May - 2013 - Alaska Business Monthly by Alaska Business

SMALL BUSINESS SPECIAL SECTION ■ BIRCHWOOD INDUSTRIAL PARK ■ MANAGING RISK

May 2013

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Busy with Qugruk Prospect Page 94

Oil & Gas Special Section

Page 70

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May 2013 TA BLE OF CONTENTS ABOUT THE COVER

dePArtments From the Editor. . . . . . . . . . . . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . . . . . . . . . . 8 Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Right Moves . . . . . . . . . . . . . . . . . . . . . . . . . . .52 Alaska This Month . . . . . . . . . . . . . . . . . . 122 Events Calendar . . . . . . . . . . . . . . . . . . . . . 125 Market Squares . . . . . . . . . . . . . . . . . . . . . 126 Alaska Trends. . . . . . . . . . . . . . . . . . . . . . . . 127 Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

Robert Dorn works on the rig ﬂoor of Nabors 7ES rig, operating the pipe tongs while making a drill pipe connection at the Repsol E&P USA Qugruk No. 3 prospect in the Colville River Delta area on the North Slope. The Repsol photo essay begins on page 94 and it is part of the annual Oil & Gas Special Section, which begins on page 70. Cover photo © 2013 Judy Patrick Photography

Articles

12 | Meini Huser, President and CEO Alaska Dreams Inc. Compiled by Mari Gallion

FINANCIAL SERVICES

28 | Financing Start Ups & Acquisitions Loan guarantee programs and business plans help By Tracy Barbour

INSURANCE ESSENTIALS

32 | How Safe Is Your Business? Companies using risk management plans to protect bottom lines By Vanessa Orr

ENERGY

35 | Much Ado about Watana Dam Hydroelectric project generates a growing workforce By Zaz Hollander

Alaska Business Monthly | May 2013

Photo courtesy of McMillen LLC

VIEW FROM THE TOP

Blue Lake Dam spillway.

ENERGY

TELECOM & TECHNOLOGY

TRANSPORTATION

MINING

HEALTH & MEDICINE

CONSTRUCTION

38 | Blue Lake Dam Expansion Project Sitka hopes to keep up with electrical demand By Will Swagel 40 | Alaska Marine Highway System Celebrates 50 Years Vital transportation link also serves as visitor attraction By Dimitra Lavrakas

44 | Innovations in Healthcare Delivery Improving public health with advertising By Vanessa Orr

48 | Devices for Doing Business Mobilizing offices with app savvy technology By Mari Gallion

54 | Gold Mines Lead in Price and Production Mining projects throughout the state boost economy By Julie Stricker 59 | Eklutna, Granite Move Epic Volumes of Gravel Making way for Birchwood Industrial Park By Wesley Loy www.akbizmag.com

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May 2013 TA BLE OF CONTENTS special section

special section

Small Business

Oil & Gas

14 | Young’s Gear: From Drivetrains to Distinction Owners Doug Coon and Justin Herrin, SBA Small Business Persons of the Year By Zaz Hollander 22 | Small Business Lessons Getting the basics down By Sam Dickey 24 | Small Business Trends in Alaska Entrepreneurs embrace technology, mobile food, social media By Rindi White

Articles

CONSTRUCTION

Expro provides qualiﬁed well testing staff to operate the mobile well test units.

70 | The Future is Already in the Field Testing wells in the Arctic with new equipment By Mari Gallion

64 | Alaska Construction Academies: Building a Workforce Empowering employers and students alike By Mari Gallion

74 | Royal Dutch Shell’s Bioacoustics Program: A Whale of a Study Documenting effects on marine animals from offshore operations in Beaufort and Chukchi seas By Vanessa Orr

66 | Natural Gas Pipeline Construction Planning Several variables keep an important project on hold By Rindi White

78 | Alyeska’s Pipeline Overhaul A troublesome project to upgrade pump stations lumbers toward finish line By Wesley Loy

corrections

84 | Cook Inlet Gas Uncertainty in supply and demand By Mike Bradner

In the April article Clean Energy Construction and Design, Igiugig was incorrectly spelled Igiagik. Igiugig is a village at the mouth of the Kvichak River, on Lake Iliamna in the Lake and Peninsula Borough. Igiagik is an alternate spelling of Egegik, another village in the Lake and Peninsula Borough. In pointing out the misspelling, ORPC also requested we relay to readers that their Maine Tidal Energy project has brought $21 million to the local economy rather than the more than $8 million published on their website at the time the article was written. 6

Photo courtesy of Expro

Alaska Business Monthly | May 2013

Nabors Rig 7ES drilling at Qugruk 3 on an ice pad.

90 | Alaska Oil Policy Understanding investment By Bradford G. Keithley

94 | Repsol busy with Qugruk Prospect Photo essay by Judy Patrick

93 | Prudhoe Bay Oil Production Passes 12 Billion Barrels By Frank E. Baker

98 | Alaska Business Monthly’s 2013 Oil & Gas Directory

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FROM THE EDITOR Follow us on and

Volume 29, Number 5 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF

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

Susan Harrington Mari Gallion Tasha Anderson David Geiger Linda Shogren Chris Arend Judy Patrick

BUSINESS STAFF

President VP Sales & Mktg. Senior Account Mgr. Account Mgr. Survey Administrator Accountant & Circulation

Jim Martin Charles Bell Anne Campbell Bill Morris Tasha Anderson Mary Schreckenghost

501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com Advertising email: materials@akbizmag.com Pacific Northwest Advertising Sales 1-800-770-4373 ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2013, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specific permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www. thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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May: A Month of Great Change!

appy month of May, the time of year when Persephone, spring goddess of Greek mythology, has managed to hike up from the southern climes to bless our land. This is the month when the Alaska landscape (finally) heralds the promise of spring with the scent of cottonwood buds and the fast transition of the birch trees from bare to light green, exhibiting their full foliage by month’s end. A month of such great change! Sun’s up, school’s out, central heating is turned down or completely off, and the dogs are grilling on the barbecue. Welcome spring! But as long-term Alaskans will tell you, we are advised not to plant our annuals until Memorial Day—that is, if you don’t have out of town plans like most Alaskans do. Many of us try to sneak those things in the ground the weekend before and cross our fingers. After all, the promise of spring does not include the promise that the temperatures won’t dip below freezing—or that it will not snow. But it does include the promise of our annual Small Business special section—and this year we salute Doug Coon and Justin Herrin, SBA’s Alaska Small Business Persons of the Year and co-owners of Anchorage-based Young’s Gear. Join us in congratulating these gentlemen for their drive and ambition—and drivetrains! We also salute the oil and gas industry in our annual Oil & Gas special section—with several articles of interest, including reminding everyone the 12 billionth barrel of oil went down the trans-Alaska oil pipeline a few short months ago. We went to press not knowing the outcome of the first session of the 28th Legislature, but there was change in the air at the Capitol in early April. This issue, we have articles about the changing face of a gravel pit, new ways to change bad habits, and changes in the devices used to do business. Like we said earlier: A month of such great change! Next month we’re changing our style. Readers might notice in June a change in our editing when we stop using the ever-changing AP Style Manual and start using the more literary Chicago Manual of Style. Let us know what you think. This month, don’t forget your fuchsias at the greenhouse; and on Memorial Day, remember those who died in the service of our country—fly the Flag, display flowers, decorate the graves of soldiers, and observe the National Moment of Remembrance at 3 p.m. local time that day, wherever you are. Don’t know what that is? Join in the collective consciousness of the United States for the minute beginning at 3 p.m., and remember the men and women in service to the U.S. who gave their lives in the pursuit of freedom and peace. That is what Memorial Day is all about. Many people want Congress to change the observance of Memorial Day back to May 30, the date of the original 1868 General Order No. 11 proclaimed by General John Logan, national commander of the Grand Army of the Republic, when the graves of both Confederate and Union soldiers were decorated with flowers at Arlington National Cemetery. Keeping the threeday weekend, Congress instead promised to make people more aware of the true meaning with a commission and a moment. Spread the word. Alas, if only those promises of Zeus (god of politics, amongst other things) and Hermes (god of business, as well as the technology that relays messages) were as reliable as Persephone’s annual release from the underworld, there would be little to talk about, wouldn’t there? Enjoy the May issue, the team has put together another really great magazine. —Susan Harrington, Managing Editor May 2013 | Alaska Business Monthly

INSIDE ALASKA BUSINESS

Alaska Communications

laska Communications has become the first company in Alaska and second in the U.S. to offer certified Carrier Ethernet 2.0 services. The Metro Ethernet Forum, a global industry alliance that defines Carrierclass Ethernet networks and services, recognized Alaska Communications as a CE 2.0 service provider following its achievement of CE 2.0 certification. Alaska Communications is the third provider in the world to achieve CE 2.0 certification. The certification means the company meets international standards for its business Ethernet services, making Alaska one of the best-connected business communities in the United States. CE 2.0 services offer major industries in Alaska like oil and gas, finance, resource development, healthcare, education and government the dedicated, reliable, secure networks needed to operate at peak performance.

CIRI Alaska Tourism Corp.

IRI Alaska Tourism Corp. has committed to the construction of a new 150-passenger catamaran for Kenai Fjords Tours to add to its 12-vessel fleet, with delivery anticipated in early 2014. Designed by Teknicraft of New Zealand and constructed by All American Marine in Bellingham, Wash., the new vessel will join two sister ships, the Aialik and Orca Voyagers. The ship’s design offers stability, spacious seating, wrap-around viewing decks, oversized, fog-free windows

Compiled by Mari Gallion

and LCD video monitors. A hydrofoil wing helps lift the catamaran up out of the water, decreasing drag, increasing fuel economy and creating a smaller boat wake. The investment in the KFT fleet comes just weeks before spring construction resumes on the rebuild of Kenai Fjords Wilderness Lodge on Fox Island. Being built by Seward-based Harmon Construction, the lodge will be completed and available for guests beginning June 1. The new, 3,300-square-foot building boasts immense windows overlooking Resurrection Bay, a spacious dining area and lounge and a redesigned kitchen that will allow for a new culinary program. Each stay at the lodge includes a wildlife cruise, which can be upgraded to a National Park Tour or Northwestern Fjord Tour.

Alaska Railroad Corp.

he Alaska Railroad Corp. has announced the elimination of 54 positions as part of a major corporate restructuring effort. The restructuring results from the fact that ARRC has experienced a $45 million negative swing in finances from 2011 until now. Contributing factors include: a significant drop in revenue from key freight customers (coal and petroleum); millions less in federal funding, along with a jump in required matching funds; and at least $15 million per year to implement a positive train control system as required by an unfunded federal mandate. Because ARRC curbed hiring as the revenue picture became clear last year, 25 of the 54 eliminated positions are al-

ready vacant, thus lowering the number of actual layoffs to 29. Eliminated positions represent an 8 percent reduction in the year-round and seasonal ARRC workforce which equates to an annual estimated cost savings of $4.5 million in wage, salary and benefit costs. In addition to personnel reductions, ARRC is implementing several other cost-cutting measures. These include improving efficiency through modified asset use and service levels, rightsizing fleets and improving maintenance practices for vehicles and heavy equipment, conserving fuel and other expense reductions, and improved purchasing procedures and controls. ARRC will also continue to seek opportunities for new and expanded revenue sources.

Alaska Permanent Fund Corp.

he Alaska Permanent Fund reached a new high water mark on Feb. 19, closing for the first time with an unaudited value of $45 billion. “Significant milestones in the Permanent Fund’s value provide us with the opportunity to stop and reflect on what has been a very successful public policy experiment,” says Alaska Permanent Fund Corp. Board Chair Bill Moran. “The total value is less important than the fact that the Fund’s investments have turned a non-renewable natural resource into a renewable financial resource.” CEO Mike Burns says, “In July 2007, shortly before the beginning of the recent recession, the Fund first closed at $40 billion. Reaching $45 billion is a welcome sign the Fund has not only regained lost

Your Project, Our Responsibility. 24/7 Service Pacific Pile & Marine has a robust fleet of marine equipment including our recent addition of a 600-Ton 4600 Ringer.

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Alaska Business Monthly | May 2013

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 www.akbizmag.com

INSIDE ALASKA BUSINESS ground, but is growing again.” The Alaska Permanent Fund was created in 1976 by a vote of the people, and received its first royalty deposit of $734,000 in early 1977. Since then the Fund has received more than $16.5 billion in mineral royalties and general fund appropriations, and has paid out $19.8 billion in dividends.

USDA

otzebue Electric Association Inc. will receive $2.9 million from the USDARD’s Rural Utilities Service to fund system improvements designed to reduce energy use in homes and businesses. The RUS loan will help KEA acquire a 1.4 megawatt diesel engine, which will supplement KEA’s increased wind power plant, increase voltage to the wind site, offer more capacity, and will reduce the cost of energy for the cooperative.

Alaska Family Sonograms

o upgrade its ultrasound exam capabilities with the most advanced and durable technology available, Alaska Family Sonograms installed three AplioTM 500 ultrasound systems from Toshiba America Medical Systems Inc., the first Aplio 500 systems in Anchorage. Alaska Family will use the Aplio 500 systems to care for patients from all over the state for general OB/GYN, as well as thyroid, abdominal and vascular exams. The Aplio 500 offers picture-perfect imaging with advanced visualization capabilities, including Fly Thru, an industry-first technology using 4D ultrasound to “fly through” interiors of ducts and vessels for better exploration of lesions and masses.

Compiled by Mari Gallion

Alaska Family Sonograms has been using Toshiba equipment for 25 years.

Fairweather LLC

airweather LLC, an Anchoragebased provider of remote medical, meteorological and expediting services, has announced the opening of its newest occupational medical clinic located at 7999 Jewel Lake Road in Anchorage. The new Fairweather Anchorage Medical Clinic is designed to serve oil companies and contractors operating on Alaska’s North Slope. Complementing the services offered at the multi�purpose Fairweather Deadhorse Medical Clinic in Prudhoe Bay, the new Anchorage Clinic provides operators the convenience to receive customized occupational health services at either location. The Anchorage and Deadhorse clinics are both equipped to perform random, pre-employment, post-incident and test-for-cause urine drug and breath alcohol collections and provide substance abuse training for both supervisors and employees. On-site collections are available to companies throughout the Anchorage area. The Fairweather Deadhorse Medical Clinic, an air ambulance staging facility, also provides a full spectrum of acute care, emergency services and medical treatment to operators on the North Slope.

Port MacKenzie Rail Extension

ork has begun on $88 million in construction projects for three segments of the Port MacKenzie Rail Extension. Contracts were recently

awarded to three construction companies. Up to 200 jobs in the construction industry could be created this summer. Bristol Construction will continue its work on Segment 1, the first five miles of the rail embankment. In October 2012, earthmoving was completed to the wetlands boundary. Granite Construction was awarded the contract for Segment 6 near Houston. Segment 6 is 1.8 miles long. It will create a new “Y” rail connection on the north-eastern end of the project as well as a new siding adjacent to the Alaska Railroad mainline to Fairbanks. The “Y” will enable freight service between Port MacKenzie and Fairbanks to the north and Anchorage/Kenai areas to the south. Quality Asphalt Paving was awarded the contract for Segment 3. The segment is 6.5 miles long and will run from Ayrshire Road to Papoose Twins Road near Susitna Parkway. Clearing of the rail extension right-of-way has begun. The 32-mile rail project will connect the mainline of the Alaska Railroad near Houston to the deep draft dock at Port MacKenzie. The Borough has secured $116 million in State legislative appropriations, and state voters have approved $30 million for a General Obligation bond for the project in November 2012. To complete the entire project, this year the Borough is requesting $126 million in State appropriations. The project is expected to be completed by 2016.

Massage Envy

assage Envy—the pioneer and national leader of professional, convenient and affordable massage and spa services—has announced its first

Your Project, Our Responsibility. 24/7 Service

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

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

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 May 2013 | Alaska Business Monthly

INSIDE ALASKA BUSINESS clinic in Alaska. Residents of Anchorage can now de-stress and relax with a visit to the newest Massage Envy Spa now open at 1142 N. Muldoon Rd in the Tikahtnu Commons. The new clinic offers a variety of therapeutic massage treatments and Murad Healthy Skin facials to keep its members and guests on the path to wellness.

Stoel Rives

he U.S. Supreme Court reversed a ruling from the U.S. Court of Appeals for the Ninth Circuit that would have required Clean Water Act permits for stormwater running off logging roads for Alaska, Hawaii and the West. The earlier ruling in Decker v. Northwest Environmental Defense Center had threatened to burden landowners and local governments with enormous compliance and permitting costs while opening the door for administrative challenges and litigation following every permit approval. The longstanding regulatory practice of the EPA has been to treat runoff from logging roads via ditches and culverts as non-point source pollution to be addressed by state best management practices. The Ninth Circuit held that such discharges were “associated with industrial activity” and thus required permits under EPA’s industrial stormwater regulations. Millions of acres of forest land in the West, including thousands of miles of roads, would have been affected by the decision. Timothy Bishop, Richard Bulger and Chad Clamage of Mayer Brown LLP and Per A. Ramfjord, Leonard J. Feldman and Jason T. Morgan of Stoel Rives, along with William K. Sargent of Tilla-

Compiled by Mari Gallion

mook County, prepared the petition for Supreme Court review. Bishop of Mayer Brown handled briefings and oral argument before the Supreme Court.

Davis Wright Tremaine LLP

he law firm of Davis Wright Tremaine LLP has moved to the 188 Building located in the heart of midtown Anchorage at 188 West Northern Lights Blvd., Suite 1100. Davis Wright Tremaine’s clients are businesses from the state’s leading industries, including natural resources, energy, hospitality, transportation, financial services, and real estate development. Davis Wright Tremaine regularly handles complex business transactions and high profile litigation for companies active in the Alaska market. In particular, they are well known for their representation of many Alaska Native entities including ANCSA corporations throughout the state. The Anchorage office currently has 13 attorneys in residence.

University of Alaska

niversity of Alaska Anchorage Chancellor Tom Case has announced that the new on-campus arena, scheduled to open in fall 2014, will be named the Alaska Airlines Center in recognition of a newly forged 10-year agreement with the airline. The agreement, which begins July 1, includes $1 million to create a new scholarship endowment for UAA Seawolf student athletes, plus an enhanced athletics sponsorship contract valued at $5.3 million. A large portion of this agreement will

provide travel sponsorship for athletic teams, the largest single expense for UAA’s athletic program. Alaska Airlines is a longtime partner of the University of Alaska and has been a generous sponsor and supporter of UAA Athletics for more than 30 years. This new agreement ensures a continued partnership between UAA and Alaska Airlines for the next decade, with an option to renew for another five years. UAA received $15 million from the Alaska Legislature in 2009 to begin planning for the new arena. In 2010, Alaska voters approved a bond measure that provided $60 million for the arena and the Legislature provided the balance to complete the project. The 5,600-seat arena is expected to open in August 2014 and will host UAA athletic competitions, high school and college graduations, concerts, youth camps and other community events.

Alaska Public Telecommunications Inc.

laska Public Telecommunications Inc., the Anchorage-based public broadcasting outlet, is rebranding to become Alaska Public Media. The campaign launched on March 18, and the brand transition will be complete in late 2013. Alaska Public Media is the parent company of KSKA FM91.1, KAKM TV and Alaskapublic.org. The company also operates the Alaska Public Radio Network and a shared television service with KTOO-Juneau and KYUK-Bethel. Alaska Public Media and its affiliates deliver content that reaches 96 percent of Alaskans. 

• General Contracting • Marine Infrastructure • Design Build

Dutch Harbor - Unalaska, Alaska

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Alaska Business Monthly | May 2013

620B East Whitney Road I Anchorage, AK 99501 www.akbizmag.com

WHAT HE DOESN’T HAVE TO TELL HER COULD KILL HER.

rg ost.o C l a e TheR

Even a small amount of exposure to secondhand smoke can make you sick and die, yet more than 50% of Alaskans remain unprotected by a smokefree workplace policy. Even if you can live knowing this, maybe she can’t. Think you aren‘t affected? Learn more at TheRealCost.org

View from the Top

Compiled by Mari Gallion

Meini Huser, President and CEO Alaska Dreams Inc.

eini Huser was born and raised on a small dairy farm in a ski resort town in the Swiss Alps. As a child, Huser dreamed about Alaska, reading and collecting every written article or book about Alaska he could get his hands on. His earlier trips to the remote Alaska mountains proved Alaska to be everything that Huser had previously dreamed of. In 1984, Huser—a mountain and skiing guide at the time who worked as a steel erector in the snow-less months—moved to Alaska and founded Alaska Dreams Inc., which specializes in selling or renting and constructing advanced fabric covered steel buildings and pre-engineered metal buildings for oil and mining industries; city, state and federal government; and private sectors in Alaska, as well as Europe, Canada, Russia and of course the Lower 48.

UNIQUE VISION: The main driving force in the design and engineering of our structures is always powered by our customer needs and requirements. Our main focus is to provide our customer with the best possible and most cost effective building solution. This approach has proven us as the leader in the sector of fabric covered structures not just in Alaska but nationwide. A FAMILY AFFAIR: The key players in our company are mostly family members. My wife Anna (vice president and CFO) and I (CEO) are partners and owners of Alaska Dreams Inc. Our son Peter leads the estimating division. He returned to Alaska to work in the company after working in the Lower 48 for several years. Our daughter, Trista, the administrative assistant, assists with payroll and handles the event rental structure division, tracking reservations and scheduling the events. Brittany, our youngest daughter, also works as an administrative assistant. She is the primary point of contact and greets everybody walking into AKD’s office with a great smile, and directs all the incoming phone calls. In addition we have other great people working for us: Homer Eggleston, project manager and safety coordinator/ trainer; Maria Muehlenkamp, human resources coordinator; Chris Dibb, operations supervisor; and AKD’s field foremen Dewayne Hailey and Taylor Thompson, plus a great group of field crew members. FACING THE CHALLENGES: Doing business in Alaska brings its unique challenges, but also unique opportunities that are not available anywhere else. Of course some of the challenges turn into “lessons learned” and force us to quickly adapt for the next similar scenario. 12

Alaska Business Monthly | May 2013

Alaska’s unique challenges, such as logistics to remote locations, the short construction season, adverse weather, high energy cost and limited worker pool, all make running a small business like ours an exciting venture. AN EVOLVING DREAM: Our company has definitely evolved throughout the years. Specializing in the sale and construction of fabric covered structures—tents—as a business was a risky decision, and according to early critics bound to fail without a chance of success. My wife and I incorporated in 1993 and that two person company has been growing ever since. Today we are maintaining construction contracts with the biggest companies in the world, state and federal government and many private people as well. Since then we constructed more than 3.5 million square feet of structures in the state of Alaska and international projects as well. CUSTOMER APPRECIATION: Our promise to our existing and future customers is that we will continue to provide the best possible customer service no matter how small or big the project. This has been our directive since we started almost 30 years ago and it has proven to be the winning business strategy any business could apply. I thank all our customers personally and all of the Alaska Dreams Inc. employees. Only our customers’ support made it possible for Alaska Dreams Inc. to become what we represent today. Most of our business today is the direct result from repeat customers or word of mouth referrals. We appreciate them for choosing to “buy Alaska.”  www.akbizmag.com

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special section

Small Business

Doug Coon, left, and Justin Herrin are the Alaska SBA Small Business Persons of the Year. They are co-owners of Youngâ&#x20AC;&#x2122;s Gear in Anchorage. ÂŠ Chris Arend Photography

Alaska Business Monthly | May 2013

www.akbizmag.com

Young’s Gear: From Drivetrains to Distinction Owners Doug Coon and Justin Herrin, SBA Small Business Persons of the Year By Zaz Hollander

he 2013 Small Business Person of the Year for Alaska is actually two people: Doug Coon and Justin Herrin, co-owners of Young’s Gear LLC in Anchorage, which specializes in automotive drivetrain parts, sales and service. Coon and Herrin oversee the thriving business on International Airport Road from side-by-side desks in an aging but tidy office. Asked about their strategy, both answer quickly. “Just winging it as it goes, on the fly,” Herrin says. “Common sense,” adds Coon. Don’t let that easygoing style fool you. These guys know how to run a business. The U.S. Small Business Administration cited Coon and Herrin’s combination of business savvy, enticing employee perks, customer service and well-organized books. “They really care about doing the right thing—for their customers, for their employees,” says Tom Flanagan, a former Small Business Development Center adviser who nominated the pair for the award. “And making it better.” Young’s Gear specializes in automotive drivetrains, the parts that connect the transmission to the axles in twoand four-wheel drive vehicles. Coon and Herrin bought the business from a former boss ready to retire—maybe close up shop altogether—in October 2007. Within months, they added 100 percent employer-paid health insurance coverage for workers and set up a simple IRA for their employees. Several years later, they purchased two additional vehicle lifts—for a total of four— and more than doubled their workforce from six employees to 13, 10 of them full time. www.akbizmag.com

It was only this year, after five years in business, that the co-owners allowed themselves to take lunch breaks. “Usually lunch was right here,” Herrin says, patting the corner of his desk. “We kind of had to force ourselves. I’ll make sure he goes to lunch. He makes sure I go to lunch.”

‘Shining Star’ All those practices impressed Alaska representatives with the U.S. Small Business Administration. Officials weighing the final choice for Small Business Person of the Year evaluate many factors: a history as an established business; growth in employee numbers; sales or unit volume increases; contributions to the community; and balance sheets. Given the relative weakness of the economy, many older business owners are opting to close their doors rather than go through the trouble of selling, says Scott Swingle, SBA’s Fairbanksbased senior area manager. Young’s Gear, which Swingle described as “a shining star” among other applicants, bucked that trend. They took a business that could have closed in other circumstances, kept it open, and built from there to add employees and boost customer relations. “Part of being a good part of the community is being consistent and actually being around for a while, being sustainable, having a good place to work, giving folks a place they know is stable,” he says. “The owner sold out. He wanted to retire, basically. They purchased the business. It was a big turning point for the business and the employees.” Since 1963, the president has designated a National Small Business Week.

■ For more information about Young’s Gear, go to youngsgear.net ■ For more information about the U.S. Small Business Administration, go to sba.gov The Young’s Gear award will be presented at a luncheon on April 25. The 2013 Alaska Small Business Person of the Year will attend the national celebration in Washington, D.C. to compete for the National Small Business Person of the Year award, according to the SBA. Swingle called Young’s Gear to share the good news in early March. “I was surprised,” Coon says. “Got a little choked up.”

A Big Fan This is the second year running that the owners of Young’s Gear received nomination as Small Business Person of the Year. Anyone can nominate a business person; often friends or family or coworkers do. Coon and Herrin, though, were nominated last year by Flanagan, the former advisor who now teaches logistics at the University of Alaska Anchorage. The pair met Flanagan several years ago. They approached him for help: what could they improve about the business? Flanagan said he was immediately impressed with the team’s financial acumen and persistence. “How we came to meet is insightful to their nature,” he says. “They always want to find a way to be doing it better.” Coon and Herrin told him they made use of an SBA loan and figured they’d see what kind of help they could get from May 2013 | Alaska Business Monthly

Justin Herrin, left, and Dave Frank work on a drivetrain at Young’s Gear in Anchorage.

the Small Business Development Center. He got a tour of the business. He looked for organization, neatness—did they know where everything was? Did they have accurate financial records? A good support team of lawyers, accountants, financial experts? How about their relationship with the previous owner? “It looked like it was working,” Flanagan says. “It had a good feel to it. They said, ‘We’re just trying to see what you think we can do better.’” A pallet of parts caught the advisor’s eye. It seemed like somebody overdid the order. Coon and Herrin had an answer: the supplier was about to stop making that model, popular with customers. Young’s Gear didn’t buy them in bulk just to get a better price, Flanagan says. “They were smart enough to know these parts were going to be in demand.” Both owners knew they wanted to spend a little less time at work after putting in long hours building the business. Most business owners grapple with that balance; few make it a priority. 16

Alaska Business Monthly | May 2013

“When we applied this year, they highlighted the fact they were taking lunch breaks. They had their vacations scheduled,” Flanagan says.

Busy is Good The co-owners had to keep quiet about the award. They couldn’t tell their employees until the official announcement at the April 25 banquet. They both looked a little pained about that during a March interview. “We’ll plan to have some kind of inhouse celebration, maybe have something catered in, a thank-you party celebration,” Coon says. The place was buzzing. Three employees helped customers at the counter. Boxes of parts filled shelves behind them. More inventory sat row by row on shelves in the open, two-floor shop dominated by fourwheel drive vehicles up on several lifts. The Phones Ring Constantly Young’s Gear does about half of its business with retail customers who buy parts

and service over the counter or get drivetrain repairs done in-house. Wholesale sales account for the other half. The company specializes in drivetrains only, not engine repair or body work. A heavy steel axle sheared in two sits on one shelf, one end twisted and sharp. How the heck does that happen? A commercial truck driver in Kodiak locked the differential for traction and forgot to release it before hitting the pavement. That’s not exactly typical, but it’s not unique either. Coon and Herrin talk easily about the kind of repairs that Young’s Gear has made its niche: Rear differential upgrades and traction upgrades. A lot of military coming home from deployments are getting big tires for their Jeeps—that means they need to get the gear ratios in the front and back changed. A lack of maintenance coupled with driver “error-slash-abuse” accounts for most of the repairs they see, Coon and Herrin say. www.akbizmag.com

Coon gives an example: “When somebody mashes the throttle on a half-ton Chevy at a stoplight taking a right turn, lighting the right rear tire up, and the other side catches, the next thing you know you’ve got parts flying out the rear cover and shock load,” Coon says. “Then you see a slide-back wrecker in the parking lot. The first thing you ask the truck driver is, ‘Will the truck move under its own power?’” “A lot of times it won’t,” Herrin says.

Jubal Burkhart, left, points out something about a part to Justin Herrin at Young’s Gear in Anchorage. © Chris Arend Photography

How it all Started Young’s Gear began in Fairbanks in the late 1970s. Owner Ron Young later expanded to Anchorage in 1997, setting up shop in the current location on International Airport Road. The aging building, built in 1965, is well-worn but clean with a few brightly colored new additions: those newer red and yellow vehicle lifts in the bay. Coon and Herrin bought the business from Young in 2007. Both knew the place inside and out. Herrin, 38, started at the store when it opened in Anchorage in 1997. He worked as manager for two years, then left for a few years in 2005. A bio on the company website says Herrin’s “ability to recall part numbers from memory is extraordinary, making him a true talent at the parts counter.” A nameplate on his desk reads “Boss of You.” Coon, 48, came to the Anchorage business in 1999 after working in the Fairbanks location for more than a decade and served as manager for three years before moving on in 2003. His talent is “his ability to communicate with customers by answering complex drivetrain questions as well as explaining how things work.” Both returned to the company to make an offer to Young when he made it clear he was ready to get out of the Anchorage end of the business. They adopted the business model already in place but made some crucial changes. Coon says they crunched the numbers but also started tracking appointments with a computerized calendar and realized some customers were waiting up to two weeks for service. “Looking at some of the numbers, we saw shop labor seemed to be doing well,” Herrin says. “With help from employee suggestions, we decided to add a third lift and later a fourth to work on www.akbizmag.com

May 2013 | Alaska Business Monthly

Justin Herrin looks through a drivetrain part. ÂŠ Chris Arend Photography

Alaska Business Monthly | May 2013

www.akbizmag.com

vehicles. That equated to two more people out in shop working. We just kind of refocused on where the money was.” “We looked at monthly numbers after adding the third lift and another body. It’s like, ‘Hey, this is working! Let’s put a fourth in.’ Which is the reason revenues expanded and the employee count has gone up.” Some challenges remain. Current employees include a core group that stayed on after the business changed hands. But when new help is needed, Coon and Herrin say, finding counter employees is tricky because Young’s Gear is more specialized than many auto industry businesses. Herrin sighs when the subject of health insurance comes up. Young’s Gear covers their employees at 100 percent. Health insurance goes up every year at 14 to nearly 20 percent. But perks like insurance—and that IRA—are important to keep employees happy, Coon says. “We try to keep turnover low because that’s very unproductive,” Herrin says.

www.akbizmag.com

Alaskans Together

“ Delivering you on time,

“

Book Smart The company accountant, Matt Makos with Coghill Group PC in Kenai, says Young’s Gear is a rare client. “They really make our job very easy,” Makos says. “They’re very detail oriented and pay attention to what’s going into their system.” Coon and Herrin are “very good at checking their data entry into the bookkeeping system, doing their bank reconciliations on their various accounts,” he says. “They’re very meticulous on the detail that’s being posted to the general ledger.” The owners pay attention to the numbers every month but also compare them to the previous year’s figures. “They keep a very close eye on it. They really do care about it. It’s not just making the money or picking up customers. They’re paying attention to their finances as well as being owners and running the business.” Flanagan, too, credited the duo’s “knowledge of not only the financials but what it meant. They have their accountants and advisers, but they know when it comes time to get capital, I have to tell a story and finance in these ways!” He sounds almost as proud of Coon and Herrin’s award as they do. He re-

Bringing

so you can deliver on time.

Bringing Alaskans Together

flyera.com

May 2013 | Alaska Business Monthly

Zaz Hollander is a journalist living in Palmer. 20

Alaska Business Monthly | May 2013

ceived a message from Swingle when the SBA chose the Young’s Gear owners. Almost immediately, Coon sent an email: “Got the great news from Scott this morning and we wanted to thank you ... It’s awesome!” “The changes they made were very creative,” Flanagan says. “They weren’t extraordinary but they were using the space they had and those types of things. It increased productivity a lot.” Coon and Herrin are actively looking to purchase a building of their own—to buy instead of rent—in another marker of their relatively rapid success turning around the business. The co-owners say they don’t have any other big changes for Young’s Gear in their plans for the future. They just want to build on what they’ve got. “Streamline, and be as efficient as we can be,” Herrin says.  ABOVE: Doug Coon, left, and John Enriquez help a customer at the counter. TOP: Doug Coon, left, and Chris Mikkelsen working in the shop at Young’s Gear in Anchorage. www.akbizmag.com

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special section

Small Business

Small Business Lessons Getting the basics down By Sam Dickey

he stock market is once again poking around in record high territories, credit seems a bit freer, and new businesses seem to be popping up everywhere. Is the drought over? Is it back to business as usual or is this the new normal? My grandmother used to say “Take care of your water, because sometimes it don’t rain.” I never quite understood what she was talking about—until now. The last several years have taught many of us some difficult lessons. Zero interest credit cards, the lowest mortgage rates in history, the free flowing of capital for our businesses, and customers buying regularly were all parts of our lives prior to 2009. Suddenly our customers were not buying as much, credit lines that had been open sometimes for years were cut drastically (if not closed), loans became more difficult to obtain, and suppliers were tightening their payment terms. In short, it had stopped raining.

Lessons If you weathered our last drought, congratulations are in order. If you are still working to survive, or are just beginning your entrepreneurial journey, there are some important lessons the last few years have reinforced. Among the most important of those lessons is “don’t panic.” When a recession or other downturn hits, small business owners or managers have many reactions, and some are damaging. Often an initial reaction is to cut everything—personnel, inventory, budgets and prices—all suffer. If you cut everything 10 to 40 percent, you are not just saving money, you are cutting money that supports mission critical areas, the very things that will help you not just survive but thrive. 22

Alaska Business Monthly | May 2013

If you cut your inventory to the bone, your customers and suppliers may see that and wonder if you are stable, if you are going to be around. They will react as they see appropriate and your slow spiral down may pick up speed. Ideas of failure become a self-fulfi lling prophecy. Advertising budgets are often among the first things to go. Does it make sense that when you need more customers, so you cut the very area that brings in more customers? Make your cuts judiciously and explore other low cost ways to increase your visibility. Social Media may be an excellent option for you. Presence at community events is another great way to make yourself known at little to no cost. Before making cuts be sure you understand exactly what you are cutting and why. Programs such as “Profit Mastery” offered through Small Business Development Centers located throughout the state and across the country can help you understand both the what and the why.

Planning But what if you are just starting? The advice I give all nascent entrepreneurs is to “write the plan.” Business planning is an important tool. By the time you have finished your plan, you will have thought through many of the issues you are likely to encounter. Why are you in business? Who are your customers? How will you reach them? How will you deal with financial issues? By writing your plans down you will solidify your thoughts and likely become more committed to making things happen. When digging a well, you will want to know how deep you are willing to go to find water before moving on. If you are ready to start your planning or

just want to make sure you have a good handle on it, you might want to contact the Women’s Economic Empowerment program, a part of the YWCA in Anchorage, for guidance on common startup issues and business planning. Yes gentlemen, they would like to talk to you too. But what if your questions are more industry specific? Fortunately there is help there too. SCORE is a nationwide cadre of more than 14,000 volunteer business counselors who have managed and/or owned their own businesses. In this group you can often find a counselor with experience directly in your industry—perhaps they have even experienced an identical issue. These folks have experienced floods and droughts of their own and may be able to help you get through yours. It is said, “A rising tide floats all boats,” even the ones with small leaks. It is up to you to determine where those leaks are and get them patched. If you want your boat to be watertight you need to make several things a matter of your regular course.

The Basics Get the basics down cold. Proper planning and accurate financial reporting are a must. Cut costs, but be sure you are cutting the right ones. Manage your cash flow carefully. Spend on marketing—yes, sometimes you have to spend money to make money—but again, be judicious. You already have an important asset: your customers. Be sure to hold on to them and listen to their concerns. Diversify not just your products but your customer base. Delivery of your products and services must be on time and your customer service excellent. There are many more things that you www.akbizmag.com

could add to the above list and may want to consider—if not for the short term, then certainly for the long haul. Simplify your processes: this may include outsourcing non-essential functions or reducing product complexity. Invest in training: cross-train your staff and invest in skills that increase revenue such as telephone selling techniques or sales training for your staff. Be innovative: improve existing products sold to existing markets.

Winning Proof Young’s Gear in Anchorage provides proof that good planning, careful execution and strong grasp of the basics can lead to growth even in difficult times. By offering their customers best in class services at a fair and reasonable price they have dramatically increased sales, profit and equity growth without requiring abnormal increases in assets required to support the growth. Health care, retirement benefits and a strong team are just a few of the things that help them attract top quality technicians in an otherwise tight skills market. Young’s Gear employees are fully integrated into their business, and together as a team they have worked to make Young’s successful time and time again with their intense “work smart” focus. The team suggested carts that made daily production more efficient. The team installed equipment to improve productivity and safety at the same time. The team installed equipment that allowed heavy items to be moved by one person rather than three. Not once but twice they have reconfigured to go from two production areas to three then four without increasing floor space required. Young’s is also engaged in their community, providing not only financial support but habitually assisting professional, service and recreational activities as well. I would like to extend my congratulations to the Young’s Gear team on their selection as the Small Business Administration’s Alaska Small Business persons of the year. Plan, obtain guidance, evaluate your course of action, re-plan, execute the plan and repeat. These seemingly simple instructions are part of the core of operations at Young’s gear: It’s how you www.akbizmag.com

make rain. I would encourage you to go make some rain of your own. I didn’t grow up on a farm and only now do I understand my grandmoth-

er’s wisdom. I will be taking care of my water a little better from here on out. I hope you will too. 

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

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special section

Small Business

Children have a lot of different play tools to choose from at Kaleidoscape Play Studio in Anchorage’s University Center Mall, where owner Jennifer Stratton brings the excitement and creativity of a theme park visit to a smaller venue.

Small Business Trends in Alaska Entrepreneurs embrace technology, mobile food, social media

hat’s hot among Alaska’s small businesses? In short, technology. It’s one of the most bustling centers of activity among small businesses in the state. And with recent legislation aimed at giving small technology businesses a boost, chances are Alaska is just beginning its own tech boom. Another niche business popping up around the state: mobile food vendors. And one of the largest recent trends among existing and new small businesses is of entrepreneurs tapping into social media to keep in touch with clients and reach out to new customers. To take a bird’s eye view, Alaska has about 17,000 private-sector firms, according to information from state economists reported in the September edition of Trends magazine published by the Alaska Department of Labor’s Research and Analysis Section. About 60 percent, or 10,000, of the employers in the state are businesses with fewer than five employees.

Alaska Business Monthly | May 2013

By Rindi White Alaska’s Technology Boom Tech-savvy readers might recognize Tyler Arnold’s name—he was profiled in Alaska Business Monthly last July and spoke about his business, SimplySocial. He and his partners were on the cover and SimplySocial has enjoyed widespread multi-platform coverage since. Arnold’s business, which helps companies develop and manage a social media presence, was one of the first to take advantage of House Bill 252, legislation passed last year that, according to its sponsor statement, encouraged “the development of high-growth technology and research companies in Alaska” by exempting them from state corporate income tax. “Alaska is the most competitive place, tax-wise, in the United States for opening a software development company right now,” says Allan Johnston, selftitled chief encouragement officer of the Alaska TEAM (that’s The Entrepre-

neurs and Mentors Network), a growing group of people working together to boost technology-related businesses. “We saw a community that was willing to nurture young tech companies,” Arnold says. A lifelong Alaskan, Arnold says the business climate in Alaska has helped make his company a success. “Big companies are easy to work with in Alaska. And being an Alaskan counts for something,” he says. Arnold’s company is just one of a handful of relatively new tech companies making waves in Alaska. Another, Catapult Consulting, is an Anchorage-based mobile phone application development company. Catapult has several apps that have ranked as top sellers in numerous app stores, including a game app called Trenches II they recently developed for big-name gaming company EA, or Electronic Arts. It’s hard to get a good read on how the technology sector is faring on a statewww.akbizmag.com

www.akbizmag.com

wide basis. The kinds of jobs most people would consider tech jobs straddle two of the 11 economic sectors used by the state to classify businesses: the information sector and professional and business services. “It’s extraordinarily hard to quantify,” says Jon Bittner, vice president of the state-run Alaska Economic Development Corp. “We work with more than a dozen tech-based companies and every single one of them is hurting for employees. What we’re seeing is, they’re all expanding and they’re all saying there’s more work out there than people to do it.” Although the job numbers are fuzzy, Bittner says last year’s first Anchorage Hackathon was an eye-opener. It’s an event slated that puts nonprofit groups looking for ways to solve data problems together with information technology workers or techies who will crunch data and turn out information in surprising new ways. Thirty people participated in the three-day event, resulting in five new data applications, he says. It was a window into a larger reservoir of knowledge. “We were surprised to find there was a really vibrant community out there,” Bittner says. “They just didn’t really have a nucleus to center around.” A nucleus is forming, and Johnston speculated Alaska’s tech businesses would grow rapidly. A number of businesses have been developed using the virtual incubator that TEAM developed, and the annual Alaska Business Plan Competition. Other events like the Hackathon have helped drive up interest in technology and get people talking with each other about creating new businesses, Bittner says. “Everyone is working together on this. That’s never happened as well as it has this year,” Johnston says. “I think it’s going to be a geometric thing; we’ll get a few businesses going and then more will start popping up in Juneau and Fairbanks and other places in the state.” “What I think you’re going to see is an explosion of a sort of small-scale niche manufacturing as well,” says Bittner. Not mass manufacturing like the U.S. used to be known for, but small-scale manufacturing using tools such as three-dimensional printers and laser etchers, he explains.

Kaleidoscape Play Studio owner Jennifer Stratton.

Gourmet Food on Wheels Mobile food trucks are a trend sweeping the Lower 48 and they’re popping up more frequently in Alaska. Wheel Good Food, a company that began operating last fall, has two trucks that offer gourmet bites like beef sliders and polenta fries—a meal runs around $10. On board, according to their website, are two recent UAA culinary school graduates. Urban Bamboo, a vivid green Asian fusion food truck, boasts three chefs whose resumes include hot Anchorage eateries. Their menu also aims for the $10 range. Eat Alaska offers inventive sandwiches for under $10 and soups to go. And proving not every business has to fit the mold, Tiers From Heaven is a mobile cupcake truck that offers sweet gourmet treats for $3 each. Those are just a few of the mobile meal deals on offer around Anchorage—plenty are available elsewhere in the state as well. State Department of Environmental Conservation Environmental Health Officer Mike Solter says 105 mobile self-contained food facilities are currently permitted in Alaska. Of those, 43 were added just last year. Between 2010 and 2011, he says, 24 mobile food services were added. Why? Grant Larsen, Anchorage business adviser at the Alaska Small Business Development Center in Anchorage, says mobile food trucks offer chefs a chance to run their own kitchen without the overhead of a brick-and-mortar location. His office offers classes on strarting a small business such as a mobile food

truck and says there’s been more interest in the classes recently. “Chefs often like to get out on their own and there are a lot of good chefs here in Anchorage,” Larsen says. “To get started (in a restaurant) is never inexpensive, especially if you’re talking about a commercial kitchen. People see mobile food service as a way to enter the restaurant industry with lower startup expenses.” Jennie Carter, who operates Tiers From Heaven, says a mobile food truck is a good fit for her because it allows her to be versatile. “I didn’t want to get so big that I would have to hire employees and I didn’t want to get stuck with a storefront where I would feel forced to make my business bigger just to pay for the lease, utilities, etc.,” Carter says. She says the mobility allows her to go where her customers are, or are likely to be. Carter drives to farmers’ markets, weddings, sporting events and city events— she can do her work wherever she goes. It can be a challenge to get permission to park and sell, she says. While business owners might be OK with her selling cupcakes in their parking lot, many landowners are not so pleased to have someone making extra dough from their real estate. “There are a handful of places that I favor, due to convenience for myself as well as customers, but I’m constantly looking for empty lots with ‘for lease’ signs or vacant buildings with a real estate sign,” she says. May 2013 | Alaska Business Monthly

Online Contact Vital Traditional brick-and-mortar business owners are sometimes paralyzed by all the options available online for reaching out to their customers. Which platform is best? Do I need a website? How can I get my website to come up at the top of search engine results? “It scares people to think about keeping their website and Facebook and Twitter updated while also monitoring yellowpages.com, yelp.com and all the sites that allow the general public to comment on your business,” Larsen says. The Small Business Development Center offers social media classes answering an array of questions about what works, what doesn’t and how to identify what will best suit a business. Lauren Riley coordinates the workshops and says both the number of Mia Grace Stratton in a pod chair at classes held each year and the attenKaleidoscape. dance have increased dramatically. In Asked if she saw the food truck as a 2009 the SBDC held two classes, with stepping-stone to a brick-and-mortar 21 attendees. In 2012 more than 100 shop, Carter says she’ll stay on the move. people attended 9 classes. Riley says “My long-term plan is to continue to SBDC plans to continue holding social operate as a mobile business. It gives media classes through 2013, with one me flexibility both in my professional overview class each month and an addiand my personal life,” she says. tional class each month focusing on one social media outlet at a time—FaceSocial Media Key book, YouTube, Pinterest, for example. It’s probably little surprise that busi“The reason people come to our nesses like Carter’s, which have to keep workshops is, they’re confused by the customers apprised of where they are choices. They want to know what the each day, are making use of social me- biggest bang for their buck is and where dia platforms. Carter and other mobile to begin,” Larsen says. food vendors update customers via SBDC also offers clients a one-stop tool Twitter and Facebook in addition to for managing social media and customhaving a website and sometimes mak- er reviews called Brandify.com. Riley ing use of other media platforms. says it allows business owners to look at “I think the majority of my customers everything they have happening online know to find me online,” Carter says. at once and see what people are saying Carter holds contests and referral about the business. It also suggests ways competitions where customers refer to improve the business’s presence. And friends to her business, and the cus- if someone leaves a bad review, Riley tomer with the most referrals wins a says, the business owner can personally prize. Sometimes she sparks conversa- respond and try to remedy the problem. tion online by asking her followers their Although the SBDC works with Branfavorite cupcake flavor. But her online dify.com, there are several other tools presence is about more than just pro- that help businesses reach out to and motions, she says. interact with clients—including Ar“I try to answer every question and nold’s SimplySocial. every message that I receive. I try to Jennifer Stratton, owner of the recentlet my personality show through when ly opened Kaleidoscape Play Studio, an I post, rather than just the facts. I feel indoor art and play space in the Univerthat helps people get to know me and it sity Center Mall in Anchorage, says sohelps me stay in tune with what people cial media allowed her business to open want,” Carter says. with a ready-made customer base. 26

Alaska Business Monthly | May 2013

“As of right now (in March) I have 1,574 likes on Facebook and we’ve been open a month,” Stratton says. What’s more, she says, is their engagement rate—a way to measure how many followers are interacting with their page—is much higher than it is for most businesses on Facebook. Why? Stratton says she updates her page daily and has a rotating schedule of things to post. She launched the page in August, before she even knew where her business was going to locate. “My plan for doing that was: one, I couldn’t wait to get started; and, two, we wanted to build a community of families of people who would come to the play studio once it opened,” she says. In addition to sharing details about her plans, she posed questions to the people following her progress. What snacks should be offered in a snack bar? That one got 67 comments, she says. “Ask questions that you, yourself, would answer. The key is finding the niche that your community responds to,” she says. She shared site progress every Saturday. Mondays were “Mustache Monday,” and she’d post a picture of someone, somewhere, with a mustache. Thursdays were “Did you know?” with a fun kid-friendly fact. The schedule has changed now that she’s open, Stratton says, but she still keeps a schedule. “It was something our community could look forward to every single week,” she says. Business owners whose businesses aren’t currently online frequently voice fears that being online will take time—too much time for too little effect. Both Carter and Stratton says being active online does take time, but it’s worth it. It helps the community not only connect to but interact with their businesses, the women says. “If you have not made the jump, you need to. It may be daunting at first but the more you use it, the more friendly it will be. It is most definitely worth the time and effort,” Carter says. “For me, I think that I wouldn’t be as successful if I didn’t promote my business through social media. Rarely do I have people tell me that they were just walking or driving by and saw my truck. Most of the time, people are stopping by because they saw me on Facebook.”  Rindi White is a freelance journalist living in Palmer. www.akbizmag.com

FinAnciAl services

Wells Fargo Anchorage Business Banking Manager Bond Stewart and Birchwood Montessori Director Tere Obrochta discuss the school’s business plan and ﬁ nancing provided through the U.S. Small Business Administration.

Financing Startups and Acquisitions Loan guarantee programs and business plans help By Tracy Barbour

hen Birchwood Montessori School opened in Anchorage on March 4, it was a dream come true for Tere Obrachta. She had previously worked in social services, but she always wanted to start a business to provide child care and early education services. When she moved to Alaska from Alabama in 2008, she decided it was finally time to pursue her passion. But Obrachta—who had a bachelor’s degree in psychology at the time— needed to enhance her expertise, experience and credentials. So she worked at Anchorage Montessori School for nearly four years, completed a master’s degree in early childhood education and

Alaska Business Monthly | May 2013

teaching, and earned a master’s level Montessori certificate. Then she pushed forward with her business goals. She presented a carefully crafted business plan to Wells Fargo bank and garnered a $400,000 loan to open the school. “This is like a second start,” says 50-year-old Obrachta. “Things are going well.” Birchwood Montessori School, which operates on the belief that children have unlimited potential to learn, is currently enrolling children from 19 months to 5 years old.

Guarantee Programs Facilitate Financing Obrachta’s successful loan experience with Wells Fargo was largely due to

backing from the Small Business Administration. Her financing was guaranteed by the SBA 7(a) loan program. While the SBA doesn’t make loans directly, it offers several guarantee programs that make it easier for banks to lend money to new and expanding businesses. “We reduce their risk and exposure,” explains Sam Dickey, acting director of the SBA’s Alaska district office. “With a guarantee, a bank will be more comfortable making the loan.” The SBA is a valuable resource with the goal of helping businesses start, grow and succeed. It can’t guarantee financing for passive investments, a church daycare or any business that discriminates based on www.akbizmag.com

gender or sex. However, the SBA guarantee loans for just about any other business that falls into the “small” category. The definition of small, Dickey says, is based on the industry. For instance, the size of a services or retail business is determined by the number of employees. For Page other industries like construction, it’s based on revenue. “Part of the trick is finding the right program that fits with your project,” Dickey says. Many banks, credit unions and other financial institutions in Alaska offer SBA 7(a) and Certified Development Company 504 loan programs for borrowers who can’t quality for conventional financing. The 7(a) program can be used for everything from working capital to purchasing construction materials to acquiring another business. The 504 program is designed to finance real estate and hard assets. It gives borrowers the advantage of extending payments over a longer time, such as 25 years instead of the standard 15-year term. “These are typically ‘dirt’ deals,” Dickey says. “You’re buying land or a building for occupancy, not to lease out.” Entrepreneurs who are interested in exploring an SBA program should start with their financial institution. The lender will determine the best type of financing for their project and recommend an SBA loan if traditional funding isn’t feasible. Loan guarantee programs are also available through the U.S. Department of Agriculture, Alaska Development Export Authority and Bureau of Indian Affairs. The Anchorage Municipality’s new 49th State Angel Investor Fund also provides financing for startups.

Financing Startups New businesses typically start from scratch and need money for everything from equipment, furniture and fixtures to leasehold improvements and working capital. Equipment financing can enable them to function in their business capacity, while leasehold improvements allow them to customize the space to meet the needs of their business. Working capital financing, as the name implies, helps cover the overhead of the daily operations such as payroll, rent, marketing and other expense. www.akbizmag.com

Insufficient collateral, capital and planning are the three greatest stumbling blocks a new business must overcome, says David Hamilton, Alaska USA Federal Credit Union’s executive director of business and commercial services. He says it’s critical for borrowers Hamilton Stewart to thoroughly understand the The needs of the borrower gener- cost of starting and maintaining a busially determine the type of financing ness, which requires extensive research involved. A monthly term loan, for by the business owner. instance, is generally used to finance To properly prepare for the loan proequipment, according to First National cess, Hamilton says, borrowers need to Bank Alaska Vice President Jay Page. do their homework and have the docuShort-term financing, such as a line mentation to support their loan request. of credit, is ideal for making payroll, This includes having a well-written busibuying supplies and other recurring ness plan with financial projections that operating expenses, as well as covering can be supported by market analysis of accounts receivables. However, Page the borrower’s industry. The plan should says, no two startups are alike. He adds: also include an explanation of the or“They’re like snowflakes. They have ganization and management structure their own unique situation.” of the business as well as the roles and Start-up business borrowers have to responsibilities of key players. It should meet all the basic qualifications for fi- also include details about the company’s nancing. They must have the capacity intended marketing and sales strategy, to repay the loan, capital to invest, suf- the competition and challenges that must ficient collateral and favorable econom- be overcome. Hamilton adds: “It is also ic conditions. Character or personal important for borrowers to have their credit worthiness is also a key require- personal financial affairs in order. This ment. Lenders also consider what type includes an advanced review of credit reof credit history the business owners ports to ensure that they are current with have as individuals. “If they have good all creditors and that any negative reporthabits dealing with personal debt, they ing has been addressed and rectified.” should also have good habits handling Chris McGee, president and CEO of their business debt,” Page says. Alaska Growth Capital, finds that startPotential borrowers often think the ups often fail to analyze the risks that can process of securing financing is easier attack the future of their business. That’s than it actually is, according to Page. why he encourages potential borrowThey don’t understand everything a ers to carefully consider their business bank has to do to feel comfortable mak- idea. They should contemplate whether it ing the decision. They also don’t under- makes sense, if it fits with the economic stand that the bank is truly interested in model they want to operate in, and if they their success. “If we don’t think they’ll have adequate management experience be successful, we’re doing them an in- in the business they want to start. justice by making the loan,” Page says. They can also solicit initial feedback Wells Fargo’s Anchorage Business from their lender. For example, McGee Banking Manager Bond Stewart agrees. says, “When they call us we’re more His bank also ensures that borrowers than happy to talk about the business substantiate adequate cash flow, collat- model—its strengths and weaknesseral and secondary sources of payments es—to see how sound their idea is beto support their loan. The business needs fore they complete the application.” to have a strong story as well as a great Financing Acquisitions business plan that explains how they’re going to be successful. “We want to pro- Business acquisitions allow established vide loans that grow our economy and companies to almost instantly grow their create jobs,” Stewart says. “We are inter- operations. They offer a viable way to secure new assets, gain market share and ested in helping businesses succeed.” May 2013 | Alaska Business Monthly

Wells Fargo’s Bond Stewart (second from left), with Birchwood Montessori’s Mikae Gilbert, Tere Obrochta, Kayley Sheldon and Ann Obrochta. © Chris Arend Photography

stay on top of changing industry trends. That’s exactly what happened with Jim’s Equipment Repair LLC, which has operated a full-service heavy equipment repair and industrial machine shop in Anchorage since 1994. The company acquired Wilkie’s Heavy Equipment Repair and Parts Inc. in 2010 for a purchase price of $510,000, plus an additional $73,150 for moving, professional and contingency costs. Alaska USA helped the business obtain an SBA 504 loan, which encompassed a $281,575 term loan from Alaska USA and a $225,260 term loan from the SBA, according to owner Jim Evridge. The 504 loan program was advantageous because it offered a lower cash down payment and a below-market, fi xed interest rate. Both loans have a 10-year amortization, although Alaska USA’s loan has a seven-year call. Evridge used a significant amount of the loan proceeds to integrate Wilkie’s 10,000 square feet of assets and inventory into its 13,000-square-foot facility. Jim’s Equipment Repair also acquired Alaska Diesel Rebuilders through a separate transaction that was not part of its original expansion business plan. The acquisition involved a combination of cash out-of-pocket and owner financing. The acquisition financing has enabled Jim’s Equipment Repair to significantly increase its reach and footprint. “The purchase of Wilkie’s and Alaska Diesel Rebuilders has expanded our services, product offerings and client list, which has allowed us to gain more of the Alaska market share from the larger Lower 48 shops,” Evridge says. “Our revenues more than doubled, and as we continue to become more efficient on the cost 30

Alaska Business Monthly | May 2013

side of the equation, our profitability has exceeded our expectations.” Financing the acquisition through Alaska USA was a positive experience for Evridge. “They know exactly who the players are and what is going on in our industry,” he says. “The can-do, relaxed attitude over there has always been encouraging to us.” When financing acquisitions, Alaska USA generally requires the existing company to provide at least three years of historical financial data that reflects positive trends and profitability, according to Hamilton. It analyzes the cash flow of both companies involved to ensure adequate debt service coverage is available for the new debt. The credit union also examines tangible assets to collateralize the loan amount and requires the business and principal owners to have good credit histories. Sometimes additional information is required to support the loan proposal. “Frequently, there is ‘blue sky’ that is part of acquiring any existing business; therefore, we may need to look at all available assets owned by the business and principals as options for securing the loan,” Hamilton says. At Alaska Growth Capital, the overriding goal when financing acquisitions is to put together a structure that best fits the buyer and seller. There isn’t an industry that Alaska Growth Capital won’t consider financing. However, there is one major stipulation: The buyer has to be the primary operator of the business. This ensures the buyer has an awareness of the financials of the market they’re getting into, according to McGee. That usually isn’t a problem because acquisitions typically involve expansions within the same industry. “Ninety-nine

percent of the time, there will be a lot of synergy with the companies,” he says. When evaluating loan proposals for acquisitions, Alaska Growth Capital considers a number of factors, including whether the expansion makes sense and how it’s going to align with the greater goal of the existing company and growth plan. McGee says, “We also want to make sure we’re looking at the downside risks—that it’s (the acquisition) not threatening the core operation.” At Wells Fargo, financing acquisitions involves examining all of the fundamentals. This involves determining the sufficiency of the existing company’s revenues, whether the businesses complement each other, and whether the acquisition is feasible from a global perspective. “Are we comfortable with the risk, their ability to service their debt, and their ability to cover their debt?” Stewart asks. Acquisitions are like startups on steroids, according to Page of First National Bank Alaska. The acquiring company is already established and typically wants to expand horizontally into familiar territory. The business owner has developed a level of savvy and is capable of doing due diligence. “They’ve been down that road before.” First National Bank Alaska strives to help business owners carefully evaluate the financial feasibility of their expansion opportunity. “We’re going to do our due diligence and look at the financial statements of the company being acquired,” Page says. “If we don’t think it’s a good acquisition, we’ll tell our customer why.”  Former Alaskan Tracy Barbour writes from Tennessee. www.akbizmag.com

AGENDA

Compiled By Tasha Anderson

May

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Business of Clean Energy in Alaska Conference

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May 2-3–Dena’ina Civic & Convention Center, Anchorage: Held annually, this conference brings together business, civic and government leaders from around the state, nation and the world in a strategic and educational forum to share information and ideas on moving Alaska toward a sustainable energy future. alaskarenewableenergy.org

Alaska Bar Convention

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May 15-17—Centennial Hall, Juneau: Includes CLE credit opportunities, retirement reception for Justice Carpeneti, dinner, dance and awards banquet with Keynote Speaker Peter Leyden. Registration required. alaskabar.org

July

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ASBO Annual Meeting

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USAEE/IAEE North American Conference

Private Sector Transportation Infrastructure and Assets: Response Capacity and Development in the Arctic Workshop May 29-30—World Trade Center, Seattle: Follow up discussion to the Dec. 2012 Arctic Transportation Infrastructure workshop in Reykjavik; will focus on the private sector and industry response capacity, with an emphasis on assets deployed and infrastructure developed in the Arctic. Opening reception on May 29. Registration required. institutenorth.org

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Institute of the North’s Week of the Arctic

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American Society of Civil Engineers 10th International Symposium on Cold Regions Development: Planning for Sustainable Cold Regions

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ISOPE Arctic Materials Symposium June 30-July 5—Egan Civic & Convention Center, Anchorage: Special symposium organized to provide the scientific-industrial community an insight of new materials and technology development in the subject of Arctic Materials. arcus.org

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Alaska Business Monthly’s Top 49ers Luncheon

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August 12-18—The Institute has been convening Week of the Arctic since 2011 to help Alaskans understand the critical challenges and issues at stake in the Arctic. It culminates with the Robert O. Anderson Sustainable Arctic Award, which recognizes and individual or organization for long-time achievement in balancing development of Arctic resources with respect for the environment and local benefit. institutenorth.org

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Alaska Fire Conference

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September 23-28—Anchorage: The theme is “Today’s Visions Tomorrow’s Reality.” Includes training and a firefighter competition. facebook.com/AlaskaFireConference

AAR Convention September 17-21—Hotel Captain Cook, Anchorage: The Alaska Association of Realtors 2013 Convention theme is “No Excuses.” It will be hosted by the Valley Board of Realtors. alaskarealtors.com/2011-convention/

October 9-11—Anchorage Marriott Downtown, Anchorage: Events include keynote speakers and training sessions. Registration required. alaskahousing-homeless.org/conference

Native Knowledge: Respecting and Owning our Living Culture

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October 21-23—Carlson Center, Fairbanks: Sponsored by the First Alaskans Institute, the conference stimulates dialogue between young people and elders, and encourages the maintenance of traditional Native values and practices in a modern world. Registration required. 907-677-1700, firstalaskans.org info@firstalaskans.org

Alaska Federation of Natives Annual Convention

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October 24-26—Fairbanks: Annual gathering of Alaska Native peoples to enhance and promote the cultural, economic and political voice of the entire Alaska Native community. 907-263-1307, nativefederation.org agrohall@nativefederation.org.

NWPPA/APA Alaska Electric Utility Conference & Tradeshow

Alaska Oil and Gas Congress September 17-18—Anchorage: The Annual Alaska Oil and Gas Congress brings together oil and gas professionals from across the US, Canada and abroad and is dedicated to updates on projects, policy, opportunities and challenges in the oil and gas industry in Alaska. alaskaoilandgascongress.com

October 2—Dena’ina Civic & Convention Center, Anchorage: Come honor the top ranked Alaska companies by revenue at our annual luncheon. Contact: Tasha Anderson 907-276-4373 surveys@akbizmag.com, akbizmag.com

Alaska Coalition on Housing and Homelessness Conference

September

Alaska Oil & Gas Infrastructure & Development Summit June 3-5—Hilton Anchorage, Anchorage: “Capitalize on new opportunities, new developments and new markets by meeting all the key stakeholders in one forum.” Includes pre-summit briefing: Alaska Offshore & Outer Continental Shelf Development: Prospects, Players, Plans and Predictions on June 3. Registration required. infocastinc.com/events/alaska-og13 mail@infocastevents.com

July 28-31—Hotel Captain Cook, Anchorage: The theme of the conference is Industry Meets Government: Impact on Energy Use and Development. This conference will address the issues, challenges, and opportunities of industry-government relations as the stakeholders strive to meet their respective goals for commerce and society. Contact: Roger Marks 907-250-1197 rogmarks@gmail.com usaee.org/USAEE2013/

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August

June

June 3-5—Dena’ina Civic & Convention Center, Anchorage: The program will include technical tracks and a timely panel discussion about Climate Change. Social events include an ice breaker reception, awards luncheon, and conference banquet. Field trips to sites that demonstrate successful applications to cold regions engineering will also be scheduled. asce.org

July 21-24—Hotel Captain Cook, Anchorage: The National Association of State Budget Officers, hosted by the Alaska Office of Management and Budget, meets to hear expert speakers on the economy, state revenues, healthcare reforms and more, as well as to network. Contact: Lauren Cummings 202-624-8434 lcummings@nasbo.org, nasbo.org

October

October 28-30 —Dena’ina Civic & Convention Center, Anchorage: This is the largest conference and trade show for public power utilities in Alaska, held every other year. It provides opportunities to learn about the latest practices, innovations, and technology in the electric utility industry through education sessions, a trade show, and networking. Contact: Gail Patterson 360-816-1450 gail@nwppa.org, nwppa.org

November 2013

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Alaska Miners Association Annual Convention and Trade Show

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TBA—Sheraton Hotel, Anchorage: Includes luncheons, banquets, keynote speakers and short courses. Registration required. alaskaminers.org

Associated General Contractors of Alaska Annual Conference

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November 13-16—Anchorage: AGC of Alaska is a nonprofit construction trade association dedicated to improving the professional standards of the construction industry. agcak.org

Resource Development Council’s Annual Conference: Alaska Resources November 20-21—Save the Date! More information in the fall. akrdc.org

May 2013 | Alaska Business Monthly

insurAnce essentiAls

How Safe is Your Business? Companies using risk management plans to protect bottom lines By Vanessa Orr

or many businesses, risk management is somewhat of an afterthought. Until something bad happens, company owners may not consider the idea of protecting the business from loss to be of primary importance. “Risk management and loss control can have huge implications in protecting a business and its bottom line,” says Christopher S. Pobieglo, president of Business Insurance Associates. “The reality is that a business can get probably away for a few years without risk management controls in place, but sooner or later, something is going to happen. A business owner can do everything right for 20 years, but one uninsured claim can run into the millions and wipe out 20 years of work.” Risk management is generally defined as the process used to decrease exposure to, and provide protection from, risk. While some companies have their own in-house risk managers, others may look outside to hire professionals to help them determine potential losses. “There are many types of risk; anything from transportation and vehicle risks to the loss of key people, owners or customers,” explains Dan Crawford, president of Pippel Insurance Agency. “There is also the potential of risk to real property, including buildings, their contents and data. Business owners need to look at the big picture to determine what could cause physical or financial risk to themselves, their lives and their businesses.”

Creating a Risk Management Program The first step in any risk management 32

Alaska Business Monthly | May 2013

program is to identify the risks that a business faces. “If you don’t identify the risk, you can’t develop strategies to deal with it,” explains Pobieglo. “You don’t need to make judgments at this time about how severe or unlikely the risk is; you want to list anything and everything, no matter how remote.” Businesses should then quantify each risk by its frequency and severity. “How often could this risk happen and what would be the consequences?” asks Pobieglo. “Business owners should assign a value to each risk, and then determine strategies to address these risks.” Strategies can take a number of forms from buying insurance to creating an employee safety plan to carefully scrutinizing contracts before they are signed. “You want to set up ways to control what you can; for example, the owner of a tourism company can minimize his transportation risks by not flying clients in bad weather,” explains Crawford. “After mitigating what risks they can, companies should then decide how to handle the risk that is left, and create a general plan for risk administration in order to monitor the results of the steps that they are taking to minimize loss.”

According to Parker Smith and Feek Principal and Vice President of Risk Management Consulting Lynne Seville, there are numerous ways that companies can mitigate risk. “One option is to transfer risk to others, for example, though a contractual transfer. A building contractor might choose to reduce their risk on a project by pushing it on to a subcontractor or choose to not accept certain risks from the owner. When making a contractual transfer, it’s important to make sure that the person assuming the risk has the resources to pay for the loss, however; the contract might indemnify you, but the indemnitee needs to have the wherewithal to assume the risk and the financial resources to pay for the loss.” Another option available to business owners is to finance risk by setting aside money or buying insurance to deal with potential claims. “While you can elect to transfer a certain amount of risk to insurance, some risks can’t be transferred or are too expensive to transfer because the premium doesn’t justify the nature of the risk,” says Pobieglo. “While some businesses feel that they are covered because they’ve purwww.akbizmag.com

chased insurance, it is really just one of a number of different strategies that they should be using.”

help a business avoid getting sued or at least provide some defense in litigation.” The lack of a risk management program can even preRisk Management vent a company from getting Resources new business, according to One of the reasons that many Pobieglo. “If Contractor A businesses do not have a risk Dan Crawford is bidding for a job against Christopher Lynne Seville management program in place President S. Pobieglo Principal, V.P. of Contractor B, and Contractor is because, frankly, it can seem Pippel Insurance President Risk Management A has lost his workers’ comp Agency Business Insurance overwhelming. Considering carrier because of a poor loss Consulting Associates Parker, Smith every worst-case scenario— history, it can threaten the and Feek and putting strategies in place very viability of his business,” to deal with each—can be time-con- program in place can also be affected he explains. “By going through the suming and confusing. But what does it negatively when trying to buy insur- state-run pool for workers’ comp, Concost a business to ignore this issue? ance. “The market is hardening and tractor A has to pay a surcharge of 25 “This is one of those things that is pricing is increasing in Alaska,” says percent on all premiums over $3,000, hard to quantify; how do we measure Seville. “A company with a track record which directly affects his overhead and what we prevented? How do you mea- of claims will find that it drives their in turn, his competitiveness and his sure what didn’t happen?” she asks. premiums up; even if they’ve managed ability to get new clients.” “A business can throw caution to the risk on a basic level, they will have to There are a number of resources wind, but they will only be lucky for so step up what they’re doing to even get to help business owners learn more long; they will have claims and losses insurance providers to talk to them. about risk management. Certified risk over time,” she adds. “And these claims “Litigation is also a concern for busi- managers have completed additional can range from a few dollars to millions nesses that are not controlling their schooling in this area in order to be of dollars.” exposure to risk,” she adds. “Damage able to provide professional counselIn addition to specific business losses, awards can be devastating to a busi- ing on ways to cut down on loss. Difa company without a risk management ness; a good risk management plan can ferent industry professionals, such

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May 2013 | Alaska Business Monthly

“A business can throw caution to the wind, but they will only be lucky for so long; they will have claims and losses over time. And these claims can range from a few dollars to millions of dollars.” —Lynne Seville Principal and Vice President of Risk Management Consulting, Parker Smith and Feek

as insurance brokers and insurance carriers, have years of experience in claims and loss management, and financial advisers and CPAs can often provide insight into risks that can affect a business’s cash flow and bottom line. “Some industries have specialized risk management certifications, like those in the banking, health care and hospitality industries,” says Seville. “Other businesses can also take advantage of governmental offerings, like counseling provided by the Small Business Administration.” Businesses might also be able to get access to pre-made risk profiles that have been put together by experts in different industries. “Insurance brokers have access to risk management checklists and loss control ideas that have Landye_McKay_AKBusMon_2013_Layout been generated for very specific types of1

businesses as a result of years and years of insurance claims,” Pobieglo explains. “Typically speaking, a business does want to work with someone who has a certain level of expertise in this area; some companies, like ours, specialize in certain niches like construction, architecture and engineering, nonprofits and Native corporations,” he continues. “Check with trade associations or gather word-of-mouth recommendations from within your industry, and don’t be afraid to interview different brokers.” Having the right risk manager in your corner can make a big difference to a business’s success. “One of our clients was having workers’ comp issues that were driving up his costs,” says Crawford. “We sat down with him and talked about being more careful in hir12/20/12 10:52 AM Page 1 ing, having safety meetings and mak-

ing sure to address the different issues that the company was having during these meetings. Once he started doing this, the client was able to bring his workers’ comp pricing back down to where it should be for a savings of more than 40 percent. “Even small changes can make a difference—incidental things like putting rubber mats down where restaurant workers do food prep can prevent back issues, which cuts down on workers’ comp claims,” he adds. While some companies may avoid looking at the risks that their businesses face, that type of mindset may be the biggest risk of all. “Risk management is really the art of looking at the big picture to see what you can do to minimize any type of loss—it’s something that most people do every day,” Crawford surmises. “Things like checking the furnace or making sure the stove burners are off to prevent a possible fire— that’s risk management.”  Vanessa Orr is the former editor of the Capital City Weekly in Juneau.

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energY

Much Ado about Watana Dam

Photo courtesy of Alaska Energy Authority

Field work on the Susitna-Watana Hydroelectric Project began last year with 12 early studies.

Hydroelectric project generates a growing workforce

massive dam proposed for the Susitna River is still a decade and many layers of government permits away from producing power for the Railbelt. But already the state’s Susitna-Watana Hydroelectric Project is cranking out jobs. As of March, there were 385 people contracted to work on Susitna-Watana Hydro, according to Emily Ford, spokeswoman for the Alaska Energy Authority. That doesn’t include local officials, Alaska Native Corporation staff, state agency workers and federal government employees devoting time to the project. Alaskans hold 50 to 60 percent of those jobs, Ford says. The Energy Authority is the state public corporation tasked by the Legislature with getting a dam built on the Susitna. The Legislature approved $75 million for Susitna-Watana in 2010. The Authority is asking for another $95 million this year. Project managers asked vendors to track Alaska-based hiring and spending. “We know that this issue of workforce development, whether or not

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By Zaz Hollander Alaska has the workforce to make this happen, are discussions that are happening, especially with the Legislature when you’re talking about a state-funded project,” Ford says. The Susitna-Watana dam would rise 730 feet about 90 miles upriver from Talkeetna, creating a broad, 42-milelong reservoir up the remote Susitna Valley, a swath of wildlife-rich terrain popular for subsistence and sport hunting and fishing. The reservoir would fill with rainfall and snow melt during the spring and fall. Plans call for three turbines to generate electricity to meet Railbelt demand. The reservoir could drop by as much as 200 feet at peak demand times. As Alaskans weigh the state’s uncertain energy future, backers say the Susitna-Watana project would supply about half the electrical power needs of the Railbelt’s residents, three-quarters of the state’s population. The whole thing is currently expected to cost nearly $5.2 billion with an as-yet unknown share from the state. The project price tag is a moving target. That $5.2 billion estimate is accurate

within 25 percent, according to an AEA report to the Legislature last year. The earliest this hydroelectric project could start making power is 2024. Until then, project managers say, more jobs are in the works.

Moving a River To build the dam the state needs a license from the Federal Energy Regulatory Commission, a six-year process. The Authority also needs a Clean Water Act permit from the U.S. Army Corps of Engineers for project construction. This year, plans call for more than 58 environmental studies in addition to 20 studies conducted last year. Some studies update work done in the 1980s, when an earlier, two-dam project was ultimately mothballed. The Authority plans to submit a license application in 2015 and hopes to obtain a FERC license and USACE permit by 2017. That’s when construction would start. If that timeline stays on track, the dam at Watana could come on line in 2024. Project engineers plan to use rollercompacted concrete to dam the steep May 2013 | Alaska Business Monthly

Photo courtesy of Alaska Energy Authority

Two workers last summer doing Susitna-Watana ﬁ eld studies.

Susitna canyon. Concrete would be applied in thin layers, one over the other, like a cake. The dam would be built into bedrock at river bottom, then anchored into the canyon walls. Previously constructed roller-compacted concrete dams have used either conveyor belts or trucks to move the

concrete layers. Typically, the top of the dam is wide enough for two “lanes” of traffic with enough room on the sides so there isn’t a need for scaffolding or any other structures. Along with the dam and powerhouse, the project would include an access road, transmission line, airstrip

and temporary work camp to house as many as 1,000 workers. The entire river would need to be diverted to give dam construction crews access to bedrock. To accomplish that, the project calls for a 35-foot diversion tunnel to be blasted into the north wall of the Susitna canyon. Coffer dams on either side of the construction site would reroute the river’s water through the tunnel. Once the dam is finished, the river’s original course would be restored. Unlike the big dams of the desert Southwest, tourists wouldn’t be allowed to stroll or drive the top of this massive concrete wall. The Susitna-Watana dam would be considered critical energy infrastructure and off-limits to the public.

Permits and Pushback The dam represents the state’s preferred route to meet a state goal to use alternative or renewable energy to generate half of statewide electricity needs by 2025. Project proponents say it’s the only way. Others say developing a greater number of smaller renewable and alternative energy projects could also

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meet that goal. Twenty-five percent of statewide electricity was already being generated by alternative and renewable means in 2010 when the Legislature passed the 50 percent goal. The project also raises concerns about what critics call the rushed pace of studies weighing the dam’s effect on the Susitna River’s world-class salmon stocks. Recently released data from 2012 indicates that only 10 chinook salmon migrated through the raging whitewater of Devils Canyon, according to an AEA report. However, some state and federal scientists have said more research is needed on the dam’s downriver effects on temperature, water clarity and winter ice, which could have still far-reaching consequences for kings as well as other salmon species. It’s also unclear which agency, if any, will be given authority to address the effect climate change could have on the project’s glacier-fed water supply. Several Native corporations own large parcels around the project area, including the spot where the dam will be built. Some regional Native leaders last year said the state was slow in reaching out to address access issues. State project managers are involved in ongoing talks with several village and Native corporations on that issue. The Authority has developed a new working group to facilitate those talks, Ford says. The state is also working through the permitting process to ensure land access during construction. “The information we’re gathering is extremely important to Alaska Native Corporations as well,” she says. “We’re doing a significant amount of work in cultural resources and subsistence. Working with communities and elders will be a significant part of our work.”

Changing Workforce Different phases of the project will require contractors with different kinds of expertise. Right now, the Authority is fi netuning which environmental studies to do and how to conduct them this summer. Federal licensing officials in January approved 44 of the 58 studies proposed by the Authority. FERC asked the state for more detail on the remaining 14, www.akbizmag.com

mostly focused on aquatic resources and fisheries. A determination on those was scheduled for April. Once the study plan gains approval, project focus will shift to the summer field work season.

AEA is using five prime contractors The Authority’s engineering contractor is MWH Americas Inc., with offices in Alaska. MWH is a global company with international experience, including the Panama Canal and several large dams. That contract also includes eight subcontractors. MWH President and CEO Alan J. Krause is a native Alaskan, having been born in Denali National Park and raised in Alaska. Four companies hold environmental services contracts: HDR Alaska, with five subcontractors; DOWL HKM Alaska, with seven subcontractors; URS Alaska, with 17 subcontractors; and ABR Inc., with eight subcontractors. The numerous subs handle everything from helicopter pilots to ferry researchers to the remote dam site to lodging for them, Ford says. About 180 people are expected to be working in the field this summer, necessitating field camps and field camp services. State managers are in the midst of project licensing and design, Ford wrote in an email, so the state is “capitalizing on the hydropower licensing expertise” found in the Pacific Northwest, home to many of the country’s big hydro projects. A board of international consultants is advising the Authority on seismic, climate, engineering and other aspects of design. The start of dam construction, however, will make use of some of Alaska’s workforce strengths: road building, transmission line construction and camp services. CH2M HILL has expressed interest, Ford says—and Native and village corporations would also be a good fit. “As we move into construction and field work,” Ford says, “there’s a trained workforce here in Alaska that we will be utilizing.”  Zaz Hollander is a journalist living in Palmer. May 2013 | Alaska Business Monthly

energY

Photo courtesy of McMillen LLC

The Liebherr LR 1600/2 with a 660-ton capacity and 360 feet of boom is being used on the project. It is the largest construction crane in North America and belongs to Alaska Crane Ltd. based in Anchorage. The giant crane is being used to ferry people and construction materials to the far side of Sitka Electric’s Blue Lake Dam, since no roads can be built in that section of U.S. Forest Service land in the Tongass National Forest on Baranof Island.

Blue Lake Dam Expansion Project Sitka hopes to keep up with electrical demand By Will Swagel

hen Sitka Electric Utility Director Chris Brewton first got to town in 2008, he was shocked to see “piles of plug-in electric heaters” being unloaded outside a local hardware store. In Sitka to head the municipally-owned electric utility, Brewton was interested and asked the guys doing the unloading what was going on. He was told that scores of Sitkans were coming in and scooping up the electric heaters for their homes. So Brewton checked the books and saw that the demand for electricity had increased along with the price of heating fuel, which had more than quadrupled—rising from 71 cents a gallon

Alaska Business Monthly | May 2013

in 2002 to $3.24 per gallon in 2008. (At this writing, in April, No. 2 heating fuel is selling for $3.96 to $4.18/gal. in Sitka.) During that period, Sitka also experienced a significant increase in seafood processing capacity, spurring another large increase in electrical demand. Home builders were using electric heat in new construction. At $2.85 per gallon, officials estimated that electric heating had become cheaper than oil. Sitka is blessed with excellent hydropower resources. For nearly 20 years, plenty of electricity was supplied by two dams—one at Blue Lake (built in the 1950s) and one at Green Lake (built in the 1980s). But in the last five years or

so, a combination of the increased demand and low rainfall has led to more and more reliance on expensive diesel generators to fill the gap.

Solving the Shortage Construction on the solution to Sitka’s power “shortage” began late last year. Sitka plans to raise the 210-foot-high Blue Lake Dam. Luckily, the dam was originally built to be strong enough so that it could be raised in the future. “Somebody had some foresight,” says Richard Linden of McMillan LLC, the construction manager on the job, who has more than 30 years experience building dams. “Normally, you would www.akbizmag.com

Keep up with construction updates on facebook.com/bluelakeexpansion not be able to raise a dam without going down to the bottom and reinforcing it from the bottom up. Not to say it hasn’t been done before, but it’s unusual.” The Blue Lake Expansion project is pegged at $145 million, to be paid with a combination of state grants and the sale of municipal utility bonds. The plan is to raise the concrete arch dam by 83 feet to an elevation of 425 feet, in order to collect that much more water, bring the flow down the mountainside to a newly built powerhouse, and then use the increased water flow to run up to three generators. The project is expected to generate an average of 94,000 megawatt hours per year, raising the city’s generating capacity to 154,000 megawatt hours per year—a 54 percent increase for Blue Lake and a 27 percent increase city-wide.

Multi-Year Project Barnard Construction Company Inc. is the general contractor. “Over the next two years,” they state, “our team will be placing roughly 12,000 cubic yards of concrete to raise the dam, constructing a new 15 megawatt hydroelectric powerhouse that will be equipped with three 5.3 megawatt horizontal Francis turbine generators, and constructing 900 linear feet of new intake tunnel as well as a new concrete intake structure. The project also entails constructing a 360-vertical-foot, 10-footdiameter surge shaft and 500 linear feet of new 8-foot-diameter steel penstock.” Workers for subcontractor Blue Lake Tunnelers this spring were boring and blasting more than a mile of rock-lined intake tunnels through the grayish sandstone known as greywacke. Being used on the project is the largest construction crane in North America, a 660-ton behemoth with a 360-foot-long reach. “We’re building in (USDA) Forest Service land, so we can’t build a road on the other side of the dam,” Linden says. “That’s why the crane is so long, so we can get people and construction material to the other side.” The building of the dam has given a boost to the city economy, which is struggling with state and federal cutbacks and a decrease in cruise ship passengers. Heavy trucks hauling equipment and www.akbizmag.com

materials from the barge landing to the project staging area have been rumbling through downtown Sitka for months. Most of the short-term rentals are full. Sitkans may notice something during 61 days in the summer of 2014 when the switch takes place from the old power system to the new, and Blue Lake power will not be available. During that period, Sitka will have to rely on Green Lake and the backup diesel generators for electricity. But Blue Lake also supplies the city

with drinking water and that, too, will be shut off for 61 days. During those two months, Sitka will get its water from Indian River, which it did before the Blue Lake dam was built. The city is returning temporarily to a water source of the past, in order to provide enough power for Sitka’s future.  Alaskan author Will Swagel writes from Sitka.

Cut along dotted line

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May 2013 | Alaska Business Monthly

trAnsPortAtion

The dining room on the M/V Columbia boasts classier fare, elegance and a more panoramic view than its cafeteria.

Alaska Marine Highway System Celebrates 50 Years Vital transportation link also serves as visitor attraction By Dimitra Lavrakas

his year, for half of a century, the Alaska Marine Highway has been the backbone of transportation for 33 mostly land-locked communities in Alaska, plus several others on the road system. A means of personal transportation, a safe way to transport students to and from tournaments and competitions, a backup to deliver the U.S. mail when planes don’t fly, a dependable freight-hauler and a uniquely Alaska way to see the state, the

Alaska Business Monthly | May 2013

ferry system’s blue boats are a welcome sight in the cities and villages they serve. Eleven vessels of varying size have runs that cover more than 3,500 miles of the state’s Pacific Coast from Southcentral in Whittier; down the Aleutian chain to Unalaska; or north from to Bellingham, Wash., or Prince Rupert, British Columbia, Canada, sailing the original Inside Passage—the one cruise ships can’t use because of their size and the narrowness of several passages.

It’s a real road and was recognized as such in 2002 when it was named a National Scenic Byway, and in 2005 as an All-American Road by the Federal Highway Administration.

Just Two Guys and a Boat Like most big ideas in Alaska, this one started out small with two guys looking at a piece of equipment and scratching their heads. Seeing a need for water transport in the upper Lynn Canal www.akbizmag.com

north of Juneau, and with a road connecting Haines to the Alaska Highway a distant dream, in 1948, Haines residents Steve Homer and Ray Gelotte took a Landing Craft Tank-Mark VI landing craft like the ones used in World War II and converted it for ferry use between Juneau, Haines and Skagway. Such landing crafts had been towed across the Pacific from Pearl Harbor, weathering a typhoon’s 50-foot swells and hurricane force winds but needing to have bolts and welds redone before sailing for their final destination.

Passage from Skagway to Bellingham, more than a three-day ride, or the trip from Kodiak to Unalaska, a 47-hour ride, there are a lot of activities. In the summer, the AMHS hosts onboard talks by U.S. Forest Service and U.S. Fish and Wildlife interpreters. On most ferries there are family friendly films in one lounge, a forward lounge, a computer room, a video game room, a playroom for children and of course a bar—some complete with a piano and dance floor. All ferries have walls covered with work created by Alaskan artists: Tsim-

sian masks, starfish photographs, ship paintings are a few examples. Dining facilities on the fast ferries M/V Chenega and M/V Fairweather are limited to snack bars, but on most there is a full-service cafeteria. The M/V Columbia, one of the fanciest, has a white linen-tabled dining room in the bow with a 180-degree view that at times makes a person incapable of eating, it’s so awesome—particularly going through the Wrangell or Tongass narrows where the passage is so tight it feels as if one could stretch their arms

Sounded Perfect for Lynn Canal Conditions They called it the M/V Chilkoot, beginning a long history of naming ferries after Alaska’s natural wonders. These days they are named after glaciers, and with thousands of those, they’ll never run out of names. In 1951, the Alaska Territorial government bought the Haines business, and after gaining statehood in 1959, it was renamed the Alaska Marine Highway System in 1963. The Haines route was extended to Prince Rupert—still a port on Southeast Alaska’s Inside Passage Route. In the years following, one route was extended farther south to Seattle, but later moved to Bellingham. Visitors Love the Experience Take a look at any of the online travel sites like TripAdvisor or Yelp, and the vast majority of travelers using the ferry system rave about their experience on the ferries. Positive comments about the helpfulness and hospitality of AMHS crews, the food, accommodations and the scenery and wildlife viewing reflect their experience. To see the real Alaska, away from commercialization and crowds, the ferries are the way to go—and it’s possible to meet real Alaskans doing real Alaska activities. “AMHS provides a unique travel option for visitors,” says Danielle Adkins, AMHS marketing manager. “Visitors interested in driving to the state can take vehicles onboard, access remote communities, or make the experience of traveling an integral part of their Alaska vacation. Ferries are fantastic sightseeing vehicles.” While it may seem kind of crazy to be cooped up with complete strangers for days on some runs like the Inside www.akbizmag.com

Northland Services: Consider it done. Since 1977, Northland has provided reliable freight transportation between Seattle, Alaska and Hawaii. With more than 140 sailings annually, Northland delivers cargo to more destinations in the 49th and 50th states than any other marine carrier. Heavy equipment, construction materials, seafood or supplies to remote villages; you name it, Northland delivers. So next time, ship with confidence. Ship with Northland.

May 2013 | Alaska Business Monthly

Art by Alaskan artists grace the halls of all Alaska Marine Highway System vessels.

out and reach both hands deep into the lush rainforest. In 1992, ferry use in Skagway was at an all-time high of 37,216 passengers from May to September, according to statistics from the Skagway Convention and Visitors Bureau. Last summer’s statistic is 17,410 passengers. Usage may have ebbed and flowed over the years, but come the beginning and end of the summer season, the boats and car decks are filled to capacity with out-of-state seasonal workers. Yearly events that draw more travelers—like the Klondike International Road Relay from Skagway to Whitehorse, Yukon Territory, Canada, or a special meeting like the recent Salvation Army Convention in Petersburg that required an extra stop in Kake so people could attend—are accommodated by AMHS. And there’s Celebration in Juneau, a biennial festival of Tlingit, Haida and Tsimshian tribal members organized every two years by Sealaska Heritage Institute that practically empties Southeast villages along the ferry route. Neighbors in the Yukon with their newfound exchange rate wealth have begun to take the ferry in greater numbers from Skagway or Haines to Juneau to shop at Fred Myer, Costco, Home Depot or other big box stores. The ferry system reaches out to as many potential users as possible. “A large portion of our marketing budget is focused on raising awareness locally—providing residents with reminders about reasons to ride the ferry, promot42

Alaska Business Monthly | May 2013

ing local events and activities,” Adkins says. “We also market to visitors on a nationwide basis, promoting the system as a unique travel experience and a way that travelers can stop and stay in our communities and experience our culture.” Culture and wildlife. For birders, Alaska offers a mind-blowing assortment of bird sightings, especially in the spring and fall when the major migrations occur. The latest ad encourages riders to travel to Wrangell for its Stikine River Birding Festival, Cordova for the annual Copper River Delta Shorebird Festival, to Homer for the Kachemak Bay Shorebird Festival, or to Yakutat for the Yakutat Tern Festival. These can be experienced by booking a trip on one of the affectionately called “Big Blue Canoes” and with Alaska Airlines kicking in discounted flights to boot.

More than Just Sightseeing Ships in the Alaska Marine Highway fleet routinely assist in search and rescues or report ships in distress, according to the U.S. Coast Guard. In 2010, the Alaska Marine Highway System received a U.S. Coast Guard Partner in Search and Rescue award during a ceremony in Juneau for its long history of assistance to mariners. In 2006, the M/V Malaspina launched a rescue boat and stood by four fishermen on the stranded F/V Alaska Queen near Prince Rupert while on a run from Ketchikan to Bellingham. Again that year, the crew of the M/V Taku rescued the crew off a life raft from

the fishing tender F/V Stella that had grounded on Gull Island in Lynn Canal. In 2009, the crew and command of the Taku were awarded the Honored Seafarer Award for the rescue of two men from the fishing vessel Alaskan Pride as it burned in Chatham Strait Oct. 13, 2009. During 2009, AMHS crews and vessels joined hundreds of other nations in providing a safety network to assist search and rescue coordinators in responding to emergencies at sea: The Automated Mutual-Assistance Vessel Rescue System, a worldwide voluntary reporting system used by search and rescue authorities, sponsored by the U.S. Coast Guard. Alaska ferries can be tracked online at dot.state.ak.us/amhs/map.shtml. The newest mainliner, M/V Kennicott, the first large ocean-going passenger vessel designed and built in the U.S. since 1952, is not only a ferry but also an oil-spill response vessel. With a satellite communication system and a helipad, it is capable of responding to medical or oil industry disasters. On the cross gulf run it stops in Bellingham, Ketchikan, Juneau, Yakutat, Whittier, Chenega Bay, Kodiak and Homer. It has 85 staterooms that contain 266 berths and 24 roomettes—essentially small, less-costly private rooms for walk-on passengers. Furthermore, the ferry system provides a number of jobs year-round and during the summer tourist season. “This varies seasonally,” Adkins says, “but at the peak of the summer season it’s right around 1,100.”

It’s a Celebration Contests and community events mark the Alaska Marine Highway System’s 50th anniversary. The M/V Malaspina’s Golden Voyage, May 1-5, was inspired by the ship’s maiden trip and begins the AMHS 50year anniversary celebrations. Stops will be in Ketchikan, Wrangell, Petersburg, Juneau, Haines and Skagway with special side trips in Juneau to Tracy Arm Fjord and from Ketchikan around Revillagigedo Island through Misty Fjords National Monument. During the cruise to Tracy Arm, the New Archangel Dancers and the Naa Kahidi Dancers of Sitka will perform the White Sail story, which tells the tale of one of the first meetings between the Russians and Tlingit in Alaska. www.akbizmag.com

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In Unalalaska on the Aleutian Chain and the southernmost terminus of the ferry system, built in 1896 the Russian Orthodox Holy Ascension Church of Our Lord Cathedral is well known. There has been a Russian church there since 1808.

The ship will be open to the public in each town for community events that include activities for children and recognition of a town’s unique heritage, like Petersburg’s Norwegian influence, or Alaska Native culture, where in Wrangell there will be a rededication of the Tribal House on Chief Shakes Island.

Embroidery Screen Printing Graphic Design Promotional Items -since 1981-

stellar-designs.com

Win a Golden Ticket Pick up an entry postcard at ferry terminals or community events, or go online to the website at dot.state.ak.us/amhs to register to win a Golden Ticket worth $500 in passenger travel for one or more passengers on a one-way or round-trip voyage on a single itinerary. The Golden Ticket is only valid for passenger travel and doesn’t include vehicles, cabins, pets, bicycles, kayaks, food, beverages, gift shop items, or any other service that AMHS offers onboard, according to the contest rules. Contestants may enter once a month through the end of the year. Up to 150 winners will be chosen randomly in drawings as part of the 50year anniversary celebration.  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska. www.akbizmag.com

May 2013 | Alaska Business Monthly

heAlth & medicine

Photo courtesy of Northwest Strategies

Innovations in Healthcare Delivery Improving public health with advertising By Vanessa Orr

hen it comes to public health, changing people’s opinions—and behaviors—isn’t always easy to do. How do you convince someone to quit smoking or to never start? How do you provide them with the knowledge and the means to live a healthier life? The State of Alaska Tobacco Prevention and Control Program has found a way. Over the past 10 years, cigarette sales have declined by more than 50 percent; adult smoking prevalence has decreased by 25 percent and high school students’ smoking prevalence has dropped by more than 60 percent over the same time period. As a result, Alaska has saved almost $400 million in health care costs and prevented 8,900 premature deaths. But the battle is not yet over. Working in conjunction with Anchoragebased advertising agency Northwest Strategies, the TPC is continuing to reach out to high-risk groups while countering the effects of pro-tobacco advertising.

The Problem Tobacco use costs Alaska $579 million annually in direct medical costs and lost productivity due to tobacco-related deaths. Each year, 31 million packs of cigarettes are sold in the state; for every $9 pack of cigarettes purchased, it costs 44

Alaska Business Monthly | May 2013

Alaskans an additional $19 per pack in costs associated with smoking. “The Tobacco Prevention and Control Program has done a lot of incredible work over the last 10 years in combating smoking prevalence in Alaska adults, but we are still working to move the needle in other groups,” explains Tiffany Tutiakoff, president, Northwest Strategies. “There are several disparate populations that we’re addressing that range across a variety of tobacco use. This includes rural and Alaska Natives who have a high prevalence of chewing tobacco use and youth ages 18 to 25, who have flat-lined in prevalence. There is concern that those numbers are not going down.” The TPC’s comprehensive tobacco prevention and control program, which is based on best practices and strategies identified by the Centers for Disease Control, is based on four goals: to prevent youth from starting tobacco use; to promote cessation of tobacco use among youth and adults; to protect the public from exposure to secondhand smoke; and to identify and eliminate tobacco-related disparities and achieve health equity. One of the ways in which the TPC does this is by creating marketing campaigns to educate the public and to counter the epic amounts of money being spent by the tobacco industry pushing its products.

A young man contemplates a call to Alaska’s Tobacco Quit Line. Quit Line enrollees are 39 percent more likely to quit for good than those who try cold turkey.

“Tobacco companies spend more than $1 million an hour marketing their products in the U.S., which is a crazy amount of money,” explains Alexandria Hicks, program manager, State of Alaska Tobacco Prevention and Control Program. “We have to counter this investment. A health communications/intervention campaign is one of the most important components of our program in terms of sustainability because it has been shown that messages of longer duration and higher intensity are associated with greater declines in smoking rates.”

Delivering the Message Fortunately for Alaskans, the state has chosen to fund the TPC at the level recommended by the CDC. While there has been a trend in recent years to cut funding from state tobacco programs nationwide, the TPC spends approximately $800,000 on paid media annually with approximately 35 percent of that money going toward specific cessation or stopsmoking health communications. www.akbizmag.com

“We’ve been working with the TPC for three-and-a-half years, and for the first two years, our message focused on cessation and stimulating quit attempts,” says Tutiakoff. “Our goal was to make an emotional connection with tobacco users, and then provide resources, which is why TV spots were tagged with Alaska’s Tobacco Quit Line. In 2012, the CDC began funding a campaign called, ‘Tips from a Former Smoker,’ which provided the state with an additional layer of communication.” “Up until recently we did not focus cessation media communications efforts on the quit line; however, we aggressively promoted its existence and availability to Alaskans, statewide. Our quit line is considered the platinum standard of state quit lines,” adds Hicks. “Currently we’re investing in promotion of quit line services—showing how it works for the caller and the incredible host of benefits that it offers.” Through a statewide multimedia campaign, which includes print, radio, TV and online components, Northwest Strategies and the TPC are informing tobacco users about the nicotine replacement therapy

www.akbizmag.com

and counseling support provided by the quit line. “We’ve created four unique spots that will run this year: one features a woman dealing with relapse, which is quite common—it takes an average of 11 attempts before a person successfully quits,” says Tutiakoff. “The second spot highlights real ‘quit coaches’ as a way to establish trust, and to encourage smokers to pick up the phone and call.” Another spot features a young Alaska Native male going through the quit line process, and the last profiles a couple who quit smoking together. “We used real people who actually called the quit line; they’re not actors,” adds Tutiakoff. And the message is getting through: The campaign started on New Year’s Day and January 2013 reports show a 55 percent increase in call volume over the same time frame last year, with enrollees citing the TV commercial as the No. 1 reason why they called.

Stretching Ad Dollars By coordinating the campaign with the spots being run by the CDC, the state is

making its money go further. “The CDC sets up their plans and we work around those plans,” explains Tutiakoff. “We stretch our dollars by piggybacking on what they’re doing. Our quit line campaign is primarily a cable-dominant buy, but in places where there is no TV coverage or radio stations, we fill in the holes with other components.” Northwest Strategies and the TPC review campaigns on a weekly, monthly

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May 2013 | Alaska Business Monthly

Alaska WWAMI

School of Medical Education Excellence in medical education right here in Alaska Through the Alaska WWAMI School of Medical Education, students interested in a career in medicine have the opportunity to complete three of their four years of medical school right here in Alaska. WWAMI is a collaborative medical school among universities in Washington, Wyoming, Alaska, Montana and Idaho and the top ranked University of Washington School of Medicine. Classes are small so students receive individualized attention and access to faculty, research opportunities, local physicians and Alaska’s health care community.

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Alaska Business Monthly | May 2013

and quarterly basis and also invest in both qualitative and quantitative research and testing, such as focus groups and surveys, at the beginning and end of each campaign. “We also perform a recall survey to ensure campaigns are working and that we are getting a good return on our investment,” says Hicks. Because what works with different audiences can change over time, Northwest Strategies and the TPC continually revisit messaging strategies. “People were not responding to scare tactics before, but now we’re starting to see these tactics working in the CDC’s ‘Tips from a Former Smoker’ campaign that shows a man with his legs amputated and a woman with a tracheotomy,” says Tutiakoff. “We found that our ‘Dear Me’ campaign, in which smokers shared a letter to themselves about smoking, really resonated with Alaskans,” she adds. “Smokers identified with those featured because they are facing the same battle with addiction; in fact, they often used the tag line when calling the quit line, which was ‘No one can make me quit but me.’ It was a highly effective campaign.” Northwest Strategies also came up with the “Great for Business” campaign as a way to protect the public from exposure to secondhand smoke. TV spots, which ran for 18 months, featured testimonials from business owners about how their businesses had gotten better since they went smoke-free. “Typically, when smoke-free policies come to pass, the hospitality industry is the sticking point,” says Tutiakoff. “But bars and restaurants are workplaces, too, where patrons and servers are breathing second-hand smoke.” To this end, TV spots featured well-known business owners, such as Mike Gordon of Chilkoot Charlie’s and Cheryl Brendell of The Food Factory, talking about the benefits of running a smoke-free business, including decreased insurance costs, less cleaning and maintenance costs and happier employees. Northwest Strategies’ current smokefree workplace policy media campaign is called “The Real Cost,” geared to urban residents ages 25 to 54 who typically do not smoke and who are not affected by secondhand smoke. While their health may not be compromised, www.akbizmag.com

A young man calls Alaska’s Tobacco Quit Line, increasing his likelihood to quit for good. Photo courtesy of Northwest Strategies

the multimedia campaign points out that their wallets are—to the tune of $579 million every year in direct medical expenditures and lost productivity due to tobacco-related deaths.

Next Up While Alaska is not yet 100 percent tobacco-free, huge strides have been made in communicating the health benefits of quitting, or never starting, smoking. Northwest Strategies has used its experiences in social marketing to create other campaigns focused on behavior change for clients as diverse as the Alaska Network on Domestic Violence and Sexual Assault; the American Lung Association Alaska; the Municipality of Anchorage’s Air Quality Public Awareness Program, and the State of Alaska’s Department of Environmental Conservation Air Quality Program. The agency is currently using this success as a springboard to help the State of Alaska Obesity Prevention and Control Program with formative research and direction to support their launch of a new public health campaign addressing childhood obesity. “We’re presently working on a research and communications plan that involves message testing and analysis of similar campaigns in an effort to identify what is working, so it is still in the early stages,” says Tutiakoff. “But soon I expect that we’ll see a national trend of different obesity initiatives looking at what tobacco programs have done in the area of public health messaging and modeling their strategies after that success.”  Vanessa Orr is the former editor of the Capital City Weekly in Juneau. www.akbizmag.com

From the beginning, our goal was that people wouldn’t have to travel to the Lower 48 to receive the best possible care and treatment. That’s why we built the J. Michael Carroll Cancer Center. Now, every year, 1,000 of your neighbors – like Becky – can be treated and recover with the support of friends and family. Which, we believe, is critical to the healing process.

community-owned

fmhdc.com May 2013 | Alaska Business Monthly

telecom & technologY

Devices for Doing Business Mobilizing ofﬁces with app savvy technology By Mari Gallion

Alaska Business Monthly | May 2013

hether you’re using BlackBerry, Apple or Android technology, or a combination of the three, devices for doing business have scaled down from the bulky power consuming desktop computers. Mobile is mainstream. Various mobile devices are being embraced by business people across all industries. First the BlackBerry enabled people to go mobile with email. It was the beginning of a revolution in the way business was done. People no longer were confined to their desks in order to conduct business or communicate with associates, colleagues and clients. Then came the iPhone, going beyond email and introducing apps. And then the Android, combining and some say, stealing, BlackBerry and iPhone technology. April 3, 2010, the iPad was introduced: a larger version of the iPhone (without calling capabilities), and better suited to conduct business because of its size. This year, the iPad Mini was introduced. All these devices need apps to operate, and apps have proliferated the market. Mobile app downloads haven’t slowed much since the flurry of downloads we saw at the close of 2012. In fact, the latest data from Canalys shows that app downloads climbed 11 percent in Q1 of 2013 (versus Q4 of 2012). According to published reports April 8, the world’s four leading app stores generated $2.2 billion in total revenue from 13.4 billion downloads in the first quarter of 2013,” according to Mobile Marketing Watch.

Mobile Devices According to Greg Schlabaugh, GCI commercial applications consultant, their relatively low cost combined with their mobility has made them the preferred option for many businesses. “In some cases, tablets and smartphones have replaced the PC as the primary tool for conducting business.” “Mobile devices have completely changed the business environment, and smart companies are evolving to take full advantage of the level playing field they provide,” Schlaubaugh says. “A small tourism company can take credit card payments via a smartphone, a sales rep can present product information to their customer on a tablet, a mechanic can get access to repair guide while in the field, and work groups can collaborate on projects no matter where they are.” www.akbizmag.com

Cody Keim, an agent with Re/Max Dynamic Properties, offers several examples of how his devices enable him to do business efficiently. “Mobile devices are invaluable to me as a real estate professional,” he says. “The 4G equipped Apple iPad allows me to show properties without a shred of paper. I have access to associated listing documents and MLS property history data on site and on demand, all the time. The mapping functions are fantastic; directing me to my next showing quickly and easily, allowing me to keep my focus where it belongs: on my clients.” “Apple’s iPhone 5 allows me to stay in touch with my clients wherever I may be and offers an incredibly high degree of functionality,” Keim adds. “Google’s calendar and e-mail apps make email and scheduling ‘on the go’ a breeze. The panoramic photo option on the iPhone’s camera allows me to take a picture of an entire room, easily messaging the image to a waiting client. Notes, voice memos and video functionality come in handy as well as I accomplish a wide range of tasks daily.”

sional was certain to have one desktop computer at home (and probably a desk specially designed to fit all its components) and one at work. At this time, it seems, even the laptop is certain to see its denouement within the next five years. It seems that the latest and greatest device is what’s currently being called a phablet (of which iPad Mini is one), or a miniature tablet, the nickname being a portmanteau of the words phone and tablet. Viewed by some as the best of both worlds and others as “just a phad,” many phablets, measuring approximately 7 by 5 inches, are small enough to carry in a purse or pocket and are easier to read than a smartphone. Like a tablet, they can be used as a phone with the purchase of a data plan, but the main shortcoming of a phablet is that the keyboard remains a bit cramped.

Re/Max Dynamic Properties recently got what Keim calls a “much needed upgrade” with their implementation of a lock box access system called Sentrilock, which generates lock box codes to allow or disallow access to a client’s house. “Sentrilock offers a high degree of remote functionality by utilizing the cellular network,” Keim says. “I can connect to a lockbox from my mobile phone or desktop PC, granting access to a Realtor, contractor or appraiser on the spot. I can use the ‘do not disturb’ function to avoid unwanted access and showings after a certain hour or view the lockbox’s access log allowing me to provide feedback to my seller almost immediately after a showing.”

Benefits of Modern Devices Among the benefits of today’s devices are reduced energy use. Compared to the 300 to 400 watt power supply for a desktop computer, mobile devices use very little power. The most obvious benefit, of course, is their relative portability. Not so long ago, the average profes-

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May 2013 | Alaska Business Monthly

to their calendar and getting a reminder—or two reminders—at selected times before the event occurs. According to Eric Lazo, vice president of marketing and product management at Alaska Communications, more than 95 percent of small businesses use mobility applications and technology to conduct their business, and what a businessperson can do on the go is growing exponentially. “It’s not just phone calls, email or web anymore,” Lazo says. “It’s the ability to set up a truly mobile office, or equip mobile workers with all of the capabilities and tools of their home office while in the field.” No matter what line of business you are in, the following types of apps can prove invaluable to you.

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Accept Credit Cards There are several apps for every device that can enable you to take credit cards from your tablet or smartphone, so long as you are connected to a 4G network or Wi-Fi. This can prove invaluable if you have any sort of business that involves traveling from site to site, or a nonproﬁt corporation where you need to get that donation immediately.

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Scan Documents There are also many apps that now allow you to scan documents from your phone or tablet and save them to PDF or JPG ﬁles. When you search for an appropriate app, make sure to search for “scan document,” otherwise you may purchase an app that is meant to scan QR codes for items at stores to ﬁnd where else they are sold and compare prices. Of course, depending on your business, that may be useful as well.

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Track Time & Expenses By performing a simple search, one can find a variety of apps that track time, expenses and mileage, and generate reports. They all differ in features, and it may take some experimentation to decide which is best for your business. Although there are free options, the more tried and true of these apps, some costing up to $10, are a bit more expensive than others. However, most businesspeople agree that $10 s a small price to pay for that convenience.

Alaska Business Monthly | May 2013

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Calculate Mortgage Payments Although the more proﬁcient loan ofﬁcers and real estate agents may still prefer to prequalify clients or calculate mortgage payments by using the do-anything-if-you-know-the-formula HP calculator, others are glad that in this fast-paced world, they can simply use an app to get the same results. After all, not everybody wants to dedicate themselves to the art of dressage when you can get the same results from a quick pony ride.

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Control your Desktop from your Device Remote control has a new modern meaning: Businesspeople can now connect to their Mac or PC—even their desk phones—from their devices. With these apps, you need not worry about what you may have left on your computer at home or at the ofﬁce. Happily, the days of forgetting to load something on your jump drive before getting to the ofﬁce or meeting a client may be a thing of the past.

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Making Travel Easy No more printing up each and every confirmation for each leg of your flights on various airlines, hotel, car rental (which company did I choose this time?), and all those pesky onboard, online maps—let alone trying to drive and read them at the same time. Now you can find an app that makes travel seamless, generating one itinerary for your entire trip. And rather than struggling with maps or sheets of paper with directions while you’re driving, you can opt for a pleasant-sounding guide telling you exactly where to turn and when, and even how to get back on course if you happen to make a wrong turn. This can be extremely beneficial to anyone who has ever missed the third exit on a six-exit roundabout, or who relies on arm length and reading glasses in order to read.

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Password Storage So, you’re expected to have a different strong password of at least eight numbers with at least one capital letter and two numbers for every secure site you visit—and not write them down? Yeah, right. Let’s be honest: that doesn’t happen. We either have them written

down somewhere (possibly in a password book with cryptic names for each site in case of the devastating event that we lose it), or we use the same three strong passwords for everything. Now we only need to remember one password: The password to access our devices (note: the lock feature highly recommended for those who use a password storage app). At this time, all our passwords can be stored within our phones for easy access to our accounts anytime and anywhere, except while ﬂying in an airplane.

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Create Spreadsheets Let’s face it: What better things do you have to do on that long ﬂight than get down to every detail? You can now create a spreadsheet—on practically any device—that can be opened by spreadsheet apps like Microsoft Excel on your PC or Mac at home or at work.

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More Specialized Business Functions While the abovementioned apps are likely useful in practically all lines of business, more specialized apps of interest include: Odesk, for managing and possibly outsourcing contractors for web development, translation and other business services; Dragon Dictation, for when your thoughts are too fast and too important to wait for access to a keyboard; and Bump, an app that lets you share contact information and ﬁles by bumping phones together (both phones must have the app installed and be ready—this prevents bumping without consent). There is even an app called Glassboard, in which you can create a private social network to discuss that top secret project while colleagues are spread all over the country or world, or a team can plan an elaborate event in record time (I’ve got conﬁrmation on a venue—have we found a caterer?).

No matter the size of your business or the plans you need to make in order to stay in business, and regardless of what brand you prefer, you and your business can clearly benefit from the convenience of mobile devices.  Mari Gallion is Associate Editor at Alaska Business Monthly. www.akbizmag.com

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RIGHT MOVES U.S. Senator Mark Begich

U.S. Senator Mark Begich announced the hiring of Heather Handyside as his new press secretary. Handyside will be based in his Anchorage, Alaska office. Handyside graduated from The American University in Washington D.C. with a bachelor’s degree in international policy and a minor in communications.

Compiled by Mari Gallion School of Law. He received his Bachelor of Arts in History from Cornell University.

Alaska Community Foundation

R&M Consultants Inc.

Anchorage Economic Development Corp.

The Anchorage Economic Development Corporation recently promoted Will Kyzer to business and economic development director and hired Archana Mishra as communications coordinator. Prior to AEDC, Kyzer served as a prospect manager with the Iowa Economic Development Authority where he worked closely with both the local and out-of-state business communities to build relationships and implement development campaigns. Mishra brings more than 12 years of experience working in advocacy, external relations, communication and policy to the AEDC team.

Landye Bennett Blumstein

The law firm of Landye Bennett Blumstein LLP announced that Leslie R. Need has joined the firm’s Anchorage office as an associate attorney. Need will focus her practice on Alaska Native Law, Civil Litigation, Corporate Law and Municipal Law. Need received her Bachelor of Science from Kansas State University and her Juris Doctor from the University of Tulsa College of Law.

Perkins Coie

Perkins Coie announces Cameron (“Cam”) M. Leonard has joined the firm’s Anchorage office in the firm’s Environment, Energ y & Resources practice group. Leonard earned his Juris Doctorate from Boalt Hall, University Leonard of California Berkeley

Group Business Development Manager. Spink is a graduate of the University of Washington and holds a Bachelor of Science in Civil Engineering. Derek Betts became the new Alaska Region Manager. Betts is a graduate of Oregon State University and holds a degree in Construction Engineering Management.

Pedersen

Slyker

Rosencrans

Teuber Shefﬁeld Alaska Community Foundation announces the hire of four new members of their Board of Directors: Penny Pedersen, Kate Slyker, Andy Teuber, and Bill Sheffield. In Ketchikan, Pedersen is the Executive Director for PeaceHealth Medical Center. In Anchorage, Slyker is the Executive Vice President of Client Services with the Nerland Agency, a full-service advertising agency located in Anchorage. She received her BS in marketing and English from the Carroll School of Management at Boston College. In Kodiak, Teuber serves as the President and Chairman of the Alaska Native Tribal Health Consortium. He holds an MBA from the University of Washington. In Anchorage, Sheffield has been a leader in business, government and public policy for most of the 56 years he has lived in Alaska. He served as Governor of the State of Alaska from 1982 to 1986.

Granite

Joe Spink has been promoted from Alaska Region Manager to the new role of Northwest Operating

LeQuire

Clark Rosencrans has joined R&M as a Special Inspector. Rosencrans has more than seven years of experience in the construction industry, serving as a laboratory technician and special inspector for a variety of Colorado firms. Gene LeQuire, PLS has joined R&M’s Surveying and Mapping Department as a Senior Land Surveyor. LeQuire has an Associate of Science in Survey Technology from the University of Alaska Anchorage and is a Professional Land Surveyor registered in Alaska.

Alaska Marine Stewardship Foundation

Dave Gaudet has been hired as the Director for the Alaska Marine Stewardship Foundation. As a former biologist with the Alaska Department of Fish and Game and a Bristol Bay fisherman, he brings his experience and knowledge of rural Alaska to bear on the economic and environmental effects of marine debris on coastal communities and Alaskan fisheries.

First National Bank Alaska

Perry Eaton and Lucy Mahan have joined First National Bank Alaska’s Board of Directors. Eaton worked as a commercial lender for First National Bank Alaska early in his professional career, which included serving as founder and

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Alaska Business Monthly | May 2013

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RIGHT MOVES CEO of the Alaska Native Heritage Center, and as an officer in various capacities at Alyeska Pipeline Service Company. Mahan graduated from Anchorage’s West High and earned degrees from the University of Colorado and Alaska Pacific University. Mahan owns and facilitates Transitional Counseling LLC.

Anchorage Youth Orchestras

A n c h o r a g e Yo u t h Orchestras has named Guadalupe Marroquin as Executive Director. Marroquin spent 24 years in public finance for the State of Alaska and six years in charge of running elections for the Municipality of Anchorage. Marroquin

Ahtna Netiye’ Inc.

B e lin da N o r thwayThomas has joined the Ahtna management team as Vice President of Human Resources. NorthwayThomas has a Bachelor of Business Administration from Wayland Baptist University.

Northway-Thomas

Alaska Family Wellness Center

Physician’s Assistant Clara Scott has joined the medical practice at Alaska Family Wellness Center. Scott holds a Master of Health Science and graduated from the Physician Assistant Program at Duke University in 2001 with honors and is a certified Scott Physician’s Assistant.

Alaska Native Medical Center

Paul Franke, M.D ., has been appointed as Chief Medical Officer at Alaska Native Medical Center.

Compiled by Mari Gallion Dr. Franke received his bachelor’s degree in philosophy from the University of Louisville, completed graduate studies at the Emory University School of Public Health, and earned a Medical Degree at the Medical College of Georgia. He completed his residency at the University of Pittsburgh Medical Center and a Business of Health Care certificate program at Johns Hopkins University.

Alaska Railroad Corp.

Governor Parnell appointed Andrew Craig to the Prince William Sound Oil Spill Recovery Institute Advisory Board. He holds a bachelor’s degree in natural resources-fisheries from Cornell University. Governor Parnell reappointed Margaret Holm and Arthur Walters to the Advisory Council on Libraries. Governor Parnell reappointed Charles Lean and appointed Kathleen Liska to the Citizens’ Advisory Commission on Federal Areas in Alaska. Governor Parnell reappointed Ronald Bressette, Gerry Hope, Joshua Howes and Daniel Kelly to the Marine Transportation Advisory Board.

Anchorage School District

Superintendent Jim Browder notified the Anchorage School Board that he will retire, effective June 14, 2013. Ed Graff, the district’s Chief Academic Officer, will be the new superintendent of ASD. Brooks

Hopp

Alaska Railroad Chief Engineer / Vice President of Engineering Tom Brooks will retire this month, and 25-year railroad project and engineering veteran Clark Hopp will succeed Brooks as head of ARRC’s Engineering Department. Hopp earned a degree in Construction Engineering Technology from Iowa Western College and completed additional engineering coursework at the University of Nebraska.

Key Bank

Colby J. Swenor has joined KeyBank in Alaska as a retail relationship manager at the South Anchorage branch. Swenor joined Key in 2011 and has more than seven years of financial industry knowledge and experience. Swenor

Office of Gov. Sean Parnell

Governor Parnell appointed Michael West to the Alaska Seismic Hazards Safety Commission. West holds a Ph.D. with distinction and a Master of Science from Lamont-Doherty Earth Observatory of Columbia University.

The Institute of the North

Institute of the North welcomes Northwest Arctic Borough Mayor Reggie Joule to the Board of Directors. Mayor Reggie Joule was elected to serve as Northwest Arctic Borough Mayor in 2012. Immediately prior, Joule served eight terms in the Alaska State House of Representatives.

Chugiak-Eagle River Neighborhood Library

Nan c y Clark is th e new manager of the Chugiak-Eagle River Neighborhood Library. A life-long Alaskan, Clark has worked in a numbers of libraries in the state since receiving her MLS from Indiana UniversityBloomington in 1991. Clark

Koniag Inc.

Tom Panamaroff will serve as interim President of Koniag Inc. with Ron Unger, Koniag’s Chairman, serving as Interim CEO. Panamaroff has been with Koniag for several years, most recently as President and CEO of Koniag Development Corp. Unger has served on Koniag’s Board for the past nine years and as its Chairman since October 2012. 

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May 2013 | Alaska Business Monthly

mining

©Judy Patrick Photography

Heavy equipment operators at work moving ore at Kinross Gold’s Fort Knox mine in the Interior. Fort Knox produced almost 360,000 ounces of gold in 2012.

Mining projects throughout the state boost economy By Julie Stricker

ith gold prices continuing to hover around $1,600 per ounce, 2013 is shaping up to be a stellar year for Alaska gold miners. It could be one of the biggest years in terms of production since 1916, with output forecast to top 1 million ounces. In Alaska, gold traditionally has made the headlines, but the state also has large reserves of base metals such as copper, lead and zinc, as well as rare earth minerals, according to Tom Crafford, large mine coordinator for the Alaska Department of Natural Resources. Trends overall show a slowing in-

Alaska Business Monthly | May 2013

vestment climate in mining exploration, he says. “I think in general, the investment climate or the availability of investment dollars has declined with the slowing of Asian economies, or at least the pace of growth of those economies,” Crafford says. “The amount of money that was flowing into the exploration efforts has waned so it’s more difficult to raise money now than it had been two years ago. That translates into a reduced level of exploration. “Nevertheless, things are good, generally speaking,” he adds. “Commodity prices aren’t bad, they’re good, but they’re

not as great as they have been for awhile.” Except for gold, which is still at near-record levels. Production is also rising.

Busy Gold Mines In 2012, the state’s five large gold mines produced about 870,000 ounces of gold, the bulk of which came from the huge open pit Fort Knox mine near Fairbanks and the underground Pogo gold mine 38 miles northeast of Delta Junction. Fort Knox, a subsidiary of Kinross Gold, produced almost 360,000 ounces of gold in 2012. It expects to produce 425,000 ounces of gold in 2013, with much of the www.akbizmag.com

increase coming from its expanded Walter Creek Heap Leach Facility. It’s one example of how high gold prices benefit the producers, Crafford says. The heap leach is a system in which lower grade ore is stacked and bathed in a cyanide solution that binds the gold, which is later extracted. The cyanide solution is then re-used on the closedcircuit system. The heap leach facility was constructed in 2009 and has undergone several expansions. The mill at Fort Knox is expected to continue operations through 2017, with the heap leach adding another few years of production. “Mining projects—they’re constantly looking at their economics and how they can shave pennies a ton off their hauling and transportation costs,” Crafford says. “The more you can cut your costs, it lowers the cut-even grade. If you can mine or process more cheaply, what hasn’t been ore can become ore.” Of course, finding another big ore body is another way to lengthen mine life, which is what happened at the Pogo, owned by Sumitomo Metal Mining. In 2012, Pogo announced the discovery of a new deposit, called Deep East, about 1,000 feet northeast of the main ore body. Deep East contains an estimated 1.2 million ounces of gold, but workers are still mapping to find the true extent of the ore body, and mine officials are optimistic they will find more. The discovery adds at least two years to the life of the mine, which had been expected to close in 2017. Exploration of Deep East is continuing in 2013, with associated construction projects such as a road to the deposit and upgrades to facilities and infrastructure. Two large mines in Southeast Alaska are also upgrading facilities and planning for future expansion. Kensington Mine, owned and operated by Coeur Alaska Inc., a wholly owned subsidiary of Coeur D’Alene Mines Corp., is the new big kid on the block with about 11 million ounces of gold reserves identified. It is an underground mine that began production in 2010. Significant upgrades both underground and on the surface, including new administration buildings, dormitories and kitchen facilities, were completed in 2012. www.akbizmag.com

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May 2013 | Alaska Business Monthly

Photo by Judy Patrick Photography

reserves of 33 million ounces of gold, is expected to produce 1.3 million ounces of gold annually during operations, which would make it one of the world’s largest gold mines. The project is several years away from any production, but reached a milestone in 2012 after 16 years of planning, exploration and studies when it officially submitted its permit applications. It is owned by NovaGold Resources with Barrick Gold Corp. as its operating partner. Crafford noted that Barrick was proceeding with the permitting process but had not yet made a commitment to development. The huge, and controversial, Pebble project continues to work toward Last August, the gold bar containing the 2 millionth ounce of gold was the completion of its prefeasibility study in 2,766th bar of gold poured at Pogo Mine. The bar contains 744 troy ounces and 2013. The project, jointly managed by is approximately 93.6 percent gold. Anglo American and Northern DynasCoeur Alaska plans to spend $9.4 mil- potential to outshine the current gold- ty Minerals, has the potential to prolion on exploration drilling in 2013 and producing mines combined. vide up to a quarter of the United States’ produce about 110,000 ounces of gold. For the past several years, Internation- copper supply for more than 50 years. Greens Creek Mine on Admiralty Is- al Tower Hill Mines has been exploring More than 1 million feet have been land is continuing exploration efforts the Livengood area 70 miles north of drilled to delineate the ore body, which to add to its resource reserves. Greens Fairbanks, which has already produced includes an estimated 55 billion pounds Creek, operated by Hecla Mining Co., 500,000 ounces of gold in the past cen- of copper, 67 million ounces of gold and is an underground polymetallic deposit tury. They found more, much more. 3.3 billion pounds of molybdenum. Pebcomprised of silver, zinc, gold and lead. Livengood contains more than 16.4 ble’s location near the headwaters of rivIt is one of the largest silver producers million ounces of potentially recover- ers feeding salmon-rich Bristol Bay has in the world; gold is a byproduct of the able gold, and the exploration zones made it a target for environmentalists, silver extraction process. are still open, according to Rick Solie, as well as fishermen and other groups. Hecla is in the process of expanding community and government relations On a much smaller scale, a gold project the tailings facility at Greens Creek, manager. But further exploration of the in the Alaska Range about 125 northwest Crafford says. The expansion is in the deposit will have to wait, Solie says. of Anchorage is progressing. The Terra permitting process. Once completed, it “The gold will be there,” Solie says. prospect, under development by Westwould give the mine another 30 years of The priority is to figure out how to pro- Mountain Gold of Denver, could yield as tailings disposal. duce that first ounce of gold, not to find much as 1 million ounces, WestMounThe most recent gold mine to begin gold to produce in 25 years. tain CEO Greg Schifrin noted in an Octoproduction is the Nixon Fork mine, The project is in its fifth year of en- ber release. Environmental and baseline near McGrath. The mine operated on vironmental baseline studies and mine studies of the project are under way. and off for decades and reopened in design/production schedule alterna“The Terra project continues to pro2011 under the umbrella of Fire River tives have been completed. duce bonanza gold intercepts and we Gold Corp., which operates Nixon Fork Little fieldwork is scheduled for this are confident that the resource will through its wholly owned subsidiary, summer, Solie says, as International reach 1 million ounces,” Schifrin stated. Mystery Creek Resources. Tower Hill is working on optimizing Prospects to Watch It has a defined resource of about the project and preparing a feasibility While gold is making headlines, other 131,500 ounces of gold, as well as cop- study, which is due out this summer. per. Drilling has uncovered very high“We’re in that stage internally where minerals are abundant in Alaska, and grade gold deposits, some as high as 219 we’re looking at the best mine design to Crafford says several prospects are worth watching. grams per ton, according to Fire River put forward,” Solie says. Graphite One Resources is explorGold’s website. Work is progressing on Mine officials say a producing mine getting the mine’s mill up to full work- could easily be twice the size of Fort ing a potentially world-class deposit of ing order, Crafford says. Knox. It is one of the largest gold dis- graphite in the Kigluaik Mountains of the Seward Peninsula, about 40 miles coveries in the past 20 years. Readying Future Mines An even larger gold prospect is lo- north of Nome. In the meantime, work is progress- cated in Southwest Alaska. If all goes as “Some of the initial things that I’ve seen ing on two mines that each have the planned, the Donlin Gold project, with are pretty interesting,” Crafford says. 56

Alaska Business Monthly | May 2013

www.akbizmag.com

The project is being explored by Graphite One Resources, formerly Cedar Mountain Exploration Inc. based in Vancouver, British Columbia. The Graphite Creek deposit is made up of large flakes, visible on the surface. A preliminary assessment estimates the deposit contains 164.5 million tonnes at 4.61 percent graphite. “Based on the size of the inferred and potential resource, we believe this to be the largest reported flake graphite deposit in the world, and look to take an aggressive approach to advancing the project towards production in the near future,” Anthony Huston, president of Graphite One, wrote in news release. The company is planning a comprehensive exploration program for 2013. Graphite is used to make lithium ion batteries, which are more powerful than traditional batteries and are used in electric and hybrid automobile batteries. Farther north, NovaCopper and NANA Regional Corp. are continuing to explore the Arctic and Bornite deposits in the Ambler District. The two formed a partnership in 2011 to expedite exploration. The Upper Kobuk Mineral Projects are located in a region with known high-grade deposits of copper, zinc, lead, silver and gold. Exploration is continuing in 2013, but a report released by NovaCopper earlier this year shows the combined sites have an estimated 3.3 billion pounds of ore, mostly copper, with another 1.6 billion pounds inferred. At Arctic, the average ore grade is over 7 percent “copper equivalent.” The ore also includes silver, lead and gold. It is one of the richest copper finds in the world in the past decade, NovaCopper says. While the average grade at Bornite is lower on average, it also is a large resource with two distinct zones, South Reef and Ruby Creek. South Reef is estimated to hold 2.4 billion pounds of contained copper at grades of 2.54 percent. It also holds 1.9 billion pounds of copper at grades of 3.44 percent. Ruby Creek holds an estimated 179 million pounds of copper at 1.19 percent grade and another 883 million pounds at a grade of 0.5 percent. “We are well under way to achieving our objective of defining 10 billion pounds of high-grade copper in the www.akbizmag.com

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May 2013 | Alaska Business Monthly

Photo by Judy Patrick Photography

An aerial view of Pogo Mine shows the Goodpaster River in the background, the mill and processing facilities with the “blue tube” conveyor belt that travels up from the underground mine, and the camp, administration and maintenance facilities in the foreground.

Upper Kobuk, which has the potential to evolve into one of the world’s major copper mining districts,” Rick Van Nieuwenhuyse, NovaCopper’s president and CEO, wrote in the release. Another interesting prospect Crafford has been watching is the Niblack project on Prince of Wales Island about 30 miles southwest of Ketchikan. Niblack is a copper-zinc-goldsilver deposit under advanced exploration. Drilling is continuing via underground tunnels to pinpoint the extent of the deposit. Owner Heatherdale Resources hopes to begin mine construction as early as 2015. It is currently looking for tailing and mill sites and plans to begin the feasibility process by late 2013. Heatherdale is looking at barging ore to Gravina Island for processing, Crafford says, which could have some real advantages in lowering the amount of energy needed at the mine site. Based on the current resource estimate, a mine would have an estimated life of 10-12 years and employ up to 130 people. 58

Alaska Business Monthly | May 2013

The Dotson Ridge rare earth deposit is also on Prince of Wales Island southwest of Ketchikan. The deposit, under development by UCore Rare Metals, contains the heavy rare earth elements dysprosium, terbium and yttrium. Those elements are used in high-tech manufacturing such as nuclear control rods, lasers and fuel cells and have in the past been supplied mainly by China. Rare earths are a different kind of commodity than iron or copper in terms of scale, Crafford says. While hundreds of tons of rare earths may be mined annually, the more common ores are mined and sold by the thousands, if not millions of tons per year. That makes the market more susceptible to dramatic swings. “Rare earths are more of a niche market kind of thing and while increasingly important, the amounts of them that are used are relatively small,” Crafford says. Ucore says the Bokan Mountain deposits could support an entire rare earths industry in Alaska and provide a stable source for the United States.

The heavy metals are found not far from UCore’s Bokan Mountain uranium project, which contains uranium and thorium. Recognizing the potential of the rare earths, UCore split the two projects and is focusing on a fast-track production schedule for the heavy metals, according to Jim McKenzie, president and CEO of Ucore. UCore released its preliminary economic assessment for the project in January, anticipating a mine startup by 2016. “Remarkably, the PEA supports a very straight-forward mine development plan in combination with a near term production horizon at Bokan,” McKenzie says in the release. “What’s more, this affordable, high-return facility will generate product that the US critically requires to sustain competitiveness in multiple high growth fields, including high tech, renewable energy, medical science and defense systems.”  Julie Stricker is a writer living near Fairbanks. www.akbizmag.com

construction

Photo courtesy of Granite Construction Co. Inc.

Loading the gravel train at the Eklutna Granite site near Birchwood.

Eklutna, Granite Move Epic Volume of Gravel Making way for Birchwood Industrial Park

he Dena’ina people are quiet by nature, says Curtis McQueen, chief executive of Eklutna Inc. But Eklutna’s shareholders and managers are planning to make plenty of noise about an emerging new project, the Birchwood Industrial Park. It’s a concept that’s been moving toward its debut for several years and is expected to fill a critical need for the greater Anchorage area. The need is land—ready industrial land—something in very short supply. “There’s virtually no industrial land of this size in Anchorage,” McQueen says. The project is in the Birchwood community north of the city, situated strategically between the Alaska Railroad and the Glenn Highway. The stateowned Birchwood Airport is adjacent to the site. To pursue the project, Eklutna assembled what has proven to be an effective partnership involving Granite Construction Inc., Cook Inlet Region Inc.

www.akbizmag.com

By Wesley Loy and the railroad. What the partnership has achieved so far is impressive.

Multiple Assets If you had flown over the site in 2008 and looked down, you would have seen a gentle slope covered with trees. Beneath the trees was a thick gravel bed, deposited long ago by glacial action. One might have reasonably thought, on first impression, that the site wasn’t suitable for development with all that rock in the way. But Eklutna and its partners saw it differently. In fact, the gravel is proving a valuable asset, helping to pay the cost of developing a “nice and flat” 130-acre industrial space in a great location along one of Alaska’s most important transportation corridors, McQueen says. A Herculean gravel extraction campaign is expected to wrap up this summer—and Eklutna is gearing up to market the tract to potential tenants. When it comes to land, Eklutna is a go-to player locally. It’s the largest

private landowner in Anchorage with 90,000 acres within the municipality, including Eagle River, Birchwood, Chugiak, Peters Creek and Eklutna. Eklutna is one of the many Native village corporations formed under the Alaska Native Land Claims Settlement Act of 1971. Incorporated in 1972, Eklutna today has 178 shareholders. The Birchwood site is actually a split estate. Eklutna owns the surface, while CIRI owns the subsurface, including the gravel. In 2009, Eklutna, CIRI and Wilder Construction, then a subsidiary of Granite, signed agreements to mine the Birchwood gravel with an eye toward preparing the site as an industrial park.

Successful Partnership In Granite, Eklutna found a partner with the brawn and know-how to efficiently remove the immense volume of rock on the site. Further, the company really knew the aggregate business and May 2013 | Alaska Business Monthly

Photo courtesy of Granite Construction Co. Inc.

all the products that could be made from the raw gravel. Based in Watsonville, Calif., and publicly traded on the New York Stock Exchange, Granite has operated other gravel pits in Alaska, including at Chugiak and Palmer. For the Birchwood site, the plan was to mine the gravel and load it by conveyor onto trains for transport south into Anchorage. Right out of the ground, the Birchwood gravel doesn’t look like the crusher-run stuff you might see in a driveway. It’s more like cobblestones of all sizes plus sand. The mining and hauling has proceeded smoothly each summer since 2009, and the job is nearly done. The amount of gravel removed so far is truly staggering, about 3 million tons, say Matt Ketchum and David Laster, two Anchorage-based managers for Granite. How much is 3 million tons? Enough to fill 349 trains, with 86 cars in each train. Enough to pave more than 1,900 miles of two-lane highway. Ketchum and Laster believe Granite has delivered top performance on a tough job involving a lot of partners and complexity. 60

Alaska Business Monthly | May 2013

Photo courtesy of Granite Construction Co. Inc.

Granite’s heavy equipment ﬂeet, lined up, ready to work.

Granite built a railroad siding for transporting gravel as well as materials and equipment.

McQueen concurs. “These guys have hit every milestone,” he says. Gravel plays a vital role in Alaska construction, and the Birchwood gravel is going to good use. During an interview with Ketchum and Laster, they learned by smartphone that Granite had won a street resurfacing contract in South Anchorage.

“Eklutna rock will be on Dimond Boulevard this summer,” Ketchum says.

Good Neighbors A priority on the gravel mining operation has been showing consideration for Birchwood residents. “It’s a little bit of an oxymoron to say a gravel pit can be a good neighbor, but you can with monitoring,” Ketchum says. www.akbizmag.com

©Jerry Lavine, Courtesy of Eklutna

Aerial view of the gravel load out, rail siding, and future Birchwood Industrial Park. Granite expects to complete harvesting gravel this summer.

In 2010, the Resource Development Council for Alaska and the Alaska Conservation Alliance gave Granite an award for “doing it right.” The organizations said Granite “took several extra steps to mitigate noise issues and installed water testing wells to detect any unexpected changes to water quality in the area.” Randy McCain, a Birchwood resident active in the local community council, says residents had concerns such as how many hours per day the gravel loading would run. Generally, the project hasn’t been a problem, he says, and Eklutna is quite engaged and responsive. “They would get a very high score as far as addressing community concerns,” McCain says.

The Business Model Far from being an unwanted obstacle, the Birchwood gravel actually has proven key to developing the industrial park. The way it works is, Granite mines and markets the gravel and pays Eklutna and CIRI a royalty. www.akbizmag.com

Eklutna gets its land cleared and leveled at no cost, with the royalty providing seed money to further advance the development, McQueen says. Exactly what configuration the site will take once the gravel is gone remains unclear. Will it be divided into industrial lots? Or will one or two major tenants occupy all the space? McQueen says Eklutna won’t try to guess what users want. “It’s market-driven,” he says. “Someone could bring an idea to you that you never thought about.” He doesn’t believe the site will remain an open space. He sees buildings going up on most of the acreage. Eklutna isn’t planning to target any one industry. Rather, it hopes to attract interest from the oil and gas sector, manufacturing, logistics and maybe even the military. Certain parties already have approached Eklutna, but McQueen declined to name names. He did say that in 2010, people with a venture known as Denali talked of using the site as a lay-

down yard for pipe. Now defunct, Denali was a short-lived partnership of BP and ConocoPhillips created to pursue an Alaska natural gas pipeline.

Wide-Open Space One selling point is that the industrial park is expected to be covered under Anchorage’s U.S. Foreign-Trade Zone designation. A foreign-trade zone is a place where companies can enjoy delayed or reduced duties on foreign merchandise. McQueen wouldn’t venture an estimate of what it will cost to fully develop Birchwood Industrial Park. Eklutna will expect tenant companies to share certain development costs, he says. Eklutna hasn’t yet chosen a contractor to finish development of the site. The corporation is looking to the Alaska Railroad to help promote the industrial park. “We’re very excited about working with Eklutna on this,” says Jim Kubitz, the railroad’s vice president for corporate planning and real estate. May 2013 | Alaska Business Monthly

©Jerry Lavine, Courtesy of Eklutna Inc.

It would be wonderful, he says, to have such a spacious site in downtown Anchorage, home base for the railroad and the Port of Anchorage. The railroad plans to make a brochure to tout the Birchwood park, Kubitz says. The site has a lot going for it, he says. First, the land already is zoned industrial. That’s big, Kubitz says. The site also is easily accessible via Birchwood Loop Road, which runs off the Glenn Highway at the North Birchwood exit. Another plus is the close proximity of the railroad’s Birchwood yard, which has several sidings, or extra tracks, where rail cars can sit. A rail spur long enough to accommodate 43 cars also has been built alongside the industrial park tract. The spur could be of great use for park users. Overall, the Birchwood tract is “such a good location for a customer who needs rail service,” Kubitz says. He believes the site could hold appeal for warehousing, or for managing raw materials or large equipment. The railroad’s own customers obviously are candidates for the Birchwood 62

Alaska Business Monthly | May 2013

Photo courtesy of Eklutna Inc.

The Birchwood Industrial Park is across the railroad tracks from the Birchwood Airport. The last section to be cleared is the few acres in the center of the photo to the right of the largest gravel pile waiting to be loaded into railcars.

Eklutna Board of Directors: Maria Coleman, Kim Zello, Lee Stephan, Debbie Fullenwider, Michael Curry.

site, as are companies in Anchorage in need of more elbow room. “I’ve actually already spoken to potential customers,” Kubitz says. Eklutna preferred not to say much about its project until the gravel removal was well along, McQueen says. Now he’s thinking the company might hold a spe-

cial event toward the end of summer to showcase the Birchwood Industrial Park. “We’re ready to tell the world we’re open for business,” he says.  Wesley Loy is a journalist living in Anchorage. www.akbizmag.com

Meridian Management Inc. Alaska Project Management Firm Turns 15 BusinessPROFILE

eridian Management Inc. has been providing construction and project management services for owners in Alaska since 1998. The company customizes its services to meet the individual needs of clients, whether they have a multi-project program, stand-alone project, or a specific task within the project life cycle. Whatever the case, Meridian provides unbiased representation to owners for managing their capital projects, focusing on protecting the owner’s interests and ensur ensuring they are getting the value they are paying for. In addition to construction phase management, Meridian handles a wide variety of preconstruction tasks, including determining the most effective delivery method, equipment planning and managing solicitations for design teams and contractors. “We are very experienced at managing the critical planning phases, and we like to maintain continuity throughout the project,” said Project Manager Johnathon Storter. “Some firms substitute less-experienced staff once construction starts. We don’t subscribe to that approach.”

There When You Need Us Essentially, Meridian serves as the inter interface for project owners who may lack the time, expertise or in-house resources to effectively manage their projects. “We’re there when you need us,” President Erik Fredeen said. While some architectural and engineer engineering firms provide construction management services as a sideline to their primary business, Meridian specializes in construction management. “This is what we do,” Storter explained. “You wouldn’t hire a doctor to install roofing.” Meridian offers expertise in a diversity of Alaska industries. Its project managers have a strong grasp of technology, engineering and construction, including electrical and mechanical systems. “Although we are not the designer of record, you have to have a technical understanding of what you’re managing,” Fredeen said. Meridian Management Inc. 3940 Arctic Boulevard, Suite 102 Anchorage, Alaska 99503

100 Percent Alaskan An employee-owned corporation, Meridian was founded in Alaska and only works in Alaska. That’s a major benefit to clients, given the uniqueness of construction in Alaska. “Our project managers understand the unique challenges of Alaskan construction, whether in rural or urban Alaska,” Fredeen said. Meridian also has experience represent representing owners in a variety of industries and areas of government. Having extensive experience in multiple industries—including health care, telecommunications, commercial construction and transportation— allows the company to cater to a broad base of private and public clients. “We can manage all types of projects,” Storter said. Meridian recently completed work on GCI’s $88 million TERRA-Southwest project and continues to work on TERRANorthwest, bringing terrestrial broadband to western and northwestern Alaska. It is also working on the remodel of the old Veterans Administration clinic building in Anchorage and a design|build dormitory in Bethel for Yuut Elitnaurviat. Meridian was recently notified of being the successful proposer to provide construction management services to the Matanuska-Susitna Borough on its $214 million school bond program. Fredeen says Meridian plans to continue focusing on successfully delivering projects to Alaskan clients. “Unlike most of our competition, we can honestly say we are a 100 percent Alaskan project and construction management firm,” he said. Storter adds: “We have really enjoyed our 15-year tenure in the industry. We don’t plan to dilute our focus with branch of offices outside of Alaska.”

907-677-2601 meridianak.com • info@meridianak.com LinkedIn: Meridian Management Alaska P A I D

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

construction

Kipnuk in Western Alaska. Three-and-a-half miles of the Kipnuk boardwalk will be replaced this summer—anticipated labor will be resident hires trained by the Bethel Regional Construction Academy.

Alaska Construction Academies: Building a Workforce Empowering employers and students alike

ost people don’t need a statistician to show them that our prevailing economic climate is changing. While 25 years ago it was believed that a bachelor’s degree was a ticket to financial stability and a graduate degree guaranteed riches, the parents of today’s students have seen enough fluctuations in the economy to know that to stay above water in changing times requires diversifying one’s skill sets. Along those lines, employers are seeing that many people entering the work64

Alaska Business Monthly | May 2013

By Mari Gallion force, including college graduates, are lacking work skills as basic as punctuality, communication, and assuming a subordinate role in a chain of command. Alaska Construction Academies is a beneficial resource for students who would like a career in the trades as well as employers who are seeking trained and qualified local workers. The purpose of the Academies is for agencies to combine resources to attract and thoroughly train both young people and adults and connect them to first jobs in

construction and trade apprenticeship programs. According to Kathleen Castle, executive director of AkCA, labor market data shows that more than 1,000 new construction workers are needed in Alaska each year for several years to meet construction job growth and to replace retiring workers, and AkCA has designed programs to help ensure that their graduates are labor-ready. Data from a 2010 survey conducted by the Construction Education Founwww.akbizmag.com

dation shows exactly what qualifications Alaskan construction companies are looking for in their employees that go beyond constructions skills: Math skills (including math that directly relates to the construction industry), reading comprehension, blueprint reading, punctuality, work ethic, clean driving record, great professional communication skills and the importance of a good attitude—attributes that have become part of the AkCA curriculum. Best of all, pending application, interview, selection and drug screen, the classes at AkCA are offered at no cost to the student. As space is limited, only the best applicants are accepted and graduated. Employers who hire graduates of the AkCA can know they are getting the cream of the crop.

What? How? According to the AkCA website, “In 2006 the Legislature awarded a $1M grant to the Anchorage School District and the Alaska Works Partnerships Inc. to implement the project, with the goal of serving 200 youth and adults within the year.” Thus, Alaska Construction Academy was the result of the combined efforts of ASD and AKWP, as well as Associated General Contractors of Alaska, Anchorage Home Builders Association, Alaska Department of Labor and Workforce Development, and Cook Inlet Tribal Council. Within six months of their 2006 founding, the program surpassed their original goals, with more than 450 students taking construction vocational courses, and more than 150 adults taking basic skills courses for a specific trade, including carpentry, electrical, plumbing, drywall finishing and welding. AkCA earned various grants to keep this extremely successful program going and expanding. In fall 2007, a second academy was established in Fairbanks—and subsequent years saw academies established in Juneau, Kenai, Ketchikan, and the Mat-Su Valley. At this time, AkCA is in eleven locations across the state, now including the Bethel region, Kodiak, Nome region, Bristol Bay and Kotzebue. Significant partners of local academies are the school districts and University of Alaska campuses in the respective academy locations. www.akbizmag.com

Meeting Employers’ Needs According to the 2010 CEF survey, 44 Alaska construction respondents were planning for a significant workforce expansion, and nine were planning for a facilities expansion in the next year. Skills cited as needed by these companies for full-time employees were construction laborers, carpenters, equipment operators, painters, plumbers, electricians, HVAC installers, dispatchers, roofers, insulators and certified asbestos and abatement workers. In Alaska, the majority of new hires traditionally occur in April, May, and June—but the Alaska Construction Academy takes applications yearround. According to Castle, the market is currently in need of diesel mechanics and heavy equipment operators, and there has been an uptick in various renewable energy projects, including wind turbine installation. AkCA is modifying its curriculum to meet the new job market needs. “We’re going to be doing a pretty exciting pilot program housed at the Fairbanks Pipeline Training Center,” Castle says, “and it will include some heavy equipment operation, and also some maintenance and repair.” Josh Sundstrom, president of WillowRidge Construction LLC in Anchorage, has hired a total of nine people from the AkCA, and describes his experience with the graduates as “positive across the board.” “They have all been eager, and ready to work,” Sundstrom says, “which is more than I can say for some of the people I’ve hired over the years.” “In general, the graduates are young people who have a desire to pursue a career in the construction trades,” he continues. “This tends to foster a healthier than average attitude toward their job, which results in higher productivity, reliability and job site morale.” “The best evidence of that is the fact that my current shop foreman is a young man named Justin Rhoades,” Sundstrom says. “He was my very first KCC hire, and also happens to be the longest standing employee of WillowRidge Construction. As they say, ‘the proof is in the pudding!’” Early in May, the Bethel Regional Construction Academy will be con-

ducting a training for flagging and OSHA 10, and Castle is confident that their students will be selected by an Oregon contractor for a 3.5 mile boardwalk installation project in Kipnuk.

About the Students “At high school level, more than 4,000 students go through classes,” Castle says. Popular classes include welding, carpentry, electrical, masonry or weatherization. “The high school classes are a semester long, and we offer classes after the regular school day, which is very popular.” About 20 percent of those students are seniors ready to enter the workforce. The Academy also offers intensive after-school and weekend courses. “It’s great,” Castle says, “that we have so many enthusiastic kids who are willing to give up their free time to take an intensive class.” “We have about 400 adults who take classes each year, and the huge majority of them are looking for work,” Castle says. “They might be looking at construction for the first time, they may be looking at re-training—they might be someone looking for something to do right now.” User Friendly for Students and Contractors For prospective students interested in taking classes at one of the academies, the application process is simple: Find the academy location nearest you, click on your location, click whether you are an adult or a student, and fill out the application materials. Applications are accepted year-round on the website, alaskaca.org. Employers are encouraged to contact the regional academies or Castle at 907770-1826, or Kathleen@alaskacef.org for access to hundreds of entry level Alaskan construction workers. 

Mari Gallion is Associate Editor at Alaska Business Monthly.

May 2013 | Alaska Business Monthly

construction

Natural Gas Pipeline Construction Planning Several variables keep an important project on hold By Rindi White A worker records data for the environmental impact statement for the in-state natural gas pipeline from the North Slope to Point MacKenzie. The project has an approved EIS. CREDIT: Photo courtesy of Alaska Gasline Development Corp.

airbanks residents pay more than twice what Southcentral natural gas consumers pay to heat their homes. Southcentral Alaska consumers are poised to get a shocking price increase when Cook Inlet natural gas supplies are no longer able to meet demand and gas must be imported to Alaska, an event predicted to happen in 2015. Bush communities are forced to pay even more—sometimes up to 70 percent of their income—for energy than almost anywhere in the nation. In short, many Alaskans are facing an energy crisis or are already in the middle of one. And although a commercial gas line to export natural gas being produced but reinjected on the North Slope has been in the works for several years, 66

Alaska Business Monthly | May 2013

it doesn’t appear the line is any closer to reality—and even if built, it’s questionable whether communities could tap into the line for their own use. Enter the Alaska Gasline Development Corp. Created in 2010, AGDC is a state corporation tasked with developing a natural gas pipeline that will deliver North Slope gas to as many communities in Southcentral and Interior Alaska as possible. “We report to the Legislature and to the governor’s office,” says Leslye Langla, public affairs director for the corporation. To date, AGDC has received $72 million from the Legislature, money Langla says has been used to study whether the project is feasible and to begin work on permitting and environmental testing. Langla says the corporation estimates it

will take about $400 million to get the project to the construction phase. The project would build a natural gas pipeline from the Prudhoe Bay to the ENSTAR distribution system located near Point MacKenzie in the Mat-Su Borough. Langla said “lean gas” or gas ready for consumer use and propane is included in the latest pipeline model. The natural gas liquids, or chemicals such as methane, ethane, propane and butane that frequently are produced along with pure natural gas, will have been removed before entering the pipeline at a $1.7 billion gas treatment facility. AGDC determined the natural gas liquids are not economical to ship, as there is a glut on the market due to the Lower 48 shale gas boom. Processing upfront, Langla says, will allow www.akbizmag.com

communities access to natural gas without having to pay high costs associated with extraction plants along the pipeline. “Communities won’t need expensive straddle plants anymore,” she says. “Nenana and Talkeetna could get gas— as could any community that wants to build out an infrastructure.” And while residents in Fairbanks are currently paying about $26 per million British thermal units or btu for heating fuel, Langla said AGDC’s studies estimate gas could be delivered to Fairbanks for between $8.25 and $10 per million btu. In Anchorage, where prices are low due to existing Cook Inlet natural gas supplies, consumers pay about $9.50 per million btu. “We believe we can get it there for between $9 and $11.25 per million Btu. The tariff numbers are certainly reasonable and for a long-term energy solution, we believe it’s a good scenario,” Langla says.

Can’t Build it Quickly Enough At press time, The Alaska Legislature was considering House Bill 4 that relates to the pipeline. If passed, the bill would do three critical things: it would ensure on-

Workers check a monitoring station at Looney Farm near Nenana in January 2012. Photo courtesy of Alaska Gasline Development Corp.

going funding for the Alaska Gasline Development Corp.; would establish AGDC as a standalone public corporation so it can enter ownership and operating partnerships and could issue revenue bonds; and would give the state contract carrier status so project financing and other aspects of the project can move forward.

If that bill passed and AGDC is able to proceed along its established timeline, North Slope gas could be piped into Fairbanks and Southcentral Alaska by 2019. That might not be soon enough for some Fairbanks businesses, which are already feeling the crunch of a limited natural gas supply and steep energy costs.

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C O R P O R AT I O N

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May 2013 | Alaska Business Monthly

Far left: Field work in progress for the AGDC environmental impact statement. Above: Workers check stream data for the AGDC project. Left: Stream monitoring equipment records data for the AGDC environmental impact statement. Photos courtesy of Alaska Gasline Development Corp.

“For five years we’ve been suffering from high energy prices. This town is at a breaking point,” says Jon Cook, chief financial officer for Airport Equipment Rental, a company based in Fairbanks with offices in four other Alaska communities. AER has about 125 employees, Cook says. Cook says high energy prices in Fairbanks make it difficult to retain good employees. A few employees that work with the company on the North Slope have relocated to out-of-state homes during their off periods, he says. “We haven’t lost them as employees, but the state has lost them as residents,” he says. But there’s an even more pressing reason Cook supports the in-state gas line. His company has a real estate development side that is working to close a deal to bring in three large retailers— but the project is being delayed because of the limited natural gas supply. Retail box stores generally use gas-fired rooftop units to heat and cool their buildings, he explains. His company is currently negotiating with three stores, which would build more than 250,000 square feet of new retail space in Fairbanks. The project would mean 300 construction jobs and 68

Alaska Business Monthly | May 2013

nearly that many long-term retail jobs. But the project can’t move forward unless his company can prove enough natural gas is available to supply the new stores. “If we don’t have something within the next two to three years, these projects are going to go away. That’s really the corner we’re backed into here; we have dozens of acres of raw land whose highest and best use is retail development, and that development, one of its contingencies, is the supply of natural gas,” he says. While the in-state pipeline is too far off to meet Cook’s timeline, he and other Fairbanks residents hope another project will provide a stop-gap solution: trucking liquefied natural gas from the North Slope to Fairbanks. As part of that $355 million project, natural gas would be liquefied in a to-be-built facility on the North Slope, and then carried in tanker trucks to a distribution system serving Fairbanks and the surrounding communities. If Senate Bill 23, the measure allowing Alaska Industrial Development and Export Authority funding for the project, moves forward, trucking could begin as early as mid-2015. “The trucking solution is not a long-

term solution but a stop-gap,” Cook says. “It’s a bridge to HB 4.”

In-State Pipeline vs. Commercial Pipeline A commercial natural gas pipeline has been promoted since the federal Alaska Natural Gas Transportation Act was passed in 1977. A pipeline through Canada was seen as the best use for North Slope produced natural gas. Although the project languished for several years, the Alaska Gasline Inducement Act, or AGIA, reenergized it in 2007. A proposal by TransCanada and ExxonMobil was selected in 2008 that would build a pipeline down the Alaska Highway to connect with the existing pipeline grid. The project, according to the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects, is on hold following “an unsuccessful open season that began in 2010 and sought shipper commitments to use the pipeline.” According to the office, TransCanada and ExxonMobil teamed with ConocoPhillips and BP to study a natural gas export project that would first www.akbizmag.com

liquefy the gas before shipping it. Further plans have not yet been announced. Rep. Mike Hawker, a Republican lawmaker who represents Anchorage in the Alaska Legislature and is a primary sponsor of House Bill 4, says the bill aims to get gas moving to Alaska communities that need it, but it doesn’t rule out a commercial pipeline through AGIA. “HB 4 is not about AGIA, it’s not about competing with the AGIA language. It’s all about how we get a pipeline moving,” Hawker says. “It’s a complete framework for the State of Alaska to have a strong seat at the table for any project that is developed, and moving forward—including AGIA.” Valdez city manager John Hozey calls the idea that the two projects could be rolled together “disingenuous.” “That’s not what’s being debated on the floor of the Alaska Legislature right now,” Hozey said in March. Hozey and the city of Valdez are behind an effort to kill House Bill 4. The city plans to spend between $700,000 and $900,000 in an advertising campaign to kill the bill and, if possible, push for a commercial pipeline instead. He called the in-state pipeline aimed at supplying gas to Alaskans “a dangerous project” that will cut potential future revenue from a commercial North Slope gas line. “How many pipelines is Alaska going to build?” Hozey asks. “If this low-volume line goes forward under AGDC, it’ll rip away any chance we have of building the right pipeline in the future.” Hawker says he believes in the bill because it provides a framework to get a gas pipeline from the North Slope to the population centers of Alaska, whether or not that happens in conjunction with the producers affiliated with AGIA. This bill is focused on getting natural gas to Alaska residents who need it in the near term, but it could grow from there. “(HB 4) empowers AGDC to not only pursue the backbone project, which gets the main pipe from the North Slope to the southern communities—as importantly, it empowers AGDC to pursue other options and expansion-type projects that would connect Alaskans wherever they are in the state with that gas,” Hawker says.  Rindi White is a freelance journalist living in Palmer. www.akbizmag.com

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special section

Oil & Gas

The Future is Already in the Field

Photo courtesy of Expro

Expro provides qualiﬁed well testing staff to operate the mobile well test units.

Testing wells in the Arctic with new equipment By Mari Gallion

ast December, Expro, a leading international oilfield services company, unveiled their new Arctic Mobile Well Test Units, three fully portable and self-contained production facilities that are capable of well test and cleanup operations, at an event at the Dena’ina Civic and Convention Center in Anchorage. The future has arrived. Although they may not be extremely visible to people not in the oil and gas industry, the company is no newcomer to the scene: Expro has been a leading provider of well testing services and completion flowbacks—both onshore and offshore—for more than 30 years, with significant strengths in subsea wells and high flow rate gas wells. Pioneer Natural Resources Alaska Inc. currently has one of the units in 70

Alaska Business Monthly | May 2013

use. According to Tim Crumrine, senior staff completions engineer for Pioneer Alaska, “While a trailer mounted unit is really nothing new and has been used on the North Slope for years, Expro local shop custom built the trailer mounted well testing unit to Pioneer’s specifications and we have been more than pleased with the quality and service around this particular unit.” The new well test units are designed to simplify and streamline the process of well testing by diminishing or eliminating the need to mobilize several pieces of equipment that are traditionally transported to the well site in multiple pieces on several trucks and require extensive rig up times. According to Otto Jaschke, Expro’s product line manager for North Amer-

ica, with these units performing well testing, “The rig up and rig down time is reduced radically, because all the different components that are required to perform a flowback or a well test, with the exception of just one or two things, are all inside that unit. So you don’t have to go out with multiple pieces of kit and then connect them all with piping. Everything is in that one unit and is already made up and tested, so the rig up and rig down occurs very rapidly compared to the other scenario.” This also reduces the need for client provided well support. The mobile units are designed to save money and time, especially for exploratory wells—and the people at Expro are quite optimistic that their new units will one day be a common sight on the North Slope. www.akbizmag.com

The Design The mobile unit is a single trailer with a high pressure manifold, separator, data acquisition lab and utilities onboard, and is accompanied by a small pipework trailer that allows for an efficient rig up by minimizing the movement of large equipment and post rig up instrumentation checks. Additional items specific to a project, such as firestack, tanks, scrubbers or heaters, can be made available upon request. According to Jaschke, “If our clientele has specific desires in terms of what we provide that are not possible with the unit as they stand today, then they are designed such that very rapid simplistic retrofits would meet any client’s request that was reasonable at all. That was part of our design criteria.” According to its website, “Expro has operational bases across the world and has developed an unparalleled track record for delivering tailor-made solutions to meet the challenges faced by our customers.” With Alaska’s harsh conditions and hard-to-reach areas, it does indeed seem that the Arctic Trailer Mounted Well Test Package is tailor made for Alaska. One characteristic that makes these units particularly suited for Alaska’s conditions is that they provide a warm environment for the work to be performed. According to Jaschke, the units are “Arctic enclosed, which is to say that the vast majority of any work that a human being would be doing would be inside in an enclosed, contained environment that is insulated from the outside. So they are able to work in very comfortable conditions—they don’t have to go in and out to perform the work.” Since the units are trailer-mounted, there are some limitations to their use: Naturally, they can only be used for onshore operations that are relatively easily accessible by road. “They are light enough that they are substantially under the minimum ice road weight limit,” Jaschke says. “As long as you have a road to take them to where they need to be then you can get them there.” But as Jaschke warns, you can’t go off-roading in them. Despite this limitation, they are more than ideal for certain scenarios: for companies that have “repetitive work,” that is, multiple wells to test that would rewww.akbizmag.com

Expro’s Arctic Mobile Well Test Units were unveiled at an event at Anchorage’s Dena’ina Center in December. Photo by Mari Gallion

DELIVERING EXCELLENCE

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Alyeska has safely and successfully moved more than 16 billion barrels of oil through the Trans Alaska Pipeline System. It’s an accomplishment that is not only meaningful to our employees, but to all Alaskans. We look to the future with continued confidence and commitment.

alyeska-pipe.com May 2013 | Alaska Business Monthly

quire several rig ups and rig downs; and in situations where the client wants or needs to have a smaller footprint at their site, such as the Oooguruk Drill Site. In such a situation, Jaschke says, this unit would be of interest because everything that is needed is all in one place, rather than scattered around the site. Two of the three units are currently being used year-round on the North Slope, and Jaschke surmises that all three units will be busy with work on the North Slope within a year.

A Culture of Quality Expro provides all the staff to operate the units, which makes for an easy inand-out service. “We say to the client, please make it clear to us exactly what you want us to do on your site,” Jaschke says. “Then we make a proposal of what, if anything else, might be needed in addition to the unit, (such as) how many people to safely conduct the operation. We’ll give them a quote and then we’re off and running. Upon completion of the job, we break down and we give the client the answer product, which is the information about the flow of their well.” In order to fulfill Jaschke’s expectation that all three of the current units will have year-round production mode work on the North Slope, the units need to be staffed with qualified and committed individuals, preferably Alaska residents, who are mechanically or electrically inclined. “Well testing is a bit like being a fireman,” Jaschke says. “When the alarm sounds and it’s go-time, we suit up and we’re down the pole, so to speak.” With the units being on-site year-round, they will naturally have a rotating staff so the company’s valued employees will enjoy a balance of work and life—and it is easier to respond quickly to the clients’ needs with a staff that lives instate rather than the Lower 48. The top tier of these employees will have experience in well testing, or will have degrees in engineering or petroleum technology. However, Expro will be seeking trainable staff for various duties. According to Jaschke, Expro is particularly fond of hiring ex-military. “They have a knowledge and respect for the chain of command, are well-mannered and understand the necessity of getting the job done,” he says. 72

Alaska Business Monthly | May 2013

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The Arctic Mobile Well Test Unit can be transported from site to site. Photo courtesy of Expro

“We prefer to promote from within,” Jaschke says, “because we put a heavy value on training and safety.” Exactly what these employees do can be explained in four steps: First, they contain the well. Second, they separate the well’s eﬄuent into its component parts: oil, gas and water, while removing the solids. The third step is to measure the flow rate of those component parts, taking samples of what’s flowing so that a pressure volume temperature analysis can be performed. Finally, the team has to dispose of these component parts in an environmentally responsible manner. The answer product, that which the client seeks, is the data from these tests. “A lot of people have to be doing the right thing at the right time for all of this to happen,” Jaschke says, stressing the importance of committed, safe and well-trained employees as part of Expro’s corporate culture. “At Expro, we also offer engineering support services. So we can take that data and give the client the only opinion they choose to seek, if they are a smaller client—or a very special second opinion if they are a larger company.” Whether more similar units will be built is of course driven by the market, but Expro is ready to make sure that these or any future units will be exactly what the client wants. “We see the units to be the technology of today,” Jaschke says. “The way they are designed, as tomorrow’s technology evolves, those units will evolve in like fashion.”  Mari Gallion is Associate Editor at Alaska Business Monthly. www.akbizmag.com

Alaska Energy

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alaska.bp.com May 2013 | Alaska Business Monthly

special section

Oil & Gas

Deploying a DASAR from the deck of the R/V Norseman II.

Royal Dutch Shell’s Bioacoustics Program: A Whale of a Study Documenting effects on marine animals from offshore operations in Beaufort and Chukchi seas By Vanessa Orr

ccording to a 2008 study by the U.S. Geological Survey, approximately 90 billion barrels of recoverable oil and one-third of the world’s natural gas may be found in the Arctic. With estimates like this, it is no wonder that the oil and gas industry has been increasing its activities and investment in this remote region at a very rapid pace. However, as interest in the area grows, so does the concern for its fragile ecosystem. In addition to the need to protect a diverse number of marine mammals ranging from bowhead whales to harbor 74

Alaska Business Monthly | May 2013

porpoises to Pacific walruses and spotted seals, it is also imperative that exploration and drilling activities not adversely affect the In~upiat and Siberian Yupik Eskimos who depend on these species to support their subsistence lifestyles. To this end, Royal Dutch Shell has implemented one of the most comprehensive marine mammal monitoring and mitigation programs ever attempted, unmatched in its scope and its mix of different technologies. The program, which is taking place in both the Beaufort and Chukchi seas, is designed to

collect baseline information on the distribution of marine mammals and to help the industry understand the cumulative impacts of operations conducted in the region by multiple operators. Data collected also allows the industry to mitigate impacts in real time. “Through this program, we are gaining a lot of very useful insights into the details of sounds generated by industry activities,” explains Michael Macrander, Shell Alaska environmental lead. “A pleasant surprise that we found this year is that active drilling itself is pretty quiet relative www.akbizmag.com

Preparing a DASAR prior to deployment.

to other things; however, some things that we had not thought of as loud were a bit louder than originally thought.” According to Macrander, this information is used to promote dialog within the industry and with local communities so that oil and gas companies can better target their activities. “It shows the industry what to focus on in terms of mitigation measures; for example, it doesn’t make sense to invest in quieting technologies for drilling if that doesn’t provide the biggest payoff,” he explains. “It also allows the industry to finetune mitigation measures with respect to those who live the subsistence culture,” Macrander continues. “We can address their concerns about noise and what they believe needs to be quieter. These informed discussions can help us better focus our efforts.”

Beneficial Stewardship According to Christopher W. Clark, director of the bioacoustics research program at Cornell University, who has been actively involved in charting bowhead whale migration in the Arctic since the 1980s, this increased stewardship of the environment is beneficial to everyone involved. “In earlier years, it was sort of like the Wild West in that the search for hydrocarbons and resources drove everything, as opposed to gaining a better understanding of what the impacts of these activities were on the health of the Arctic ecosystem,” he says. “Now, there is a consortium of industry people trying to get answers based on the science of the Arctic. They are using the same world-class standards that they use in business planning, technology and risk assessment when looking at questions of environmental impact.” According to Clark, the benefits of this scientific data may extend not only to the Arctic, but beyond Alaska’s shores. “It’s a phenomenal piece of work; the kind of work that opens up a whole new vista into the dynamics of the Arctic Ocean,” he says. “Things in the Arctic are changing so fast; faster than we can measure. In the last 13 or 14 years, there has been a huge increase in industry interest and investment in exploring for and extracting hydrocarbon resources. And we need to know what it means to have an increase in the background noise level by 100-fold, or what effect a certain number of decibels has on aniwww.akbizmag.com

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mals over a certain period of time. This study can not only determine what this means for life in the Arctic, but in other places like the Gulf of Mexico. What are the potential risks imposed by the things that humans do?”

Three-Pronged Approach Scientists are taking a three-pronged approach to accumulate the most accurate data. Information is gathered from seismic source vessels and other support vessels by teams of marine mammal observers that include both biologists and Inupiat personnel who perform roundthe-clock visual monitoring. There are also aerial overflights that document the species and number of marine mammals as well as record environmental observations such as cloud cover, wind speed and outside air temperature.

The last leg of the study is the acoustic portion. In the Beaufort Sea, directional autonomous seafloor acoustic recorders are used to triangulate on bowhead whale calls specifically by giving bearings to bowhead vocalizations; the location of the vocalizations is computed when the same vocalization is detected by multiple DASARs in the array. This information is then used to create maps that provide animated pictures of how the whales are moving during the fall migration. In the Chukchi Sea, Shell and its collaborators have been deploying a broad network of seafloor recorders since 2006. This array is focused more broadly than the DASARs in the Beaufort Sea to detect and collect distribution and area usage data on multiple species including bowhead whales, beluga whales, Pacific walrus and bearded seals. Deploying a DASAR near the ice edge in the Beaufort Sea. © Sheyna Wisdom, courtesy of Olgoonik Fairweather LLC

Alaska Business Monthly | May 2013

This three-pronged approach is important for a number of reasons. “The three legs of the stool are all important because multiple sources of information help to fill in the gaps; you’re not relying on just one set of senses,” says Macrander. “Each approach has its own strengths and weaknesses. In acoustics, for example, one weakness is that sounds can be masked. If there’s another noise source, like a big storm or industry activity, it can make marine mammal vocalizations harder to hear, which changes the baseline. Similarly, if there is glare on the water or a sea state comes up, it is harder for observers to see what is going on.”

Changing Times, Changing Technology While this particular bioacoustics study began in 2006, it was built on years of scientific experience in the Arctic. And as times have changed, so has the technology. “Hydrophones, which are basically microphones working underwater, have been around since the Second World War,” says Macrander. “The data capture format used to be tape, then in the mid-2000s, investigators started to use hard drives, but we had issues with them crashing. Now we use something similar to a whole bunch of thumb drives, which are better because there are less moving parts.” Instead of having the data analyzed by individual scientists, Shell also chose to invest heavily in computer-assisted analysis and call detection to analyze the up to 15 terabytes of data collected each year. To date, Shell has collected between 100 and 150 terabytes of acoustic data, which are being shared with the Alaska Ocean Observing System. “Thus far, the environmental studies data is an approximately $72 million dataset that will now be available to the broader scientific community,” explains Molly McCammon, executive director, AOOS. “Anyone who would like access to the data can request it, and AOOS will grant them access. This way, we can track who has interest in the data and provide assistance as needed.” AOOS is currently working with the National Oceanic and Atmospheric Administration’s National Oceanographic Data Center to establish formal procedures for additional federal archiving. “With this environmental science data, NOAA will be better equipped to provide www.akbizmag.com

energy companies, mariners and Alaskan coastal communities with an enhanced scientific foundation to better support effective decisions and safe economic opportunities in a fragile and rapidly changing area,” says Scott Smullen, NOAA spokesperson. “This data will better allow NOAA to model physical oceanographic processes that influence sea ice formation and retreat, as well as how ocean temperature and mixing can force changes in the food web between predators and prey in the marine environment.”

Differences in Focus Shell’s ongoing bioacoustics program was initiated in 2006 and became yearround in 2007. In the Beaufort Sea, the study is predominantly run by Shell, the primary leaseholder in the area. In the Chukchi Sea, the study is led by Shell in collaboration with ConocoPhillips, GXT (now ION) and Statoil, among others. Different vendors and contractors are employed in each area with a subtly different focus of investigation. “In the Beaufort Sea, our primary focus is on the bowhead whale and the fall bowhead migration,” explains Macrander. “In late August, September and October, a parade of approximately 10,000 to 13,000 bowhead whales migrate westward at distances 15 to 20 miles offshore, drawing subsistence hunters from Kaktovik, Nuiqsut and Barrow. There is concern that industrial activities may displace these whales or change their migration route, making them less available to subsistence hunters. Investigating this possibility is a primary focus of our Beaufort study program.” In the Chukchi Sea, the study includes bowhead whales but is also focused on the other marine mammal species that occur there, including Pacific walruses, beluga whales and four different types of seals. “In the Chukchi, there are more species in a larger area, so we are less focused on the migration pattern,” says Macrander. “We are looking for a more broad scale understanding of where these animals are, the ‘sound’ footprint of the industry, and how the animals are reacting to that.” 

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

Vanessa Orr is the former editor of the Capital City Weekly in Juneau. www.akbizmag.com

May 2013 | Alaska Business Monthly

special section

Oil & Gas

Alyeska’s Pipeline Overhaul A troublesome project to upgrade pump stations lumbers toward ﬁnish line By Wesley Loy An aerial view of Pump Station 1 in the dim winter light of the North Slope. Photo courtesy of Alaska Department of Environmental Conservation

or several years now, the owners of the trans-Alaska oil pipeline have been working to transform the state’s most valuable asset. Known as “strategic reconfiguration,” the project involves rebuilding the pipeline’s main pump stations to make them more efficient and less labor-intensive. It’s been an incredible challenge for Alyeska Pipeline Service Co., the Anchorage-based oil company consortium that runs the 800-mile line. That’s because the work had to proceed while keeping millions of barrels of North Slope crude oil flowing. “It’s like trying to repair the engine while you’re flying the plane,” says Mike Joynor, Alyeska’s senior vice president of operations and maintenance. While major elements of the project are now done, strategic reconfiguration has been a troublesome undertaking. 78

Alaska Business Monthly | May 2013

The project has cost far more, than had been anticipated; and taken far longer, than the and the lead contractor failed pipeline owners ever intended. to deliver the leadership perThe state, as part of a regusonnel and engineering stafflatory fight with the owners, ing it had promised. The reargues Alyeska simply went sult, simply stated, was that about strategic reconfigurathe project cost more than tion the wrong way, and that originally projected and took the project “remains a work longer to complete.” Mike Joynor in progress and is not schedPipeline is Lifeline uled to be completed until December 2014, at the earliest.” It’s hard to overstate the importance of Alyeska points out that strategic the pipeline to Alaska’s economy. Since startup on June 20, 1977, more reconfiguration is the largest project along the pipeline since its original than 16 billion barrels of oil have flowed construction in the 1970s. down the line, enriching the state far “That is not to say that everything beyond what gold or fish or furs ever went as planned,” the company says. did. And the pipeline figures to carry “Among other things, labor and ma- prosperity for some time yet. The owners include the major oil proterials shortages led to delays and escalating costs; a significantly greater ducers on the North Slope: ConocoPhilamount of work needed to be done in lips, BP and ExxonMobil. Chevron also a ‘brownfield’ operating environment owns a small share. www.akbizmag.com

Original pipeline construction began in April 1974 and was completed in June 1977 at a cost of about $8 billion. At the time, it was the largest privately funded construction project in history. Even today, the pipeline stands as a marvel of engineering. The pipe, 48 inches in diameter, crosses three mountain ranges, dozens of rivers and streams, and lands that can shake violently with seismic activity. Nearly a dozen pump stations were built along the line to push the crude toward the tanker port at Valdez. Over the years, several pump stations have been taken out of service as the volume of oil has declined. Throughput peaked at more than 2 million barrels per day in 1988, but today averages under 600,000 barrels. By the late 1990s, Alyeska saw issues it needed to address, such as aging equipment, the declining throughput and rising per-barrel costs. These costs were “among the highest in the industry.”

Retool and Automate One of the biggest opportunities for cost cutting was operations staffing.

Many North American pipelines operate by remote control, but the pump stations on the Alaska pipeline required staffing around the clock. Most stations needed from 40 to 130 people. In early 2004, the pipeline owners sanctioned, or approved, the $242 million strategic reconfiguration project. The plan involved retooling and automating pump stations 1, 3, 4 and 9. The “legacy” equipment installed in the pump stations during original construction would be replaced. New, smaller pumps driven by electric motors would be installed. Electricity was to be generated with new turbine generators running on natural gas. The exception would be Pump Station 9, near Delta Junction. That station could draw power from Golden Valley Electric Association grid. The new strategic reconfiguration equipment would be modular and expandable, in case North Slope oil production increased. And the equipment would be designed for remote operation, meaning attended local control rooms at each pump station would no longer be necessary. Alyeska’s main pipeline operations

Strategic Reconfiguration Timeline The project to overhaul pump stations along the 800-mile transAlaska OIL pipeline is far behind schedule, and way over budget. ■ June 20, 1977—Pipeline begins service ■ Early 2004—Owners sanction, or approve, $242 million “strategic reconfiguration” project ■ Feb. 9, 2007—First forward flow of oil through reconfigured Pump Station 9 ■ Dec. 11, 2007—First forward flow of oil through reconfigured Pump Station 3 ■ May 21, 2009—First forward flow of oil through reconfigured Pump Station 4 ■ March 2011—Strategic reconfiguration expenditures exceed $700 million ■ Late 2014—Project scheduled to end with completed Pump Station 1 overhaul SOURCE: Filings with the Federal Energy Regulatory Commission and the Regulatory Commission of Alaska

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Owners Pressed On Strategic reconfiguration, the owners felt, could tame the “ever-escalating costs” of operation, and position the pipeline for many more years of service. The project, however, did not play out as hoped. The budget swelled, and the schedule slipped. Documents filed with state and federal pipeline regulators reveal extensive internal debate within Alyeska, and among the pipeline owners, about the course of the project. The documents are the product of an intense battle over tariffs, or rates, the owners charge to move oil on the pipeline. The owners want to roll their strategic reconfiguration spending into their rate bases. But the state is seeking to disallow some portion of these costs, as higher tariffs could have the effect of reducing its oil tax and royalty collections by hundreds of millions of dollars. The state, in filings with the Federal Energy Regulatory Commission and the Regulatory Commission of Alaska,

Photo courtesy of Alyeska Pipeline Service Co.

center is housed in a building on Government Hill in downtown Anchorage.

Alyeska contractors fabricate modules to house new equipment at pipeline pump stations.

argues much of the strategic reconfiguration spending was “not reasonable, it was not necessary, it was not justified, and it was imprudent.”

The state was able to obtain internal company documents, such as email, showing the trouble Alyeska and the owners experienced with the project.

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One BP employee, in a late 2006 email, urged the owners to stop and regroup. The project, he wrote, would qualify as a “train wreck” with respect to cost and schedule performance. The owners ultimately elected to press on with strategic reconfiguration. A major milestone came on Feb. 9, 2007, when the first forward flow of oil through the reconfigured Pump Station 9 was achieved. By the end of 2007, the upgraded Pump Station 3 also was moving oil. Pump Station 4 came online in May 2009. Now only Pump Station 1, at Prudhoe Bay, remains to be overhauled. Work there is well under way. New turbine generators, electric motors and pumps will be installed at Pump Station 1, just as with stations 3 and 4. The state, in a December 2012 filing with FERC and the RCA, says “the original $242 million projected budget has ballooned to approximately $786 million.”

Alyeska’s strategic reconﬁguration project is the largest undertaking on the trans-Alaska oil pipeline since original construction in the 1970s. Photo courtesy of Alyeska Pipeline Service Co.

A Remarkable Achievement The owners, in their own filings, agree that expenditures have exceeded $700 million. They say they elected to approve supplemental funding because strategic reconfiguration “continued to be a viable and prudent project even with a cost and timeline considerably less favorable than originally projected.” Alyeska’s Joynor has been at pipeline work his whole career. From his cowboy accent, it’s no surprise to learn he was born in Beaumont, Texas. “I’ve been moving oil for 37 years,” Joynor says. “It’s the only thing I know how to do.” Strategic reconfiguration has been a daunting project, he acknowledges. But he believes it has been worthwhile. While upgraded pump stations continue to be manned to some degree, dozens of pump station operator positions have been eliminated, Joynor says. He believes the pump station upgrades have been a remarkable achievement considering the complex work has been done without serious mishaps, in remote locations, all while keeping the oil flowing.  Journalist Wesley Loy lives in Anchorage. www.akbizmag.com

May 2013 | Alaska Business Monthly

BusinessPROFILE

Olgoonik Corporation

S A Wainwright whaling crew returning from a successful spring hunt.

Located along the coast of the Chukchi Sea, Wainwright, Alaska is the home of Olgoonik Corporation.

houts of Aġvaaq aŋŋuuq! fill the frosty air as villagers waiting on the shore-fast ice catch sight of their whaling crews returning from open water. The small boats move slowly under the drag of a spring catch, a 30foot bowhead whale. Working together, the Wainwright community extracts from the Chukchi Sea what they need to feed and fuel their village and their culture. “The way we do things has had to change with the times,” said Edgar Kagak, as aluminum boats are pulled from the water, “but not why we do them.” Like his father and grandfather, Edgar is a member of a whaling crew, but he also serves on the board of Wainwright’s village corporation. “In the Arctic, we have to take advantage of every opportunity and resource available— and our Corporation is a valuable community resource,” said Edgar.

Olgoonik Corporation: A Community Resource

Providing jobs and shareholder opportunities is a key element of Olgoonik Corporation’s mission.

Near the village, Olgoonik performs demolition and remediation work at a U. S. Air Force abandoned military radar site. P A I D

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

The 1971 Alaska Native Claims Settlement Act, formation of regional and village corporations, and subsequent federal contracting preferences were critical in helping Alaska Natives find new ways to adapt to a cash-based economy and compete in western business. Under ANCSA, Wainwright’s village corporation was established in 1973. Olgoonik Corporation (ooh-lu-goo-nik) is owned by more than 1,100 Native shareholders, almost half of whom live in the village. The corporation’s Iñupiat board of directors is guided by a two-fold company mission: gain financial success in order to create shareholder opportunity, and nurture and protect the community and its heritage. An Advantage: Government Contracting Olgoonik formed its first for-profit sub-

sidiaries in 1997. Its participation in the U.S. Small Business Administration’s 8(a) Program was crucial to its early efforts to access the competitive government contracting market. Through high-quality operations, strategic planning and internal investments, Olgoonik established a stable portfolio of assets and capabilities. Today, Olgoonik’s mature, successful companies deliver construction, logistics, environmental, oilfield, and security services around the world. The corporation is proud of its record of providing first-rate service to federal customers as well as to state and commercial clients in Alaska. Alaska’s Oilfield Industry: A Commercial Opportunity In response to increasing oil and gas industry activity in the Arctic, Olgoonik expanded its capabilities with a full range of oilfield support services. “We will continue to invest in our commercial capabilities because as our interaction with industry increases, so does our access to new profit sources and new shareholder opportunities through jobs and training, which are key elements of our mission,” said Howard Patkotak, board president and Wainwright resident. Olgoonik’s commercial companies provide essential services and products for exploration and production, including marine, air and land logistics; environmental compliance; civil engineering and construction; downhole tools and consulting; and management of marine science studies in the Chukchi and Beaufort Seas. Joint ventures with Alaska experts Lynden and Fairweather further expand Olgoonik’s oilfield service options to meet a wide variety of support requirements.

BusinessPROFILE

“The way we do things has had to change with the times, but not why we do them.” — Edgar Kagak

Corporation and Community Wainwright sits on a narrow peninsula separating it from the Chukchi Sea. The 175,000 acres of Olgoonik-owned land surrounding the village is a precious community resource with immeasurable historical and subsistence significance. The corporation carefully regulates land use through policies and permit requirements. “While the land and waters provide many traditional foods, we must also rely on local jobs in addition to subsistence,” stated Chairman Hugh Patkotak, Sr. Principal employers in the village are the corporation and the North Slope Borough with Olgoonik subsidiaries training and hiring residents for local projects. Olgoonik also manages four businesses in Wainwright. “Our households are transitioning between the old and the new…holding strong to traditional Iñupiat values while acknowledging the need for more jobs in the village,” Chairman Patkotak said. Supporting Responsible Resource Development Wainwright is located inside the National Petroleum Reserve-Alaska and is the closest community to the offshore leases in the Chukchi Sea. To date, Olgoonik has invested millions of dollars developing its oilfield support services, upgrading village infrastructure, purchasing heavy machinery and training residents in job categories required by oilfield operations. It is also finalizing construction of a full-service support base,

which is located outside of the village to minimize impact on the community. “We understand that industry activity in the area will bring significant challenges, but we believe that our traditional way of life can be balanced with responsible development,” said Chairman Patkotak. Olgoonik works closely with Wainwright City and Tribal Councils to develop a unified approach to industry contact, development opportunities and environmental protection. “Together with village leadership, the Board will take every action necessary to safeguard the environment and ensure resources are developed in a way that reflects and preserves our Iñupiat values,” stated Chairman Patkotak.

Empowered by Change As a village corporation, Olgoonik has the unique task of preserving balance between Wainwright’s cultural well-being and economic objectives. Diversifying government contracting with commercial services was an important part of Olgoonik’s plan for growth. By molding change to its advantage, the corporation is positioned to explore emerging opportunities, including the benefits of safe resource development, while it maintains a strong position on environmental protection. As Edgar Kagak said, “The way we do things has had to change with the times, but not why do them.” Olgoonik’s “why,” its vision, has remained constant for the past 40 years: to foster sustainable growth and build a corporation that will empower its community and future generations.

3201 C Street, Suite 700 Anchorage, AK 99503 Phone: 907.562.8728 Web: www.olgoonik.com

Road construction and other infrastructure improvements in the village serve Wainwright residents as well as Olgoonik’s commercial customers.

Olgoonik supports clients with onshore and offshore services, such as crew changes in the Chukchi Sea.

One of Olgoonik’s personnel camps in the village—a valuable addition to its industry support capabilities.

Olgoonik’s mission and vision focus on building a strong shareholder-managed company for future generations.

special section

Oil & Gas

Photo courtesy of ENSTAR Natural Gas

The new Cook Inlet Natural Gas Storage Alaska facility in Kenai is now operating to store surplus natural gas in summer for peak demand periods in winter, when gas supplies are low. CINGSA is critical new infrastructure adding security to Southcentral Alaska’s energy supply.

Cook Inlet Gas Uncertainty in supply and demand By Mike Bradner

here are concerns about natural gas supply in Southcentral Alaska. Gas fields in the region, discovered in the 1960s and 1970s, are being depleted. Southcentral utilities have estimated that annual gas supply may fall short of demand by 2014 or 2015 and are working on plans to import liquefied natural gas or compressed natural gas as a contingency. Meanwhile, citing the gas shortage, ConocoPhillips has opted not to renew the liquefied natural gas export license for the company’s LNG plant at Nikiski, near Kenai. The North Cook Inlet gas field, which supplied the plant, still operates and now supplies the utilities. The plant is mothballed; however, it is being maintained in a state to restart

Alaska Business Monthly | May 2013

“Cook Inlet is a maturing oil and gas basin. While there are legitimate concerns about contractual shortfalls of natural gas in 2014 and 2015, there are still large volumes of gas to be discovered and developed in small to intermediate-size ﬁ elds.” —Dan Sullivan Commissioner, Department of Natural Resources www.akbizmag.com

if there are new gas discoveries or the plant can be used in some other way, such as an LNG import facility. Despite the apparent shortages, the state of Alaska believes there are substantial undiscovered gas resources in Cook Inlet. Department of Natural Resources Commissioner Dan Sullivan (no relation to Anchorage Mayor Dan Sullivan) acknowledges the utilities’ concerns, but says that with additional drilling and investment in the existing fields, there could be new gas reserves and production. “Cook Inlet is a maturing oil and gas basin. While there are legitimate concerns about contractual shortfalls of natural gas in 2014 and 2015, there are still large volumes of gas to be discovered and developed in small to intermediate-size fields,” Sullivan told Anchorage Mayor Dan Sullivan’s Energy Task Force March 14.

Uncertainties There are uncertainties, however. “Cook Inlet is currently witnessing a transition from larger producers like Chevron and Marathon to mid-size and smaller companies, like Hilcorp, Apache and NordAq,” the commissioner said. “Generally, we see this as a positive trend, but transitions can slow actions and increase uncertainty,” particularly in a small market like Cook Inlet where there are a number of stakeholders, including utilities, producers, explorers, regulators and the state and federal governments, Sullivan said. In their studies of gas remaining in the producing fields, the utilities have used a very conservative method, a “decline curve analysis.” This is appropriate for utilities, due to the legal requirement to assure their customers of service. “Utilities have a laser focus on the volume of gas available for contracts,” to supply gas, the commissioner said. However, to get a bigger picture the DNR can use other methods, such as a “material balance analysis,” which the DNR used in addition to decline curve analysis; the agency estimates that there could be as much as 32 percent more gas in the existing fields than is assumed by the utilities in their study. The state now estimates there is 1.1 trillion cubic feet of gas in remainwww.akbizmag.com

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Alaska Business Monthly | May 2013

ing producible reserves in 28 fields in Cook Inlet. Using the material balance method of analysis, the Division of Oil and Gas estimates there is 355 billion cubic feet of undeveloped gas resources in three large fields. Th is includes 233 billion cubic feet of undeveloped gas in the Beluga gas field, on the west side of Cook Inlet; 72 billion cubic feet in the Trading Bay Unit and Grayling gas sands, an offshore field in the Inlet; and 50 billion cubic feet in the North Cook Inlet field, also an offshore field.

Unavailable Data Lowers Estimates These estimates of undeveloped resources are undoubtedly low because two large Cook Inlet gas fields were left out of this analysis by the division: the Kenai gas field, one of the largest in Southcentral Alaska, and the Ninilchik gas field. Both are on the Kenai Peninsula. They were not included because the division did not have the same amount of data that was available for the three fields that were included. There are, in addition, other resources in all the fields that are “behind the pipe,” in geologically isolated portions of the reservoirs that cannot be observed using either the decline curve or material balance analyses.

That is because those methods of analysis are based on production data, but non-producing reservoir segments that can be inferred in various ways are not included. Tapping those additional reserves seen in the material balance analysis or that exist behind the pipe will require additional drilling and investment in the fields, and Commissioner Sullivan acknowledges that there is not enough new drilling in the Inlet. The utilities’ conservative decline curve analysis assumes little new drilling and estimates that to meet the projected gas supply gap the number of new producing wells will have to double from what is currently being drilled.

Investment Opportunity A critical question is whether that investment will be made. There is some reason for optimism that more investments are coming because of the entry of Hilcorp LLC into Cook Inlet and the completion, effective Jan. 31, of former gas-producing wells owned by Marathon Oil Co. Hilcorp had purchased Chevon Corp. producing properties in 2012 but most of those, such as the offshore producing platforms in Cook Inlet, are dedicated to oil. Taking over ownership of the Marathon gas fields now gives Hilcorp conwww.akbizmag.com

An aerial overview of the entire facility straight across Cook Inlet from Redoubt volcano earlier this year. (Inset: The 5.5 acre well pad and ﬁ ve storage wells are on state land adjacent to the main CINGSA facility.)

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May 2013 | Alaska Business Monthly

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r EQUIPMENT RENTAL/PROJECT SUPPORT COMPANY r SUPPORTING THE NORTH SLOPE & COOK INLET r HEATERS, GENERATORS, VEHICLES, MANLIFTS, LIGHT PLANTS r CAMPS & CAMP SERVICES r FULL PROJECT LOGISTICS SERVICES & STAFFING

Magtec Alaska, LLC (907) 394-6350 Roger Wilson, Prudhoe Bay rwilson@magtecalaska.com Skeeter Creighton, Kenai (907) 394-6305 skeeter@magtecalaska.com

trol of about 70 percent of the Cook Inlet gas production, and the company has a reputation for aggressively rejuvenating old wells and fields, based on a long record in the U.S. Gulf States. Since taking over in February, Hilcorp has in fact reworked and also simply “turned on” many gas wells that Marathon had not worked with— or had shut off—in the fi nal year of its ownership. Th is move by Hilcorp in February quickly made more gas available to utilities like Enstar Natural Gas Co., which was very concerned about its gas supply during cold weather in December. Hilcorp won’t comment on how much new gas it is now producing or how much gas is remaining in the Marathon fields it acquired. The company says it must do its own assessment of the remaining reserves. However, the company’s actions, for example its decision to bring two new land rigs to Cook Inlet, one of which will be working on gas wells, signals that it intends to invest. Hilcorp is also bringing two smaller “workover” rigs to rework old wells on the offshore Inlet platforms, but much of this is aimed at increasing oil production. Apache Corp., another new company to the region, has an aggressive long-term plan and has drilled its first exploration well. While Apache is focused mainly on oil it will likely find some gas when it finds oil—and if there are gas prospects near its areas of interest, Apache may drill those, the company has said. Explorers like NordAq and Furie Operating Alaska, two small independents, have reported gas discoveries, although it’s too early to know the amount or when or if it might be produced. Buccaneer Energy, another independent, is developing new gas production from discoveries on the Kenai Peninsula, although the quantities are small.

Utilities Plan to Import Gas Despite this encouragement, the utilities say there is not yet enough information on committed drilling and signed new gas contracts to allay their concerns. For example, there are concerns that much of Hilcorp’s investment is aimed at new oil production rather 88

Alaska Business Monthly | May 2013

www.akbizmag.com

than gas. Cook Inlet region gas prices are among the highest in the nation, at $6 to $8 per thousand cubic feet, but crude oil prices are higher on an equivalent energy-value basis, so investing in oil is more profitable. Until there is more assurance, planning for the LNG or compressed natural gas imports is continuing, the utilities say. Despite the current apparent shortage of gas, the major challenge Cook Inlet producers and explorers have is the nature of the small regional gas market, which consists of Enstar and the electric utilities now that the ConocoPhillips plant is no longer exporting gas. This means that if an explorer is lucky and finds a lot of gas, there may not be a market for it, ironically. Openings for the utilities come only at certain intervals. A new industrial gas customer, however, may be the Donlin Creek gold mine that is planned to be built in the mid-Kuskokwim River region west of Anchorage. Donlin Gold, the joint-venture that is developing the mine, is planning a 14-inch gas pipeline from Cook Inlet to Donlin Gold that would be built to supply energy to the mine if it is built. Donlin Gold could be a significant industrial customer that would require a steady, year-round supply. While it does not require new gas supply, the Cook Inlet Natural Gas Storage Alaska project now in operation near Kenai is a significant addition to the local energy infrastructure. Previously the utilities had to purchase more gas in the winter when demand peaked, but summer demand was low, leaving producers with huge seasonal swings in demand. The new gas storage facility allows the utilities to purchase gas year-round, storing the gas in summer and withdrawing it to meet peak demands in winter. Because the utilities that are contracted to store gas in CINGSA can now buy in the summer, producers are able to even out their production and not have to throttle wells back in summer, which can damage the wells. ď &#x2019; Mike Bradner is publisher of the Alaska Legislative Digest. www.akbizmag.com

May 2013 | Alaska Business Monthly

special section

Oil & Gas

Alaska Oil Policy Understanding investment By Bradford G. Keithley

laskans heard the word “investment” a great deal during the recent legislative session. They likely will hear more of the word in the months and years ahead as the state continues efforts to bring increased investment to the North Slope, and others evaluate whether those efforts are successful. In that context I thought it would be useful to write a column on oil investment.

The Chart To do that, I have borrowed a chart from a company called Petoro. Those who read my January column (“Alaska Oil Policy: Achieving Alignment,” Alaska Business Monthly, January 2013), will recognize Petoro as the arm of the Norwegian government engaged in co-investment with industry in the development of that country’s oil and gas resources. I chose to use a chart from Petoro because it is viewed largely as a neutral entity, not likely to tilt the information playing field one direction or another. The chart shows the relationship over time between investment and production in the development of a typical oil field. The bars are investment levels, by year. The higher the bar, the greater the investment made in that year. The blue line is production level, again by year. The higher the line, the greater the production level for that year. The bars and production line go out 26 years, a useful proxy for a significantly sized field. The bump in the line beginning about the 18th year represents the application of improved oil recovery (IOR) methods that often are employed in mature and aging fields. Depending on the characteristics of the field, the application of such methods can boost both then-current production levels and the ultimate recovery of oil from the field. 90

Alaska Business Monthly | May 2013

Chart courtesy of Petoro

As also shown on the chart, however, such increased production and recovery rates require added investment. The substantial increases in investment levels shown in years 17, 18 and 19 are directly tied to the increased production and recovery rates depicted by the bump in the line. Those increases would not occur but for the increase in investment. As complete as the chart is, there are two additional events that are useful to visualize to help understand oil investment in Alaska. One comes before this chart begins. A producer must find a field to produce before bringing it into development. This chart only depicts the development phase. There are several years before this chart begins that are involved in the exploration phase. All that occurs in those earlier years is investment; there is no production. The second is in the later years of the development phase. This chart shows one cycle of improved recovery. Actually, some major fields, like Prudhoe, go through a number of such cycles as techniques and technology are developed that offer the potential to increase ultimate recovery rates even further. Indeed, Prudhoe is something of the global poster child for such efforts.

When first discovered, the owners estimated that they ultimately would recover 40 percent of the oil contained in the Prudhoe Bay Field. With the application of the initial set of improved recovery techniques, the estimated recovery rate grew to 50 percent. As the owners came to understand the field better—and continued to make investments—they have developed additional techniques, equipment and tools which lead them now to estimate ultimately recovering 60 percent of the oil contained in the Prudhoe Bay field. And there remain other ideas which, with timely investment, may push the ultimate recovery rate even higher. This chart helps in several ways to better understand oil investment in Alaska. The following will point out three.

Understanding the Importance of Predictable Tax Levels First, the chart helps explain why investors are focused on the predictability and certainty of tax and other so-called government take levels. Following the chart from the left it is clear that a producer commits a large part of the money required for a major project in the first few years. Most production—and revenue—come latwww.akbizmag.com

er. Despite the fact that it comes later, however, it is that anticipated revenue stream on which the investment is based in the first place. Generally speaking, the producer estimates the return it anticipates earning from the revenue stream, compares that with other opportunities, and then invests in those providing the best return. Because the revenue stream is still several years into the future at the time the investments are made, the investor must make projections about what the revenue stream will look like, and what deductions will apply. One of the factors in making that projection—indeed, often the largest factor other than the price of oil—is the amount the applicable governments will deduct from the stream in royalty, taxes and other assessments over the first 15 years or so of the project. In making that projection, the investor necessarily will assess the relative certainty of what the government take level will be over the period. Some countries provide for government take by contract, backed up with various arbitration provisions. Others essentially negotiate take levels on a case by case basis with the investor during its evaluation of the project and, while not set by contract, nevertheless respect the terms of the negotiated results once the investment is made. Alaska and others, on the other hand, set take levels in large part by statute, reserving the right to change the level during the life of the project. Projects where the government reserves the right to change the take level during the life of the project present special problems in projecting the level of the anticipated return. Usually, the investor will include a risk factor to account for the potential that the level of government take will increase during the life of the project. In areas where the government has demonstrated a propensity to exercise that ability, the investor usually will assume in its economics some upward change in government take levels during the term. That also is the case where the current take levels include a “sunset” or similar provision, automatically adjusting the levels in certain situations. Investors generally will be cautious and assume it is more likely that the events will occur than not. www.akbizmag.com

May 2013 | Alaska Business Monthly

The result is to put major, long-term investments in those areas, like Alaska, where the take levels may be changed at a competitive disadvantage. Even if the actual government take level at the time the investment is being evaluated is lower than competing alternatives, the project may still go unfunded if there is concern that government take levels may increase sometime during the life of the revenue stream.

The Difference between Long-Term and Short-Term Investment Second, the chart helps explain the difference between long-term and shortterm investment. Following the chart from the left, it is clear that the first set of investment, made in the early years of the project, is significant and produces a long revenue stream. On the other hand, the second set of investment, made in the later years for improved recovery, is smaller and produces a relatively short revenue stream. This difference between long-term and short-term investment is significant. Because they have a limited time horizon, short-term investment projects are subject to somewhat less risk than long-term projects. For example, in evaluating a shortterm project, the period over which an investor is required to project the anticipated level of government take is much more compact. Investors need to assess the likely level of government take only over a five to eight year period, roughly half that appropriate to a long-term investment. Because the likely outcomes tend to be more predictable over shorter periods, the risk factors associated with short-term projects usually are lower and enable those projects to compete better for capital than long-term projects in the same area. For this reason, Alaska tends to compete better for short-term investment than it does for long-term investment. Adoption of tax reform likely improves that position. Investors will assume that the changes will remain in place for some period of time. Even with tax reform, however, Alaska remains at a competitive disadvantage for long-term investment because 92

Alaska Business Monthly | May 2013

of continued uncertainty around its long-term tax structure. As the chart makes clear, the downside of shorter-term projects is that they involve much less investment, result in much lower production, and last over a much shorter time frame.

Why Capital Credits Seldom Work Well Third, the chart helps explain why tax credits tied to capital spending generally fail to encourage significant new oil investment, as happened under Alaska’s Clear and Equitable Share (ACES). In the oil industry, taxes usually are tied to production, once investors have income. Sometimes, as Alaska tried under ACES, the tax structure also will permit investors to reduce their taxes through credits tied to capital spending. The idea behind such credits is to encourage investors to pursue projects by reducing the effective cost of their investment. That approach seldom attracts major projects, however. As the chart demonstrates, capital spending on major oil projects usually occurs ahead of production. Investment is heavy at the front end, then tapers off as production begins to ramp up. As a result, tax credits tied to capital spending largely are only available early in the life of the project, before production—and thus, production taxes— begin. Unless the time period for which the tax credits can be used is extended, they largely expire before any taxable income occurs. Of course, some tax schemes permit the credits to be carried forward or, as ACES did for some taxpayers, permits the credits to be turned into cash payments to the investors. Even then, however, the use of tax credits seldom significantly help a major project. Even if carried forward, all that the tax credits do is reduce the effective tax rate of the project. The investor still pays taxes, but the rate is lower than the identified rate because the taxpayer is able to apply credits. But the resulting effective rate largely is unknowable at the front end of the project, when the decision whether to make the investments is made. That is because the production level—which generates the tax obligation—is uncer-

tain. Investors generally will have some estimate of the anticipated production level, but most investors believe, once they gain experience in a field, they likely will be able to increase production levels significantly. As the investor is successful in doing that, the benefit of the earlier tax credits, which is not tied to production, will diminish. As a result, few major investors are significantly incentivized to undertake a major project by capital tax credits. Instead, their decisions are driven much more by the levels of government take that will apply to production, once it begins.

Attracting Investment is not Rocket Science The characteristics that attract longterm investment to a region that otherwise has significant resource potential are not difficult to identify. Investors look for good returns, but as important is predictability of the factors that affect their returns. Major investments are rarely motivated by artificial tax measures designed to provide credits for specific types of investments. Those measures can be changed and seldom are significant enough to justify a long-term investment. Alaska is positioned to compete for short-term investment projects. Whether it is positioned to compete for long-term investment, however, will depend on whether investors are comfortable predicting that they will be able to earn competitive returns over an extended time horizon. Under Alaska’s current approach to establishing government take levels, that is a question that remains to be answered.  Bradford G. Keithley is a Partner and CoHead of the Oil & Gas Practice at Perkins Coie LLP. He maintains ofﬁces in both Anchorage and Washington, D.C., and is the publisher of the blog “Thoughts on Alaska Oil & Gas” bgkeithley.com. www.akbizmag.com

Oil & Gas special section

By Frank E. Baker

Drilling rig, winter, Prudhoe Bay. © BP

hen valves were opened to allow the first Prudhoe Bay crude oil to flow into the 800-mile-long trans-Alaska oil pipeline on the morning of June 20, 1977, everyone, including industry experts, didn’t expect that North America’s largest oil field would yield more than 9.6 billion barrels. Today, 35 years after startup, more than 12 billion barrels have been produced. This is about 53 percent of the estimated 22.6 billion barrels in place—and it’s believed up to 2 billion more barrels are recoverable. In cumulative production, the Prudhoe Bay field is now ranked No. 1 in the United States and 20th in the world. In technical terms, the 12 billion barrel figure includes only the Prudhoe Bay Ivishak production from the Initial Participating Area (IPA), and includes all liquids such as black oil, separator liquids and natural gas liquids. “The 12 billion barrels figure that we reached in October 2012 is consistent with the figures used initially to describe the original Prudhoe discovery and development,” says Scott Digert, BP Alaska’s reservoir management team lead. “It does not include the West End satellites (Aurora, Borealis, Orion and Polaris), nor does it include the GPB fields that come in through the Lisburne Production Center (LPC) such as Lisburne, Greater Point McIntyre Area, (GPMA) and Niakuk.”

Boosting Production Digert says that during the last three decades Prudhoe Bay has been a proving ground for oil field technology that has helped BP Alaska and other compawww.akbizmag.com

nies go beyond what was ever bility to refresh and mainthought possible in maxitain well stock. He says the mizing production from the company is also working with super-giant field. other working interest own“Advances in enhanced oil ers, contractors, suppliers and recovery (EOR) techniques with the State of Alaska to boosted our overall oil recovsustain the financial health of ery by about 3 billion barBP Alaska’s base oil business. rels,” says Digert. “Large-scale Scott Digert “This will be needed to eigas cycling, water flooding ther maximize oil recovery as around the periphery of the field, mis- we head into the next 35 years of procible gas injection (MI) and a technique duction, or to underpin future major called water-alternating gas (WAG) were gas sales,” he says. effectively used. Improved reservoir Fast Facts about the analysis and delineation; advanced drillPrudhoe Bay Field ing techniques, such as horizontal and multi-lateral drilling; and advanced well ■ Accounted for about 15 to 20 percent of America’s oil production completion methods, also made signififor almost three decades; but is less cant contributions.” than 10 percent today To date, more than 1,000 wells and sidetracks have been drilled in the IPA, ■ Because of Prudhoe Bay, there are now 24 separate oil ﬁelds producing and with seven drilling rigs currently on the North Slope operating, BP Alaska plans to sustain its active drilling and sidetrack pro- ■ Mostly because of Prudhoe Bay, Alaska’s Permanent Fund Savings Acgram in upcoming years. count balance is more than $42 billion “We’re now aggressively going after light oil in known accumulations,” says ■ According to the University of Alaska’s Institute for Social and Digert. “We are using advance seismic Economic Research (ISER), Alaska’s imaging, reservoir simulation, and expetroleum wealth (money in the tensive surveillance and analysis of our bank and petroleum in the ground) current wells to identify further drilling is valued at $160 billion targets. We are continuing to deploy innovative methods such as Gas Cap Wa- ■ Has accounted for about 126,000 jobs ter Injection to support the reservoir ■ Continues to provide about 85 to 90 percent of the state’s annual revenues pressure. We are applying new technologies such as BrightWater to improve ■ Imported technology to other BP assets across the world the sweep efficiency of our water injection, and pursuing new technologies that could similarly improve MI sweep.” Digert adds that BP Alaska has in- This brief originally appeared in an creased its rig fleet capacity in 2013 to internal BP publication. Reprinted add more drilling and workover capa- with permission. May 2013 | Alaska Business Monthly

special section

Oil & Gas

Repsol Busy with Qugruk Prospect Photo essay by Judy Patrick

Photos ÂŠ 2013 Judy Patrick Photography

A total of 38 miles of ice road was constructed to access Repsol E&P USAâ&#x20AC;&#x2122;s three drilling locations in the Colville River Delta area on the North Slope. Shown above is one of those locations at sunrise earlier this year.

Above: Alaska Frontier Construction employee measuring the ice depth of the ice road to the drilling sites. Right: Ice road leading to the Qugruk No. 6 drilling location in the early morning light. 94

Alaska Business Monthly | May 2013

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How Do You Develop Arctic Offshore Resources? Just Ask Golder. Golder Associates has been part of the offshore oil and gas industry in Alaska and the arctic for more than 30 years. We provide integrated services that include geotechnical-permafrost engineering, marine sciences, met-ocean data collection and analysis, along with a passion for sustainable solutions to arctic development. Engineering Earthâ&#x20AC;&#x2122;s Development, Preserving Earthâ&#x20AC;&#x2122;s Integrity.

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May 2013 | Alaska Business Monthly

The company built a 4,000 foot lighted runway on a frozen lake near the drilling locations and chartered with Era Aviation to make ﬁ ve ﬂ ights per week direct from Anchorage for crew change outs.

Pulling the slips out, tripping in the hole. There are a total of approximately 350 people working on the project this season including construction, drilling, camps and other personnel. 96

Alaska Business Monthly | May 2013

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S

2013 OIL & GAS OIL & GAS DIRECTORY DIRECTORY EXPLORATION & PRODUCTION Top Executive Top Executive

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

John L. Hendrix, Gen. Mgr.

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

Ed Jones, Pres.

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

Janet Weiss, Pres.

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

Curtis Burton, CEO

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

Kevin Donley, Senior Counsel

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

Trond-Erik Johansen, Pres.

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

David Hall, CEO

Denali Drilling 8240 Petersburg St. Anchorage, AK 99507 Phone: 907-562-2312 Fax: 907-562-5971

Ron Pichler, Pres.

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

Aaron Schutt, Pres.

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

Steve Massey, AK eni Rep/Ops Mgr.

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

Karen Hagedorn, AK Production Mgr.

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

AK Estab. Empls. AK Estab. Empls.

Business Activity Services

1954

Oil and gas exploration and development.

1999

Oil and gas exploration and production.

lisa.parker@apachecorp.com apachecorp.com

jejones@aurorapower.com 1959

alaska.bp.com

2,300 BP operates 13 North Slope oil fields, four North Slope pipelines, and owns a significant interest in six other producing fields.

2006

Oil and gas exploration and production.

2011

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

info@buccaneerresources.com buccaneerresources.com

chevron.com 1952

COPAlaskaInfo@ConocoPhillips.com conocophillips.com

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

2009

Oil and gas exploration and production.

1970

DDI provides geotechnical, environmental, mineral exploration, commercial water well and large diameter (8') shaft drilling. We also drill, install tie-backs and construct retaining walls. We have provided these services throughout Alaska since 1970. We have specialized equipment for on/offshore and heli-poratable drilling.

1982

430

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

1926

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

1870

100

Conducting business in Alaska for 50 years, investing billions into local economics. As one of the largest oil producers in Alaska, Exxon Mobil has explored most major Alaska basins over the years.

Damon Kade, Pres.

2011

Exploration in the Kitchen Lights Unit located in the Cook Inlet of Alaska.

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

Ed Duncan, Pres./CEO

2010

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

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

John Barnes, Sr. VP

2012

300

Hilcorp is the third-largest, privately-held exploration and production company in the United States. Our success is a direct result of hard work and dedication to doing the right thing. Protecting the environment and ensuring a safe, healthy workplace are priority one for Hilcorp.

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

Corri Feige, GM Alaska

1996

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

millerenergyresources.com

rpichler@ak.net or denali@ak.net denalidrilling.com

info@doyondrilling.com doyondrilling.com

eni.com

exxonmobil.com

greatbearpetro.com

hilcorp.com

linc@lincenergy.com lincenergy.com

Alaska Business Monthly | May 2013

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY EXPLORATION & PRODUCTION Top Executive Top Executive

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

David Hebert, Gen. Mgr.

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

Robert Warthen, Pres.

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

Richard Bohon, Gen. Mgr.

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

Pat Foley, Pres.

AK AK Estab. Empls. Estab. Empls. 1962

350

Nabors Alaska conducts Arctic drilling operations on the North Slope of the Brooks Range, as well as in southern Alaska and the Cook Inlet. The company was involved in the state's first commercial drilling operation in 1962 and is routinely selected to drill the most challenging and difficult wells.

2009

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

1934

134

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

2003

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

nabors.com

moverly@nordaqenergy.com nordaqenergy.com

parkerdrilling.com

ir@pxd.com www.pxd.com

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT Company Company

Top Executive

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

Julie Morman, Gen. Mgr.

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

Dennis Lee, Managing Dir.

Business Activity Services

AK Estab. Empls. AK Estab. Empls.

Services

1976

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

2002

240

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

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

1999

230

Supply chain management specializing in asset intensive resource industries.

AIMM Technologies PO Box 1086 Kenai, AK 99611 Phone: 907-283-7330 Fax: 907-335-5099

Brooks Bradford Sr., CEO

1996

Specializing in tank cleaning & Hydrokinetic pipe cleaning. Onshore & offshore oilfield & rig support. Hydroblasting & pressure washing, Fin-Fan & heat exchanger cleaning. Onshore, offshore oilfield & rig support. Drill waste processing, management & disposal. Environmental waste cleaning, management & disposal. Vacuum truck service.

Air Liquide America L.P. 6415 Arctic Blvd. Anchorage, AK 99518 Phone: 907-562-2080 Fax: 907-564-9452

Robert Cook, Gen. Mgr.

1905

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

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

William Sanborn, Reg. Pres., NorPac

1982

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

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

Ronald Smith, CEO

1992

Engineered flow products, valves, actuators, flanges, piping, pipeline saddles/supports, corrosion mitigation, control valves, valve lubricants/equipment, RedWing FRC clothing. Poly coatings, composite docks, road mats, structures, towers, buildings and foundation systems, rig mats, Blast Proof / Fire Proof structural panels and off-site storage.

Alaska Air Cargo 4100 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 800-225-2752 Fax: 907-266-7808

Marilyn Romano, Reg. VP, Alaska

1932

148

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

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

Marilyn Romano, Reg. VP Alaska

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

Stefan Mack, PE/Pres.

Alaska Commercial Development Group 1246 Nobel St. Fairbanks, AK 99701 Phone: 907-457-1861 Fax: 907-457-2781

Matthew L Greer, Pres.

100

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

acuren.com

aimmtechnologies.com

airliquide.com

airgas.com

rsmith@aksupply.net aksupply.net

alaskacargo.com 1932

alaskaair.com

1,605 Alaska Airlines and its sister carrier, Horizon Air, together provide passenger and cargo service to more than 90 cities in Alaska, Canada, Mexico, Hawaii and the Lower 48.

2008

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

1997

General contractor located in Fairbanks, Alaska who design/builds from the ground up wood framed industrial buildings. Has space for lease for oil/gas semi-truckers looking for affordable/secure/clean warehouse.

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

Alaska Business Monthly | May 2013

www.akbizmag.com

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY SUPPORT SERVICES, SUPPLIES & EQUIPMENT Top Executive

Company Company

Top Executive

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

Meini Huser, Pres./CEO

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

Thomas Loran, VP

Alaska Investigation Agency LLC 1064 S. Settlers Cir. Palmer, AK 99645 Phone: 907-745-1133 Fax: 866-331-3617

Donna L. Anthony, Pres./CEO

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

Kevin Anderson, Pres.

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

Janeece Higgins, Pres.

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

Diana Pfeiffer, Pres.

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

Adam Beck, Pres.

Alaska Support Industry Alliance 3301 C St., Suite 205 Anchorage, AK 99503 Phone: 907-563-2226 Fax: 907-561-8870

Rebecca Logan, Gen. Mgr.

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

Jim Trolinger, Pres.

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

Scott Hicks, Pres.

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

Gail Morrison, Pres.

Alutiiq Oilfield Solutions LLC 3452 Trailer St. Fairbanks, AK 99709 Phone: 907-456-4433 Fax: 907-456-4439

Jeff Allison, Sr. VP of Operations

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

Thomas Barrett, Pres.

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

Zach Jacobson, Alaska Sales Mgr.

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

Elizabeth Rensch, Business Dev. Mgr.

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

Todd Bergman, Exec. Dir.

102

AK Estab. Empls. AK Estab. Empls.

Services Business Activities

1994

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

1976

Hydraulic repair and design, sales and service.

2011

Workman's Comp Investigations, oilfield investigations, accident reconstruction, insurance investigations, pre-employment background checks, executive protection/ bodyguard, surveillance, uncover investigations, school security, cell phone & tower extraction, criminal & civil investigations, and security consulting.

1980

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

1981

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

1944

223

Commercial and fleet, GM commercial vehicles, new and used vehicle sales, service and parts.

1994

157

Shipbuilding and repair; advanced manufacturing.

1979

More than 500 statewide businesses, organizations and individuals that derive their livelihood from providing products and services to Alaska's oil and gas and mining industries. Our membership currently employs more than 30,000 Alaskans.

1965

Instrumentation and fluid control, Swagelok Distributor of Alaska.

1978

129

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

2002

GIS, mapping for: oil & gas industry, spill response, environmental, land ownership, permitting, utility, programming, web services, ArcGIS Online, mobile apps, application development, software sales, training, CMMS, asset & facility management software/ implementation, ESRI Business Partner, Adapx and VUEWork software resellers.

2001

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

1970

800

Alyeska Pipeline designed and built the 800-mile Trans Alaska Pipeline System; today it operates and maintains the pipeline, its pump stations and the Valdez Marine Terminal. Alyeska has offices in Anchorage, Fairbanks and Valdez, and employees stationed all along the line. In 2012 it celebrated 35 years of safe, reliable operations.

1984

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

1991

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

1998

Workforce development and career pathways for Alaska's oil, gas and mining industries, North Slope Training Cooperative (HSE), industry priority occupations report, mobile process and energy industry career briefcase, Alaska Engineering Academies and Teacher Industry Externships (TIE).

info@alaskadreamsinc.com alaskadreamsinc.com

sales@alaskahydraulics.om alaskahydraulics.com

Akaia@usa.com akaia.vpweb.com

amlcsc@lynden.com shipaml.com

info@alaskarubber.com alaskarubber.com

richardd@aksales.com aksales.com

info@akship.com akship.com

info@alaskaalliance.com alaskaalliance.com

info@alaska.swagelok.com swagelok.com/Nwus.aspx

information@lynden.com lynden.com/awe

gmorrison@alliedgis.com alliedgis.com

alutiiq.com

facebook.com/alyeskapipeline alyeska-pipe.com

youtube.com/americanfastfreight americanfast.com

er@analyticagroup.com analyticagroup.com

tbergman@apicc.org apicc.org

Alaska Business Monthly | May 2013

www.akbizmag.com

Crowley Delivers ProjeCt solutions

When Doyon needed to deliver an 8 million-pound drilling rig to a remote, man-made island in the Arctic, they called on Crowley to deliver. Our solutions team designed, engineered and installed a temporary dock and causeway to safely deliver the rig to the island â&#x20AC;&#x201C; and then removed all traces of the temporary facility to comply with permitting requirements after the successful rig delivery. When you have a tough job that needs to be done right, you can count on Crowley â&#x20AC;&#x201C; from concept through completion.

www.CrowleyAlaska.com 800-231-0272

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY SUPPORT SERVICES, SUPPLIES & EQUIPMENT Top Executive Company Company

Top Executive

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

Scott Allan Stewart, Pres.

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

Edward Yarmak, Pres.

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

Kirsten K. Ballard, CEO

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

Jeff Kinneeveauk, Pres./CEO

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

Harry Wilmot, Pres./COO

Baker Hughes Inc. 795 E. 94th Ave. Anchorage, AK 99515 Phone: 907-267-3409 Fax: 907-267-3401

Ian Paterson, Dir., Alaska Ops

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

Gary Porter, Dir. of Ops

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

Holly Hylen, Pres./CEO

Beaded Stream PO Box 190311 Anchorage, AK 99519-0311 Phone: 907-227-9421 Fax: 214-445-0420

Brian R. Shumaker, Owner/Dir. Eng.

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

Rick Gray, Pres.

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

Travis Woods, Sr. Civil Engineer/CEO

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

Danny Holder, North America BU Dir.

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

Eric Helzer, Pres./CEO

C2 North LLC 4141 B St., Suite 200 Anchorage, AK 99503 Phone: 907-569-9122 Fax: 603-388-0793

Melanie Roller, Owner/Principal

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

Jim Carson, Alaska District Mgr.

Cardno ENTRIX 1600 A St., Suite 304 Anchorage, AK 99501 Phone: 907-563-0438 Fax: 907-563-0439

Suzanne Ban, Anchorage Ops Mgr.

104

AK Estab. Empls. AK Estab. Empls.

Services Services

1985

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

1972

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

2007

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

customerservice@arcticcouriers.com arcticcontrols.com

info@arcticfoundations.com arcticfoundations.com

info@arctosak.com arctosak.com 1985

info@asrcenergy.com asrcenergy.com

3,305 AES offers expertise from the earliest regulatory stage to exploration, drilling support, engineering, fabrication, construction, project management, operations and maintenance and field abandonment.

1947

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

1910

300

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

1993

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

1999

250

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

2004

Through the manufacture and installation of patented multi-point Temperature Acquisition Cables and satellite data loggers, BeadedStream LLC monitors and profiles ground, snow, air, and water temperature data in real-time via the web.

1985

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

1994

Civil engineering, permitting and planning; total project management encompassing planning, design and construction.

1977

Helicopter transportation services.

1982

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

2001

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

1989

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

1984

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

atco@atcosl.com atcosl.com

bakerhughes.com

coordinator@baldmountainair.com baldmountainair.com

mhylen@beaconohss.com beaconohss.com

contact@beadedstream.com beadedstream.com

information@lynden.com bmc.lynden.com

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

dave.scarbrough@bristowgroup.com bristowgroup.com

manager@brooksrangesupply.com brooksrangesupply.com

mroller@c2north.com c2north.com

canrig.com

erin.king@cardno.com cardnoentrix.com

Alaska Business Monthly | May 2013

www.akbizmag.com

WM Energy Services

A Complete Solutions Provider for the Oil and Gas Industry

Environmentally responsible solutions that meet your schedule and help minimize risks. Waste Management Energy Services offers a variety of oilfield related services and solutions including on-site and off-site water and solids management, materials tracking and reporting, along with permitting and compliance assistance. We leverage our vast experience and resources to offer solutions that reduce cost, mitigate risks, build a better brand, and protect the planet. We provide a single point of contact for all our customers so we can maintain effective communication, better understand the unique needs of each client, and develop new and proactive ways to minimize waste, maximize efficiencies and uncover resource value along your entire supply chain. • Turnkey remediation/site services

• Hazardous and non-hazardous waste disposal

• Recycling solutions

• Deep Well Injection

• Waste treatment and disposal

• Transportation services

• Bioremediation

• Drum management

• Permitting and compliance

• ISO 9001 and 14001 compliance

• Resource reuse and recycling

• Greenhouse Gas Reduction (GHG) strategies

New Alaska Office: 1519 Ship Avenue, Anchorage, Alaska 99501

For more information, please contact a WM Energy Services Representative at 855 973 3949 or

EnergyServicesAlaska@wm.com

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY SUPPORT SERVICES, SUPPLIES & EQUIPMENT Top Executive

Company Company

Top Executive

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

Donald E. Pearson, Gen. Mgr.

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

Linda Leary, Pres.

CCI Industrial Services LLC 560 E. 34th Ave., Suite 200 Anchorage, AK 99503-4161 Phone: 907-258-5755 Fax: 907-770-9452

A. Ben Schoffmann, Pres./CEO

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

Mark Lasswell, AK Bus. Grp. Pres./GM

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

Gabriel Marian, Pres.

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

Eric Helzer, Pres./CEO

CONAM Construction Co. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-6600 Fax: 907-278-4401

Robert Stinson, Pres.

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

Ken Gerondale, Pres./CEO

CPD Alaska LLC (Crowley) 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Bob Cox, VP

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

Lonnie G Parker, Pres.

Crowley Solutions 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5464 Fax: 907-777-5550

Bruce Harland, VP

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

Dave Cruz, Pres.

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

Kevin Weiss, Sr. Marine Dir.

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

Jeff F. Yates, Gen. Mgr.

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

Sherron Perry, Mgr.

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

Rudi von Imhof, Pres.

106

AK AK Estab. Empls. Estab. Empls.

Services Services

1987

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

1980

500

Full-service transportation company.

1989

377

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

theresa.quick@acsalaska.net dpnorth.com

pspittler@carlile.biz carlile.biz

info@cciindustrial.com cciindustrial.com 1946

bclemenz@ch2m.com ch2m.com/alaska

2,709 We offer consulting, engineering, procurement, logistics, fabrication, construction, construction management, operations and maintenance services all under one roof, supporting entire project life cycles. We support oil and gas, mining, environmental, water, power, transportation and government.

1946

125

Electrical and communications contracting NAICS; 237130, 238210.

1981

Arctic fuel logistics contractor, solid waste services, industrial supply.

1984

100

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

1985

108

CMI sells, rents and services heavy equipment.

1892

500

CPD operates fuel terminals in 20 locations in the railbelt and western Alaska, providing home heating oil, jet fuel, diesel, gasoline and propane. During the summer, our barges make direct deliveries to over 200 western Alaska communities. Crowley proudly celebrates 60 years of service to Alaska.

1954

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

1892

500

Crowley Solutions was formed in 2010 to provide increased support services to the oil and gas industry including turnkey project management solutions, ocean towing, heavy lift transportation services, spill response services, tanker escort and docking services in Valdez.

1990

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

2008

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

1987

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

1976

120

A multimodal aviation facility designed to meet the needs of both onshore and offshore oil and gas development on the North Slope. The DAC has 2 large hangars, office space, terminal, full-service medical facility, bedrooms and a full dining facility. The DAC owns a gravel laydown yard with 10.4 acres of new gravel.

2002

Leasing and rentals of fleet trucks, SUV's, vans, and shuttle busses, construction and mining equipment, oil and gas equipment. Remote GM and Chrysler warranty repair centers. Alaskan-owned. Deadline driven. Results oriented. Anchorage/Kenai/Prudhoe Bay/Remote Alaska.

gabrielm@cityelectricinc.com cityelectricinc.com

info@colvilleinc.com colvilleinc.com

conamco.com

o.prestwick@cmiak.com cmiak.com

bob.cox@crowley.com cpdalaska.com

anc.sales@craigtaylorequipment.com craigtaylorequipment.com

crowley.com

info@cruzconstruct.com cruzconstruction.com

info@cruzmarine.com cruzmarine.com

jyates@datem.com datem.com

info@deadhorseaviationcenter.com deadhorseaviationcenter.com

info@deltaleasing.net deltaleasing.net

Alaska Business Monthly | May 2013

www.akbizmag.com

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY SUPPORT SERVICES, SUPPLIES & EQUIPMENT Top Executive

Company Company

Top Executive

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

Kirk Payne, Pres.

Denali Drilling 8240 Petersburg St. Anchorage, AK 99507 Phone: 907-562-2312 Fax: 907-562-5971

Ron Pichler, Pres.

DHL Global Forwarding 2000 W. Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

John Witte, Reg. Mgr.

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

Lynn C. Johnson, Pres.

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

Thomas (Bob) Kean, Pres.

Engineered Fire and Safety 3138 Commercial Dr. Anchorage, AK 99501 Phone: 907-274-7973 Fax: 907-274-6265

Matt Atkins, Gen. Mgr.

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

W. Randy Orr, VP

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

Larry Weihs, COO

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

Robert W. Everts, Pres./CEO

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

Sherron Perry, Pres.

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

Sherill Lumba, Branch Mgr.

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

Mike Brose, VP

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

Howard J. Grey, Mgr.

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

Scott Widness, Alaska Div. Mgr.

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

Christopher Nettels, Pres.

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

Devon Grennan, Pres.

108

AK AK Estab. Empls. Estab. Empls.

Services Services

1985

Fueling Alaska safely for over 25 years.

1970

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

1975

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

1946

900

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

1986

Fire and gas detection and suppression system design, supply, installation and service. Alaska's only representative of Detector Electronics, Kidde Fire Systems, Fenwal Protection Systems, Chemetron Fire Systems, EST/Edwards fire alarm, and Siemens fire alarm.

1948

175

Alaska's original helicopter company, safely flying customers since 1948. Offering charter services, O&G, mining, and flightseeing in Juneau and Denali National Park.

1986

300

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

1995

250

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

1977

120

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

2009

Fircroft is a leading provider of technical recruitment solutions to a number of specialist industries, active in over 30 countries worldwide. Our key sectors include: oil & gas, petrochemicals & process, automotive & aerospace, nuclear & power, mining & minerals and general engineering.

1977

132

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

1983

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

1994

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

2002

We specialize in the acquisition of subsurface data for both the environmental and geotechnical professional communities. If your needs involve the characterization of the subsurface for either environmental assessments or geotechnical data acquisition, we provide drilling and geophysical services.

1979

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

deltawestern.com

rpichler@ak.net or denali@ak.net denalidrilling.com

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

reed@dowlandbach.com dowlandbach.com

doyonuniversal.com

matt.atkins@efs-fire.com efs-fire.com

alaskamarketing@erahelicopters.com erahelicopters.com

lweihs@ess-worldwide.com essalaska.com

info@evertsair.com evertsair.com

fairweather.com

alaskaoffice@fircroft.com fircroft.com

jeff.cook@kochps.com fhr.com

HGrey@foundex.com foundex.com

swidness@fugro.com fugro.com

ksmith@geotekalaska.com geotekalaska.com

info@gdiving.com gdiving.com

Alaska Business Monthly | May 2013

www.akbizmag.com

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY SUPPORT SERVICES, SUPPLIES & EQUIPMENT Top Executive

Company Company

Top Executive

Global Services Inc. 1701 E. 84th Ave. Anchorage, AK 99507 Phone: 907-349-3342 Fax: 907-349-2015

Kurt Winkler, Pres.

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

Mark Musial, Principal/Mgr.

Granite Construction Company 11471 Lang St. Anchorage, AK 99515 Phone: 907-344-2593 Fax: 907-344-1562

Derek Betts, Region Mgr.

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

John Minder, CEO

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

Chris Schafer, District Mgr.

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

Maynard Tapp, Managing Member

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

Ken Therriault, VP/Gen. Mgr.

High Tide Exploration 2775 N. Hematite Dr. Wasilla, AK 99654 Phone: 907-354-3132 Fax: 907-354-3132

Chris Hoffman, Owner

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

Wayne Dick, Pres.

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

Joel Lawrence, Pres.

Intertek Testing Service NA Inc. 22887 NE Townsend Way Fairview, OR 97024 Phone: 907-561-1077 Fax: 907-561-1679

Greg Tiemann, Exec. VP

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

Terry Heikkila, Dir. Pacific Rim

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

Judy Patrick, Owner

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

A. Ben Schoffmann, Pres./CEO

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

Pat Harrison, Pacific NW Area Mgr.

Little Red Services Inc. 3700 Center Point Dr., Suite 1300 Anchorage, AK 99503-5393 Phone: 907-349-2931 Fax: 907-349-2750

Douglas Smith, Pres./CEO

110

AK AK Estab. Empls. Estab. Empls.

Services Services

1982

Remote camps, industrial catering, and facilities management.

1980

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

1922

Public and private heavy civil construction, design-build, construction aggregates, recycled base, warm and hot mix asphalt, road construction, bridges, piling, mine infrastructure and reclamation and sitework.

1976

250

Heavy highway construction, aggregate production, paving, underground utilities.

1966

500

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

1985

Consulting services, project control, management, cost engineers, QA/QC consultants, maintenance coordinators, supervision/project coordinators.

1956

Steel sales, iron fabrication: shear, brake, roll, Iron Worker and 10' X 24' plasma table.

2010

We gather underwater video to depths of 1,000 ft using our Remotely Operated Vehicle throughout Alaska and locations worldwide. The ROV can be deployed quickly and can work from a variety of platforms. As biologists, we are well suited to describe underwater habitat or can team with engineers to assess underwater infrastructure.

1982

Dealers for CAT, Mitsubishi, Manitou, Maximal and Bendi forklifts; GEHL construction equipment, skid steer loaders, telehandlers and mini excavators; Skytrack manlifts, scissor lifts and zoom booms; Wacker construction equipment; as well as parts, sales and service for most all makes and types of equipment, new and used.

1986

For 25 years, Inlet Petroleum Company has supplied fuels, lubricants and related petroleum products to a wide array of industries and businesses.

1896

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

1947

Professional services supporting federal & energy clients. AK expertise includes environmental planning, permitting, compliance, investigation, remediation & emergency response; energy conservation (retro-commissioning); remote logistics; design; planning; risk & construction management.

1984

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

1999

185

Nondestructive testing, internal and external corrosion investigations, quality program management, integrity program management, field chemical/corrosion inhibition management, heat treat, corrosion-under-insulation investigation, infrared thermography, rope access technology, and in-line inspection data interpretation.

1947

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

1983

148

Hot oil, fluid heating, and pumping services throughout Alaska.

facebook.com/globalsrvc globalsrvc.com

golder.com

alaska.projects@gcinc.com graniteconstruction.com

info@grtnw.com grtnw.com

halliburton.com

info@hawkpros.com hawkpros.com

hectors@acsalaska.net hectorswelding.com

chris@hightidealaska.com hightidealaska.com

barry.ilt@gci.net iltalaska.com

info@inletpetroleum.com inletpetroleum.com

wendell.whistler@intertek.com intertek.com

jacobs.com

judy@judypatrickphotography.com judypatrickphotography.com

info@kakivik.com kakivik.com

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

ecg@emeraldalaska.com littleredservices.com

Alaska Business Monthly | May 2013

www.akbizmag.com

SUPPORT

“Caterpillar® makes a great product, but it’s the support of the local dealer that makes the difference. The bottom line is that N C Machinery product support is what keeps us in business.” Dave Cruz, President, Cruz Construction

Several machines from Cruz Construction’s extensive Cat fleet hard at work in Grayling, AK.

Industry-Leading Customer Service In Alaska: 800-478-7000 In Washington: 800-562-4735

ALASKA BUSINESS MONTHLY’S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT Company Company

Top Executive

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

Jim Sawhill, Pres.

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

Judy McKenzie, Pres.

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

David Richardson, Pres.

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

Alex McKallor, Pres.

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

Paul Grimaldi, Pres.

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

Wynn Fontenot, Regional VP

MagTec Alaska LLC 43385 Kenai Spur Hwy. Kenai, AK 99611 Phone: 907-394-6305 Fax: 907-335-6313

Ryan Andrew Peterkin, Pres.

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

Bob Fell, Dir. of Ops.

AK Estab. Empls. AK Estab. Empls.

Services Services

1949

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

1996

144

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

1980

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

1984

Arrangement of freight transportation, information management and logistical services.

1954

148

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

1934

209

Oilfield services and drilling mud products.

2008

100

Oilfield equipment rental and project support. Logistic service, North Slope camps, equipment sales and service. Generators 20KW to 2meg, heaters, trucks, vans and flatbeds. Based in Kenai with a camp and service center in Deadhorse.

1973

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

k.ayers@lounsburyinc.com lounsburyinc.com

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

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

information@lynden.com lynden.com

trananccs@lynden.com lynden.com/ltia/

ebrayer@miswaco.com miswaco.com

skeeter@magtecalaska.com magtecalaska.com

info@maritimehelicopters.com maritimehelicopters.com

Doing our par t to keep things moving

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

Alaska

112

Alaska Business Monthly | May 2013

www.akbizmag.com

Company Company

Top Executive

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

Mick McKay, CEO

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

Jeffrey Baker, AK Office Principal

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

Randy Orr, Pres./Gen. Mgr.

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

Chris Ransom, Anch. Branch Mgr.

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

Brad Deweese, Fairbanks Branch Mgr.

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

Chris Brown, Alaska Reg. Mgr.

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

John J. Harnish, Pres./CEO

Nalco Company 3000 C St., Suite 204 Anchorage, AK 99503 Phone: 907-563-9866 Fax: 907-563-9867

Derek Lewis

www.akbizmag.com

AK Estab. Empls. AK Estab. Empls.

Services Services

2004

140

Energy systems, environmental, construction, telecommunications.

1942

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

1979

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

2007

A leading distributor of industrial maintenance, repair and operation (MRO) replacement parts (over 5.2 million parts), including bearings, power transmission, hydraulic/ pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, seals, process pumps and material handling.

1970

A leading distributor of industrial maintenance, repair and operations (MRO) replacement parts (over 5.2 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, process pumps, seals and material handling.

1977

Water, wastewater, environmental remediation, permitting and power.

1926

248

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

1928

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

gina.heath@marshcreekllc.com marshcreekllc.com

mbakercorp.com

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

motionindustries.com

chris.brown@mwhglobal.com mwhglobal.com

sfield@ncmachinery.com ncmachinery.com

dalewis@nalco.com nalco.com

May 2013 | Alaska Business Monthly

113

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT Company Company

Top Executive

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

Ralph McKee, Pres.

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

Rock Hengen, Pres./Gen. Mgr.

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

Paull Gillett , COO

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

Mary P. Quin, Pres.

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

Ron Otte, VP Ops, Security

NMS Staffing 341 W. Tudor Rd., Suite 202 Anchorage, AK 99503 Phone: 907-729-5570 Fax: 907-729-5579

Tom Gilbert, VP Ops

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

Thomas Arnold, Pres.

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

Noel Therrien, Ops. Mgr.

114

AK Estab. Empls. AK Estab. Empls.

Services Services

2008

205

Full service oilfield construction, fabrication, operations and maintenance capabilities. Truckable modules, blast resistant walls and modules, remote worker' camps, offices and office complexes, Envirovacs, Tool Cribs, pipe and steel fabrication, field construction, project and construction management.

1997

425

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

2005

Worldwide logistics, including ground, air, and ocean.

sagen.juliussen@nana.com nanaconstruction.com

info@nanaworleyparsons.com nanaworleyparsons.com

paul.gillett@naniqglobal.com naniqglobal.com 1974

2,200 Camp services, food and facilities management, security, hotel management and staffing.

1974

2,200 Providing security services in Alaska since 1974, we serve a wide variety of clients including federal, state and local governments, corporate facilities, health care providers, manufacturing centers, the telecommunications industry and museums with an expansive array of security services.

1991

2,200 Dedicated to finding and placing the most qualified employees in various types of skilled and technical positions. We partner with each client, getting to know exactly what your staffing needs are so we can find that perfect match. Our highly trained and skilled recruiters seek out the best talent.

information@nmsusa.com nmsusa.com

nmssecurity.com

nmsstaffing@nmsusa.com nmsstaffing.net 1974

317

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

1986

123

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

Inquiries@NORCON.com norcon.com

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

Alaska Business Monthly | May 2013

www.akbizmag.com

Company Company

Top Executive

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

Jeff Bentz, Pres.

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

David W. Karp, Pres./CEO

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

Burr J. Neely, Gen. Mgr.

Nu Flow AK 1301 E. 71st Ave. Anchorage, AK 99518 Phone: 907-677-2144 Fax: 907-677-2566

Joe Jaime, Pres.

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

Rick Wilson, Bus. Mgr.

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

Rick Wilson, Bus. Mgr.

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

Jackie Brunton, Pres.

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

Kevin Hand, Pres.

1956

350

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

1991

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

1987

Nu Flow installs blown-in epoxy coatings & pull-in-place structural liners to failing small diameter pipe systems & rehabilitates several types of potable, drain & mechanical pipe systems in residential or commercial buildings. Our patented & unique green repipe alternatives tech. saves time, hassle and money v. traditional pipe replacement.

1982

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

1982

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

1995

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

2009

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

nlur@northernlanduse.com northernlanduse.com

nuflowak.com

offshoresystemsinc.com

jb2inc@oilandgassup.com

oilfield@olgoonik.com olgoonik.com



Services Services

50,150 Stevedore, marine logistics and operated crane services. We are also providing state of the art driven foundations with our ABI Mobile Ram Machines.

info@nac.aero nac.aero

 

www.akbizmag.com

1950

sales@northstarak.com northstarak.com





AK Estab. Empls. AK Estab. Empls.

  

Stay connected & sign up for email alerts at www.PenAir.com

May 2013 | Alaska Business Monthly

115

ALASKA BUSINESS MONTHLY’S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT Company Company

Top Executive

PacArctic Logistics LLC 4300 B St., Suite 407 Anchorage, AK 99503 Phone: 907-887-4252 Fax: 907-562-5258

King Hufford, Pres.

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

Ed Fitzgerald, CEO

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

Jay Goold, Branch Mgr.

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

Mike O'Connor, Pres.

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

Carol Ann Lindsey, CEO

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

Kevin Durling, Pres.

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

Tom Walsh, Managing Partner

Pinnacle Mechanical Inc. 5821 Arctic Blvd., Unit D Anchorage , AK 99518 Phone: 907-336-4328 Fax: 907-376-4329

Janice Kittoe, Pres.

116

AK Estab. Empls. AK Estab. Empls. 2010

Full service logistics and transportation. Scheduled barge service from Olympia, WA to Port MacKenzie, AK.

1961

Transports freight between the Lower 48 and Alaska. Trucking services in Alaska. Asset based, PAF terminals located in Tacoma, WA and Anchorage. Terminals in Fairbanks, Soldotna and Kodiak. Consolidation center in Chicago, Il.

1982

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

1987

553

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

1959

110

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

1983

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

1997

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

1999

Specializing in providing quality commercial and industrial plumbing, heating and air conditioning for new construction, remodels, and tenant improvements. facebook.com/#!/ PinnacleMechanicalIncorporated

KHufford@PacArctic.com PacArctic.com

Info@pafak.com pafak.com

jaygoold@paramountsupply.com paramountsupply.com

peak@peakalaska.com peakalaska.com

rogerb@harborent.com petromarineservices.com

sales@pesiak.com pesiak.com

info@petroak.com petroak.com

Facebook.com pinnaclemechanicalinc.com

Alaska Business Monthly | May 2013

Services Services

www.akbizmag.com

Company Company

Top Executive

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

John Pickering, Pres.

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

David Matthews, VP/AK Area Mgr.

Production Testing Service 440 E. 100th Ave. Anchorage, AK 99515-2603 Phone: 907-344-2024 Fax: 907-344-2022

Robert Hoff, Pres.

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

Joan Stolle, Pres.

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

Scott English, Alaska Div. Mgr.

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

Ray Belanger, Pres.

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

Lees Rodionov, Gen. Mgr.

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

Stephen "Joe" Kapper, Pres.

www.akbizmag.com

AK Estab. Empls. AK Estab. Empls.

Services Services

1979

General civil, structural, geotechnical, arctic, marine, and coastal engineering; survey; permitting; hydrology; inspection; Q/A; and value engineering, among others.

1974

200

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

1988

Well testing, equipment rental and engineering.

1978

Providing people for professional, technical, and administrative positions for oil and gas industry clients on a preferred and sole source contact basis. Staffing services include both contract and permanent positions.

1984

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

1982

Wholesale motor vehicle merchant. Thomas-Built buses, American La France Fire apparatus, Unimog all-terrain truck, snow and ice control equipment, highway maintenance equipment, street sweepers and scrubbers. Automotive/truck up fitter and repair facility.

1956

866

Provides people and technology, working together to offer exploration and production services during the life cycle of the oil and gas reservoir.

1985

24/7 on-demand aircraft charter services: express package service, passenger, freight and medical transportation.

pndengineers.com

dmatthews@pricegregory.com pricegregory.com

gstalzer@ptssite.com productiontestingservices.com

info@pbsjobs.com pbsjobs.com

senglish@pspipe.com pugetpipe.com

quality@ak.net quessak.com

schlumberger.com

sales@securityaviaition.biz securityaviation.biz

May 2013 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT

ALASKA BUSINESS MONTHLY’S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT Company Company

Top Executive

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

Ralph Seekins, Pres.

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

Kurt Lindsey, Pres.

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

Leverette Hoover, Gen. Mgr. AK

SLR International Corporation 2700 Gambell St., Suite 200 Anchorage, AK 99503 Phone: 907-222-1112 Fax: 907-222-1113

Brian G. Hoefler, Alaska Mgr.

SolstenXP Inc. 310 K St., Suite 700 Anchorage, AK 99501 Phone: 907-279-6900 Fax: 907-264-6190

Jesse Mohrbacher, Pres./CEO

Span Alaska Transportation Inc. PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

Mike Landry, Pres.

Spill Shield Inc. 5610 Silverado Way, Suite A10 Anchorage, AK 99518 Phone: 907-561-6033 Fax: 907-561-4504

Ken Bauer, Sales Mgr.

Statewide Petroleum Service 6108 Petersburg St. Anchorage, AK 99507 Phone: 907-562-3344 Fax: 907-562-9044

John Hillborn, Pres.

AK Estab. Empls. AK Estab. Empls.

Services Services

1977

119

Auto dealership providing services to purchase, finance, or service a new or pre-owned Lincoln.

1981

Fuel and lubricant distributor specializing in customer service while supplying Alaska industry: oil and gas, construction, commercial fishing, marine, aviation, trucking and retail/commercial petroleum fueling sites.

1982

100

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

2000

Air permitting, air measurements, project permitting, environmental compliance, site investigation, remediation, risk assessment and oil spill contingency planning.

1993

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

1978

Freight transportation services to and from Alaska, less-than-truckload and truckload. Steamship and barge service to Railbelt area of Alaska. Barge service to Juneau and Southeast Alaska. Overnight service from Anchorage to Fairbanks and the Kenai Peninsula.

1992

Supplier for Smart Ash, Oil Away, Drug Terminator and MediBurn incinerators. Absorbents, water scrubbers, oil spill response kits and related oil spill cleanup products. We also supply the Titan fluid recycler that will clean diesel fuel or low viscosity hydraulic oil at 3 or 6 gallons per minute. We are also supplier of Super Sacks.

1983

Fuel system installation and maintenance throughout the state of Alaska and beyond.

sales@seekins.com seekins.com

info@shoresidepetroleum.com shoresidepetroleum.com

leverette.hoover@siemens.com siemens.com

bhoefler@slrconsulting.com slrconsulting.com

info@solstenxp.com soltenxp.com

kathyL@spanalaska.com spanalaska.com

spillshield@ak.net spillshield.com

statewidepetroleum.com

SPAN ALASKA

has our Alaska market covered.

..... Our customers depend on us for quality, consistency, and expertise. We expect the same from our shipping company – and Span delivers with flying colors. – Michael Schreurs, Regional Director of Transportation, Sherwin-Williams

SHIPPING TO ALASKA? CALL. 1.800.257.7726 www.spanalaska.com

promises made, promises delivered

Matt Stabio, Zone Manager, Alaska, Sherwin-Williams

118

Alaska Business Monthly | May 2013

www.akbizmag.com

AK Estab. Empls. AK Estab. Empls.

Company Company

Top Executive

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

Richard Faulkner, Pres.

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

Jantina Lunsford, Pres.

Surveyors Exchange Co. 3695 Springer St. Anchorage, AK 99503 Phone: 907-561-6501 Fax: 907-561-6525

David Larry Wilmarth, Owner

Swagelok Northwest (US) 6160 Tuttle Place, Suite A Anchorage, AK 99507 Phone: 907-563-5630 Fax: 503-288-7919

Jim Trolinger, Pres.

Swift Worldwide Resources 3111 Denali St., Suite 102 Anchorage, AK 99503 Phone: 907-222-4100 Fax: 907-222-4101

Leslie Lockhart, Regional Mgr.

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

Mike Tolbert, Pres.

TecPro Ltd. 816 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-348-1800 Fax: 855-348-1830

Cynthia Saunders, Pres.

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

James Tangaro, VP

Services Services

1988

Alaska steel source.

1950

Full service machining shop and oilfield servicing company.

1969

Satellite phone and two-way radio specialists, auto-desk software, surveying instruments, sales, rentals and service.

2003

We are a high-end fluid system products and solutions provider. We offer energy management, industrial products and services, fluid system assemblies, training and rentals.

2009

Swift Worldwide Resources specializes in providing manpower exclusively for the global oil & gas industry. For over 30 years, our proven process has matched qualified candidates with many of the world's largest oil & gas companies, including major operators, independent operators, oil & gas service companies, and EPC companies.

1979

Provides all supplies necessary for remote work. Provides logistical support (portable camp, food and vehicles) for environmental cleanups statewide. Full-scale expediting service to include well and water monitoring pipe and supplies. Also in Anchorage at 351 E. 92nd., 245-3123.

1997

TecPro offers electrical contracting services, UL Listed industrial control system integration, and security integration services (video, access, alarm). Specialties include SCADA and PLC design, fabrication, installation and programming.

1969

750

Refining and marketing of petroleum products, including gasoline, diesel and jet fuel.

steelfabak.com

smwjal@acsalaska.net superiormachine.net

garza@tse-ak.com tse-ak.com

info@nwus.swagelok.com swagelok.com/nwus

SwiftWWR.com/Alaska

taiga@taigaventures.com taigaventures.com

info@tecpro.com TecPro.com

tsocorp.com

Where the road ends…

Our Work Begins

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

cruzconstruct.com

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

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

Anywhere you need it. Any season of the year.

tundra transport • rig moves • rig support • remote camps • ice roads • ice pads • well site trailer units • marine services

www.akbizmag.com

May 2013 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY’S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT Company Company

Top Executive

Testing Institute of Alaska 3910 Alitak Bay Cir. Anchorage, AK 99515-2366 Phone: 907-276-3440 Fax: 907-770-7093

Steven Olaf Lockman, Owner

TrailerCraft | Freightliner of Alaska 1301 E. 64th Ave. Anchorage, AK 99518-1908 Phone: 907-563-3238 Fax: 907-562-6963

Lee McKenzie, Pres./Owner

Tri-Jet Manufacturing Services 1960 S. Eklutna St. Palmer, AK 99645 Phone: 866-607-1653 Fax: 907-268-2086

Ehren Wiener, Ops Mgr.

AK Estab. Empls. AK Estab. Empls.

Services Services

1979/2010

Welding: consulting, welder testing, certifications & procedure qualifications. Inspection: Mechanical Quality Assurance, AWS Structural Steel & Welding , API 653 Tanks/570 Piping/510 Pressure Vessels, NACE Coating. Testing: NDT tests & Level III Serves, DOT tanker inpections, ABS/USCG hull tests. Training:NDT, AWS/API & Film Interp.

1969

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

2004

Waterjet cutting, powder coating, ceramic coating, welding and fabrication, machiningincluding 5-axis, 3D modeling, and drafting.

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

2003

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

Tutka LLC (Anchorage) 620 E. Whitney Rd., Suite B Anchorage, AK 99501 Phone: 907-272-8010 Fax: 907-272-9005

Keith Guyer, Ops Mgr.

1999

1,050 WBE/DBE (DOT & PF, MOA), EDWOSB, HUBZone, CCR/ORCA registered. General Contractor, heavy civil construction, environmental cleanup and consulting, wastewater pre-treatment systems operations and maintenance services.

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

Amie Sommer, Member

1999

1,050 Certified DBE/WBE (ADOT&PF, MOA),EDWOSB/WOSB, HUBZone, CCR/ORCA registered. General contractor, heavy civil construction, environmental cleanup and consulting, wastewater pre-treatment systems operations and maintenance services.

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

Jim Udelhoven, CEO

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

Richard Reich, PE, Gen. Mgr.

120

tia@tia-ak.com tia-ak.com

sales@trailercraft.com trailercraft.com

ewiener@trijetprecision.com trijetprecision.com

keith@tutkallc.com tutkallc.com

amie@tutkallc.com tutkallc.com 1970

591

Oilfield services, construction management, electrical and mechanical system installation.

1982

200

Regulatory planning, stakeholder relations, architecture, engineering, surveying, geospatial analysis, response planning and operations, civil construction, arctic science support and full-service camps.

rfrontde@udelhoven.com udelhoven.com

info@uicumiaq.com uicalaska.com

Alaska Business Monthly | May 2013

www.akbizmag.com

Company Company

Top Executive

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

Patrick M. Hanley, VP/Gen. Mgr.

Unitech of Alaska 7600 King St. Anchorage, AK 99518 Phone: 907-349-5142 Fax: 907-349-2733

Karl "Curly" Arndt, Sales

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

Joe Hegna, Alaska Ops Mgr./VP

Volant Products Inc. 4110-56 Ave. Edmonton, AB T6B 3R8 Phone: 780-490-5185 Fax: 780-437-2187

The design, development, manufacture and distribution of oilfield, construction, mining, fishing, and government parts to industry quality standards.

1985

Full-service oil spill remediation/environmental/industrial/safety supplies. Sorbents/ drums-steel-poly and fiber/portable tanker/boom/berms and incinerators.

1904

100

Civil/structural/transportation engineering design services, analysis/response, containment sites, cultural/historical/archaeological/land use/noise & threatened/ endangered species studies, fisheries/geology/soils expertise, GIS/AutoCAD, Section4f evaluations, wetland delineation, wildlife.

2001

Volant designs, tests and manufactures CRTs, HydroFORM Centralizers and MLT Rings. Our CRTs enable makeup, break out, reciprocate, rotate, fill/circulate and cement casing/liner strings. Centralizers are designed as a smooth unit-body perfectly suited to complex well designs. MLT Rings enable increased torque and short lead time.

1975

Crane builders, crane design, new crane sales, new hoist sales, lifting equipment design and sales. Material handling solutions for industry, hoists, job cranes, work stations, chain falls, lever hoists, crane upgrades, crane maintenance, crane inspection, crane repair, hoist repair and crane parts.

1969

Hazardous and nonhazardous waste disposal, project management, complete logistical oversight, complete U.S. and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation and turnkey remedial services.

info@unitechofalaska.com unitechofalaska.com

urs.com

info@volantproducts.ca volantproducts.ca Mike Currie, VP

Waste Management of Alaska Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 855-973-3949 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

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

Grant Smith, CEO

Weston Solutions Inc. 425 G St., Suite 300 Anchorage, AK 99501 Phone: 907-276-6610 Fax: 907-276-6694

Patrick Flynn, Alaska Business Mgr.

Services Services

1974

pat.hanley@umalaska.com umalaska.com

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

www.akbizmag.com

AK Estab. Empls. AK Estab. Empls.

washingtoncrane.com

mholzschuh@wm.com wm.com 2009

1,012 Liquid transportation tank trailer repair.

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

Robert.Hunter@westonsolutions.com westonsolutions.com

1957

WESTON delivers sustainable environmental, property redevelopment, energy, & construction solutions. WESTON Alaska supports oil & gas project management, permitting, construction, incident response, & environmental remediation. Worldwide, 1,800 staff build stakeholder relationships & help solve our clients' toughest problems.

May 2013 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

SUPPORT SERVICES, SUPPLIES Top Executive & EQUIPMENT

ALASKA THIS MONTH Compiled By Tasha Anderson

dining

Photo courtesy of Let’s Cook Alaska.

Let’s Cook Alaska

Let’s Cook Alaska students ready to eat.

any plan to eat out; but after even just one class with Let’s Cook Alaska, some may find themselves planning to eat in. Let’s Cook Alaska is a family run business owned by Josie McKinney, a fi ft h generation Alaskan. She was inspired to found it as a way to combine her passions for cooking and teaching. “I have always loved to cook,” she says. “Teaching is another passion of mine and the two just naturally came together.” McKinney finds support through her teens and husband; her children help as assistants in her “Mom (or Dad) and Me” classes, while her husband Mark hosts, works on paperwork and helps with other odds and ends. If you want to learn to cook, Let’s Cook Alaska can help, as it offers the gamut of classes: “I have four-hour intensive (classes) where I teach things that I can’t in my typical twohour classes, like making bread, cakes from scratch or complete holiday meal preparation. My two-hour classes cover everything from ‘Back to Basics’ classes to international classes covering authentic cuisine from all over the world,” McKinney says. Everyone is welcome to sign up for classes, and McKinney is happy to work around unique needs or special situations. “We have a legally blind student, corporate groups that come in and want to compete, teens who just want to use the microwave at first, and all kinds of interesting class dynamics.” Whoever comes to learn, McKinney is excited to teach them. “Let’s Cook Alaska is all about teaching the love of cooking. I love what I do and I can’t wait for each class.” letscookalaska.com  122

Alaska Business Monthly | May 2013

www.akbizmag.com

ALASKA THIS MONTH Compiled By Tasha Anderson

trAvel

Strokkur, a fountain geyser east of Reykjavik.

Photos courtesy of Ragnar Th. Sigurðsson.

Reykjavik

or those Alaskans looking for new travel ideas this year, starting midMay Icelandair will have a direct flight from Anchorage to Reykjavik, the capitol city of Iceland. The flight is approximately seven hours, and flights are planned twice a week through the summer. According to Icelandair’s Senior Vice President of Marketing and Sales Helgi Már Hallgrimskirkja, the tallest Björgvinsson, “Anchorage is an church in Iceland, illumiunderserved market with con- nated at night. venient connections that will allow Icelandair to grow on the west coast of North America. Outbound travelers will have a refreshing alternative when traveling non-stop to Iceland with connections to more than 20 destinations in Europe, while European travelers will be enticed by incredible wildlife, skiing, cruises, or the ability to experience the Last Frontier of Alaska.” Flights start on May 15 and will operate seasonally through September. “We look forward to serving the Alaskan market and hope this will open up future possibilities,” Björgvinsson says. In addition to being a traveling hub, Reykjavik itself is a unique destination. Visitors can enjoy a rich mix of nature and city life day or night with museums, cafes, bars, live music, and shopping opportunities. One unique attraction is the geothermal beach in Nauthólsvík, where a lagoon was formed in which cold sea and hot geothermal water fuse together, with an average temperature of 59-67 F in the summer. Another noteworthy site is Hallgrimskirkja church: At approximately 240 feet tall, this landmark offers stunning panoramic views of Reykjavik. icelandair.us; visitreykjavik.is.  www.akbizmag.com

May 2013 | Alaska Business Monthly

123

ALASKA THIS MONTH Compiled By Tasha Anderson

entertAinment

Photos courtesy of Kodiak Chamber of Commerce.

Kodiak Crab Festival

Aerial view of Kodiak midway.

“

veryone shows up for the Kodiak Crab Festival,” says Summer Wood, community relations director for the Kodiak Chamber of Commerce and manager for the Kodiak Crab fest. And it makes sense, as the crab festival is a premier end of winter event. Celebrating its 55th an- Kodiak Crab Festival masniversary this year, the Crab cot and friend. Festival started in 1958 as a marketing event to promote the then-new market for Alaska king crab. Since then, it has evolved: “It’s a fun recreational outlet after the gloom of winter,” Wood says. “It’s like a homecoming for the community.” And the community doesn’t just benefit from the mix of Alaska seafood, arts, crafts and entertainment; “A lot of the vendors use this is as their fundraiser for the year,” Wood explains, donating some or all of the profits to charity or non-profits organizations in- and outside of the community. This year’s festival will include many of its annual signature events, including the Survival Suit Race, where contestants race dressed up head-to-toe in survival gear; Crab Festival poster sale and signing; In Da Mixx On Da Mall with DJ Marc “Island Style” Entertainment, which includes music games, a dance contest and guest performances; the Grand and Shrimp Parades; the Pillar Mountain Race; a local seafood tasting; and many other arts and crafts vendors, live musical performers, good food and Kodiak flare. The Golden Wheel Amusement rides and games are located on the midway for the length of the event. This year’s festival takes place May 23 to 27, with events starting running all day. “It’s a big thing for the community,” Wood says, and there’s plenty to go around. facebook.com/kodiakcrabfestival 

124

Alaska Business Monthly | May 2013

www.akbizmag.com

EVENTS CALENDAR

Compiled By Alaska Business Monthly Staff

Anchorage 1

Anchorage Museum

The Anchorage Museum has two exhibits that will be on display for the summer season. Arctic Flight: A Century of Alaska Aviation, will be on view through Aug. 11. Portrait Alaska: Clark James Mishler, will be on view through Sept. 28. These are in addition to its permanent exhibits the Alaska Gallery, Art of the North and the Smithsonian Arctic Studies Center. Anchorage Museum, 9 a.m. to 6 p.m. Daily. anchoragemuseum.org

The Lost Fingers

hiking gear. No firearms allowed. All day event, Nugget Mall. nuggetmalljuneau.com

Ketchkikan 23

The Bellamy Brothers

Howard and David Bellamy have enjoyed enormous success throughout their career with No. 1 hits on Pop and Country charts. Ketchikan High School Auditorium, 7:30 p.m. bellamybrothers.com

Kodiak 24

Marian Call

The Lost Fingers is an acoustic trio from Canada performing jazzedup, high energy renditions of French pop songs and nostalgic hits by AC/DC, Michael Jackson and Stevie Wonder, to name a few Alaska Center for the Peforming Arts, 7:30 p.m. myalaskacenter.org

Marian Call is a trained composer and self-taught singer based in Juneau. Harbor Bay Convention Center, 8 p.m. kodiakartscouncil.org

Cordova

Every Friday from the end of May through August, downtown Palmer is transformed with food vendors, local artists, live music and a fresh farmers market. Downtown Palmer, 10 a.m. to 5 p.m. palmerchamber.org

2-5

Shorebird Festival

This years festival includes keynote speaker Mr. Whitekeys; a photo workshop with Michael Quinton; early morning, USFSguided walks; guided field trips; high tide shuttles to Hartney Bay; a migration maze, arts workshop and other activities for children and young adults; and the Birders Bash dinner. Various locations and times. cordovachamber.com

Fairbanks 4

Resilient Fairbanks Conference

This conference is a collection of speakers, vendors, and presentations on how the community can come together and build a stronger, resilient and more prosperous Fairbanks. Alpine Lodge, 8 a.m. explorefairbanks.com

Breast Cancer Focus Annual Luncheon

The mission of Breast Cancer Focus Inc. is to obtain funds to support advocacy, education, research and compassionate giving and to help eradicate breast cancer. Luncheon features speaker Dr. Lyn Freeman and a silent auction and is followed by free educational seminar. Dena’ina Civic & Convnetion Center, silent auction begins 11 a.m., lunch begins at 12 p.m. breastcancerfocus.org

Homer 9-12

Kachemak Bay Shorebird Festival

Every spring more than 236 species of birds are celebrated in this festival that includes talks, presentations and other events throughout the community. Various locations and times. homeralaska.org

Juneau 3-18

Juneau Jazz & Classics Festival

This festival offers a spectacular mix of blues, jazz and classical performances; workshops; and family entertainment including performances aboard boats for the popular classical and blues cruises. This year’s event will bring more than thirty artists to Juneau, with a kick-off concert featuring Arlo Guthrie. Various locations and times. jazzandclassics.org

3-26

The Road Weeps, The Well Runs Dry

Surviving centuries of slavery, revolts, and The Trail of Tears, a community of self-proclaimed Freemen (Black Seminoles and people of mixed origins) incorporate the first all-black town in Wewoka, Oklahoma– but the very foundations of the town are rocked when a new religion and the old way come head to head. Perseverance Theatre, 7:30 p.m. perseverancetheatre.org

18-19

Used Boat & RV Show and Outdoor Gear Sale

This event is an opportunity to buy, sell or browse a boat or RV. Space is also available for fishing, hunting, camping, skiing and www.akbizmag.com

Palmer 5/24-8/30

Friday Fling

Petersburg 16-19

Little Norway Festival

This festival celebrates Norway’s Constitution, the coming of spring and beginning of the fishing season. Participants dress up in traditional folk costumes, and events include indoor and outdoor dances, the Mitkof Mummer’s Melodrama, artist receptions, rosemaling classes, an arts and crafts share, traditional Alaskan and Norwegian foods, parade, pageant, style shows and music. Various locations and times. petersburg.org

Seldovia 24-26

Woodcarving Contest

This annual events attracts chain saw artists from around Alaska. Different prices are awarded each year, including a People’s Choice. The carvings are kept in Seldovia to add points of interest to the village, though occasionally they are given to the artists to keep or sell. Downtown Seldovia, 12 p.m. seldoviachamber.org

Talkeetna 18-19

Cliff Hudson Memorial Fly-In

This event honors the aviation legacy of Cliff Hudson and the Hudson Aviation family. Activities include a poker run, aircraft performance demonstrations, fly-over, silent auction, pancake feed and Young Eagles flights. Talkeetna Airport and other locations, various times. talkeetnachamber.org

Valdez 10-12

May Day Fly-In and Air Show

Bush pilots from Alaska and the rest of the world compete in events such as flour bombing, short takeoffs and landings, and a poker fun run. Valdez Airport, various times. valdezalaska.org

VAC Annual Picnic Featuring: Your Burnable Art

The Valdez Arts Council sponsors this event, which includes a barbecue, entertainment by 2twice as Good, a bonfire and Your Burnable art, where participants throw art or other items onto the burn pile to symbolize release and letting go. Dock Point Pavillion, 6 p.m. valdezartscouncil.org

Yakutat 5/30-6/2

Yakutat Tern Festival

This festival supports, unifies, and educates the community while celebrating Aleutian terns. Activities include field trips, children’s activities, Native cultural events including dancing and story-telling, art shows and exhibits, and speakers and seminars. Various locations and times. yakutatternfestival.org May 2013 | Alaska Business Monthly

125

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AME

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MATERIALS EXCHANGE

an Alaska-based online business-to-business exchange for usable commercial and industrial items

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GREEN STAR -- Certifying businesses for a more sustainable Anchorage.

Transportation Tank & Trailer SERVICE CENTER • Sales • Service • Parts Before

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• National Board “R” Stamp & DOT Inspections & Certifications • Leak Repairs, Rebarrels & Tank Change Outs • Bottom Loading, Vapor Recovery Conversions, Pumping Systems • Large Parts Inventory Service – Contact Wayne Walker Parts – Contact Wayne Olsen West-Mark Service Center 3050 Van Horn ~ Fairbanks, AK

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Alaska Business Monthly | May 2013

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ALASKA TRENDS

By Paul Davidson

Government Employment in Alaska A shrinking giant

Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

overnment employment Government Employment in Alaska plays a big role in Alaska. Between 2001 and 2012 1990-2012 about one in four people working 50,000 in Alaska had government jobs. 45,000 The proportion of government 40,000 jobs to total jobs is much higher in Alaska than the United States as a 35,000 Local whole. According to data from the 30,000 federal Bureau of Labor Statistics, State 25,000 U.S. government jobs make up Federal 20,000 16.21 percent of total U.S. employment for the period 2002 to 2011. 15,000 Government jobs make up 26.27 10,000 percent of Alaska employment ac5,000 cording to the State of Alaska for the same period. The State of Alaska Department of Labor and Workforce Development’s Research and Analysis Division publishes local, state and Federal government employment data. The chart shows a dataset shows Alaska’s government employment growth as peak in federal employment in 1993 without much subse- 0.65 percent on average between 2002 and 2012. Alaska’s quent growth. Local government employment data shows total job growth is 1.19 percent during the same period, 36.37 percent growth from 1990, while state government showing a trend of private job growth of near double that jobs increase by 20.1 percent over the same 22 years. The of government job growth.  SOURCES: U.S. Bureau of Labor Statistics: www.BLS.gov • State of Alaska Department of Labor and Workforce Development: http://laborstats.alaska.gov

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

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May 2013 | Alaska Business Monthly

127

ALASKA TRENDS

Indicator

GENERAL Personal Income–Alaska Personal Income–United States Consumer Prices–Anchorage Consumer Prices–United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total EMPLOYMENT Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Sectorial Distribution–Alaska Total Nonfarm Goods Producing Services Providing Mining and Logging Mining Oil & Gas Construction Manufacturing Seafood Processing Trade/Transportation/Utilities Wholesale Trade Retail Trade Food & Beverage Stores General Merchandise Stores Trans/Warehouse/Utilities Air Transportation Information Telecommunications Financial Activities Professional & Business Services Educational & Health Services Health Care Leisure & Hospitality Accommodation Food Services & Drinking Places Other Services Government Federal Government State Government State Education Local Government Local Education Tribal Government Labor Force Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Unemployment Rate Alaska Anchorage & Mat-Su Fairbanks 128

By Paul Davidson

Units

Period

Latest Report Period

Previous Report Period (revised)

US $ US $ 1982-1984 = 100 1982-1984 = 100

3rd Q12 3rd Q12 2nd H12 2nd H12

34,050 13,397,827 206.62 230.34

33,918 13,327,797 205.22 228.85

33,785 13,229,347 202.58 226.28

0.78% 1.27% 1.99% 1.79%

Number Filed Number Filed Number Filed

January January January

59 44 8

30 26 3

56 40 5

5.36% 10.00% 60.00%

Thousands Thousands Thousands Thousands Thousands

January January January January January

333.49 188.80 42.23 34.34 34.26

337.73 192.30 54.04 34.67 34.00

332.76 186.90 42.27 34.74 34.83

0.22% 1.01% -0.11% -1.16% -1.63%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January

314 40.1 374.1 16.6 16.4 13.6 14.3 9.2 7.2 61.0 5.9 34.8 6.1 9.8 20.3 5.5 6.0 3.9 12.9 27.0 47.0 33.4 27.8 6.5 17.6 11.2 81.2 14.8 24.5 6.6 41.9 23.6 3.4

319 37.8 281.4 17.2 16.8 13.7 15.2 5.4 2.6 62.8 6.0 35.9 6.2 10.2 20.9 5.6 6.1 4.0 13.0 27.3 47.2 33.4 28.6 6.7 18.0 11.5 84.9 15.5 26.5 8.6 42.9 24.4 3.5

308.5 36.8 271.7 15.4 15.3 12.8 11.6 9.8 7.0 59.3 5.9 34.0 6.1 9.8 19.6 5.5 6.3 4.1 14.5 25.6 45.4 31.7 27.8 5.6 18.2 10.6 82.2 15.9 24.1 6.5 42.2 25.2 3.7

1.85% 8.97% 37.69% 7.79% 7.19% 6.25% 23.28% -6.12% 2.86% 2.87% 0.00% 2.35% 0.00% 0.00% 3.57% 0.00% -4.76% -4.88% -11.03% 5.47% 3.52% 5.36% 0.00% 16.07% -3.30% 5.66% -1.22% -6.92% 1.66% 1.54% -0.71% -6.35% -8.11%

Thousands Thousands Thousands Thousands Thousands

January January January January January

361.58 201.62 45.48 37.57 37.89

363.05 203.76 56.92 37.44 37.38

361.99 200.55 45.69 38.06 38.64

-0.11% 0.53% -0.46% -1.30% -1.94%

Percent Percent Percent

January January January

7.8 6.4 7.2

7 5.6 6.1

8.1 6.8 7.5

-3.70% -5.88% -4.00%

Alaska Business Monthly | May 2013

Year Ago Period

Year Over Year Change

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ALASKA TRENDS

By Paul Davidson

Units

Period

Latest Report Period

Previous Report Period (revised)

Percent Percent Percent

January January January

8.6 9.6 8.5

7.4 9 7.6

9 10.1 8.8

-4.44% -4.95% -3.41%

January January January January January January January January January

17.01 9.40 109.88

17.21 9.46 107.31

18.36 10.07 119.65

-7.34% -6.61% -8.17%

9 1756 1,671.42 31.11 1.016435

7 1784 1,687.94 32.96 1.01658

8 2003 1,656.11 30.77 1.03

12.50% -12.33% 0.92% 1.10% -1.32%

Millions of $ Millions of $ Millions of $

January January January

31.46 10.98 20.48

29.18 3.94 25.25

18.10 4.99 13.11

73.81% 119.96% 56.25%

Total Deeds

January

1195*

1246*

939*

27.26%

Total Deeds

January

275

335

258

6.59%

VISITOR INDUSTRY Total Air Passenger Traffic–Anchorage Total Air Passenger Traffic–Fairbanks

Thousands Thousands

January January

323.70 66.68

347.67 71.05

322.98 62.13

0.22% 7.32%

ALASKA PERMANENT FUND Equity Assets Net Income Net Income–Year to Date Marketable Debt Securities Real Estate Investments Preferred and Common Stock

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

January January January January January January January

44,752.50 45,895.60 178.3 1,028.9 72.6 103.80 859.8

43,654.80 44,275.10 364.9 607.3 (11.2) 5.12 399.9

40,076.90 40,710.90 85.4 1,341.2 123.6 37.8 1,044.9

11.67% 12.74% 108.78% -23.29% -41.26% 174.60% -17.71%

BANKING (excludes interstate branches) Total Bank Assets–Alaska Cash & Balances Due Securities Net Loans and Leases Other Real Estate Owned Total Liabilities Total Bank Deposits–Alaska Noninterest-bearing deposits Interest- bearing deposits

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12

2,191.15 61.20 169.47 1,137.65 8.01 1,917.02 1,863.43 599.95 1,263.48

2,100.47 56.74 163.91 1,129.26 8.21 1,832.07 1,787.23 527.08 1,260.16

2,105.62 49.64 156.23 1,097.05 7.05 1,847.06 1,800.05 543.72 1,256.33

4.06% 23.30% 8.48% 3.70% 13.69% 3.79% 3.52% 10.34% 0.57%

FOREIGN TRADE Value of the Dollar In Japanese Yen In Canadian Dollars In British Pounds In European Monetary Unit In Chinese Yuan

Yen Canadian $ Pounds Euro Yuan

January January January January January

88.94 0.99 0.63 0.75 6.28

83.64 0.99 0.62 0.76 6.29

76.96 1.02 0.64 0.78 6.31

15.56% -2.75% -2.26% -3.45% -0.46%

Indicator

Southeast Gulf Coast United States

PETROLEUM/MINING Crude Oil Production–Alaska Millions of Barrels Natural Gas Field Production–Alaska Billions of Cubic Ft. ANS West Cost Average Spot Price $ per Barrel Hughes Rig Count Alaska Active Rigs United States Active Rigs Gold Prices $ Per Troy Oz. Silver Prices $ Per Troy Oz. Zinc Prices Per Pound REAL ESTATE Anchorage Building Permit Valuations Total Residential Commercial Deeds of Trust Recorded Anchorage—Recording District *Source: GeoNorth Fairbanks—Recording District

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Year Ago Period

Year Over Year Change

May 2013 | Alaska Business Monthly

129

Advertisers Index AES Alaska Executive Search.................43 Alaska Air Transit........................................122 Alaska Aviation Heritage Museum................................124 Alaska Dreams Inc........................................113 Alaska Interstate Construction LLC....................................79 Alaska Media Directory.......................... 126 Alaska Rubber ................................................117 Alaska Ship & Drydock Co.......................97 Alaska Tobacco Control Alliance..........11 Alaska Traffic Company.............................96 Alaska USA Federal Credit Union....... 21 Alyeska Pipeline Service Co. ..................71 American Marine / PENCO...................127 Anchorage Opera........................................124 Arctic Controls................................................. 57 Arctic Office Products ( Machines)....89 AT&T .......................................................................13 Bering Shai Rock & Gravel ...................... 77 Bowhead Transport Company..............67 BP .....................................................73 Business Insurance Associates Inc.....69 Calista Corp./Futaris....................................75

130

Carlile Transportation Systems...........131 Childrenâ&#x20AC;&#x2122;s Miracle Network....................43 Chris Arend Photography......................130 City Electric Inc.............................................121 Construction Machinery Industrial LLC................................................2 Crowley..............................................................103 Cruz Construction Inc..............................119 Delta Leasing LLC...................................... 120 Donlin Gold........................................................ 77 Dowland-Bach Corp................................ 109 Emerald Alaska................................................87 ERA ALASKA.....................................................19 ERA Helicopters.............................................80 Fairbanks Memorial Hospital.................47 Fairweather LLC..............................................17 First National Bank Alaska..........................5 Flint Hills Resources...................................112 Fountainhead Hotels...................................85 GCI..................................................................27, 88 Global Services Inc. .............................55, 69 Golder Associates Inc.................................95 Green Star, Inc............................................... 126 Hawk Consultants LLC...............................86

Alaska Business Monthly | May 2013

Island Air Express........................................123 Judy Patrick Photography........................ 91 Landye Bennett Blumstein LLP............34 Lounsbury and Associates.......................89 Lynden Inc. ........................................................99 MagTec Alaska LLC......................................88 Matanuska Telephone Association.....51 Medical Park Family Care.........................46 Meridian Management Inc.......................63 Municipal Light & Power...........................36 N C Machinery................................................111 NALCO Energy Servivces.........................95 North Star Behavioral Health................45 Northern Air Cargo..............................52, 53 Northland Services....................................... 41 Northrim Bank.................................................23 Northwest Strategies..................................39 Nu Flow Alaska................................................85 Offshore Systems Inc................................114 Olgoonik Development Corp........82, 83 Oxford Assaying & Refining Inc........122 PacArctic Logistics.........................................55 Pacific Alaska Freightways.......................37 Pacific Pile & Marine...............8, 9, 10, 81

Pacific Rim Media/ Smart Phone Creative....................... 126 Paramount Supply...................................... 126 Parker, Smith & Feek.......................................3 Pen Air . ...............................................................115 Personnel Plus...............................................107 Pinkerton . .......................................................... 57 PND Engineers, Inc....................................... 91 Procomm Alaska.............................................72 Rotary District 5010..................................123 RSA Engineering Inc..................................... 57 SolstenXP............................................................72 Span Alaska Consolidators....................118 Stellar Designs Inc.........................................43 Tesoro.................................................................101 True North FCU............................................ 126 UIC Technical Services...............................49 UMIAQ................................................................116 University of Alaska Anchorage - WWAMI..........................46 URS Corporation............................................72 Washington Crane & Hoist.......................33 Waste Management . ...............................105 Wells Fargo .....................................................132 West-Mark Service Center................... 126

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