Alaska Business May 2021

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CONTENTS MAY 2021 | VOLUME 37 | NUMBER 5 | AKBIZMAG.COM

FE AT UR E S 10 TELECOM & TECH Improving rural telecommunication services critical for Alaskans’ quality of life

By Tracy Barbour

Calista Corporation

20 ALASKA NATIVE

Constantly Connecting

Hiring from Within

ANCs help shareholders, descendants enter and excel in workforce

By Vanessa Orr

32 ENERGY Heating Up

Renewed interest in geothermal demands attention

By Danny Kreilkamp

78 MINING

Big Mining, Big Shovels Specialized equipment ensures safety and productivity

By Connor Lochmiter

86 FISHERIES

Catching Up on Alaska’s Fisheries Below average yield in 2020; better news for 2021

By Vanessa Orr

96 ENVIRONMENTAL

Not In My Back-Yacht

Marine industrial debris cleanup a constant need in Alaska

Ahtna Environmental, Alaska Chadux Network Inc.

By Tracy Barbour

QUICK READS 8 FROM THE EDITOR

106 I NSIDE ALASKA BUSINESS

110 ALASKA TRENDS

106 ECONOMIC INDICATORS

108 R IGHT MOVES

112 OFF THE CUFF

4 | May 2021

Alaska Business www.akbizmag.com

We’ve always believed in Alaska. And for nearly a century, First National has helped Alaskans build strong, local businesses and communities. Together, we can build a brighter future.

Like you, we’re here for the long haul.

CONTENTS MAY 2021 | VOLUME 37 | NUMBER 5 | AKBIZMAG.COM

O I L & G A S S P E C I A L S E C T I O N | G E O T H E R M A L H E AT I N G U P | F I S H E R I E S MAY 2021

S P EC I A L S EC T I O N : O I L & G A S 42 WHAT’S GOING ON IN ANWR?

60 MEETING IN THE MIDDLE

Renewables, oil and gas make for a one-two punch in Alaska’s energy sector

By Tasha Anderson

48 OIL SEARCHING

By Arie Henry

COVID-19 pushes Pikka development to pivot

By Amy Newman

66 HILCORP POISED TO MAKE BIG STRIDES IN 2021

By Rindi White

72 VIRUSES AND VOLATILITY

Stabilizing oil prices and the ebbing pandemic are good news for the North Slope

By Melissa Bannigan

76 EXPLORATION/PRODUCTION DIRECTORY

54 WHAT’S COOKIN’ IN THE INLET

Investment is difficult in an uncertain regulatory and fiscal environment

By Joe Keenan

pniesen | iStock

ABOUT THE COVER A wise man once predicted that the times would be a-changin’. Turns out, he was right.

With yet another administration dishing out executive orders left and right, it would appear that change is back on the menu. But questions remain as to how fast… and in what direction?

This month’s cover story aims to address these questions. "Meeting in the Middle" explores the surprisingly dynamic relationship Alaskans have with fossil fuels and renewable energy in an increasingly carbon-concerned world. While the concern is certainly warranted and even acknowledged among Alaska's petroleum players, one thing remains clear: the world still needs oil and gas.

And the latest cover of Alaska Business inspires visions of how fossil fuels and clean energy can coexist.

Cover Art by Monica Sterchi-Lowman

Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2021 Alaska Business Publishing Co. All rights reserved. No part of this publication May be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & October issues. Send subscription orders and address changes to circulation@akbizmag.com.

To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.

6 | May 2021

Alaska Business www.akbizmag.com

Danicia Shiryayev

Mike Huston

Commercial Loan Officer

Chief Lending Officer

W E B A NK ON A L A SK A NS When Alaskans were met with COVID-related challenges, Northrim provided Superior Customer First Service to businesses throughout the state by quickly and efficiently processing thousands of Paycheck Protection Program loans. Because powering Alaska businesses with customized solutions is what we do.

See how we can help you achieve more.

FROM THE EDITOR

Powering Through Change

VOLUME 37, #5 EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate/Web Editor Tasha Anderson 257-2902 tanderson@akbizmag.com

Digital and Social Media Specialist Arie Henry 257-2910 ahenry@akbizmag.com

I

f one were to anthropomorphize Alaska and the oil and gas industry, it could be said they are in a long-term, committed relationship. It’s mostly stable: their friends would say they’re good for each other, but, like any decades-long relationship, they’ve experienced breathtaking highs (remember that time in ‘82 when petroleum revenue accounted for 87 percent of the then-record high $4.1 billion unrestricted general fund? The ‘80s... am I right?) and hard-hitting lows (April 2020 comes to mind) since the two met around 1902.

“The truly first Alaskan oil well with commercial production was completed in 1902 in rugged, coastal territory… the Alaska Steam Coal & Petroleum Syndicate produced oil near the remote settlement of Katalla on Alaska’s southern coast. The small oilfield also led to construction of Alaska Territory’s first refinery,” says the American Oil & Gas Historical Society.

Over the past century the two have grown together, becoming a true “power couple.”

The North Slope alone has produced more than 18 billion barrels of oil since the discovery of Prudhoe Bay in the late ‘60s. Oil production has funded up to 90 percent of the state’s unrestricted general fund revenue in most years and has accounted for more than $180 billion in total revenue since statehood, according to the Resource Development Council.

And, continuing on with our metaphor, the oil and gas industry brings home the proverbial bacon, which the state then uses to make a healthy, happy home. The petroleum industry paid more than $3.1 billion in state and local taxes and royalties in FY2019, including $2.7 billion to state government and $449 million to local governments. It’s not an overstatement to say that Alaska runs on oil. This is one power couple we need to succeed.

So what happens, when, as tends to occur in century-long relationships, something new, a bit younger, perhaps even a little exciting, enters the picture?

Renewable and alternative energy sources have been flirting with Alaska for years and are finally moving in on the couple in a real way. Alaska has a non-binding goal to generate half of its electricity from renewable and alternative energy sources by 2025, according to Rystad Energy.

Last year, renewables accounted for about 28 percent of the state's electricity generation. And it just so happens that Alaska is home to an abundance of renewable energy sources—wind, solar, geothermal, tidal, and biomass are all here, just waiting to be harnessed, and there is no shortage of projects in the works to do just that.

In this month’s cover story, “Meeting in the Middle,” we delve into the relationship between Alaska, fossil fuels, and green energy. We wanted to know: Is there room in this relationship for a third party? The short answer is yes.

It’s easy to try to pit the two industries against one another, but that’s a very simplistic approach to a complex relationship. The truth is that this is not an either/or situation. Embracing traditional and emerging forms of energy production provides the best possible outcome for Alaskans: oil and gas will continue to provide a stable source of income and energy while alternative energy sources offer affordable, sustainable options.

Alaska, meet your new power throuple!

Staff Writer Danny Kreilkamp danny@akbizmag.com

Art Director Monica Sterchi-Lowman 257-2916 design@akbizmag.com

Art Production Linda Shogren 257-2912 production@akbizmag.com

Photo Contributor Kerry Tasker

BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com

VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com

Senior Account Manager Janis J. Plume 257-2917 janis@akbizmag.com

Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com

Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com

Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com

CONTACT

Press releases: press@akbizmag.com

Postmaster: Send address changes to Alaska Business 501 W. Northern Lights Blvd. #100 Anchorage, AK 99503

AKBusinessMonth alaska-business-monthly

Kathryn Mackenzie Managing Editor, Alaska Business

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8 | May 2021

Alaska Business www.akbizmag.com

OUR COMMUNITY NEEDS ALL OF US. Now more than ever.

“When the going gets tough, there’s no better partner than United Way of Anchorage. Together we are people helping people, providing opportunities for our community to be financially secure. This is how we build a stronger and brighter future for all.

We are proud to be part of the United Way community of donors, volunteers, advocates, and partners working together to help our city respond, recover, and emerge stronger.”

Rachel Norman Chief Administration Officer

United Way of Anchorage

TELECOM & TECH

Constantly Connecting Improving rural telecommunication services critical for Alaskans’ quality of life

By Tracy Barbour

A

s a new decade dawns, even the most isolated communities in Alaska are becoming more connected to the rest of the state—and world—thanks to terrestrial microwave, subsea fiber, satellite, and other technology. Alaska’s leading telecommunications companies are making this possible through continuous investments in their infrastructure, improving connectivity in remote areas from the North Slope to Western Alaska to the Aleutian Islands.

Importance of Telecom Services in Rural Alaska

GCI

According to the Centers for Disease Control and Prevention, people who live in rural areas are more likely to die prematurely from heart disease, cancer, and stroke than residents in urban settings. One of the reasons is a lack of access to healthcare, and telehealth helps close this gap by using technology to improve access to doctors and specialists.

Alaska Communications is combatting healthcare disparity by connecting its rural healthcare business partners with access to the technology they need to offer these important services in their local communities. Access to telecommunications services, specifically broadband, has many positive impacts for both rural Alaska residents and businesses, according to Jim Gutcher, vice president of strategy and product management at Alaska Communications. “It helps connect people with critical services, like healthcare and education,” he says. “It can also improve quality of life by providing a link to family and entertainment options.”

10 | May 2021

Alaska Business www.akbizmag.com

Having internet connectivity enriches life in general for rural Alaskans. A prime example is Larsen Bay resident Erik O’Brien, who struggled with worklife balance until the internet literally changed his life. “My saving grace came when Alaska Communications turned on reliable internet,” he explains.

“With these new tools, I was able to negotiate a flexible working environment, ensuring certain obligations to my employer while living and working in Larsen Bay. The best part about the internet in Larsen Bay is disconnecting and spending time in the skiff with my wife and daughters, fishing, exploring, and living the life I always wanted to provide for myself and my family—and the next morning going to work like any other day, just 400 miles away.”

GCI, Alaska’s largest telecommunications provider, is also adamant about delivering technology that helps bridge the digital divide in Alaska’s farthest locales. Increasing connectivity in rural Alaska improves opportunities for everyone, says President and COO Greg Chapados.

Enhanced telecom services not only facilitate the delivery of healthcare and education but also impact staff recruitment and retention in these and other industries.

Explaining the potential professional impact, Chapados says: “You might have people who don’t want to move from home to urban areas. Maybe they don’t have to do that. Maybe they can work in a distributed workforce model and stay in rural Alaska.”

He adds, “We’re creating opportunities for folks that previously felt they were up against the wall: Either you have a career and sacrifice the connections to the community that you love or stay at home and not have a career.”

Connecting Alaskans on the North Slope to technology is the focus at Arctic Slope Telephone Association Cooperative (ASTAC). The cooperative provides residential and business phone and internet services to Deadhorse and eight North Slope communities: Point Lay, Point Hope, Atqasuk, Kaktovik, Utqiaġvik, Anaktuvuk Pass, Wainwright, and Nuiqsut.

Internet service is vital in these locations because they are not roadwww.akbizmag.com

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Alaska Business

May 2021 | 11

Workers on equipment near Kotzebue.

GCI

connected; reaching these areas requires hopping on a boat or plane.

“When you get to these communities, there can be a feeling of isolation,” ASTAC COO Brian DeMarco says.

“Fairbanks is the largest closest city, which is about 120 miles away. The remoteness is real, and the internet eliminates that barrier.”

Having internet access, DeMarco says, has been especially critical for Alaskans during the pandemic because it has helped keep everyone connected and moving in the same direction.

As a member-owned cooperative, ASTAC is keenly interested in using technology to improve the quality of life for its members, who are customers and are also residents of the North Slope. It comes down to connecting people, he says, elaborating: “We want to be able to give them the option. If they want to stay on the North Slope and live a subsistence lifestyle, the internet should not be the deciding factor.”

Michael Burke, CEO of Matanuska Telephone Association (MTA), views broadband internet as an essential element for economic development and a crucial part of society. This is especially true for a colossal state like Alaska, where many communities are located off the road system. In fact, 12 | May 2021

Burke says, making improvements to telecom infrastructure is probably more important in Alaska than in other parts of the country because of its remote nature. “That electronic connection is critical for the people up here; without it, it is difficult for anyone to function,” Burke says.

Alaska Communications Increases High-Speed Internet Service In 2020 alone, Alaska Communications launched or expanded high-speed service available to homes and businesses in Delta Junction, Fairbanks, Homer, Hope, Kake, Kasilof, Kenai, Ninilchik, North Pole, Soldotna, Sterling, and Thorne Bay. This expansion is funded, in part, by the Federal Communications Commission (FCC) Connect America Fund Phase II program.

The company employs a variety of technologies in rural settings, including fiber, digital subscriber line (DSL), microwave, fixed wireless, and satellite. Gutcher explains: “We use the best technology solution available, depending on population density, location, geography/terrain, and obstructions. We’re always looking at upcoming innovations to improve rural connectivity.”

Connecting rural areas requires heavy investment in what is known as middle mile and last mile. Middle mile is the segment of the network linking the core network to the rural area providing the backhaul while the last mile refers to the network components that deliver the connectivity to the customer. “Bridging the digital divide requires long-term investment, including investing in accessible and affordable middle mile infrastructure,” Gutcher says.

Jim Gutcher Alaska Communications

Alaska Communications has a number of projects underway to expand and improve connectivity. In 2021, it is expanding and upgrading

Alaska Business www.akbizmag.com

its network to deliver high-speed internet to more statewide locations.

This includes enhanced speeds and increased availability in both rural and urban areas of Alaska. “These network improvements demonstrate our commitment to providing our customers with the services they need to access work, education, healthcare, and more,” Gutcher says.

He continues, “As part of its CAF II program—bringing high-speed access to rural areas—we chose to deliver higher speeds up to 50 Mbps [megabits per second] download and 10 Mbps upload whenever possible to deliver additional value to our customers.”

Another example is Alaska Communications’ high-speed internet option for multi-dwelling units, InternetNow. Fiber to the building lets an individual unit/room/apartment instantly connect to speeds of up to 250 Mbps upload and download. “This unprecedented upload speed provides an outstanding experience for gaming, streaming, and more,” Gutcher says. “Two examples of rural locations where we offer InternetNow are Whittier and Fort Wainwright military base.”

In Alaska’s more populated areas like Anchorage and Fairbanks, Alaska Communications has plans to provide internet speeds of up to 1 gigabyte with Xtreme Internet. The service will launch in the Fairbanks area in May and later this year in Anchorage.

There are many challenges that come with connecting remote areas.

Alaska Communications’ technicians travel by plane, boat, four-wheeler— whatever it takes—to make repairs or install new services at out-of-the way locations. They often pack along their own food and have limited lodging options. “While in Thorne Bay installing new service, Tim White, Alaska Communications’ network technician foreman, got creative with his sleeping arrangements,” Gutcher says. “Rather than sleep in our central office, Tim slept in his silicone-poly tent. He also designed and made a hammock and sleeping bag. This is an excellent example of the ingenuity, grit, and dedication Alaska Communications employees have to their customers and communities.”

From a broader perspective, Gutcher says that a connected rural Alaska is www.akbizmag.com

good for the state’s residents and for its businesses. “Innovation is an ongoing driver to keep pushing the boundaries, finding new ways to bring internet to more locations, and with higher speeds,” he says. “Alaska Communications is committed to investing in Alaska.”

ASTAC Improves Wireless Coverage and Safety Anchorage-based ASTAC is making substantial improvements to its telecom infrastructure. Over the last three years, the company has deployed

Alaska Business

Long Term Evolution (LTE) in the nine communities in its coverage area.

In January, ASTAC expanded its wireless network to install three new 4G LTE sites on the Dalton Highway, making it the first telecommunications company to provide wireless coverage from the Brooks Range to Deadhorse—where no other coverage had existed previously. The new wireless sites will enhance safety and connectivity along this 414-mile critical corridor for ASTAC and AT&T wireless customers. ASTAC plans to

May 2021 | 13

turn up three additional sites on the Dalton Highway in this year.

“We’ve made significant progress for how people can stay connected, and we are proud of that,” DeMarco says.

Having good wireless coverage on the Dalton highway is important because it facilitates the movement of vehicles, personal goods, and other necessities for residents and travelers. “We continue to make sure that we’re providing communications and covering the corridors that our customers travel as much as we can,” DeMarco says.

Other improvements ASTAC is making to enhance rural areas include augmenting its fiber network and broadband service in Atqasuk under a $3 million Community Connect Grant from the US Department of Agriculture (USDA); expanding broadband to Kaktovik as part of a $5.3 million grant under the USDA’s RUS Rural E-Connectivity program; and bringing the fastest internet speed to the North Slope through its Home Internet 25+ service.

Since 2015, ASTAC has invested more than $50 million in its

fiber optic networks and other telecommunications infrastructure in Alaska. DeMarco says it’s exciting to transform telecommunications in the communities ASTAC serves. However, he adds, ASTAC would not be where it is today without Quintillion’s subsea fiber, which has propelled telecom on the North Slope.

Brian DeMarco ASTAC

ASTAC is a “small company doing big things,” DeMarco says. And it thrives on enhancing services for customers wherever there is an opportunity. He

says, “We are always trying to extend our network to provide seamless coverage and a standard for our customers that they can come to expect.”

GCI Focuses on Expanding Broadband GCI provides data, mobile, video, voice, and managed services to consumer, business, government, and carrier customers throughout Alaska, serving more than 240 communities.

Over the past forty years, the company has invested more than $3 billion in its Alaska facilities and network—with a large chunk of that investment made in rural Alaska.

Currently, GCI is focused on expanding its terrestrial broadband networks in rural Alaska through fiber.

Fiber is the gold standard because of its reliability, low latency, enormous capacity, and long life. “When we deploy fiber, it is a future-proof solution,” Chapados says. “As demand increases, we can increase the backbone capacity to meet that demand.”

Despite its advantages, fiber is not always the most feasible solution for delivering technology because

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14 | May 2021

Serving Alaska since 1978 Alaska Business www.akbizmag.com

it requires a significant upfront investment. Because of this, Chapados says, GCI still believes there is a role for satellite in Alaska, including geosynchronous satellite. And the company is exploring options with low earth orbit (LEO) satellites.

Federal funding like the $25 million USDA ReConnect grant GCI received last year helps facilitate fiber-related improvements in Alaska. The grant, which GCI is matching with $35 million, will be used to support GCI’s AU-Aleutians Fiber Project. The project will provide terrestrial broadband service for the first time to Unalaska/ Dutch Harbor—home to the country’s largest fishing port—and five other Aleutian communities: King Cove, Sand Point, Akutan, Chignik Bay, and Larsen Bay. As part of this undertaking, the company will lay 800 miles of fiber undersea over the next several years, running from Kodiak along the south side of the Alaskan Peninsula and the Aleutians to Unalaska.

"Creating reliable, fast service in the Aleutians will bring life-changing opportunities to the people who live there,” Chapados says. “High-speed, 1

www.akbizmag.com

Alaska Communications provides rural healthcare business partners the technology needed to offer telehealth to their communities.

Alaska Communications

Gig home internet will be a reality for the first time, providing an opportunity to use streaming services and home e-learning tools.”

Continuing, he says: “Fiber-based connectivity will be a game-changer for local industries, too… GCI's 1 Gig

Alaska Business

service will be as good or better than service available in many Lower 48 urban centers including Chicago, Los Angeles, and New York City."

GCI also initiated a project to bring faster data speeds to Bristol Bay last year. The company launched

May 2021 | 15

its first upgraded wireless sites in Dillingham as part of a project to provide improved voice service and faster mobile data speeds to the area.

And in January, GCI announced a partnership with Quintillion—the only telecommunications company providing fiber-optic broadband to Alaska’s Arctic communities—that will result in improved services in Nome and Kotzebue. The partnership will provide the residents of both communities access to 1 Gig internet speeds like those in Anchorage and Fairbanks, transforming their telecommuting and streaming options. “That’s a massive change; it’s bringing the urban experience out to rural Alaska,” Chapados says.

Greg Chapados GCI

The partnership with Quintillion also will bring internet protocol television (IPTV) services and support GCI’s ongoing upgrade to 4G LTE wireless service for Nome and Kotzebue residents. In addition, GCI is exploring the option of expanding fiber service to Bethel. The timeframe for making this project happen would be in the next three to five years, Chapados says.

Leonardo DRS Continues to Invest in Alaska As part of its effort to improve rural telecom in Alaska, Leonardo DRS continues to invest in infrastructure, research and development, industry relationships, and its people. Leonardo DRS—formerly DRS Technologies—is an Arlington, Virginia-based defense contractor that has been doing business in Alaska for nearly twenty years. The company is making ongoing investments in its approximately 60016 | May 2021

mile, self-funded microwave network from Fairbanks, following the Yukon Koyukuk River to Allakaket. “Our Alaskan network also includes satellite connectivity with redundant satellite teleports and fiber circuits spanning Alaska’s northern arctic coast down through Deadhorse, Fairbanks, and to Anchorage, which now connects to the Leonardo DRS Global Communications Network [GCN],” says Anchorage-based Business Development Manager Vickie Kelly.

“By integrating the Alaskan network into the robust Leonardo DRS GCN, Alaska customers benefit from the increased availability, security, and resiliency that our other missioncritical US government customers rely on. Leonardo DRS also invests in regular technology refreshes to eliminate communication bottlenecks and obsolescence while also increasing speed and capacity.”

The company’s research and development investments include the addition of the Leonardo DRS Information and Communication Technology (ICT) Customer Portal as well as testing, evaluation, and integration of emerging technologies such as LEO satellite services. “LEO is of high interest to the communications market because it provides highspeed, low-latency internet access to rural areas,” Kelly says. “Furthermore, LEO service is best suited for Alaska and polar regions because it eliminates scan angle restrictions applicable to the GEO and MEO [medium earth orbit] satellites. As the top provider of satellite communications to the US government, the LEO operators are working with us to bring this much needed service into the Leonardo DRS ICT Ecosystem.”

Recently, Leonardo DRS has undertaken initiatives that entail technology refresh and augmentation of its existing infrastructure that includes LEO satellite connectivity.

The integration of LEO services into the company’s ICT Ecosystem, Kelly says, is probably the most interesting of its current projects designed to improve connectivity to rural Alaska.

Leonardo DRS is in the initial service testing phase of the integration. “We are convinced that this LEO service integration would not be possible if it

were not for our position as the top commercial satellite integrator for the US government,” she says. “Having the depth of experience, along with the breadth of our customers, is what provides the LEO operators the confidence to work with us.”

She continues: “We are working with leading LEO operators, and we will provide the services that meet our Alaska customer requirements, such as throughput, capacity, near-real time latency, high resiliency, and availability.”

Additional Leonardo DRS projects to enhance connectivity to rural Alaska include upgrades to its selffunded microwave backbone and to two satellite communication teleport hubs in Fairbanks and in Brewster, Washington. “These improvements enhance auto-correction to redundant nodes when the need arises, ultimately improving network resiliency and bringing better communications to Alaska,” Kelly says.

Leonardo DRS also recently completed an extension of its microwave network to Indian Mountain to serve the communities of Allakaket and Alatna.

MTA Takes Fiber to More Homes and Businesses Established in 1953, Palmer-based MTA provides high-speed broadband and fiber internet, among other services, to help its member-owners and patrons live a connected life.

Last year, MTA was awarded a $1.9 million grant from the USDA ReConnect Program, which focuses on building broadband infrastructure in rural America. MTA will use the grant to deploy a fiber-to-the-premises network, connecting 463 people to high-speed broadband in the Matanuska-Susitna Borough, passing 220 lots and connecting 65 structures.

Like many companies in Alaska, MTA received funding from the FCC under the Alaska Plan to upgrade and extend broadband services. The Alaska Plan, approved in August 2016, secured $152 million of federal funding per year through 2026 to support wireless and internet service upgrades.

In the last four years, MTA has invested $155 million in network improvements to meet increased demand for greater bandwidth. The recently completed

Alaska Business www.akbizmag.com

GCI moving equipment near Kotzebue.

connect with each, especially those people who rely on public WiFi spots, such as libraries and cafés. To help close that connectivity gap, MTA established WiFi hotspots for the public. “There were a number of people who relied upon libraries for their internet connections, so we set up free, public WiFi—thirtythree hotspots,” he says. “That way, they still had that connectivity.”

Burke goes on to say, “When COVID hit, we enabled distance learning for students. There are 3,000 local students and educators, and we gave them those upgrades free of charge.”

Residents, businesses, and government offices have given MTA positive feedback about its efforts to keep everyone connected— especially during the pandemic. Burke says: “I think as people have had a greater need for internet, they really appreciate us. We’ve gotten calls from outside our service area from people who are interested in what we have been doing.”

GCI

Michael Burke MTA

AlCan ONE fiber optic line is a crucial upgrade that makes it easier for MTA to adapt to its customers changing and expanding needs. “We did that because we know the internet continues to grow, and we need capacity to feed that,” Burke says.

AlCan ONE is the first and only allterrestrial fiber route that connects Alaska with the contiguous United States and beyond. The route, which extends through several Canadian carriers, is designed to ensure the 18 | May 2021

future viability and growth of fiber networks for Alaska.

Eventually, the company plans to get internet speeds up to 1 Gig for all customers in its market, Burke says.

However, with Alaska’s shortened construction season and limited availability of construction crews, it will take a few years to get there.

Along with its planned projects, like putting in fiber for residential and commercial customers, MTA has made substantial efforts to help Alaskans

MTA has also garnered industry recognition recently for its efforts to improve rural telecom. For example, the company was honored with the FCC’s Digital Opportunity Equity Recognition or DOER Award for going the extra mile to provide internet access during the pandemic. Burke says, “We were very proud and touched that the FCC gave that to us because only a few companies received it.

“This is a race that will never end; broadband will continue to evolve, and the needs will continue to grow,” he says.

Alaska Business www.akbizmag.com

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A L A S K A N AT I V E

Hiring from Within ANCs help shareholders, descendants enter and excel in workforce

By Vanessa Orr

M

any entry-level employees dream of working their way through the ranks to attain management positions or perhaps someday becoming corporate CEOs. And while they may not all end up in the proverbial corner office, shareholder hire helps Alaska Native corporation (ANC) shareholders and descendants begin climbing that corporate ladder quickly.

Federal law allows Alaska Native corporations that were formed by ANCSA to practice shareholder hiring preference, letting the corporations prioritize employment opportunities for ANC shareholders and their descendants.

“Our overarching strategic goal is to increase shareholder employment and development,” says Carol Wren, Bristol Bay Native Corporation’s (BBNC) vice president of shareholder development. “This is broad in scope because we operate in a lot of different industries. Our goal is to provide shareholders, their spouses, and descendants with hiring preference within all of our jobs.”

In addition to hiring preference, ANC shareholders have access to resources to help them find these

jobs. They’re also offered training and education to help them excel in leadership positions.

“One of our main strategic goals is to empower our people with options and opportunities through advancement of their careers and employment opportunities,” says Bering Straits Native Corporation (BSNC) Shareholder Development Director Lucille Sands. “Our metrics and annual goals include increasing employment for our people at all levels of the corporation.”

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Alaska Business

May 2021 | 21

“One of our main strategic goals is to empower our people with options and opportunities through advancement of their careers and employment opportunities.

Our metrics and annual goals include increasing employment for our people at all levels of the corporation.”

Lucille Sands Shareholder Development Director Bering Straits Native Corporation

Reaching Shareholders, Recognizing Talent ANCs use a variety of methods to reach their intended audience including social media, direct mail, job postings on websites, and other means such as through email blasts.

At Calista Corporation, for example, the Shareholder Development Department not only collaborates with its in-house corporate communications department but also works in partnership with outside entities to reach Calista’s more than 33,700 shareholders. It currently employs shareholders at all levels of the corporation; more than 30 percent of positions at the parent company alone are held by ANC shareholders or descendants.

22 | May 2021

Shareholder Seth Kruse participated in Training Without Walls, BBNC’s two-year management and leadership development program. He now works for the CCI Group under BBNC’s construction business line.

BBNC

“We have to be creative, especially to reach shareholders in villages that may not have reliable internet connections or access to social media,” says Calista Workforce and Shareholder Development Supervisor Brenda Pacarro. “We do have a variety of social media platforms and online newsletters, but we also send out quarterly print Storyknife newsletters to reach our shareholders as well.

“In addition, we partner with programs like the Alaska Native Science & Engineering Program at the University of Alaska to reach out to students, and we work with our tribes and village

corporations to spread our messages even further.”

When Calista expanded shareholder enrollment to include descendants five years ago, it targeted its approach to reach this younger audience. “We saw that 80 percent of applicants had email addresses, so we went into the digital world, which included using social media to reach them,” says Thom Leonard, director of Calista corporate communications and shareholder services. He adds that while virtually all these applicants are fluent in English, the corporation also incorporates cultural language into its messaging.

Alaska Business www.akbizmag.com

Frieda Seebold, Calista office manager and shareholder, is originally from Mekoryuk.

Calista Corporation

BBNC’s Shareholder Development Department works closely with its communications manager to publicize job openings, which are shared through direct mail and social media. The corporation also maintains its own talent bank and centralizes its job listings, including those of its subsidiaries, on the BBNC website.

“We have individuals across the company that are paying attention to shareholder applications to make sure that we are identifying and hiring qualified shareholders for our jobs,” says Wren. “We look at all of the opportunities for shareholders, no matter what their level of experience or the location of the corporate office or our subsidiaries; we try to meld where they are coming from with the opportunities we have available.”

At BSNC, the human resources and Shareholder Development Departments identify and track shareholders and descendants through their Enterprise Resource Planning system. “We are working on building out a talent bank to use for sourcing and recruitment,” says Sands, adding that the corporation www.akbizmag.com

In unity, we accomplish great things.

P.O. Box 49, Kotzebue, AK 99752 (800) 478-3301 nana.com Alaska Business

May 2021 | 23

Steven “Wally” Gosuk works in the Shareholder Corporate Relations Department at BBNC. He started his career as a summer intern and was hired by the corporation upon completion.

BBNC

“When I first started at Calista ten years ago, we had seven positions in our internship program. Now there are about thirty-five positions, not just in our corporate office in Alaska but at our subsidiaries in five different states.”

Brenda Pacarro, Workforce and Shareholder Development Supervisor, Calista Corporation

24 | May 2021

currently has a talent profile for 1,270 shareholders and descendants. “We use this stored talent profile information for targeted outreach.”

BSNC will be moving this information onto a shareholder-facing online platform within the next year where each shareholder or descendant will have access to create and edit their individual talent profiles.

“This will allow shareholders to update their profiles to ensure that we have the necessary information to enhance our sourcing and recruiting processes,” says Sands, adding that the talent bank is an important resource for managers and shareholder development to recruit shareholders and descendants as new openings become available.

Many ANCs have also established internship programs to feed the hiring pipeline.

“When I first started at Calista ten years ago, we had seven positions in our internship program,” says Pacarro.

“Now there are about thirty-five positions, not just in our corporate office in Alaska but at our subsidiaries in five different states.”

The internship program at subsidiary Yulista Holding, for example, attracts many college age descendants to its location in Huntsville, Alabama.

“We have had a lot of success in the last couple of years recruiting those interns to be full-time employees,” says Pacarro.

BSNC’s Summer Internship Program gives interns the ability to work in a variety of departments and participate in training sessions on topics ranging from government contracting to elementary Iñupiaq.

BBNC offers internships across its companies, giving shareholders and their descendants the chance to explore careers at the corporation while developing the technical skills they need to become qualified candidates for future career opportunities.

The corporation also partners with organizations like tribal offices, small businesses, and nonprofits to host internships that align with career goals and interests.

Rising Through the Ranks BBNC encourages employees to create a development plan and to work

Alaska Business www.akbizmag.com

Alaska Native Science and Engineering Program student Katherine Sakeagak, who is double majoring in math and civil engineering, conducts research on the UAA campus.

James Evans | University of Alaska Anchorage

with their supervisors on short- and long-term goals, according to Wren.

“We then provide them with the resources they need to pursue those goals, whether credentials, longerterm education, or mentorship; they may go in different directions, depending on the industry,” she says.

“We also provide financial support to pursue those goals.”

BBNC shareholders and their descendants can participate in Training Without Walls, a two-year management and leadership development program.

It includes two-day sessions held three times per year that provide one-on-one coaching, panel presentations, group discussions, and case studies. The program also helps participants build a professional network with leaders from Bristol Bay and the Native community.

BSNC shareholder and descendant employees also have access to training funds and development plans through their employment.

26 | May 2021

BSNC President and CEO Gail Schubert (center front) with the corporation’s 2019 summer interns as well as several BSNC employees who participated in the summer internship program and have since been hired on full time.

Kerry Tasker

Alaska Business www.akbizmag.com

Ruth Alstrom, Calista’s assistant office manager and shareholder, is originally from Napakiak.

Calista Corporation

The Shareholder Development Department, created in June of 2019, is working on a shareholder and descendant career initiative designed to develop career pathways, grow the corporation’s skilled workforce, and build skills and experience.

“Among many other activities, this initiative aims to enhance shareholder and descendant new hire orientation by equipping our people with knowledge on BSNC’s businesses and corporate culture and how they can use cultural values to succeed in the workplace,” says Sands. “We will provide cultural orientation for all new employees, which will cover important topics such as the intent of ANCSA, understanding and embracing the cultures of our region, and our cultural values.”

The corporation has also focused on providing job-specific training to prepare shareholders for certain positions, such as CDL training for truck drivers. Under a previous apprentice program coordinated in partnership with a Nome nonprofit, several shareholders became electricians.

28 | May 2021

Calista’s newsletter Storyknife is one of many ways the corporation communicates with its shareholders.

Calista Corporation

Alaska Business www.akbizmag.com

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“These employees have a real passion for working for their corporation because it’s where they come from. They are giving back, in a way. They want to see the corporation succeed for years to come—for generations—because it impacts their families; success matters very directly to them. That kind of passion comes through in the work they do for us.”

Carol Wren Vice President of Shareholder Development Bristol Bay Native Corporation

30 | May 2021

Calista’s employees can take advantage of a Manager Training Academy to learn how to be good leaders and to better manage employees. Its shareholders, as well as those of a number of ANCs, can also participate in the Alaska Native Executive Leadership Program (ANELP) at Alaska Pacific University (APU), a graduate certificate created

by APU in partnership with Afognak Native Corporation, Bristol Bay Native Corporation, Chugach Alaska Corporation, The Aleut Corporation, and CIRI. Leonard, who was already enrolled in APU’s MBA program, decided to extend his education by a year to participate in ANELP. “It was an incredible opportunity; I was originally concerned about accepting a director position at Calista, but because of the tools and training ANELP offered, I broadened and strengthened my skill set,” he says. “While on-the-job training still occurs with any position, having that foundational leadership skill set is very important; when opportunities arise, you’re ready to move forward.”

Success Stories There’s no doubt that hiring shareholders and their descendants works—every day, these individuals are helping their corporations succeed.

“Our president and CEO, Andrew Guy, was hired as an intern in the 1980s,” says Pacarro of Guy’s 26-year journey at Calista. “We also have shareholders at our front desk, in human resources, as the director of communications and shareholder services, and as the vice president of lands. Whenever we see that a shareholder is committed and determined to grow, they catch our eye.”

BBNC’s CEO and the executive director of its education foundation are shareholders as well, as are many members of its workforce. “At the corporate level alone, we have shareholders working as paralegals, as shareholder records specialists, as the communications manager, land manager, cultural program officer, and cultural camp program director, among others,” says Wren.

BSNC’s shareholders have also risen through the ranks and now hold

Andrew Guy Calista Corporation

C-suite positions in the corporate offices, as well as management positions at corporate subsidiaries.

“For the first time in our history, we have a shareholder manager of our subsidiary-owned hotel in Nome,” says Sands. “When the position became vacant, the knowledge of our shareholder base was leveraged to source and recruit a shareholder to run our hotel, and we were also successful in recruiting a shareholder proposal compliance manager, which has led to an increased proposal win rate for the corporation due to the excellent skills and talent that person brought to the position.”

By taking an active role in recruiting shareholders and their descendants for these jobs and helping them advance, the ANCs are not only assisting these individuals but the corporations as a whole.

“These employees have a real passion for working for their corporation because it’s where they come from,” explains Wren. “They are giving back, in a way.

“They want to see the corporation succeed for years to come—for generations—because it impacts their families; success matters very directly to them,” she adds. “That kind of passion comes through in the work they do for us.”

Alaska Business www.akbizmag.com

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ENERGY

T

here’s an infinite supply of clean energy hidden in Alaska—and it’s right under our feet.

By now, most of the state’s residents have probably heard that their home is one of the most geothermally active regions in the world, with the Ring of Fire and countless hot springs decorating the landscape. And while tapping into geothermal heat is by no means a new concept, the resource does have certain advantages over other renewables like wind and solar, particularly as they relate to issues of availability.

Heating

Up

Renewed interest in geothermal demands attention

By Danny Kreilkamp

32 | May 2021

Alaska Business www.akbizmag.com

But if this is common knowledge and the tech is readily available, then why hasn’t the state been able to capitalize on this opportunity?

The way Shaun Peterson sees it—a State of Alaska petroleum geologist with the Department of Natural Resources (DNR)—geothermal is a solution looking for a problem.

“Think in terms of a problem being something like a remote project, such as a seafood plant or mine, located away from the grid,” he says. “That project is going to need a source of local energy and if its location is in close proximity to a geothermal resource, then geothermal could be a solution.”

A common argument as to why geothermal has yet to become a real presence in Alaska’s energy mix is centered around the fact that most of the resources are too far from major population centers.

It’s also important to remember that there’s a certain degree of risk associated with situating a power plant next to (or on top of) an active volcano.

So Alaska’s relationship with one of its most abundant resources is complicated. And it’s a relationship that dates back to the ‘60s, when the concept of using an Organic Rankine Cycle generator on a geothermal resource was first tested at Manley Hot Springs.

Curiously, a few projects across the state are gaining momentum— including one only 80 miles from Anchorage—that could redefine geothermal energy’s role in Alaska.

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But First, Some History When a hotel made of ice opened near Fairbanks in 2004, Forbes described it as the “dumbest business idea of the year.”

That idea, of course, was Bernie Karl’s—he has a lot of them. Karl envisioned the hotel would serve as a calling card to his resort at Chena Hot Springs.

Two years later, Karl swapped the diesel generators that powered the resort in favor of a geothermal system that captures the natural heat of the hot springs. This drastically cut his resort’s electricity rates, from $0.30 to $0.05 per kilowatt hour.

Much like the ice hotel—today operating as the Aurora Ice Museum, www.akbizmag.com

Alaska Business

May 2021 | 33

“Think in terms of a problem being

Rekyjavik, Iceland is an example of a community using geothermal resources for both electricity production and direct use. katatonia82 | istock

something like a remote project, such as a seafood plant or mine, located away from the grid. That project is going to need a source of local energy and if its location is in close proximity to a geothermal resource, then geothermal could be a solution.”

Shaun Peterson, Petroleum Geologist DNR Oil & Gas Division

despite early skepticism—geothermal wasn’t always the obvious answer.

Initially, Karl tasked a young engineer with designing a system that would produce hydroelectricity from a nearby creek.

“They were not considering geothermal at the time because all the reports from the Department of Energy said that the Chena Hot Springs resource wasn’t a high enough temperature to generate power,” explains Gwen Holdmann, who now serves as the director of UAF’s Alaska Center for Energy and Power.

After it was established that the hydropower resource wouldn’t meet the resort’s desired output, Holdmann steered the project in a different direction.

“The reports said you definitely can’t generate power from geothermal,” 34 | May 2021

Alaska Business www.akbizmag.com

Holdmann remembers. “So I just started asking: ‘Why?” The prevailing wisdom at the time was that the water at Chena simply wasn’t hot enough. But like any engineer, Holdmann was relentlessly curious. She recognized that the difference in temperature between the hot water and the cold water resource available at the springs— the two main factors in a successful geothermal equation—was actually similar to other small geothermal plants in the Lower 48.

Holdmann’s questioning eventually led the team to a novel approach: they would use a refrigerant with a lower boiling point as the intermediary fluid for the power cycle.

Karl’s team ended up partnering with United Technologies Corporation, drawn by its PureCycle power generation systems, which were originally designed to capture waste heat from industrial processes.

The PureCycle system was then tailored to fit the hot spring at Chena, and together the companies demonstrated that off-the-shelf refrigeration equipment could be used to generate power.

“It was understood technically that it could be done, but it just hadn’t been done before. By doing that, it’s created this whole renaissance in the industry of using low temperature energy for power generation,” Holdmann says proudly, though also stressing the crucial importance of having a year-round cold water resource readily available.

Today, Chena Hot Springs is the highest-capacity geothermal power plant in the state, fueled by the lowest temperature water used for commercial production in the world.

And Karl has even bigger plans in the works.

It would begin with the construction of a 30 megawatt plant at the base of the volcano, fueled

by Makushin’s 397°F temperatures.

That’s enough power to run all of Unalaska, and progress on the project is well underway.

Karl’s Chena Power teamed up with Ounalashka Corporation to form OCCP. Ounalashka Corporation, which owns 51 percent of OCCP, issued the joint venture more than 7,000 acres of land to move the project forward. This, along with a thirty-year power purchase agreement signed in August of 2020 by

the city of Unalaska, means that Karl’s vision could soon become reality.

“It’s a very good deal for the city,” says Karl, comparing the project’s anticipated electricity rates to the current rates paid for diesel-generated electricity. “It’ll be the cleanest, most productive community in the world.” He adds that OCCP is on track to secure the necessary permits and that first power is expected to be delivered in November of 2023.

The second phase of the project, Karl explains, is installing 40 acres

‘The Cleanest, Most Productive Community in the World’ West of Dutch Harbor on the island of Unalaska lies one of the most historically active volcanoes in the Aleutians. Mount Makushin, having most recently erupted in 1995, is the proposed site for a three-phase plan that Karl believes could be the Biden administration’s posterchild for renewable energy. www.akbizmag.com

Alaska Business

May 2021 | 35

Mount Spurr, located 80 miles from Anchorage, is a potential source of geothermal energy; it is pictured here in 1992, when it’s Crater Peak vent erupted.

Game McGimsey | USGS

of greenhouse that would produce 195,000 pounds of food each week, similar to the set-up at Chena but on a much larger scale. And naturally, it wouldn’t be a Bernie Karl project without a world class hot spring.

“There’s a river coming out of the volcano at about 4,000 feet that’s running hot water,” he says. “We’ll develop that very tastefully to be the most beautiful hot spring in the world.”

Phase three will tackle the carbon emissions produced by the largest fishing fleet in America. According to Karl, 60 percent of all fish in the United States comes from Dutch Harbor, and he’s hoping to address the industry’s emissions by producing 65 million gallons of liquid hydrogen per year—a zero carbon alternative fuel when produced from renewable sources like geothermal.

36 | May 2021

Key to realizing this grand vision is securing the proper financing, an overarching challenge facing renewable energy projects worldwide. But if you ask Karl, he’ll tell you otherwise.

“To me, I see everything as its finished product. A lot of people see challenges but I don’t see any at all; all I see is opportunity. By the end of this year—things are going to look a lot different.”

A Page Out of Iceland’s Book Mount Makushin isn’t the only opportunity drawing interest in Alaska.

In March, Utah-based Raser Power Systems (of parent company Cyrq) was issued an exploration permit for roughly 6,750 acres of state land located near Mount Spurr.

“Mount Spurr is what we keep coming back to decade in and decade

out,” says DNR’s Peterson. “The reason for that is because of its close proximity to a large population center where the energy could more easily be added into existing grids.”

Only 80 miles west of Anchorage, the volcano has been a focal point in the state’s geothermal discussion for years.

And for good reason.

One of the things that makes geothermal such an attractive resource is that it can be harnessed in a few different ways. As well as creating electricity from hot water or steam, geothermally heated water can also be used directly as a heating source.

“Mount Spurr is exciting to me because it’s only 35 miles or so from the Beluga gas field where the transmission system starts,” says Chris Rose, executive director for the Renewable Energy Alaska Project.

Alaska Business www.akbizmag.com

“Theoretically, [in addition to a power plant] you could also physically transport hot water from Mount Spurr into Anchorage and heat a portion of the city.

“It’s a baseload resource that you can use directly to heat buildings, to heat sidewalks, to heat swimming pools, or greenhouses,” he continues. “And Iceland has perfected the use of geothermal resources for both electricity production and direct use.”

During a trip to Reykjavík, Rose saw firsthand what a society running on renewables can look like. And a big piece of that picture was 40 miles of pipeline connecting a geothermal powerplant to the city: “It’s not sophisticated insulation and they hardly lose any temperature—half the buildings and sidewalks are heated with geothermal water from the powerplant,” he recalls. “And the other half comes from actual wells right in the city.”

Raser hasn’t offered any indication as to its development plans, but it isn’t difficult to imagine that Mount Spurr’s potential for mixed use,

Chena Power and Ounalashka Corporation have partnered to form OCCP, which is developing a 30 megawatt power plant to provide energy to Unalaska.

RUBEN RAMOS | iStock

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May 2021 | 37

The Aurora Ice Museum at Chena Hot Springs Resort in Fairbanks offers year-round opportunities for visitors to chill.

Explore Fairbanks

“To me, I see everything as its finished product.

A lot of people see challenges but I don’t see any at all; all I see is opportunity. By the end of this year— things are going to look a lot different.”

Bernie Karl, Owner, Chena Hot Springs

38 | May 2021

coupled with its proximity to a major population center, was a factor in pursuing the lease.

Despite all of this, Peterson was somewhat surprised by Raser’s initial interest. “Compared to the temperatures found at say, Makushin, Raser’s interest is a little harder to explain,” he says.

“Particularly given the results that Ormat came up with.”

During its lease sale in 2008, the DNR issued 36,000 acres of Mount Spurr’s southern flanks to a company called Ormat Technologies. With $15 million in state government assistance, Ormat’s exploration efforts culminated in a well drilled to a depth of 4,000 feet.

Unfortunately, the company didn’t find the temperatures they were looking for, and Ormat abandoned the project.

The DNR’s March press release announcing Raser’s exploration permit states that the Utah-based firm approached the state on the heels of renewed interest in geothermal, along with “advances in exploration technology and techniques.”

What exactly those advances are remains unclear, and Raser was unavailable for comment at the time of publication.

More Questions Than Answers As much as the experts want geothermal to succeed in Alaska, not everyone is as convinced that the resource will become a substantial presence in the state’s energy portfolio as Karl.

Despite the obvious, long-term benefits of swapping hydrocarbons for hydrothermal, the upfront investment needed to kickstart these projects continues to hinder their progress— especially without a clear energy strategy in place.

“Projects like these require investment and commitment over long periods of time,” says Holdmann. “And when we don’t have a strategy around a long-term energy portfolio, it’s really difficult for anyone to make those kind of investment decisions—certainly not the private sector.”

Alaska Business www.akbizmag.com

The Hellisheidi geothermal power plant supplies electricity to the city of Reykjavik.

ATGImages | iStock

“It just hadn’t been done before. By doing that, it’s created this whole renaissance in the industry of using low temperature energy for power generation.”

Gwen Holdmann, Director, ACEP

40 | May 2021

Holdmann goes back to the Iceland model.

“They’ve developed their renewable energy resources and have been able to attract industry, but it was based on a commitment to long-term, cheap power for those industries,” she explains.

Peterson agrees, pointing to the state and federal subsidies that have been key to previous geothermal efforts.

Relying on his earlier analogy, he adds: “As people get excited about wanting to harness geothermal energy to address climate change, it’s worth remembering that it will likely cost more than existing energy demand solutions, at least in the short to midterm. A geothermal project will probably need to be subsidized in some way if it is not providing

a very specific solution to a very specific problem.”

But there’s no denying that the state’s geothermal engine is revving, perhaps fueled by the concern of a warming climate and a cooling oil industry. To echo the bullish Karl once more, by the end of the year… things really could look a lot different.

“There’s a lot of movement and momentum, partly because of the administration and congress has changed,” says Rose on the push towards sustainable energy. “Also, because the prices of everything are going down so fast: batteries have come down 85 percent in the last decade, solar has come down almost 90 percent… everything is moving in a direction where we need to go.”

Alaska Business www.akbizmag.com

WORKING TOGETHER Humanity’s most important accomplishments are achieved through inclusion and cooperation. Life is about figuring out how to navigate this world together while making it better for everyone. It’s about working together to ensure that what we’re doing today makes for a stronger tomorrow.

Our voice . Our v i s ion .

voiceofthearcticinupiat.org

By Tasha Anderson

42 | May 2021

Alaska Business www.akbizmag.com

troutnut | iStock

OIL & G A S SPECIAL SEC TION

What’s Going On in ANWR?

[The] lease sale was a historic event and decades in the making… While the results may not have been as robust as we might have expected, industry still supports future access to this area. ” Kara Moriarty, President/CEO, Alaska Oil and Gas Association

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On December 7, 2020, an official notice of sale for leases in ANWR was published to the Federal Register with a Detailed Statement of Sale with information about the process and requirements on bidding for the thirtytwo tracts available.

Bids needed to be submitted between 8 a.m. on December 21, 2020 and 4 p.m. on December 31, 2020; Alaska would close out 2020 anticipating the results of a longsought, long-fought first industry entry into ANWR.

The Tax Cuts and Jobs Act of 2017 included a provision that opened the 1002 Area to oil and gas exploration and drilling. The act passed the US Senate and House of Representatives and was signed into law by then-President Donald Trump on December 22, 2017.

Two years later a final EIS was published for the 1002 Area, and a ROD approving a leasing program was signed by then-Secretary of the Interior David Bernhard.

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OIL & G A S SPECIAL SEC TION

C

onsidering how far away the Alaska National Wildlife Refuge (ANWR) is from almost anything, maybe it makes sense that the road to any development there has proved long—and convoluted and full of protest signs.

It’s a highly contested area in which, to date, not much has really happened. For many, that’s the point: The Wilderness Society, an organization with the stated mission “to protect America’s wild places” has asserted that it is “committed to ensuring that drill rigs never touch ground within the Arctic Refuge and that, eventually, the entire refuge will be permanently protected.”

This is the continuation of a sentiment of “preserving Alaska” that’s been kicked around since before statehood. For example, in 1929 Bob Marshall, a forester, visited the area and subsequently published an article in which he vehemently defended wilderness preservation—the ANWR area in particular.

Much discussion and many essays later, the National Park Service recommended in 1954 that “undisturbed lands” in the Northeast region of the state be preserved “for their wildlife, wilderness, recreation, scientific, and cultural values.”

In 1960 the 8.9 million-acre Arctic National Wildlife Range was established; it was expanded and evolved over the decades until 1988, when Congress added a final 325,000 acres to the area, creating the 19.3 million-acre ANWR we’re all arguing about today.

Though we’re not arguing about all of it. During the ongoing evolution, Section 1002 of ANICLA excluded the eponymous 1002 Area from a “wilderness” designation and instead required a comprehensive study of the area’s resources—including fish, wildlife, and petroleum resources— and the effect on the area if those petroleum resources were to be developed. At the same time, Section 1003 of ANICLA stated that “production of oil and gas from the Arctic National Wildlife Refuge is prohibited and no leasing or other development leading to production of oil and gas from the [Refuge] shall be undertaken until authorized by an act of Congress."

That happened in 2017.

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OIL & G A S SPECIAL SEC TION

"Our community had been waiting since the Alaska Native Claims Settlement Act to realize the economic freedoms promised to us as indigenous people. My community of Kaktovik is the only village located within the Coastal Plain area of the Arctic National Wildlife Refuge, and we have long been supporters of oil and gas exploration in the area.”

Matthew Rexford, President, Kaktovik Iñupiat Corporation

They were underwhelming.

The lease sale results were released on January 6. Of the thirty-two tracts offered in the lease sale, only eleven garnered any bids at all. In total, thirteen bids were submitted: eleven by the Alaska Industrial Development Export Authority (AIDEA), one by Knik Arm Services, and one by Regenerate Alaska. Overall, 552,802 acres of the 1.56 million-acre 1002 Area were successfully bid on on for a total of $14.4 million.

In January in response to the bid results, Alaska Oil and Gas Association President and CEO Kara Moriarty said, “[The] lease sale was a historic event and decades in the making… While the results may not have been as robust as we might have expected, industry still supports future access to this area. Today’s sale reflects the brutal economic realities the oil and gas industry continues to face after the unprecedented events of 2020, coupled with ongoing regulatory uncertainty.”

Part of the ongoing regulatory uncertainly Moriarty refers to was yet another proposed change to Alaska’s oil and gas tax structure. In 2020, as in most years, the Alaska oil and gas industry was faced with potential new legislation, this time in the form of Ballot Measure 1, which would have increased taxes on Alaska’s largest oilfields (at the time: Kuparuk, Alpine, and Prudhoe Bay).

The ballot was defeated. ExxonMobil, ConocoPhillips, BP Alaska, and Hilcorp collectively invested $19.6 million in the campaign; one wonders what they might have done with the money otherwise.

44 | May 2021

While it’s plausible such funds would have been invested in Alaska oil and gas exploration or production in more actually productive ways, it’s also very possible that Alaska’s largest oil entities still wouldn’t have invested in ANWR. For one, what’s there is at best uncertain. In the February 2018 article Analysis of Projected Crude Oil Production in the Arctic National Wildlife Refuge, EIA Senior Operations Research Analyst Dana Van Wagener states, “Little direct knowledge is available on the petroleum geology of the ANWR region.

The USGS oil resource estimates are based largely on the oil productivity of geologic formations that existed in the neighboring state lands in Alaska as of 1998 and two-dimensional seismic data that had been collected by a petroleum industry consortium in 1984 and 1985.”

According to the same article, only one well has been drilled on the Coastal Plain, and since it was drilled by a private entity, the results remain confidential.

But with what information is available, USGS estimates there are 5.7 billion to 16 billion barrels of technically recoverable crude oil in ANWR amongst thirty-seven to sixty-four oilfields.

That is not an insignificant amount of potential; however, that’s based on assumptions—the assumptions of experts, but still assumptions—and the highly contentious area is lacking any infrastructure whatsoever.

And ANWR is not the only potential place for development, even on the North Slope.

For example, ConocoPhillips Alaska is bullish about its Willow discovery, which holds an estimated

400 million to 750 million barrels of oil and is approximately 30 miles from the company’s Alpine Central Facility. ConocoPhillips anticipates it can produce 100,000 barrels of oil per day at peak production and will create hundreds of direct jobs and thousands of construction jobs. The company also anticipates investing approximately $2 billion to $3 billion in developing the site and as much again in drilling costs over multiple years.

As of publication, ConocoPhillips Alaska is also waiting on the outcome of two pending lawsuits affecting development in an area it’s been working in for years.

A new project, in the opposite direction, with no infrastructure in place, and multitudes of people and organizations (and fifteen US states) already screaming angrily the entire time might seem higher risk—and it certainly wouldn’t cost less.

Clearly bidding on ANWR wasn’t the right move for Alaska’s largest oil and gas explorers and producers because they didn’t; however, that’s not an indication that ANWR is lacking any potential or that opening the 1002 Area is inherently damaging.

Though it definitely has obstacles.

Changing Administrations One is the swinging pendulum of federal support of oil and gas development in general. The Tax Cuts and Jobs Act of 2017 was passed through a Senate and House of Representatives and signed by a president that all leaned toward supporting oil and gas development. The composition of all of those offices has changed since.

Alaska Business www.akbizmag.com

corporation for the Native village of Kaktovik, which received 92,000 acres of surface lands within the Coastal Plain of ANWR through ANCSA. As a private landowner, exploration on its own lands in theory isn’t restricted by the issued executive order.

Instead, KIC hit another roadblock.

In August 2020 the corporation applied for an Incidental Harassment Authorization (IHA); this is a permitting process in which an organization indicates how its exploration efforts may “take” an animal. Under the Marine Mammal Protection Act, take is defined

as harassing, hunting, capturing, killing or an attempt to harass, hunt, capture, or kill any marine mammal. The term “harassing” is rather broad and can include disturbing the animals through vibrations or noise.

In KIC’s case, polar bears, defined as marine mammals, make their dens in the Coastal Plain of ANWR. In order to ensure their seismic data collection wouldn’t disturb the bears, KIC was required to conduct aerial surveys of the area to identify any polar bear dens; however, the aerial survey itself can count as a polar bear take.

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Private Exploration One such interested party is Kaktovik Iñupiat Corporation (KIC), the ANCSA www.akbizmag.com

Alaska Business

May 2021 | 45

OIL & G A S SPECIAL SEC TION

The Bureau of Land Management signed and issued nine leases in ANWR on January 19, the day before President Joe Biden’s inauguration. The timing doesn’t seem accidental.

But it’s done, and the end result is that at present AIDEA holds seven leases (according to AIDEA: “AIDEA chose to finalize leases on seven of the nine tracts it was awarded because we view these as the tracts that best preserve access to the 1002 Area’s large resource potential while limiting the footprint for responsible development.), Knik Arm Services holds one, and Regenerate Alaska holds one. The nine leases cover a collective 437,804 acres.

What are they going to do with them? So far, they haven’t really said.

AIDEA’s official “what’s next” statement is: “AIDEA’s future steps will be to undertake an update to the geological surveys and initiate the planning work necessary to responsibly conduct early phase exploration activities.”

The organization has also stated its intention to work with private capital investors in the “responsible development of these leases.”

But can they develop them?

According to a US Department of the Interior Fact Sheet, Biden’s executive order “pauses” new oil and gas leasing on federal lands and offshore waters “concurrent with a comprehensive review of the federal oil and gas program.”

It continues to say: “The targeted pause does not impact existing operations or permits for valid, existing leases, which are continuing to be reviewed and approved. The order does not restrict energy activities on private or state lands, or lands that the United States holds in trust or restricted status for Tribes or individual Indians.”

Where’s that put the lease holders in ANWR? Effectively, the leases are valid, but any progress for permitting, exploration, or development is on hold for an unknown period of time as the Biden Administration, State of Alaska, and untold numbers of other interested parties contest the future of the 1002 Area through executive orders, legislation, and courtrooms.

OIL & G A S SPECIAL SEC TION

A concern expressed by many who oppose opening ANWR for development is that the Porcupine Caribou herd’s calving grounds are at the Porcupine River coastal region located in ANWR; the animals migrate 1,500 miles annually between their calving grounds and the Richardson Mountains in the Yukon and the southern Brooks Range in Alaska.

FredrikSvartdahl | iStock

“KIC specifically inquired with [US Fish and Wildlife Service] as to whether or not the aerial surveys could begin prior to issuance of the IHA permit, and we were told no. We offered to fly higher with our aircraft; we offered to reduce noise levels; and we offered to accommodate any other potential impacts. The answer was consistently no,” said KIC President Matthew Rexford in a February release. “Our problem was that we couldn’t conduct the aerial surveys without the IHA authorization from the [US Fish and Wildlife Service], but we also couldn’t get permitted for seismic by that same agency without conducting them. They held all the cards, and then we saw a lot of delays and excuses from them.”

The press release was issued in response to a decision from the US Fish and Wildlife Service issued in February that KIC’s IHA was no longer actionable— according to a US Department of the Interior spokeswoman, KIC failed to complete necessary aerial surveys by the deadline of February 13.

According to KIC Chairman Nathan Gordon Sr., “It was the agency that 46 | May 2021

ran the time out, not KIC. They said the seismic activity was predicated on completion of the den detection surveys, but then they wouldn’t approve the aerial den detecting work to begin.

It was never authorized to commence in the first place, and they just kicked the can down the road.”

Because of the decision, KIC was unable to perform any seismic in the 2020/2021 winter season.

"Our community had been waiting since the Alaska Native Claims Settlement Act (ANCSA) to realize the economic freedoms promised to us as indigenous people. My community of Kaktovik is the only village located within the Coastal Plain area of the Arctic National Wildlife Refuge, and we have long been supporters of oil and gas exploration in the area,” said Rexford in March. “It wasn’t until the 2017 Tax Cuts and Jobs Act that we were finally able to realize our vision of providing the local jobs and business contemplated by ANCSA only to find ourselves again threatened under the Biden Administration.”

What’s Next?

Who knows.

In some ways what’s happening in ANWR is a reflection of a general uncertainty of and for the oil and gas industry worldwide and particularly in Alaska.

Some of that uncertainty is the result of Alaskans’ ongoing questioning of tax and credit structures, which is often egged on by fiscal uncertainty at a state, community, and personal level. But if Alaska’s economy crashed because of an overreliance on oil revenue, how does taxing oil more (or less, or just differently) provide long-term security? Our ouroboros of oil issues will never be resolved through any amount of adjustments to the tax structure.

Instead, let’s move forward without envisioning the oil and gas industry as an emergency bank or painting it as an evil villain: let it be regulated, supervised, and allowed to function.

And what about ANWR, specifically?

As of publication it’s at a standstill.

It remains how it’s always been: undeveloped and full of potential.

Alaska Business www.akbizmag.com

OIL & G A S SPECIAL SEC TION

Oil Searching COVID-19 pushes Pikka development to pivot

By Amy Newman

F

ormed nearly a century ago, Papua New Guinea-based Oil Search entered Alaska’s oil and gas scene in 2018 with a $400 million purchase of North Slope oil leases from Armstrong Energy and GMT Exploration.

The purchase included interests in the Nanushuk oil field in the Pikka Unit, one of the largest conventional US oil discoveries in thirty years, and the Horseshoe block.

“We entered into Alaska for new growth and to diversify our operations, both geographically and for a mix of oil and gas production,” Executive Vice President of Alaska Bruce Dingeman told attendees at the Alaska Support Industry Alliance’s Meet Alaska conference in March.

Since then, the three-person Alaska operation has grown to more than 150 year-round employees and a peak of 1,000 seasonal workers spread across eighteen camps during the 2019/2020 exploration and appraisal season.

48 | May 2021

“By the end of the decade, Alaska will represent about two-thirds of our production growth over that 10-year period,” Dingeman says.

“It’s a very important part of that production portfolio.”

Central to that growth is the development of the Pikka unit. Initially, Oil Search planned a $5 billion to $6 billion investment at the unit with first oil anticipated in 2024 and a return of 120,000 barrels of oil per day; however, two key events led the company to pivot its plans for the area to a somewhat smaller, phased approach, Dingeman said during a November meeting with investors.

“First, the obvious one, the drop in price,” he said, referring to the low price of crude oil in 2020, which briefly dipped below $10 per barrel due to minimal demand during the early part of the COVID-19 pandemic. “Second, the running room that was introduced by our successful exploration efforts”

at Mitquq and Stirrup during the 2019/2020 season.

Though ostensibly a setback, the revised development plan ultimately allows Oil Search to increase its overall production at a reduced cost.

Largest North Slope Civil Program Oil Search completed its second Alaska drilling season in 2020 with two rigs at the Mitquq and Stirrup exploration wells, part of the Quokka and Horseshoe trends, respectively, according to Dingeman. Discoveries from a mother bore and sidetrack drilled at the Mitquq wells and drilling at the Stirrup well showed excellent flow test results. It also showed the potential of Mitquq to become a low-cost tieback to the Pikka Unit Development, and Stirrup as either a tie-back or standalone development opportunity.

Exploration and appraisal over the last two seasons have grown Oil

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at any price. For us, it’s about the quality of the deal. It’s about the quality of the partner. We’ll look at any proposal, but we will need to recognize the value of the asset;

Phased Development at Pikka The pandemic and subsequent downturn in oil prices meant that Oil Search’s former concept for the development of the Pikka Unit was unworkable, Dingeman told Meet Alaska attendees, which led the company “through a recycle process to take costs out.”

Part of that recycling included a switch to a phased development

approach that, though initially smaller in scale than originally envisioned, will ultimately yield a greater return on investment at a reduced cost.

Phase 1 of the Pikka project reduces the number of drilling pads from three to a single drill site in the core of the Nanushuk Drill Site B, or NDB, and includes a flowline that will allow the project to be connected to existing North Slope infrastructure, Dingeman said. The processing facility will use a standardized modular design and off-the-shelf equipment. Not only

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interests to find funding to take it forward.”

Kieran Wulff, Managing Director, Oil Search

Search’s 2C oil resource to almost 1 billion barrels though that doesn’t include prospective volumes that run beyond those trends, which executives think have the potential to be Pikka-like in scale. That’s 400 percent more than the company had when it started in 2018.

The 2020 season produced tangible results as well.

“Our team delivered basically the largest civils program on the Slope in over twenty years, and at its peak included over 800 workers,” Dingeman told investors.

Those projects included laying 3.2 million cubic meters of gravel, sourced from the Arctic Slope Regional Corporation and North Slope borough gravel pits, to install three pads at the Nanushuk B drill site, and an 11.5-mile road that provides year-round access from Pikka to existing infrastructure.

Oil Search also completed construction of a production facility and operations center and built a 192www.akbizmag.com

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“Alaska isn’t for sale

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“The phased approach really opens the door with an initial high-return, lowcost development, which we followed by subsequent phases that will benefit from both the learnings from the first phase as well as the cash flow it generates. It really represents a commercialization pathway that goes way beyond the volume we initially envisioned.”

Bruce Dingeman, Executive Vice President of Alaska, Oil Search

can the modules be expanded to accommodate future phases but their ability to be transported by road lowers costs and reduces the risk of project delay.

“We went from a large sealift bespoke solution to a modularized,

50 | May 2021

standardized solution for that processing kit,” Dingeman told conference attendees.

“It can be sourced in a way that can be transported by road and not sealift, which avoids seasonality and gives us more flexibility.”

By starting production with modular processing facilities, the company should be able to achieve about twothirds of its initially planned production capacity at about half of the cost, with a shorter period to first oil.

Phase 1 represents a $3 billion commitment, with first oil expected in 2025 at a production level of 80,000 barrels per day, Dingeman told Meet Alaska attendees. Two-thirds of that commitment will go toward facilities and construction, including 100 miles of infield pipeline, and one-third to the wells.

Roughly 75 percent is expected to be spent prior to first oil and will generate not just jobs and business development opportunities but taxes, royalties, and other revenues for the state and regional and local communities, he said. Contracts are expected to begin being awarded sometime in 2022 to 2023, with production operations support being tendered in 2023 to 2024.

“So even though the benefit of our production won’t be realized for four years, the benefits [of the

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that the following drilling season, once we have personnel and equipment in that area.”

Dingeman told investors that the key takeaway from the phased approach is that it can deliver a very efficient, highreturn project.

“The phased approach really opens the door with an initial high-return, low-cost development, which we followed by subsequent phases that will benefit from both the learnings from the first phase as well as the cash flow it generates,” he said in November. “It really represents a commercialization pathway that goes way beyond the volume we initially envisioned.”

Phase 1: FEED In February, Oil Search entered the front-end engineering and design (FEED) stage, moving the company one step closer to implementing its phased Pikka development plan.

“This is a key milestone toward realizing material value from our Alaska assets and creating longterm benefits for the North Slope

community and jobs for Alaskans,” Managing Director Kieran Wulff said in February. “Through FEED, we expect to deliver a more detailed and robust project that further reduces risk and improves the project’s value.”

The FEED stage is focused on finalizing the project’s design scope, execution, budget, and schedule.

This stage is also used to reduce project risk to make sure the final design supports optimal expansion to deliver full value from the Nanushuk reservoirs in advance of reaching a final investment decision (FID) by the fourth quarter of 2021.

“The second quarter of 2021, it is really about completing the detailed engineering work and progressing that,” Dingeman told Meet Alaska attendees. “It’s about preparing implementation plans, getting the contracts ready to execute at approval of FID, and preparing for internal controls and economics.”

Engineering and design work during FEED will include final designs of the modular production facility, infrastructure for initial drill

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development] will be felt sooner,” Dingeman says. “That’ll be a big shot in the arm to Alaska, and we’re keen to get on to that.”

But, he added, the pivot doesn’t mean that Oil Search has lost sight of the “total value prize,” which he said the company will realize during the project’s second phase.

“We’ll unlock a comparable volume from the already permitted drill sites of [Nanushuk] A and C, [so] another 350 to 450 million barrels,” he said.

The Phase 2 increment, which would include expansion into the Nanushuk A and C drill sites and the Mitquq first drill site, will come on the heels of Phase 1, with oil from Mitquq likely being processed through Pikka facilities during Phase 3. The company anticipates that future phases of the project will be funded by cash flow from Phase 1.

“Mitquq, we believe, covers a similar geographic area as Nanushuk does in the Pikka unit, so it needs some further appraisal,” he said. “What we’re looking at there is 40,000 barrels per day module... but the intention is to appraise

OIL & G A S SPECIAL SEC TION

A rendering of Phase 1 of the Pikka development.

Oil Search

“By the end of the decade, Alaska will represent about two-thirds of our production growth over that ten-year period. It’s a very important part of that production portfolio.”

Bruce Dingeman Executive Vice President of Alaska Oil Search

52 | May 2021

site NDB, pipelines, and operations pad infrastructure. Plans include forty-three wells and a 20-acre pad, Dingeman said.

Oil Search will also begin detailed engineering and procurement for its Seawater Treatment Plant. The US Army Corps of Engineers has already issued key environmental permit modifications, and the standalone treatment plant has already been incorporated into the development plan, the company says.

“This provides several benefits,” Dingeman explained. “One, it gives us greater supply surety of water. It also gives us an improved water quality versus having sourced waters from others.”

Asset Divestiture In 2019 Oil Search exercised its $450 million option to buy out Armstrong and GMT Exploration, giving the company a 51 percent interest in the Pikka Unit alongside its Spanish-based partner Repsol, which holds a 49 percent interest.

Now, it’s resumed efforts to divest itself of a 15 percent interest in the development, either solely or in conjunction with Repsol, and to

secure financing to fund at least one-half of the Phase 1 costs. The goal of the divesture is to free up cash to fund the development and reduce the development of CapEx in subsequent phases.

But while the sell-down is a critical component of Oil Search’s capital management strategy, Wulff was quick to point out that the company wasn’t poised to accept just any deal to raise capital.

“Alaska isn’t for sale at any price,” he told investors. “For us, it’s about the quality of the deal. It’s about the quality of the partner. We’ll look at any proposal, but we will need to recognize the value of the asset; otherwise, it’s actually in our shareholders’ interests to find funding to take it forward.”

Regardless of whether divestiture occurs or Oil Search secures alternate funding, Wulff said the confirmed 2C resources combined with the Pikka development’s Phase 1 revenue stream will create support for further growth—it’s “an exciting” time for Oil Search in Alaska.

“We are exceedingly optimistic about Oil Search’s future in Alaska,” he said.

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What’s Cookin’ in the Inlet Investment is difficult in an uncertain regulatory and fiscal environment

pniesen | iStock

By Joe Keenan

54 | May 2021

Alaska Business www.akbizmag.com

Powering Southcentral Cook Inlet represents roughly 3 to 4 percent of all oil extracted in Alaska; while that pales in comparison to North Slope production, for example, it shines in terms of how much of that oil actually ends up being used in the state.

As of publication, approximately 15,000 barrels of oil are produced each day in Cook Inlet, and all of that oil stays right in Alaska, refined at the Marathon plant in Nikiski.

Gas follows the same pattern.

Whereas most of the gas produced during oil extraction on the Slope is reinjected into the ground, Cook Inlet gas is the lifeblood of Southcentral electrification.

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According to Kara Moriarty, president and CEO of the Alaska Oil and Gas Association, "Cook Inlet is incredibly important: every drop of oil produced in the inlet goes straight to refineries that are powering our cars, our airplanes, and our boats, especially in Southcentral Alaska. More importantly, the gas production from Cook Inlet is what powers our heat and our lights, and we're not going to experience the chaos that Texas had in February. We have very reliable gas production right now. It's very important to Southcentral utilities.”

Tom Walsh, one of the managing partners of Petrochemical Resources of Alaska (PRA), believes that “things are a lot better off since 2009.” When PRA performed its first Cook Inlet gas study, the company estimated there would need to be gas imports to meet Alaska’s energy demand. But that hasn’t been the case.

“There's been a huge consolidation with Hilcorp being the very dominant force in Cook Inlet,” says Walsh.

“They’ve done a great job of revitalizing the Cook Inlet portfolio with offshore and onshore investments and finding gas and oil behind pipe. In drilling

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new wells, Hilcorp has been extremely successful in getting things back in line where there's enough supply for Southcentral Alaska now. They really have a great deal of dominance in Cook Inlet. I think the gas is now available there to meet demand.”

With Chugach Electric Association’s acquisition of ML&P and its Beluga field asset, Chugach secured long term gas supply at relatively reasonable costs.

Walsh says, “Chugach has more impact now since they've taken over two-thirds of the Little River Field, so they're going to want to try to align their activities with Hilcorp as the operator in the Little River field. However, their interests aren't exactly in alignment. So that's going to be a little bit of a challenge to get the gas they want—from the field they want—and not stretch Hilcorp too much. Hilcorp has agreed to supply that gas to Chugach, but it may not be from the field Chugach would like to see further developed."

Walsh notes that Hilcorp has invested millions of dollars in aging infrastructure both on- and offshore, recently completing a roughly $90 million subsea pipeline project to allow oil

May 2021 | 55

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W

hile the lion’s share of attention on Alaska’s oil and gas industry centers on the North Slope, the Cook Inlet region is still home to twenty-eight producing oil and gas fields on- and offshore.

Between rigs operating in the inlet itself and refineries based in areas like the Kenai Peninsula, Cook Inlet is a crucial—and sometimes overlooked— piece of Alaska’s oil and gas industry.

OIL & G A S SPECIAL SEC TION

"Cook Inlet is incredibly important: every drop of oil produced in the inlet goes straight to refineries that are powering our cars, our airplanes, and our boats, especially in Southcentral Alaska. More importantly, the gas production from Cook Inlet is what powers our heat and our lights and we're not going to experience the chaos that Texas had in February.

We have very reliable gas production right now.

It's very important to Southcentral utilities.”

Kara Moriarty, President/CEO, Alaska Oil and Gas Association

produced from West Cook Inlet fields to be piped to the refinery at Nikiski.

The project coincided with the closing of the Drift River oil storage terminal,

long seen as a potential environmental hazard for its location at the base of Mount Redoubt. Hilcorp has been able to increase production in every

platform and every onshore facility that they acquired about ten years ago.

Hilcorp received the green light from the state in March 2020 for two gas exploration wells onshore near Anchor Point. However, a federal judge sided with conservation groups and rejected a federal rule that allowed Hilcorp to carry out oil and gas activity in Cook Inlet that could disrupt or potentially harm the inlet’s endangered beluga whale population.

Refining in Kenai Marathon’s Kenai Refinery is 60 miles southwest of Anchorage and has a crude oil capacity of 68,000 barrels per calendar day. Casey Sullivan, government and public affairs manager for Marathon Petroleum Corporation in Alaska, says, “Ensuring we have abundant sources of crude from the Cook Inlet and the North Slope is as important as ever for the refinery and the state.”

The Kenai liquefied natural gas plant, which has exported natural gas overseas from Nikiski for nearly four decades, got federal approval to start importing natural gas. That could give

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Finding Stability As for exploration efforts, BlueCrest Energy’s President and CEO Benji Johnson feels a stable business environment is currently missing in Alaska.

Johnson points to an investment opportunity BlueCrest pursued almost a decade ago to illustrate this issue.

“Together, [with] a small group of investors and based upon the promises of the State, we bought

the Cosmopolitan field from Pioneer in 2012. At that time nobody really knew what was there. There had never been a well drilled out into the top of the field. Conoco had drilled from onshore back around 2001, and they had discovered oil there, but they couldn't tell what was there—they did not have good seismic data. Then, Pioneer came in and they were going to develop it and then they pulled out of Alaska.

They said, ‘Why should we invest our money in Alaska when we can do it with a better ROI in West Texas.’

“BlueCrest looked at it and saw an opportunity and we drilled the first offshore exploratory well in a couple of decades and we found, frankly, a large field—put it that way."

Johnson notes the field isn’t nearly as big as those found on the North Slope but that there is still a substantial amount of oil. “So with that, we put in hundreds of millions of dollars to get started on this work, with the expectation that the state would at least abide by their commitment to pay these tax credits to us as they told us that they would.

“Then when the State stopped and said, ‘Nope, we owe you $100 million, but we're not going to pay it to you,’ our investors said, ‘Well I think I’ll put my money someplace else.’” Luckily, BlueCrest’s partners remained invested, and the company is still in conversations today with other potential investors.

Rigs Operating in Cook Inlet (2017-2021) Drill *

Workover *

2017

5

3

2018

4

4

2019

5

2

2020

2

2

2021

1

2**

**

* Rigs that drilled and did well workovers during the year were counted just once ** Through March 31, 2021 Source: AOGCC

Johnson goes on to say, “We have to compete with other places around the world for investment money. If I could say that I need $400 million to put in a gas platform and pipeline and drill more

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parent company Marathon Petroleum a more cost-effective way to power its crude oil refinery down the street.

Marathon subsidiary Trans-Foreland Pipeline applied last year to reactivate the historic plant as an import facility.

They received the go-ahead in early December 2020 from the Federal Energy Regulatory Commission.

With approval in hand, Marathon has eighteen months remaining to act on its proposal. The company has not yet determined its plans for the facilities going forward, but that the project provides an opportunity for the company to get low-cost fuel to the refinery.

OIL & G A S SPECIAL SEC TION

“There is no short-term alternative, as we're talking decades to get a field to production, which means that if the United States stops producing it, we're going to have to get it from someplace else. And for those of us who have worked all over the world, we know that there is no other place in the world that develops oil and gas with the same care for the environment as Alaska. Literally, no one is better than Alaska. So if we shut down US—particularly Alaska—production, this has a direct negative environmental impact overall.”

Benji Johnson, President/CEO, BlueCrest Energy

58 | May 2021

oil wells, investors will look at that and say, ‘Okay, I might be able to do better than that someplace else,’ like in Asia, for example."

With the suspension of oil tax credits, Johnson says there's a “fear of Alaska” from an investor’s point of view. “We've got support currently from the governor of Alaska and the legislators, but people need to understand that just because it's a good deal doesn't mean that people will necessarily invest their money.” He notes that BlueCrest’s Cosmopolitan Field is the largest undeveloped gas field in Cook Inlet; the company’s intent is to get that field to production within a couple of years, which will help supply Southcentral’s power needs for the next ten years.

Johnson is quick to recognize Hilcorp’s success with its investment in Cook Inlet, calling the company “experts” at what they do. With a chuckle, he says, "They could use a little competition.”

BlueCrest has one of the largest rigs in Cook Inlet, and the company is ready to deploy its extended reach drill with the unique capability of searching multiple layers using “fishbone” technology. “We've got the well planned, and the economics would be good, but investors are waiting to see what the environment is going to be,” says Johnson.

What that environment looks like will be heavily impacted by the new presidential administration.

Johnson says, in response to the Biden Administration’s stance on environmental protection, “We clearly understand that protecting the environment and climate change is a very important issue for the entire world. It's not something that’s focused on an individual area. This is a global issue. What has happened is that the Biden administration has said that we are just going to stop producing oil and gas."

But of course, Johnson believes it isn’t that simple. “There is no shortterm alternative, as we're talking decades to get a field to production, which means that if the United States stops producing it, we're going to have to get it from someplace else. And for those of us who have worked all over

the world, we know that there is no other place in the world that develops oil and gas with the same care for the environment as Alaska. Literally, no one is better than Alaska. So if we shut down US—particularly Alaska— production, this has a direct negative environmental impact overall.”

Increasing Production Another exploration company, HEX Cook Inlet, is also making significant progress.

Since assuming the operatorship of the Cook Inlet Kitchen Lights field in July 2020 (after acquiring Furie Operating Alaska), HEX Oil teamed up with Rogue Wave AK in 2020 to form the joint venture Hex Cook Inlet (HEX CI). Since July of 2020, HEX CI has increased the Kitchen Lights Field natural gas production by at least 20 percent.

“Right now, it all goes back to basics,” says HEX Oil CEO John Hendrix. “We’ve been basically going back through the well files and understanding the decisions they have made—right or wrong—while building our own philosophy around how to develop the field. Our work includes making the sure the temperature sensors are going to the right part of the equipment that we think it is and making sure the well files are in good working order.”

As of publication, HEX CI was waiting for the Alaska Department of Environmental Conservation to issue a water handling permit that would allow the company to return the freshwater produced as part of the drilling process back into the inlet, as opposed to piping it to onshore storage. In the meantime, Udelhoven Oilfield System Services is installing water handling equipment on the platform in hopes that it will be ready for production immediately upon receipt of the permit.

Both Hendrix and Johnson agree on one thing: If Alaska wants to ramp up production in Cook Inlet, the state needs to create a more sustainable business environment for attracting investors.

Changing the rules mid-game for potential investors creates uncertainty— and having a long-term plan is a must.

Alaska Business www.akbizmag.com

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I

Meeting in the Middle Renewables, oil and gas make for a one-two punch in Alaska’s energy sector

By Arie Henry

60 | May 2021

n January, when the Biden administration announced its ban on the future sale of oil and gas leases on federal land, the news understandably ruffled the collective feathers of Alaska’s oil and gas industry. The announcement could be—and has often been—framed as a direct attack on one form of energy development in favor of another.

But a closer look at insights from parties in both the oil and gas and renewable energy sectors reveals that as far as Alaska is concerned, the two energy industries aren’t necessarily at odds. In fact, many industry experts agree that oil, natural gas, solar, hydro, geothermal, and tidal can all be developed in Alaska without one encroaching on the other’s economic importance to the state. Combined, petroleum and renewables are a positive one-two punch for Alaskans, not ideologically opposed platforms locked in some industrial grudge-match. There are similarities between oil and gas and green energy as well as differences—all of which are necessary for the dynamic relationship to work in the first place.

Different Uses, Different Users A misconception exists that implies fossil fuels and renewables are like oil and water (no pun intended). While it might be true elsewhere, this isn’t necessarily the case in Alaska. However, as the new presidential administration begins to establish domestic energy policies focused on more investments in green energy and less in federal lands for oil and gas use, the fear of Alaska’s petroleum sector being severely stifled has caused some headaches for industry stakeholders.

But for all the hype surrounding the green energy and fossil fuel debate, both platforms exist in the state to serve different functions; while oil and gas continue to bring in state revenue through royalties and a tax structure (not to mention money for Permanent Fund Dividends), green energy serves to keep more money in individual, utilitypaying Alaskans’ pockets via energy efficiency savings. Less use of traditional energy sources like diesel (especially in rural Alaska) and more reliance on platforms like solar and wind mean lower longterm costs for consumers.

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industry can be a strong partner with the federal government, Alaska Native communities

Jobs, Jobs, Jobs In the discussion of Alaska’s energy future, where does the contention lie between green energy and fossil fuels?

In a word: jobs.

A nuance regarding rural Alaska communities is that while renewable energy savings may keep money in users’ pockets, many rural resident s still rely on the oil and gas industr y to provide households with that money to begin with, par ticularly through employment oppor tunities.

and corporations, union members, and contractors to strengthen economies, provide for future generations,

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and create solutions to address the issue of

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climate change.”

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Kara Moriarty, President/CEO Alaska Oil and Gas Association

It’s important to remember that Alaska as a state does not directly consume the vast majority of oil extracted from the North Slope.

According to the US Energy Information Administration’s (EIA) profile on Alaska, about fourfifths of the oil produced in the state is shipped off to refineries in Washington and California. The other one-fifth of the state's oil production is refined in Alaska and shipped to Hawaii or exported to international destinations. In other words, Alaska may not necessarily use most of the oil it produces, but the state earns revenue from taxes and royalties.

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“The oil and gas

development in the state focuses on consumer energy savings for Alaskans and Alaska communities.

Greener mediums meet microgrid demand, including some of the most rural areas of the state.

“Alaska is different in the sense that we’ve got small grids,” says Curtis Thayer, executive director of the Alaska Energy Authority (AEA). “Some are really, really tiny grids—even the Railbelt being a relatively small grid with some 550,000 people on it. Our transition is going to be different.”

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In fact, in a March forum hosted by the US Department of the Interior, Alaska Federation of Natives Executive Vice President and General Counsel Nicole Borromeo attested to the fact that while Arctic villages face climate change implications every day, oil and gas has remained a consistent source of income for residents there.

“Alaska Natives do not operate in an either/or space when it comes to the nation’s energy policy,” Borromeo said at the forum. “We favor both traditional and emerging forms because a combination of both best serves our state and our people.”

And since the aforementioned end uses and means of development differ greatly between fossil fuels and renewables, there is reason for Alaska’s oil and gas players to point out what is seen as a consequence of shutting down further exploration and development on federal lands: a net decline in overall Alaska employment.

In a January press statement, Alaska Oil and Gas Association President and CEO Kara Moriarty commented on the Biden ban.

“This action will not aid in the administration’s worthy goal of creating more American jobs,” said Moriarty. “We strongly urge the Biden administration to revisit these recent decisions… and instead work with stakeholders in the spirit of cooperation and unity that he shared at the Inaugural Address. The oil and gas industry can be a strong partner with the federal government, Alaska Native communities and corporations, union members, and contractors to strengthen economies, provide for future generations, and create solutions to address the issue of climate change.”

Moriarty’s point about creating jobs is a resonant one, especially considering that between the two platforms the human labor required by oil and gas is far greater than that of renewables. And the oil and gas industry’s status as the lynchpin of Alaska’s economy can hardly be overstated: in the same press statement, AOGA stated that oil production accounts for one-fourth of all jobs in the state and provides more than $2 billion annually in revenue to state and local 62 | May 2021

governments. Arguments have been made for and against the concept of re-educating petroleum workers to prepare them for jobs in renewables.

But Chris Rose, founder and executive director of the Renewable Energy Alaska Project (REAP), points out that the number of jobs needed for renewable projects tends to be far less than the amount of jobs needed to maintain a petroleum project.

“With the gas component, there’s always been a longterm desire to monetize that [in Alaska]. And I think worldwide you’re seeing natural gas as a transition from oil to renewables.

But as Alaska looks to transition to renewable fuels, it’s not necessarily something we can export. It’s not something that will pay dividends to the state to help support the state’s budget.

What renewables will do is lower the cost of energy across Alaska.”

Curtis Thayer, Executive Director Alaska Energy Authority

“There are more resource extraction jobs that are associated with oil and gas and coal than there are with sun and wind because [with renewables] the ‘extraction’ takes place at the point at which you create the energy, rather than digging it up out of the ground and moving it—all the steps you have to get through to get the fuel to market… So it’s hard to compare. It’s like comparing apples to oranges.”

The US Geological Survey also estimates the ANWR coastal plain holds 10.4 billion barrels of crude oil. And Moriarty’s statement on the Biden administration’s moratorium on all federal activities related to oil and natural gas leasing in places like ANWR implies that many jobs would therefore be left on the table.

According to Corri Feige, commissioner of the Alaska Department of Natural Resources, the state is counting on new production from ConocoPhillips' Willow and Greater Mooses Tooth 2 (GMT-2) projects in the 23 million acre National Petroleum Reserve-Alaska to help keep Alaska production stable at about 500,000 barrels per day. Feige believes that since these projects are already under construction, they appear unaffected

by Biden's order, an observation she expressed at a state legislative briefing in February.

This is crucial, as keeping oil production up in recent years has already been a major priority for the state and the industry—and that’s without factoring in the effects of the pandemic. The EIA’s profile of the state says Alaska's proven crude oil reserves at the beginning of 2020 were the fifth largest of any state.

And while Alaska was among the top five oil producing states for many years, it dropped to sixth in 2019 when annual oil production dropped to 466,000 barrels per day, its lowest level since the late ‘70s. Historically low oil prices, an international price war, and operational challenges due to COVID-19 also hammered the oil and gas industry in 2020.

Liquefied natural gas (LNG) development has long been the subject of industrial and political discourse in Alaska. Because of its cleaner consumption properties, LNG is viewed as a transitional form of energy around

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the globe as the United States and the world shift toward renewables from fossil fuels.

“With the gas component, there’s always been a long-term desire to monetize that [in Alaska],” says Thayer.

“And I think worldwide you’re seeing natural gas as a transition from oil to renewables. But as Alaska looks to transition to renewable fuels, it’s not necessarily something we can export. It’s not something that will pay dividends to the state to help support the state’s budget. What renewables will do is lower the cost of energy across Alaska.”

Those definite limitations to the scale of renewable development are why business community members like Moriarty and Borromeo emphasize the notion that Alaska should remain a viable location to petroleum companies for continued investments.

Making It All Work Together Xuan Yong, CEO of Austin-based energy workforce management firm Workrise, puts it like this: “Biden or no Biden, the energy transition was well underway before he won. At the same time, we can’t abandon oil and gas.”

As a market, Alaska illustrates Yong’s point perfectly. According to the EIA, harsh winters and an oil and gas industry already steeped in energyintensive operations mean that Alaska’s per capita energy consumption is the fourth highest in the nation after Wyoming, Louisiana, and North Dakota.

Furthermore, Alaska ranks eleventh among states with the lowest total petroleum demand, but it has the third-highest per capita petroleum consumption. However, one should not expect renewables to eclipse oil and gas based on market demand.

Despite the fact that more energy companies are trending toward the development of renewable programs to compete in green energy markets, Alaska doesn’t possess the type of grid to see those types of substantial corporate investments. Rose points to BP and Shell as energy companies who have branched out into renewables from traditional oil and gas. However, he is also quick to point out that neither company still has a presence in Alaska.

Accordingly, Alaska’s energy economy relies on differently sized business 64 | May 2021

In essence, while the oil and gas organizations continue to bolster the industry that fills state coffers, renewable capabilities are helping mitigate high in-state energy costs. So when those Permanent Fund Dividends come in each year, Alaskans can keep a little extra disposable income while still reaping the benefits of an oil and gas industry that continues to pursue a healthy future for the state’s economy. entities making distinct investments; depending on scale, larger corporations can still capitalize on oil and gas in Alaska while locally based initiatives are more appropriate for addressing renewable development.

Rose and Thayer both agree that at least in this state, renewable energy investments will likely be made by smaller, entrepreneurial-minded, and (most importantly) Alaskabased entities. These independent power producers take on the task of producing green energy at the source (wind, solar, hydro, geothermal) and

sell that energy to utility companies that serve places like the Railbelt grid.

And work is being done behind the scenes to level the playing field across Railbelt markets, which Rose says will encourage more investments and competition within the state.

“Industry doesn’t like a bunch of different rules. Industry likes certainty and they like to understand what the rules of the game are. So having one set of interconnection standards for up and down the Railbelt will hopefully incentivize more companies to get involved.”

That sense of security and industry stability is a sentiment echoed in Alaska’s oil and gas community.

Numerous efforts to propose a new tax structure for companies exploring and producing on the North Slope have been consistently met with staunch opposition from a large variety of Alaska businesses.

These organizations all agree that a fluctuating fiscal policy from the state makes it increasingly difficult for oil and gas companies to invest in a remote region where development costs are already significant.

In the meantime, Alaska markets far removed from oil and gas development have been able to leverage renewable energy to cut usage costs, which can be helpful as the dialogue surrounding oil development further north continues.

“When you look at the portfolio of where we receive our power now, the state as a whole is around 28 percent renewable,” says Thayer. “And it’s slowly picked up for the last ten years… In that time, you had Kodiak go almost 100 percent renewable. You have Prince of Wales Island with the new hydro project that we helped finance, which is now going to be 100 percent renewable.”

In essence, while oil and gas organizations continue to bolster the industry that fills state coffers, renewable capabilities are helping mitigate high in-state energy costs.

So when those Permanent Fund Dividends come rolling in year after year, Alaskans can take solace in a little extra disposable income while still reaping the benefits of an oil and gas industry that continues to pursue a healthy future for the state’s economy.

Alaska Business www.akbizmag.com

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眀眀眀⸀琀漀爀挀猀椀氀氀⸀挀漀洀

OIL & G A S SPECIAL SEC TION

Hilcorp Poised to Make Big Strides in 2021

bsrieth | iStock

By Rindi White

66 | May 2021

Alaska Business www.akbizmag.com

Hilcorp: Revitalization Pro Founded in 1989, Hilcorp made its Alaska debut in 2012 when it purchased Chevron’s Cook Inlet assets, a purchase that included Chevron’s interest in ten offshore oil platforms, onshore gas fields, two gas storage facilities, and two pipeline companies. In the nine years since, the company has made

"Hilcorp has a proven track record of bringing new life to mature basins, including Alaska's Cook Inlet and the North Slope, and we have a clear understanding that an experienced local workforce is critical to success."

Jason Rebrook, President, Hilcorp Energy Company

a name for itself by revitalizing aging energy infrastructure and breathing new life into mature developments.

"Hilcorp has a proven track record of bringing new life to mature basins, including Alaska's Cook Inlet and the North Slope, and we have a clear understanding that an experienced local workforce is critical to success," said Hilcorp Energy Company president Jason Rebrook in a 2019 statement announcing the company’s plan to purchase BP’s Alaska interests for $5.6 billion.

At a time when North Slope oil production is steadily declining, with easy-to-reach oil reserves already pumped down the pipeline, many see hope in Hilcorp’s involvement. The company purchased a 50 percent stake in the Milne Point field in 2014 and, six years later, production had more than doubled.

Whiskey Gulch, Seaview Moving Forward The Alaska Division of Oil and Gas in March approved Hilcorp’s plan to drill

resourceful solutions HELPING NATURAL RESOURCES CLIENTS NAVIGATE TURBULENT TIMES TO UNDERSTAND AND ADDRESS TODAY’S EVOLVING LEGAL LANDSCAPE. Dorsey & Whitney’s Energy & Natural Resources attorneys assist clients with a wide range of oil & gas matters, providing timely and effective counsel to companies engaged in upstream, midstream, or downstream operations. Dorsey provides comprehensive representation, helping clients with everything from employment matters, corporate transactions, and litigation, to regulatory and environmental compliance.

dorsey.com/anchorage www.akbizmag.com

Alaska Business

May 2021 | 67

OIL & G A S SPECIAL SEC TION

F

ollowing the purchase of BP’s 26 percent interest in Prudhoe Bay in June 2020, Hilcorp became the state’s second-largest oil producer in Alaska.

This year, the privately held company has said it will begin a fast-paced gas and oil exploration plan at its Whiskey Gulch prospect on the Kenai Peninsula, bring gas at its Seaview prospect near Anchor Point to market, and drill a bevy of test wells for future gas development in Cook Inlet. On the North Slope, Hilcorp plans to continue BP’s path of development at Prudhoe Bay and continue with an ongoing and promising collaboration with the University of Alaska Fairbanks and other groups to pull heavy oils from mature wells.

OIL & G A S SPECIAL SEC TION

Founded in 1989, Hilcorp made its Alaska debut in 2012 when it purchased Chevron’s Cook Inlet assets… In the nine years since, the company has made a name for itself by revitalizing aging energy infrastructure and breathing new life into mature developments. two exploratory wells at its Whiskey Gulch project roughly 2 miles north of Anchor Point this year, one for gas and a second looking at both oil and gas prospects. The work, which includes improving access roads and building a 300-foot by 400-foot gravel pad before drilling the two wells, is set to happen over the summer and be wrapped up

by September.

“We’re very, very excited about this one,” said Jennifer Starck, Hilcorp’s asset team leader for Kenai at a February

19 presentation to the Alaska Support Industry Alliance. “The exploration project was found four to five years ago, and we have been investigating it since.”

Starck said if the two exploration wells prove out, production at Whiskey Gulch could begin in 2022 or 2023, depending on permitting.

Hilcorp’s Seaview prospect, also near Anchor Point, is headed for production this summer. The company drilled an exploration well there at the end of 2019 but had problems connecting

with ENSTAR’s nearby line due to directional drilling complications. An outside company with expertise in the field will drill the line this spring, and Starck said the company hopes to move to production this summer.

“Once we get the pipeline in place, we’ll be drilling additional penetrations in Seaview to get more gas into market,” she said.

Continued exploration is a priority for Hillcorp in 2021. The company is the primary oil and gas producer in Cook Inlet.

Starck said Hilcorp plans this summer to drill twenty stratigraphic wells, each around 650 feet deep, between the area north of Whiskey Gulch and south of Ninilchik to look for additional pockets of gas along the same structural line. She said the company will drill the wells in two pushes, in June and August, to avoid being on the roads during the heaviest summer use. Moving from the test well to marketable gas is a process that takes two to four years, she said.

Hilcorp’s assets in Cook Inlet aren’t limited to natural gas. Its holdings at the Swanson River, one of the oldest

“We protect the environment because this is the land where we grew up.”

– Evan Polty Jr. Lead Mechanic, Donlin Gold Born in Pilot Station and Resident of Russian Mission

Respectful development for all generations.

To learn more, visit us at donlingold.com 68 | May 2021

Alaska Business www.akbizmag.com

by corrosion or weld imperfections.

Hilcorp purchased the pipeline and related assets in September 2015.

The federal order requires Hilcorp to submit a plan to replace the affected pipeline segment, including cost estimates for doing so, by May 21.

Moving Forward with BP’s Plans After obtaining approval from the commissioners of the Department of Natural Resources and the Department of Environmental Conservation in June 2020 and from the Regulatory Commission of Alaska in December 2020 for both the purchase of BP’s Alaska assets and its pipeline assets, Hilcorp last year set about strategically organizing its changing presence in the state.

As of February, Starck says the company has 1,503 full-time employees, including those that work with Harvest Alaska, its midstream operations subsidiary. It also works with 1,600 contractors, not counting additional contractors working on drilling operations. In February Hilcorp was operating two drilling rigs in Milne Point

Building Alaska for over 40 years

on the North Slope, plus a workover rig, and planned to operate two rigs in the summer in Cook Inlet.

As for Hilcorp’s plans on the North Slope, so far the company has only said that it is analyzing the field for ways to increase efficiencies and extend its useful life. It did just that after purchasing a 50 percent share of Milne Point, northwest of Prudhoe Bay, in 2014. BP owned the remaining 50 percent at the time. The field, developed in the mid-‘80s and operated by BP since 1994, had seen steadily declining production, based in part on poor pump performance.

Hilcorp came in with fresh money, reworking old wells, drilling dozens of new wells, and building a new drilling platform: Moose Pad. The work paid off with steadily increasing production, about 40,000 barrels a day in 2020, up from around 18,400 barrels per day when Hilcorp took over operations in 2014.

New Techniques Yield Promising Results In addition to investing more than half a billion dollars in Milne Point

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Alaska Business

May 2021 | 69

OIL & G A S SPECIAL SEC TION

producing fields in Alaska, deliver around 800 barrels of oil a day.

Beaver Creek, near Nikiski, produces around 1,000 barrels a day, and a limited amount is produced at its Cannery Loop field near the mouth of the Kenai River.

Buying up and revitalizing aging assets isn’t without risk. In April Hilcorp had to shut down its two Cook Inlet oil platforms and the pipeline that carries natural gas to market when a helicopter pilot noticed bubbles on the surface of Cook Inlet, a sign of a leak in the 8-inch pipeline located 80 feet below the water’s surface. The US Department of Transportation Pipeline and Hazardous Materials Safety Administration weighed in. In an order dated April 6, Associate Administrator for Pipeline Safety Alan Mayberry said Hilcorp must replace the 7-mile line, which is more than fifty years old. The pipeline has had numerous leaks in recent years; the federal order says the April leak was the fifth since June 2014. Four of those were determined to be caused by rocks striking the pipeline in areas where it was not continuously supported by the seabed. A 2019 leak was caused

Cook Inlet aren’t limited to natural gas.

Its holdings at the Swanson River, one of the oldest producing fields in Alaska, deliver around 800 barrels of oil a day.

Beaver Creek, near Nikiski, produces around 1,000 barrels a day, and a limited amount is produced at its Cannery Loop field near the mouth of the Kenai River.

into the basin over a period of time, pushing the heavy oils out toward production wells.

So far, results indicate the process is effective, with the barrel-per-day oil recovery rate jumping from an estimated 400 to 1,200 barrels per day in the test area.

While the study will wrap up in 2022, Hilcorp plans to continue and expand polymer injection use elsewhere in its holdings. As of October 2020, the company was using the method in nineteen wells at four different pads within the Milne Point unit, with plans to expand to two to four new pads in the near future.

“Encouraged by the promising results of this pilot, Hilcorp Alaska is planning to apply polymer flood technology in the Schrader Bluff reservoir throughout the Milne Point Field,” study participants noted in their October 2020 presentation at the Society of Petroleum Engineers Annual Technical Conference and Exhibition.

Hilcorp company leaders tout their innovative approach to doing business as part of the reason they are quickly becoming an industry leader. The company has a fivepronged approach: Integrity—do the right thing; Urgency—act today, not tomorrow; Ownership—work like you own the company; Alignment—when Hilcorp wins, we all win; Innovation— get better every day.

Starck, who spent about twenty years working for BP, mostly in Alaska, before joining Hilcorp in Kenai, gave rare comments about key differences between the corporate culture of BP and Hilcorp at her Alliance presentation.

“Now, I’m an asset team leader. I run the asset as if it’s my business,” she says.

“The decisions, good and bad, are mine to own. And at the end of the day, the decisions that go well—the team did well. And when it goes bad, I planned the wrong way.”

For Hilcorp, the approach seems to be paying off. bsrieth | iStock

OIL & G A S SPECIAL SEC TION

Hilcorp’s assets in

production, Hilcorp also joined with University of Alaska Fairbanks researchers on a four-year, $9.7 million study financed by the US Department of Energy to test a new technique for bringing heavy oils to market. The technique is in its third year of study at Milne Point and, according to a presentation prepared for October 2020, the results are inspiring.

“Initial scoping studies suggest that successful implementation… could increase heavy oil recovery by 50 percent on the North Slope of Alaska and increase America’s oil reserves by tens of billions of barrels,” states a summary about the project by the National Energy Technology Laboratory dated March 31, 2020.

Recovering heavy oils could be key to revitalizing the tapped-out areas of Prudhoe Bay, where most of the “easy oil” has already been recovered.

Alaska’s heavy oil, unlike other heavy oil reserves, exists in relatively shallow pools and is colder, and therefore more viscous, than deeper oils.

The project is being tested at Schrader Bluff within the Milne Point Field. According to information from the National Energy Technology Laboratory about the project, Schrader Bluff sands were deposited around 70 billion years ago and consist of fine-grained sandstone mixed with silt and mud. The reservoir is about 15 feet thick.

Moving heavy oils with seawater, a common injection method, had already been tried at Milne Point. Using steam-based technology, which is the most common method for extracting heavy oils in oil fields and oil sands around the world, is not an effective tool on the North Slope because it could lead to permafrost thawing and result in significant and severe environmental impacts.

Advanced polymer flooding is a process by which polymers are added to water to thicken it and then the polymer-thickened water is injected

70 | May 2021

Alaska Business www.akbizmag.com

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kodda | iStock

OIL & G A S SPECIAL SEC TION

Viruses and Volatility Stabilizing oil prices and the ebbing pandemic are good news for the North Slope

By Melissa Bannigan

N

orth Slope workers fly in to work on a Boeing 737 owned by one of the borough’s largest oil producers and then spend two weeks working 12- to 16-hour shifts while living in camps alongside their coworkers. Or that used to be a standard operating procedure before the worldwide pandemic.

So what happened in 2020 on the North Slope, where people live and work in close, communal environments and a novel coronavirus pandemic forced everyone to take a little more space?

Alaska’s oil and gas industry is accustomed to the yo-yoing of economic cycles, but COVID-19 was a whole new issue to bounce back from. It caused companies to quickly reassess and implement new safety measures, such as mandating health check-ups for employees before they could travel to various locations from Fairbanks or Anchorage.

And even despite taking new precautions, a worker at Prudhoe Bay tested positive for COVID-19 in March 2020, becoming the first person to get struck by the illness in the oilfields on the North Slope. After the worker at Prudhoe Bay tested positive for COVID-19, it was clear that North Slope operators needed to do more to protect critical workers.

ConocoPhillips immediately paused flights of its rotation crew between Anchorage and the Kuparuk and Alpine

72 | May 2021

Oil and gas prices dramatically dropped in February: triggered by disagreements over oil production costs between Russia and Saudi Arabia, crude prices crashed 65 percent during the first quarter of 2020.

This prompted an oil glut, forcing producers around the world to scale back production.

fields for two weeks. BP continued operating flights to Prudhoe Bay, which it operated at the time, but scaled back non-essential operations. The company also conducted pre-flight health screenings for all employees.

Even as companies operating on the North Slope prioritized safety, economic realities meant they needed to focus not only on preventing their employees from contracting COVID-19 but on whether they could even continue employing all of their workers.

Because while a positive test definitely wasn’t positive news for North Slope operators, it wasn’t their introduction so the problems the pandemic would offer. Oil and gas prices dramatically dropped in February: triggered by disagreements over oil production costs between Russia and Saudi Arabia, crude prices crashed 65 percent during the first quarter of 2020. This prompted an oil glut, forcing producers around the world to scale back production.

Between the fluctuating price of oil and a need to protect workers, the North Slope tightened operations and reduced its workforce, and multiple rounds layoffs took place as oil operations adjusted. In February 2020, the total labor force on the North Slope was 3,900: a year later, it was down to 2,982.

Various Costs On April 7, the state’s biggest oil producer, ConocoPhillips, announced

Alaska Business www.akbizmag.com

OIL & G A S SPECIAL SEC TION

Schlumberger was just one of many oilfield service companies, including Peak Oilfield Service, Baker Hughes, and Halliburton Energy Services, to send notice to the state announcing job cuts. that it would immediately cease drilling any new wells. By the end of the month, the behemoth producer announced it would cut oil production in Alaska by about 100,000 barrels a day due to plummeting prices.

And it wasn’t just ConocoPhillips that was suffering. Schlumberger’s first quarter revenue of $7.5 billion decreased 5 percent year-on-year, while its year-on-year revenue in North America sank a dismal 17 percent as drilling activity declined. To preserve cash, the company cut its dividend by 75 percent. Salaries were cut, and the company then took what it saw as a necessary step to close facilities and furlough personnel.

In fact, Schlumberger was just one of many oilfield service companies, including Peak Oilfield Service, Baker Hughes, and Halliburton Energy Services, to send notice to the state announcing job cuts.

Over the course of the year, news of layoffs kept trickling in, and employees have continued being cut in 2021. In February, ConocoPhillips announced plans to lay off or give voluntary severances to 95 of its workers. It’s not clear how many of these employees worked in Anchorage or on the North Slope, but what is clear is that a year after the pandemic began, all activities, from production to employment, are still being impacted. www.akbizmag.com

Sustainability

Partnership – Energy - Excellence

Alaska Business

May 2021 | 73

OIL & G A S SPECIAL SEC TION

And that’s distressing news for the entire state. According to the Resource Development Council, “The oil industry accounts for one-quarter of Alaska jobs and about one-half of the overall economy when the spending of state revenues from oil production is considered. In other words, without oil, Alaska’s economy would be half its size.”

One of Alaska’s other major industries, tourism, was also devastated by the pandemic. Unfortunately for many tourism-based Alaska companies, 2021 will present another difficult season as cruise ships will not return and easing travel and other restrictions likely cannot occur quickly enough to carry them through another rough year.

So it’s not surprising that, for a variety of reasons, in March 2020 the state classified oil and mining as essential industries, allowing them to mitigate as much as possible the dangers of the pandemic while remaining in operation.

Rather than working two weeks on, two weeks off, shifts were extended to twenty-one days to allow workers to safely quarantine. But these stricter safety measures couldn’t mask the fact that, even with another week tacked onto shifts, the North Slope’s biggest industries would need to continue production with a pared down workforce.

Of course it has affected the profitability of the North Slope.

Compared to a profit of $2.8 billion for the second quarter of 2019, in the second quarter of 2020, BP (which was still operating Prudhoe Bay at the time) had an underlying replacement cost loss of $6.7 billion. Other companies faced similar losses.

A Year Later In March, Alaska’s Revenue Department published a Spring 2021 update to its official Fall 2020 Revenue Forecast. The report includes the Department’s forecast of oil prices, oil production, and state revenue.

For FY2020, oil prices on the North Slope averaged $52.12 per barrel. On an upward trajectory, the forecast for 2021 is $53.05 per barrel and $61 per barrel for 2022. Although drilling and pricing were both reduced in 2020, 74 | May 2021

“If we keep up this brisk pace of vaccinations, we will soon get to the point where further spread of the disease will become unlikely.

I thank those individuals who have worked hard to get us to this point and encourage Alaskans to keep it up. Because of efforts made by all Alaskans, we are seeing healthier communities and a healthier economy.”

Governor Mike Dunleavy

“over the coming decade, the forecast represents a lower expected decline rate for the larger currently producing fields as well as an improved outlook for new developments due to higher oil price expectations.”

As markets make their slow recovery, Alaska may see a rosier picture because of higher oil prices and increased production.

In 2021, it looks like two major projects may begin on the North Slope that could increase new production through the Trans Alaska Pipeline System by 200,000 barrels per day by 2025.

ConocoPhillips is nearing the start of Front End Engineering and Design (FEED) on its Willow project in the National Petroleum Reserve-Alaska. A decision on this potentially $6 billion development should be made by the end of the year.

And Oil Search, with minority partner Repsol, is still working on developing the Pikka project. Oil Search would like to launch final engineering on the project soon.

Projects such as these benefit the state in large part through the creation of jobs, and fortunately Alaska has led the country in many ways in reducing COVID-19 counts and distributing vaccinations. As of early April, almost a third of Alaskans had received their first vaccination shot and more than onefifth had been fully vaccinated.

Governor Mike Dunleavy said in April, “If we keep up this brisk pace of vaccinations, we will soon get to the point where further spread of the disease will become unlikely. I thank those individuals who have worked hard to get us to this point and encourage Alaskans to keep it up. Because of efforts made by all Alaskans, we are seeing healthier communities and a healthier economy.”

As of publication, Alaska plans to enter Phase II of its reopening plan on May 22. This will allow the state to resume certain economic activities statewide and on the North Slope. Under phases I and II, oil and gas companies needed to come up with creative strategies to keep its employees safe, including only maintaining its essential workers. However, Under Phase II all businesses will be able to open at 100 percent capacity.

In one of the world’s most challenging energy centers, the pendulum appears to finally be swinging back toward profitability. For the employees who travel to this remote borough for work, the reopening of Alaska, and indeed, the entire country, will offer increased stability as they once again live and work in the camps on the oilfields.

Alaska Business www.akbizmag.com

OIL & G A S SPECIAL SEC TION

EXPLORATION/PRODUCTION Anchorage, AK 99503 glacieroil.com 907-334-6745

ALASKA GASLINE DEVELOPMENT CORPORATION

producer and have been a leader in oil and gas exploration and development in the state for more than fifty years.

Frank Richards, Pres.

3201 C St., Ste. 200 Anchorage, AK 99503 agdc.us 907-330-6300

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Exploration and production.

1952/1952 | 9,680/1,110

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Alaska LNG is an integrated gas infrastructure project with three major components: a gas treatment plant located at Prudhoe Bay, an 807-mile pipeline with offtakes for in-state demand, and a natural gas liquefaction plant located in Nikiski.

Ron Wilson, Pres./GM 11500 C St., Ste. 200 Anchorage, AK 99515 doyondrilling.com 907-563-5530

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2010/2010 | 6/6

BOREALIS ALASKA OIL

2009/2009 | 40/40

DOYON DRILLING

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.

David Pfeiffer, CFO 560 E. 34th St., Ste. 200 Anchorage, AK 99503 nordaqenergy.com 907-646-9315

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

North Slope exploration.

John Hendrix, Pres./CEO 188 W. Northern Lights Blvd., Ste. 620 Anchorage, AK 99503 907-277-3726

1982/1982 | 400/400

FURIE OPERATING ALASKA

HILCORP ALASKA David Wilkins, Sr. VP PO Box 244027 Anchorage, AK 99524 hilcorp.com 907-777-8300 Oil and gas operator/producer.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2012/2012 | 3,200/1,450

OIL SEARCH Bruce Dingeman, EVP/Pres. AK PO Box 240927 Anchorage, AK 99524 oilsearch.com 907-375-4600

Erec Isaacson, Pres. AK 700 G St., PO Box 100360 Anchorage, AK 99510 conocophillipsalaska.com 907-276-1215

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Among the top two oil and gas lease holders on Alaska’s North Slope and operator of the Pikka Unit located east of the Colville River and seven miles northeast of Nuiqsut. Oil Search expects first production from Pikka in 2025.

2020/2020 | 15/14

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

An independent exploration and production company. We are Alaska’s largest oil

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TECHNOLOGY TRANSPORTATION, PORTS & MARITIME

MINING

Big Mining, Big Shovels

Specialized equipment ensures safety and productivity

themanofsteela | iStock

By Connor Lochmiter

78 | May 2021

Alaska Business www.akbizmag.com

M

ining is the tedious and feverish work of digging precious things out of the ground. Gold mining in Alaska carries with it the sepia-toned nostalgia of 49ers carefully sifting through the infinite waters for tiny flakes of wealth.

Those in the industry call this strategy of mining placer mining. And while a few may have made their fortunes that way, both laziness and ambition caused people to search for a more direct path to success. Placer mining is feasible because water flows around and through rock formations with gold veins, slowly eroding the gold and refining it as the water flows downstream. But why not just get the gold directly from the vein?

Lode mining, or hard rock mining, is mining minerals from their very source. As the name implies, hard-rock mining requires a lot more force than letting a stream gently move sediment through settling screens. Even with an army of whistling dwarves to manually chip away at the stone, first one must answer the challenge of getting to the mineral deposit, which is often deep underground. Gold is not the only valuable resource at stake; Alaska mining also produces silver, zinc, lead, and other minerals in smaller quantities. Mining in Alaska has grown to the point that minerals are Alaska’s second largest export commodity.

With the advent of the first steam powered excavator in 1796, people have increasingly abandoned the quaint shovels and pickaxes of ancient times in favor of power. With mineral lodes often having mineral concentrations in the tens of grams per metric ton, substantial work is necessary to remove the valuable minerals from the common rock.

The development and refinement of heavy machinery has made lode mining faster, safer, more efficient, and more profitable.

Modern mining in Alaska uses the toughest and most powerful machinery available to drill, lift, carry, and crush more ore-carrying rock than ever before.

Even with access to the strongest earth grinding machines man makes, the sought-after commodity is still buried in the earth, and it’s necessary to get the machines to the minerals.

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The excavators have a massive reach of up to 73 feet, enough to gobble up a typical single family home in a single bite. Without adjusting their position these excavators can dig a hole 28 feet deep. Powering these machines often requires not one but two engines, each with the ability to generate up to 2,000 horsepower.

Open pit mining involves positioning the mine directly above the minerals and digging down—removing everything between an operation and the precious minerals. As work on the mine progresses, a pit grows.

Alternatively, the plan can be to dig a tunnel through the earth to the material and extract the mineral ores in a more surgical approach.

Open Pit Open pit mining requires the breaking up, displacement, and removal of massive amounts of earth. The equipment used in this type of mine doesn’t look that unique if seen from a distance. The machines would seem commonplace and fit in perfectly at any commercial construction site: open pit mining uses tracked excavators, front

end loaders, and dump trucks just like other earth moving operations. But up close these machines are different— they are huge.

The excavators have a massive reach of up to 73 feet, enough to gobble up a typical single family home in a single bite. Without adjusting their position these excavators can dig a hole 28 feet deep. Powering these machines often requires not one but two engines, each with the ability to generate up to 2,000 horsepower.

The front loaders stand 23 feet tall, almost four Ryan Seacrests in height.

With the bucket raised to its maximum height, it towers to more than 35 feet. The bucket can hold as much as 57 cubic yards of material, which is approximately equal to a 10-foot by 24foot backyard pool.

The dump trucks that are paired with these substantial excavators and loaders are sufficiently endowed to keep pace with the flow of moving earth. A single dump truck can, in a single load, haul as much as 211 tons, which is more than enough to transport more than 450 polar bears in a single trip.

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Underground mining often utilizes explosives placed in drilled holes to blast apart material so it can be removed for processing. florluca | iStock

Underground mining uses machinery: it also uses explosive chemistry. The (in comparison) boring machines are used to create the necessary holes to strategically place explosives, which do the yeoman’s work in breaking up the earth.

82 | May 2021

Open pit mining operations don’t simply have one of each of these machines, but often have several excavators, many more front end loaders, and dozens of dump trucks to keep a constant flow of production.

Underground Mines The goal of underground mining is the same as open pit mining but must be done within much smaller spaces.

While open pit mining has a front loader as big as a house, underground mining tries to pack strength into a much smaller package. Underground machines also have the unique property of being designed with substantially smaller turning radii than traditional machines so that the equipment can better maneuver in small spaces. These loaders have lift capacities less than a fifth the volume of their open pit counterparts. Underground loaders and dump trucks have a max payload of a “mere” 50 tons.

But underground mining adds drill rigs to the mix of machines. These

machines can drill holes as big as 3.5 inches in diameter as much as 90 feet deep. While that is an impressive hole to drill in solid rock, what use could a 3.5 inch hole be when trying to mine vast amounts of minerals?

Underground mining uses machinery: it also uses explosive chemistry. The (in comparison) boring machines are used to create the necessary holes to strategically place explosives, which do the yeoman’s work in breaking up the earth.

And the explosives require their own specialized equipment. Some modern mines use remote detonation systems that allow the operators to detonate the explosives from the surface so that no one is in the mine at the time of detonation. Once the rock and ore are suitably broken up for removal, the loaders and dump trucks move the material above ground for processing.

Dump trucks, drills, and loaders are highly visible mining machinery. But underground mining requires additional

Alaska Business www.akbizmag.com

heavy machinery that may be harder to see. As holes get deeper beneath the earth, with one cavernous artery connecting off another, human and engine requirements for air are no trivial matter. The fans that push air into the mines have power ratings in the hundreds of horsepower. And with equipment as necessary for safety and operation as ventilation fans, redundancy is required.

With Alaska playing steward to one-third of the US fresh water supply, underground mines must also contend with keeping their machines above water.

Water seeps into the mines from various hydrogeologic sources. Managing this problem requires construction of massive wells and the capacity to continuously remove thousands of gallons per minute of water from the mines. Mining equipment used to ensure the safety of the workers is just as impressive and specialized as the equipment used to move the earth out of the mine.

Open structures beneath the earth require support, patching, and sometimes filling in order to ensure the safety of workers and the integrity of the mine. Underground mines operate paste manufacturing equipment, which mixes cement with sediment and materials dug from the mine to produce a hardening mixture. The paste can be used to fill open cavities, reinforce loose or unstable material in the walls and ceilings of the mine or can otherwise be used to patch work already completed.

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Mills and More…

Even after operators extract ore from the open pit or underground mines, the process is just begun.

The dump trucks play their critical role moving the rock and ore to the mill. At the mill, the hard rock and ore are fed into grinding and refinement processes to break up the minerals and reduce the size of the pieces of rocks so that the minerals can be extracted. These massive grinders need thousands of horsepower to reduce the size of the rock as necessary for the rest of the chemical and physical extraction processes to be effective. www.akbizmag.com

C O M M U N I T Y B U I L D I N G B LO C K S. Mines in Alaska are an economic development director’s dream, especially for local communities. A mine is labor intensive, so it provides year-round, high-paying jobs.

It’s a substantial source of property tax. Then there’s the local buy, charitable donations and energy purchases from the hometown utility, which subsidize everyone’s electricity rates. Mines, like Hecla Greens Creek, are critical infrastructure for Alaska communities.

*Photo was taken in 2019.

Alaska Business

heclagreenscreek.com

May 2021 | 83

Machinery used in underground mining is often designed with substantially smaller turning radii so that the equipment can better maneuver in small spaces. agnormark | iStock

With Alaska playing steward to one-third of the US fresh water supply, underground mines must also contend with keeping their machines above water… Managing this problem requires construction of massive wells and the capacity to continuously remove thousands of gallons per minute of water from the mines.

Massive conveyors move the material to the final stages of ore processing.

Ore is moved to leech extraction areas to remove the final remnants of the valuable minerals.

84 | May 2021

For all the specialized equipment and machinery, each piece of equipment requires specialized training to operate. Even routine maintenance requires specialized

training, skills, and tools. Imagine the logistical challenges involved in changing a tire on a machine as big as a building with wheels that are taller than the average person and weigh as much as a small sedan. The individuals that operate and maintain the fleet of machines are just as unique as the equipment they operate.

With the quickening march of technology finding new and more exotic uses of materials, commercial and industrial need for raw elements and rare minerals is only likely to increase. And while gold will always be worth removing from the ground, future mining activities in Alaska may include new materials like extracting and producing novel forms of carbon for the next cutting-edge technology. The only question is, what will the right machine be for the job?

Alaska Business www.akbizmag.com

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FISHERIES

Catching Up on T Alaska’s Fisheries Below average yield in 2020; better news for 2021

By Vanessa Orr 86 | May 2021

here’s no doubt that 2020 wasn’t a good year, and this is especially true for those in Alaska’s fishing industry. Between having to take pandemic precautions, seeing smaller runs of some fish species, and losing markets as restaurants throughout the state shut down, it was not a banner time. And though nothing is set in stone for 2021, there’s hope that the industry, at least in some areas, will be able to recover.

“There were a number of challenges posed to the fishing industry in Alaska in 2020—most notably, the COVID-19

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“While we don’t yet have final gross revenue values for the 2020 Alaska fisheries, I would say it was definitely a below average year statewide across all species; possibly substantially below average. The good news, though, is that 2021 is looking better.”

Forrest Bowers, Deputy Director, ADF&G

A purse seine vessel in Bristol Bay. ADF&G

pandemic,” says Forrest Bowers, deputy director, Alaska Department of Fish and Game (ADF&G), Division of Commercial Fisheries. “While we don’t yet have final gross revenue values for the 2020 Alaska fisheries, I would say it was definitely a below average year statewide across all species; possibly substantially below average.

The good news, though, is that 2021 is looking better.”

A Perfect Storm COVID-19 affected the fishing industry in myriad ways: not only www.akbizmag.com

did fishermen have to worry about catching or transmitting the virus but processors had to find ways to protect their employees and to keep the product safe. Restaurants closed their doors, limiting the markets where fresh fish could be sold and lowering prices across the board. And fishery science was affected too.

“Early in the year, we weren’t even sure if we would even be able to operate our stock assessment projects,” says Bowers. “All of our fisheries are managed based on preseason or in-season assessment of fish biomass or run size, and that is normally done by having crews out in the field looking at populations. This often requires that we have crews living together in congregant settings or traveling or being based out of small communities in rural Alaska.”

ADF&G decided to try to operate as many field projects as it could while minimizing disruptions from the pandemic and succeeded in continuing its stock assessment projects. “This was very successful; by implementing health plans, we were able to avoid any situations where we had to constrain any fisheries because of COVID-19,” says Bowers. “That is one positive thing about 2020.”

Unfortunately, there were a number of negatives as well. Premium seafood products harvested in Alaska that are served fresh, such as sablefish, king crab, halibut, and salmon, lost their markets as numerous restaurants closed or were required to go to takeout only. “That market was disrupted Alaska Business

pretty significantly, and we saw declines in prices for those species,” says Bowers.

To keep workers and the food chain safe, processors had to undergo numerous—and expensive—COVID-19 mitigation procedures.

In Bristol Bay alone, for example, Intrafish Media estimates that processors spent between $30 million and $40 million on pandemic-related costs during June and July of 2020.

This number includes having to put employees up in hotels or other 14-day quarantine sites at a cost of roughly $3,500 per worker; chartering flights for employees to isolate them from commercial flight passengers; having medical professionals on-site; and testing workers multiple times for the virus.

“Unfortunately, some of the processing plants did have outbreaks, which resulted in having to slow down production, which was problematic as well,” says Bowers. “Overall, however, the industry did a really good job at minimizing disruptions.”

“Commercial fishermen were hit really hard under COVID, as were many businesses,” agrees Frances Leach, executive director of United Fishermen of Alaska. “It was a real challenge, especially in the beginning when the virus picked up; there were rural communities in Alaska asking Fish and Game not to hold these fisheries, which was a big concern for us. There were even some fishermen in these communities willing not to fish to keep their communities safe.”

May 2021 | 87

“By implementing health plans, we were able to avoid any situations where we had to constrain any fisheries because of COVID-19. That is one positive thing about 2020.”

Forrest Bowers, Deputy Director, ADF&G

A crab trap in Ketchikan; Alaska saw a "record or near record" harvest of Dungeness crab in 2020.

Eric Smith | iStock

United Fishermen of Alaska worked with the administration and other entities to make sure that communities were protected while enabling fishermen to continue their livelihood, which included getting commercial fishermen listed as critical infrastructure. It also worked with the State of Alaska Unified Command and processors and stakeholders in the industry to come up with Mandate 17, which included best practices and guidelines for commercial fishing during COVID. All fishermen were required to sign an acknowledgement form that they agreed to follow the mandate and could not sell fish without showing proof of the signed document.

“Though we had fishermen fishing throughout the entire year, our biggest concern was salmon season, when there’s such a big influx of people coming into Alaska to work at processing plants and as deck crews, as well as Alaskans going into smaller communities,” says Leach.

“A lot of vessels are mom-andpop family businesses, so it was a real challenge for them to put all of these protective measures into place,” she adds. “Bigger operations had to quarantine crews that they brought in, which resulted in a lot of extra costs, and processors had to spend millions to make their facilities safe.”

She adds that the poor salmon season, combined with low fish prices and the Chinese tariff, made fishing even more of a struggle, especially for younger fishermen still dealing with permit and boat payments.

“We’re really proud of our fishermen; as far as vessels go, we were not linked to any major outbreaks in the state,” says Leach, adding that Governor Mike Dunleavy also praised their efforts in keeping Alaskans safe.

Salmon Production Down, Crab Up According to Bowers, 2020 harvest numbers for different species were a “mixed bag” across the state.

Total salmon production equaled 117 million fish, a decline from the previous year’s total of almost 207 million, which Bowers credits to a massive decline in pink salmon across the state.

“This was not a great year in terms of the pink salmon fishery, which was 88 | May 2021

Alaska Business www.akbizmag.com

down 44 percent from 2019,” he says. In 2019, pink salmon totaled 129 million fish; in 2020, it was roughly 60 million fish.

Since 1975, this was the 13th lowest salmon harvest on record, resulting in a 56 percent decrease in the value of the fishery, following a decade of relatively large salmon harvests.

“Sockeye production was good in 2020, primarily because of a large harvest of 40 million fish in Bristol Bay,” Bowers adds. “The rest of the state was below average, so it was a tough year for sockeye unless you were fishing in that area.”

While things have improved in the Pacific Cod fishery in the Gulf of Alaska since the federal fishery disaster in 2018, cod abundance was still relatively low in the Gulf.

“The positive news is that we did have a very good Dungeness crab fishery across the state, with a record or near record harvest,” Bowers says.

Two fishermen work on a net in Juneau.

Dee | iStock

What Does 2021 Hold?

According to Bowers, ADF&G is forecasting a harvest of 190 million

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A purse seine vessel in Bristol Bay. ADF&G

salmon across all species, which would be a 40 percent improvement over 2020 numbers.

“The main difference in the forecast for this year is our projected pink salmon harvest; we’re expecting to go from 60 million pink salmon in 2020 to 124 million in 2021.”

Nearly half of that number is expected to come from Prince William Sound, with the rest split between Southeast Alaska, Kodiak, and the Alaska Peninsula.

Bowers explains that pink salmon have a unique odd/even year life cycle, and that typically one year class is stronger than the next. “Across Alaska, 2019 was a pretty good pink 90 | May 2021

salmon year, and the fish returning in 2021 are the offspring of that year class,” says Bowers.

While Pacific cod harvest levels are expected to increase from 2020 numbers, they will still remain relatively low when compared to a decade ago. “The trend is one of improvement for Pacific cod stocks in the Gulf of Alaska; conversely, the Bering Sea area will see slight declines in cod and in the walleye pollock fisheries,” says Bowers.

“We are expecting to see improvements in some other large fisheries in the Bering Sea including yellowfin sole, northern rock sole, and some flatfish stock that comprise the

remainder of the groundfish fishery,” he adds. “Sable fish abundance is improving, and we expect to see a steady increase there for the next several years.”

Halibut stock has been at a relatively low level for the past several years, and the allocation for 2021 is increasing slightly from the 2020 level.

While Mandate 17 is no longer in effect for commercial fishermen, Leach says that they are still urging caution during the 2021 season.

“The fact that vaccinations are happening and cases are lessening is great, but we can’t let down our guard,” she says. “We’re encouraging people to still follow the protocols to keep

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folks safe; potential outbreaks could still happen, and with salmon season just around the corner, we need to be cognizant of that.”

Preparing for the Future Even as the pandemic wanes and predictions for 2021 are made, it’s important to look at the long-range issues facing Alaska’s fisheries.

“When you look back at the past decade of very high levels of salmon production in Alaska, what we’ve seen in recent years is a lot of volatility across stocks, and from one year to the next,” says Bowers. “We know that the North Pacific Ocean is a challenging place to be a juvenile salmon right now, and www.akbizmag.com

Alaska Business

May 2021 | 91

Even though the restaurant market declined in 2020, some of the loses were offset by supermarket retail sale of Alaska seafood products.

Bristol Bay Regional Seafood Development Association

“The trend is one of improvement for Pacific cod stocks in the Gulf of Alaska; conversely, the Bering Sea area will see slight declines in cod and in the walleye pollock fisheries… We are expecting to see improvements in some other large fisheries in the Bering Sea including yellowfin sole, northern rock sole, and some flatfish stock that comprise the remainder of the groundfish fishery.”

Forrest Bowers, Deputy Director, ADF&G

the decline and abundance of certain stocks, such as sockeye and chinook, is the result of marine survival.”

While Alaska is fortunate in that its freshwater habitat is in good shape due to the lack of dams, pollution, and urbanization, ocean conditions are causing concern.

“We’ve been attributing declines in abundance to early marine survival; the condition of the ocean when the smolt enters it,” says Bowers. “They are vulnerable at this early age and this small size; if the temperature isn’t 92 | May 2021

right or if food sources aren’t available, there are going to be elevated levels of mortality.

“We know that there have been marine heat waves in the North Pacific that have increased temperatures to levels that are lethal to salmon in the ocean,” he adds. “This is contributing to the increased uncertainty about what the returns will be in a given year.”

Even with all of the predictions, the unforeseen can still happen.

For example, the decline in chum salmon production in 2019/2020 was

unexpected, as the species had been at relatively high abundance in Southeast and Prince William Sound.

“We didn’t expect to see that decline, which we believe is attributable to marine survival,” says Bowers. “It will be a challenge, for us and industry, to remain flexible and to use all the tools that we have. We can’t only rely on preseason projections but will need to have personnel in the field to run streams. On the industry side, they will need to be flexible to respond with production and tender capacity in the areas where it’s needed.”

Emerging Industries While the fishing industry is holding its own, a new mariculture industry is emerging in the state, which could become integral to Alaska’s economy.

“Building the mariculture industry is a priority for the state, which is why former governor [Bill] Walker created the Alaska Mariculture Task Force,” says Bowers. “We’re working on ways to improve the process for permitting kelp and oyster farms and how to grow that industry. There’s a lot of interest and a lot of opportunity, particularly in kelp farming; while it’s small right now, it is expected to grow.”

He adds that while the pandemic was challenging for the fishing industry overall, it was positive in that more people began cooking at home and developing an interest in seafood.

“That retail market was pretty strong

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Drift gillnetters in Bristol Bay. ADF&G

“When you look back at the past decade of very high levels of salmon production in Alaska, what we’ve seen in recent years is a lot of volatility across stocks, and from one year to the next.

We know that the North Pacific Ocean is a challenging place to be a juvenile salmon right now, and the decline and abundance of certain stocks, such as sockeye and chinook, is the result of marine survival.”

Forrest Bowers, Deputy Director, ADF&G

94 | May 2021

compared to what it has been,” he says.

“As the restaurant market declined, some of those losses were offset by supermarket retail sales.”

A growing interest by consumers in eating seafood that has been harvested sustainably can only help Alaska in the long run.

“It will be interesting to see what happens as we come out of the pandemic and to see how consumers react,” says Bowers. “We are fortunate in Alaska that we have pristine freshwater habitat and a commitment to sustainable management, and that provides a lot of assurance in terms of the underpinnings of the industry and giving it the flexibility to operate going forward.

“Fishing is a dynamic industry, and over the last 100 years or so, Alaskans have demonstrated their resiliency and the flexibility to adapt to various abundance levels and still produce a high quality product,” he adds. “It’s one of the things we do really well.”

Alaska Business www.akbizmag.com

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Not In My Back-Yacht Marine industrial debris cleanup a constant need in Alaska

By Tracy Barbour

A

laska’s thriving maritime industry is supported by a variety of environmental companies and other organizations that help clear industrial debris from the state’s waterways and shoreline. These entities perform a multitude of duties to keep Alaska’s ecosystem as pristine as possible while combating a never-ending problem.

Marine industrial debris—which often makes its way to the land—is a significant problem in Alaska. It involves every type of waste material that you can think of: from wrecked airplanes to fishing boats and hurricane debris, 96 | May 2021

says Chris Pallister, founder of Gulf Keepers of Alaska (GoAK).

So what’s the most common type of marine debris Pallister sees? “By tonnage, it’s commercial debris: massive nets, big bundles of line, all kinds of buoys and fenders, fishing totes, drums, barrels, baskets, and crates,” he says. “Every time a boat goes down, you wind up with Styrofoam and busted boat components.”

By quantity, consumer plastic is the most troublesome kind of debris that invades Alaska’s waterways and coastlines.

“We are dealing with massive amounts of consumer plastics,” Pallister says. “Every time there is a catastrophe in the western pacific, it winds up on our side of the ocean because of the currents and wind.”

The plastic comes from everywhere, and it’s a horrible problem that also impacts Alaska’s wildlife. Sea birds often endanger themselves eating plastic while sea lions and harbor seals have been known to chew on potentially harmful bleach bottles. “It’s an incredible environmental disaster that’s had far too much effort in combatting it,” Pallister says.

Todd Duke, general manager of compliance services for Resolve Marine, attributes much of Alaska’s marine industrial debris to what he refers to as the “Amazon effect.” People quarantined at home for the past year have been using their disposable income to shop on Amazon. com. Mobile containers loaded with their purchases have been placed on ships bound for Alaska waters, but some of them never reached their destination. “In the past year, there have been at least five significant cases where the

Alaska Business www.akbizmag.com

Resolve Marine salvages a barge.

Resolve Marine Group

weather has been rough, and the seas have been violent. Lashings have broken and shipping containers have fallen overboard.”

He continues: “Who knows what is inside of the containers; they may contain anything from tennis shoes to electronics. And a lot them, presumably, contained hazardous materials.”

Marine debris is essentially pollution, and all the waste material that is out there is not coming from ships, says Buddy Custard, president and CEO of Alaska Chadux Network.

The problem originates from two sources: ships and pollution from the land base—from population centers.

But marine debris isn’t just an Alaska issue; every coastal environment experiences this problem, says Custard, who lives in Juneau. He explains: “You have storms that throw debris from the land into the ocean, then the current takes it all over the place. Debris migrates and respects no country’s borders. For example, 10 to 20 million tons went into the water after the tsunami in Japan. A lot of www.akbizmag.com

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that sank, but about 1.5 million tons moved across the ocean, and much of that ended up on Alaska’s shores.”

Nature of the Work Alaska’s environmental companies and other organizations are diligently working to address the issue of marine industrial debris. The nature of their work varies, according to the waste material being retrieved. Resolve Marine, for example, is primarily an emergency response, salvaging, and cleanup company. As a contractor to the US Coast Guard, the company has a significant amount of experience cleaning up debris in Alaska’s waterways, mostly after hurricanes. “In a post-hurricane case, where there’s a lot of debris, one of the first things we will do is some over-flights and get an idea of where the stuff is and what it is,” Duke says. “Then we make a plan for the best way to extract it.”

Typically, Resolve Marine establishes an environmental unit during the cleanup project. It also has a scientific support coordinator from the National Oceanic and Atmospheric Administration join the team. “They can

NRC Alaska (US Ecology) performs marine environmental services at the Port of Alaska.

NRC Alaska (US Ecology)

look at the flora and fauna and give us some best practices,” Duke explains.

“We want to look at the environmental resources at risk and make sure we don’t do any more damage or have a plan to mitigate that damage.”

Resolve Marine has a large team of personnel available to work on cleanup projects. Some of them may be divers who go down and rig the debris with

straps or cables and pick it up with a crane. The majority of the debris the company removes is vessels, along with fuel tanks. “If it’s a vessel, the first thing we want to do is remove any fuel that is on there,” Duke says. “As we’re removing the debris, we don’t want to tear open any tanks and create a big spill.”

The equipment that Resolve Marine uses depends on the job at hand.

Wreck removal from Alaskan shoreline

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Alaska Business www.akbizmag.com

Surface supply diving, for instance, can involve everything from diving equipment to boats, barges, and cranes. “There’s a person in their dive suite with a helmet on, and we pump air down to them,” Duke says. “It’s more complicated than the scuba diving that most people are familiar with.”

The company also employs pumping equipment to remove fuels and oils, and it always carries an assortment of cutting equipment and torches to reduce the size of the debris when needed. Roller bags are another important item that cleanup crews use. “This is a very heavy-duty rubber bag that we can slide underneath a big pile of debris like a barge or boat and inflate it with an air compressor,” Duke explains. Then we can pull that vessel or whatever back into the waterway and refloat it. We use the roller bag on the marsh grass because it causes less damage. We also have some inflatable bags that look like parachutes or pillows to bring something to the surface that may be sunken.”

Resolve Marine relies heavily on aircraft for its cleanup work and maintains its own fleet of planes,

Beach cleanup and debris containment exercise near Cordova.

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Alaska Business

May 2021 | 99

Oil spill response booming and skimming exercise in Prince William Sound.

Training a local fishing boat off Kodiak Island in how to deploy and use an oil spill containment boom arm and skimming device as part of the Vessel of Opportunity Program.

Alaska Chadux Network

Alaska Chadux Network

100 | May 2021

So GoAK secures government grants and other funding to support its painstaking efforts. Consequently, the organization has removed more than 3 million pounds of plastic debris from more than 1,500 miles of critical and sensitive coastal habitat.

Alaska Chadux Network

including Pilatus PC-12 passenger and cargo aircraft. It also has a float plane to conduct surveys and to get people on the ground to take a closer look at debris when needed. In addition, the company frequently leases helicopters, which are helpful for lifting and flying out debris.

GoAK primarily focuses on shoreline cleanup involving everything from stranded fishing nets to plastics. It doesn’t have the capabilities or finances to remove large debris like wrecked boats, but the company’s cleanup crews pick up a substantial amount of plastics each year—400 to 500 tons from midMay to mid-September. And while the 2011 tsunami in Japan contributed to much of the garbage, it can’t be blamed for all the refuse, Pallister says. “The tsunami doubled the volume of debris, but it didn’t double the tonnage,” he says. “There was a tremendous supply of debris on our beaches long before the tsunami hit.”

Initially, GoAK began its cleanup work with volunteers, but the problem became far too vast for volunteers to address. “Over the years, we realized that we can’t effectively do this unless we do this on a really big scale, which requires a lot of money,” Pallister says.

GoAK’s work often takes place on remote beaches with no road access, which prevents the use of heavy equipment. “Even if you could [use heavy equipment], you wouldn’t because of the potential damage to the environment,” Pallister says. “So it’s all handwork. When we’re doing a fullscale cleanup, we’ll have two guys on chainsaws all day. It’s not a job for lightweights; it’s dangerous.”

Just getting to the shore can be dangerous for cleanup crews. Pallister explains: “For a long time, we were trying to do this from our small boats and use our floats. You’re subject to all weather, and the surf is beating you around. We’ve had inflatables flip several times with people in them.”

So the company opted to use helicopters, which are expensive— about $4,000 a day for a small helicopter—but they increase efficiency and safety. “The helicopters can land right where we have our boats and be on the beach in ten minutes, instead of an hour-long boat ride every day,” Pallister says. “They are handy for moving heavy stuff that we can’t move by hand. Plus we’ve used helicopters to fend off brown bears.”

In its marine debris cleanup activities, Alaska Chadux Network often responds to oil spills from a ship or facilities that deal with oil, such as a tank farm. The company uses containment booms to get oil spills and other debris under control, then it sweeps up the waste material with different equipment and collection devices. “When you’re dealing with debris that’s been oil or has contact with oil, it requires special expertise and handling,” Custard says. “Our personnel

Alaska Business www.akbizmag.com

have to wear proper protective equipment, eyeglasses, boots, gloves, and have proper training.”

Alaska Chadux Network collects and bags up marine debris and then works closely with state and regulatory agencies to properly dispose of it. The company also incorporates a research and development component that focuses on preventing oil spills or any accidents that can cause hazardous materials to infiltrate the ocean. “When there’s a marine accident, it’s just not the oil getting in the water,” Custard says. “When a ship strikes a rock, all the debris on that ship is also getting into the water… We’re looking at new technologies to prevent any kind of marine debris.”

National Response Corporation (NRC), a US Ecology company, focuses primarily on oil spill response.

As the world’s largest commercial oil spill removal organization, NRC has responded to some of the largest disasters in history, from fires and explosions to derailments to catastrophic oil spills like Deepwater Horizon, according to Paul Nielsen, NRC’s director of sales and marketing in Alaska.

NRC performs dockside services to assist in the removal and compliant management of recovered environmental pollutants, such as recoverable oil, oil-impacted marine vegetation, and oil-impacted debris resulting from damage and destruction of shoreline facilities caused by nature and human impact. The company performs rapid response and containment; on-site cleanup and site remediation; waste and debris profiling and analysis; waste and debris transportation treatment and disposal; closeout reporting; and waste and debris tracking assurances.

In Alaska, NRC provides a host of marine-related environmental services, including vacuum truck services; bilge cleaning, sludge, and slops removal; oily water removal; containment boom maintenance, installation and cleaning; preventative booming; standby and dock watch services; support for salvage operations and other marine related projects; 24-hour emergency spill response; and hazardous and non-hazardous waste transportation, treatment, recycling, and disposal. www.akbizmag.com

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Alaska Business

May 2021 | 101

Resolve Marine doing cleanup at Mona Island.

Resolve Marine Group

the necessary shipping paperwork and oversee all transportation of wastes from the project site to one of our treatment and disposal facilities,” Nielsen says. “Our extensively trained and experienced professionals work closely with regulators to ensure proper disposal of all materials.”

Maintenance and Prevention

NRC’s marine and terminal services focus on the response and industrial services needs of maritime shipping, port authorities, tug and barge operators, ports and marinas, and other government entities.

Nielsen says NRC’s cleanup efforts are performed by project teams with decades of experience and include

all the necessary equipment. The company provides dockside, shoreside, and floating equipment such as landing crafts and barges. It also supplies packaging, liners, containers, and all the required covers and containment devices to prevent further environmental exposure or release.

“Our seasoned professionals provide

Environment organizations use a variety of maintenance and preventative measures to minimize marine debris in Alaska. NRC has an extensive approach to addressing these areas. As part of its maintenance, preventative, and emergency response program, the company offers US Coast Guard regulatory compliance for vessels, barges, facilities, terminals, exploration and production, pipelines, railroads and government agencies. “With experience from performing 10,000plus responses annually, we offer convenience and reduced risk with single-source solutions,” Nielsen says.

“We work together with our customers from initial mobilization to final closeout to ensure we effectively handle all their response and disposal needs.”

Tune in with the Times

T

here are businesses that you do business with every year, every quarter— possibly every month that thrives regardless of market conditions, business cycles, or the economy. Or so it seems.

An easy and accessible tool— available in abundance and some designed to help you improve your business -- is podcasts.

According to Podcast Insights, 2020, there are over 850,000 active podcasts and over 30 million podcast episodes.

Thousands of these are devoted to business topics only.

Podcasts have evolved with seemingly lightning speed from the perception of a downloaded audio file years ago to an essential method of getting current business information. They are essentially an audio blog which makes them easy to access and portable. More than half, 51%, of consumers in the US listen to

By Christine Merki, Account Manager

podcasts. (Statista, 2019).

Once you start exploring, you’ll discover a podcast available for just about any business topic you can think of. Some podcasts discuss minerals & royalties, while others may discuss construction disaster, restoration, and freight delivery.

They range from the generic to the esoteric. I found one on random shipping weather forecasts.

Suppose you’ve considered starting your own, perhaps with your team or a group of colleagues. In that case, you know there are hosting companies, email courses, and all kinds of guidance to help you start. Yes, there are even podcasts for creating a podcast. Think of hosting a podcast as a possible way to establish you as an authority in your industry, an expert at doing business.

In the time it takes to scroll through your social media, you could gain valuable

information to help transform your business or learn how to hire the right people. You might even know someone that knows something about podcasting.

Christine has worked in Anchorage media for almost 20 years.

Her writing talents have earned her top honors as a recipient of the Alaska Broadcasters Association Goldie Awards. Her sales and marketing skills have helped countless clients connect with their target audience to achieve annual goals.

She unapologetically lures clients in with her homemade raspberry jam and lives with her salmon slaying beau and a ferocious cat named Maggie.

CHRISTINE MERKI

907-257-2911 | cmerki@akbizmag.com

– SPO N S O R E D C O N T E N T–

102 | May 2021

Alaska Business www.akbizmag.com

He adds: “We provide nationwide coverage from 125-plus locations throughout North America with extensively trained, certified, and experienced crews led by safety and regulatory compliance professionals.

Our professionals ensure the best available resources and 24/7 response capabilities to cover any type of emergency of any scale, from small spills to catastrophic events.”

Todd Duke Resolve Marine Group

Alaska Chadux Network supports a monitoring center as part of its preventative measures. This involves

examining all vessel movements that are happening in Alaska using tracking software. These efforts are facilitated through Marine Exchange Alaska, which Alaska Chadux Network funds.

“We can detect anomalies of large shipping vessels,” Custard says. “We can engage them to see if they have a mechanical problem or not, then we can help them get the right resources to mitigate the problem. We make sure all the appropriate agencies and response organizations are aware of a developing situation. Fortunately, most of the incidents are non-events. But it’s because of this vigilance that we have averted major disasters.”

In addition, Alaska Chadux Network helps vessels that are caught in storms and have to deviate from their route.

“That’s very important for the safety of the ship and crew, but it’s also about the cargo,” Custard says.

When Resolve Marine addresses a significant marine casualty, such as if a fishing vessel sinks or goes aground, it goes to great lengths to ensure all fishing nets and other debris are collected. “Our crews spend a lot of time walking the shoreline making

A dock structure collapsed sending the fuel bladder and fuel into the shoreline and water.

Global Diving and Salvage

sure all the lifeboats, Styrofoam, and other debris get picked up,” Duke says. “We have an environmental department that focuses on dealing with waste streams and making sure that any of our processes get disposed of properly.”

The company also has a not-forprofit company, Mission Resolve, whose main focus is environmental education.

“We’re constantly trying to educate the industry about their footprint, about properly disposing of things, taking care of your trash,” Duke says. “Just dumping offshore will not deal with the problem because it can wash back to the shore.”

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Alaska Business

May 2021 | 103

Mission Resolve also has a humanitarian mission. For example: the nonprofit sent a barge with a water purification plant to Freeport, Bahamas to ensure people there had clean drinking water after Hurricane Dorian hit several years ago. Mission Resolve is also a member of several environmental associations. “It’s our way of giving back,” Duke says. “Our slogan is to leave the world a better place. We’re very much for making that happen.”

Resolve Marine performs cleanup work at an Alaska beach.

Resolve Marine Group

Measuring Success Alaska’s environmental companies work under different types of contracts and use different metrics to gauge their success. Resolve Marine, for example, has held a federal contract with the US Coast Guard since 1995.

It’s a basic ordering agreement to cover time and material. “We only get paid when there is an actual incident,” Duke says. “It’s pre-negotiated rates for people and equipment.”

The company does one-off contracts for work that involves addressing the day-to-day issues that happen around Alaska. And for shipping businesses, which are required to maintain a vessel response plan, Resolve Marine offers “evergreen” contracts. Duke explains: “We’re named as their responder, and they pay a small fee every year. If there is a response, there is another contract that’s generated for the appropriate response.”

Buddy Custard Alaska Chadux Network

Alaska Chadux Network also uses various agreements with its customers, including longer-term, standing contracts for response vessels. And recently, it established a contract to provide marine mammal cleanup for Seward’s Alaska SeaLife Center. The 104 | May 2021

company also has logistics contracts, which can be critical. “Alaska is so large and remote that most response and cleanup requires extensive logistics expertise,” Custards says. “It’s about getting people to the spot and getting the debris out there.”

At NRC, most of the agreements are ongoing contracts that automatically renew from year to year. This ensures that its customers continuously remain in compliance with US regulations and the requirements cited in their response plan certification statements. “Many of our agreements have a defined term (generally three to five years) and also include an evergreen clause for the continuation of services per annum,” Nielsen says.

NRC uses qualitative and quantitative data for its customer success metrics.

The quantitative metrics include renewal rates, customer retention, churn rate, and customer health scores.

Qualitative metrics relate to evaluating customer satisfaction and client feedback. “This data helps promote a positive customer experience, strategies

and decision-making, operational efficiency, business unit performance, and growth,” Nielsen says.

Resolve Marine uses international statistics that typically relate to the amount of oil recovered. “We look at the number of casualties every year, how much oil was spilled and how much was recovered,” Duke says.

For Alaska Chadux Network, measuring the effectiveness of a cleanup project involves completing visual inspections and inspections to the soil—and not just the soil on the surface. Custard says: “The goal is to return the impacted site to its original form prior to the impact… We work very closely with the state and federal government in assessing whether a site has been cleaned up.”

Marine industrial debris is not just a local or Alaska issue, Custard says.

It requires public- and private-sector agencies working together to address the problem. “I’m optimistic,” he says.

“If we want to resolve it, we have the capacity to do it. We just have to be disciplined to make it happen.”

Alaska Business www.akbizmag.com

INSIDE ALASKA BUSINESS Denali National Park and Preserve Denali National Park and Preserve is implementing an opportunity for private vehicles to access usually restricted portions of Denali Park Road during the 2021 summer season via a reservation system.

This opportunity is in response to ongoing impacts of the COVID-19 pandemic. Continuing daily through September 12, 2021, the public will have access to the Park Road beyond the Savage River Check Station (mile marker 15) to the Teklanika Rest Stop (mile marker 30) using a $25 permit called the Teklanika Road Permit. The Teklanika Road Permit is available for reservations through recreation. gov. This system allows the public to reserve one of a limited number of daily scheduled entries to the Park Road by private vehicle. nps.gov/denali | recreation.gov

3-Tier Alaska | Travis/ Peterson 3-Tier Alaska, a land surveying and civil engineering company, and Travis/Peterson Environmental Consulting have joined forces.

The merger expands and deepens the combined company’s civil, environmental, land surveying, and water system design services across Alaska. 3-Tier Alaska, founded

by Jim Ringstad in the early ’80s, specializes in land surveying and civil engineering for land use projects across Alaska. In 2018, Ringstad’s son, Nick, took over and grew the company from two to twelve fulltime employees. Travis/Peterson, founded in 1998 by Michael Travis and Larry Peterson, specializes in

environmental engineering and consulting. The company has seven full-time employees including professional engineers, biologists, geologists, and environmental scientists, as well as seasonal staff.

3tieralaska.com | tpeci.com

GCI Less than a year after launching Alaska’s first 5G wireless network, GCI completed 5G upgrades to a wireless tower along the Seward Highway, south of Anchorage, improving mobile data speeds and enhancing voice service between Bird Point and 20 Mile River. This is GCI’s 77th 5G-capable wireless site. The upgraded site provides 5G service as well as provides a boost to LTE service in the area.

That means GCI customers don’t need a 5G phone to get the benefits of GCI’s next generation network upgrades. Each 5G-capable site is outfitted with five radios to utilize GCI’s low-band and mid-band radio spectrum, driving improvements in speed and coverage, particularly inbuilding coverage. gci.com

Alaska Airlines | oneworld Alaska Airlines became the 14th member of the global alliance, oneworld, just eight months after receiving a formal invitation in July 2020. “Joining oneworld is joining a family of the best airlines in the world,” says Ben Minicucci, Alaska Airlines’ CEO. “Being a part of the alliance allows us to provide fantastic global connectivity, a seamless travel experience, and more valuable loyalty

offerings for our guests. This alliance transforms Alaska into a truly global airline, connecting our strong West Coast network and destinations across North America with the worldwide reach of our oneworld partners.” For Alaska Airlines and its guests, oneworld provides a global network of flights to as many as 1,000 destinations across more than 170 countries and territories. With its membership in the alliance, Alaska Airlines will add seven new airline partners and enhance its six existing partnerships with oneworld members. alaskair.com | oneworld.com

UAA The College of Business and Public Policy announced the winners of its 2021 Business Plan Competition: Telequana Outdoor Journeys, which recently changed its name to Qizhjeh Vena, took the Grand Prize for its plan to provide Indigenouslyinfluenced ecotourism experiences in the Lake Clark area. Business partners include Kiana Till, a student at Alaska Pacific University; Karen Evanoff, a cultural anthropologist with Lake Clark National Park; and Danielle Stickman. They also tied for the People’s Choice award, garnering the group a grand total of $7,250 in prize money. Aimee Hassell, a UAA student and employee, won second place and tied for People’s Choice with Tiny Haven, her start-up that endeavors to build a community of tiny homes to provide affordable student housing during the school year and accommodations for tourists in the summer months. Her two awards totaled $3,750. business.uaa.alaska.edu

ECONOMIC INDIC ATOR S ANS Crude Oil Production  480,551 barrels  -4% change from previous month

ANS West Coast Crude Oil Prices  $64.73 per barrel  -3.9% change from previous month

Statewide Employment  351,042 Labor Force  6.6% Unemployment

4/1/21 Source: Alaska Department of Natural Resources

4/1/21 Source: Alaska Department of Natural Resources

2/1/21. Adjusted seasonally.

Source: Alaska Department of Labor and Workforce Development

106 | May 2021

Alaska Business www.akbizmag.com

RIGHT MOVES Arctic IT Arctic IT added Ellie Carlo as Senior Technical Support Analyst to its IT technical support team. Originally from Koyukuk, Carlo received Carlo her AAS in information technology and system administration from UAF. She worked for Doyon Utilities (a Doyon, Limited company) for five years before moving to Anchorage.

Coffman Engineers Coffman Engineers expanded its process engineering resources with Clayton Kruger obtaining his professional process Kruger engineering license. A graduate of Montana State University with a degree in chemical engineering and biological engineering, Kruger offers Coffman’s refining/oil and gas clients insight into their operational system performance through hydrocarbon processing modeling, process controls, safety relief and vessel/piping fitness for service, stress analysis, equipment and material selection, vessel design, industrial process, and piping system design for both brownfield and greenfield designs. Kruger has been with Coffman since 2015 and continues to take the company’s industrial mechanical designs to new innovative levels.  Coffman also congratulates Arin (AJ) Wooster on successfully passing the mechanical engineering exam and obtaining his Alaska Wooster Professional Engineering

License. Wooster is a 2020 graduate of UAF with a master’s in petroleum engineering and holds a bachelor’s in mechanical engineering from UAA. He joined Coffman in 2019 and continues to think outside the box while providing mechanical engineering solutions to its industrial clients in Alaska.

Alaska Public Media  Alaska Public Media (AKPM) announced that Dr. E.J.R. David joins Kathleen McCoy as a recurring host on AKPM’s local, weekly radio program David Hometown, Alaska. David was born in the Philippines and grew up in Pasay, Las Pinas, Makati, and Utqiaġvik. He obtained his bachelor’s in psychology from UAA and his master’s and doctoral degrees in clinical-community psychology from the University of Illinois at Urbana-Champaign.

Currently, David lives in Anchorage with his wife and their four children. He serves as a tenured professor of psychology at UAA, with his primary duties being with the PhD program in clinical community psychology that has a rural, cultural, and indigenous emphasis.

Alaska Raceway Park  Michelle Lackey Maynor has been promoted to President and Majority Owner of Alaska Raceway Park. As President, Maynor is responsible for Maynor all aspects of operation for the NHRA and NASCAR sanctioned motorsports facility. In addition to running day-to-day operations, her duties include

facility growth, event management, marketing and promotions, staffing, sponsorships, and community relations.

She has been operations manager of Alaska Raceway Park since 2016 and has worked in many different capacities at the Park since 1997, as well as raced there. Her promotion comes as current owners, Karen and Earl Lackey, transition to advisory roles. In addition to her background in motorsports, Maynor holds a degree in marketing from UAA.

Southern Glazer’s Wine & Spirits  Southern Glazer's Wine & Spirits appointed Christina Reed to Vice President and General Manager of Alaska.

Reed is responsible for leading Reed all sales activities for Alaska, including formulating overall strategy, managing and developing people, and establishing policies for the market. During her career with the Odom Corporation and Southern Glazer’s Wine and Spirits, Reed has held multiple positions of increasing responsibility, beginning as a sales representative in 2005, becoming a district sales manager for the Northwest Division in 2014, and most recently leading the Northwest Division as the general sales manager. Prior to her time at Southern Glazer’s, Reed worked at Alaska Distributors, where she got her start as a courier and worked her way up to positions in merchandising and sales.

R&M Jun Robinson and Joshua Chaney recently

RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO

108 | May 2021

Alaska Business www.akbizmag.com

joined R&M Consultants.  Robinson is a Structural Staff Engineer and has more than fifteen years of experience in civil, structural, and architectural design. He Robinson has worked on a variety of infrastructure projects in the petroleum industry, including plot arrangements, foundations, structural detail and design, architectural design and material takeoffs for North Slope drill pads, modules, and pipelines. He has degrees in architecture and engineering technology as well as civil engineering, both from UAA.  Prior to joining R&M, Chaney, a structural project engineer, was employed in Alaska's oil industry for more than eleven years Chaney where he was involved in engineering programs for Alyeska, BPXA, and ConocoPhillips as an associate and lead engineer. His experience also includes government defense contracting, where he was the onsite field engineer for the AEGIS Missile Defense System.

Chaney’s engineering responsibilities have included engineering calculations, budget estimates, scopes of work, material requisitions, fabrication drawings, field visits, engineering reports, and construction support. He has a degree in civil engineering from UAF and is a civil engineer licensed in Alaska.

GCI GCI announced additions to the company’s leadership team with the promotion of William Wailand to Senior Vice President, Heather Handyside to Chief Communications Officer, Duncan Whitney to Chief Product Officer, Holly Henningsen to Vice President of Consumer Sales and Operations, Manoj Manoharan to Vice

www.akbizmag.com

President of Internet & Business Products, and Tyler Samples to Vice President of Business Finance & Administration.  As Senior VP, Wailand leads strategic negotiations with major customers, vendors, and telecommunication partners inside and outside Wailand the state. He’s also heading cross-departmental company initiatives developing and implementing long term strategies for enhancing GCI’s statewide telecommunications network. Wailand formerly served as GCI’s vice president of corporate development and associate general counsel and has worked for the company for seven years. He brings fifteen years of business and legal experience to his new role.  In her new role, Handyside leads GCI’s Corporate Communications department overseeing internal and external communications, Handyside public relations, and crisis communications. Handyside continues her role as GCI spokesperson and as co-executive sponsor of GCI Gives—the company’s philanthropy program. Before joining GCI in 2015, Handyside worked as emergency manager and deputy municipal manager for the Municipality of Anchorage and as press secretary for US Senator Mark Begich.  As Chief Product Officer, Whitney continues to lead GCI’s product strategy and development functions for both the business and Whitney consumer segments.

Whitney’s expertise will help guide the company through future cutting-edge technology deployments like GCI’s recent launch of 5G service. Whitney, who has lived in Alaska for more than four decades, has been with GCI for twenty-eight years in

Alaska Business

a diverse set of roles including leading the product organization since 2015.  In her new role, Henningsen is responsible for consumer customer service, sales, and operations. She oversees several key customer-facing groups including consumer Henningsen call center and technical support, combined service delivery, consumer debt collections, and quality assurance. Henningsen is responsible for customer service and operations at GCI retail stores statewide. She has been with GCI for more than twenty-five years and has been an active leader in several large company initiatives.  As VP of Internet & Business Products, Manoharan leads product management and development functions focused on GCI business and consumer internet services.

Manoharan Manoharan’s experience includes a diverse set of roles managing and growing products over the last decade within the cable and telecommunications sector. Manoharan has served in several committees in industry organizations such as Metro Ethernet Forum to drive standardization and service specification within the industry.  In his new role, Samples leads the finance team for the GCI business division, which includes financial planning and analysis, billing, Samples and collections. He focuses on making strategic recommendations to the senior vice president of GCI business, advising on long-term business and financial planning, implementing a fully functioning control environment, and providing direction for the team. He brings twelve years of finance, operating, and accounting experience.

May 2021 | 109

ALASKA TRENDS

A

s Alaskans, it can be easy to take our environment for granted.

With endless displays of nature and an abundance of resources in every direction, a short attention span could be forgiven. But like the crisp, clean air we breathe, there’s so much

going on behind the scenes that one might not appreciate (or even consider).

And for those not directly involved in the inner workings of the oiland gas industry, this rings particularly true.

Take an oil rig, for example. We all know what they do, but have you ever

considered how they do it? This analogy also extends to the history of the storied industry itself.

Lucky for those reading May’s installment of Alaska Trends—we’re here to spell it out.

1. Derrick Support structure holding the drilling apparatus; tall enough to allow new sections of drill pipe to be added to the drilling apparatus as drilling progresses.

Major Systems of a Land Drilling Rig

1

2.Blowout Preventer High-pressure valves that seal the high-pressure drill lines and relieve pressure when necessary to prevent a blowout.

3. Turntable The part of the drilling apparatus driving the rotating motion.

4. Diesel Engines The main source of power.

3

5. Electrical Generators

2

Powered by the diesel engines.

6. Casing

4 9

source: https://science.howstuffworks.com/environmental/energy/oil-drilling4.htm

6

A large-diameter concrete pipe lining the drill hole to prevent the hole from collapsing, and allows drilling mud to circulate.

7. Drill String

5 7

Consists of drill pipe (connected sections of about 30 feet) and drill collars (larger diameter, heavier pipe that fits around the drill pipe and places weight on the drill bit.)

8. Drill Bit

10

110 | May 2021

The end of the drill that cuts up the rock. It is specialized for various drilling tasks, materials and rock formations.

8

10. Circulation in the Hole

9. Mud Pit

Drilling mud: mixture of water, clay, weighting material, and chemicals is used to lift rock cuttings from the drill bit to the surface.

Where mud displaced by drilling is mixed and recycled.

Alaska Business www.akbizmag.com

10 years

1976 First federal offshore lease sale held.

1959 The first oil and gas revenues in Alaska total $3M. 1960 The Arctic National Wildlife Range is created by Pres.

Eisenhower. Renamed the Arctic National Wildlife Refuge (ANWR).

1963 Cook Inlet natural gas becomes the major fuel source for SC Alaska.

1964 The first North Slope lease sale.

1977 Earth Resources Co. (later Flint Hills) refinery comes online.

1981 Petroleum revenue reaches $3B.

1969 Liquefied Natural Gas Plant in Nikiski begins exporting to Japan.

This is the only one of its type in North America.

1986 Central Gas Facility (CGF) is constructed in Prudhoe Bay. It is the world’s largest miscible gas recovery project.

1992 Petro Star builds Valdez refinery.

It is the last new refinery in the US.

2002 Ninilchik is discovered.

1994 Alpine oilfield is discovered.

Production begins in 2000.

Alaska has been in the oil and gas business for more than 100 years — and advancing technology for all of them.

Controlled Directional Drilling (1929) Catalytic Cracking (1935) Horizontal Well Drilling (1941) Hydraulic Fracturing (1949) Offshore Drilling (1949) Jack-Up Drilling (1954) Semisubmersible Drilling (1962) Deepwater Mining (1970) Horizontal Drilling Offshore (1982) Rotary Closed Loop Drilling System (1997)

1988 Pt. McIntyre oilfield discovered.

Production begins 1993.

1978 Endicott is discovered. Production begins 1987.

1969 Kuparuk and Milne Point are discovered. Production begins in 1981 and 1985.

1968 Prudhoe Bay is discovered. Production begins in 1977.

1967 Beaver Creek is discovered on the Kenai Peninsula.

1965 Granite Point, McArthur River, Trading Bay are discovered. Production begins in 1967.

1963 Middle Ground Shoal is discovered. Production begins in 1965.

source:https://www.aoga.org/industry-history

1902 Katalla The first commercial production occurs near Katalla, leading to the construction of Alaska first refinery.

1950

1910

1923 The Naval Petroleum Reserve No. 4 is created

by Pres.

Harding.

Setting aside 23M acres for an emergency oil supply for the US Navy.

Renamed the National Petroleum ReserveAlaska (NPR-A).

Timeline folds to maintain scale

1920

1900

1940

Major Milestones in Alaska's Drilling History

1962 Beluga unit is discovered on Kenai Peninsula.

1961 Sterling unit discovered in Cook Inlet.

1959 Kenai oilfield is discovered. Production begins 1961.

1957 Swanson River oifield is discovered. Production begins 1961.

www.akbizmag.com

Alaska Business

May 2021 | 111

AT A GLANCE What book is currently on your nightstand?

[He laughs] No book on the nightstand but there’s a book in the queue—Colin Powell’s My American Journey.

What’s a charity or cause that you’re passionate about?

United Way. What’s the first thing you do when you get home after a long day at work?

I turn off the phone.

What vacation spot is on your bucket list?

Images ©Kerry Tasker

We actually were trying to go to Spain and Portugal last fall and that got postponed, but we’re trying to do that again this fall.

112 | May 2021

Alaska Business www.akbizmag.com

OFF THE CUFF

Mike Colombie F

orty years ago, Mike Colombie packed his bags and went North in search of adventure. And

it didn’t take long to find it—he received his pilot’s license only three years after landing in Alaska.

Colombie started with CONAM as a document control clerk and moved his way on up pretty dang quick, spending time as a field engineer and dabbling in project management. Today, Colombie serves as the construction firm’s president with twenty-five years of experience between CONAM and its sister company Price Gregory.

He still enjoys getting out and experiencing everything Alaska has to offer. And with summer right around the corner, don’t be surprised if you pass him on the trails or spot him in the sky. There is, however, one place you won’t find him: “I will

I just never did it. I did learn to fly when I got to Alaska but never professionally.

AB: What’s your favorite way to exercise?

Colombie: Like I said we do a lot of hiking. I do like biking though. I used to do quite a bit of it when I was younger, and I’d like to get back into it, but hiking is kinda the big one. We got a great trail system here in Anchorage and we get on it three or four days a week.

AB: Dead or alive, who would you like to see perform live in concert?

Colombie: The list is probably about ten or twenty people long. I grew up in the ‘70s, so that’s my favorite era of music.

At the time I wasn’t really appreciative of the Beatles but I think that would probably be the band I would love to see— particularly John Lennon.

AB: What’s your greatest extravagance?

Colombie: My wife and I went to Europe for our 30th anniversary and we flew first class. You have your own little suite and I thought that was pretty much over the top… and I never wanted to get off that plane.

not, and I have never, walked under a ladder. “

Alaska Business: What do you do in your free time?

Mike Colombie: We like to go out and enjoy Alaska. My wife and I live up near Prospect trailhead and during the week we probably hike that every other day in the summer. On the weekends, we have a little airplane so we try to get out and explore the state.

AB: What’s the most daring thing you’ve ever done?

Colombie: That would probably be coming to Alaska forty years ago with no money, no job, and no contacts.

AB: What’s your favorite local restaurant?

Colombie: I like all the older spots, Club Paris. For a quick burger, the Arctic Roadrunner, Lucky Wishbone… we eat out almost every weekend at least once.

AB: Other than your current career, if you were a kid today, what would your dream job be?

Colombie: I wanted to be a commercial pilot. I talked about it a lot when I was a kid, and I knew it was in me to do it, but www.akbizmag.com

AB: What are you superstitious about?

Colombie: Generally, I’m not. But I will not, and I have never, walked under a ladder.

AB: What’s your best attribute and worst attribute?

Colombie: Giving interviews [he laughs]. So the best would probably be that I think there’s always two sides to every story and I give everyone the benefit of the doubt, so I try not to jump to conclusions. My wife will tell you I’m a pretty good procrastinator when it comes to getting things done around the house.

And I can’t disagree with her.

Alaska Business

May 2021 | 113

ADVERTISERS INDEX Afognak Leasing, LLC......................... 35, 51 alutiiq.com

Equipment Source Inc. (ESI)..................... 93 esialaska.com

Resolve Marine Group.............................. 98 resolvemarine.com

Ahtna Inc................................................... 47 ahtna.net

First National Bank Alaska (FNBA).............. 5 fnbalaska.com

Airport Equipment Rentals..................... 115 airportequipmentrentals.com

Foss Maritime............................................ 91 foss.com

Resource Development Council (RDC)........................................... 55 akrdc.org

Alaska Communications............................ 3 acsalaska.com

GCI............................................................ 19 gci.com

Alaska Executive Search........................... 71 akexec.com

Hecla Greens Creek Mining Company.................................................. 83 hecla-mining.com

Alaska Oil & Gas Association.................... 73 aoga.org Alaska PTAC............................................ 101 ptacalaska.org Alaska Railroad.......................................... 91 alaskarailroad.com Alaska USA Federal Credit Union............. 95 alaskausa.org Altman Rogers & Co................................. 33 altrogco.com Arctic Information Technology................ 17 arcticit.com Arctic Slope Telephone Association......... 39 astac.net AT&T.......................................................... 31 att.com Bristol Bay Native Corporation................. 29 bbnc.net Carlile Transportation Systems................ 75 carlile.biz Central Environmental Inc....................... 99 cei-alaska.com Color Art Printing Inc................................ 43 colorartprinting.com Conrad-Houston Insurance Agency...................................................... 37 chialaska.com Construction Machinery Industrial (CMI)........................................... 2 cmiak.com

Sealaska Corp........................................... 25 sealaska.com Smith Co Side-Dump Trailers.................. 53 sidedump.com

JAG Alaska Inc. / Seward Shipyard........... 89 jagalaska.com

Span Alaska Transportation LLC............... 14 spanalaska.com

JENNMAR................................................. 85 jennmar.com

TorcSill Foundations................................. 65 torcsill.com

Lynden Inc.............................................. 116 lynden.com

Tutka LLC.................................................. 56 tutkallc.com

Material Flow & Conveyor Systems, Inc.............................................. 81 materialflow.com

UA Local 375 Plumbers & Pipefitters.................................................. 59 ualocal375.org

MT Housing Inc........................................ 49 mthousing.net

Udelhoven Oilfield System Services Inc............................................... 50 udelhoven.com

MTA............................................................11 mtasolutions.com NANA Regional Corp................................ 23 nana.com Nenana Heating Services Inc................... 33 nenanaheatingservices.net New Horizons Telecom, Inc..................... 15 nhtiusa.com Nortech Engineering.............................. 103 nortecheng.com Northern Air Cargo.........................108, 109 nac.aero Northrim Bank.............................................7 northrim.com Oil Search.................................................. 73 www.oilsearch.com Oxford Assaying & Refining Inc................ 83 oxfordmetal.com

Cruz Companies....................................... 69 cruzconstruct.com

Pacific Pile & Marine............................... 107 pacificpile.com

Delta Constructors................................... 45 deltaconstructors.net

Parker Smith & Feek.................................. 63 psfinc.com

Donlin Gold.............................................. 68 donlingold.com

PDC Inc. Engineers................................. 101 pdceng.com

Dorsey & Whitney LLP.............................. 67 dorsey.com

PND Engineers Inc.................................... 61 pndengineers.com

Doyon Limited.......................................... 27 doyon.com

Ravn Alaska............................................... 13 ravnalaska.com

114 | May 2021

Schwabe Williamson & Wyatt................... 77 schwabe.com/locations-anchorage-alaska

United Way of Anchorage.......................... 9 liveunitedanchorage.org US Ecology................................................ 97 usecology.com Usibelli Coal Mine..................................... 80 usibelli.com Valdez Convention & Visitors Bureau...... 88 valdezalaska.org Valley General Energy Services LLC......... 57 vgesllc.com Voice of the Arctic Inupiat........................ 41 voiceofthearcticinupiat.org Westmark Hotels - HAP Alaska.............. 105 westmarkhotels.com Wilson Albers............................................ 21 www.thewilsonagency.com Yukon Equipment Inc............................... 79 yukoneq.com

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