation’s dysfunctional immigration system. That could put Obama in the seemingly contradictory position of weighing proposals to shield millions of people from deportation while at the same time trying to hurry deportations for the unaccompanied children. Congressional Republicans blame Obama policies for the confusion; Obama administration offi-

cials dispute that. More than 50,000 children have arrived since October, in many cases fleeing violence at home but also drawn by rumors that they can stay in the U.S. Obama planned to discuss the crisis with faith and local leaders during a political fundraising visit to Texas July 9, but he is resisting calls to visit the border for a firsthand look. The White House invited Texas Republican Gov. Rick Perry, who is among those urging Obama to get to the border while he’s in the state, to the July 9 meeting in Dallas. Perry’s spokeswoman Lucy Nashed confirmed that Perry and Obama will meet. Perry “is pleased that President Obama has accepted his invitation to discuss the humanitarian and national security crisis along our southern border,” Nashed said. House Appropriations Committee Chairman Hal Rogers, a Republican, called the situation on the border “extremely dire.”

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“It is clear that additional funding will be needed to ensure the proper care of these unaccompanied children, to enforce the law, and to further secure our border so that these problems can be mitigated in the short term,” he said in a statement. “Our committee will focus on providing what is necessary to meet these ongoing needs.” The White House request would: • Seek $1.1 billion for the Department of Homeland Security to help deter border-crossers and increase enforcement. That would include $879 million to pay for detention and removal of adults traveling with children, to provide additional detention space for those individuals, and to speed up the prosecution of adults who cross the border unlawfully with children. • Seek $433 million for Customs and Border Protection to cover overtime costs and for additional facilities to detain unaccompanied children while they are in Border Patrol custody. It also includes nearly $40 mil-

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Page B16 • July 13, 2014 • Alaska Journal of Commerce

Avista closes deal to buy Juneau electric utility AEL&P By Charles L. Westmoreland Morris News Service-Alaska/Juneau Empire

JUNEAU — A Washington-based energy company has concluded its acquisition of Juneau’s electric company. Even though Avista Corp., which is headquartered in Spokane, now owns Alaska Electric Light and Power Company, things are expected to be “business as usual” moving forward, an Avista spokeswoman told the Empire July 1. Jessie Wuerst, senior communications manager for Avista, said the company decided to acquire AEL&P and its parent company, Alaska Energy and Resources Company, because Avista’s “northwest customer base isn’t growing.” “To keep value for our shareholders, we needed to look for ways to expand,” she said. Avista, which is four years older than AEL&P at 125 years, provides electric and gas energy to nearly 700,000 customers in eastern Washington, northern Idaho and parts of southern and eastern Oregon. “We are very pleased to complete this transaction, and to have AERC become part of our company,” said Avista Corp. chairman and CEO Scott Morris. “We look forward to working with the highly skilled and dedicated management and employees of AEL&P, and to being a partner in the Juneau community.”.

One of the conditions of the sale, set by former AERC owner Bill Corbus before the acquisition was first announced in November 2013, was that nothing at AEL&P be changed for at least two years. Corbus also said he’d be donating 90 percent of his shares, about $40 million, from the sale to the Juneau Community Foundation. Wuerst was complimentary of AEL&P’s business model, saying the two companies share the same culture and appreciation for innovative technology. “We want to expand what AEL&P is doing in the community,” she said. Some of the innovative measures she referred to included AEL&P’s construction of hydro-electric power plants, lake taps, avalanche diversion structures and the use of a Daisy Bell, which is a portable device used to remotely trigger avalanches. Wuerst said the challenges faced by AEL&P and Avista aren’t so different. AEL&P uses helicopters to reach its remote hydro plants, and Avista uses Snowcats to navigate mountainous terrain for its facilities. She said AEL&P’s role in the community, from public outreach to community service, is also similar. She noted, for example, that Avista’s 1,643 employees volunteered 50,000 hours of service and $1 million in financial contributions last year. However, the expansion she referred to goes beyond AEL&P’s public involvement. Wuerst said more resources will now be available as

well, which can help minimize costs to customers. Expenses like infrastructure improvement and purchasing technology upgrades previously were paid for through rate increases, but Wuerst said Avista can “help leverage” those costs. AEL&P vice president Debbie Driscoll described it as “more possibilities with less impact to rate payers.” Driscoll said AEL&P staff were nervous about the transition at first and had plenty of questions, but most of those concerns were addressed when Corbus explained that he’d spent a considerable amount of time finding the right company to take over. “He wanted to make sure the community and our company was able to make the transition in the best possible way.” Tim McLeod will remain AEL&P’s president and general manager, and those with Avista who came up to Juneau to assist with the transition won’t be staying. In connection with the acquisition, Avista Corp. issued about 4.5 million new shares of stock to AERC shareholders, according to a press release, and the price of $32.46 per share reflects a purchase price of $170 million. Also on Tuesday, Avista announced it concluded the sale of its energy management and sustainability company, Ecova, Inc., to Cofely USA Inc. The sale price was $335 million in cash, less the payment of debt and other customary closing adjustments. A local Alaska Native Owned business

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Page B18 • July 13, 2014 • Alaska Journal of Commerce

GETTING THE FLEET TO ITS DESTINATION FASTER

HELPS ALASKA BREATHE A LITTLE EASIER. {PO W ER FUL A NSW ER S }

Technology that can help reduce operational expenses can help businesses be more efficient. The innovative minds at Verizon have teamed up with some of the smartest companies around to create solutions that help businesses make informed management decisions. It starts with our Fleet Management solutions. By leveraging the Verizon 4G LTE network, along with satellite-enabled devices and a fleet management dashboard, businesses can optimize travel routes to the North Slope to improve vehicle and driver performance—regardless of the size or type of their fleet. This gives them the ability to do more business while cutting fuel costs. Alaska’s new technology leader is here, and here to stay. 907.777.9800 | verizonwireless.com/alaska

July 13, 2014 • Alaska Journal of Commerce

• Page B19

COMMERCE CORNER After Aereo, what’s next for Internet TV? By Ryan Nakashima AP Business Writer

LOS ANGELES (AP) — The Supreme Court shot down Aereo’s business model last month, but that doesn’t mean customers’ desire for a better TV experience is gone. Americans are still fed up with huge channel bundles, high prices, poor service and the lack of ability to watch all their shows on all their devices. That’s part of why Aereo was attractive: It offered a few dozen local broadcast channels and the Bloomberg TV financial channel on multiple devices for just $8 a month. Industry watchers say the pay TV business must continue to evolve to win over unhappy customers, even if the nation’s top court said grabbing signals from the airwaves and distributing them online without content-owner permission isn’t the way. “Even without Aereo, the reason people were cutting the cord, for cost reasons and so on, those don’t go away,” said Robin Flynn, an analyst with market research firm SNL Kagan. Last year, the number of pay TV subscribers in the U.S. fell for the first time, dipping 0.1 percent to 94.6 million, according to Leichtman Research Group. SNL estimates that 5 percent of homes will substitute pay TV with one or more Internet video services by the end of the year, rising to 10 percent in 2017. Many companies are offering quality TV content online for low cost to meet that rising demand. They include Netflix and Amazon. Hulu, which is owned by major broadcast networks ABC, NBC and Fox, offers full episodes of popular shows like “The Colbert Report” the next day for free. While that’s not live TV, which Aereo offered, for many it’s a good-enough substitute. The decision against Aereo is a setback, but not a fatal one for people who want to break away from traditional TV, said Bill Niemeyer, senior analyst at TDG Research. “While the content on the major broadcast networks is very important for some people, it’s not important for everyone,” Niemeyer said. “So it’s a dent, but I don’t think it’s going to significantly change the trends.” If anything, the rise and fall of Aereo has highlighted an important fact — that high-quality TV signals are available on the airwaves for free — something that might have been forgotten if Aereo hadn’t insisted that its technology simply replicates the antenna and wire that an average person could set up on their own. “What Aereo has really done in our perspective is to address the lack of understanding that over-the-air is free,” said Mark Buff, CEO of Mohu, a company that makes flat indoor antennas that attach to walls. Mohu has sold 1.5 million antennas since it began in 2011 and they work in the kind of dense urban areas like New York where Aereo is believed to have had a small subscriber base. It is about to launch Mohu Channels, a device that blends Internet video services like Netflix with free-to-air TV in a single channel guide. “We certainly do see and believe that the cordcutting movement is on the rise,” he said. Alki David, the CEO of online streaming company FilmOn, said the Supreme Court’s ruling actually creates an opportunity for startups because the court said that Aereo bears an “overwhelming likeSee Aereo, Page B28

Photo/Kathy Willens/AP

In this June 12 photo, a member of the media tries out a new Samsung Galaxy Tab S after the tablet’s debut at a news conference in New York. The new display technology in Samsung’s Galaxy Tab S tablet brings colors to life and reduces the device’s bulk.

Colors come alive in new Galaxy tablet By Anick Jesdanun AP Technology Writer

NEW YORK (AP) — Samsung’s new Galaxy Tab S tablet looks different. As soon as I turned on the screen, I noticed that the colors are stunning and vivid. Red looks redder, and greens are greener. The lawn and the trees in “Ghostbusters” look alive, as does a purple-tinted apparition. The Tab S is also thinner than other leading tablets, at a quarter of an inch (6.6 millimeters). The model with the smaller screen is lighter, too. Samsung Electronics Co. achieves all this by using a display technology previously limited to smartphones. It’s called AMOLED, for active-matrix organic light-emitting diodes. Samsung released an AMOLED tablet in 2012, but it was expensive and didn’t sell well. The new

ones are priced more competitively — the same as iPads of comparable size. The Tab S with an 8.4-inch screen, measured diagonally, costs $400, while a 10.5-inch version costs $500. Both start selling in the U.S. on Friday. AMOLED screens are more expensive than conventional LCD screens, but they produce richer colors. They also require no backlighting because the individual pixels produce their own light. That eliminates at least one layer of material and contributes to thinness. No backlighting means the screen is able to produce a true black. On LCD screens, black isn’t really black, but more like a patch of night sky with a hint of light from nearby stars. These differences are subtle, but noticeable once you place a Tab S next to Apple’s iPad and Amazon’s Kindle Fire HDX. True black means deeper contrasts in video and photos.

No backlighting also saves power, at least for darker images. On the other hand, AMOLED screens tend to need more energy to match the brightness on conventional displays. So images with a lot of white and bright colors might actually drain the battery faster. On the 10.5-inch model, the battery level drained to 80 percent after displaying a mostly white Web page for two hours. By contrast, it drained to just 92 percent with a mostly black Web page. On the iPad Air, it was down to about 88 percent in both cases. Nonetheless, battery life on the Tab S is impressive — more than 12 hours of streaming video on Hulu with the large version and more than 11 with the small one. That’s comparable to what I get on iPads. AMOLED screens have a few other drawbacks besides uneven power consumption: See Review, Page B27

The Bookworm Sez: ‘Essence’ offers a bit of everything By Terri Schlichenmeyer For the Journal

It’s never been done before. It’s never been done, it’s never been tried. Maybe it’s never been thought of, either, but that hasn’t stopped you. Once a valid idea pops into your head, it’s not long before the idea becomes more. You’ve been around long enough to know, however, that the road to success can be paved with spikes and nothing ever happens smoothly. In “The Man from Essence” by Edward Lewis (with Audrey Edwards), you’ll see that that phenomenon crosses all industries. By age 28, Edward Lewis had already endured his share of awkwardness: he’d lost a football scholarship at one college and had flunked out of law school at another. He was, however, able to find and keep a good job at a major bank in Manhattan, which led to an opportunity that would “transform” his life. The vice president of a New York investment firm invited a “bunch of… young bloods” to a think-tank meeting, promising them financing if they came up with a business idea that would work. One of the attendees mentioned that his mother always dreamed of a magazine specifically for “Negro” women and, offhandedly, the investment vice president paired him and two others with Lewis, who knew

“The Man from Essence: Creating s Magazine for Black Women” by Edward lewis with Audrey Edwards, foreword by Camille O. Cosby c.2014, Aria $25 / $29.99 Canada 311 pages

“something about finance.” Eager to own their own business, the four men — Clarence Smith, Jonathan Blount, Cecil Hollingsworth, and Lewis — set up a partnership in March 1969, and began looking for an editor for their new magazine, even though they “knew a little more than zip about Negro women and the consumer See Bookworm, Page B28

Page B20 • July 13, 2014 • Alaska Journal of Commerce

July 13, 2014 • Alaska Journal of Commerce

• Page 1

Legal Notices Please contact Belinda Cummings at 561-4772 for further information on advertising in the Legal Notices or fax to 563-4744, you can also email her at belinda.cummings@morris.com or legals@alaskajournal.com. NOTICE

The State of Alaska has proclaimed the Alaska Journal of Commerce to be a paper of general circulation. We are authorized to publish legal and public notices. Please contact Belinda Cummings at 561-4772 for further information.

Public Notices LIQUOR LICENSE APPLICATION Applicant Chong I. Sanders is making application for a new Restaurant & Eating Place- AS04.11.080(3) liquor license, doing business as Anna’s Diner located at 3311 Spenard Rd. Anchorage. Interested persons should submit written comment to their local governing body, the applicant and to the Alcoholic Beverage Control Board at 5848 E. Tudor Rd, Anchorage AK 99507. Pub: 7/13, 20 &27, 2014. Ad#10188046

Notice to Creditors THE SUPERIOR COURT OF THE STATE OF ALASKA FOURTH JUDICIAL DISTRICT AT FAIRBANKS In the Matter of the Estate of MICHAEL ANTHONY STEPOVICH, aka Mike Anthony Stepovich, Mike A. Stepovich and Mike Stepovich, Deceased. Case No. 4FA-14-00229PR/E. NOTICE TO CREDITORS Notice is given that Antonia M.S. Gore has been appointed personal representative of the above-captioned estate. Persons having claims against the deceased must present their claims within four months of the first publication of this notice or be forever barred. Claims may be presented to Antonia M.S. Gore, 1200 N Nash Street, Apt 839, Arlington VA 22209, or to the above-named court, Rabinowitz Courthouse, 101 Lacey Street, Fairbanks, Alaska 99701. Dated 6/16/2014. By:/s/Barry Donnellan, ABA # 7210045 Attorney for Antonia M.S. Gore Pub: 7/13, 20 & 27, 2014. Ad# 10188098

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate of: Lena M. Scantlin, Deceased. Case No. 3AN-14-01418PR NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that David L. Scantlin has been appointed personal representative of the above-named estate. All persons having claims against the said deceased are required to present their claims within four (4) months after the date of the first publication of this Notice or said claims will be forever barred. Claims must either be presented to the law offices of FOLEY, FOLEY & PEARSON, A Professional Corporation, 11001 O'Malley Centre Drive, Suite 201, Anchorage, Alaska 99515, or filed with the court. DATED this 3 day of July, 2014, at Anchorage, Alaska. FOLEY, FOLEY & PEARSON, P.C. Attorneys for David L. Scantlin By:/s/William Michael Pearson Alaska Bar No. 0312086 Pub: 7/13, 20 & 27, 2014. Ad#10188055

DISCLAIMER OF LIABILITY

By submitting your advertisement for publication, you agree that the newspaper shall have no liability for errors or omissions in the text of the advertisement as submitted by you. You further agree to indemnify the newspaper for liability arising from the text submitted to it. For any error in the text caused by the newspaper, or any error in the publication date, the newspaper’s liability shall be limited to the cost of the advertisement or republication thereof, and the newspaper shall have no liability for any consequential, direct or general damages of any other sort.

Notice to Creditors

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT IN PROBATE

In the Matter of the Estate of: Jackie G. Crumbley, Deceased. Case No. 3AN-14-01463PR

In the Matter of the Estate of ROBERT STEVEN ROSSBERG, Deceased. Case No. 3AN-14-01165 PR

NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that Craig J. Crumbley has been appointed personal representative of the above-named estate. All persons having claims against the said deceased are required to present their claims within four (4) months after the date of the first publication of this Notice or said claims will be forever barred. Claims must either be presented to the law offices of FOLEY, FOLEY & PEARSON, A Professional Corporation, 11001 O'Malley Centre Drive, Suite 201, Anchorage, Alaska 99515, or filed with the court. DATED this 3rd day of July, 2014, at Anchorage, Alaska. FOLEY, FOLEY & PEARSON,P.C. Attorneys for Craig J. Crumbley By:/s/ William Michael Pearson Alaska Bar No. 0312086 Pub: 7/13, 20 & 27, 2014. Ad# 10188047

NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that Kelly Rossberg has been appointed personal representative of the above-named estate. All persons having claims against the decedent are required to present their claims within four (4) months after the date of the first publication of this notice or said claims will be forever barred. Claims must be presented to the personal representative c/o Tindall Bennett & Shoup, 508 W. 2nd Ave., 3rd Floor, Anchorage, AK 99501. DATED at Anchorage, Alaska, this 20th day of June, 2014. TINDALL BENNETT & SHOUP By:/s/ David H. Shoup Alaska Bar No.8711106 Pub: 7/6, 7/13 & 20, 2014. Ad#10187922

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE PROBATE DIVISION In the Matter of the Estate of THOMAS W. FAUGHNAN, Deceased. Case No. 3AN-14-01443 PR NOTICE TO CREDITORS Notice is hereby given that the undersigned has been appointed personal representative of the estate of Thomas W. Faughnan. All persons having claims against the decedent are required to present their claims within four (4) months after the date of the first publication of this notice or said claims will be forever barred. Claims must either be presented to Adam M. Hensel c/o Law Offices of Royce & Brain, 1407 W. 31st Ave., 7th Floor, Anchorage, AK 99503, or filed with the court. Dated 7/2/2014 By:/s/Sherri A. Caddell Personal Representative Pub: 7/13, 20 & 27, 2014. Ad#10188042

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT PALMER In the Matter of the Estate of LENORE D. FULLER aka LENORA D. FULLER. DOD: 01/28/2014, Deceased. Case No. 3PA-14-00072 PR NOTICE TO CREDITORS Notice is hereby given that JOHNALEE FULLER-OTTEN has been appointed personal representative of the Estate of LENORE D. FULLER, Deceased. All persons having claims against the decedent are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. Claims must be presented to the personal representative at the office of her attorney: Law Office of Melinda D. Miles, LLC, 634 S. Bailey Street, Suite 206, Palmer, AK 99654. DATED: June 17, 2014. LAW OFFICE OF MELINDA D. MILES, LLC. Counsel for Personal Representative By:/s/Melinda D. Miles AK Bar No. 8906029 (907) 745-1119; 745-2109 Fax Pub: 7/6, 13 & 20, 2014. Ad#10188013

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT PALMER In the Matter of the estate of Carol Juanita Tisch, Deceased. Case No. 3PA-14-00106 PR NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that JOHN CRAIG TISCH has been appointed Personal representative of the above-named estate. All persons having claims against the said deceased are required to present their claims within four (4) months after the date of the first publication of this notice or said claims will be forever barred. Claims must either be presented to the law office of Thomas E. Williams, 11940 Business Blvd., #100, Eagle River, Alaska 99577, whose telephone number is 907-694-4000, or filed with Court. DATED this 16th day of June, 2014 at Eagle River, Alaska LAW OFFICES OF THOMAS WILLIAMS Counsel for Craig Tisch By:/s/Thomas E. Williams AK Bar # 7410115 Pub: 7/6, 13 & 20, 2014. Ad#10187787

In the matter of the Estate of LOUIS EUGENE MILAKAR, Deceased. Case No. 3AN-14-0023 PR NOTICE TO CREDITORS NOTICE TO HEREBY GIVEN that the undersigned has been appointed Personal Respresentative of the above Estate. All persons having claims against the said Deceased are re quired to present their claims within four (4) months after the date of the first publication of this Notice or said claims will be forever barred. Claims must be presented to Rose Mlakar, Personal Representative, C/O Woelber, Jacobson & Passard, LLC, Attention : Christina M. Passard, 4241 B Street, Suite 201 Anchorage, AK 99503, or filed with the Court. DATED this 26 day of June, 2014. Woelber, Jacobson & Passard, LLC Attorneys for Personal Representative By:/s/ Christina M. Passard Alaska Bar Association #0511095 Pub: 7/6, 13, 20, 2014. Ad#10187766

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT PALMER In the Matter of the Estate of Evelyn J. Johnson, Deceased. Case No. 3 PA- 14- 132 PR NOTICE TO CREDITORS ALL PERSONS take notice that Sharlene Morris and Penny Toston have been appointed personal representatives of the Estate of Evelyn J. Johnson. All persons or entities having claims against the Deceased or her Estate must present their claim within four months after the date of the first publication of this notice or the claim will be forever barred. Claims must be presented in writing to the Estate of Evelyn J. Johnson, c/o Eric Conard, esq., 832 S. Colony Way Palmer, AK 99645, or a claim may be filed with the Palmer Superior Court, 435 S. Denali Street, Palmer, AK 99645. Dated: 6/25/14 By:/s/ Eric Conard Eric Conard, Esq. AK Bar # 0006036 Counsel to Personal Representatives Pub: 7/6, 13, 20, 2014. Ad#10187765 In the Matter of the Estate of William Larry Ketcherside, Deceased. Case No.3AN-14-1178 PR

NOTICE TO CREDITORS IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate of RICARDO TORRES QUIROZ, Deceased. Case No. 3AN-14-01406 PR NOTICE TO CREDITORS Notice is hereby given that Beatriz Quiroz has been appointed personal representative of the above-named estate. All persons having claims against the decedent are required to present their claims within four (4) months after the date of the first publication of this notice or said claims will be forever barred. Claims must be in writing and presented to the attorney for the estate, Kenneth Kirk, 3401 Denali Street, Suite 203, An chorage, Alaska 99503. Dated and Signed this 25th day of June, 2014, in Anchorage, Alaska. By:/s/ Kenneth Kirk, ABA 8711091 Attorney for Personal Representative Pub: 7/6, 13 & 20, 2014. Ad#10187775

Notice is hereby given that William L. Ketcherside has been appointed personal representative of the above-named estate. All persons having claims against the decedent are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. Claims must be presented to William L. Ketcherside, Personal Representative of the estate, in care of Hedland, Brennan & Heideman, 1227 W. 9th Avenue, Suite 300, Anchorage, AK 99501, or filed with the Court. DATED this 9th day of June 2014. William L. Ketcherside 7260 Topeka Drive Las Vegas, Nevada 89147 Pub: 6/29, 7/6 & 13, 2014. Ad#10187808 IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate of Peter B. Iversen Sr., Deceased. Case No. 3AN-12-2429 PR

Notice to Creditors NOTICE TO CREDITORS

NOTICE IS HEREBY GIVEN that the undersigned has been appointed Personal Representative of the above-named estate. All persons having claims against the Deceased are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. Claims must either be presented to the Personal Representative of the estate c/o 425 G Street, Suite 910, Anchorage, Alaska 99501, or filed with the Court. DATED this June 23, 2014. Longacre Law Offices, Ltd. Attorney for Kathryn L. Iversen Personal Representative By:/s/ Roy Longacre ABA#8211124 Pub: 6/29, 7/6 & 13, 2014. Ad#10187687

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate of, JEAN MARIE MILLER, Deceased. Case No. 3AN-14-01242PR NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that the undersigned represents Lynn Miller, appointed personal representative of the above-named estate. All persons having claims against the Deceased are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. Claims must either be presented to the personal representative of the estate c/o Law Offices of Steven D. Smith, P.C., 7120 Old Seward Highway, Suite 203, Anchorage, Alaska 99518, or filed with the court. Dated at Anchorage, Alaska this 20th day of June, 2014. LAW OFFICES OF STEVEN D. SMITH, P.C. Attorney for Estate of Marguerite Ward By:/s/Steven D. Smith ABA#7811139 Pub: 7/6, 13 & 20, 2014. Ad#10187704

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate of KAREN MCQUAID HESS, Deceased. Case No. 3AN-14-00851 PR NOTICE TO CREDITORS [AS 13.16.450] NOTICE IS HEREBY GIVEN that Zachary Aaron Hess is the Personal Representative of the above-named Estate. All persons having claims against the said Deceased are required to present their claims within four months after the date of the first publication of this Notice or said claim will be forever barred. Claims must be presented to Zachary Aaron Hess, c/o Craig A. Cook, Attorney, at 109 West Sixth Avenue, Suite 207, Anchorage, Alaska 99501 or filed with the above Court at 825 W. 4th Avenue, Anchorage, Alaska 99501 and a copy delivered to the Personal Representative’s attorney. Dated this 30th day of May, 2014. By:/s/Craig A. Cook, Attorney for Personal Representative ABA 8306027 Pub: 7/6, 13 & 20, 2014 Ad#10187703

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT PALMER IN THE MATTER OF THE ESTATE OF CAMERON RAY MACDONALD Deceased.

Notice to Creditors Case No: PA-14-122 Civil NOTICE TO CREDITORS (AS 13.16.450) Notice is hereby given that Donna MacDonald has been appointed personal representative of the above-named estate. All persons having claims against the decedent are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. DATED this 23rd of June, 2014. By:/s/M. R. Spikes, Esq. ABA0310044 Attorney for Plaintiff Pub: 7/6, 13 & 20, 2014. Ad#10187698 POST MORTEM ADMINISTRATION OF THE PHILIP AND ANNA MINK LIVING TRUST DATED MARCH 28, 2006

NOTICE TO CREDITORS

PURSUANT TO AS 13.36.368, NOTICE IS HEREBY GIVEN that Philip H. Mink and Angela Mink Korver have been appointed as Successor Trustees of the Philip and Anna Mink Living Trust. All persons having claims against Anna F. Mink or the said trust are required to present their claims within four (4) months after the date of the first publication of this Notice or said claims will be forever barred. Claims must be presented to the law offices of FOLEY, FOLEY & PEARSON, A Professional Corporation, 11001 O'Malley Centre Dr., Suite 201, Anchorage, AK 99515. DATED this 20 day of June, 2014. Foley, Foley & Pearson, P.C. Attorneys for Philip H. Mink and Angela Mink Korver, Successor Trustees of the Philip and Anna Mink Living Trust dated March 28, 2006. By:/s/Richard H. Foley, Jr. AK Bar No. 8111093 FOLEY, FOLEY & PEARSON, P.C. 1001 O'Malley Centre Dr.,Suite 201 Anchorage, AK 99515 907) 522-2272 Pub: 6/29, 7/6 & 13, 2014. Ad#10187685 In the Matter of the Trust Administration of RENATE C. SCHNELL, Deceased. NOTICE TO CREDITORS Pursuant to AS 13.36.368, notice is hereby given that Scott D. Schnell has been appointed Trustee of the Renate C. Schnell Administrative Trust dated February 21, 2014 (the “Trust”). All persons having claims against the trust are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. DATED this 23rd day of June, 2014. DURRELL LAW GROUP, P.C. Attorneys for Scott D.Schnell, Trustee By/s/Ann M. Bruner Durrell Law Group, P.C. 1400 West Benson Blvd., Suite 370 Anchorage, Alaska 99503 Alaska Bar Association No. 9410085 Pub: 7/6, 7/13 & 20, 2014. Ad#10187649

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate of SHIRLEY A. TOTEMOFF, Deceased. Case No. 3AN-14-01311 PR NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that CHARLES W. TOTEMOFF has been appointed personal representative of the above-named estate. All persons having claims against the decedent are required to present their claims

Page 2 • July 13, 2014 • Alaska Journal of Commerce Notice to Creditors within four (4) months after the date of the first publication of this notice or said claims will be forever barred. Claims must be presented to the personal representative c/o Tindall Bennett & Shoup, 508 W. 2nd Ave., 3rd Floor, Anchorage, AK 99501. DATED at Anchorage, Alaska, this 18th day of June, 2014. TINDALL BENNETT & SHOUP By:/s/ David H. Shoup Alaska Bar No.8711106 Pub: 6/29,7/6 & 7/13, 2014. Ad#10187559

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In The Matter of the Estate of: EARL LEROY THOMPSON, Deceased. Case No.: 3AN-14-1083 PR NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that the undersigned has been appointed personal representative of the above-named estate. All persons having claims against the said deceased are required to present their claim within four (4) months after the date of the first publication of this Notice or said claims will be forever barred. Claims must either be presented to the Personal Representative, c/o Law Office of Curtis W. Patteson, LLC, 2525 Blueberry Road, Ste. 102, Anchorage, Alaska 99503, or filed with the court. DATED AT Anchorage, Alaska, this 27th day of May, 2014. By:/s/George Demaris c/o Law Office of Curtis Patteson, LLC 2525 Blueberry Road, Ste. 102 Anchorage, Alaska 99503 (907) 306-9166 Pub: 6/29, 7/6 & 13, 2014. Ad#10187529

In the Matter of the Trust Administration of RAYMOND E. STEWART, Deceased. NOTICE TO CREDITORS Pursuant to AS 13.36.368, notice is hereby given that Scott D. Stewart has been appointed Trustee of the Raymond E. Stewart Administrative Trust (the “Trust”). All persons having claims against the trust are re quired to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred. DATED this 14th day of June, 2014. DURRELL LAW GROUP, P.C. Attorneys for Scott D. Stewart, Trustee By:/s/Brian W. Durrell Durrell Law Group, LLC 1400 West Benson Blvd., Suite 370 Anchorage, Alaska 99503 Alaska Bar Association No. 8306031 Pub: 6/29, 7/6 & 13, 2014. Ad #10187500

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT IN PROBATE In the Matter of the Estate of Marjorie L. Kurtz, Deceased. Case No. 3AN-14-01247 PR NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that the undersigned has been appointed Personal Representative of the above-named estate. All persons having claims against the said Deceased are required to present their claims within four (4) months after the date of the first publication of this notice or said claims will be forever barred. Claims must be presented to Steven C. Kurtz, Personal Representative, c/o Woelber, Jacobson & Passard, LLC, Attention: Christina M. Passard, 4241 B Street, Suite 201, Anchorage, Alaska 99503, or filed with the Court. Dated this 16th day of June, 2014. Woelber, Jacobson & Passard, LLC Attorneys Personal Representative By:/s/Christina M. Passard Alaska Bar No. 0511095 Pub: 6/29, 7/6 &13, 2014. Ad#10187499

Petition for Change of Name NOTICE OF PETITION TO CHANGE NAME A petition has been filed in the Superior Court (Case #3AN-14-07677CI) requesting a name change from (current name) Anthea Rowan Ohana to

July 13, 2014 • Alaska Journal of Commerce

• Page B21

Petition for Change of Name

Notice to Absent Defendant

Notice of Sale and Default

Samuel Rowan Ohana. A hearing on this request will be held on August 19, 2014 at 1:30 pm at Courtroom 15 Boney Courthouse, 303 K Street., Anchorage, AK. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10188123

825 W. 4th Ave. Anchorage, AK 99501. Failure to do so within 30 days after the last date of publication/posting of this notice may result in the court granting a decree of dissolution of marriage as requested in the petition. Dated: 6/30/2014 By:/s/GMakoni Deputy Clerk of Court Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10188027

judgment may be entered against you for the relief demanded in the complaint. This is an action to quiet title to real property in the name of the plaintiff. You have been made a party to this action because you may claim an interest in the subject real property. The real property is described as follows: Lot Eight (8), Block Six (6) PATRICIA SUBDIVISION, Plat No. 69-54, Anchorage Recording District, Third Judicial District State of Alaska. The real property which is vacant is believed to be located on Sparks Avenue, Anchorage, AK. AND for money judgment for costs and attorney fees. Dated: 6/3/2014 By:/s/Pedro Villarreal Deputy Clerk of Court Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187454

chorage Recording District, Third Judicial District, Alaska, describing: The East _ of Lots 11 and 12, Block 27B, Third Addition to the Townsite of Anchorage, according to the Official Plat thereof, filed under Plat Number C-45, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 826 East 13th Avenue, Anchorage, AK 99501. $189,136.89 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187986

Trustor, Margaret A. Swanstrom, an unmarried person, Record Owner, recorded on March 03, 2008 under Reception No. 2008-011134-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit No. 217, Heatherstone Village Condominiums, Phase 1, as identified in the declaration recorded June 3, 1983 in Book 903 at Page 961 and amendments thereto and as shown on floor plans and as-built survey filed under Plat No. 83-191, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as: Unit 217, Heatherstone Village Condominiums Phase I, according to the official maps and floor plans filed as Plat No. 83-191 and as described in Declaration recorded June 3, 1983, Book 903 at Page 961 and any amendments thereto, records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 9300 Arlene Street #217, Anchorage, AK 99502. $120,877.31 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187983

NOTICE OF PETITION TO CHANGE NAME A petition has been filed in the Superior Court (Case #3AN-14-07427CI) requesting a name change from (current name) Jennifer Omadlao Coulson to Jennifer Omadlao Steiner. A hearing on this request will be held on August 02, 2014 at 12:00 pm at Courtroom 15 Boney Courthouse, 303 K Street., Anchorage, AK. Pub: 6/29, 7/06, 13 & 20, 2014. Ad#10187678

NOTICE OF PETITION TO CHANGE NAME A petition has been filed in the Superior Court (Case #3AN-14-07653CI) requesting a name change from (current name) Jaylene Rubio to Jaylene Marie Garza. A hearing on this re quest will be held on August 10, 2014 at 12:00 pm at Courtroom 15 Boney Courthouse, 303 K Street., Anchorage, AK. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187658

NOTICE OF PETITION TO CHANGE NAME A petition has been filed in the Superior Court (Case #3AN-14-07397CI) requesting a name change from (current name) Maureen Louise Forceskie to Maureen Louise O’Donnell. A hearing on this request will be held on August 05, 2014 at 1:30 pm at Courtroom 15 Boney Courthouse, 303 K Street., Anchorage, AK. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187497

Notice to Absent Defendant IN THE DISTRICT COURT OF THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE SEABRIGHT INSURANCE CO. INC. as Subrogee for Ronald Meehan, Plaintiff. vs. Mac McGraham, Merrill McGraham et. al., Defendants Case No. 3KN-14-58CI NOTICE TO ABSENT DEFENDANT To Defendant: Mac McGraham You are hereby summoned and required to file with the court an answer to the complaint filed in this case. Your answer must be filed with the court at 125 Trading Bay Dr. Kenai, AK within 30 days after the last date of publication of this notice. In addition, a copy of your answer must be sent to Plaintiff’s attorney, Elliott T. Dennis, 1503 West 31st Avenue, Suite 201, Anchorage, Alaska 99503. If you fail to file your answer within the required time, a default judgment may be entered against you for the relief demanded in the complaint. This is an action for damages arising for plaintiff’s payment of workers compensation benefit to Ronald Meehan. The relief demanded is an award of damages and imposition of a lien upon payments due to Mr. Meehan. You have been made a party to this action because you were at fault in causing damages offered by plaintiff. Dated 6/25/2014 By:/s/ D. Chappell Deputy Clerk of Court Pub: 7/13, 20, 27 & 8/3, 2014 Ad#10188015

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Dissolution of Marriage of: Apolonio Leonardo Cifuentes and Mirna Veronica Sandoval Natare. CASE NO. 3AN-14-07779CI NOTICE TO ABSENT SPOUSE You are hereby notified that a Petition for Dissolution of Marriage was filed in this court by Apolonio Leonardo Cifuentes on 06/30/2014. The petition states that an incompatibility of temperament has caused the irremediable breakdown of your marriage and that your whereabouts are unknown. You must make your whereabouts known to the court at this address: Anchorage Trial Court Nesbett Courthouse

IN THE DISTRICT/SUPERIOR COURT FOR THE STATE OF ALASKA AT ANCHORAGE Jonathen Lyle Gattenby, Plaintiff. vs. Jacqueline M. Gattenby, Defendant Case No. 3AN-140-7182CI NOTICE TO ABSENT DEFENDANT To Defendant: Jacqueline Mary Gattenby You are hereby summoned and required to file with the court an answer to the compliant filed in this case. Your answer must be filed with the court at 825 W. 4th Ave. Anchorage, AK 99501 within 30 days after the last date of publication of this notice. In addition a copy of your answer must be sent to the plaintiff’s attorney, Jonathen Lyle Gattenby, whose address is: 6629 Fairweather Dr. An chorage, AK. If you fail to file your answer within the required time, a default judgment may be entered against you for relief demanded in the complaint. This is an action for custody. The relief demanded is custody be established. You have been made a party to this action because you are the mother of the child. Dated 6/30/14 By:/s/ P. Rearick Deputy Clerk of Court Pub: 7/6, 13, 20 & 27, 2014. Ad#10187990

IN THE DISTRICT COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE NORTHERN SKIES FEDERAL CREDIT UNION, Plaintiff, vs. TROY P. YOUNG, aka TROY P JONES, Defendant. 3AN-13-11027 CI To Defendant: TROY P. YOUNG aka TROY P. JONES You are hereby summoned and required to file with the Court an answer to the complaint filed in this case. Your answer must be filed with the court at 825 West 4th Avenue, Anchorage, AK 99501 within 30 days after the last date of publication of this notice. In addition, a copy of your answer must be sent to the plaintiff's attorney, Law Office of David D. Clark, 805 West Fireweed Lane, Anch., AK 99503. If you fail to file your answer within the required time, a default judgment may be entered against you for the relief demanded in the complaint. This is an action for collection of money due plaintiff. You have been made a party to this action because you executed the documents which are the basis of these claims. The relief demanded is for money judgment against Troy P. Young aka Troy P. Jones, in the principal sum of $6,942.00, plus interest at the contract rate of 8.05% per annum commencing Nov. 2, 2011 AND for a money judgment for costs and attorney fees. Dated 6-18-2014 By:/s/D. Hale, Deputy Clerk of Court Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187601

IN THE DISTRICT COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE SHERRIE A. ACE, Plaintiffs, vs. ANNIE C. TAGLE, surviving spouse of the Estate of Leopold A. Tagle and Annie C. Tagle, AND URBANA CABESAS, Defendants. Case No. 3AN-14-05388 CI To Defendant: ANNIE A. TAGLE (surviving spouse of the Estate of Leopold A. Tagle and Annie C. Tagle) and URBANA CABESAS You are hereby summoned and required to file with this Court an answer to the complaint filed in this case. Your Answer must be filed with the court at 825 W. 4th Ave, Anchorage, AK 99501 within 30 days after the last date of publication of this notice. In addition, a copy of your answer must be sent to plaintiff’s attorney, Law Office of David D. Clark, 805 West Fireweed Lane, Anch, AK, 99503. If you fail to file your answer within the required time, a default

Notice of Sale and Default NOTICE OF SALE Trustee, Trustee Services of Alaska, Inc., will sell real property for cash to the highest bidder at the Third Judicial District Courthouse in Kenai(125 Trading Bay Drive) on 9/05/2014, at 11:00AM with other sales that may be conducted. Proceeds of sale will be applied to the Deed of Trust naming Parker & Associates as Beneficiary, and James W. Halliday, JR., DMD, LLC. as Trustor(s) recorded on 7/25/2007, under 2007-007893-0, Kenai Recording District, Third Judicial District, State of Alaska, describing the following real property: Lot Three (3) and Block Four (4), ROBINSON GLEN SUBDIVISION, according to Plat No. 83-266, Records of the Kenai Recording District, Third Judicial District, State of Alaska. $118,450.64 is currently due plus interest and costs of foreclosure. Contact TSA, Inc. at 907-283-3007. Pub: 7/13, 20, 27 & 8/3, 2014. Ad# 10188060

NOTICE OF SALE Trustee, Trustee Services of Alaska, Inc., will sell real property for cash to the highest bidder at the Third Judicial District Courthouse in Kenai(125 Trading Bay Drive) on 9/05/2014, at 11:00AM with other sales that may be conducted. Proceeds of sale will be applied to the Deed of Trust naming Parker & Associates as Beneficiary, and James W. Halliday, JR., DMD, LLC. as Trustor(s) recorded on 7/25/2007, under 2007-007891-0, Kenai Recording District, Third Judicial District, State of Alaska, describing the following real property: Lot One (1) and Lot Two (2), Block Five (5) ROBINSON GLEN SUBDIVISION, according to Plat No. 83-266, Records of the Kenai Recording District, Third Judicial District, State of Alaska. (KPB Tax Parcel No. 01214127 & 10214128) $323,602.30 is currently due plus interest and costs of foreclosure. Contact TSA, Inc. at 907-283-3007. Pub: 7/13, 20, 27 & 8/3, 2014. Ad# 10188056

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 28, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Karl V. Geffe, Jr., a married person, Trustor, Karl V. Geffe Jr. a married person, Record Owner, recorded on August 24, 2006 under Reception No. 2006-021736-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 10, Block “D”, OLYMPIC SUBDIVISION, according to the Plat filed February 8, 1977 as Plat Number 77-14; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 3252 South Athena Circle, North Pole, AK 99705. $123,802.47 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10188005

NOTICE OF SALE Yukon Title Company, Inc. is successor trustee under the deed of trust dated September 24, 1996 and executed by Darrin E. Lemons as trustor for the benefit of Connie B. Logan. The deed of trust is recorded September 25, 1997 in Book 1026 at Page 432 and covers real properties lo cated on the Old Richardson Hwy, Fairbanks, Alaska near the intersection with Cushman Street with legal descriptions as follows: Tracts "D-1" and "D-2" of the LEASURE SUBDIVISION, according to the replat of Tracts C and D in Blocks 1 and 2 of the Leasure Subdivision, filed September 24, 1996 as Plat No. 96-109, Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska. A breach of the obligations secured by the deed of trust has occurred in that payment has not been made in accordance with the tenor of the underlying note. The sum now owing on the obligation is in the principal sum of $107,594.76 plus interest at 9.5% per annum from October 12, 2013. The trustee has elected to sell the real property at public auction to satisfy the obligation secured by the deed of trust. The sale will be conducted at the notice board in the lobby of the Rabinowitz Courthouse, 101 Lacey Street, Fairbanks, Alaska at 10:00 AM on September 25, 2014. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale terminated if payment of the sum then in default, other than the principal that would have been due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale stated in the notice of default or to which the sale is postponed and, when notice of default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. Questions concerning the sale may be directed to Kramer and Associates, 542 4th Avenue, Suite 207, Fairbanks, Alaska 99701, telephone 907-888-4098, attorneys for the above-named beneficiary. Yukon Title Company, Inc. - Successor Trustee Dated6-25-2014 By:/s/ Cathy Shuttleworth, its Chief Title Officer Pub:7/13, 20, 27 & 8/3, 2014. Ad#10187984

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on September 2, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Richard L. Robinson, a single person, Trustor, The heirs and devisees of Richard L. Robinson, deceased, subject to the administration of the estate of said decedent, Record Owner, recorded on July 05, 2007 under Reception No. 2007-015163-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 16, Block "F" of the THIRD ADDITION, GORDON SUBDIVISION, according to the plat filed August 20, 1975 as Plat Number 75-120; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 3788 KENSINGTON AVE, NORTH POLE, AK 99705. $143,807.77 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187979

NOTICE OF SALE Yukon Title Company, Inc. is successor trustee under the deed of trust dated July 28, 1997 and executed by Hunter Properties, Inc., an Alaska corporation, as trustor for the benefit of William M. Stewart. The deed of trust is recorded July 29, 1997 in Book 1016 at Page 122 and covers real property located at 440 Old Richardson Hwy, Fairbanks, Alaska with legal description as follows: Tract "C-1" of the LEASURE SUBDIVISION, according to the replat of Tracts C and D in Blocks 1 and 2 of the Leasure Subdivision, filed September 24, 1996 as Plat No. 96-109, Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska. A breach of the obligations secured by the deed of trust has occurred in that payment has not been made in accordance with the tenor of the underlying note. The sum now owing on the obligation is in the principal sum of $535,599.11 plus interest at 6.0% per annum from October 10, 2012.The trustee has elected to sell the real property at public auction to satisfy the obligation secured by the deed of trust. The sale will be conducted at the notice board in the lobby of the Rabinowitz Courthouse, 101 Lacey Street, Fairbanks, Alaska at 10:00 AM on September 25, 2014. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale terminated if payment of the sum then in default, other than the principal that would have been due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale stated in the notice of default or to which the sale is postponed and, when notice of default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. Questions concerning the sale may be directed to Kramer and Associates, 542 4th Avenue, Suite 207, Fairbanks, Alaska 99701, telephone 907-888-4098, attorneys for the above-named beneficiary.

Page B22 • July 13, 2014 • Alaska Journal of Commerce Notice of Sale and Default

Notice of Sale and Default

Yukon Title Company, Inc. - Successor Trustee Dated 6-25-2014. By:/s/ Cathy Shuttleworth, its Chief Title Officer Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187973

trict, State of Alaska, a/k/a 7821 MAYFAIR DRIVE, ANCHORAGE, AK 99502-7206. $318,750.00 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187969

NOTICE OF SALE

Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on September 2, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Roy B Johnson III, a married person, Trustor, Roy B. Johnson III, a married person, Record Owner, recorded on October 28, 2004 under Reception No. 2004-010978-0, Kenai Recording District, Third Judicial District, Alaska, describing: That portion of the Southeast One-quarter of the Southwest One-quarter (SE1/4 SW1/4), of Section 25, Township 4 North, Range 12 West, Seward Meridian, Kenai Re cording District, Third Judicial District, State of Alaska, more particularly described as follows: Com mencing from the Alaska Division of Land 1/4 section corner monument common to Sections 25 and 36; Proceed West along the section line common to Sections 25 and 36 for 75.23 feet to a point on the Westerly edge of the Kalifonsky Beach Road right-of-way, found A.D.L. Monument, this is the True Point of Beginning of said property and Corner No. 1; THENCE continue West along said section line for 470.32 feet to Corner No. 2, set 5/8" x 24" steel tube with cap stamped property corner, 610S; THENCE North 200.00 feet to Corner No. 3, set 5/8" x 24" steel tube with cap stamped property corner, 610S; THENCE East 400.88 feet to Corner No. 4, set 5/8" x 24" steel tube with cap stamped property corner, 610S, this is the point on the Westerly edge of the Kalifonsky Beach Road right-of-way; THENCE along right-of-way line South 19 degrees 09' East 211.72 feet to Corner No. 1 and the True Point of Beginning; more accurately described as That portion of the Southeast One-quarter of the Southwest One-Quarter (SE1/4 SW1/4), of Section 25, Township 4 North, Range 12 West, Seward Meridian, Kenai Recording District, Third Judicial District, State of Alaska, more particularly described as follows: Commencing from the Alaska Division of Land 1/4 section corner monument common to Sections 25 and 36; Proceed West along the section line common to Sections 25 and 36 for 75.23 feet to a point on the Westerly edge of the Kalifornsky Beach Road right-of-way, found A.D.L. Monument, this is the True Point of Beginning of said property and Corner No. 1; Thence continue West along said section line for 470.32 feet to Corner No. 2, set 5/8" x 24" steel tube with cap stamped property corner, 610S; Thence North 200.00 feet to Corner No. 3, set 5/8" x 24" steel tube with cap stamped property corner, 610S; Thence East 400.88 feet to Corner No. 4, set 5/8" x 24" steel tube with cap stamped property corner, 610S, this is the point on the Westerly edge of the Kalifornsky Beach Road right-of-way; Thence along right-of-way line South 19 degrees 09' East 211.72 feet to Corner No. 1 and the True Point of Beginning, a/k/a 29537 KALIFORNSKY BEACH RD, KASILOF, AK 99610. $151,009.26 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187968

Plat No. 85-199 and as described in Declaration recorded January 6, 1984, Book 1029 at Page 36 and any amendments thereto, records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 629 King Arthur Circle, Anchorage, AK 99518. $187,540.87 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187988

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on September 3, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Michael D. Muth and Emma J. Muth, husband and wife, Trustor, Michael D. Muth and Emma J. Muth, husband and wife, Record Owner, recorded on July 18, 2007 under Reception No. 2007-018002-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot three (3), Block ten (10), Memory Lake Estates - Unit 1, according to Plat No. 72-58, located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 1940 East Caribou Loop, Wasilla, AK 99654. $150,491.55 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187975

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on September 4, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming George A. Curren and Kitty A. Curren, husband and wife, and Sandy Kelly, an unmarried person, Trustor, Sandy Kelly, an unmarried woman, as to an undivided one-half (1/2) interest, and Kitty A. Curren, surviving tenant of the estate of George A. Curren and Kitty A. Curren, husband and wife, Record Owner, recorded on November 28, 1986 in Book 1530, on Page 954, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot Two (2), Block Forty-One “B”(41-B), South Addition to the Townsite of Anchorage, according to the Official Plat thereof, filed under Plat No. C-54, Records of the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as: Lot 2, Block 41B, Plateau Heights Subdivision, according to the Official Plat thereof, filed under Plat No. C-54, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 1510 and 1510 1/2 E Street, Anchorage, AK 99501. $38,473.12 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187971

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on September 2, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Randy L. Roosdett, a married man, Trustor, The heirs and devisees of Randy L. Roosdett, deceased, subject the administration of the estate of said decedent, Record Owner, recorded on September 30, 2004 under Reception No. 2004-073782-0, ANCHORAGE Recording District, Third Judicial District, Alaska, describing: Lot Thirteen (13), Block Two (2) of STRAWBERRY MEADOWS SUBD., according to Plat 83-159, filed in the Anchorage Recording District, Third Judicial Dis-

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 29, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Sean C. Bliss and Chanelle L. Bliss, husband and wife, Trustor, Sean C. Bliss and Chanelle L. Bliss, husband and wife, Record Owner, recorded on March 18, 2010 under Reception No. 2010-012063-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit No. One (1), Building “H”, Briarcliff Condominiums Phases II & III, as identified in the Declaration recorded June 17, 1985 in Book 1254 at Page 54 and Amendments thereto and as shown on Floor Plans and as-built survey filed under Plat No. 85-199, in the Records of the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as follows: Unit 1, Building H, Briarcliff Condominiums Phases II & III, according to the official maps and floor plans filed as

NOTICE OF SALE Yukon Title Company, Inc., is successor trustee under the deed of trust dated February 13, 2012 and executed by Ian Miller as trustor for the benefit of Lee A. Peet. The deed of trust is recorded as Instrument Number 2012-002453-0 and covers real property described as follows: U.S. Survey No. 3001, located 3 1/2 miles west of the Alaska-Canada border at Boundary, Fairbanks Recording District, Fourth Judicial District, State of Alaska. Subject to the Easement recorded November 25, 2009 as Instrument Number 2009-023017-0 and the Commissioner's Deed of Vacation recorded November 30, 2009 as Instrument Number 2009-023282-0. A breach of the obligations secured by the deed of trust has occurred in that payment has not been made in accordance with the tenor of the underlying note. The sum now owing on the obligation is in the principal sum of $95,116.92 plus interest at 6.5% per annum from November 1, 2012. The trustee has elected to sell the real property at public auction to satisfy the obligation secured by the deed of trust. The sale will be conducted at the notice board in the lobby of the Rabinowitz Courthouse, 101 Lacey Street, Fairbanks, Alaska at 10:00 AM on October 1, 2014. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale terminated if payment of the sum then in default, other than the principal that would have been due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale stated in the notice of default or to which the sale is postponed and, when notice of default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. Questions concerning the sale may be directed to Barry Donnellan, 937 8th Avenue, Fairbanks, Alaska 99701, telephone 907-456-2309, attorney for the above-named beneficiary. Yukon Title Company, Inc., Successor Trustee Dated 6-30-2014 By:/s/ Cathy Shuttleworth, its Chief Title Officer Pub:7/13, 20, 27 & 8/3, 2014. Ad#10187987

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 29, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Frank L. Barrus and Barbara Barrus, husband and wife, Trustor, George Elkins, a married person, Record Owner, recorded on June 25, 2007 under Reception No. 2007-040268-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit No. 15, Kendall Crossing Condominium Phase 1, as identified in the Declaration recorded June 26, 2002 under Serial Number 2002-040318-0, and Amendments thereto and as shown on Floor Plans and As-Built Survey filed under Plat No. 2002-60, in the office of the Recorder for the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as: Unit 15, Kendall Crossing Condominiums Phase No. 1, according to the Official Maps and Floor Plans filed as Plat No. 2002-60 and as described in Declaration recorded June 17, 2002, as Serial Number 2002-040318-0 and any Amendments thereto, Records of the An chorage Recording District, Third Judicial District, State of Alaska, a/k/a 3356 Kendall Loop #15, Anchorage, AK 99507. $169,321.42 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187991

July 13, 2014 • Alaska Journal of Commerce Notice of Sale and Default NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 29, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Justin D. McFatridge, a married person, Trustor, Justin D. McFatridge, a married person, Record Owner, recorded on September 02, 2011 under Reception No. 2011-016951-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 2, Block 3, Donovan Estates, according to the official Plat thereof filed under Plat No. 77-80, in the records of the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 2460 South Teeland Street, Wasilla, AK 99654. $170,763.25 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10187996

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 27, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Delissa Kinsey, a married person, Trustor, Delissa Kinsey, a married person, Record Owner, recorded on December 28, 2011 under Reception No. 2011-025532-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Parcel Number 1 of STONEMAN SUBDIVISION, according to the Plat filed February 5, 1971 as Instrument No. 71-750; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 2490 Stoneman Lane, North Pole, AK 99705. $156,211.45 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10188003

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 27, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Eric T. Bitzer, a married person, Trustor, Eric T. Bitzer and Janet L. Bitzer, husband and wife, Record Owner, recorded on August 08, 2005 under Reception No. 2005-055233-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit Two (2) of Park Way Condominiums, as shown on the Floor Plan(s) filed in the office of the Recorder for the Anchorage Recording District, Third Judicial District, State of Alaska, under Plat No. 84-346, and as identified in the Declaration recorded October 3, 1984, in Book 1168 at Page 33, and any Amendments thereto. More accurately described as: Unit 2, Park Way Condominiums, according to the Official Maps and Floor Plans filed as Plat No. 84-346 and as described in Declaration recorded October 3, 1984, Book 1168 at Page 33 and any Amend ments thereto, Records of the An chorage Recording District, Third Judicial District, State of Alaska, a/k/a 16935 Park Place Street, Eagle River, AK 99577. $168,929.80 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/13, 20, 27 & 8/3, 2014. Ad#10188009

NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Trustee's Sale No: 04-FEE-130701 This NOTICE OF DEFAULT AND ELECTION TO SELL is given by REGIONAL TRUSTEE SERVICES CORPORATION, as Successor Trustee under that certain Deed of Trust executed by HANS D. FISCHER, A MARRIED PERSON, as Trustor, to YUKON TITLE COMPANY, INC., as Trustee, in favor of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. AS NOMINEE FOR RESIDENTIAL MORTGAGE, LLC, LIMITED LIABILITY COMPANY, ITS SUCCESSORS AND ASSIGNS, as Beneficiary, dated 4/20/2011, recorded 4/21/2011 under Instrument No. 2011-006805-0, in the FAIRBANKS Recording District, State of ALASKA. The beneficial interest in the Deed of Trust has been assigned to EVER BANK and the record owner of the property is purported to be HANS D. FISCHER AND ROSALIA FISCHER, HUSBAND AND WIFE. Said Deed of Trust covers real property situated in said Recording District, described as

Notice of Sale and Default follows: UNIT NO. 119, BUILDING NO. 39, WALDEN ESTATES PHASE 2, A PLANNED COMMUNITY, AS IDENTIFIED IN THAT CERTAIN DECLARATION RECORDED FEBRUARY 17, 2010 AS INSTRUMENT NO. 2010-002369-0, AND AMENDMENT NO. 1 TO DECLARATION RECORDED MAY 26, 2010, AS INSTRUMENT NO. 2010-008695-0, ACCORDING TO THE PLAT FILED MAY 26, 2010 AS PLAT NO. 2010-55, RECORDS OF THE FAIRBANKS RECORDING DISTRICT, FOURTH JUDICIAL DISTRICT, STATE OF ALASKA. Commonly referred to as 1246 SUTTON LOOP, , FAIRBANKS, AK 99701. A breach of the obligation which said Deed of Trust secures has occurred in that FAILURE TO MAKE PAYMENT OF $1,597.64 WHICH BECAME DUE ON *7/1/2013*, AND ALL SUBSEQUENT PAYMENTS THEREAFTER, TO GETHER WITH LATE CHARGES AND ADVANCES, IF ANY; ANY ADVANCES WHICH MAY HEREAFTER BE MADE; AND ALL OBLIGATIONS AND IN DEBTEDNESSES AS THEY BECOME DUE.. By reason thereof, and under the terms of the Note and Deed of Trust, the Beneficiary has declared all sums so secured to be immediately due and payable, together with any trustee fees, attorney fees, costs and advances made to protect the security associated with this foreclosure. There is presently due and owing the principal balance of $169,176.69, plus interest, late charges, costs and any future advances. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale may be terminated if: 1. payment of the sum in default, other than the principal that would not be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed; and 2. if Notice of Default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. NOTICE IS HEREBY GIVEN that pursuant to demand of the Beneficiary, the Trustee hereby elects to sell the above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE LOBBY OF THE FAIRBANKS COUNTY COURTHOUSE, 101 LACEY STREET, FAIRBANKS, AK, on September 24, 2014 at 10:00 AM. Beneficiary will have the right to make an offset bid at sale without cash. Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same. DATED: 6/19/2014 REGIONAL TRUSTEE SERVICES CORPORATION, Trustee By:/s/ MELANIE BEAMAN, AUTHORIZED AGENT Pub: 7/6, 13, 20 & 27, 2014. Ad#10187827

NOTICE OF SALE Real Property will be sold for cash to the highest bidder at Public Auction at the South Front Door of the SUPERIOR COURT HOUSE, located at 435 SOUTH DENALI STREET, PALMER, AK 99645 on AUGUST 26, 2014 at 11:00 a.m. Proceeds of the sale will be applied to costs incurred in the foreclosure and to satisfy amounts due under the Deed of Trust recorded OCTOBER 13, 2010, UNDER SERIAL NO. 2010-020308-0 naming, ROBERT B. BLISS AND TAMERA L. BLISS as Trustors, VALLEY FORECLOSURE SERVICE as Trustee and JACKSON BOULEVARD, LLC. as Beneficiary. Said Deed affects real property commonly known as: LOT 4, BLOCK 3, BIG MEADOW SHORES SUBDIVISION, ACCORDING TO PLAT NO. 70-44, LOCATED IN THE PALMER RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA. AKA 2765 N. ALMA DRIVE, WASILLA, AK 99623 The amount due under the Deed of Trust and Note is: $10,045.45 plus interest, taxes and fees due thereunder, on said real property. VALLEY FORECLOSURE SERVICE By:/s/Kathy James, Owner (907) 357-8700 Pub: 7/6, 13, 20 & 27, 2014 Ad#10187855

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Notice of Sale and Default NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Trustee's Sale No: 04-RCF-132127 This NOTICE OF DEFAULT AND ELECTION TO SELL is given by REGIONAL TRUSTEE SERVICES CORPORATION, as Successor Trustee under that certain Deed of Trust executed by GAYLIN STINER AND THERESA STINER, as Trustor, to FIRST AMERICAN TITLE INS. CO., as Trustee, in favor of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS NOMINEE FOR TAYLOR, BEAN & WHITAKER MORTGAGE CORP., ITS SUCCES SORS AND ASSIGNS, as Beneficiary, dated 1/2/2007, recorded 1/18/2007 under Instrument No. 2007-004049-0, in the ANCHORAGE Recording District, State of ALASKA. The beneficial interest in the Deed of Trust has been assigned to Nationstar Mortgage LLC and the record owner of the property is purported to be GAYLIN STINER AND THERESA STINER. Said Deed of Trust covers real property situated in said Recording District, described as follows: LOT FIVE (5), BLOCK ONE (1) OF BRENDLWOOD SUBDIVISION, ACCORDING TO PLAT 83-315, FIELD IN THE ANCHORAGE RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA. Commonly referred to as 10820 KLUTINA CIRCLE, , EAGLE RIVER, AK 99577. A breach of the obligation which said Deed of Trust secures has occurred in that FAILURE TO MAKE PAYMENT OF $1328.99 WHICH BECAME DUE ON *10/1/2013*, AND ALL SUBSEQUENT PAYMENTS THEREAFTER, TO GETHER WITH LATE CHARGES AND ADVANCES, IF ANY; ANY ADVANCES WHICH MAY HEREAFTER BE MADE; AND ALL OBLIGATIONS AND IN DEBTEDNESSES AS THEY BECOME DUE.. By reason thereof, and under the terms of the Note and Deed of Trust, the Beneficiary has declared all sums so secured to be immediately due and payable, together with any trustee fees, attorney fees, costs and advances made to protect the security associated with this foreclosure. There is presently due and owing the principal balance of $258,541.51, plus interest, late charges, costs and any future advances. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale may be terminated if: 1. payment of the sum in default, other than the principal that would not be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed; and 2. if Notice of Default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. NOTICE IS HEREBY GIVEN that pursuant to demand of the Beneficiary, the Trustee hereby elects to sell the above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE MAIN LOBBY OF NESBETT MEMORIAL COURTHOUSE, 825 W. 4TH AVENUE, ANCHORAGE, AK, on September 17, 2014 at 10:00 AM. Beneficiary will have the right to make an offset bid at sale without cash. Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same. DATED: 6/11/2014 REGIONAL TRUSTEE SERVICES CORPORATION, Trustee By:/s/MELANIE BEAMAN, AUTHORIZED AGENT Pub: 7/6, 13, 20 & 27, 2014. Ad#10187844

NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Trustee's Sale No: 04-FSL-132884 This NOTICE OF DEFAULT AND ELECTION TO SELL is given by REGIONAL TRUSTEE SERVICES CORPORATION, as Successor Trustee under that certain Deed of Trust executed by MARGARET V EDMISSON, AN UMARRIED WOMAN, as Trustor, to FIDELITY, as Trustee, in favor of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS NOMINEE FOR COUNTRYWIDE HOME LOANS, INC., ITS SUCCESSORS AND ASSIGNS, as Beneficiary, dated 3/29/2007, re -

Page 4 • July 13, 2014 • Alaska Journal of Commerce

July 13, 2014 • Alaska Journal of Commerce

• Page B23

Notice of Sale and Default

corded 4/6/2007 under Instrument No. 2007-006722-0, in the FAIR BANKS Recording District, State of ALASKA. The beneficial interest in the Deed of Trust has been assigned to The Bank of New York Mellon FKA The Bank of New York, as Trustee for the certificateholders of the CWABS, Inc., ASSET-BACKED CERTIFICATES, SERIES 2007-8 and the record owner of the property is purported to be MARGARET V EDMISSON, AN UMARRIED WOMAN. Said Deed of Trust covers real property situated in said Recording District, described as follows:

should be consulted for important details regarding bidding rules and procedures well prior to the day of the sale. The real property covered by the Deed of Trust and to be sold is described as: Lot 2, Block 3, TARA ESTATES, according to Plat No. 2008-78, located in the Palmer Recording District, Third Judicial District, State of Alaska. Street addr: 15171 W. Drowsy Drive, Big Lake, AK 99652; and Lot 6, Block 3, TARA ESTATES, according to Plat No. 2008-78, located in the Palmer Recording District, Third Judicial District, State of Alaska. Prop. addr: 15029 W. Drowsy Drive, Big Lake, AK 99652 The amount due under the deed of trust is the principal sum of $20,000.00, plus interest at 8.0% accruing from September 11, 2009 until paid in full, plus any sums properly advanced or expended under the terms of the Deed of Trust with interest as therein provided. Beneficiary will have the right to bid by offset without cash in an amount not greater than the balance owed on the obligation at the time of sale including all sums expended by beneficiary and trustee under the deed of trust, with interest thereon. Except for said offset bid(s), no one will be permitted to bid until the person conducting the sale for the trustee has verified that the prospective bidder has "cash" funds (as defined above) equal to their bid amount, on hand at the time of the sale. The parcels will be auctioned in bulk and separately, with the actual sale being made to the party(s) making the highest aggregate bid. Direct inquiries to the Law Office of James H. McCollum, LLC, 400 L Street, Suite 100, Anchorage, Alaska 99501, ph: 907-770-7773. FIRST AMERICAN TITLE INSURANCE COMPANY By:/s/Ruth Roschlau Pub: 7/6, 13, 20 & 27, 2014. Ad#10187777

actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed. To determine the current amount required to be paid to cure the default and reinstate the payment terms of the note, you may call 777-3392 or send an e-mail to hgraham@fnbalaska.com. Provided, however, if notice of default has been recorded two or more times previously under the deed of trust described above and the default has been cured, the trustee may not elect to refuse payment and continue the sale. The Heirs or Devisees of Danielle C. Nagle may be: Peter D. Nagle Mark K. Nagle Yuri S. Nagle Simon Jong Nam Nagle James Suri Nagle Remi Nagle Dated this 20th day of May, 2014 Fidelity Title Agency of Alaska, Trustee Leslie Plikat, Agent Pub: 7/6, 13, 20 & 27, 2014. Ad #10187778

553 and Amendments thereto, if any. More accurately described as: Unit 190, Stonegate Condominiums, Phase II, according to the Official Maps and Floor Plans filed as Plat No. 76-290 and as described in Declaration recorded June 13, 1975, in Book 26 at Page 553 and any Amendments thereto, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 9566 Canton Loop, Anchorage, AK 99515. $126,326.51 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187722

the Deed of Trust naming Jenet M. Hawks and Michael G. Hawks, wife and husband, Trustor, Jenet M. Hawks and Michael G. Hawks, wife and husband, Record Owner, re corded on November 12, 2008 under Reception No. 2008-062622-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot 20A, Block 3 of Baranof Woods Subdivision, according to Plat 82-270, filed in the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as: Lot 20A, Block 3, Baranof Woods Subdivision, according to the Official Plat thereof, filed under Plat Number 82-270, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 6816 Cape Lisburne Loop, Anchorage, AK 99504. $207,222.99 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad#10187723

Nixon, who also appears of record as Gretchen E. Jessup, an unmarried person, Record Owner, recorded on April 27, 2006 under Reception No. 2006-026938-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot Twenty-nine (29), Block Two (2), TURNAGAIN WEST SUBDIVISION, according to the official plat thereof, filed under Plat No. 79-104, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska., a/k/a 3940 Woronzof Drive, Anchorage, AK 99517. $276,401.40 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad#10187705

LOT 5, BLOCK "H" FIRST ADDITION TO SHANNON PARK SUBDIVISION, ACCORDING TO THE PLAT FILED APRIL 2, 1982 AS PLAT NO. 82-52; RECORDS OF THE FAIRBANKS RECORDING DISTRICT, FOURTH JUDICIAL DISTRICT, STATE OF ALASKA. Commonly referred to as 1236 D STREET, , FAIRBANKS, AK 99701-3281. A breach of the obligation which said Deed of Trust secures has occurred in that FAILURE TO MAKE PAYMENT OF $1,714.28 WHICH BECAME DUE ON *10/1/2007*, AND ALL SUBSEQUENT PAYMENTS THEREAFTER, TO GETHER WITH LATE CHARGES AND ADVANCES, IF ANY; ANY ADVANCES WHICH MAY HEREAFTER BE MADE; AND ALL OBLIGATIONS AND IN DEBTEDNESSES AS THEY BECOME DUE.. By reason thereof, and under the terms of the Note and Deed of Trust, the Beneficiary has declared all sums so secured to be immediately due and payable, together with any trustee fees, attorney fees, costs and advances made to protect the security associated with this foreclosure. There is presently due and owing the principal balance of $138,547.49, plus interest, late charges, costs and any future advances. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale may be terminated if: 1. payment of the sum in default, other than the principal that would not be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed; and 2. if Notice of Default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. NOTICE IS HEREBY GIVEN that pursuant to demand of the Beneficiary, the Trustee hereby elects to sell the above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE LOBBY OF THE FAIRBANKS COUNTY COURTHOUSE, 101 LACEY STREET, FAIRBANKS, AK, on at . Beneficiary will have the right to make an offset bid at sale without cash. Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same. DATED: 6/4/2014 REGIONAL TRUSTEE SERVICES CORPORATION, Trustee By:/s/ MELANIE BEAMAN, AUTHORIZED AGENT Pub: 7/6, 13, 20 & 27, 2014. Ad#10187833

TO THE HEIRS OR DEVISEES OF DANIELLE C. NAGLE AND OTHERS WITH AN INTEREST IN THE REAL PROPERTY DESCRIBED BELOW NOTICE OF DEFAULT AND DEED OF TRUST FORECLOSURE SALE Fidelity Title Agency of Alaska, Trustee, as substitute trustee for Kachemak Bay Title Agency, Inc., recorded May 21, 2014 as Instrument No. 2014-001368-0, now gives notice of default under the deed of trust executed by Danielle C. Nagle and Peter D. Nagle, Trustors, in favor of First National Bank Alaska, Beneficiary, recorded on May 2, 2005 at Instrument No. 2005-001775-0, in the Homer Recording District, Third Judicial District, State of Alaska encumbering the following property: Lot 6, NEWELL PARK, according to the official plat thereof, filed under Plat Number 96-32, Records of the Homer Recording District, Third Judicial District, State of Alaska. The address of the property is 55195 Finch Street, Homer, AK 99603.Trustors are in default as payment of the secured note is five months or more past due and late charges are also past due in the amount of $209.12. The balance due on the note is the principal sum of $24,681.12 plus interest from December 3, 2013 as provided in the Note plus any prepayment premium, late charges, attorneys' fees and costs of sale and other sums as provided in the deed of trust. YOU ARE NOTIFIED that Fidelity Title Agency of Alaska, Trustee, by demand of beneficiary, hereby elects to sell the real property described above to satisfy the obligations secured thereby at an auction sale to be held on August 26, 2014, in the main lobby of the Anchorage Superior Courthouse at 825 W. 4th Avenue, Anchorage, Alaska. The sale may be held with other sales as Trustee may conduct which shall begin at 10:00 a.m. and continue until complete. Payment must be made at the time of sale in cash or by cashier's check. Beneficiary may enter a credit offset bid consisting of sums due it under the deed of trust security agreement and note. Title to the real property will be conveyed by trustee's quitclaim deed without warranties of title. YOU ARE FURTHER NOTIFIED that if default has arisen by failure to make payments required under the promissory note and/or the deed of trust, the default may be cured and this sale terminated if payment of the sum then in default, other than principal that would not then be due if default had not occurred, and attorneys and other foreclosure fees and costs

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 21, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Terrill E. Scott and Dawn M. Scott, husband and wife, Trustor, Terrill E. Scott and Dawn M. Scott, husband and wife, Record Owner, recorded on September 22, 2006 under Reception No. 2006-064469-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit No. 54, Building 15, Whisperwood Commons, Phase 7, as shown on Floor Plans filed under Plat No. 2006-79, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska, and as described in the Declaration recorded May 11, 2005 as Instrument No. 2005-031325-0 and Amendments thereto, if any. More accurately described as: Unit 54, Building 15, Whisperwood Commons, Phase 7, according to the Official Maps and Floor Plans filed as Plat No. 2006-79 and as described in Declaration recorded May 11, 2005, as Serial Number 2005-031325-0 and any Amendments thereto, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 145 Rusty Allen Place, Anchorage, AK 99504. $136,281.41 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad#10187789

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 27, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Jonathan A Rumfelt, a married person, Trustor, Jonathan A. Rumfelt and Sarah L. Rumfelt, husband and wife, Record Owner, recorded on August 22, 2007 under Reception No. 2007-019483-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot Five (5), Block 'G', GORDON SUBDIVISION, THIRD ADDITION, according to the plat filed August 20, 1975 as Plat Number 75-120; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 3921 BLESSING AVE, NORTH POLE, AK 99705. $190,746.09 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187728

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 22, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Nikolay A. Mozalevskiy and Olga V. Shamina, Trustor, Nikolay A. Mozalevskiy and Olga Mozalevskaya, also appearing of record as Olga V. Shamina, husband and wife, Record Owner, recorded on April 21, 2005 under Reception No. 2005-009588-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 2, Block 3, UTOPIA MEADOWS, according to Plat No. 2004-159, located in the Palmer Recording District, Third Judical District, State of Alaska; more accurately described as Lot 2, Block 3, UTOPIA MEADOWS, according to Plat No. 2004-159 and as re-filed as Plat No. 2005-56, located the Palmer Recording District, Third Judical District, State of Alaska, a/k/a 2660 E TAMARACK AVE, WASILLA, AK 99654. $275,380.43 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187725

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 25, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Gloria VanValen, a married person, Trustor, Gloria VanValen, a married person, Record Owner, recorded on February 11, 2008 under Reception No. 2008-006945-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot 12, Block 1, GRANDE TERRE SUBDIVISION, according to the official plat thereof, filed under Plat Number 98-124, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 2011 Terrebonne Loop, Anchorage, AK 99502. $259,379.42 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187726

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 28, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Jose A. Contreras, an unmarried person, Trustor, Jose A. Contreras, an unmarried person, Record Owner, recorded on December 21, 2006 under Reception No. 2006-085645-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot 34A, Block 2, SATELLITE PARK SUBDIVISION, ADDITION 1, according to the official plat thereof, filed under Plat Number 82-88, Records of the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as Lot 34A, Block 2, SATELLITE PARK SUBDIVISION, ADDITION NO. 1, according to the official plat thereof, filed under Plat Number 82-88, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 4255 Cosmos Drive, Anchorage, AK 99517. $153,925.04 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187733

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 28, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Darrell Louis Drew, an unmarried person, Trustor, Darrell Louis Drew, an unmarried person, Record Owner, recorded on June 15, 2011 under Reception No. 2011-011243-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 30, Block 13, SETTLERS BAY SUBDIVISION NO. 2. according to the official plat thereof, filed under Plat No. 77-17, Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 6671 S FRONTIER DRIVE, WASILLA, AK 99654. $185,596.61 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187731

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 18, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming James S. Dann and Brittany I. Dann, husband and wife, Trustor, James S. Dann and Brittany I. Dann, husband and wife, Record Owner, recorded on November 21, 2011 under Reception No. 2011-022832-0 and Modified by Agreement Recorded November 1, 2013 under Reception No. 2013-020173-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 5A of a Replat of Lots 4 - 8, D & L SUBDIVISION, according to the plat filed April 3, 2007 as Plat No. 2007-56; records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 2976 Badger Road, North Pole, AK 99705. $236,175.93 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad#10187706

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on July 25, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming William J. Nixon and Gretchen E. Nixon, Husband and Wife, Trustor, Gretchen E.

*AMENDED* NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Trustee's Sale No: 04-BT-130545

This NOTICE OF DEFAULT AND ELECTION TO SELL is given by REGIONAL TRUSTEE SERVICES CORPORATION, as Successor Trustee under that certain Deed of Trust executed by SCOTT E SPENCER, A MARRIED MAN, as Trustor, to CTC REAL SERVICES, as Trustee, in favor of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS NOMINEE FOR COUNTRYWIDE HOME LOANS, INC., ITS SUCCESSORS AND ASSIGNS, as Beneficiary, dated 11/22/2004, re corded 11/29/2004 under Instrument No. 2004-026788-0, in the FAIR BANKS Recording District, State of ALASKA. The beneficial interest in the Deed of Trust has been assigned to BANK OF AMERICA, N.A., SUCCESSOR BY MERGER TO BAC HOME LOANS SERVICING, LP FKA COUNTRYWIDE HOME LOANS SERVICING, LP and the record owner of the property is purported to be SCOTT E. SPENCER, AN UNMARRIED PERSON. Said Deed of Trust covers real property situated in said Recording District, described as follows: LOT 11, BLOCK 6, SEAVY SUBDIVISION, ACCORDING TO THE PLAT FILED JULY 14, 1976 AS PLAT NO. 76-86; RECORDS OF THE FAIRBANKS RECORDING DISTRICT, FOURTH JUDICIAL DISTRICT, STATE OF ALASKA. Commonly referred to as 3649 SILVERLEAF AVENUE, , NORTH POLE, AK 99705. A breach of the obligation which said Deed of Trust secures has occurred in that FAILURE TO MAKE PAYMENT OF $124,328.06 WHICH BECAME DUE ON *8/1/2013*, AND ALL SUBSE QUENT PAYMENTS THEREAFTER, TOGETHER WITH LATE CHARGES AND ADVANCES, IF ANY; ANY ADVANCES WHICH MAY HEREAFTER BE MADE; AND ALL OBLIGATIONS AND INDEBTEDNESSES AS THEY BECOME DUE.. By reason thereof, and under the terms of the Note and Deed of Trust, the Beneficiary has declared all sums so secured to be immediately due and payable, together with any trustee fees, attorney fees, costs and advances made to protect the security associated with this foreclosure. There is presently due and owing the principal balance of $124,328.06, plus interest, late charges, costs and any future advances. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale may be terminated if: 1. payment of the sum in default, other than the principal that would not be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed; and 2. if Notice of Default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. NOTICE IS HEREBY GIVEN that pursuant to demand of the Beneficiary, the Trustee hereby elects to sell the above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE LOBBY OF THE FAIRBANKS COUNTY COURTHOUSE, 101 LACEY STREET, FAIRBANKS, AK, on September 15, 2014 at 10:00 AM. Beneficiary will have the right to make an offset bid at sale without cash. Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same.

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July 13, 2014 • Alaska Journal of Commerce

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Notice of Sale and Default

DATED: 6/11/2014 REGIONAL TRUSTEE SERVICES CORPORATION,Trustee By:/s/ MELANIE BEAMAN, AUTHORIZED AGENT Pub: 7/6, 13, 20 & 27, 2014. Ad#10187696

above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE LOBBY OF THE FAIRBANKS COUNTY COURTHOUSE, 101 LACEY STREET, FAIRBANKS, AK, on September 15, 2014 at 10:00 AM. Beneficiary will have the right to make an offset bid at sale without cash. Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same. DATED: 6/11/2014 REGIONAL TRUSTEE SERVICES CORPORATION, Trustee By MELANIE BEAMAN, AUTHORIZED AGENT Pub: 6/29, 7/6, 13 & 20, 2014. Ad # 10187589

Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same. DATED: 6/11/2014 REGIONAL TRUSTEE SERVICES CORPORATION, Trustee By:/s/MELANIE BEAMAN, AUTHORIZED AGENT Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187603

17, 2013, until paid in full, plus late charges of $103.00 per month beginning July 30, 2013, plus $530.00, plus any sums properly advanced or expended under the terms of the Deed of Trust with interest as therein provided. Beneficiary will have the right to bid by offset without cash in an amount not greater than the balance owed on the obligation at the time of sale including all sums expended by beneficiary and trustee under the deed of trust, with interest thereon. Except for said offset bid(s), no one will be permitted to bid until the person conducting the sale for the trustee has verified that the prospective bidder has "cash" funds (as defined above) equal to their bid amount, on hand at the time of the sale. Direct inquiries to the Law Office of James H. McCollum, LLC, 400 L Street, Suite 100, Anchorage, Alaska 99501, ph: 907-770-7773. Pub: 6/29,7/6, 13 & 20, 2014. Ad# 10187583

2010-023832-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 6, Block “D”, Shannon Park Subdivision, according to the revised Plat filed September 13, 1978 as Plat No. 78-144; records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 305 Cindy Drive, Fairbanks, AK 99701. $284,244.88 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187546

WOOD ESTATES SUBDIVISION, DIVISION 2, according to Plat No. 81-191, located in the Palmer Recording District, Third Judicial District, State of Alaska. More accurately described as: Lot 17, Block 2, SCOTWOOD ES TATES SUBDIVISION, DIVISION 2, according to the official plat thereof, filed under Plat Number 81-191, Records of the Palmer Recording District, Third Judicial District, State of Alaska., a/k/a 1761 East Scotwood Drive, Wasilla, AK 99654. $191,415.25 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187541

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 22, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Jacinda Walker, a married person, Trustor, Jacinda Walker, a married person, Record Owner, recorded on July 02, 2008 under Reception No. 2008-038838-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot Twelve (12), Block Two (2), Meadow Brook Subdivision, according to the official plat thereof, filed under Plat No. 72-243, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 18319 KARTA CIRCLE, Eagle River, AK 99577. $215,747.51 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 7/6, 13, 20 & 27, 2014. Ad# 10187708

*AMENDED* NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST Trustee's Sale No: 04-BT-130545

NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Trustee's Sale No: 04-FSL-131868 This NOTICE OF DEFAULT AND ELECTION TO SELL is given by REGIONAL TRUSTEE SERVICES CORPORATION, as Successor Trustee under that certain Deed of Trust executed by THOMAS P SWISHER, AND LYNDA M SWISHER, HUSBAND AND WIFE, as Trustor, to RECON TRUST COMPANY, as Trustee, in favor of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. AS NOMINEE FOR COUNTRYWIDE HOME LOANS, INC. ITS SUCCESSORS AND ASSIGNS, as Beneficiary, dated 5/16/2007, re corded 5/23/2007 under Instrument No. 2007-010751-0, in the FAIR BANKS Recording District, State of ALASKA. The beneficial interest in the Deed of Trust has been assigned to The Bank of New York Mellon FKA The Bank of New York, as Trustee for the certificateholders of the CWABS, Inc., ASSET-BACKED CERTIFICATES, SERIES 2007-10 and the record owner of the property is purported to be THOMAS P SWISHER, AND LYNDA M SWISHER, HUSBAND AND WIFE. Said Deed of Trust covers real property situated in said Recording District, described as follows: LOT FIVE (5), BLOCK TWO (2), WILCOX ESTATES, ACCORDING TO THE PLAT FILED JULY 11, 1975 AS PLAT NUMBER 75-79; RECORDS OF THE FAIRBANKS RECORDING DISTRICT, FOURTH JUDICIAL DISTRICT, STATE OF ALASKA. Commonly referred to as 554 LONG SPUR LOOP, , FAIRBANKS, AK 99709. A breach of the obligation which said Deed of Trust secures has occurred in that FAILURE TO MAKE PAYMENT OF $1,840.73 WHICH BECAME DUE ON *1/1/2009*, AND ALL SUBSEQUENT PAYMENTS THEREAFTER, TO GETHER WITH LATE CHARGES AND ADVANCES, IF ANY; ANY ADVANCES WHICH MAY HEREAFTER BE MADE; AND ALL OBLIGATIONS AND IN DEBTEDNESSES AS THEY BECOME DUE.. By reason thereof, and under the terms of the Note and Deed of Trust, the Beneficiary has declared all sums so secured to be immediately due and payable, together with any trustee fees, attorney fees, costs and advances made to protect the security associated with this foreclosure. There is presently due and owing the principal balance of $212,737.71, plus interest, late charges, costs and any future advances. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale may be terminated if: 1. payment of the sum in default, other than the principal that would not be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed; and 2. if Notice of Default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. NOTICE IS HEREBY GIVEN that pursuant to demand of the Beneficiary, the Trustee hereby elects to sell the above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE LOBBY OF THE FAIRBANKS COUNTY COURTHOUSE, 101 LACEY STREET, FAIRBANKS, AK, on September 16, 2014 at 10:00 AM. Beneficiary will have the right to make an offset bid at sale without cash.

NOTICE OF SALE OF REAL PROPERTY Fidelity Title Agency of Alaska, Trustee, will sell Lot 162-A, Subdivision of Lots 161 and 162, U.S. Survey 3155, according to the plat thereof filed October 13, 1981 as Plat No. 81-57, Ketchikan Recording District, First Judicial District, State of Alaska; 147 Bearberry Lane, Ketchikan, AK 99901-9367 to the highest, best bidder on August 19, 2014, at 10:00 a.m. in the main lobby of the State Superior Courthouse, 415 Main Street, Ketchikan, Alaska, together with other sales. The sale will be held pursuant to a Deed of Trust naming Larry Gotelli, Trustor, recorded November 26, 2003, as Instrument No. 2003-006198-0, Ketchikan Recording District, First Judicial District, State of Alaska, encumbering said real property. The principal amount of $63,660.41 is due, plus interest, costs and other charges. Go to alaskajournal.com for the complete Notice of Default. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187574

NOTICE OF SALE OF REAL PROPERTY Alyeska Title Guaranty Agency, Trustee, will sell Unit 105, Building C, EDGEWATER VILLA CONDOMINI UMS, as shown on the floor plans filed under Plat No. 83-102, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska, and as described in the Declaration recorded April 13, 1983, in Book 875 at Page 795 and amendments thereto, if any; 3021 W. 42nd Avenue, #105, Anchorage, AK 99517 to the highest, best bidder on August 21, 2014, at 10:00 a.m. in the main lobby of the Nesbett Memorial Courthouse, 825 W. 4th Avenue, Anchorage, Alaska, together with other sales. The sale will be held pursuant to a Deed of Trust naming Andrew R. Muller, Trustor, recorded October 16, 2003, as Instrument No. 2003-109021-0, Anchorage Recording District, Third Judicial District, State of Alaska, encumbering said real property. The principal amount of $120,178.39 is due, plus interest, costs and other charges. Go to alaskajournal.com for the complete Notice of Default. Pub: 6/29, 7/6, 13 & 20, 2014. Ad# 10187580

** NOTICE OF SALE ** Real property will be sold for cash (meaning currency of the United States of America, Cashier's Check(s) from a bank with a branch in Anchorage, Alaska, or Post Office money order), to the highest bidder, in the main lobby of the Nesbett Memorial Courthouse, 825 West Fourth Avenue, Anchorage, Alaska, on September 11, 2014, at 11:00 a.m. Proceeds will be applied to costs, expenses and attorney's fees incurred in the foreclosure and to satisfy amounts due under the Deed of Trust naming Monica C. George, Trustor(s), Equivest Mortgage Income Trust, Inc., and Kenneth W. Battley, Beneficiary(s) by assignment. The undersigned is trustee with power of sale under the Deed of Trust. The Deed of Trust was recorded March 6, 2007, R/No. 2007-013707-0. The Notice of Default and Sale was recorded June 10, 2014, R/No. 2014-022038-0, and should be consulted for important details regarding bidding rules and procedures well prior to the day of the sale. The real property covered by the Deed of Trust and to be sold is described as: Lot 1, Block 1, VANOVER SUBDIVISION, according to the official plat thereof, filed under Plat Number P-93A, records of the Anchorage Recording District, Third Judicial District, State of Alaska. Prop. addr: 4035 E. 4th Avenue, Anchorage, AK 99508 The amount due under the deed of trust is the principal sum of $161,159.99, plus regular interest accrued through November 16, 2013, in the amount of $1,688.87, and continuing to accrue at the default rate of 11.375% per annum from November

NOTICE OF SALE OF REAL PROPERTY Fidelity Title Agency of Alaska, Trustee, will sell Lot 11, Block 4, PHASE II, BLUEBERRY FIELD SUBDIVISION, according to the official plat thereof, filed under Plat Number 84-9, in the records of the Bethel Recording District, Fourth Judicial District, State of Alaska; 240 Alex Hately Drive, Bethel, AK 99559 to the highest, best bidder on August 21, 2014, at 10:00 a.m. in the main lobby of the Bethel Superior Courthouse, 204 Chief Eddie Hoffman Highway, Bethel, Alaska, together with other sales. The sale will be held pursuant to a Deed of Trust naming Robin Thompson and Mary Thompson, Trustors, recorded June 23, 1999, in Book 84 at Page 202, Bethel Recording District, Fourth Judicial District, State of Alaska, encumbering said real property. The principal amount of $227,057.19 is due, plus interest, costs and other charges. Go to alaskajournal.com for the complete Notice of Default. Pub: 6/29, 7/6, 13 & 20, 2014. Ad# 10187577

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 14, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Catherine M. Driggs and Leland T. Driggs Jr., husband and wife, Trustor, Catherine M. Driggs and Leland T. Driggs, Jr., wife and husband, as tenants in common, Record Owner, recorded on July 08, 2013 under Reception No. 2013-038192-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot 13, Block 3, Thunderbird Heights Subdivision, according to the Official Plat thereof filed under Plat No. 77-226, in the Anchorage Recording District, Third Judicial District, State of Alaska. Excepting therefrom the subsurface estate and all rights, privileges, immunities and appurtenances of whatsoever nature accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of 12/18/71 (85 STAT 688, 704; 43 USC 1601, 1613 (F)0976)) as reserved by the United States of America in the Patent to said land. More accurately described as: Lot 13, Block 3, Thunderbird Heights Subdivision, according to the Official Plat thereof filed under Plat No. 77-226, in the Anchorage Recording District, Third Judicial District, State of Alaska. Excepting therefrom the subsurface estate and all rights, privileges, immunities and appurtenances of whatsoever nature accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of 12/18/71 (85 STAT 688, 704; 43 USC 1601, 1613 (F)1976)) as reserved by the United States of America in the Patent to said land, a/k/a 27306 Goshawk Court, Chugiak, AK 99567. $296,833.06 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187544

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 15, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Benjamin D. Owliaie and Sara C. Owliaie, husband and wife, Trustor, Benjamin D. Owliaie and Sara C. Owliaie, husband and wife, Record Owner, recorded on December 13, 2010 under Reception No.

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 12, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Brandon L. Serna, an unmarried person, Trustor, Brandon L. Serna, an unmarried person, Record Owner, recorded on September 30, 2005 under Reception No. 2005-070461-0, Anchorage Recording District, Third Judicial District, Alaska, describing: UNIT B-204 OF WOODRIDGE CONDOMINIUMS, PHASE II, as shown on the floor plan(s) filed in the Office of the Recorder for the Anchorage Recording District, Third Judicial District, State of Alaska, under Plat No. 83-392, and as identified in the Declaration re corded May 17, 1983, in Book 895 at Page 498, and any amendments thereto, more accurately described as UNIT B-204 OF WOODRIDGE CONDOMINIUMS, PHASE II, according to the official maps and floor plans filed as Plat No. 83-392 and as described in Declaration recorded May 17, 1983, in Book 895 at Page 498, and any amendments thereto, records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 5614 E 40TH AVE B204, ANCHORAGE, AK 99504. $128,002.47 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187537

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 14, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Nicholas R. Smith, an unmarried person, Trustor, Nicholas R. Smith, a single person, Record Owner, recorded on October 29, 2007 under Reception No. 2007-067804-0, ANCHORAGE Re cording District, Third Judicial District, Alaska, describing: Unit 7 of STONEHAVEN MANOR CONDOMINIUM, located on Tract B-9, Town Park Subdivision, Plat 97-129 as shown on the Floor Plans filed in the office of the Recorder for the Anchorage Recording District, Third Judicial District, State of Alaska, and as identified in the Declaration recorded September 3, 2003, Serial No. 2003-090519, and in any amendments thereof; More accurately described as: Unit 7, of STONEHAVEN MANOR CONDOMINIUM, PHASE IV, as shown on the Floor Plans filed in the office of the Recorder for the Anchorage Recording District, Third Judicial District, State of Alaska, and as identified in the Declaration recorded September 3, 2003, Serial Number 2003-090519-0, and in any amendments thereof. EXCEPTING THEREFROM THE SUBSURFACE ESTATE and all rights, privileges, immunities and appurtenances of whatsoever nature accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of 12-18-71 (85 Stat 688, 704; 43 U.S.C. 1601, 1613(f) (1976) as reserved by the United State of America., a/k/a 11719 Galloway Loop, Eagle River, AK 99577. $191,633.82 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187542

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 18, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Kenneth M. S. Fernandez, an unmarried person, Trustor, Kenneth M. S. Fernandez, an unmarried person, Record Owner, recorded on August 21, 2007 under Reception No. 2007-019365-0, Fair banks Recording District, Fourth Judicial District, Alaska, describing: UNIT B (1509 27th Avenue) of ADVANCE TOWNHOMES, as shown in the Declaration recorded September 22, 2005 as Instrument No. 2005-020497, and Amendments thereto, if any; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska. Said above described unit and Common Areas and Facilities are situated on the following described property; Lot 149A of the replat of Lots 149 and 150, U.S. Survey No. 3148, according to the plat filed May 20, 2004 as Plat Number 2004-67; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 1509 27TH AVE, FAIRBANKS, AK 99701. $192,396.49 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187548

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 19, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Byron T. Jackson & Tometria K. Jackson, husband and wife, Trustor, Byron T. Jackson & Tometria K. Jackson, husband and wife, Record Owner, recorded on April 13, 2007 under Reception No. 2007-007391-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 6, Block 4 of

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July 13, 2014 • Alaska Journal of Commerce

Notice of Sale and Default

the REPLAT OF LOT 6, BLOCK 4, MELLOW WOODS II, according to the plat filed March 30, 1995 as Plat Number 95-29; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 3068 Timberbrook Drive, North Pole, AK 99705. $119,584.19 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187550

November 15, 2004 under Reception No. 2004-085430-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot Ten (10), Block Four (4), Pine Valley Estates Subdivision, according to the official Plat thereof, filed under Plat No. 85-149, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 2301 Nash Circle, Anchorage, AK 99508. $271,622.47 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187557

der Instrument No. 2010-010133-0, in the KENAI Recording District, State of ALASKA. The beneficial interest in the Deed of Trust has been assigned to BANK OF AMERICA, N.A., SUCCESSOR BY MERGER TO BAC HOME LOANS SERVICING, LP FKA COUNTRYWIDE HOME LOANS SERVICING, LP and the record owner of the property is purported to be RON L JAMES, AN UNMARRIED PERSON. Said Deed of Trust covers real property situated in said Recording District, described as follows:

be conducted. Proceeds will apply to the Deed of Trust naming Donald A. Galt, a married man, Trustor, Victor L. Brophy, III, a single man, Record Owner, recorded on August 29, 1984 in Book 1151, on Page 718, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot Ten (10), Block Two (2), Windsong Subdivision, according to Plat No. 76-110, in the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 9232 South River Drive, Palmer, AK 99645. $7,790.88 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187494

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 20, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Daniel V. Hammer and Charlotte J. Hammer, husband and wife, Trustor, Daniel V. Hammer and Charlotte J. Hammer, husband and wife, Record Owner, recorded on June 30, 2008 under Reception No. 2008-038423-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot 5, Block C, Newland Subdivision, ac cording to the Official Plat thereof filed under Plat No. P-323, in the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 644 West 87th Avenue, Anchorage, AK 99515. $219,577.32 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187551

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 15, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Salvador S. Lumba and Ide T. Sy Lumba, husband and wife, Trustor, Salvador S. Lumba and Ide T. Sy-Lumba, husband and wife, Record Owner, recorded on August 13, 2010 under Reception No. 2010-039799-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit 44 of Bragaw Square Condominiums Phase 8, as shown on the Floor Plans filed in the office of the Recorder of the Anchorage Recording District, Third Judicial District, State of Alaska, under Plat No. 2007-78, and as identified in the Declaration recorded September 01, 2005, Serial Number 2005-062547-0, and in any Amendments thereof. More accurately described as: Unit 44, Bragaw Square Condominiums Phase 8, according to the Official Maps and Floor Plans filed as Plat No. 2007-78 and as described in Declaration recorded September 1, 2005, as Serial Number 2005-062547-0 and any Amendments thereto, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 3816 East 19th Avenue #44, Anchorage, AK 99508. $181,136.81 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187545

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 21, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Melanie K. Leydon, an unmarried person, Trustor, Melanie K. Leydon, an unmarried person, Record Owner, recorded on May 20, 2010 under Reception No. 2010-023559-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot 27, Block 1, Thunderbird Terrace First Addition, according to the Official Plat thereof, filed under Plat Number 71-48, Records of the Anchorage Recording District, Third Judicial District, State of Alaska. More accurately described as: Lot 27, Block 1, Thunderbird Terrace First Addition, according to the Official Plat thereof, filed under Plat No. 71-48, Records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 1706 Thunderbird Place Unit B, Anchorage, AK 99508. $164,780.98 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187554

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 21, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Matthew L. Bonadurer, a married man, Trustor, Matthew L. Bonadurer, a married man, Record Owner, recorded on May 31, 2007 under Reception No. 2007-013265-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 12, Block 4, AMBERWOOD DIVISION II, according to the official plat thereof, filed under Plat Number 85-59, Records of the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 4020 North Hazelwood Circle, Palmer, AK 99645. $140,483.71 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187553

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 20, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Shayne K. Mau, an unmarried person, Trustor, Shayne K. Mau, an unmarried person, Record Owner, recorded on November 14, 2011 under Reception No. 2011-022206-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 5, Block A, Ponderosa Subdivision, according to the Plat filed November 21, 1980 as Plat No. 80-201; records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 3181 Storey Drive, North Pole, AK 99705. $154,251.10 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187552

NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Trustee's Sale No: 04-BT-130351 This NOTICE OF DEFAULT AND ELECTION TO SELL is given by REGIONAL TRUSTEE SERVICES CORPORATION, as Successor Trustee under that certain Deed of Trust executed by RON L JAMES, AN UNMARRIED PERSON, as Trustor, to SOUTHCENTRAL TITLE AGENCY, as Trustee, in favor of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS NOMINEE FOR ALASKA USA MORTGAGE COMPANY, LLC, ITS SUCCESSORS AND ASSIGNS, as Beneficiary, dated 11/4/2010, recorded 11/15/2010 un-

LOT TWO (2), LINVILLE SUBDIVI SION, ACCORDING TO PLAT NO. 80-105, KENAI RECORDING DIS TRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA. Commonly referred to as 36855 DEVILLE ROAD, SOLDOTNA, AK 99669. A breach of the obligation which said Deed of Trust secures has occurred in that FAILURE TO MAKE PAYMENT OF $969.30 WHICH BECAME DUE ON *6/1/2011*, AND ALL SUBSEQUENT PAYMENTS THEREAFTER, TO GETHER WITH LATE CHARGES AND ADVANCES, IF ANY; ANY ADVANCES WHICH MAY HEREAFTER BE MADE; AND ALL OBLIGATIONS AND IN DEBTEDNESSES AS THEY BECOME DUE.. By reason thereof, and under the terms of the Note and Deed of Trust, the Beneficiary has declared all sums so secured to be immediately due and payable, together with any trustee fees, attorney fees, costs and advances made to protect the security associated with this foreclosure. There is presently due and owing the principal balance of $115,537.76, plus interest, late charges, costs and any future advances. If the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale may be terminated if: 1. payment of the sum in default, other than the principal that would not be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed; and 2. if Notice of Default has been recorded two or more times previously under the same trust deed and the default has been cured, the trustee does not elect to refuse payment and continue the sale. NOTICE IS HEREBY GIVEN that pursuant to demand of the Beneficiary, the Trustee hereby elects to sell the above described real property to satisfy the obligation, together with all accrued interest and all costs and expenses, at public auction, for cash, to the highest and best bidder, IN THE MAIN LOBBY OF THE NESBITT MEMORIAL COURTHOUSE, 825 W. 4TH AVENUE, ANCHORAGE, on September 2, 2014 at 10:00 AM. Beneficiary will have the right to make an offset bid at sale without cash. Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the same. DATED: 5/27/2014 REGIONAL TRUSTEE SERVICES CORPORATION, Trustee By:/s/MELANIE BEAMAN, AUTHORIZED AGENT Pub: 6/29, 7/6, 13 & 20, 2014. Ad#10187530

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 8, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Laura E. Edson and Darrin M. Edson, Wife and Husband, Trustor, Laura E. Edson and Darrin M. Edson, husband and wife, Record Owner, recorded on September 02, 2005 under Reception No. 2005-018910-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: Lot 5 of Triple K Subdivision, according to the plat filed November 4, 1999 as Plat Number 99-100; records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, a/k/a 910 Haman Street, Fairbanks, AK 99709. $92,669.21 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187495

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 8, 2014, at 10:00 AM with other sales that may

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 8, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Brent J. Starkenburg and Michelle E. Starkenburg, husband and wife, Trustor, Brent J. Starkenburg and Michelle E. Starkenburg, husband and wife, Record Owner, recorded on June 05, 2009 under Reception No. 2009-012255-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 1, Block 7, Big Lake Heights Subdivision, Addition No. 1, according to Plat No. 74-38, located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 13834 West Airigin Drive, Big Lake, AK 99652. $183,994.99 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187493

NOTICE OF SALE OF REAL PROPERTY First American Title Company, Trustee, will sell The leasehold estate created by that certain Condominium Sublease Agreement dated June 11, 1981 and recorded June 12, 1981 in Book 607 at Page 745 and amendments thereto executed by Raymond J. Ellis and Crysta M. Ellis as Sublessor and A. Isabel Lee, as Sublessee, for a term June 11, 1981 until September 9, 2082. The Sublessee's interest in said lease in now held of record by Lila A. Tarpenning, an unmarried person by Assignment of Sublease recorded November 2, 1999 in Book 3558 at Page 854 as it affects the following described property: Unit D4 of BAVARIAN VILLAGE, as shown on the Floor Plans filed in the office of the Recorder of the Anchorage Recording District, Third Judicial District, State of Alaska, under Plat No. 80-12, and as identified in the Declaration recorded February 15, 1980, Book 473, Page 477, and in any amendments thereof; 2601 Palmer Court #D4, Anchorage, AK 99508 to the highest, best bidder on August 12, 2014, at 10:00 a.m. in the main lobby of the Nesbett Memorial Courthouse, 825 W. 4th Avenue, Anchorage, Alaska, together with other sales. The sale will be held pursuant to a Deed of Trust naming Lila A. Tarpenning, Trustor, recorded November 2, 1999, in Book 3558 at Page 858, Anchorage Recording District, Third Judicial District, State of Alaska, encumbering said real property. The principal amount of $41,897.79 is due, plus interest, costs and other charges. Go to alaskajournal.com for the complete Notice of Default. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187435

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 8, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Peter J. McCaslin and Kimberly A. McCaslin, husband and wife, Trustor, Peter J. McCaslin and Kimberly A. McCaslin, husband and wife, Record Owner, recorded on June 20, 2005 under Reception No. 2005-015665-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot Seven (7), Block Three (3), BIG LAKE RANCHETTES, according to Plat No. 62-28, located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 14166 W SUNRISE DRIVE, BIG LAKE, AK 99652. $123,828.13 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187396

Notice of Sale and Default NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 8, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Thomas W. Streb, a married man, Trustor, The Heirs and Devisees of Thomas W. Streb, deceased, subject to the administration of the estate of said decedent, Record Owner, recorded on April 01, 2003 under Reception No. 2003-008093-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 51, Block 5, WILLIWAW SUBDIVISION NO. 2, according to Plat No. W-76, Located in the Palmer Recording District, Third Judicial District, State of Alaksa; more accurately described as Lot 51, Block 5, WILLIWAW SUBDIVISION NO. 2, according to Plat No. W-76, Located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 1691 COPPER CREEK RD, WASILLA, AK 99654. $67,499.82 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187399 NOTICE OF SALE TO THE HEIRS OF THOMAS W. STREB: CHARLES A. FARNSLEY; SCOTT STREB; GINGER MOSER. Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 8, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Thomas W. Streb, a married man, Trustor, The Heirs and Devisees of Thomas W. Streb, deceased, subject to the administration of the estate of said decedent, Record Owner, recorded on April 01, 2003 under Reception No. 2003-008093-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 51, Block 5, WILLIWAW SUBDIVISION NO. 2, according to Plat No. W-76, Located in the Palmer Recording District, Third Judicial District, State of Alaksa; more accurately described as Lot 51, Block 5, WILLIWAW SUBDIVISION NO. 2, according to Plat No. W-76, Located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 1691 COPPER CREEK RD, WASILLA, AK 99654. $67,499.82 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187400

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 101 Lacey Street (Fairbanks Courthouse) on August 12, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Lindy L Ries, a single person, Trustor, The Heirs and Devisees of Lindy L. Ries, deceased, subject to the administration of the estate of said decedent, Record Owner, recorded on February 28, 2013 under Reception No. 2013-003399-0, Fairbanks Recording District, Fourth Judicial District, Alaska, describing: A portion of the Northwest 1/4 of Section 11, Township 2 South, Range 2 East, Fairbanks Meridian; Records of the Fairbanks Recording District, Fourth Judicial District, State of Alaska, more particularly described as follows: Com mencing at the Southeast corner of said Northwest 1/4, THENCE West along the South line of said Northwest 1/4, a distance of 796 feet to the TRUE POINT OF BEGINNING; THENCE North parallel with the East line of said Northwest 1/4, a distance of 832 feet; THENCE West parallel with South Line of said Northwest 1/4, a distance of 208 feet; THENCE South parallel with the East line of said Northwest 1/4, a distance of 832 feet to the South line of said Northwest 1/4; THENCE East along the South line of said Northwest 1/4, a distance of 208 feet to the TRUE POINT OF BEGINNING, a/k/a 3400 LINEMAN AVE, NORTH POLE, AK 99705. $129,120.50 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187404

• Page B25

Notice of Sale and Default the Deed of Trust naming Margaret A. Andrews, a married person, Trustor, Margaret A. Andrews, a married person, Record Owner, recorded on January 10, 2001 in Book 3749, on Page 335, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit 5 of OCEANVIEW SOUTH ESTATES CONDOMINIUMS, PHASE 2, as shown on the Floor Plans filed in the office of the Re corder for the Anchorage Recording District, Third Judicial District, State of Alaska, under Plat Number 2000-104, and as identified in the Declaration recorded October 19, 1999, Book 3550 Page 667, and in any amendments thereof more accurately described as Unit 5 of OCEANVIEW SOUTH ESTATES CONDOMINIUMS, PHASE 2, according to the official maps and floor plans filed as Plat No. 2000-104 and as described in Declaration recorded October 19, 1999, Book 3550 at Page 667, and in any amendments thereto, records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 207 DAILEY AVE, ANCHORAGE, AK 99515. $76,301.03 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187392

NOTICE OF SALE TO THE HEIRS OF JANE H. MCHUGH: DAGNY MCHUGH. Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 29, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Jane H. McHugh, an unmarried woman, Trustor, The heirs and devisees of Jane H. McHugh, deceased, subject to the administration of the estate of said decedent, Record Owner, recorded on January 29, 2010 under Reception No. 2010-004530-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Lot Nine "A" (9A), Block Eight (8), CLYDE M. DICKSON SUBD., according to the official plat thereof, filed under Plat No. 77-5, records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 3337 Upland Drive, Anchorage, AK 99504. $362,347.48 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187409

Page B26 • July 13, 2014 • Alaska Journal of Commerce Notice of Sale and Default NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 11, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Tone I. Hicklin, an unmarried person, Trustor, Tone I. Hicklin, an unmarried person, Record Owner, recorded on June 27, 2001 in Book 1144, on Page 231, Palmer Recording District, Third Judicial District, Alaska, describing: Lot Fourteen (14), Block Four (4), DIVISION NO. 1, SCOTWOOD ESTATES SUBDIVISION, according to the Plat No. 81-101, located in the Palmer Recording District, Third Judicial District, State of Alaska; more accurately described as Lot Fourteen (14), Block Four (4), SCOTWOOD ESTATES SUBDIVISION, according to Plat No. 81-101, located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 3800 N BULL MOOSE DR, WASILLA, AK 99654. $68,524.77 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187403

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 8, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming Michel Moandal, and Stephanie Moandal, husband and wife, Trustor, Michel Moandal and Stephanie Moandal, husband and wife, Record Owner, recorded on October 09, 2007 under Reception No. 2007-063863-0, Anchorage Recording District, Third Judicial District, Alaska, describing: Unit No. 104, Building 1, COTTONWOOD VILLAGE CONDOMINIUM, PHASE I, as shown on floor plans filed under Plat No. 76-260, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska, as a de scribed in the Declaration recorded November 01, 1976, in Book 143 at Page 711 and amendments thereto, if any; more accurately described as Unit 104, Building 1, COTTONWOOD VILLAGE CONDOMINIUM, PHASE I, according to the official maps and floor plans filed as Plat No. 76-260 and as a described in the Declaration

July 13, 2014 • Alaska Journal of Commerce

• Page 7

Notice of Sale and Default

recorded November 01, 1976, in Book 143 at Page 711 and amendments thereto, records of the Anchorage Recording District, Third Judicial District, State of Alaska, a/k/a 3614 BURL CT, ANCHORAGE, AK 99504-3901. $206,939.33 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187395

trict, State of Alaska, a/k/a 3337 Upland Drive, Anchorage, AK 99504. $362,347.48 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187411

equal to their bid amount, on hand at the time of the sale. Direct inquiries to the Law Office of James H. McCollum, LLC, 400 L Street, Suite 100, Anchorage, Alaska 99501, ph: 907-770-7773. FIDELITY TITLE AGENCY OF ALASKA, LLC By:/s/Kathy Franke, Agent Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187362

cluding all sums expended by beneficiary and trustee under the deed of trust, with interest thereon. Except for said offset bid(s), no one will be permitted to bid until the person conducting the sale for the trustee has verified that the prospective bidder has "cash" funds (as defined above) equal to their bid amount, on hand at the time of the sale. Direct inquiries to the Law Office of James H. McCollum, LLC, 400 L Street, Suite 100, Anchorage, Alaska 99501, ph: 907-770-7773. FIRST AMERICAN TITLE INSURANCE COMPNAY By:/s/Mary Ann Rowe, Signator Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187358

tersection of the township line with the Easterly boundary of the "Susitna Gunnery Range", said corner marked by a 3 1/4" B.C. monument and is the Point of Beginning of this description; thence South 20°59'06" E, 831.31 feet along the Easterly boundary of the "Susitna Gunnery Range" to the centerline of the Point Mackenzie Road; thence North 84°59'50" E, 1,036.21 feet along the centerline of the Point Mackenzie Road to the intersection with quarter section line common to Government Lots 3 and 2, said course the basis of bearing of this description per A.S.L.S. 79-209; thence North 00°22'54" E, 680.43 feet along the line common to Government Lots 3 and 2 to the North one-quarter Corner of Section 4 on the Township line; North 89°46'06" W, 1,334.52 feet along the township line common to Townships 15 North and 16 North to the Point of Beginning. Street addr: 22481 W. Point Mackenzie Rd., Wasilla, AK 99507 The amount due under the deed of trust is the principal sum of $104,707.91, plus interest accruing at 10.0% per annum from July 14, 2013, plus late charges of $92.60 per month from August 25, 2013, for ward, plus any sums properly ad vanced or expended under the terms of the Deed of Trust with interest as therein provided. Beneficiary will have the right to bid by offset without cash in an amount not greater than the balance owed on the obligation at the time of sale including all sums expended by beneficiary and trustee under the deed of trust, with interest thereon. Except for said offset bid(s), no one will be permitted to bid until the person conducting the sale for the trustee has verified that the prospective bidder has "cash" funds (as defined above) equal to their bid amount, on hand at the time of the sale. Direct inquiries to the Law Office of James H. McCollum, LLC, 400 L Street, Suite 100, Anchorage, Alaska 99501, ph: 907-770-7773. FIDELITY TITLE AGENCY OF ALASKA, LLC By:/s/Kathy Franke, Agent Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187356

NOTICE OF SALE Trustee, Alaska Trustee, LLC will sell realty for cash to the highest bidder at 825 W. 4th Ave. (Nesbett Memorial Courthouse) on August 7, 2014, at 10:00 AM with other sales that may be conducted. Proceeds will apply to the Deed of Trust naming David J. Peralta and Jessica J. Peralta, husband and wife, Trustor, David J. Peralta and Jessica J. Peralta, husband and wife, Record Owner, recorded on December 16, 2011 under Reception No. 2011-024900-0, Palmer Recording District, Third Judicial District, Alaska, describing: Lot 7, Eagle's Bluff, according to Plat No. 2009-63, located in the Palmer Recording District, Third Judicial District, State of Alaska, a/k/a 4040 North Pittman Road, Wasilla, AK 99623. $244,803.59 is due, plus interest, advances, etc. Go to usa-foreclosure.com for status. Pub: 6/22, 29, 7/6 & 13, 2014. Ad#10187391

** NOTICE OF SALE ** Real property will be sold for cash (meaning currency of the United States of America, Cashier's Check(s) from a bank with a branch in Anchorage, Alaska, or Post Office money order), to the highest bidder, in the main lobby of the Nesbett Memorial Courthouse, 825 West Fourth Avenue, Anchorage, Alaska, on August 28, 2014, at 11:00 a.m. Proceeds will be applied to costs, expenses and attorney's fees incurred in the foreclosure and to satisfy amounts due under the Deed of Trust naming Frances Duclos, Trustor, and Equivest Mortgage Income Trust, Inc., Beneficiary. The undersigned is trustee with power of sale under the Deed of Trust. The Deed of Trust was recorded February 5, 2010, R/No. 2010-002123-0. The Notice of Default and Sale was recorded May 27, 2014, R/No. 2014-009353-0, and should be consulted for important details regarding bidding rules and procedures well prior to the day of the sale. The real property covered by the Deed of Trust and to be sold is described as: Lot 4, Block 3, NANCY CREEK ES TATES SUBDIVISION, according to Plat No. 74-41, records of the Palmer Recording District, Third Judicial District, State of Alaska. Street addr: 9377 N. Blackie Loop, Houston/Willow, AK 99688 The amount due under the deed of trust is the principal sum of $72,217.27, plus interest accruing at 8.5% per annum from September 12, 2013, plus late charges of $28.83 per month from October 20, 2013, forward, plus any sums properly ad vanced or expended under the terms of the Deed of Trust with interest as therein provided. Beneficiary will have the right to bid by offset without cash in an amount not greater than the balance owed on the obligation at the time of sale including all sums expended by beneficiary and trustee under the deed of trust, with interest thereon. Except for said offset bid(s), no one will be permitted to bid until the person conducting the sale for the trustee has verified that the prospective bidder has "cash" funds (as defined above)

** NOTICE OF SALE ** Real property will be sold for cash (meaning currency of the United States of America, Cashier's Check(s) from a bank with a branch in Anchorage, Alaska, or Post Office money order), to the highest bidder, in the main lobby of the Nesbett Memorial Courthouse, 825 West Fourth Avenue, Anchorage, Alaska, on August 28, 2014, at 11:00 a.m. Proceeds will be applied to costs, expenses and attorney's fees incurred in the foreclosure and to satisfy amounts due under the Deed of Trust naming Zachary B. Russell, Trustor, and Equivest Mortgage Income Trust, Inc., Beneficiary. The undersigned is trustee with power of sale under the Deed of Trust. The Deed of Trust was recorded October 7, 2009, R/No. 2009-003590-0. The Notice of Default and Sale was recorded May 28, 2014, R/No. 2014-001417-0, and should be consulted for important details regarding bidding rules and procedures well prior to the day of the sale. The real property covered by the Deed of Trust and to be sold is described as: Lot 22, EVERGREEN MEADOWS SUBDIVISION, according to Plat No. 2002-39, records of the Homer Recording District, Third Judicial District, State of Alaska. Street addr: Lot 22, Evergreen Meadows, nhn Forever Green Street, Anchor Point, AK 99556 The amount due under the deed of trust is the the principal sum of $8,409.67, plus interest accruing at 10.0% per annum from May 10, 2013, plus late charges of $35.00 per month from May 11, 2013, forward, plus any sums properly advanced or expended under the terms of the Deed of Trust with interest as therein provided. Beneficiary will have the right to bid by offset without cash in an amount not greater than the balance owed on the obligation at the time of sale in-

** NOTICE OF SALE ** Real property will be sold for cash (meaning currency of the United States of America, Cashier's Check(s) from a bank with a branch in Anchorage, Alaska, or Post Office money order), to the highest bidder, in the main lobby of the Nesbett Memorial Courthouse, 825 West Fourth Avenue, Anchorage, Alaska, on August 28, 2014, at 11:00 a.m. Proceeds will be applied to costs, expenses and attorney's fees incurred in the foreclosure and to satisfy amounts due under the Deed of Trust naming J. A. Wendt, LLC, Trustor, and Equivest Mortgage Income Trust, Inc., and Bobby D. Capps, Beneficiaries. The under signed is trustee with power of sale under the Deed of Trust. The Deed of Trust was recorded March 8, 2012, R/No. 2012-004569-0. The Notice of Default and Sale was recorded May 27, 2014, R/No. 2014-009355-0, and should be consulted for important details regarding bidding rules and procedures well prior to the day of the sale. The real property covered by the Deed of Trust and to be sold is described as: Lot 3A, a portion of Government Lot 3, Section 4, Township 15 North, Range 4 West, Seward Meridian, located in the Palmer Recording District, Third Judicial District, State of Alaska, according to Matanuska-Susitna Borough Platting Waiver No. 93-36W, recorded April 30, 1993, more particularly described as follows: Commencing at the Northwest corner of Government Lot 3, a corner common to Section 33, Township 16 North, and Section 4, Township 15 North, Range 4 West, marking the in-

BANK FORECLOSURES For more information visit our website: www.fnbalaska.com/propertysales

European stance against Russia weakens amid gas needs By George Jahn Associated Press

VIENNA (AP) — A clutch of countries is breaking ranks with the EU’s efforts to put economic and diplomatic pressure on Russia over Ukraine and building a pipeline meant to carry huge amounts of Russian gas to their doorstep. Their defiance of a European Union stop work order is more significant than just another missed chance for Europe to call out the Kremlin. Russian natural gas already accounts for around a third of the EU’s needs. The South Stream pipeline could increase Russian supplies to Europe by another 25 percent, potentially boosting Moscow’s leverage long after the Ukraine crisis fades. Adding to the skein of Russian pipelines already ending in Europe, South Stream would go through Bulgaria, Serbia, Hungary, Slovenia, Austria and Italy in one leg and Croatia, Macedonia, Greece and Turkey in a second. The European Commission, the EU executive, has ordered a construction moratorium over concerns with Russia’s dual role as pipeline owner and gas supplier. It has also delayed some political talks on the pipeline amid the crisis in Ukraine.

“Developments in Ukraine and Russia have demonstrated that the EU’s priority is to diversify its energy sources,” says spokeswoman Sabine Berger of the EU Energy Commissioner’s office. But Austria, Hungary, and Serbia — the first two EU members, the third a candidate to join — have said they will build their sections of the project and others may follow, to the displeasure of the EU and United States. In the wake of Austria’s decision last month, Washington urged it to “consider carefully” whether that contributed to “discouraging further Russian aggression.” Moscow says such arguments by the U.S. are driven by business concerns. In Vienna recently to lobby for Austrian support for South Stream, Russian President Vladimir Putin said “our American friends ... want to supply Europe with gas themselves.” In Slovenia Tuesday for discussions that included South Stream, Russian Foreign Minister Sergey Lavrov challenged the EU Commission’s moratorium as “not in accordance with norms of international law.” Slovene Foreign Minister Karl Erjavec cited North Stream, another Russian pipeline to Europe partially owned and supplied by Russia, as a

precedent for South Stream. European reaction has been generally muted. Many countries in central and eastern Europe already get much of their gas from Russia, making them ill-placed to criticize South Stream. Those further west, like France, have seen their lucrative business relations with Russia untouched by sanctions against Moscow. And while individual countries are taking steps to diversify their sources, officials seem to recognize there are few near-term options to Russian gas. Renewable energy projects are not close to meeting demand. Environmental concerns are fomenting widespread opposition to fracking — the disputed extraction of oil and gas from shale formations that has resulted in a U.S. gas boom. And it will be at least a decade before the U.S. can make sea-borne shipments of liquefied natural gas, due to technical and bureaucratic hurdles. “Europe’s energy dependence on Moscow seems to be in the cards for a long time to come,” says Michael Klare, author of “Rising Powers, Shrinking Planet, the New Geopolitics of Energy.” ‘’Moscow is not going to give up its dominant position easily.” Such prospects are forcing Western powers to see the threat from

Moscow in a new, post-Cold War light. NATO Secretary General Anders Fogh Rasmussen last month accused Russian intelligence agencies of working directly with European environmental groups to fund antifracking campaigns. Russia’s annexation of the Crimean Peninsula from Ukraine also has the potential of strengthening its energy dominance in Europe. Moscow now has control over a large part of the eastern Black Sea, and with it potential natural gas deposits previously claimed by Ukraine that may be worth trillions of dollars. It can also reroute South Stream without having to skirt Ukrainian waters, making the project cheaper and simpler. Some European criticism of the move to build the pipeline has come from countries that were formerly ruled by the Kremlin. Shortly after Austria agreed to build its section late last month, President Toomas Hendrik Ilves of ex-Soviet republic Estonia chided Austrian President Heinz Fischer, telling him that Moscow can in no way be considered a “strategic partner.” But most reaction is low-key. A statement to The Associated Press from the economics ministry of formerly Communist-ruled Poland said any decision to build

the pipeline ultimately lies “in the hands of the interested stakeholders,” even if South Stream fails to diversify “routes, sources and suppliers.” Such restraint could be explained by these countries’ own deals with Moscow. A direct Russian pipeline to Estonia meets 100 percent of its gas needs. Ditto for Latvia and Lithuania, both former Soviet republics. And Poland covers more than 60 percent of its requirements through Russia, even as it works to diversify its sources. This allows those needing South Stream to dismiss criticism. Hungarian Prime Minister Viktor Orban recently challenged “those who say we shouldn’t build South Stream .... (to) make an alternative proposal about how we could live without energy.” And Bulgarian Energy Minister Dragomir Stoynev said the idea of some countries benefiting from direct Russian gas shipments while expecting his country to wait out the Ukraine crisis is “unacceptable.” Associated Press writers JohnThor Dahlburg in Brussels, Vanessa Gera and Monika Scislowska in Warsaw and Jovana Gec in Belgrade contributed to this story.

July 13, 2014 • Alaska Journal of Commerce

• Page B27

VA official: Luring doctors, nurses a challenge for Alaska By Becky Bohrer Associated Press

JUNEAU (AP) — The chief of staff for the Alaska Veterans Affairs Health Care System said July 3 that recruitment of doctors and nurses is one of the biggest challenges the system faces. Cynthia Joe said this challenge isn’t exclusive to the VA in Alaska. But Alaska has no medical school, and while there are nursing programs, hospitals and clinics are often trying to pull from the same pool of candidates. Joe said the VA has been working to fill two vacant health-care provider positions at the VA’s Wasilla clinic and been relying on contract physicians and the Southcentral Foundation to help with patients. The VA is also recruiting for two primary care physicians at the clinic in Fairbanks, with the second provider about to leave, she said. At full strength, that facility would have three primary care physicians. The VA has added recruitment incentives, including offering to pay for moves and help with student loan costs, Joe said.

Joe made her remarks while visiting the VA clinic in Juneau. The brightly lit facility, located in the federal building downtown, is the newest and smallest of the VA clinics in Alaska, clinic manager Elizabeth Bochynski said. It opened in 2010. The clinic has one doctor and traditional examination rooms. But it also has space for tele-health consultations, in which doctors at remote sites — sometimes out of state — can provide mental health care or, with the assistance of an on-site nurse, medical care and exams. Nearly 90 percent of VA patients live within an hour of a VA facility, Joe said. The VA also has partnered with community health providers around the state as part of an effort that has helped rural veterans remain in their local communities for care and, during the last year, has contributed to substantially lower appointment wait times for new patients, Joe said. U.S. Sen. Mark Begich has pointed to the partnerships as a model for other VA systems and said he is proud of the service the VA in Alaska provides. But he said there is room for improvement. At a meeting with veterans July 3,

Begich heard complaints about attitude problems within the VA, difficulty getting requested appointments, and hassles with disability claims. He said a concern he had with the location of the Juneau clinic was that people had to go through security to reach it. He liked one veteran’s suggestion that there be a rating system for doctors outside the VA system who work with veterans, Begich said. There has been renewed national focus on the VA system amid allegations of problems, including delayed medical care, at VA facilities across the country. Begich, who sits on a conference committee on veterans’ issues, said in an interview that the discussion at July 3 meeting would have been much different if Alaska had the problems with waiting lists that have been seen elsewhere. But he acknowledged recruitment concerns, saying there are wage caps for primary care doctors in the VA system and those doctors often can make more money elsewhere. There can’t be a one-size-fits-all approach in addressing the problems nationally, Begich said.

Murkowski, who also has met with veterans, has expressed concern with staffing at the VA clinic in Wasilla and asked the VA’s inspector general to look into the quality of care provided there. She was unavailable for comment Thursday, but her spokesman, Matthew Felling, said by email that the challenges with recruiting and holding onto health care providers tracks with concerns Murkowski’s office has heard. “But the reason we have asked for the VA investigation is to take the most thorough look at Alaska’s challenges to see if there are other contributing factors beneath the surface, even intangibles, that are difficult to determine through the snapshot audit we saw recently,” he said. A federal audit released last month found the vast majority of medical appointments for veterans were scheduled within 14 days at the Alaska Veterans Health Care System in Anchorage. The Anchorage facility was the only Alaska VA facility looked at, and the audit provided a snapshot-in-time look. Joe said there is good, ongoing staff training when it comes to scheduling.

Senate Democrat campaigns: Obamacare? What’s that? By Charles Babington Associated Press

RALEIGH, N.C. (AP) — North Carolina Democratic Sen. Kay Hagan has her Republican opponent right where she wants him geographically — and, therefore, politically. Thom Tillis is stuck at the state capitol trying to resolve a budget quarrel as speaker of the North Carolina House. It’s a spot that helps Hagan emphasize Tillis’ role leading a Republican-controlled state government that Democrats contend has gone overboard with conservative zeal by restricting access to abortion and the voting booth while cutting corporate taxes and slashing spending on schools. If Tillis is worried by Hagan’s portrayal, he doesn’t show it. Drinking coffee this past week from a hand-grenade-shaped mug in his no-frills legislative office, he’s got his own message in his campaign to take Hagan’s Senate seat. “Obamacare,” he said, “continues to be a big problem.” Similar themes are playing out in other crucial Senate races, as voters have four months

Review:

to decide which party will control the chamber in the final two years of Barack Obama’s presidency. For Republicans, it’s all about tying Democrats to Obama — especially to a health care law that remains unpopular with many Americans. And for Democrats, the election is about just about anything else, especially if they can steer attention away from Washington and federal matters. It’s a political strategy that sometimes gives the campaigns an inside-out feel, with veteran senators running as if they were first-timers without a Washington resume to defend or tout. Democrat Mark Pryor has represented Arkansas in the Senate for two terms, yet one of his TV ads begins with a man saying, “I remember when Pryor was attorney general.” A woman adds that he pursued “scam artists that were ripping off seniors.” Pryor was state attorney general more than a decade ago, and for just four years, compared to his nearly dozen in the Senate. His harkening back to that time points to his desire to make the election a choice be-

tween a famous name in Arkansas state politics and first-term Rep. Tom Cotton, a Republican whom many view as less personable and engaging than Pryor. The GOP strategy, in return, is straightforward. One TV ad has a young girl spelling Pryor’s name as O-B-A-M-A. Traditionally emphasized by first-time campaigners, personal biographies are central to several other Democrats’ re-election campaigns. Alaska Sen. Mark Begich has aired a TV ad with footage of him as a boy of about 10, when his father, Rep. Nick Begich, died in a plane crash. “Mark is clearly his father’s son,” says the narrator, Begich’s wife, Deborah Bonito. And after 18 years in the Senate, Democrat Mary Landrieu is arguably the most accomplished member of her famous Louisiana political family. Still, she has aired an ad in which her father — former New Orleans Mayor Moon Landrieu — says affectionately: “When you have nine children, you’re bound to have one who’s hard-headed.” Some Democrats might say the same about the GOP’s strat-

egy of bashing “Obamacare” now that the Affordable Care Act is four years old. Not Tillis, who says Obama and Hagan exaggerated the extent to which people could keep their doctors and insurance plans. He calls it “the greatest example of a promise not kept.” He’s getting help with the message from Crossroads GPS, the political group run in part by Republican strategist Karl Rove, which is spending more than $3.5 million on television ads in North Carolina this summer. The group’s latest ad attacking Hagan asks whether voters know she “cast the deciding vote for Obamacare.” “The idea that this will be anything less than a referendum on Obamacare is wishful thinking,” said Rep. Patrick McHenry, R-N.C. The amount spent on the Hagan-Tillis race — about $17 million and climbing — is among the nation’s highest. It comes in a state that few can rival for political change in recent years, as Republicans ended a century of frustration by winning control of both legislative chambers and the governor’s office in 2012. What came next is a “con-

servative revolution” that Tillis said he’s proud of leading. Hagan and her fellow Democrats argue the Republicans went too far in a state so closely divided politically that Obama carried it in 2008 and lost it four years later. They believe a bump in teacher pay that Tillis promises lawmakers will enact this summer won’t erase North Carolinians’ memories of the deep cuts to education that Republicans passed last year. That approach, said Rep. David Price, D-N.C., is Hagan’s best chance to focus November voters’ attention on something other than Obama. Her strategy “is exactly what she should do,” Price said, because Tillis “has got that hung right around his neck.” Hagan, meanwhile, points to achievements close to home. They include her push to provide medical care to military families exposed to tainted water for decades at Camp Lejeune, the giant Marine Corps base in eastern North Carolina. “Kay Hagan,” said veteran North Carolina GOP strategist Paul Shumaker, “is hoping the sins of Raleigh are much bigger than the sins of Washington.”

Continued from Page B19

— As much as I like the rich colors, they can sometimes look unnatural. Caucasian faces sometimes look too orange, for instance. — AMOLED screens don’t perform as well outdoors. Although I can still make out text and icons, they are easier to see on the iPad and the Kindle. And while the Tab S is light and slim, the edges and the back don’t feel as smooth as on an iPad. That’s partly from Samsung’s use of plastic rather than metal on the back. Both S models have a resolution of 2,560 pixels by 1,600 pixels, which is among the best and translates into sharper images, particularly noticeable with text. But beyond a certain point, it’s really hard for the eyes to tell. The iPad’s resolution is lower, but text looks as clear. Meanwhile, the Tab S lets you control a Samsung smartphone using Wi-Fi. Currently, it works only with the latest phone, the Galaxy S5. You can leave your phone as far as

300 feet away, such as in another room or in the house when you’re in the backyard. The phone’s screen appears in a window on your tablet. From there, you can make or receive calls, send texts and access any of the apps on your phone. Another feature lets you access Windows or Mac computers remotely. The PC doesn’t have to be on the same network, so there’s no 300-foot limit. How well it works with office computers will depend on corporate policies. It worked fine with a Mac laptop on a non-work network. I like the ability to unlock the device with a fingerprint scan instead of a passcode. The Tab S supports up to eight users, each of whom can store up to three fingerprints. It would have been neat for the tablet to automatically pull up the correct profile based on the fingerprint used. Alas, you need to select your profile first. The tablet also comes with lots of freebies, including a 12-month subscription to Bloomberg Businessweek, and

introduces a new magazine app called Papergarden. Unfortunately, Papergarden works only with selected titles from Conde Nast, Hearst and a few others at the moment. Businessweek directs you to its own app. Magazines you buy through Google Play use yet another app. As much as I like freebies, I hate confusion. Users of other Samsung devices might recognize other features, including the ability to run multiple apps side by side and to keep certain files hidden when lending a device to others. On-screen keyboards let you use the control key the way you can on laptops, such as CTRL-C to copy text and CTRL-V to paste. Apple’s market-leading iPads are still the ones to beat, given that they have a wider selection of apps that aren’t simply phone apps made larger. But Samsung has a strong challenger with its new Tab S devices. The stunning colors might be enough to draw customers.

Page B28 • July 13, 2014 • Alaska Journal of Commerce

Bookworm:

Continued from Page B19

market…they comprised.” There was, of course, a learning curve — including a disastrous almost-name of the magazine, staffing problems and many wars of words — but in the spring of 1970, Essence magazine debuted. Despite an initial problem with funding, a revolving editorial door, plenty of in-fighting, lawsuits, ousting of partners, and “out-of-control behavior,” the magazine thrives with a readership that today “remains ever faithful.” And of the original four partners, Lewis was the “last man standing” when Essence Communications Inc. was sold to Time

Aereo:

Warner in 2008. This story of a magazine as told by “The Man from Essence” is a good one. It’s filled with advice, insight, and hot-button gossip, but that’s not all. It also includes stories about people who probably won’t like those stories told. Indeed, author Edward Lewis (with Audrey Edwards) leaves nothing unsaid in this business memoir and I found that completely irresistible. Here, readers learn a bit of background on what it takes to launch a successful magazine — what to do and definitely what not to do — and we get a behindthe-scenes taste of a business like

Continued from Page B19

this. Along the way, Lewis gives us a sense of the times and attitudes in which this iconic magazine was launched and incubated, which is both entertaining and informative. That makes this book a nice

surprise, and not just for fans of the magazine. If you’re up for an advicedispensing business biography that also dishes dirt, in fact, “The Man from Essence” is a book to try. Terri Schlichenmeyer is the author

of The Bookworm Sez, which is published in more than 200 newspapers and 50 magazines throughout the U.S. and Canada. Schlichenmeyer may be reached at bookwormsez@yahoo.com.

Real Estate

Commercial Property

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