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SPECIAL SECTIONS: ENGINEERING & INTERNATIONAL TRADE ■ FUR RONDY ■ FRONTIER BASINS EXPLORATION

February 2013

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Commercial Industrial Charters Trucking steel from Valdez to Salcha


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Februar y 2013 TA BLE OF CONTENTS dePArtments

About the coVer

From the Editor. . . . . . . . . . . . . . . . . . . . .7 Inside Alaska Business . . . . . . . . . . . . .8 Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Right Moves . . . . . . . . . . . . . . . . . . . . . .70 Alaska This Month. . . . . . . . . . . . . . 104 Events Calendar . . . . . . . . . . . . . . . . 107 Market Squares. . . . . . . . . . . . . . . . . 110 Alaska Trends. . . . . . . . . . . . . . . . . . . 111 Ad Index . . . . . . . . . . . . . . . . . . . . . . . . 114

Fifty-six of the 80 steel I-beams for the Alaska Railroad Tanana River Bridge crossing at Salcha arrived at the Port of Valdez in November 2012. The girders are being transported to the project site by Carlile Transportation Systems over the course of several months (story begins on page 60). Cover photo courtesy of Carlile Transportation Systems.

Articles

VIEW FROM THE TOP

OIL & GAS

© 2013 Chris Arend

50 | Winter Drilling in Alaska Almost shuttered by high state taxes and the feds By Mike Bradner

Kelly Dyer, President Spice Ratchet Mills LLC

12 | Kelly Dyer, President Spice Ratchet Mills LLC Compiled by Mari Gallion

FISHERIES

36 | Bering Sea Bounty Commercial fishing exports shore up Dutch Harbor, Akutan economies By Zaz Hollander

54 | 2012 Oil and Gas Lease Sale Results

74 | Pebble’s Environmental Team Understanding the Partnership’s efforts By Paula Cottrell

TRANSPORTATION

60 | Commercial Industrial Charters Trucking steel from Valdez to Salcha By Susan Harrington

66 | Winter Construction in Fairbanks Working with the weather presents challenges By Julie Stricker

72 | Self-Insured Health Benefit Plans A new benefits solution shows promise for cutting costs and making employees happy By Mari Gallion

MINING ENVIRONMENTAL SERVICES

56 | Alaska OCS Progress Achieving objectives in the Arctic By Mike Bradner

CONSTRUCTION

INSURANCE ESSENTIALS

MINING ENERGY

76 | Power to the Mine What it takes to keep the lights on and the cogs moving in remote operations By Rindi White

MINING

82 | Economic Impact of Mining A message from Deantha Crockett

FISHERIES

43 Photo courtesy of GCI Industrial Telecom

42 | Plight of the Albatross Improves Cheering an Alaska fishing fleet in the Bering Sea By Wesley Loy

TELECOM & TECHNOLOGY

43 | Safety and Service at GCI Industrial Telecom Top priorities at pay off By Ed Archer

OIL & GAS

46 | Doyon Limited Pioneers Frontier Basins Middle Earth pushes oil and gas exploratin in Alaska’s quiet corner By Zaz Hollander

■ 4

A 180-foot-tall communication tower install at Pioneer’s 3H pad on the North Slope.

www.akbizmag.com • Alaska Business Monthly • February 2013


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Februar y 2013 TA BLE OF CONTENTS Articles

special section

FINANCIAL SERVICES

World Trade

85 | IRS Provides Updated Withholding Guidance for 2013

14 | Q & A with Greg Wolf 18 | Letter from Rick Pollock

VISITOR INDUSTRY

108 | Fur Rondy More than just fun and games By Susan Sommer

The best Alaskan artists showcase their work at Fur Rondy. Photo by Clark James Mishler, courtesy of Greater Anchorage Inc.

108 20 | Southeast Asia New Markets—New Customers Why ASEAN, why now? By Alex Salov

special section Engineering

Photo courtesy of Kevin G. Smith Photography

92

The zinc wall behind a NANA Regional Corporation Inc. 909 W. Ninth Ave. office building reception area in Anchorage reflects three different stitching patterns commonly used to trim parkas in Western Alaska.

86 | Engineer’s Week 2013 88 | 2013 Engineer of the Year Nominees Compiled by Mikal Hendee

92 | Building Innovations in Alaska Reaching ultimate efficiency By Rindi White

99 | 2013 Architects & Engineers Directory

corrections Cover credits were omitted from the January 2013 issue, page 4. Cover photo: © Chris Arend Photography ■ 6

24 | Trade Missions Gathering here or there to make things happen By Greg Wolf 26 | Trans-Pacific Partnership New trade agreement would dwarf NAFTA By Aaron Weddle 28 | All the Right Stuff Four ways Alaska is primed for export success By Greg Wolf 30 | Alaska’s North Slope and LNG North America’s energy bridge to Asia By Sourabh Gupta and Ashok Roy 33 | Arctic Ambitions II Conference 34 | New Realistic Russian Opportunities Promoting business with Alaska Companies By Alex Salov and Aaron Weddle 35 | Export Partners & Commodities

www.akbizmag.com • Alaska Business Monthly • February 2013


FROM THE EDITOR Follow us on and

Volume 29, Number 2 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF

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

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

BUSINESS STAFF

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

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

501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com Advertising email: materials@akbizmag.com Pacific Northwest Advertising Sales 1-800-770-4373 ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2012, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specific permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www. thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

Disaster Deadlines T

he clock is ticking to apply for low-interest federal disaster loans for physical and economic damages suffered due to certain storms occurring last fall. This economic assistance from the U.S. Small Business Administration is available for individuals and businesses to repair or replace property damaged by high winds and flooding across much of Alaska Sept. 15-30, 2012, and to seek help due to economic injury suffered as a result of the storms. After Gov. Sean Parnell declared the disaster, and amended it when the storms and damages continued, the current administration failed to do the same. However, on Dec. 18, 2012, Alaskans got some relief when the Sacramento office of the SBA issued the following statement: “The SBA acted under its own authority to declare a disaster following the denial on Dec. 6 of the state’s request for a major disaster declaration.” SBA Alaska Disaster Declarations No. 13423 (physical damage) and No. 13424 (economic damage) cover the Kenai Peninsula Borough, the Matanuska-Susitna Borough, and the contiguous Alaska jurisdictions of Chugach REAA, Copper River REAA, Delta/Greely REAA, the Denali Borough, Iditarod Area REAA, Kodiak Island Borough, Lake and Peninsula Borough, and the Municipality of Anchorage. Businesses and individuals in these areas have until Feb. 18 to apply for loans to mitigate physical damage, and until Sept. 18 to apply for loans to assist with economic injury. Businesses may apply for up to $2 million in loans. To apply, go online to SBA’s secure website and submit an electronic loan application at https://disasterloan.sba.gov/ela. Alternately, request information and forms by calling 800-659-2955 (800-877-8339 if deaf or hard of hearing), email disastercustomerservice@sba.gov or visit http://www.sba.gov/services/ disasterassistance. Speaking of deadlines, the Alaska Legislature will have gaveled in by the time this issue rolls off the presses—and our legislators have a lot of work to do before the session ends. It will be interesting to see how things progress this year. Let’s hope it doesn’t mirror the movie “Groundhog Day” again. We’ve put together a host of stories to read. Included topics are: fisheries, telecom, oil and gas, transportation, construction, insurance, mining, energy and the visitor industry. In addition to a slate of great articles exploring so many sectors of our economy and spanning the state geographically, we’re bringing you two special sections this month: Engineering and World Trade. We’d like to thank our friends at World Trade Center Alaska for showing us how important export trade is to Alaska’s economy—thank you Greg, Alex and Aaron! The team put together another really great magazine this month—enjoy! —Susan Harrington, Managing Editor

www.akbizmag.com • Alaska Business Monthly • February 2013

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INSIDE ALASKA BUSINESS

Municipal Light & Power

M

unicipal Light & Power has filed a request for rate relief with the Regulatory Commission of Alaska based on revenue requirement and cost of service studies using a 2011 test year. The studies show that a 9.72 percent rate increase to ML&P’s energy and demand charges is required to permanently finance investments the utility has made to its transmission and distribution system and should be applied on an across-the-board basis to all customers. Because the rate increase is applied only to the demand and energy charges, the overall increase to the typical consumer’s total monthly bill will be between 6 and 7 percent. If the rate increase is fully implemented, ML&P’s net income will increase by $6.9 million. ML&P proposes to implement the permanent increase over 15 months in two steps. If approved by the RCA, the 2012 permanent rate increase will raise the average residential bill a total of $3.84 per month from today’s rates. ML&P has asked for 80 percent of the permanent rate increase to be effective on an interim and refundable basis within 45 days of the filing. ML&P’s six-year Capital Improvement Program calls for the utility to spend $459 million through 2017 in new generation, the Beluga River Unit Gas Field, distribution system improvements and other capital projects.

R

ALPAR

esidents can now drop off glass for recycling at the Anchorage Recycling Center—welcome news for recy-

Compiled by Mari Gallion

clers who have been clamoring for glass recycling since the program was curtailed in 2009. The new glass drop off program is a partnership of Alaskans for Litter Prevention and Recycling, MOA Solid Waste Services, RockTenn Recycling and Central Recycling Services. SWS has purchased recycling containers for the drop off site from funds received through the recycling surcharge on trash tipping fees. ALPAR will oversee the collection program and share the cost of hauling the material with SWS. RockTenn, the company that operates the Anchorage Recycling Center, is providing the collection site at its drop-off center, and CRS is accepting the materials for processing and use in various end products with hauling provided by Alaska Waste. CRS will process the glass into glass aggregate for use in local construction projects. CRS operates a state-of-theart construction and demolition debris recycling facility manufacturing a variety of products for the construction industry and diverting a large volume of usable material from the landfill. All colors of glass bottles and jars are accepted. The Anchorage Recycling Center will be the only location for glass recycling at this time and recyclers should note that glass is not accepted in the curbside recycling programs.

C

Calista Corp.

alista Corp. has announced its newest subsidiary company, E3Environmental LLC. E3-Environmental was established to meet energy, engineering and environmental needs and serve clients throughout Alaska and elsewhere.

The Alaskan environmental consulting company will provide professional services for the region and for the state, including project planning and regulatory analysis, environmental permitting and impact assessments, stakeholder engagement, agency coordination and consultation, and regulatory compliance management and audits.

T

SIKU Construction

he U.S. Fish & Wildlife Service and UIC Construction Services have announced that one of its subsidiaries, SIKU Construction, won a $6.1 million contract for design and construction of a new visitor center for the Kenai Wildlife Refuge in Soldotna. The new facility will be located next to the current facility and is to be complete by 2014. SIKU teamed with CTA Architects Engineers, who are leaders in visitor center design, and SIKU sister company Kautaq Construction Services for construction management. Joining the team as well is Umiaq, which is doing the civil design to create the unique building and visitor experience. The new visitor center will be located within the nearly 2-million-acre Kenai National Wildlife Refuge, which is the most visited refuge in Alaska. The center will include an exhibit hall, multi-purpose rooms, book store, restrooms and office spaces.

P

Parker Drilling Co.

arker Drilling Co. has commenced drilling operations with Rig 273, the first of two Arctic Alaska Drilling Unit rigs the company has developed to safely and efficiently perform in en-

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

www.pacificpile.com I (907) 276-3878 276-3873 ■ 8

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

www.akbizmag.com • Alaska Business Monthly • February 2013


INSIDE ALASKA BUSINESS vironmentally sensitive, harsh arctic environments. Rig 273 initiated operations earlier this week under the terms of the company’s five-year contract with BP. The company’s second AADU, Rig 272, remains on schedule for acceptance testing in 2013. Parker’s rig fleet includes 22 land rigs and two offshore barge rigs in international locations, 13 barge rigs in the U.S. Gulf of Mexico, one land rig located in the U.S., and two land rigs in Alaska, one of which is undergoing commissioning. The company’s rental tools business supplies premium equipment to operators on land and offshore in the U.S. and select international markets.

Valley Community for Recycling Solutions

V

alley Community for Recycling Solutions installed the newest piece of its renewable energy system, a Kestrel e300i wind generator. The Kestrel now adds to the power being produced by a 4.23kW solar panel array which was installed in May 2011. While supplying a portion of their own power, VCRS is also uploading the data from these energy systems and making it available to the public for free on the Internet. In October, VRCS installed an anemometer to measure wind speed along with the software and hookups to feed live data from the solar panels, wind turbine, and anemometer to a publicly accessible website on the Internet. The real time data allows comparison of solar to wind energy generation for consumers to explore their options as well as providing valuable information for research and

Compiled by Mari Gallion

development of latitude and longitude appropriate systems. The data is accessible to the public through the VRCS website. The renewable energy sources reduce the carbon footprint of VCRS and ultimately their electrical bills. Any additional power generated and not used by VCRS is fed back into the local MEA utility grid. In the future, VCRS envisions having a bank of batteries installed which will store enough energy to provide an additional emergency shelter for the Mat-Su. VCRS partnered with Wal-Mart, which provided the majority of funding, and with Renewable Energy Systems and Ahtna Engineering Services for technical expertise to make this cutting edge renewable energy project possible.

A

Business Insurance Associates

fter 15 years of operations in a midtown Anchorage location, Business Insurance Associates Inc. has moved its main office to 9138 Arlon St., Suite A-1, off Abbott Road in Southeast Anchorage. The move became necessary to accommodate growth in recent years and will better position the firm to meet the opportunities and challenges in the years ahead. Business Insurance Associates Inc. is an independent, Alaskan-owned commercial insurance, risk management and surety brokerage founded in 1995. While partnering with a diverse base of clientele, the firm retains specialized expertise in construction, design professionals, nonprofit associations, commercial property, transportation, energy, assisted living and the medical industry.

T

SEARHC

he SouthEast Alaska Regional Health Consortium opened a new SEARHC Prince of Wales Island Eye Care Clinic in Klawock. The new clinic space is located in the Klawock Mall (6488 Klawock-Hollis Hwy., Space 4), between the credit union and the post office. SEARHC optometrist Annelle Maygren, OD, has been working out of the Alicia Roberts Medical Center since last summer, and the new location will allow her to offer a full range of eye-care services. Two new optometry assistants have been hired to help Maygren in the clinic. The two assistants are being trained to help with eyeglass frame fitting, a service the POW optometry clinic hasn’t been able to offer in the past unless someone from the Sitka optometry clinic was in town. The new clinic will allow SEARHC to offer dearly needed full-time comprehensive eye care to Prince of Wales patients.

A

kpb architects

staple in the Alaska architecture and design community for 31 years, Anchorage-based kpb architects now has a new leadership team in design and architecture veterans Jeff Koonce and Michael Prozeralik. Koonce and Prozeralik, who both served on kpb’s previous leadership team, recently purchased the company from their colleagues. Koonce is a founding partner of kpb architects, and Prozeralik has been with the company since 1999. Together, they have nearly five decades of experience in the industry. While

Your Project, Our Responsibility. 24/7 Service

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

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

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

www.akbizmag.com • Alaska Business Monthly • February 2013

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INSIDE ALASKA BUSINESS the firm plans to continue its work on large-scale, start-to-finish construction projects, the new leadership team hopes to expand their portfolio to represent the full gamut of architecture and design work, including more remodeling and restructuring projects of small and large scale. The company brings all elements of design under one umbrella, providing client-centered guidance through planning and programming services, architecture, interior design and landscape architecture.

C

Central Environmental Inc.

entral Environmental Inc. has made a $46,500 in kind donation in the form of asbestos abatement services to the Engine No. 557 Restoration Co., an Alaskan nonprofit corporation established to restore to operating condition one of the Alaska Railroads former steam locomotives. To facilitate the safe restoration of the steam locomotive, CEI’s professional abatement workers spent more than a week on this project. CEI removed the boiler insulation, pipe wraps and other miscellaneous asbestos containing materials. With the asbestos removed and the engine cleaned, the hard working volunteers can resume restoration work. Before the Parks Highway or Seward Highway existed, Locomotive #557 and others like it served the state transporting goods and people between the Ports of Seward, Whittier and Anchorage and the interior of Alaska. Engine No. 557 was built for the U.S. Army Transportation Corps and arrived in Alaska in December 1944. It was retired in June

Compiled by Mari Gallion

1963 and sold to a scrap dealer in Washington State in 1964.

Arctic Information Technology Inc. Doyon, Limited announces the acquisition of Arctic Information Technology Inc., an industry leader in providing information technology infrastructure and business solutions. Arctic IT is a Microsoft Gold Certified Partner and is the recipient of numerous industry awards. Arctic IT’s portfolio of services includes implementation and support of enterprise resource planning and customer relationship management solutions, networking, infrastructure services and managed services. The acquisition of Arctic IT, based in Anchorage, Alaska, aligns with Doyon’s strategy to diversify into technologybased companies. The combination of Arctic IT’s knowledge, experience and partner resources with Doyon’s expertise in government contracting creates the potential for growth. Arctic IT will continue to operate under the same name as a wholly owned indirect-subsidiary of Doyon, Limited. Arctic IT will operate under the company’s government contracting pillar, Doyon Government Group.

P

Silver Gulch

assengers can now take Alaskamade microbrew to share with friends and family in the Lower 48. Silver Gulch, a brewery and retail outlet in Fox, has opened at Ted Stevens Anchorage International Airport.

Located inside security in the South Terminal at the entrance to the C Concourse, the outlet allows customers to purchase growlers or six packs of beer to go, as well as offering dine-in pizza and beer. Owned and operated by Glenn Brady, the project has been in the works for about a year. The restaurant offers a dining option post-security, and also allows passengers to take Alaska with them by offering packaged beer and other retail items to share once they’ve reached their destination.

A

Hatcher Pass

30-year-old dream has been made tangible with the opening of a designed ski area at Hatcher Pass, the beginning step for a network of Olympic class trails that may one day draw international ski events such as The World Cup. The new cross-country ski trails were designed by former Olympian Bill Spencer, and are one feature of what’s called “The Government Peak Recreation Area at Hatcher Pass.” The 3.5 miles of trails that cross over 13 bridges will also be used in summer for jogging and biking. In winter, snowshoeing and skijoring on one loop with a dog is also possible. On the east side of Government Peak, a downhill ski area is a future part of the plan. Additionally, on some 700 acres of the 7,860acre unit, residential and commercial development is planned. The land sales will help fund more phases of the recreational development and will create homes with a view and trails at the front door, while adding to the Matanuksa-Susitna Borough’s tax base. R

• General Contracting • Marine Infrastructure • Design Build

Dutch Harbor - Unalaska, Alaska

www.pacificpile.com I (907) 276-3873 ■ 10

620B East Whitney Road I Anchorage, AK 99501

www.akbizmag.com • Alaska Business Monthly • February 2013


View from the Top

Compiled by Mari Gallion

Kelly Dyer, President Spice Ratchet Mills LLC

B

orn in Taiwan, Kelly Dyer had moved around the world several times—from Asia, to Europe, to other parts of America—before coming to Alaska in 2001. After a two-year stint in Texas in 2006, Dyer found herself yearning for Alaska and decided to return, establishing her permanent home in the 49th state. Dyer has lived in Alaska for a grand total of nine years. As a stay-at-home mom with various administrative and logistics related jobs, Dyer was always paying attention to things that could make life easier and fun for busy homemakers like herself. Through a combination of experience, innovation and connections, Spice Ratchet Mills was born. © 2013 Chris Arend

INITIAL INSPIRATION: When I first started Spice Ratchet, I worked with a Danish designer to promote his upright nomess spice mill design. Back in 2007, there were very few mills on the American market equipped with ratcheting ceramic mechanisms capable of producing a large amount of ground spices or peppercorns. Spice mills are quite popular items in Europe. However, we learned that what may work in European markets doesn’t necessarily work in America. People were interested by the idea of a different mill—but not enough to make a purchase. There were many “classic” style mills already on the market that people were happy with, and the market was saturated with established vendors providing those classic models. RATCHET UP A NOTCH: From that lack of success, we decided we needed to redefine our focus. Our products need to match the lifestyle and culture of the American market and serve more than one purpose. So then came our next product, Blossom Trivet, which won the Best Innovation Award in the Tabletop category at the International Home and Housewares Show. WORK GLOBALLY: All of our products are made in either mainland China or Taiwan. There is a stigma against products made in China based on “quality” perceptions. However, I’m fortunate to have two brothers in the manufacturing business in both Taiwan and China, so I’m able to have a very close relationship with the quality control and production side of things.

■ 12

QUALITY IS KEY: With family and friends in the region it’s easier to find trustworthy and reliable producers. I pride myself in our ability to create quality products. I take an active role in the quality assurance process from raw materials to finished products, and fly to China and Taiwan several times each year to check-in on everything personally. TEAM EFFORT: I’ve been working with several creative freelancers from Anchorage. Those creative local individuals have been helping Spice Ratchet in graphic design, photography, copy writing, web design and public relations. Also, the Anchorage Small Business Development Center has been quite supportive with information and training. RECIPE FOR SUCCESS: I have been very fortunate to have a number of inspiring people in my career. Without the team at Harold Imports led by Robert Laub, we would have never reached the level of success we’ve reached so quickly. Without my brother ensuring product quality, we would have never accomplished the multiple innovative designs and product launches we’ve achieved. Without my daughter, Josephine Dyer—figuring out all the different ways to use Blossom Trivet and filming demonstration videos that spark boundless creativity for our users—this new multiple usage concept for our trivet would have taken a lot longer to introduce to the U.S. market. R

www.akbizmag.com • Alaska Business Monthly • February 2013


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special section

World Trade

Q & A with Greg Wolf

Q:

© 2013 Chris Arend

Starting with the big picture, why is international trade important to Alaska and what kind of impact does it have on the economy?

A:

When we talk about international trade for Alaska we are almost always referring to exports. In other words, Alaska commodities, goods and services sold to customers in overseas markets. Alaska’s exports now hover close to $5 billion on an annual basis, having reached a record high of $5.2 billion in 2011. Export revenues represent new money coming into our economy, creating much needed diversification and sustaining thousands of jobs. A few years ago, we commissioned Northern Economics, a leading Anchorage-based consulting firm, to measure the impact that trade has on the Alaska economy. What they found is impressive: in addition to the export revenues themselves, that now are in the $5 billion range, another $2 billion is generated by these export activities. At these levels, exports represent about 10 percent of Alaska’s Gross State Product, a measure used to gauge the size of a state’s economy, and based on exports as a percentage of GSP, Alaska ranks 14th among all states. If you consider exports in relation to the size of our population, Alaska is fourth in the country. Relatively speaking, trade is more important to Alaskans than it is to people living in other states. Here, there is a very good chance that your paycheck, or your neighbor’s, results from trade.

Q:

You mentioned jobs. How many Alaska jobs are supported by international trade?

A:

In the study conducted by Northern Economics, one of the things they looked at, of course, is the number of jobs that are created or sustained as a result of export operations. They determined that there are about 15,000 jobs, statewide, that flow directly from export

■ 14

Greg Wolf

activities. In addition, there are another 10,000 indirect or induced jobs generated by exports. Taken together, then, trade accounts for about 25,000 jobs in Alaska. I think that is significant. It should also be noted that jobs tied to exports pay more than jobs connected solely to the domestic economy. The U.S. Census Bureau did a study about this several years ago and reported that export-related jobs typically pay about 15 to 17 percent more versus jobs found elsewhere in the economy. One doesn’t have to look around too much in Alaska to find ample evidence of this finding. Indeed, some of the highest paying jobs in the state are tied to trade.

Q: A:

Why is the export business important to Alaska and Alaskans?

Well, we would certainly have a much smaller economic base and fewer high paying jobs. Without question, some of the biggest players in our economy would not be active in Alaska were it not for the existence of significant export markets for their production. We must remember that Alaska itself is a very small market. With a population of some 730,000 it could be, literally, a

suburb of many major cities around the world. In order to attract resource industries to Alaska, exports markets are a necessity. For example, so far the only natural gas to leave Alaska has been the LNG exports to Japan. The only coal to leave the state has been overseas to customers in markets like Korea and Chile. Almost all of the minerals and precious metals are destined for overseas customers and about 50 percent of Alaska’s annual seafood catch is sold to buyers overseas. Thus, export markets are very important to Alaska. In many cases, the most viable and attractive markets for Alaska are overseas, primarily in Asia. In a typical year, around 70 percent of the state’s exports are destined for Asian markets. There are several reasons for this concentration: first, many nations in the region are resourcepoor while Alaska is resource-rich; second, Alaska is a neighbor in the Pacific Rim and there are well-established shipping routes by sea and air; third, and often overlooked, is the political stability that Alaska offers as part of the United States. This is important—indeed, a comfort—to countries that rely upon imports for such critical resources as energy, minerals and food. Of course, Canada is long-standing major customer of Alaska exports and several European countries, including Germany, Spain and Switzerland are also important trading partners. However, it is the large Asian markets that dominate the state’s export picture.

Q: A:

Where is Alaska’s biggest export market?

The headline story for Alaska’s international trade economy has certainly been the dramatic growth of China as an export market. In what I’ve described as the “Dragon Decade,” during the past 10 years Alaska’s exports to the Middle Kingdom have soared from $102 million to $1.4 billion. That’s more than a 10-fold increase in just a decade. Alaska

www.akbizmag.com • Alaska Business Monthly • February 2013


When Shell Oil needed ice-class oil spill response barges to work in some of the world’s most extreme working environments – the Beaufort and Chukchi Seas – they called Crowley. Our management team engineered, constructed and outfitted the three barges that will support this important off-shore operation. Shell Project: On time. On budget. Turnkey. You can count on Crowley.


has never had a major trade market grow so significantly and in such a short period of time. It’s really unprecedented. In 2011, China became Alaska’s largest export market, a distinction held for many decades by Japan, and was again in 2012. China buys a variety of Alaska exports, led by seafood, but also including minerals, forest products, precious metals and fish meal. There are, of course, concerns about the Chinese economy and its ability to sustain what has often been double-digit annual growth during the past several decades. Frankly, I believe these concerns are somewhat overblown and, coming from some critics, may be more wishful thinking than economic reality. While the Chinese economic juggernaut may experience slowdowns or stall from time to time, it is likely to enjoy high single-digit growth for decades to come. That’s good news for Alaska since they need and are active buyers of the natural resources and seafood Alaska has in abundance.

Q:

Can you give our readers an idea of the number and size of businesses exporting from Alaska to the world market?

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A:

According to the most recent information available from the U.S. Department of Commerce, there are approximately 300 companies that export from Alaska and, of these, 75 percent are considered to be small or mediumsized businesses. That being said, clearly it is the very large companies, some of them multinationals, which produce the lion’s share of exports. These large firms generate about 80 percent of Alaska’s export volume.

Q: A:

Do opportunities exist for expanded exports from Alaska?

Absolutely. While it is sometimes easy to be pessimistic about our prospects in the short-term, I am really quite optimistic about our long-term future. Five billion dollars annually in exports is significant, but in many ways it is only scratching the surface of what is possible, if Alaska is allowed to responsibly develop our vast natural resources. If we can muster the will and the approvals to move some of the major projects that are currently on the drawing boards to actual construction and, ultimately, to

the production phase, we’ll look back at $5 billion as being a small number. When you consider: we haven’t even begun to export any of our North Slope natural gas, for which there are large and growing markets overseas; while Alaska possesses as much as 20 percent of the world’s coal resources, today we have only one active mine; our mineral (such as zinc and lead) and precious metal (like gold and silver) deposits are among the top 10 in the world and opportunities to develop new mines and expand existing ones are multifold; and, we are just learning how much of the so-called rare earth elements, those metals critical for modern technologies, that Alaska may discover under its feet. These are just several examples of very real opportunities that can fuel our economic growth and provide gainful employment for current and future generations.

Q:

What does the World Trade Center Alaska do to help Alaska businesses and promote international trade?

A:

The Center works directly with Alaska companies to identify and pursue overseas business opportunities. Mainly, our work is with small and medium-sized companies that often do not have the experience or manpower to research the various markets and find customers or partners to do business with. That’s where we come in: We become their extended staff, if you will, and do a lot of the leg work for them. Some of these companies are “new to export,” meaning that they will be selling to overseas customers for the first time. Others will have some overseas customers, say in Japan, but are now looking to expand their sales to China, for example. In this case, they fall into the category of “new to market.” We also, of course, have members who are not directly involved with exports but who provide important services to those companies that are exporting. Examples would include freight forwarders, customs brokers, law firms, banks and transportation companies. We normally work with companies that are export ready, meaning they already have a product or service to export and can adequately respond to customer orders. In addition to our one-on-one work with individual firms, we organize and conduct trade missions, conferences,

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seminars and other international business events that are attended by thousands of Alaskans each year. Through these efforts we are able to provide Alaskans with up-to-date information and analysis about business opportunities, and inform potential customers overseas about Alaska’s export capabilities. We are also fortunate to have strong, long-standing partnerships with the State of Alaska, the U.S. Department of Commerce, and the University of Alaska that enable us to carry out our mission.

Q:

What global trends are working in Alaska’s favor? What new markets should Alaska businesses be paying attention to?

tently growing at high single-digit rates, and the growing middle class has higher consumer expectations. As they continue to grow and modernize, this could represent the next big opportunity for Alaska. Some of our work to get to know this market better and for India to know Alaska better, has been the Alaska-India Business Conference we conducted in Anchorage in 2006 and a trade mission of private and public sector executives to New Delhi in 2010.

Q:

What’s the bottom line on the export business in Alaska?

A:

I’ve been in this business for 25 years and this allows me some perspective. In many ways, there are now more things working in our favor than not. I’m not suggesting that progress will be easy nor without those who oppose any progress at all! But, many of the stars are aligned for Alaska to move forward. It will take focus, determination and a lot of work. We have so much of what the world needs. This can be Alaska’s season in the sun. R Greg Wolf is the Executive Director for World Trade Center Alaska.

A:

I believe that Alaska has and will benefit from three global megatrends that I refer to as “The Three Rights.” Our geographic position on the Pacific Rim puts us close to the fastest growing economies in the world. It is also home to some of the largest and fastest growing populations. This proximity to growth puts Alaska in the “Right Place.” We are living in a time when people in these emerging markets are moving up the economic ladder and, in record numbers, are both migrating from the rural areas to the cities and becoming consumers, really for the first time. This puts us at the “Right Time” in history to take advantage of the opportunities flowing from this rising tide of new wealth. As an exporter of natural resources, we have the “Right Commodities” to respond to the needs of this economic growth and modernization occurring in Asia and other parts of the world. We always keep an eye out for new market opportunities for Alaska. One part of this approach is to go where the growth is. We look for markets that are on a long-term upswing, have import needs that match up with Alaska’s export capabilities, and where Alaska companies can successfully compete. We are currently researching the Southeast Asia region and a couple of nearby markets that could hold significant potential for us, including India. At present, Alaska does very little trade with India, but the country, much like China, is on a rapid growth trajectory. Like China, India also has more than 1 billion people. Their economy is consis-

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AMBASSADOR CIRCLE AWARD

special section

1997 - John McClellan 1998 - Brian Brundin 1999 - Pete Nelson 2000 - Ben Barerra 2002 - Dennis Bird 2006 - Joseph Henri

World Trade

AMBASSADOR CIRCLE AWARD

1997 - John McClellan 1998 - Brian Brundin 1999 - Pete Nelson 2000 - Ben Barerra 2002 - Dennis Bird 2006 - Joseph Henri

Dear Alaskan Executive: I am proud to serve as the chairman of World Trade Center Alaska board of directors during 2013, the organization’s 26th year. It’s an exciting time to be involved with the Center. Alaska’s international trade economy continues to grow and the state’s exports are hovering in the $5 billion range. These export activities support thousands of high-paying jobs, generate significant investments in our natural resource industries, and help to diversify the state’s economic base.

Over the years, we have helped introduce Alaskans to new markets, such the Russian Far East and, more recently, to China—Alaska’s fastest growing, and now largest, trading partner. With an eye toward the future, the Center has recently made initial forays into high-potential new markets for Alaska, including India and Singapore, among others.

© 2013 Chris Arend

Since it was founded, WTCAK has worked with its members and community partners to explore and pursue international trade opportunities. On a daily basis, we are involved with companies from across the state, small and large, that share an interest in building their businesses by exporting products or services to customers overseas. In addition, companies that provide services to the exporting community, such as banks, freight forwarders, law firms and customs brokers, also benefit from Trade Center membership.

Rick Pollock

To carry out our mission of assisting Alaskans to succeed in the global marketplace, WTCAK has fostered a skilled staff and important partnerships. Led by Greg Wolf, our long-time executive director, the hard-working staff at WTCAK has years of international experience, passion and a strong commitment to serve our membership at a very high level. We have also forged strategic partnerships with the State of Alaska, the U.S. Department of Commerce, and the University of Alaska. In a unique and effective way, these relationships bring together the resources of the private and public sectors to bring focus and coordination to Alaska trade promotion. We are proud of our past and confident of our future. We look forward to more successes in the years ahead and I encourage you to join with us as we work to build a strong international trade economy for Alaska. Sincerely,

Rick Pollock Chairman, Board of Directors World Trade Center Alaska

431 West Seventh Avenue, Suite 108, Anchorage, Alaska 99501-3511, USA Phone 907.278.7233 Fax 907.278.2982 email info@wtcak.org http://www.wtcak.org

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special section

World Trade

Southeast Asia New Markets— New Customers Why ASEAN, why now? BY ALEX SALOV LAOS

VIETNAM MYANMAR

PHILIPPINES

THAILAND

CAMBODIA BRUNEI DARUSSALAM SINGAPORE

INDONESIA

S

outheast Asian countries are sometimes more familiar to adventure travelers than to business people—but they are filled with opportunities for Alaskan companies to do business. Ten of these countries are members of the Association of Southeast Asian Nations—a political and economic union of these nations. The members of ASEAN are: Brunei, Cambodia, Indonesia, Laos, Malaysia, ■ 20

MALAYSIA

Myanmar (Burma), Philippines, Singapore, Thailand and Vietnam. With a total population of around 600 million and steady GDP growth of 5 percent on average in 2011 (compared to 3 percent or less average growth of developed countries worldwide), ASEAN countries have become one of the most important growing markets for the United States. U.S. exports to ASEAN reached $76.24 billion in 2011 and, if considering

ASEAN as a single country, it would be the fourth largest U.S. trading partner after Canada, China and Mexico. Several ASEAN countries follow an export-led growth strategy with which they identify and focus on specific commodities for export. To do that, they select commodities that can be produced cheaply and with a competitive advantage. For example, Indonesia is a large exporter of minerals and the world’s

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leading producer and exporter of thermal coal (used for power generation). It currently supplies half of China’s coal imports. Thailand is becoming a center for automobile manufacturing in Southeast Asia and is among the top ten automobile exporting nations in the world.

Overarching Trends

China is an active player in the ASEAN region. China and ASEAN established a free trade agreement in 2010: the ASEANChina Free Trade Area—the third largest free trade bloc in the world after the European Union and NAFTA. In 2012, ASEAN overtook Japan to become China’s third largest trading partner after the EU and the United States. China-ASEAN trade increased 24 percent to $362.3 billion in 2011 and is expected to exceed $500 billion by 2015. According to China Daily, Chinese officials expect the ASEAN region to become China’s top trading partner within the next several years. Members of ASEAN are very diverse in their political, economic and cultural aspects; however, there are several features that most of them share: relatively young populations, urbanization, growing

The total population of ASEAN countries is about 600 million people. Indonesia is the world’s fourth most populous nation (248.5 million people) and the world’s third largest democracy. middle class, rapid industrialization and strong demand for infrastructure. These overarching trends make ASEAN members attractive export markets for Alaska. Let’s focus on these trends. As mentioned above, the total population of ASEAN countries is about 600 million people. Indonesia is the world’s fourth most populous nation (248.5 million people) and the world’s third largest democracy. Vietnam has a population of 90 million people of which 25% are 14 years old or younger. This young age group is representative of most countries in the region. When paired with available urban employment opportunities, this age group will have disposable income and will attract new consumer goods and services. Since American products are typically considered popular in ASEAN markets, there may be opportunities for Alaskan companies to meet some of this growing demand.

GDP Growth

GDP per capita in Singapore and Brunei is already on par with the world’s leading nations. Meanwhile, in other countries of the region the growth of GDP per capita is significant. In 2010, the region’s average GDP per capita was 322 percent higher than in 1998. This increase is only second to China (536 percent). By comparison, the United States 2010 GDP per capita was 148 percent of the 1998 figures. It may be unfair to compare the U.S. growth numbers to these countries directly because the U.S. economy is so large. However, in order to attain the current growth rates, ASEAN nations have been investing heavily in infrastructure and industry development as well as growing their export capabilities. The result of these efforts is their growing middle class with higher disposable income, education

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Last year, ASEAN assembled $485 million as part of the ASEAN Infrastructure Fund to help finance major infrastructure projects. The fund plans to finance $13 billion in infrastructure spending by 2020. and standard of living. According to the U.S. Department of Commerce, 60 million Indonesians are projected to move up into the middle class in the next 10 years. Another current trend is that governments in the region are beginning to drive their economy with domestic spending rather than relying solely on exports. Several ASEAN countries position themselves in a somewhat similar way to Anchorage—a transportation crossroads of the world. Since ancient times, the Strait of Malacca, which connects the shipping lanes of the Indian and Pacific oceans, has been a vital transAsian trade route. Indonesia, Malaysia, Singapore and Vietnam, as well as other countries in the region, are strategically located between Australia, South America and Northeast Asia. Singapore, for example, is a world renowned logistics hub: it is one of the busiest container ports in the world, the busi-

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est transshipment port of the world, and one of the major cargo airports in the world. Approximately 60 percent of all exports to Singapore are re-exported to the ASEAN region. Other countries have ambitious infrastructure projects being developed both to take advantage of their locations and to prevent falling behind the region-wide industrialization that is taking place. Consider the following examples: n Vietnam Long Thanh International Airport is designed to serve 100 million passengers annually when construction is finished. n Malaysia-Singapore An agreement is expected this year on the proposed Malaysia-Singapore Rapid Transit System, which would add a link between the two nations via either an above ground or undersea tunnel route across the Johor Strait. The link is part of a larger plan to link the two

countries via high-speed rail. n Indonesia in addition to expanding the country’s main international airport in Jakarta (which is handling far more than double its original design capacity), Indonesia will be constructing Karawang International Airport, which is expected to have the capacity for up to 70 million passengers per year. In addition to Karawang International, there are about 15 new airports on Indonesia’s drawing board as part of its Expansion of Indonesian Economic Development program. Indonesia is planning on spending $45 billion in 2012 alone on multiple infrastructure projects with a combination of public-private partnerships. These projects would represent about 4.5% of Indonesia’s GDP. The government plan extends to 2025 and could total up to $450 billion in infrastructure investment.

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■ The Trans-Asian Railway Network TARN has been growing in multiple phases since the 1960s with the longterm goal of linking together Southeast Asia in a massive rail network. It is divided into four geographic sections that will ultimately be connected through Iran and Pakistan to Turkey. The completed rail network would connect Northern Europe to Singapore. Currently the TARN has more than 65,000 miles of interconnected rail in operation. Twentythree nations have signed the United Nations Intergovernmental Agreement on the Trans-Asian Railway, which lays out a framework for completion of the project. According to the U.N., constructing the remaining interconnecting links will require an estimated $25 billion.

has pioneered trade development work to open Southeast Asian opportunities for Alaska businesses. We conducted a conference on business opportunities in India and Singapore in 2006 and the first Alaska trade mission to Southeast Asia in 2010. In addition, WTCAK, through its extensive network within the U.S. Department of Commerce and World Trade Center Association, produces market reports, generates business leads for our members and Alaska companies interested in doing business in Southeast Asia. Contact World Trade Center Alaska | Alaska U.S. Export Assistance

Center if you are interested in further exploring new opportunities in this rapidly developing region. R Alex Salov is the Business Operations Manager at World Trade Center Alaska and has been working at the Center since 2004. He has a master’s degree in global supply chain management from University of Alaska Anchorage. Also, since 2005 he works as an adjunct instructor of Japanese Language at UAA.

Financing Infrastructure

Last year, ASEAN assembled $485 million as part of the ASEAN Infrastructure Fund to help finance major infrastructure projects. The fund plans to finance $13 billion in infrastructure spending by 2020. This is a fraction of the money it conceives of mobilizing in the coming years. According to the Asian Development Bank, which administers the fund, over the next decade ASEAN nations will require approximately $60 billion a year to fully address the region’s infrastructure needs. With these substantial sums in the air and the possibilities for massive global investment in Southeast Asian infrastructure, Alaska companies should keep a close eye on the ASEAN region not only for opportunities in design and construction, but also selling goods and services in the growing economies that will benefit from these projects. Currently, Alaska companies do very little business with ASEAN countries. The secular trends previously discussed make ASEAN countries good potential customers for Alaska businesses. In 2011, China became Alaska’s largest trading partner surpassing Japan. The recent growth of China as a market for Alaska’s products and services was based on similar trends we are seeing in ASEAN now. As we have seen with China, Alaska can expect a significant growth in trade with ASEAN in the next decade. Since 2006, World Trade Center Alaska

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special section

World Trade

Trade Missions

T

rade missions are an important element of any successful trade promotion effort. But, what exactly is a trade mission? Businessdictionary.com provides this definition: “Coordinated overseas visit by a group of business executives to meet potential buyers or agents, usually after market research by a chamber of commerce, industry or trade association, or the visitors’ embassy.” So, a trade mission is more than just a group of people making a trip to a foreign country. It is travel with the intent of promoting trade opportunities or, in some cases, involves the participating companies meeting with potential customers in the country being visited by the mission. Their purpose may be to introduce their company and its product or services or, in some cases, it may be to conduct business with a new or existing customer. Trade missions are typically organized by either a private sector trade organization, as in the case of World

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Trade Center Alaska, or a government entity, such as state or local government. At the state-level, for example, it may be a mission led by the Governor or a department commissioner. At the federal level, the Secretary of Commerce often leads trade missions abroad that are industry focused. Mission participants frequently include both private sector executives and public sector officials. Both can play an important role in the successful conduct of a mission. While the business executives have their own products or services to sell, the policy makers can deliver the message about a positive business environment and highlight particular opportunities or legislation that supports trade activities. The presence of government officials is especially valuable in certain parts of world. Asia comes to mind, for example, where governments play a more direct role in business. Indeed, in some cases, major companies in those countries may be wholly or partially owned by the government.

Gathering here or there to make things happen BY GREG WOLF Trade missions can be conducted in two directions: outbound or inbound. The first would be, for example, a group of Alaska companies visiting China on a trade mission. In other words, outbound means from Alaska to a foreign country. An inbound mission represents the reverse scenario: a group of companies or trade officials visiting Alaska from a foreign country. Sometimes they make the visit at the invitation of an entity in Alaska or they are making the visit on their own initiative. Missions can be either vertical or horizontal. A vertical mission is one where all of the participants are involved with a particular industry. For example, a mission consisting of just seafood companies. In contrast, a horizontal mission will include participants from a variety of industries. In this case, you may have several mining companies, a couple of seafood companies, and a construction firm, and so on. World Trade Center Alaska has a long history, and much experience, in organizing trade missions. In the past

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several years, the Center has led groups to various parts of the world in pursuit of trade expansion. These include three trade missions to China, a mission to Canada to learn about business opportunities associated with development of the oil sands in Alberta, and a mission to India to introduce Alaska export capabilities and to learn more about India’s import needs. During the past decade, Center-conducted missions have also promoted Alaska trade opportunities in Korea, Taiwan, Hong Kong and Singapore. A mission to Asia is planned for fall 2013. There are a number of benefits to be gained by participating in a trade mission. While modern telecommunications enables one to research global markets via the Internet and communicate with potential customers via email, this does not replace the need, or reduce the importance, of face-to-face meetings. Nor, does it diminish the advantage of having first-hand experience in a market where you hope to do business. Experience also informs us that a preconceived view of a particular economy or market may not always be what it is in actuality. This is another reason that a “boots-on-the ground” strategy is part of an effective overall trade promotion effort. Export operations now bring more than $5 billion into the Alaskan economy and are a major source of employment for people across the state. As trade continues to flourish, we anticipate that both inbound and outbound trade missions will occur in greater frequency. These will serve the very useful function of introducing what Alaska has to offer the world in terms of commodities, products and services—and, likewise beneficial, enable Alaskans to gain a first-hand perspective of opportunities around the world and the one-on-one contacts necessary to make trade happen. R Greg Wolf is the Executive Director for World Trade Center Alaska.

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World Trade

Trans-Pacific Partnership Free trade agreement would dwarf NAFTA BY A ARON WEDDLE

T

he Trans-Pacific Partnership is an Asia-Pacific regional free trade agreement currently under negotiation between the United States and about a dozen countries surrounding the Pacific Ocean. If completed, this trade bloc would dwarf NAFTA in value of U.S. international trade. For Alaskans, this could be an important development because Alaska typically does about 70 percent of its annual overseas exports to Asia. The TPP is designed to liberalize trade and investment among its partner nations, which currently consist of: Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam. It is anticipated that additional Asia-Pacific nations will join in once the agreement is finalized.

Japan and China

Two principal Asian economies are not part of TPP negotiations: Japan and China. Japan is undergoing strong domestic political debate on whether to join the TPP. The greatest opposition concerns protection of its heavily subsidized— and politically influential—agricultural sector. In the past, this tension has led Japan to require agricultural exceptions in its free trade agreements. Former Prime Minister Yoshihiko Noda was in favor of joining the TPP and had hoped to finalize Japan’s negotiations by the end of 2012. Japan was on track to join TPP negotiations but, in part because of the economic effects of the March 2011 earthquake, decided to delay membership. Japan recently held elections in which Noda’s Democratic Party of Japan lost power to the Liberal Democratic Party headed by Prime Minister Shinszo Abe. It remains to be seen whether Abe will have the domestic political support needed to move forward with joining the TPP. His support may rest on whether he can negotiate tariff exceptions to protect Japan’s agricultural sector. Japan is also ■ 26

At this point in time, it is unclear how the TPP will ultimately affect Alaska, but WTCAK will keep Alaskans up to date as negotiations unfold. Some of Alaska’s top trade partners will likely be impacted by the TPP. negotiating a trilateral free trade agreement with China and South Korea; however, the escalating tensions with China over disputed Senkaku islands may shift Japanese political support toward a U.S. led trade agreement and away from one involving China. China has thus far not been included in TPP negotiations. There are a number of reasons for China’s exclusion but several are worth noting here. China is concerned that some provisions of the agreement would adversely affect its state-owned companies, and that the TPP is part of U.S. efforts to undermine China’s regional influence. Some Chinese analysts argue that the true U.S. motives behind promoting the TPP are to contain China’s growing economic influence in Asia and to create a U.S. dominated trade bloc that would compete with the Association of Southeast Asian Nations. Further complicating the matter, China has its own free trade agreement with ASEAN called the ASEANChina Free Trade Agreement, which is currently the third largest trade bloc in the world, behind the EU and NAFTA. A strong TPP trade agreement could give member countries, which make similar products to China, an economic competitive advantage in the region.

Evolved Agreement

The TPP evolved from a series of free trade agreements among four Asia-Pacific nations—New Zealand, Chile, Singapore, and Brunei—that entered into an earlier agreement in 2005 known as the Trans-Pacific Strategic Economic

Partnership. In 2008, President George W. Bush announced U.S. intentions to join TPP negotiations. U.S. participation was initiated in part due to the collapse of the World Trade Organization Doha Round that year. In 2009, President Barak Obama affirmed U.S. intentions to continue these negotiations. According to the President’s Office of the Trade Representative: “With the addition of Mexico and Canada, the TPP countries will be by far the largest export market for the United States. U.S. goods exports to the broader AsiaPacific totaled $895 billion in 2011, representing 60 percent of total U.S. goods exports. U.S. Exports of agricultural products to the region totaled $98 billion in 2011, 72 percent of total U.S. agricultural exports. U.S. private services exports totaled $205 billion in 2001 (latest data available), 39 percent of total U.S. private services exports to the world. By comparison, NAFTA countries (Canada and Mexico) were the top two purchasers of U.S. exports in 2010. (Canada $248.2 billion and Mexico $163.3 billion.)” From the perspective of U.S. exports, the TPP is likely to have more of a strategic and political importance rather than producing a dramatic expansion of trade. The U.S. already has bilateral free trade agreements between Australia, Canada, Chile, Mexico and Singapore. However, U.S. involvement in the TPP adds significant diplomatic weight to the success of negotiations and in influencing its final architecture. American participation is also a signal

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of the Obama Administration’s efforts to demonstrate a renewed emphasis on Asian affairs. In 2009, during a speech in Tokyo, President Barack Obama stated that: “The growth of multilateral organizations can advance the security and prosperity of this region. I know that the United States has been disengaged from these organizations in recent years. So let me be clear: those days have passed. As an Asia-Pacific nation, the United States expects to be involved in the discussions that shape the future of this region and to participate fully in appropriate organizations as they are established and evolve.”

Easing Political Resitance

The fact that the U.S. already has free trade agreements with five of the member states might ease political resistance in the U.S. Congress where a majority support of both houses will be necessary for final passage. Unlike a treaty, which requires a two-thirds approval of the U.S. Senate, Congress permits entry into a trade agreement negotiated by the president with a simple majority vote of both the House and Senate. One crucial element to passage of the TPP is Trade Promotion Authority, also known as Fast Track. It allows a trade agreement to be voted on quickly without amendments that might otherwise slow down or stall its final passage. In exchange, Congress is given an expanded role in the president’s trade negotiations. This authority expired in 2007 and has not yet been renewed. The TPP’s draft language is currently being negotiated confidentially by member states, which held the 15th round of talks in Auckland, New Zealand last December. The next round of negotiations will take place March of this year in Singapore. From information that is publicly available, it appears that the TPP both dramatically reduces duties and tariffs, as well as establishes among its members standards of: rules of origin, customs procedures, government procurement, intellectual property, labor and environmental standards, and investment and financial services. While the details of these provisions are in flux, the final product will likely have a significant impact on the economies of some member states. Much of the controversy over TPP has to do with the

investment and financial services portion of the agreement. For example, the TPP will create a framework by which a corporation can seek economic redress from a foreign government by appealing to a TPP member tribunal rather than suing within a national court.

Impact on Alaska

At this point in time, it is unclear how the TPP will ultimately affect Alaska, but WTCAK will keep Alaskans up to date as negotiations unfold. Some of Alaska’s top trade partners will likely be impacted by the TPP. As Alaska contemplates liquefied natural gas exports to Asia, one issue merits attention. Applications for LNG exports require approval by the Department of Energy. Under federal law, licenses for LNG exports to countries that share a free trade agreement with the U.S. go through an expedited process. This could have an impact on future efforts to export Alaska LNG to Japan and other countries that become party to the TPP. Our current focus on emerging markets in Asia parallels the development of the TPP. We have been closely watching Southeast Asian nations such as Singapore, Malaysia and Vietnam. In 2010, WTCAK organized and conducted Alaska’s first trade mission to the region, which included a stop in Singapore. We will continue our work to identify opportunities as they emerge as a result of TPP negotiations. Several negotiating nations share common development trends including rapid urbanization, substantial infrastructure expansion and a growing middle class. We foresee an increased demand for Alaskan resources and expertise as these development trends in the region continue to rise. R Aaron Weddle is a Business Development Consultant to World Trade Center Alaska. He has a Master of Science in Global Supply Chain Management from the University of Alaska Anchorage.

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World Trade

All the Right Stuff

Four ways Alaska is primed for export success BY GREG WOLF

A

laska is in something of a “sweet spot” these days as we benefit from what I call the “Three Rights” of export success: We are in the Right Place, at the Right Time, with the Right Commodities. Alaska has always been blessed by its geographic location. Our strategic location on the Pacific Rim has placed us along the “great circle” route for marine shipping between Asia and North America. Location has also enabled Anchorage to become one of the most important air cargo hubs in the world, poised, as it is, equidistance between Asia, Europe and North America. Add to this, we are neighbors on the Pacific Rim with some of the world’s fastest growing economies and most rapidly growing populations. All of this puts us at the Right Place on the map. Political and economic transforma-

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tion during the past several decades has resulted in formerly centrally planned economies becoming more or less free market in nature, in some cases, now allowing private ownership of property, companies and resources. With this has come the establishment of commercial laws and recourse. Some countries are now permitting, if not encouraging, foreign direct investment in their resources and industries. At the same time, major Asian countries with huge currency reserves are scouring the world’s natural resource jurisdictions to secure vital supplies and, increasingly, to also invest in the projects that produce these supplies.

Asian Diaspora

Economic liberalization and modernization has led to the hundreds of millions of people migrating from the rural areas of their countries to the major cities, at-

tracted by jobs and other opportunities to raise their standard of living. Consider China and India, two Asian giants who are leading the wave of urban expansion: According to McKinsey and Company, by 2025, China will add 400 million people to its urban population and India will see 215 million new residents to its cities. This mass movement of people from the countryside to the cities is unprecedented. The same report notes that never before in history have two of the largest nations (in terms of population) urbanized at the same time, and at such a rapid pace. These developments have lifted many people out of poverty and, in the process, created billions of new consumers. Brookings Institution reports that between 2005 and 2010, sustained economic growth in emerging markets around the world has enabled nearly half a billion people to rise from poverty lev-

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els. They note that never before have so many people been lifted out of poverty in such a brief period of time. The simultaneous rural to urban migration, coupled with continuing economic growth and rising standards of living, is helping to drive staggering demand for the natural resources that Alaska sells. This puts Alaska at the Right Time in history.

Helping Develop World Economies

Home to world-class reserves of natural resources, including energy, minerals, metals, forest products and seafood, Alaska has what so much of the world needs to fuel their economic expansion and to feed their growing populations. What Alaska has to offer the world are what I consider the building blocks of economic development: energy to generate power, minerals and metals for industrial production, forest products for construction and manufacturing, seafood to provide sustenance to people. In other words, we are providing the necessities for modern life, rather than the latest technological gadget. So, we are selling the Right Commodities. These “Three Rights” help to explain the strength and growth of Alaska’s exports to overseas markets. In 2011, Alaska exports reached $5.2 billion, a new all-time high, coming off the previous record of $4.2 billion set in 2010.

reduced transit times and improved access to otherwise isolated locations. We also heard commercial perspectives from government officials, including representatives from Alaska, Canada and Russia. The conference was well attended, and there was active dialogue between speakers and attendees. While tempered with the understanding that commercial development of the Arctic will certainly not occur overnight, there was clearly a sense of excitement about the possibilities and the future outlook. It may turn out then that Alaska will have not three but four “Rights”

that drive our economic development and export growth. The ability to access our treasure trove of natural resources, and move them from here to customers around the world, will be further enhanced by shipping routes, traffic and infrastructure resulting from development in the Arctic. So, we may need to add the fourth Right: we (and now the world) are heading North, the Right Direction! R Greg Wolf is the Executive Director for World Trade Center Alaska.

Unique Position

Looking to the future, geography may again prove to be a blessing for Alaska. I’m referring now to the commercial development of the Arctic. As America’s Arctic state, we are uniquely positioned to benefit from opportunities that will arise from increased shipping along the Northern Sea Route as well as the development of roads, railroads and ports that will enable heretofore “stranded” resources to be developed and transported from source to port to customer in an efficient manner. These were some of the ideas presented and discussed at the first Arctic Ambitions conference in Anchorage last May. The event was co-organized by World Trade Center Alaska and the Institute of the North. Shipping companies from Norway, Finland and Russia made presentations having to do with current and future transportation opportunities along the Northern Sea Route. They talked about significantly

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special section

World Trade

Alaska’s North Slope and LNG North America’s energy bridge to Asia BY SOURABH GUPTA AND ASHOK ROY The views expressed herein are the authors’ own and not those of Samuel International and/or the University of Alaska.

W

hen the first modern shale well was drilled a couple of miles north of Fort Worth, Texas in the late-1990s, few would have believed what a global energy market gamechanger it would turn out to be barely a decade removed. At the time it was anticipated the United States would be, during the first half of the 21st century, one of the largest global importers of liquefied natural gas (LNG); today the U.S. domestic natural gas market is oversupplied and prices barely a fraction of that which they fetched just a couple of years earlier. It is now foreseen that increased production of natural gas (and oil, as the U.S. is slated to dethrone Saudi Arabia soon as the largest producer of black gold) will make the U.S. energy self-sufficient, on net, within 25 years. Along the way, it is expected to provide a foundation for a domestic manufacturing renaissance, supply billions of dollars in revenue to federal and state governments, lessen the pressures on the current U.S. account deficit (via reduced oil and gas imports) and provide upward support to the value of the dollar. Broader geo-political benefits are also likely to accrue. Meanwhile, on the global demand side, as per the International Energy Agency’s most recent World Energy Outlook 2012, natural gas is expected to be the only fossil fuel for which global demand is anticipated to persist—in fact, increase—in any-and-all policy scenarios and contingencies over the next 25 years. Unconventional gas (particularly shale gas) will fulfill nearly half of this increase in demand, much of it arising from Asia’s seemingly unquenchable thirst for energy to fire its unstoppable economic engine. During 2000-2011, more than half the increase in demand for liquefied natural gas came from Asia with imports from China and India growing ■ 30

as much as 30 percent and 52 percent, respectively, in 2011. Active policy support and regulatory reforms are expected to ensure that China’s consumption expands from its current 130 billion cubic meters (bcm) to 545 bcm in 2035. In the interim until 2020 though, Japan is expected to be Asia’s leading importer of LNG, due to its need to find a quick and dependable substitute fuel source in the wake of the Fukushima disaster and the subsequent and continuing nuclear plant shutdowns. Furthermore, a key driver of Asia’s demand dynamics arises from its need to secure diversified fuel choices and sources. Disproportionate amount of current Asian energy consumption is concentrated in greenhouse gas-intensive coal and oil-based sources—an environmentally unsustainable proposition in the long run. Equally, Asia remains overly dependent on the Middle East for oil and on regional production (from Australia, Indonesia, Malaysia and the Russian Sakhalin Peninsula) in the case of LNG. Contracts for LNG further tend to typically be of a long duration and priceinflexible variant. The appearance across of the horizon of seemingly inexhaustible North American shale oil resources thus embodies the latent potential for Asia to significantly improve its energy security, even as it diversifies supply sources, pricing formulas and contractual terms. Clearly, a demand-supply “matchmade-in-heaven” scenario between North American production and Asian consumption beckons on the near horizon—one that is mutually stable, remunerative, and in the long run economically integrative. For Alaska, these developments could not have arrived at a more opportune time. Foremost among its continental peers, Alaska

stands poised at the forefront to become North America’s energy bridge to Asia and reap the profits of this reciprocally beneficial trans-Pacific relationship. In 2009, an updated study by the U.S. Department of Energy (DOE) assessed the discovered technically recoverable natural gas resources on Alaska’s North Slope to be to the tune of approximately 35 trillion cubic feet. Geological evidence suggests that gas fields of sufficient size are available to support economically and environmentally viable extraction. Because a pipeline to carry the gas to (export) market had hitherto been missing, in recent weeks, a consortium of energy companies including Exxon Mobil Corp., ConocoPhillips Co. and BP PLC have signaled their intention to build an 800 mile-long such pipeline from Alaska’s North Slope to its coast. For good measure, a gas liquefaction plant is also envisaged at shore which will enable the consortium—and Alaska—to profitably arbitrage the huge price differential that currently exists between the Asian and North American gas markets. If this all sounds too good to be true, well, that is indeed the case in some ways. Issues ranging from land access to marine mammal protection, especially the bowhead whale which is on the Endangered Species Act list, to water and gravel availability to construct roads and production facilities, have the potential to stymie the development of North Slope oil and gas resources. While some of these hindrances are amenable to solutions, including further advances in technology, an altogether more troubling stumbling block is the existence of an archaic and unnecessarily retrograde federal law that has been on the books since the late-1930s. However, it is prudent to remember the somber uncertainties to Alaska’s pros-

www.akbizmag.com • Alaska Business Monthly • February 2013


pects of having its LNG in the market by 2023 also emanate from exogenous factors, such as: whether Japan restarts its nuclear plants and relies on LNG for power; Russia builds new pipelines to move gas from East Siberia to the Pacific; if efficient LNG tankers costs less than the cost of building the 800 mile new pipeline from the North Slope; if shale gas can be exported as LNG; and if China expands its LNG imports. As per the Natural Gas Act of 1938, all exports of natural gas from the United States require the Department of Energy (DOE) to make an affirmative determination that the permit to export is consistent with the American “public interest.” As a practical matter, this “public interest” determination is limited to those countries with which the U.S. has not entered into a free trade agreement (FTA). The U.S. however has very few such FTAs in force—only 20 totally, many of them with minnows, and none with a large, dynamic Asian economy (save South Korea). Such a discretionary, nonautomatic licensing authority is not only an investment-chiller, it might also be noncom-

pliant with the U.S.’ international commitments. International trade lawyers and U.S. Chamber of Commerce officials alike have charged that the requirement to secure government approval to export LNG amounts to a possible export restraint that violates the U.S.’ obligations under the 1994 General Agreement on Tariffs and Trade (GATT). Although GATT rules allow limited exceptions from this general prohibition on export restraints, such prohibitions or restrictions need to be either: (a) temporary (b) related to essential products that are in short supply (c) applied in conjunction with other conservationist objectives, or (d) made with an express national security objective in mind. Discretionary nonautomatic export licensing authority (for LNG) interpreted under the guise of being in the “public interest” does not appear to comport to these above criteria—in turn, calling into question the U.S.’ fidelity to international trade law and obligation on this matter.

Regardless of this consistency/inconsistency, protectionist voices in Congress have latched onto this provision to lobby for denial of LNG exports abroad—both, to artificially benefit domestic manufacturing via the differential in (energy) input prices as well as to crimp the broader development of the U.S.’ onshore and offshore gas resources in the name of environmental considerations. However, fully participating in global energy markets is the most appropriate way to reward domestic producers, incentivize investments in economical domestic production, and keep costs low for consumers, while simultaneously encourage the use of off-the-shelf technologies that enhance efficiency and conservation goals. Ultimately, in the absence of development of the North Slope LNG bounty, it is in Alaska—and in lost revenues— where the price will be paid. Going forward, the offending provision in the Natural Gas Act needs to be reinterpreted in such way that LNG exports are denied to none but the most egregious few rogue state actors. Allies such as Japan, which currently have significantly reduced their intake of Iranian

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crude in spite of the Fukushima disaster, ought not to be punished by such exclusions, which were written in an altogether different time and age. In passing, it bears noting that even at the height of the Cold War the U.S. conducted agricultural trade with the Soviet Union. Equally, the discretionary authority embedded in the Natural Gas Act needs to be stripped so that predictability and security of tenure to justify the large, capital-intensive investment in a pipeline and gas liquefaction facility can be assured. Federal law ought to embrace such extraction, development, transport and export, so long as it is conducted in a market–friendly and environmentally responsible fashion. In early December 2012, an ice-class LNG tanker chartered by the Russian oil and gas giant Gazprom traversed the Arctic route to Asia to deliver a cargo of Norwegian gas at the Japanese port of Kitakyushu. The number of such crossings has been on the rise in recent times—the number of vessels making the Arctic passage having risen steadily from four in 2010 to 34 in 2011 to 46 as of December 2012. Russian president Vladimir Putin has vowed to transform this route into a

future “international transport artery” in terms of fees, safety and quality. The seemingly unquenchable thirst for LNG on the Asian continent will, one way or the other, be sated. The question is: will it be U.S.—and Alaska-based—capital and producers at the head of this queue?

Or will this opportunity be fumbled by way of pious pronouncements that cater—and serve as a cover—to the interest of more protectionist-minded lobbies in Washington, D.C. The road ahead for Alaska, in the years to come, has some detours and riddles. R

Sourabh Gupta is a Senior Research Associate at Samuels International Associates Inc., a strategic international trade and political advisory firm based in Washington, D.C. He holds master’s degrees in international security studies and international relations from the Walsh School of Foreign Service at Georgetown University and the Maxwell School at Syracuse University, respectively. He is currently a 2012 East Asia Forum Distinguished Fellow.

Dr. Ashok K. Roy is the Vice President for Finance & Administration/ Chief Financial Officer for the University of Alaska system. Dr. Roy has significant experience, at senior management levels, at three other large universities, local government, and in the private sector. Dr. Roy was educated in the USA and India, and holds six university degrees and five professional certifications. He has authored 67 publications in academic and trade journals.

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www.akbizmag.com • Alaska Business Monthly • February 2013


special section

World Trade

Arctic Ambitions II Conference

D

evelopment of the Arctic is a hot topic around the world and is the subject of international conferences—forums that take place each year. Last May in Anchorage, World Trade Center Alaska, along with the Institute of the North, conducted the inaugural Arctic Ambitions Conference. The gathering concentrated on the theme of international trade and business opportunities that flow from development of the Arctic. Working from a context of who stands to benefit most—which regions, countries, industries and companies—presenters addressed issues such as international supply chains, markets, commerce, marine transport and other subjects associated with Arctic development. While policy and research informed the discussion, the conference concentrated on global markets, international trade and decision-making. Discussion was framed by several key Arctic industries. It addressed the two-way nature of exports and imports in the Arctic. It’s not just a question of what Arctic nations can develop and export—equally important is who has a market for those resources. Government officials and business executives from Canada, Finland, Japan, Korea, Norway, Russia and the United States participated in the conference and discussed their roles as development unfolds in the region. With the accelerating rate of polarice melt, massive natural resources are becoming accessible in the Arctic. According to the U.S. Geological Survey, one-quarter of the world’s undiscovered, technically recoverable oil and gas resources may be in the Arctic: oil (90 billion barrels); natural gas (1.7 trillion cubic feet); and natural gas liquids (44 billion barrels). Resource exploration in the Arctic requires significant technical assistance. For example, Arctia Shipping, a Finnish operator of an icebreaking fleet, provides service and support of offshore oil and gas exploration. The company’s icebreakers are capable of supporting offshore drilling rigs in Alaska and elsewhere in the Arctic. The pres-

ident of Arctia Shipping was one of the featured speakers at the inaugural Arctic Ambitions Conference in May last year. At the same time, there was a significant increase in maritime cargo movements through the Arctic shipping routes. The summer season of 2011 showed a rise of commercial transit via the Northern Sea Route—34 ships carried 820,000 tons of cargo. By comparison, in 2010, only 4 ships transited through the NSR and carried 111,000 tons. All but one of these vessels required an icebreaker escort. Rosatomflot, a Russian company operating a fleet of nuclear-powered icebreakers in the Arctic, provided these escorts. Rosatomflot also participated in Arctic Ambitions. With the growth of Arctic maritime infrastructure, there exists a potential for usage of Alaska ports. Ships passing through the Bering Strait could be served by ports such as Adak and Unalaska. These ports could become transshipping hubs for cargo as it passes from new Arctic shipping lanes to existing commercial routes. Currently, the Norwegian port of Kirkenes serves this function on the European side of the Northern Sea Route. One of the operators of this transshipping hub, Tschudi Shipping Co., came to Anchorage to present at Arctic Ambitions last year. This year’s Arctic Ambitions II Conference will provide an important update on commercial activities in the Arctic and a venue for Alaska companies to hear the latest news directly from government and business leaders in the region. The conference will take place at the Hotel Captain Cook in Anchorage on Feb. 1920: for registration information visit wtcak.org or call (907) 27-TRADE. R

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special section

World Trade

New Realistic Russian Opportunities Promoting business with Alaska companies

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BY ALEX SALOV AND A ARON WEDDLE

ith the events surrounding the fall of the Berlin Wall in 1989, Alaska and Russia began exploring economic and cultural relations. Businesspeople, students and cultural exchange groups visited their counterparts and several organizations were established to promote bilateral relations. Sister-city relations were established between Alaskan and Russian cities, such as Magadan, Vladivostok, Yakutsk, Petropavlovsk-Kamchatsky and others. The excitement grew with the announcement of several Sakhalin oil and gas development projects in the 1990s. Since the Russian Far East is a resource-rich region, Alaska has not been a large exporter of commodities to the region. Rather, Alaska companies have been exporting technical and professional expertise and services. Several firms have garnered contracts in transportation, construction and other fields. Some participated in joint development projects in Sakhalin and continue their operations in the region to this day. For example, Lynden Inc. is a provider of transportation and logistics services in Sakhalin, and Alaska Interstate Construction LLC is involved in road construction, oil well pad installation, and other oilfield infrastructure development projects. In the same period, the University of Alaska established close ties with its counterparts in the Russian Far East. Many students from Magadan, Khabarovsk, Vladivostok, as well as other cities in the region, enjoy resident tuition at the University of Alaska. At one point in time, the University of Alaska had more Russian students than any other university in the United States. Also, the American-Russian Center at the University of Alaska Anchorage was one of the principal technical assistance organizations between the U.S. and the Russian Far East. It

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had branch offices in eight Russian cities and several thousand Russians participated in its courses and educational exchange programs. Both Aeroflot and Alaska Airlines started direct service between Alaska and the Russian Far East in 1991. By the early 2000s direct flights stopped. Since then there have been a few unsuccessful attempts on both the U.S. and Russian sides to resume regular service. Last summer regional Russian air carrier Yakutia Air started seasonal service from Petropavlovsk-Kamchatsky to Anchorage and conducted 10 roundtrip flights. In 2013, Yakutia Air will expand service to 14 roundtrips and provide a direct connection from Petropavlovsk to Khabarovsk, which is served by several airlines connecting with other Russian and Asian destinations. Successful operations could lead to a decision by the carrier to expand from seasonal to year-round service in the future. In 2012, Russia acceded to the World Trade Organization. As a result of this accession, Russia’s average tariff rate will decline and conditions for foreign trade and investments will be liberalized. U.S. manufacturers and exporters will now have more favorable market access than in previous years. In addition, WTO accession includes stronger intellectual property rights enforce-

ment and more transparency in traderelated legislation. In September 2012 another development saw the entering into force of an historic visa agreement between the U.S. and Russia. Thanks to this agreement, three-year, multiple-entry visas will become the standard terms for U.S. citizens visiting Russia and Russian citizens visiting the United States. The agreement also eliminated official letters of invitation and standardized visa processing time to 15 days. In previous decades, visa issuance and terms were inevitable obstacles for U.S.-Russia business travel and tourism. On Feb. 19, World Trade Center Alaska will conduct the half-day conference entitled “A New Look at AlaskaRussian Far East Opportunities.” With this half-day event, the Trade Center will take a new, fresh look at potential business opportunities between Alaska and the Russian Far East region. It will feature six speakers, a mix of both U.S. and Russian trade specialists. Much has transpired since the 1990’s when Alaskans actively explored commercial opportunities in the Russian Far East. Considering the history of AlaskaRussian Far East relations and the new developments listed above, new market opportunities for Alaska companies may emerge in the near future. R

www.akbizmag.com • Alaska Business Monthly • February 2013


World Trade special section

Export Partners & Commodities Total U.S. Exports (Origin of Movement) via ALASKA Top 25 6-digit HS Commodities Based on 2011 Dollar Value U.S. Exports by Origin State (Origin of Movement Series). Values in millions of dollars. Percent Change is from 2010 - 2011. Rank

HS Code

Description

--Total Alaska exports and % share of U.S. Total ----Total, top 25 commodities and % share of state total --1 Zinc ores and concentrates 260800 2 Fish fillets, frozen, nesoi 30429 3 Lead ores and concentrates 260700 4 Fish meat, frozen, except steaks and fillets nesoi 30499 5 Pacific salmon, nesoi, excl filet, liver,roe, froz 30319 6 Fish livers and roes, frozen 30380 7 Gold, nonmonetary, unwrought nesoi 710812 8 Fish, nesoi, with bones, frozen 30379 9 Cod, frozen, excluding fillets, livers and roes 30352 10 Natural gas, liquefied 271111 11 Copper ores and concentrates 260300 12 Precious metal ores & concentrates, except silver 261690 13 Sockeye salmon, excl fillet, livers & roes, frozen 30311 14 Oil (not crude) from petrol & bitum mineral etc. 271019 15 Coniferous wood in the rough, not treated 440320 16 Crabs, including in shell, frozen 30614 17 Flat fish nesoi except fillets, livers, roes, frz 30339 18 Natural gas, gaseous 271121 19 Flour meal & pellet of fish crustaceans etc inedib 230120 20 Cod except fillets, livers & roes, fresh, chilled 30250 21 Herrings, frozen, except fillets, livers and roes 30351 22 Civilian aircraft, engines, and parts 880000 23 Halibut/greenland turbot ex fillet, lvr, roe fr/ch 30221 24 Salmon, pac, atl & danube, with bones, fr or chill 30212 25 Flours, meals & pellts of fish, for human consumpt 30510 ‘(Z)’ indicates a percent change greater than 500. Updated 11JUL2012.

2008 Value

2009 Value

2010 Value

2011 Value

2008 % Share

2009 % Share

2010 % Share

2011 % Share

% Change, 2010-2011

3,542 3,264 443 317 145 203 153 293 143 127 155 305 103 0 97 144 81 82 113 0 28 24 23 196 51 17 22

3,270 2,967 610 308 160 182 148 209 151 160 92 257 64 0 114 38 86 82 81 0 30 53 38 29 40 13 20

4,155 3,838 877 280 402 270 218 152 213 150 153 366 37 20 132 27 114 73 95 0 46 44 35 49 47 19 18

5,325 5,066 972 519 495 319 293 269 266 257 247 210 199 142 132 125 118 113 74 67 62 39 38 33 30 24 22

0.3 92.2 12.5 9 4.1 5.7 4.3 8.3 4 3.6 4.4 8.6 2.9 0 2.7 4.1 2.3 2.3 3.2 0 0.8 0.7 0.6 5.5 1.4 0.5 0.6

0.3 90.7 18.7 9.4 4.9 5.6 4.5 6.4 4.6 4.9 2.8 7.8 2 0 3.5 1.2 2.6 2.5 2.5 0 0.9 1.6 1.2 0.9 1.2 0.4 0.6

0.3 92.4 21.1 6.7 9.7 6.5 5.3 3.6 5.1 3.6 3.7 8.8 0.9 0.5 3.2 0.6 2.7 1.7 2.3 0 1.1 1.1 0.9 1.2 1.1 0.5 0.4

0.4 95.1 18.3 9.8 9.3 6 5.5 5.1 5 4.8 4.6 3.9 3.7 2.7 2.5 2.4 2.2 2.1 1.4 1.3 1.2 0.7 0.7 0.6 0.6 0.4 0.4

28.2 32 10.8 85.8 23 18 34.2 77.5 24.6 71.1 61.1 -42.6 441.3 (Z) -0.5 370.4 4.1 56.3 -22.1 0 35.6 -11.1 7.3 -32.4 -36.6 25.9 22.9

Total U.S. Exports (Origin of Movement) via ALASKA Top 25 Countries Based on 2011 Dollar Value Country

--Total Alaska exports and % share of u.S. Total --Total, top 25 countries and % share of state total 1 China 2 Japan 3 Korea, south 4 Canada 5 Germany 6 Switzerland 7 Spain 8 Netherlands 9 Australia 10 Mexico 11 Finland 12 Malaysia 13 France 14 Thailand 15 Belgium 16 Portugal 17 Chile 18 Taiwan 19 Denmark 20 United kingdom 21 Ukraine 22 Russia 23 Norway 24 Hong kong 25 Singapore ‘(Z)’ indicates a percent change greater than 500. Updated 11JUL2012.

2008 Value

2009 Value

2010 Value

2011 Value

2008 % Share

2009 % Share

2010 % Share

2011 % Share

% Change, 2010-2011

3,542 3,480 733 1,051 366 370 208 148 30 105 4 30 25 0 44 22 36 59 10 109 17 22 17 19 25 11 18

3,270 3,188 586 992 458 320 126 150 138 88 21 8 27 2 31 18 27 17 15 12 10 16 5 11 15 22 74

4,155 4,090 921 1,218 477 390 174 211 163 115 66 13 41 1 41 21 64 33 23 23 8 29 9 11 17 12 8

5,325 5,262 1,477 1,086 642 586 261 253 205 173 96 79 60 49 48 35 31 31 21 20 19 18 18 16 15 13 11

0.3 98.3 20.7 29.7 10.3 10.5 5.9 4.2 0.9 3 0.1 0.8 0.7 0 1.2 0.6 1 1.7 0.3 3.1 0.5 0.6 0.5 0.5 0.7 0.3 0.5

0.3 97.5 20.7 29.7 10.3 10.5 5.9 4.2 0.9 3 0.1 0.8 0.7 0 1.2 0.6 1 1.7 0.3 3.1 0.5 0.6 0.5 0.5 0.7 0.3 0.5

0.3 98.5 22.2 29.3 11.5 9.4 4.2 5.1 3.9 2.8 1.6 0.3 1 0 1 0.5 1.5 0.8 0.6 0.6 0.2 0.7 0.2 0.3 0.4 0.3 0.2

0.4 98.8 27.7 20.4 12.1 11 4.9 4.7 3.9 3.2 1.8 1.5 1.1 0.9 0.9 0.7 0.6 0.6 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.2 0.2

28.2 28.6 60.3 -10.8 34.6 50.2 49.9 20 25.5 50.2 46.7 488.2 46.6 (Z) 16.6 64.8 -50.9 -6.2 -9.4 -10.8 126.2 -38.8 86.8 35.6 -12 10.4 41.2

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SOURCE: U.S. Census Bureau

U.S. Exports by Origin State (Origin of Movement Series). Values in millions of dollars. Percent Change is from 2010 - 2011. Rank


Fisheries

â–  36


Bering Sea Bounty Commercial fishing exports shore up Dutch Harbor, Akutan economies BY ZAZ HOLLANDER

T

he bounty of the Bering Sea hits the dock in the Aleutian Islands. Then it goes worldwide. Dutch Harbor is the busiest fishing port in the country, a title the roughedged Aleutian community of Unalaska has held for the last 15 years. Akutan, a windblown hamlet 45 miles away, is home to the largest seafood plant in North America, owned by Trident Seafood Corp., a massive operation that draws upwards of 1,000 people to the remote spot at peak processing times. Between them, the ports of Dutch Harbor and Akutan bring in more value and volume than any commercial fishing port in the United States. Combined, the total volume of seafood landed at Dutch Harbor and Akutan topped 1.1 billion pounds in 2011. They also account for the majority of the state’s seafood exports, a commodity hitting new levels in recent years. Then there’s the drier upside of taxes paid by the fishing industry that make up the bulk of local budgets and even boost the state’s general fund. “Overall, it’s our only game in town,” says Frank Kelty, a former Unalaska mayor who now works as a city resource analyst. “All our different industries are tied to the health of the resource of the Bering Sea.”

‘This Town is Buzzing’

Commercial crabbing fishermen hauling crab traps onboard in heavy seas in the Bering Sea, Southwest Alaska. ©2013 Dan Parrett / AlaskaStock.com

It’s hard to keep track of all the economic impacts tied to commercial seafood in the Port of Dutch Harbor and City of Unalaska. Direct jobs in fishing and processing in 2011 totaled 56 skippers and crew and more than 3,340 processing jobs worth $62 million, according to the Alaska Department of Labor and Workforce Development. Numerous companies operate shorebased processing plants out of UnalaskaDutch Harbor. Among them are: Alyeska Seafoods Inc.; Unisea Inc.; Western Alaska Fisheries; APICDA Joint Venture Inc.; Quota Share Leasing LLC; Bering Fisheries; and EAG Quota LLC. Plants process nearly 50 different species of fish and shellfish—several kinds of crab and salmon, flounder, rockfish and sablefish. Pollock alone brought in a wholesale value of $523 million for Dutch Harbor and Akutan in 2011, according to an Alaska Department of Fish and Game tally. Pacific cod netted more than $93 million, and snow crab more than $90 million. 37 ■


Long List of Indirect Jobs

“Basically, the economic structure of this town has been built on the fisheries,” says Peggy McLaughlin, the City of Unalaska’s port director. “Repair services, fueling services, grocery services, radar services, and then the big piece is the cargo and labor services that come with handling all the fish product and supplies.” Two container ships a week call on the city’s dock. Private facilities handle container ships as well. Barge calls every year easily top 1,000, McLaughlin says. The port’s revenue stream is directly linked to fishing vessel vendor-support services, she says. The city dock hosts companies that provide cargo cranes and fueling at the main industrial dock. Unalaska also operates a light cargo dock designed for loading and unloading gear and crab pots. A small-boat harbor takes small fishing and recreational vessels up to 70 feet. A new harbor—Carl E. Moses Boat Harbor—opened in December 2012. The harbor boasts 65 slips and more than 5,400 feet of linear docking space and is totally full except for a handful of slots. Chalk that up to the economics of tran-

siting back to Seattle. It’s cheaper to stay in the Port of Dutch Harbor for repairs. Unalaska has one of the largest longshore groups in the state, with more than 100 members, according to Kelty. The fishing industry underpins air service in and out of the community. It supports hotels, restaurant, grocers, electricians, fuel services and repair businesses. It also underpins the city’s heft y government roster of about 150 people to run everything from utilities to snow-clearing and security. “When everybody’s gearing up for the fisheries, this town is buzzing,” McLaughlin says. “You can’t consistently get cell service because the cell lines are using up the entire bandwidth. Getting a plane seat in and out of here is problematic. Of course, everybody benefits from that: the grocery stores, the bars, the restaurants.”

One Big Resident

Only one processor operates in Akutan: Seattle-based Trident, with the plant capacity to process 3 million pounds of fish and seafood every day. Akutan sits on the shoulders of steep volcanic terrain

where the influx of so many workers every year creates a community of its own. While state population counters put the number of residents at 75, that number is really more like 750 if you count Trident employees who make semi-permanent or permanent homes there, according to Larry Cotter, executive director of the nonprofit corporation the Aleutian Pribilof Island Community Development Association. A video made in 2008 for the City of Akutan portrays the vibrancy of the processing industry in Akutan. The video shows workers sorting and freezing fillets at the Trident Plant. They make surimi—imitation crab formed from ground-up pollock, starches, sugar, and other additives. They produce fish meal and oil for export to what looks like Korea, to judge by the letters on outbound bags. They process king and snow crab as well as halibut. Products head off in containers for overseas markets. City and Trident officials did not return calls for comment about Akutan operations. It’s clear that Trident, like the plants in Unalaska-Dutch Harbor, leverages money for infrastructure that wouldn’t

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be possible in such a small community without them, Cotter says. Akutan has “incredible geothermal capacity,” he says. The community is seeing positives on test wells, he says. “The fact Trident is there probably makes it feasible to bring that project on line.”

Export Mecca

Gov. Sean Parnell in April 2012, announced a major uptick in Alaska’s exports. Dutch Harbor and Akutan were a big part of that news. The value of the state’s seafood exports was up 35 percent in a year between 2010 and 2011. The surge was part of a nearly 25 percent increase in Alaska’s exports overall year to year, for a value of more than $5 billion. The country buying the state’s goods changed too: for the first time, China became the leading importer of Alaska’s products and resources, replacing Japan. As processors grow larger, they are exporting partially processed product to China for finishing, state officials say. Then the product is shipped back to the United States for sale. So, for example, frozen headed and gutted salmon might get canned in China, shipped back to the

U.S., then sold as “Made in China” though the fish in the cans is wild Alaskan. A marketing focus on exports helped push the seafood boom, but so did our relatively weak dollar, says Tyson Fick, communications director for the Alaska Seafood Marketing Institute. Japan bought more seafood—salmon, crab, pollock and other species—on a weaker dollar against the yen. The value of the dollar relative to competitors in Norway helped too, Fick says. Dutch Harbor and Akutan were major players in the increase, industry watchers say. There’s no public data on exports from specific ports due to confidentiality protections, though value and volume in each is available. Dutch Harbor and Akutan are key ports involved in the harvesting, processing and exporting of Alaska pollock, according to an email from Andy Wink, a McDowell Group researcher who works with the Alaska Seafood Marketing Institute. Alaska’s seafood industry exported 521 million pounds of frozen pollock, fillets, surimi and roe in 2011, worth $665 million. The 2011 Alaska pollock harvest alone totaled 2.8 billion pounds.

Paying Back

Just as significant as the export piece is the contribution these ports make to local and state tax bases. Dutch Harbor-Unalaska gets $11 million to $13 million from fish taxes almost every year, according to Kelty. On top of that, the city charges a 3 percent sales tax. The money makes up close to half of the revenues headed for the general fund. The city’s general fund runs around $20 to $25 million, about twice that if you include several city-run utilities. “We have first-class school facilities, many new buildings—city hall, parks culture and recreation buildings, maintenance buildings, museum, libraries. All are within 10 to 15 years old,” Kelty says. “They all got built with the start of the groundfish revenues.” There’s a 2 percent landing tax on all fish delivered, he says. There’s also a tax shared with the state—3 percent paid by shore processing plants based on the value of product. Atsea processors also pay the 3 percent tax if they operate within state waters. The state and Dutch Harbor-Unalaska each received more than $6.7 million

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www.akbizmag.com • Alaska Business Monthly • February 2013

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A


in fishery business and landing taxes through the municipal tax-sharing program, according to a fact sheet compiled by United Fishermen of Alaska in Juneau. “That’s big enough to make an impact on the state general fund,” says Mark Vinsel, executive director of United Fishermen. It hasn’t always been this way.

The History

The history of the Grand Aleutian Hotel is a history of the fishing and processing boom that built Dutch Harbor-Unalaska as it is today. Redmond, Wash.-based processing powerhouse UniSea Inc. operates the 112-room hotel that also holds several restaurants—the Chart Room restaurant known for it Wednesday night seafood buffets, a cafe, a sushi place and a bar. About 80 percent of the guests staying at the Grand Aleutian are involved in some way with the fishing industry, according to Tom Enlow, the hotel’s general manager and UniSea’s hospitality director. That includes state and federal government fish managers, workers on at-sea processing ships waiting on shift changes and industry representatives.

But back in the 1970s, visitors to Unalaska-Dutch Harbor arrived to find no lodging. Former UniSea president Dick Pace put them up on one of the company’s floating processing platforms. The clear and rising need for lodging drove Pace’s decision to build the UniSea Inn in the early 1980s, a 50-room establishment with restaurant, bar and liquor store that’s still used for employee housing and lodging for the public. The growth of the Bering Sea groundfish industry in the 1990s drove the construction of the larger Grand Aleutian. The 1996 Magnuson-Stevens Fishery Conservation and Management Act phased out foreign fishing, created regional fishery management councils, and focused on rebuilding overfished stocks and reducing bycatch. Most of the Bering’s fisheries were rationalized in the 1990s, “which has resulted in significant positive changes for the industry overall,” APICDA’s Cotter says. “Dutch Harbor and Akutan, the Bering Sea in general, has been the premier fishery in the United States,” Cotter says. “The stocks are managed well ... We have embraced science and we have embraced

data. We all understand it’s necessary to know what’s going on in the ocean.”

The Future

The industry faces several challenges on the ocean front. For one, it’s likely that restrictions based on weak halibut stocks will inflict some pain on Bering Sea fisheries, says Enlow, an Unalaska city councilor who serves as chair of the North Pacific Fishery Management Council advisory panel. Managers are trying to get a handle on a sudden drop in the size of halibut landed, as well as a mushy texture that’s baffled the industry. Halibut is caught and processed in the Bering fisheries, but it’s also caught incidentally as bycatch in groundfish fisheries. Enlow says the potential impact could be “across the board.” “Halibut is really a driving resource in all the fisheries we’re involved in,” he says. Other challenges to Bering Sea fisheries include restrictions to reduce salmon bycatch and cutbacks in Aleutian fisheries to address sea lion protections, Kelty says. Still, the 2013 quota on pollock— a mainstay of Unalaska-Dutch Harbor and Akutan processing—rose by 60,000 metric tons, he says. “The overall state of affairs with the strength of the resource is we’re in excellent shape.” The ability of that fishery to bounce back, biomass-wise, is astounding, state officials say. In 2011, the industry reported more than 1 billion total pounds of processed pollock for a total wholesale value of $1.38 billion, according to Shellene Hutter, with the Alaska Department of Fish and Game. To put that in perspective, the industry statewide reported about 545,000 pounds of processed salmon for a value of $1.44 billion that year. And there may be a new industry on the horizon: oil. Shell Oil used Dutch Harbor as a staging area for it offshore Arctic drilling operations over the summer. “Behind them is Statoil and Conoco Phillips,” Enlow says. “They’re all in the permit process. If Shell is successful with its exploratory wells it could change a lot of the ports in western Alaska. Ours being the northernmost ice-free port, it could mean big changes.” R Zaz Hollander is a journalist living in Palmer.

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Fisheries

Plight of the Albatross Improves Cheering an Alaska fishing fleet in the Bering Sea BY WESLEY LOY

T

hree years ago, one of Alaska’s most productive fishing fleets was in a state of shock. Bering Sea longline vessels had accidentally caught and killed two shorttailed albatross, a large and extremely rare seabird with a distinctive pink bill. Like many seabirds, the albatross has a penchant for diving at the strings of baited hooks deployed off fishing vessels, hoping for free food. If caught, the birds can be pulled underwater and drown. Catching even one short-tailed albatross is cause for alarm. The birds are listed under the Endangered Species Act, and incidental catches in fisheries are strictly limited. Catches of more than four birds in a two-year period could lead to severe commercial fishing restrictions. And so, the demise of two shorttailed albatross in rapid succession in the summer of 2010 stunned longliners targeting Pacific cod off Alaska. It had been 12 years since the last albatross take. “We were hopeful this day would never come,” a representative of the Freezer Longline Coalition said at the time. The Seattle-based trade association’s member boats catch, process and freeze cod at sea, generating up to $200 million in annual export revenue. Since 2010, federal officials have reported only one additional catch of short-tailed albatross. And an international scientific effort to recover the species is making significant headway. Feather hunters looking for pillow down and writing quills harvested millions of short-tailed albatross, driving them to near extinction by the 1930s. Today, the status of the surviving population is particularly precarious, not because of fishery takes so much as its preferred habitat.

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TOP Short tailed TOP: albatross chicks during translocation to Mukojima. BOTTOM LEFT LEFT: A nesting pair of short tailed albatross. BOTTOM RIGHT RIGHT: Short tailed albatross at the main Torishima colony, which is located on a steep, eroding alluvial slope where nests can easily be washed away or buried in a landslide.

© Yamashina Institute for Ornithology

© U.S. Fish and Wildlife Service and Robert Suryan, Oregon State University

© Hiroshi Hasegawa, Toho University

The world population of short-tailed albatross is about 3,000 birds, with 500 to 550 breeding pairs. Most breed on Torishima, a remote western Pacific island off Japan. Torishima is an active volcano. Under a worst-case scenario, it is believed that about 63 percent of the Torishima population could be killed in a catastrophic eruption. To provide insurance for the birds, scientists have been translocating albatross chicks to Mukojima, a safe island about 200 miles away, in hopes of establishing a new colony. On Nov. 14, 2012, a pair of short-tailed albatross were observed breeding on Mukojima, the first indication of successful translocation of a breeding population. “It was quite a milestone,” says Judy Jacobs, who worked on the translocation project with the U.S. Fish and Wildlife Service.

Much work remains. As Jacobs says, “One pair does not a colony make.” But any progress at Mukojima is good news for Alaska fishermen. Longliners have worked with federal regulators for years to develop ways to avoid albatross catches. One tactic is flying streamers off boat sterns as baited hook lines are deployed. The streamers scare away the birds until the hooks can sink beyond their reach. The ultimate solution, however, is creating more short-tailed albatross. “We welcome the recent FWS report of initial breeding on the island and hope it signals a step forward for the health of the species,” says Chad See, Freezer Longline Coalition executive director. R Wesley Loy is a journalist living in Anchorage.

www.akbizmag.com • Alaska Business Monthly • February 2013


telecom & technologY

Top priorities at pay off BY ED ARTHUR Photo courtesy of GCI Industrial Telecom

Satellite haul on the North Slope.

G

CI may be best known as a cable and telephone company manifested physically by phone wires or the coaxial cable that comes from a wall and attaches to a cable TV “box” or high speed cable Internet modem. The company, however, is also the provider of the largest medical network in the Pacific Northwest, connects more than 180 rural Alaska villages with wireless networking--and, according to the company, brings voice, video and wireless service to more than 90 percent of Alaskans, including video conferencing. As part of a more than 1,700-employee-strong parent company and with 120 employees spread between remote site work and three primary Network Operations Control Center locations, two in Alaska and one in Texas, GCI’s Industrial Telecom division may not be the largest employer in the state, but certainly ranks as one of the busiest and most important. “Reliable, high quality communications is critical to development.

Without being able to communicate as quickly and as often as you need, progress can slow; delays and even very expensive down time can result,” says Mark Johnson, GCI Industrial Telecom team spokesman. Besides helping clients avoid costly delays, the GCI Industrial Telecom team is dedicated to achieving the high communications goal the division has set, according to Johnson. “Our goal is always to provide such good telecommunications that you have the same speed and quality between a remote site and Anchorage that you’d expect between neighbors or with the business just blocks away in a major city,” he says.

Partnerships

The telecom team doesn’t just have clientprovider relationships--they see their customers as their partners in problem solving and developing solutions to each client’s specific needs and wants.

“We’re with them from day one of planning, through the development and building phases of every project,” Johnson says. “Then, we stay with them providing continuing telecommunications support as they come on-line and become producers. Right now, there isn’t a producer on Alaska’s North Slope we don’t provide services to. We are a one-stop communications provider.” Through video conferencing, GCI Industrial Telecom can help clients service multiple locations--no matter how remote--for employee training, meetings or project management. Where possible, video conferencing also enhances or creates the option of telecommuting, a growing and cost-effective means to getting more and more jobs accomplished. Quality client service at the personal level turns into quality telecommunications service. Starting from day one, GCI Industrial Telecom engineers and technicians work with clients to design systems unique to each client’s needs.

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And, in turn, quality communications can mean that small glitches are seen and corrected or eliminated before they become expensive problems. Monitoring sensors on equipment at remote sites can send warnings over the GCI Industrial Telecom network to one of the operations centers and actions can then be set in motion to remedy or replace the affected equipment. Likewise, GCI Industrial Telecom provides the backbone for companies to monitor their own sites and performance.

Focused and Specialized

“The Industrial Telecom team is a very focused and specialized group,” says Russ Doig, vice president of the Industrial Telecom team. “We continue to grow our team of over 100 professional telecom technicians, engineers, project managers, schedulers and documentation specialists to support our Oil Patch Engineering, Procurement and Construction and operations efforts. This ‘back office’ support allows our field personnel to perform their work flawlessly and safely throughout the Arctic and Lower 48 states to support our oil

patch clients. We understand the oil and gas business because we are integrated into the oil and gas business.” GCI Industrial Telecom works in some of the most dangerous and challenging environments on the earth-from remote testing and drilling sites on Alaska’s North Slope to the heavy seas of the Gulf of Mexico. “When you think about the physical environments we and our partners face, you realize reliable, high-quality telecommunications is critical. It can actually be the difference between life and death,” Johnson says. “GCI Industrial Telecom has provided engineering, project management and ‘feet-on-the-street’ technical support to our clients during emergencies both in Alaska and the Gulf of Mexico. Whether it be a hurricane or a manmade disaster, quickly deployed, reliable communications are a critical part of any response. GCI has a strong track record of successfully providing these services for our partners.”

Array of Networks

GCI Industrial Telecom’s array of networks in and supporting Alaska is com-

prised of air, land and sea resources connecting locations all across Alaska and the Lower 48. Its mobile facility, called MERC, or Mobile Emergency Response Center, can be sent to any customerspecified location on short notice to provide satellite voice and Internet connectivity as backup during any emergency. Fiber optic, microwave and satellite networks provide redundancy, reliability and security from Prudhoe Bay to the Gulf of Mexico. GCI-owned fiber optic cable stretches from the North Slope through the state’s Interior region and south to Washington state and Oregon. Combined with terrestrial communications, such as microwave links and satellite links, it ensures redundancy and critical reliable communications. GCI Industrial Telecom has operations centers in Anchorage, Prudhoe Bay and Houston, Texas, serving industry clients across the country. “Right now, there are folks in Texas who, because they trust GCI Telecom reliability, are able to control drill bits at remote sites in Alaska through our networks,” Johnson says. Even the operations centers have back-ups. Anchorage is the

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www.akbizmag.com • Alaska Business Monthly • February 2013


back-up operations center for Houston. According to GCI, the centers are operational 24 hours a day to support client needs. That reliability also equates to dollars--and jobs--here in Alaska where down time at remote sites can cost more than a million dollars a day. Because GCI’s partner/customers include BP, Exxon Mobil, Conoco Phillips, the State of Alaska, the U.S. Defense Department and the U.S. Coast Guard among many others, reliability and the ability to reroute communications instantly is critical. Lives, safety, production and millions of dollars are at stake. As a whole, GCI has invested more than $2.4 billion in Alaska communications in the past 30 years, and plans to spend $555 million in Alaska over the next three years. Although a precise number for how much GCI Industrial Telecom will spend isn’t available, it is safe to say that it will be part of every new exploration, providing the nextdoor quality of communications other companies need to accomplish their exploration and drilling missions.

projects.” The members of the Industrial Telecom team take pride in themselves, their customers and contractors when that mission is accomplished. The Internet that people use every day is a physical thing, not a concept: There’s a physical world that supports what many of us see and take for granted as cable television, high-speed electronic mail and Internet service. Part of that physical world for much of the business side of Alaska includes the telecommunications infrastructure that GCI Industrial Telecom is a part of. Right now, success appears to be theirs,

as the dedicated GCI Industrial Telecom team is meeting their division’s guiding goals—its mission statement. “In our business, trust is not given— it is earned,” Johnson says. “We work hard to continue to build our team with a focus on our mission, ‘best of class’ employees, and continued safe performance. By accomplishing those goals, we earn the trust of our clients and bring value to our projects.” R Journalist Ed Arthur writes from Anchorage.

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Solid Safety Record

“We’re expecting a very busy year in 2013,” Johnson says, adding: “While we’re on the subject of success, we’re working hard to keep our safety record solid. For having only 100 to 120 employees, reaching more than 1.5 million accident-free hours is a very big deal. We’re proud of it. Very proud.” That sentiment is echoed by a written comment from Doig: “Safety is a critical part of our industrial business. This achievement is something we are very proud of as a team. It took a total team effort to get here, and we’re not done yet!” When a businessperson calls a partner in Barrow or makes a successful sales pitch to someone in Prudhoe Bay, it is likely that the routes and connections taken to accomplish that will probably include the work of the GCI Industrial Telecom team. The GCI Telecom mission statement sums it up: “GCI Industrial Telecom provides customer-driven and safetyfocused communication solutions for operations in the oil, gas and mining industries; leveraging proven, safe and cost-effective practices that support profitable results for our customer’s

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www.akbizmag.com • Alaska Business Monthly • February 2013

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oil & gAs

Doyon Limited Pioneers Frontier Basins Map: Alaska Department of Natural Resources

Middle Earth pushes oil and gas exploration in Alaska’s quiet corners BY ZAZ HOLLANDER

T

he state’s latest oil and gas exploration incentive program, dubbed Frontier Basins, is also known as Middle Earth. Set aside fantastical images of J.R.R. Tolkien’s world of hobbits and elves. This Middle Earth earned the name for its general location between existing incentive programs for oil and gas production on the North Slope and Cook Inlet—and state officials and potential oil and gas producers hope this Middle Earth is very real. The Frontier Basins/Middle Earth program, created by legislation dur-

■ 46

ing the last session in Juneau, provides major incentives for companies drilling exploratory oil or gas wells or obtaining seismic data in six areas. The state will pay up to 80 percent or $25 million in exploration costs and 75 percent or $7.5 million of seismic costs for qualifying work. Any production that results gets a tax break. In return, the state gets access to seismic data otherwise kept confidential. The statute limited eligibility to sedimentary basins in the state’s less-explored and hard-to-reach regions: the Kotzebue and Selawik Basins; Nenana

and Yukon Flats; Emmonak; Glennallen and Copper River area; and the Alaska Peninsula near Egegik and Port Moller. State officials and lawmakers want more seismic information and exploration in “frontier” plays otherwise too risky and expensive to work. But they also hope to provide new energy sources for Fairbanks and rural communities throughout the state. “Around the state there’s all kinds of need for local-use energy,” says Paul Decker, a petroleum geologist with the Alaska Division of Oil & Gas and man-

www.akbizmag.com • Alaska Business Monthly • February 2013


‘A Game-Changer’

“Really, without the state participation, we wouldn’t be pursuing The Frontier Basins program was created by legislation last session. Rep. Steve these projects as aggressively as we are.” —Jim Mery, Vice President for Lands and Natural Resources, Doyon

ager of the division’s resource evaluation section. “Let’s find people willing to explore and take some of the risk out of this exploration.”

Public Player

Doyon Limited, the Fairbanks-based Native regional corporation, is the only company so far to publicly announce planned seismic and exploration activity under the new program. The company plans to work in the Nenana Basin and Yukon Flats areas. Doyon otherwise wouldn’t be interested in seeking new oil and gas plays in the areas, says Jim Mery, Doyon’s vice president for lands and natural resources. “They’re very, very risky financially. They’re high-risk propositions,” Mery says. “Really, without the state participation, we wouldn’t be pursuing these projects as aggressively as we are.” Doyon is currently in the process of permitting a 12,000-foot exploratory well for next summer about 10 miles from the road system in Nenana. That well qualifies for the 80 percent credit. The corporation is starting work on a seven-mile road to access the drill site. Doyon is also conducting a seismic program north of Stevens Village, which also has qualified for the 75 percent credit. Local geology in the areas is promising, Mery says. Doyon—with former partners Arctic Slope Regional Corp., Usibelli Energy, Cedar Creek Oil and Gas, and Rampart Energy Co.—already drilled a well on the other side of the long, narrow Nenana Basin about six miles east of the exploratory well Doyon plans to drill under the Frontier Basins program. That well wasn’t economic, but it did reveal a rich source rock—a geologic layer that produces hydrocarbons at conditions where the oil and gas can be retrieved. “Based on seismic information, we know a lot of source rock should be buried deeper where hydrocarbons would be expelled from that rock,” Mery says. “That’s a significant motivating factor for us.” Doyon originally entered the Nenana Basin seeking natural gas, but

now considers it an oil and gas play. The corporation still expects to find gas, but it’s the oil prospects that really motivated Doyon’s involvement, Mery says. “We still expect to find gas and do something very productive with it in the Interior, but the oil possibilities have really helped drive our decisionmaking forward,” he says.

Thompson, R-Fairbanks, sponsored the original bill, House Bill 276, which was ultimately folded into a larger tax incentive bill, Senate Bill 23. Thompson’s interest grew out of the proximity of Nenana Basin—the largest area in the incentive program, where Doyon is a major landowner—to Fairbanks. The idea for the incentives arose from Cook Inlet credits initiated by former state Sen. Tom Wagoner of Kenai. Wagoner approached Doyon early

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www.akbizmag.com • Alaska Business Monthly • February 2013

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“If we had an energy supply, whether it’s oil or gas, located this close to Fairbanks, it’s a game-changer.” —Jane Pierson, Rep. Steve Thompson, R-Fairbanks, chief of staff

on, Thompson got involved, and Doyon worked with legislators to get the legislation passed, Mery says. Thompson’s office also worked with Kotzebue’s Rep. Reggie Joule, says Jane Pierson, Thompson’s chief of staff. Subsequent talks with the state Department of Natural Resources led to the addition of the bill’s requirement that companies release seismic data after a two-year period, she says. Cook Inlet incentives come with a provision where producers pay back the state once they commercialize wells, Pierson says. That provision did not get included in Thompson’s bill. “This is more wildcatting. Really, it’s a wildcat bill,” she says. “The idea is the state gets the information too. That was the trade-off.” The pluses, as far as Thompson is concerned, are that state incentives should help companies snare investors and maybe also find new energy sources. “If we had an energy supply, whether it’s oil or gas, located this close to Fairbanks, it’s a game-changer,” Pierson says. “If Kotzebue finds they can commercialize for their use, it’s a game-changer. Alaska’s pretty much an island. The more self-sufficient you can be, the better off you are.”

How It Works

Doyon, and any other companies interested in taking advantage of the Frontier Basins incentives, must first pre-qualify with the Department of Natural Resources Commissioner’s office. Among the considerations: well location and proximity to community in need of local energy; proximity of existing infrastructure to get any oil or gas to market; an operator’s experience and safety record; cost schedule projections; and whether the planned well is designed to take full advantage of the oil or gas potential of the prospect or reach at least 12,000 feet down—either way, getting to the level of economic hydrocarbon reservoirs. “The state’s not interested in paying the cost for a well ■ 48

www.akbizmag.com • Alaska Business Monthly • February 2013


down to 1,500 feet. That hardly tells you more than a water well would,” the Oil & Gas Division’s Decker says. “If you’re going to spend this kind of money, back this kind of exploration, you’re going to want to extract some meaningful information about these basins so we can understand the resources better.” The Frontier Basins/Middle Earth program provides 80 percent of the cost of total exploration expenditures or $25 million, whichever is less. It limits that to four wells within the six areas and no more than two wells in any one area. A well must be more than three miles from a pre-existing well to make sure the program encourages new exploration rather than subsidizing existing operations. “This is very generous to get them through the highest risk part, which is always with the chance you drill a well and find nothing,” Decker says. Companies doing seismic analysis get compensated by the state for 75 percent of total costs or $7.5 million. Seismic work is limited to four projects, with one in each of the six areas. Companies conducting exploration get a 4 percent tax rate for any new production that results, for seven years. Until January, the oil tax rate for Middle Earth was the same as the rate on the North Slope, according to Destin Greeley, with the state tax division. Under the new incentive, the tax cap is 4 percent on gross. The old tax was based off a net amount. Those minor differences add up quickly, officials say. Potential producer Doyon says it’s the pairing of state incentives with future tax breaks that make the program so appealing.

for public release within two years of getting the credit. Credits apply to work after June 2012 and before 2016. That’s OK with Doyon. “If the state is going to fund 80 percent of the well, they ought to be able to get the data and do with it as they choose,” Mery says. The data requirement gives the state another public benefit from the program, Decker says. The two-year delay on seismic data gives explorers the right to operate without any competition knowing what they’re up to. When it’s past, Alaska—

and Alaskans—gets information that can add critical geological and geophysical data and help draw additional activity in energy-starved regions. “We get information and the right to make seismic data public to encourage follow-on exploration if the initial explorer throws in the towel,” Decker says, adding that the we means “state government and other interested companies, but also local citizens in need of fuel.” R Zaz Hollander is a journalist living in Palmer.

Shhhh ...

Other companies besides Doyon may be talking with the state about taking advantage of the Frontier Basins incentives, but officials can’t say. Confidentiality constraints bar the state from releasing any information about exploration or seismic activity. As of December 2012, DNR had heard from several different companies about four different areas. The new law, however, requires the state to release all information about the companies involved and what they’re finding during exploration. All data from drilling and seismic work must be turned over to the state

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www.akbizmag.com • Alaska Business Monthly A L • February 2013 A S K A 155°W

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12 24 36 48 NPR-A Boundary Miles Native Selected NPR-A Boundary 0 6 12 24 36 48 No warranty is made by the Bureau of Land Management Miles as to the accuracy, reliability, or completeness of these No warranty is made by the Bureau of Land Management NPR-A Boundary data for individual use or aggregate use with other data, as to the accuracy, reliability, or completeness of these or for purposes not intended by BLM. Spatial information data use orMap aggregate use Standards. with other This data, may for not individual meet National Accuracy or for purposes notbe intended by without BLM. Spatial information information may updated notification. For may notland meet National Map Accuracy Standards.Survey This official status information refer to Cadastral 0 6 12 24 36 48 information be updated For Title Plats andwithout land notification. status case-files. plats, Mastermay Miles Miles official land status information referEqual to Cadastral Projection: Albers Conic Area Survey No is by the of Land Management 0 warranty 6 12 24 Bureau 48 Title Plats and land status case-files. plats, Master No warranty is made made by the Bureau of36 Land Management referencing NAD83 Miles as to theProjection: accuracy, reliability, or completeness these Albers Conic Equal Area of as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, referencing NAD83 data for individual use withManagement other data, No warranty is made byor theaggregate Bureau ofuse Land or for purposes intended by BLM. Spatial information 6 accuracy, 12not intended 24 by 36 or0 for purposes BLM. Spatial information as to not the reliability, or completeness of48these may meet not National Map Accuracy Standards. This Miles may for not individual meet National Accuracy Standards. data useupdated orMap aggregate usenotification. with other This data, information may be without For No warranty is made by the Bureau of Land Management official land status information refer to Cadastral Survey information may be updated without notification. For or for purposes not intended by BLM. Spatial information Title Plats and land status case-files. plats, Master as to the accuracy, reliability, or completeness of these official status information refer to Cadastral may notland meet National Map Accuracy Standards.Survey This Projection: Albers Conic Equal Area data individual orManagement aggregate usenotification. with -other data, Title Plats andwithout land status case-files. plats,forMaster information may beuseupdated For Bureau of Land Alaska referencing NAD83 Projection: Albers by Conic Area or for purposes not intended BLM. information official land status information referEqual toSpatial Cadastral Survey Bureau of National Land Management - case-files. Alaska may meet Mapand Accuracy Standards. This referencing NAD83 Title Plats land status plats, not Master Projection: Conic Equal Area information may beAlbers updated without notification. For official land statusreferencing information NAD83 refer to Cadastral Survey plats, Master Title Plats and land status case-files. Projection: Albers Conic Equal Area Bureau of Land Management - Alaska referencing NAD83

August 13, 2012 August 13, 2012

13, 2012- Alaska Bureau August of Land Management

Map: U.S. Department of the Interior, Bureau of Land Management

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Four rigs at work, besides those drilling production wells in the producing fields, is not a bad season. However, many feel there should be far more exploration activity on the North Slope given the high geologic potential of the region, the high level of crude oil prices, and particularly the generous state exploration incentives that can pay as much as 50 percent to 70 percent of the cost of a well. gas production tax, which basically takes most of the profit if an explorer is lucky enough to make a find. The state’s high tax rate wouldn’t be so bad if there were enormously profitable giant oilfields on the North Slope waiting to be discovered, but there aren’t. The outlook is instead for discoveries that are modest in size, as acknowledged by explorers like Repsol and Brooks Range Petroleum, although there is always hope for a larger find.

Drilling Factors

When the modest expectation is combined with the high state tax rate—and with the North Slope’s notorious high costs, particularly for remote wells where temporary ice roads and ice pads are needed—there’s no wonder few companies are looking for oil on the slope.

The state’s exploration incentives are only one factor a company weighs when considering exploration. Most important is the resource potential and whether lands with potential are available. Even though the prospects are for only modest discoveries in the central North Slope area there is a good possibility that a number of discoveries can be made. If enough of these are made in a reasonably compact area that can be served by an extension of pipelines and road infrastructure, a significant amount of oil production could occur. The federal government has made lands off-limits to drilling in two places where the prospects for oil finds are actually very inviting: the coastal plain of the Arctic National Wildlife Refuge in the east North Slope and coastal

areas of the northwest National Petroleum Reserve-Alaska in the west. On ANWR, where some geologists believe giant fields could be discovered, Alaskans have worked for years to open the coastal plain of the refuge. Congressional approval is required for this, but there has been no luck in getting it. Concerning NPR–A, in December 2012 the Department of the Interior finalized its long-range land management plan for the reserve that effectively put the coastal areas, considered to offer the best chances for significant discoveries, into restricted areas. To offset these challenges, the industry acknowledges, the State of Alaska has done a good job of making lands available for exploration on state lands in the central slope area, including the state-owned submerged lands offshore

Where the road ends…

Our Work Begins

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www.akbizmag.com • Alaska Business Monthly • February 2013

51 ■


Having the state and federal NPR–A lands made available on a regular, dependable basis has greatly helped the industry in planning its exploration; the only hitch in the case of the national petroleum reserve is that the best lands are taken off the table. to the three-mile limit. The Alaska Division of Oil and Gas annual “areawide” lease sales are typically held in the late fall, and make all unleased state lands available for leasing. In recent years the U.S. Bureau of Land Management has matched the state’s initiative with its own areawide offerings of unleased federal lands in NPR–A, and usually on the same day as the state sale. Having the state and federal NPR–A lands made available on a regular, dependable basis has greatly helped the industry in planning its exploration; the only hitch in the case of the national petroleum reserve is that the best lands are taken off the table.

Test Wells

As for this winter, Repsol USA was to be drilling three test wells in January west of the producing Prudhoe Bay and Kuparuk fields with rigs mobilized as soon as snow and ice roads to the remote sites were completed, according to Bill Hardham, the company’s Alaska manager. Separately, the other test drilling program under way by Linc Energy, an Australian independent, is at Umiat, a remote site in the southeast corner of the NPR-A. The Umiat drilling is to evaluate a small oil deposit discovered but never developed in the 1950s by federal agencies exploring the reserve, Linc Energy has said in briefings. Umiat involves complex logistics, including a snow and ice road about 90 miles in length. “We’re in full mobilization now. The ice road is complete and we’re moving the rig to Umiat now,” says Paul Ludwig, spokesman for the company. The known oil deposit at Umiat found years ago by the federal government is very shallow. Linc Energy and the previous owners of federal leases at Umiat ■ 52

believe the shallow oil can be tapped with horizontal wells. More importantly, they believe there is more oil in reservoir intervals that are deeper and that were not tested in the earlier old wells. The purpose of this winter’s drilling is to further delineate the known shallow Umiat oil accumulation and to test for oil at deeper depths. Two other independents, both Alaska-based, also hope to drill test wells this winter depending on their ability to secure suitable rigs. Brooks Range Petroleum hopes to test a prospect west of the Kuparuk River field near another well it drilled two years ago. The company had a rig lined up to test its prospect but the unit proved too heavy to move across a frozen river crossing. The company is now seeking a lighter-weight rig, but still hopes to drill the well this winter, says Jack Laasch, external affairs vice president for Brooks Range. Great Bear Petroleum, the second company, plans further drilling on two wells drilled last fall to test potential shale oil targets south of Prudhoe Bay. Great Bear has drilled vertical wells at both sites to extract shale core samples but needs to drill horizontal extensions to do fracturing and oil production tests, according to Pat Galvin, a com-

about cost. The North Slope is an expensive place to operate and shale oil production would require many wells, production pads and surface facilities and utilities. The shale oil wells tend to produce at lower volumes, so once technical issues are resolved the next question is whether the oil can be produced profitably given the high costs.

Repsol’s Plan

Repsol’s manager, Bill Hardham, says the company’s plan for this winter is to complete a five-well program the company began last year to evaluate lease rights it acquired in a buy-in with Armstrong Oil and Gas, a Denver independent. Repsol had planned to drill three wells last winter but drilling on one prospect, on the Colville River delta, was interrupted when drilling crews hit a shallow gas pocket that caused a gas blowout. There were no injuries or serious damage, but the well could not be completed, Hardham says. The company will return to that prospect again this winter although the surface location of the rig will be moved slightly and the well is renamed, Hardham says. Repsol’s exploration in Alaska is being watched closely because it is the first new major company in years to enter the North Slope with exploration pro-

Repsol’s exploration in Alaska is being watched closely because it is the first new major company in years to enter the North Slope with exploration programs. pany vice president. Great Bear believes the North Slope shale rock formations, which are the source rocks for the large oil fields now producing, still hold a lot of oil. If that oil can be produced through hydraulic fracturing and the use of horizontal production wells, shale oil might become important for the North Slope just as it has in North Dakota and Texas. However, it’s still a “science test,” Great Bear’s president, Ed Duncan, has said in past presentations. Key technical questions need to be answered, mainly the quality of the North Slope shale rock and whether it can be fractured in a way that allows oil to flow to production wells. Beyond that, there are questions

grams. Shell has an aggressive offshore exploration in the federal Outer Continental Shelf but onshore exploration has been at modest levels for several years. Hardham says Repsol is encouraged by exploration results to date but would not give specifics. He acknowledges the prospects being tested are modest in size and not potential giant oil fields. “We are very confident we will find oil. Previous drilling in these areas give us confidence. The question is how well these deposits will produce,” he says. R Mike Bradner is publisher of the Alaska Legislative Digest and is a former legislator and Speaker of the House.

www.akbizmag.com • Alaska Business Monthly • February 2013


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This map was created,10 edited, and published by the 2 8 State of Alaska, Department Resources, 3 7 6 of5Natural 1 04N044E 4 Division of Oil and Gas, and is for informational 04N043E 04N042E purposes only.

Beaufort Sea Apparent High Bidders Donkel/Cade Donkel/Lowe NordAq Energy, Inc. Realeza Del Spear, Map LP Location Samuel Cade

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557 555 03N003E

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02N014W

554

03N004E 21N011W

03N005E 21N010W

03N006E

03N007E

03N008E

02N013W

02N012W

21N012W

0

03N009E

03N010E

03N011E

15

03N012E

03N013E

30

03N014E

03N015E

03N016E

03N017E

03N018E

03N019E

03N020E

03N021E

03N022E

03N023E

60 02N018E 02N019E 02N020E 02N021E 02N022E

90 02N023E 02N024E 02N025E

02N011W

02N010W

02N009W

556

02N026E

02N027E

02N028E

02N029E

02N030E

02N031E

02N032E

02N033E

02N034E

02N035E

02N008W

552

02N007W

02N006W

553 550 549 551 547 20N010W 548 544 19N011W 20N003W 20N002W 20N001W

01N033E

01N034E

01N035E

01N036E

01N037E

01N038E

01N039E

01N040E

W

154°0'0"W 71°0'0"N

20N017W

01S042E

01S043E

20N016W

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

71°0'0"N

03N013W

561

03N012W

560

03N024E

03N025E

Arctic National Wildlife Refuge

02N036E

02N037E

02N038E

02N039E

02N040E

The state of Alaska makes no expressed 03N045E or implied 03N044E 03N043E warranties of merchantability warranties (including 03N042E and fitness) with respect to the character, function, or capabilities of this product or its appropriateness 02N045E 02N044E for any user’s purposes. In no event will the State 02N043E 02N042E of Alaska be liable for any incidental, indirect, 02N041E special, consequential or other damages suffered by the user or any other person or entity whether 01N045E 01N044E from use of the product, 01N043E any failure thereof or 01N042E 01N041E otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the 01S045E product. 01S044E 142°0'0"W

$

140°0'0"W

02N021E

02N022E

150°0'0"W

Ca

ktok Sagavanir River

nning Rive r

0

20

W

Repsol E & P USA, Inc.

0

15

30

20N015W

152°0'0"W

20N014W

20N013W

150°0'0"W

148°0'0"W

146°0'0"W

144°0'0"W

20N012W

20N011W

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

was created, edited, and published by the aska, Department of Natural Resources, Oil and Gas, and is for informational nly.

19N017W

19N016W

19N015W

19N014W

19N013W

19N012W

543 546 535 538 525

of Alaska makes no expressed or implied (including warranties of merchantability ) with respect to the character, function, ies of this product or its appropriateness r’s purposes. In no event will the State e liable for any incidental, indirect, nsequential or other damages suffered or any other person or entity whether the product, any failure thereof or and in no event will the State of Alaska’s ou or anyone else exceed the fee for the

18N017W

18N016W

Admiralty Bay 18N015W 17N015W

19N010W

540

545 18N013W

19N009W

541

19N008W

19N007W

542

19N006W

19N005W

19N004W

18N014W

18N012W

536 18N011W

539 528 529 518 519 17N007W

19N003W

19N002W

19N001W

Leased Tracts Available Tracts

Native Land ASRC Settlement Boundary ANWR 1002 Area

18N010W

537 17N017W 17N016W 17N014W 17N013W

532 531 Smith 533 534 Bay 18N009W

527 530

18N008W

512 517 516 515 514 513

511 510 509 18N005W

508 507 506 18N004W

505 504 503

502

18N001W

17N012W

526 17N011W

521 523

520 522 524

501

Map Location

17N010W

0

20 17N006W 17N005W

40 17N004W 17N003W 17N002W

500

499 496 497 495 498 489 492 478 481 472

Adjacent to Federal Lands (Available) 80 17N001E

120

160 Kilometers

16N017W

17N001W

Deferred Federal Land

Alaska Seaward Boundary

Beaufort Sea

16N016W

16N015W

16N014W

16N013W

16N012W

16N011W

16N010W

16N009W

16N008W

16N007W

16N006W

16N005W

16N004W

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid. 15N015W 14N017W 14N016W 14N015W

15N017W

16N003W

493 494

490 491 479 480 473

16N001W

486 16N001E

15N016W

15N014W

15N013W

15N012W

15N011W

0 15N010W 15N009W

15 15N008W 15N007W 15N006W

30 15N005W

60487 475 476 471

488 474 477 470 469 468

90 15N002E

120 Miles 15N007E 15N008E 15N009E 15N010E 15N011E 15N012E

483 15N004W 15N003W

482 485

15N002W

14N014W

14N013W

14N012W

14N011W

14N010W

14N009W

14N008W

Teshekpuk Lake 14N007W 13N007W

484

15N001W

15N001E

Harrison Bay 464 467 460 463 452 14N003E 14N004E 14N005E 14N006E

14N006W

14N005W

14N004W

13N017W

14N003W

14N002W

465 466

14N001W

13N016W

14N001E

14N002E

13N015W

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13N012W

13N011W

13N010W

13N009W

13N008W

13N006W

13N005W

13N004W

12N017W

13N003W

13N002W

461 13N001W

12N016W

12N015W

457 459

456 458

13N002E

12N014W

12N013W

462

12N012W

12N011W

12N010W

12N009W

12N008W

12N007W

12N006W

12N005W

12N004W

11N017W

12N003W

12N002W

12N001W

11N016W

12N001E

12N002E

11N015W

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11N012W

11N011W

11N010W

11N009W

11N008W

11N007W

11N006W

11N005W

11N004W

10N017W

11N003W

11N002W

11N001W

10N016W

11N001E

11N002E

10N013W

10N012W

10N011W

10N025E

10N010W

10N009W

10N008W

10N007W

10N006W

10N005W

78

10N004W

09N017W

10N003W

10N002W

10N001W

09N016W

10N001E

10N002E

77

76 75 74 73 09N026E 09N027E

09N015W

09N014W

09N013W

09N012W

09N011W

08N017W

70°0'0"N

08N016W

08N015W

08N014W

08N013W

08N012W

elin e

08N011W

National Petroleum Reserve- Alaska 09N010W 09N009W 09N008W 09N007W 08N010W 08N009W 08N008W 08N007W 07N010W 07N009W 07N008W 07N007W

09N006W

09N005W

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09N001E

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09N003E

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09N005E

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09N007E

09N008E

09N009E

09N010E

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09N017E

09N018E

09N019E

09N020E

09N021E

09N022E

09N023E

09N024E

09N025E

72

Camden Bay 09N028E 09N029E

09N030E

09N031E

48 53 52 51 50

47 49

46

45

44

43

42

09N033E

! 09N034E Kaktovik

09N035E

32 30

31 29 28 08N039E

71 69

70 68 64 66

63 65 67 62 57 59 61 58 60 07N029E

08N006W

08N005W

08N004W

a Pip

07N017W

08N003W

08N002W

08N001W

08N001E

07N016W

08N002E

08N003E

lle Colvi er Riv

Dalton Highway 08N018E 08N019E 08N020E 08N021E 08N022E 08N023E

08N030E

08N031E

08N032E

08N033E

08N034E

08N035E

08N036E

08N037E

27

26 24 23 25 21 20 07N040E 07N041E

08N024E

08N025E

08N026E

08N027E

54 56

55 07N033E 07N034E 07N035E

07N036E

07N037E

07N038E

07N039E

22 19 06N040E

Beaufort Lagoon 18 17 06N041E 06N042E

08N004E

08N005E

08N006E

08N007E

08N008E

08N009E

08N010E

08N011E

08N012E

08N013E

08N014E

08N015E

08N016E

08N017E

07N030E

07N031E

07N032E

-Alask

07N013W

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07N011W

07N006W

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07N004W

06N017W

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07N006E

07N007E

Trans

07N003W

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06N021E

06N022E

06N023E

06N024E

06N025E

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06N027E

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06N029E

06N030E

1002 Area 06N031E 06N032E 05N030E 05N031E 05N032E

06N033E

06N034E

06N035E

06N036E

12 05N040E 05N041E

11 13 9

05N042E

05N043E

05N044E

05N033E

05N034E

05N035E

05N036E

05N037E

05N038E

05N039E

10 8 7 6 04N044E

5

3

2 4 1

05N015W

05N014W

05N013W

05N012W

05N011W

05N010W

05N009W

05N008W

05N007W

05N006W

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05N001E

05N002E

04N016W

05N003E

05N004E

05N005E

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05N007E

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05N009E

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05N029E

04N015W

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04N013W

04N012W

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04N010W

04N009W

04N008W

04N007W

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03N017W

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04N001W

04N001E

03N016W

04N002E

04N003E

04N004E

04N005E

04N006E

04N007E

04N008E

04N009E

04N010E

04N011E

04N012E

04N013E

04N014E

04N015E

04N016E

04N017E

04N018E

04N019E

04N020E

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04N022E

04N023E

04N024E

04N025E

04N026E

04N027E

04N028E

04N029E

04N030E

04N031E

04N032E

04N033E

04N034E

04N035E

04N036E

04N037E

04N038E

04N039E

04N040E

04N041E

04N042E

04N043E

03N015W

03N014W

03N013W

03N012W

03N011W

03N010W

03N009W

03N008W

03N007W

03N006W

03N005W

03N004W

03N003W

02N017W

03N002W

03N001W

03N001E

02N016W

03N002E

03N003E

03N004E

03N005E

03N006E

03N007E

03N008E

03N009E

03N010E

03N011E

03N012E

03N013E

03N014E

03N015E

03N016E

03N017E

03N018E

03N019E

03N020E

03N021E

03N022E

03N023E

03N024E

03N025E

03N026E

03N027E

03N028E

02N015W

02N014W

02N013W

02N012W

02N011W

02N010W

02N009W

02N008W

02N007W

02N006W

02N018E

02N019E

02N020E

02N021E

02N022E

02N023E

02N024E

02N025E

02N026E

02N027E

02N028E

Arctic National Wildlife Refuge 03N029E 02N029E 02N030E 02N031E 02N032E

03N030E

03N031E

03N032E

03N033E

03N034E

03N035E

03N036E

03N037E

03N038E

03N039E

03N040E

03N041E

03N042E

03N043E

03N044E

03N045E

02N033E

02N034E

02N035E

02N036E

02N037E

02N038E

02N039E

02N040E

02N041E

02N042E

02N043E

02N044E

02N045E

01N033E

01N034E

01N035E

01N036E

01N037E

01N038E

01N039E

01N040E

01N041E

01N042E

01N043E

01N044E

01N045E

01S042E

01S043E

01S044E

01S045E

156°0'0"W

154°0'0"W

152°0'0"W

150°0'0"W

148°0'0"W

146°0'0"W

144°0'0"W

142°0'0"W

State of Alaska Department of Natural Resources Division of Oil and Gas This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only. The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether U014N007W from use of the product, any failure thereof or U014N006W U014N005W otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product. 153°0'0"W 151°30'0"W

North Slope Areawide 2012W Lease Sale 0 150°0'0"W 20

Oil and Gas Lease Sale 40 80 148°30'0"W

Leased Tracts Available Tracts Adjacent to Federal Lands (Available) Deferred Federal Land

Native Land ASRC Settlement Boundary ANWR 1002 Area Alaska Seaward Boundary 145°30'0"W

North Slope Regional Tract Map November 7, 2012 Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources Great Bear Petroleum Ventures II, LLC The Federal Bureau of Land Management

DATA SOURCES

U015N004W

U015N003W

U015N002W

U015N001W

Map Location U015N001E

120

160

147°0'0"W

Alaska Canada

07N015W

07N014W

07N026E

07N027E

07N028E

06N037E

06N038E

06N039E

16

15

14

70°0'0"N

10N015W

10N014W

403 385 384 383 362 361 360 346 345 344 332 333 404 14N017E 14N016E 14N015E 14N014E 14N013E 405 388 387 386 365 364 363 349 348 347 336 335 334 322 407 406 253 252 251 227 415 410 409 408 391 390 389 368 367 366 352 351 350 339 338 337 325 324 323 296 278 277 455 454 453 312 427 426 417 416 244 243 242 224 289 288 270 269 268 445 444 443 434 433 341 340 328 327 326 316 315 314 305 304 303 13N019E 432 420 419 418 413 412 411 396 395 394 376 375 374 356 355 354 342 13N018E 22513N017E 291 290 273 272 271 247 246 245 343 331 330 329 319 318 317 308 307 306 292 448 447 446 437 436 435 423 422 421 414 399 398 397 379 378 377 359 358 357 206 205 275 274 250 249 248 226 321 320 311 310 309 295 294 293 276 451 450 449 440 439 438 425 424 402 401 400 382 381 380 234 221 259 235 198 197 196 175 442 12N021E 313 299 298 297 283 282 281 261 260 12N020E 393 392 373 372 441 429 428 201 200 199 178 177 176 12N017E 238 237 262 263 236 264 12N012E 302 301 300 286 285 284 12N011E 12N003E 12N010E 12N009E 12N005E 12N008E 12N006E 12N007E 204 203 202 181 180 179 431 430 153 154 155 222 223 287 267 266 265 241 240 239 192 191 168 167 166 146 145 144 126 11N024E 11N023E 214 213 212 11N022E 279 256 255 254 230 229 228 193 171 170 169 149 148 147 128 127 11N018E 232 231 217 216 215 194 280 258 257 11N013E 129 115 114 113 103 102 11N012E 11N011E 11N003E 11N010E 11N004E 11N009E 11N005E 11N006E 11N007E 11N008E 152 151 150 131 130 174 173 172 233 220 219 218 195 105 104 95 94 93 86 85 84 State/ASRC 119 118 117 106 158 157 137 136 135 Settlement Boundary 96 89 88 87 208 207 184 183 182 159 108 107 98 97 122 121 120 109 161 160 140 139 138 92 91 90 Nuiqsut 210 209 187 186 185 162 10N016E 10N015E 110 101 100 99 10N014E 10N013E 10N012E 124 123 112 111 10N011E 10N003E 10N010E 10N004E 10N009E ! 10N005E 10N006E 10N008E 10N007E 79 163 143 142 141 125 211 190 189 188 165 164 ! Deadhorse 83 82 81 80 156 134 133 132 116

371 370 369

353

Prudhoe Bay

11N025E

11N026E 10N033E 10N034E

10N035E

10N036E

10N032E

10N026E

41

40

39

38

37

36

35

34 09N036E 33

09N037E

09N038E

Ca

ktok Sagavanir River

Harrison Bay U014N004W U014N003W U014N002W U014N001W U014N001E

U015N002E

U015N007E

U015N008E

U015N009E

U015N010E

U015N011E

U015N012E

Kilometers

nning Rive r

U014N003E U014N004E *Bidders are solely responsible for determining the availability of Cape Halkett acreage prior to submitting a bid. U013N004W

70°30'0"N

U014N002E

U014N005E

U014N006E 0

15 U014N007E

U014N008E

30 U014N009E

U014N010E

U014N011E

60 U014N012E

U014N013E

U014N014E

90 U014N015E

U014N016E

U014N017E

120 Miles

70 & 148, LLC AVCG, LLC Bachner/Forsgren U013N019E

U013N007W

U013N006W

U013N005W

U013N003W

U013N002W

U013N001W

U013N001E

U013N002E

U013N006E U013N003E U013N004E U013N005E

1210 1209

U013N007E

U013N008E

U013N009E

1218 1217

U013N010E

Simpson Lagoon U013N011E U013N012E U013N013E U013N014E U013N015E U013N016E U013N017E

Paul M. Basinski Arctic Slope Regional Corporation of different sources.

The Federal Minerals Management Service

Discrepancies in boundary alignments are the Repsol E & P USA, Inc. result of merging multiple data sets from a number

U013N018E

Conoco/BPXP/Chevron/ExxonMobilAK ConocoPhillips Alaska, Inc.

Samuel Cade

U012N007W

1208 1213 1212 1211 U012N006W U012N005W U012N004W U012N003W U012N002W U012N001W U012N001E

1216 1215 1214 1221 1220 1219 1224 1223 1222 1225 U012N008E U012N007E

1132 1138 1137 1136 1147 1146 1145 1154 U012N002E U012N003E U012N004E U012N005E U012N006E

Savant Alaska, LLC Woodstone Resources, LLC

1161 1170 1169 1168 1179 1178 1177 1188 1187 1186 1196 1195 U012N009E

U011N007W

U011N006W

U011N005W

U012N010E 11341135 1144 1143 1142 1153 1152 1151 1160 1159 1158 1167 1166 1165 1176 1175 1174 1185 1184 1183 1194 1193 1192 1202 1201 1200 1205 1204 1203 1207 1206 U011N004W U011N003W U011N002W U011N001W U011N001E U011N004E

U012N011E 1133 1141 1140 1139 1150 1149 1148 1157 1156 1155 1164 1163 1162 1173 1172 1171 1182 1181 1180 1191 1190 1189 1199 1198 1197

U012N012E U012N013E U012N014E

U011N002E

U011N003E

U010N004W

U010N003W

U010N002W

U010N001W

U010N001E

U010N002E

984 987 990

983 986

982 985 988

993 996

992 995 998

991 1002 1001 1000 1011 1010 1009 1020 1019 1018 1027 994 1005 1004 1003 1014 1013 1012 1023 1022 1021 1028 U010N017E Deadhorse ! 997 1008 1007 1006 1017 1016 1015 1026 1025 1024 1030 1029 ! ! ! !

U010N003E

U010N012E

U010N014E !

U009N007W

927 926 U009N006W U009N005W U009N004W U009N003W U009N002W U009N001W

U010N005E

925

936

U010N006E

935

934

945

944

U009N001E

U009N002E

U009N003E

U009N004E le

lv Co

il 747 755 754 753 764 763 762 773 772 771 782 880 879 781 780 791 790 789 800 799 798 809 808 807 818 817 816 827 826 825 836 835 834 845 844 843 854 853 852 863 862 861 872 871 870 !

er 752 751 750 761 760 759 770 769 768 779 778 777 867 877 876 788 787 786 797 796 795 806 805 804 815 814 813 824 823 822 833 832 831 842 841 840 851 850 849 860 859 858 869 868 Riv U009N019E !

943

954

953

952

963

962

961

972

U010N010E

971

970

981

980

979

989

999

U010N013E

U009N005E

U009N006E

U009N007E

U009N009E

U009N010E

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U009N013E

U009N014E ! !

749 748 613 B D B D B D B D B D B D B D A C A C A C A C

U008N007W 70°0'0"N

758 618 B

757 A C

756 B D B D B D B D B D B D B D B D A C A C A C A C

767 622 B

766 A C

765 B D B D B D B D B D B D B D B D A C A C A C A C A C A C A C A C A C

776 626 B

775 A C A

774 B D B D B D B D B D B D B D B D A C A C A C A C A C A C A C A C A C A C A C

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615

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617

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616

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619

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621

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625 628

630

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629 632

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634

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633 636

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638 639

B D

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637 640 550

B D B D B D B D B

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642 643 555

B D B

A C A

641 644 554 557 470 473 385 388 B D B D B D B D B D B D B D B D

B D B

A C A C A C A C A C A C A C A C A C A C A C A C A C A C A C A C

646 647

B D B

A C A

645 648 558 561 474 477

B D B D B D B D B D B D B D B D A C A C A C A C A C A C A C A C

A C A C A C

650

B D B

A C A

649 652 562

B D B D B D

655 654 !

653 656 659

664 667

663 666 669

662 665 668 B D B D B D B D B D B D A C

673 676

672 675

671 674 677 A C A

682

681

680 683 686 A C A C A C A

691 694

A C A C A

D

620

623

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A C A C A

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624

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U008N010E B D B D B D B D B

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631

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635 547

B D B

A C A C A C A C

A C A C A C A C A

U008N011E D B D B D B D B C A C A C A C A D B D B D B D B D B D B D

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U008N013E

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685 684 688 A C

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701 704

712

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710 713

721 724 A C

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720

719

730

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729

728 731

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738

737

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670 A C A C A C A C A C A C

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678 B D B

687 B D

697 A C

696 B D B A C A

706 A C

705 B D A C

715 A C

714 B D B A C

723 B D A C

722 594 B D B D B D B D B D B D

733 A C

732 B D B A C

742 603

741

740 746 602

U007N002W

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A C A C A C A C A C A C A C A C A C

527

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563 564

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567 ! !

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566 569

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570 573

575

574

B D B D B D B D B D B D A C

579

578

B D B D B D B D B D B D

583

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587

586

B D B D B D B D B D B D

591

590

B D B D B D B D B D B D

595

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B D B D

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U007N029E

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D B

548 463

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556 471 472 386 387 B D B

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572

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427 A C

B

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A C B D

431 A C

B D

432 A C

B D B D

434 A C

435 B D B D B D B

264

270

266 268

D B

269

274

U004N004E D B D C A C

D

273

278

D B

277

282

C A C A

267

271

272

B

U004N005E B D C A C

U004N006E D B D C A C

U004N007E A C A C

D

281

286 287

D B

285 288

290

289 292

294

D

275

276

279

280

283

B

A C A C A C A C A

U004N008E D C A C A

U004N009E B D B D C A C A C A C A

U004N010E

D B

293 296 206

298 299 211

297 300 210 213 124 127 37 40

302

301 304 214 217 128 131 41 44

306

B

D B

305 308

B D B D B D B D B D B D B D B D

310

B D

309 312

B D B D B D B D B

314

B D B

313 316

B D B D B D B D B D B D B D B D

318

U003N007W

D B

284 194

U004N011E D B D B C A C A

U004N012E

U004N013E

U004N014E !

D B

317

322

A C

321

A C

326

A C

325

A C

330

A C

329

C

334

333

338

337

342

341

346

345

349 350 U004N024E 262 U003N024E

Arctic National Wildlife Refuge U004N027E U004N028E U004N029E

U005N027E

U005N028E

U005N029E

U005N030E

U005N031E

U004N030E

U004N031E

U004N032E

291

295 207

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D B

303 215 216

D B D B

C A C A

307

A C A C

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311 223 224

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U004N015E D B D C A C A C A C A

C !

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315 227 228

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U004N017E

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U004N019E

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319

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D B D B

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320 230

B D B D B D B D B D B D B D

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B D B D

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A C A

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B D B D

A

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332 242

A

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335

B D B D B

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336

B D B D B D B D B D B D

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U004N021E

U004N022E

U004N023E

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339

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D B D

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340

A

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343

B D B D B

A

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344

A

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347

B D B D

A

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348

U003N005W

U003N004W

U003N003W

U003N002W

U003N001W

179 U003N001E U003N002E

178

183

182

B D

187

B

U003N003E

U003N004E A C A C A C A C A C

180 69°30'0"N

U002N007W

D B

C A C A

D

C A C A C A C A C

D B

U002N006W

D B

C A C A

C A C A C A C A C

D B D B

D B D

C A C A C A C

D B D B

C A C A

D B D B

C A C A

D B D B D B D B

C A C A C A

C A

D B D

C A

C

D B D B

C A

D B D

C A

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D B D B

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C A

D B D B

U002N005W

U002N004W

U002N003W

U002N002W

U002N001W

93 U002N001E U002N002E

A C A

92 95 5 8

97 98 10

B D B

A C A

96 99 9

B D B D B D B

A C

101

B

A C

U002N003E

U002N004E D B D C A C

U002N005E A C A C A C

D

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B D B

A C A C A C A C

105

D

104

B D B

109

D

108 111 21 24

113

94 U001N007W U001N006W U001N005W U001N004W U001N003W U001N002W

C A C

102 14 15

B D B

A C A C A

U002N006E

D B

112 115 25 28

117

116 119 29 32

121

120 123 33 36

125 126 38 39

129 130 42 43

133 134 46 47

132 135 45 48

103 13 16

D

106 18 19

B

U002N007E

D B

C A C

107 17 20

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110 22 23

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U002N008E

U002N009E

U002N010E C A C A C

D B

C A C A

114 26 27

D B D

C A C

118 30 31

D B D B

C A C

122 34 35

B D B D B D

U002N011E D B D B D C A C A C

U002N012E D B D B C A C A

U002N013E

U002N014E A C A C

C

137 138 50 51

C A

136 139 49 52 !

A !

D B D B D B

C A

141 142 54 55

140

C A

145

B D B D

U002N015E D B D C A C

U002N016E

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144 147 57 60

A C

149 150 62 63

A

C

148 151 61 64

C A

153

A C

152

B D B D B D B D

A C

157

B D

A C

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A C

161

B D B

A C

160

A C

165

B D

A C

164

B D B D B D B D

A

C

169

B D

A C

168

A C

173

B D B

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B D B D B D B D

176 U002N024E U002N025E

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B D B D

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154 66 67

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D B D B

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155 65 68

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158 70 71

B D B D

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159 69 72

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U002N021E

U002N022E

U002N023E A C

U002N026E

U002N027E

U002N028E

U002N029E

U002N030E

162 74 75

A

D B D

C

163 73 76

A C

166 78 79

B D B D B

A

C

167 77 80

A C

170 82

B D B D B

A

C

171 81

174 86

A

D B D

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175 85

177 89 A C

U001N001W

U001N001E

U001N002E

2 A C

6 7 B

B D B D

B D B D

A C A C

A C A C

A C A C

A C

A C A

A C A C

A C

A C A C

A C

A C A C

A C A

A C A C

A C A

A C A C

A C A

U001N024E U001N025E B D

U001N003E A C D

U001N004E

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1 U001S007W U001S006W U001S005W U001S004W

3

4

11

B

A C

U001N005E D C

U001N006E B A C D

D

D B

D

12

U001N007E D C

U001N008E B D

A C

U001N009E A C D

U001N010E

U001N011E

C A

A C

U001N012E D C

U001N013E D C

U001N014E A C B D

U001N015E B D A C

U001N016E A C B D

C

C A C

U001N017E B D A C

U001N018E D C

U001N019E B D A C

U001N020E A C B D

U001N021E D C

U001N022E

U001N023E

U001N026E

U001N027E

U001N028E

U001N029E

U001N030E

U001N031E

B D

A C !

83

Umiat ! U001S003W U001S002W U001S001W U001S001E U001S002E U001S003E

D

D

C

84

87

B D

C

88

90

91 U001S028E U001S029E U001S030E U001S031E U001S032E

D

U001S004E

U001S005E

U001S006E

U001S007E

U001S008E

U001S009E

U001S010E

U001S011E

U001S012E

U001S013E

U001S014E ! ! !

U001S015E

U001S016E

U001S017E

U001S018E

U001S019E

U001S020E

U001S021E

U001S022E

U001S023E

U001S024E

U001S025E

U001S026E

U001S027E

U002S007W

U002S006W

U002S005W

U002S004W 151°30'0"W 150°0'0"W !

U002S028E 148°30'0"W 147°0'0"W 145°30'0"W

U002S029E

U002S030E

U002S031E

U002S032E

153°0'0"W

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only. The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

Leased Tracts Available Tracts NS-South (Available) Deferred 90 120 Kilometers

Federal Land Native Land Alaska Seaward Boundary Royalty Boundary

Map Location

0

15

30

60 !

ASRC Settlement Boundary ANWR 1002 Area

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

0

10

20

40 !

60

80 Miles

State of Alaska Department of Natural Resources Division of Oil and Gas 156°0'0"W U003N018W U003N017W U003N016W U003N015W U003N014W U003N013W 154°30'0"W U003N012W U003N011W U003N010W U003N009W 69°30'0"N U002N018W U002N017W U002N016W

North Slope Foothills Areawide 2012 Lease Sale 153°0'0"W U004N003W U003N008W U003N007W U004N002W U004N001W 151°30'0"W U004N001E U004N002E U004N003E U004N004E U004N005E U004N006E U004N007E U004N008E 150°0'0"W U004N009E U004N010E U004N011E U004N012E U004N013E U004N014E 148°30'0"W U004N015E U003N018E U003N019E U003N020E U003N006W U003N005W U003N004W U003N003W U003N002W U003N001W U003N001E U003N002E U003N003E U003N004E U003N005E U003N006E U003N007E U003N008E U003N009E U003N010E U003N011E U003N012E U003N013E U003N014E U003N015E U003N016E U003N017E U002N010W U002N009W U002N008W U002N007W U002N006W U002N005W U002N004W U002N003W U002N002W U002N001W U002N001E U002N002E U002N003E U002N004E U002N005E U002N006E U002N007E U002N008E U002N009E U002N010E U002N011E U002N012E U002N013E U002N014E U002N015E U002N016E U002N017E U002N018E U002N019E U002N020E U001N010W

Oil and Gas Lease Sale ! !

North Slope Foothills Regional Tract Map November 7, 2012 147°0'0"W U003N025E U003N021E U003N022E U003N023E U003N024E

U002N015W

U002N014W

U002N011W

U002N021E

U002N022E

U002N023E

U002N024E

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147°0'0"W

DATA SOURCES

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only. The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

Leased Tracts Available Tracts Federal Land Map Location 0 15 30 60 90 120 Kilometers

Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

Native Land

North Slope Foothills Apparent High Bidder Anadarko Petroleum Corporation

*Bidders are solely responsible for determining the availibility of acreage prior to submitting a bid.

0

10

20

40

60

80 Miles

■ 54

www.akbizmag.com • Alaska Business Monthly • February 2013

68°30'0"N

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www.akbizmag.com • Alaska Business Monthly • February 2013

55 ■


U.S. Coast Guard photo by Petty Officer 3rd Class Jonathan Klingenberg

oil & gAs

Crew members of the mobile drilling unit Kulluk arrive safely at Air Station Kodiak after being airlifted by a Coast Guard MH-60 Jayhawk helicopter crew from the vessel 80 miles southwest of Kodiak, Saturday, Dec. 29, 2012. A total of 18 crew members of the mobile drilling unit were airlifted to safety from the winter storm in the Gulf of Alaska while en route to a Seattle shipyard where the rig was headed for winter maintenance after a successful drilling season in the Arctic.

Alaska OCS Progress Achieving objectives in the Arctic

2

BY MIKE BRADNER

012 was a tumultuous year for Shell in the Arctic. The company suffered some major mishaps and bad luck but also achieved important objectives by successfully starting two offshore exploration wells on its federal Outer Continental Shelf leases off Alaska’s northern coasts. Alaskans are closely watching Shell’s progress because of the huge potential for new oil and gas discoveries in the OCS. Even though production from federally owned offshore areas would not benefit the state treasury, because no state taxes or royalties would be paid, new oil flowing through the Trans Alaska Pipeline System would be hugely beneficial.

■ 56

However, Shell was not able to drill the two wells it started down to hydrocarbon-bearing zones because a specialized spill cleanup barge required to be nearby was not available. It was one of Shell’s bad breaks: The barge was delayed in completion because of the complexity of its systems. Then an undersea containment dome that was part of the system was damaged in testing. Given that, the barge could not make it to the Arctic in time. Shell’s achievements were still notable, though, in that the company was able to finally surmount years of lawsuits and permit challenges to mobilize and get its small drill fleet to the Arctic,

and then to safely conduct drilling. The curve balls from Lady Luck continued when a large ice floe came bearing down on Shell’s drillship Noble Discover just after drilling had finally started. The ship pulled off the well and away from the slowly moving flow, which cost Shell a week before work could resume. There was a silver lining, though, in that the exercise demonstrated the flexibility of the drill fleet in dealing with Arctic hazards.

Fierce Winter Storm

Despite these achievements, the year ended on a sour note for Shell. A fierce winter storm hit the second of its two

www.akbizmag.com • Alaska Business Monthly • February 2013


Alaskans are closely watching Shell’s progress because of the huge potential for new oil and gas discoveries in the OCS. Even though production from federally owned offshore areas would not benefit the state treasury, because no state taxes or royalties would be paid, new oil flowing through the Trans Alaska Pipeline System would be hugely beneficial. Arctic drill vessels, the Kulluk, while that rig was being towed across the Gulf of Alaska to the Pacific Northwest to undergo winter maintenance. Cut loose from its tow lines, the Kulluk grounded on a small island near the south shore of Kodiak. It was a tough way to end the year. On the last day of 2012, the rig was separated from tow lines connecting it to tugs and washed ashore on Sitkalidak Island off Kodiak’s southern shore. The tug and drill crews were fighting ferocious weather, with seas at 30 feet and more and high winds. The lines from the tow vessel to the rig had first separated a few days earlier and were reattached, and then separated again several times, as the winter

storm worsened. Luckily the Kulluk grounded in shallow water off a gravel and sand beach—not a rocky coast— and no oil spill was apparent. Shell was quickly working on a salvage plan in the first few days of January. The Kulluk was one of two drilling vessels Shell used in 2012. The other, the Noble Discoverer, is a conventional drill ship where the rig is built into a ship with its own propulsion system. The Kulluk, in contrast, is a conicalshaped mobile drill vessel that does not have its own power to self propel. It is a one-of-a-kind vessel—there is none other like it—and its unique design is intended to withstand forces of ice in the Arctic offshore at a stationary drilling location. However, not having

a propulsion system means it must be towed when being moved, like a barge. That was the challenge when the Kulluk was being towed through heavy Gulf of Alaska seas in late December 2012 and tugs were unable to keep tow lines attached in the bad weather. The Kulluk was built years earlier just for the Arctic and had drilled in the Alaskan and Canadian Beaufort Seas for other companies. It had been stored in the Canadian Beaufort Sea for some years and was purchased and refitted by Shell for use in the Alaska Beaufort Sea after the company acquired OCS leases in 2005. Meanwhile, the Noble Discoverer was also contracted by Shell and was assigned to drill in the Chukchi Sea in an area generally west of Barrow where Shell had acquired leases in 2008. Several other companies also acquired OCS leases in the 2008 sale, including ConocoPhillips and StatOil, which plan exploration programs that are separate from Shell’s.

Improved Technology

Both regions are not new to oil explorers, including Shell. In fact, Shell had

www.akbizmag.com • Alaska Business Monthly • February 2013

57 ■


What has changed the situation now is that improved technology, mainly in seismic 3-D imaging, has allowed explorers to do a better assessment of potential resources in the areas of the previous discoveries. acquired leases in an earlier Chukchi Sea OCS sale and drilled several exploration wells in the early 1990s including the Burger prospect, its prime target in 2012. Burger was a significant natural gas discovery with indications that oil was also present, but it was uncommercial in the early 1990s and Shell abandoned the find—and the leases. Ironically, when Shell returned to the Arctic and the federal government held its Chukchi Sea sale Shell paid more than $2 billion to acquire leases, including reacquiring those at Burger that had been relinquished to the government in the 1990s. The Beaufort Sea was a somewhat similar story. Shell had explored for years in the Beaufort along with other companies and several discoveries were made near shore. Among them was Seal Island, a small discovery six miles offshore the Prudhoe Bay field where the reservoir straddles the fed-

eral-state boundary. Seal Island was eventually sold to BP, which developed it as the Northstar field, which is now producing. The eastern Beaufort region that is farther offshore, where Shell is now exploring, has long attracted industry interest. Amoco and Unocal drilled exploration wells with drillships in the 1980s. Unocal made an oil discovery at a prospect named Hammerhead, which is near the prospect Shell has now targeted. Arco Alaska drilled in the Camden Bay area, including a prospect named Kuvlum, where an oil discovery was also made. However, both Hammerhead and Kuvlum were considered uneconomic at the time given the remote locations, distances from infrastructure and the available technology. What has changed the situation now is that improved technology, mainly in seismic 3-D imaging, has

allowed explorers to do a better assessment of potential resources in the areas of the previous discoveries. Shell is now much more confident that there is oil, and possibly a lot of it, along with natural gas at the Burger prospect. Similarly, the company believes there are substantial resources in the eastern Beaufort near Unocal’s Hammerhead find.

Infrastructure Situation

In the case of the eastern Beaufort the infrastructure situation has changed, and it is an important development. Since the early Unocal and Arco drilling, a pipeline has been built 25 miles east of Prudhoe Bay to the small Badami field, which is now producing. ExxonMobil now plans to complete the extension of this system all the way to Point Thomson, about 22 miles farther east. Th is winter and next ExxonMobil will be building

907.278.1877 ■ 58

www.akbizmag.com • Alaska Business Monthly • February 2013


One uncertainty with a pipeline from the Chukchi Sea is the regulatory approvals needed for a pipeline to cross NPR-A. The U.S. Bureau of Land Management’s recently approved long-term land management program for the petroleum reserve has numerous restricted areas along coasts, including the northwest coast and provisions for future wild and scenic rivers that flow south-north across a corridor for a west-east pipeline. new pipeline from the Point Thomson gas and condensate field now under construction to the Badami field. The new Point Thomson pipeline will be fi nished by 2015. Point Thomson is south of where Shell is exploring in the Beaufort Sea. If there are oil and gas discoveries Shell would still have to build a pipeline to shore, a distance of about 15 to 20 miles—but by the time it will have oil available there will be an onshore pipeline available that can carry the oil to TAPS. This will be a huge advance from the situation a few years ago. Infrastructure is still a huge challenge for oil and gas developers in the Chukchi Sea. Any oil or gas developed

in that remote area will have to be brought ashore by pipeline, a distance of 60 miles or more, and then shipped by a new onshore pipeline for several hundred miles across the National Petroleum Reserve-Alaska to the transAlaska oil pipeline. The huge costs of building that infrastructure mean that any discoveries in the Chukchi Sea will have to be very large. It will take years to develop them and build the pipelines needed. One uncertainty with a pipeline from the Chukchi Sea is the regulatory approvals needed for a pipeline to cross NPR-A. The U.S. Bureau of Land Management’s recently approved longterm land management program for

the petroleum reserve has numerous restricted areas along coasts, including the northwest coast and provisions for future wild and scenic rivers that flow south-north across a corridor for a west-east pipeline. BLM officials point out that the management plan does contain a corridor and that there is nothing in the coastal land restrictions that would impede a pipeline coming ashore from the Chukchi Sea. However, given the track record of federal agencies in permitting Alaska energy projects, many people feel there are reasons to be concerned. If the restrictions are too onerous, companies developing Chukchi Sea oil may opt to do direct loading of oil to tankers at sea, which can be done under terms of the federal leases. Loading oil at sea would mean the Chukchi Sea OCS oil would not flow through TAPS, although Beaufort Sea OCS oil would. R Mike Bradner is publisher of the Alaska Legislative Digest and is a former legislator and Speaker of the House.

www.akbizmag.com • Alaska Business Monthly • February 2013

59 ■


trAnsPortAtion

Commercial Industrial Charters Photo courtesy of Carlile Transportation Systems

Kiewit chartered Carlile to heavy haul 80 steel I-beams, each 165 feet long, from the Port of Valdez to the Tanana River Crossing at Salcha, where Kiewit is building a bridge for the Alaska Railroad Corp. as part of the Northern Rail Extension project.

Trucking steel from Valdez to Salcha BY SUSAN HARRINGTON, MANAGING EDITOR

C

ommercial industrial transportation charter service is readily available at many levels in Alaska from providers throughout the state. Sometimes charters are needed with little notice, perhaps in response to unexpected events. Sometimes charters are needed because transportation is not regularly scheduled to desired destinations. Sometimes charters are needed to transport giant steel I-beams to build a bridge across a river, as in the case of Carlile Transportation Systems moving progress along.

Crossing the Tanana River

That progress is coming in stages. The Alaska Railroad’s Tanana River Crossing—a bridge and levee at Salcha—is the first part of the Northern Rail Extension, a four-phase project that will ■ 60

“These are very big beams, probably some of the biggest beams that have ever been hauled in Alaska, but typically for us they aren’t that big, we do this all the time, large loads,” —Curtis Spencer Special Projects, Heavy Haul, Carlile

extend the railroad 80 miles from North Pole to Delta Junction. Kiewit has been working year-round on the project since August 2011 and is planning substantial completion of the work in MayJune 2014, according to Alaska Railroad Corp. Project Manager Mark Peterbers. The steel girders arrive by barge after a three-week journey across the Pacific Ocean to the Port of Valdez, and are then

trucked up the Richardson Highway some 300 miles to Salcha by Carlile—one by one. As commercial industrial charters go, this is a big one. “There are three sets of trucks that Carlile owns that can transport these beams,” Peterbers says.

Special Equipment

Curtis Spencer, who works special projects, heavy haul, for Carlile ex-

www.akbizmag.com • Alaska Business Monthly • February 2013


The Chartered Girders Crossing the Tanana River with steel

■ 80 Steel I-Beams ■ 165 feet long, each ■ 22-inch-flange “Top I” ■ 11-1/2-foot-high middle ■ 22-inch-flange “Bottom I” ■ 70 tons, each ■ Fabricated and shipped by China Railway Shanhaihguan Bridge Group Co. Ltd. located in Qinhuangdai City, Hebei Province, People’s Republic of China. ■ Ocean transit took three weeks from a port in China east of Beijing to the Port of Valdez. ■ First shipment of 56 I-beams arrived in Valdez in November 2012. ■ Second shipment of 24 I-Beams is arriving in 2013. ■ Transport by truck from Valdez to Salcha by Carlile Transportation Systems across 300 miles via the Richardson Highway for delivery to Kiewit at the Alaska Railroad Tanana River Crossing construction site. northernrailextension.com

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www.akbizmag.com • Alaska Business Monthly • February 2013

61 ■


Photo courtesy of Carlile Transportation Systems

Once loaded, the 165-foot steel I-beams are tied down securely with chains for the journey north to the construction site.

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www.akbizmag.com • Alaska Business Monthly • February 2013

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North Star Stevedores in Valdez used two cranes to load each steel I-beam onto Carlile’s trailer and trailering equipment used to transport the beams to Salcha from Valdez. Photo courtesy of Carlile Transportation Systems

plains how these massive beams are transported on special rigs. “It’s not so much the truck itself, it’s the trailers and trailering equipment we’re utilizing on it,” he says. “When we put them on part of a very large low boy without the deck sections and goosenecks in them—what we call dollies, steerable dollies, and they have turntables—and the beam sits on top of a bunk, and the bunk sits on top of the turntable, it allows us to be highly maneuverable.” That’s a necessity considering the road from Valdez to the project site— there are a few twists and turns along the way—and the fact that each beam is 165-feet-long and weighs 70 tons.

Large Loads

“These are very big beams, probably some of the biggest beams that have ever been hauled in Alaska, but typically for us they aren’t that big, we do this all the time, large loads,” Spencer says. “For example, 100-ton, 80-foot-by-22-foot oilfield modules, very large mining equipment, wind towers—we did all the big wind tower projects in the state last year: Kodiak, Fire Island, Eva Creek. We’re using some of the same equipment we used on those projects.” Carlile delivers the beams one at a time in a convoy of three of these rigs and it takes about 24 hours a load, staggered a few miles apart due to the length. “We have a lot of traffic maintenance,” Spencer says. And a lot of loads: There are 80 beams in all, 56 were delivered to the Port of Valdez in November. Twenty-four more are coming. “Basically, we’ll get two loads per truck and trailering equipment one

www.akbizmag.com • Alaska Business Monthly • February 2013

63 ■


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week and three the next week,” Spencer says. “Each truck has a driver in a pull truck, and then we have three pilot cars per bridge beam—four people per load. We tie down when we pick the loads up and untie when we arrive, then Kiewit unloads at the location. North Star Stevedores loaded them at Valdez, they use two cranes per beam to load on the truck, and it takes two-and-a-half hours per beam to do that.” Carlile started working with Kiewit in 2011 as part of the planning process for the project. Kiewit finished the levee last year.

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“The bridge, when completed, will be 3,300 feet long—the longest bridge in Alaska, Peterbers says. “Four girders span each pier … The beams were bolted together when fabricated, unbolted for shipment, and marked and matched up. On site they are put into pairs, bolted together, and then cranes take them out and set them on the piers—20 sets of piers as we go across the river.” First, they’ve got to get transported to the construction site. “It’s an extremely high risk project, there are a lot of things mother nature has in store for us at any given time as well as traffic on the route,” Spencer says. “When you’re hauling those things you don’t just start and stop and turn whenever you want, there are only a couple of places you can pull off. It’s certainly a high visibility project and a high risk project.”

Safety First

What do the companies involved do to mitigate those risks? “A whole lot of safety programs,” Spencer says. “We have them at Carlile and Kiewit. Safety meetings before we load, safety meetings before we take off every day, as well as Kiewit’s safety programs. As you can imagine driving down the road with those girders is a little nerve wracking—typically, they’re travelling between 10 to 25 miles an hour.” And the drivers? “Heavy haul drivers,” Spencer says. “They are heavy haul drivers—it’s all they do—all the time.”  R ■ 64

www.akbizmag.com • Alaska Business Monthly • February 2013


AGENDA

Compiled By Tasha Anderson

February

n

Alaska Forum on the Environment

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February 4-8— Dena’ina Civic and Convention Center, Anchorage: The forum offers training and information through keynote speakers in plenary sessions covering: climate change, emergency response, environmental regulations, fish and wildlife populations, rural issues, energy, military issues, business issues, solid waste, contaminants, contaminated site cleanup and coastal communities’ issues such as tsunami impacts, marine debris and coastal erosion. Registration required. info@akforum.com 1-888-301-0185 akforum.com

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February 13—Anchorage Museum Auditorium, Anchorage: Free monthly Renewable Energy Alaska Project Forum. Contact: Katie Marquette katie@realaska.org alaskarenewableenergy.org

Alaska Miners Association Convention

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February 13-15—Centennial Hall, Juneau: Annual convention and trade show. Registration required. alaskaminers.org

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February 15-17—Anchorage Downtown Marriott, Anchorage: The Alaska Pharmacists Association convention includes various lectures, literature reviews and an awards reception. Registration required. alaskapharmacy.org February 17-23 anc-aspe.org/eweek.html

February 19—Hotel Captain Cook, Anchorage: This half-day event takes a fresh look at potential business opportunities between Alaska and the Russian Far East region. It will feature six speakers, a mix of both U.S. and Russian trade specialists. 907-278-7233 info@wtcak.org www.wtcak.org

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February 25-March 1, 2103—Centennial Hall, Juneau: The Summit is an opportunity for Southeast leaders to discuss issues vital to the region including energy, resource development, transportation, tourism and economic development, and provides members a chance to meet with lawmakers. www.seconference.org

February 20-21—Hotel Captain Cook, Anchorage: This conference concentrates on the theme of international trade and business opportunities that flow from commercial development in the Arctic. Panel discussions address issues such as supply chains, innovation, markets, commerce, and transportation. 907-278-7233 info@wtcak.org www.wtcak.org

March 4-7 —BP Energy Center, Anchorage: The agenda will include oral and poster presentations on Alaska’s water management issues, the latest on scientific research and a hydrology workshop. awra.org

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March 6-7—BLM Campbell Creek Science Center, Anchorage: This seminar will provide a thorough review of the Alaska National Interest Lands Conservation Act of 1980 and provide an opportunity to examine and discuss current and controversial ANILCA-related issues with several subject matter experts. Registration required. Contact Karlin Itchoak 907-786-6331 kitchoak@institutenorth.org institutenorth.org

Rural Alaska Landfill Operators (RALO) Training March 12-14—BP Energy Center, Anchorage: The RALO course is for the designated landfill operator and administrator in a village with a Class III landfill or open dump, and focuses on the duties of the landfill op-

March 18-20, 7 a.m. to 5 p.m.—Dena’ina Civic & Convention Center, Anchorage: This year’s theme is “$afety Pay$—at Work, Home and Play.” Registration required. Labor.alaska.gov/lss/asac.html

April 2013

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Visit Anchorage Annual Seymour Awards Banquet

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April 12, 6 p.m. to 9 p.m.—Dena’ina Civic and Convention Center, Anchorage: Celebrates the industry’s successes of the past year. Special award presentations will be made to Visit Anchorage partners whose exceptional efforts have made these achievements possible. Registration required. events.anchorage.net/rsvp/

Alaska Rural Energy Conference April 29-May 1—Sheraton Hotel, Anchorage: This conference is a three-day event offering a large variety of technical sessions covering new and ongoing energy projects in Alaska, as well as new technologies and needs for Alaska’s remote communities. Registration Required. Contact: Amanda Byrd agbyrd@alaska.edu akruralenergy.org

May 2013

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Business of Clean Energy in Alaska

ANILCA Seminar

Arctic Ambitions II

February 23-26—Hotel Captain Cook, Anchorage: Join the Alaska Society for Technology in Education at this year’s conference which will emphasize classroom practices that combine technology with educational standards. The theme this year is: Mobile Me, Mobile You, Mobile Us. Contact: Jill Rusyniak jill.rusyniak@aste.org 907-957-2783 www.aste.org

2013 AWRA Alaska Section Annual Conference

A New Look at Alaska-Russian Far East Opportunities

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Governor’s Safety and Health Conference

March 2013

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Engineers Week

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Southeast Conference 2013 MidSession Summit

AkPhA Convention

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February 20-22—Hotel Captain Cook, Anchorage: This year’s conference will include a one-day regional energy workshop on Feb. 20th. Other topics on the program include a transportation carrier roundtable, a processor/community needs discussion, shipping and logistics in SW Alaska, a regional broadband report, CDQs and a debate on maximum benefit resource extraction featuring UAA’s award-winning debate team. www.swamc.org

ASTE Conference

Updates from Fire Island and Eva Creek

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erator, their personal safety, and the safety of the village. There is no cost to attend this training. Limited travel scholarships of up to $500 may be available. Registration required. Contact: Peter Melde 907-351-1536 pmelde@akforum.org akforum.com

SWAMC Annual Economic Summit

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

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Private Sector Transportation Infrastructure and Assets: Response Capacity and Development in the Arctic Workshop May 29, 7 pm. to 9 p.m.; May 30-8 a.m. to 5 p.m.—World Trade Center, Seattle, Wash.: Follow-up discussion to the December 2012 Arctic Transportation Infrastructure workshop in Reykjavik; will focus on the private sector and industry response capacity, with an emphasis on assets deployed and infrastructure developed in the Arctic. Opening reception May 29. Registration required. institutenorth.org

www.akbizmag.com • Alaska Business Monthly • February 2013

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construction

Winter Construction in Fairbanks Working with the weather presents challenges BY JULIE STRICKER

Photos courtesy of Interior Alaska Roofing, Inc.

In cold climates, construction crews often use tents made of reinforced Visqueen to create work areas that stay above freezing even when temperatures fall well below zero. Forced air heaters keep the work area under the plastic “balloon” above freezing as workers build a new Holiday Stationstore in East Fairbanks in November 2012 as temperatures fell as low as 43 below zero.

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t’s high noon on a gloomy midwinter’s day. The sun has just managed to clear the snowy peaks of the mountains 100 miles to the south and cars navigate the icy streets through a sea of ice fog. It’s 40 below zero and the air is thick and bitter. Welcome to a typical winter workday in Fairbanks, Alaska. While many Fairbanksans joke that there are only two seasons, winter and construction, the fact is that while winter disappears for a few months, it is always construction season. Most exterior residential construction stops in the colder months and residents focus on staying warm. Some use woodstoves, and some prefer oil stoves, while others rely on a full-fledged furnace or boiler. Installing and keeping them going keeps dozens of businesses going around the clock, especially during cold snaps. The Woodway specializes in woodstoves and high-efficiency oil-burning heaters, and has been a Fairbanks mainstay since 1978. General Manager Roy Ponder says their busiest times are ■ 66

just before the first real cold snap of the season. They also see people whose heat source has broken or are looking for a backup source. The Woodway sells only EPA-certified wood stoves, a must given the Fairbanks and North Pole areas’ serious air quality issues. The stoves burn the particulates that normally would escape up the flue. Ponder says the store has been installing an average of one stove per day. “People recognize they’re going to need the heat in the winter,” he says. “Most people come in in the fall. A respectable number wait until a cold snap hits and they know they’re going to need something to keep warm.”

Working Outside

Sometimes, however, a construction project does require being outdoors, even in the most extreme weather. Scott Bothwell, owner of Alcan Builders in Fairbanks, says they are often busier in the winter than the summer, depending on the project. And while the season’s extremes present some

challenges, businesses have learned how to cope. “I’ve worked in numerous states and each state has its own particular issues,” says Bothwell, who has been in Alaska since 1978. Fairbanks’ particular issues are extreme cold and short days, both of which can drive construction costs up. Bothwell recalls a project he did a few years ago that involved building a hotel, beginning in mid-winter, that needed to be completed by the time tourists began arriving that spring. At the time, gas cost $1.80 per gallon in Fairbanks, but was closer to $3 at the Denali area jobsite. “We spent $713,000 on gasoline and heating fuel on that job,” he says. Alcan recently built a Holiday Stationstore in northeast Fairbanks in temperatures that dipped well below zero, says John Kietzman, who supervised the project. “I know we saw 43 below one day,” Kietzman says. “Lots of 30 below and in between we had those two-and-a-half weeks of miserable cold.”

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Photos courtesy of Alaska’s Best Plumbing and Heating

Despite the cold, the store was completed in 121 days due to a carefully planned construction schedule and experienced crews, Kietzman says. One phase of the construction required a huge tent made of three 40-foot by 100-foot sheets of reinforced Visqueen stitched together to cover key parts of the project to keep them warm and dry. Such tents are common on far north construction sites. They create a heated bubble that is kept aloft by heat and air pressure and allow crews to work comfortably in temperatures sometimes 80 degrees above the air temperature just outside. “In today’s day and age, so many products are latex-based for green reasons, so we need to be above 32 degrees,” Bothwell says. “In the old days, we could use oil-based paint and stuff that didn’t have to be above freezing.” Kietzman laughs when asked if there was a certain technique or skill set needed to make giant tents. “We’ve all done it so much that it’s apparently second nature,” he says. Building tents in other parts of the Interior such as Delta Junction and Healy, which are noted for being very windy, can be more of a challenge, Bothwell says. “It’s very difficult to build a tent that will last more than one week.” “Sometimes wind is worse than cold,” he adds. “You can always put on more clothes.” Careful planning was a key part of the project. Because the Holiday Stationstore construction started only a few weeks before freezeup, Kietzman had to make sure all of the ground and foundation work was done before the ground froze. The asphalt also was laid in the fall. “First time in Fairbanks that I know of that the asphalt was on the grounds be-

Because of high fuel costs, homeowners are demanding more efficient boiler and furnace systems, according to Sandra Hembree of Alaska’s Best Plumbing and Heating in North Pole. This is a before and after collection of one such installation.

fore the building arrived,” Kietzman says. The 5,000-square-foot building arrived in pre-made panels, which took four days to put up. The roof took another five. By the time the extreme cold hit, most of the exterior work was done and the crews moved indoors. “We both know how fast it needed to go early on to get everything in the ground,” Bothwell says. “We knew it was a tight schedule.” Even the landscaping was done before freezeup. The owner of the adjacent property gave them permission to take some of the trees and transplant them at the Holiday Stationstore. “They took a spade on a skidsteer and dug up the birch trees that are trans-

planted at the Holiday,” Bothwell says. “The spruce trees came the same way. All the plants at the Holiday are authentically Alaskan.”

Safety

Safety is another key ingredient. “Safety is always our No. 1 concern with all our workers,” Kietzman says. In the winter, there are more slip hazards, such as frost, snow and ice, as well dealing with Visqueen and heating and lighting sources. “Our company tries to do things right regardless of what the temperature is,” Bothwell says. He made sure a safety professional frequently visited the Holiday jobsite, just to keep an eye on

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www.akbizmag.com • Alaska Business Monthly • February 2013


things. “In my opinion, we played it the way we’re supposed to play it.”

Home Heating Systems

Given the length and severity of Fairbanks winters, something is bound to go wrong in any household. That’s where businesses like Alaska’s Best Plumbing and Heating come in. The North Pole-based business has been owned by Sandra and Robbie Hembree since 2007. Their schedules are much different in the summer than in the winter, Sandra Hembree says. “Summer is more of the construction and boiler replacement jobs,” she says. “Winter is more repairs and dealing with the problems of winter in Alaska.” In the summer and fall, the company does a lot of boiler cleaning and tuneups, “but you can’t foresee what’s going to break when it gets cold,” she says. “When we get that first cold snap, everybody’s boiler kicks on and stuff starts breaking.” During the weeks of extreme cold that settled over Interior Alaska last November and December, Hembree, who employs about 10 workers, says

her crews were kept running around the clock. Dealing with frozen pipes is one of the biggest challenges the company deals with in the winter months, she says. If homeowners catch it quickly, damage is usually minimal. But if a person leaves on vacation and their boiler breaks and pipes freeze, the damage can be major. Hembree recommends homeowners install temperature sensors. If the temperature in the home drops, an alarm is triggered and the homeowner is alerted. That gives Hembree and her crews enough time to get the boiler back online before the interior freezes and damage occurs. She said such a case had happened just the day before. A homeowner was in California when she received an alert that the temperature had dropped too low in her house. She called Hembree, who got a crew over to the house before anything froze. She also recommends carbon monoxide detectors, which can be a lifesaver if a chimney or duct becomes clogged. Given the high cost of fuel oil, the

Hembrees are seeing a demand for more fuel-efficient boilers. Boilers, especially older models that may not be maintained well, can lose 40 percent or more of their efficiency. That can cost homeowners thousands of dollars a year. And while Hembree tries to adhere to a schedule so homeowners can plan on when workers will arrive to install or work on a heating system, cold spells often mean the schedule goes out of the window. “All of our customers are very important,” she says. “All of a sudden we get a cold snap and we get called for a heat emergency. We have to do a lot of shuffling and rescheduling to make that happen. You don’t plan for an emergency.” Despite that, in all her years in business, Hembree said not one customer has ever complained when she has had to shuffle appointments, adding “Fairbanks people are awesome.” R Julie Stricker is a writer living near Fairbanks.

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Find out what Alaska USA can do for your business. 563-4567 | (800) 525-9094 | www.alaskausa.org Member funds insured by the NCUA.

www.akbizmag.com • Alaska Business Monthly • February 2013

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RIGHT MOVES AECOM

Kristen Akers has joined the Anchorage office of AECOM as a Project Environmental Engineer. Akers received her Bachelor of Science and Master of Science in Environmental Engineering from Texas Tech University. Arran Forbes has joined the Anchorage office of AECOM as an Environmental Scientist. Forbes received her Bachelor od Science in Environmental Science from Dartmouth College in 2010.

USKH Inc.

USKH Inc. announces that Marcus Geist has joined the multi-disciplined firm as an Environmental Analyst in the Anchorage office. Geist is a graduate of the Davidson College, and he received his Master of Environmental Management from Duke Geist University.

Freedom Realty

Kevin Lauver has joined Freedom Realty as a Sales Associate. Kevin will be working at the Kenai branch with vacant land, residential, multifamily and commercial properties.

Compiled by Mari Gallion history from the University of Oregon. Midthun successfully passed the architectural registration exam in November.

help with eyeglass frame fitting at the new Prince of Wales optometry clinic.

Hope Community Resources

The Alaska Primary Care Association board and staff announce the appointment of Nancy E. Merriman as their Executive Director. Merriman attended college in California and Arizona and achieved a Bachelor of Arts in Community Nutrition summa cum laude; and a Mater of Public Health and Master of Business Administration, both magna cum laude.

Hope Community Resources Inc. announces the promotion of Kathy Tonsgard from Chief Financial Officer to Senior Deputy Director of Fiscal Services and Operations. Tonsgard holds a Bachelor of Business Administration in Accounting, a Master of Tonsgard Business Administration in Information Technology and her Juris Doctorate in Healthcare and Contract Law.

AHBA

Nikki Giordano has been named the new Executive Director of Alaska Home Builders Association. Vicki Portwood, former Executive Director, retired Dec. 31, 2012. Portwood had served as the executive officer for the AHBA and the Alaska State Home Builders Association for more than 15 years.

Bezek Durst Seiser

Bezek Durst Seiser announces Jennifer Midthun as one of its newest Licensed Architects. Midthun holds a Bachelor of Architecture with a minor in art

KeyBank

State of Alaska Department of Law

The State of Alaska Department of Law announces that Sharon Marshall will be the new Anchorage District Attorney. Marshall has worked in district attorneys’ offices in New Jersey, Ohio, Texas and Alaska.

SEARHC

Lauver

Alaska Primary Care Association

The SouthEast Alaska Regional Health Consortium Behavioral Health Division announces the hiring of Terry Kinney, PA-C, CAQ-Psychiatry, as a Mental Health Midlevel Practitioner at the Haa Toowóo Náakw Hít out- Kinney patient behavioral health clinic in Sitka. Kinney earned his physician assistant credential through the University of Washington School of Medicine’s MEDEX program, a Bachelor of Clinical Health Services and a licensed practical nurse credential from Clover Park Technical College in Lakewood, Wash. SEARHC has also hired two new optometry assistants—Vivian Stuart and Chrissy Hayes—to

Kent

LeDesma

Mollie R. Kent has been selected to manage KeyBank’s Kenai branch. Currently, she is pursuing a Bachelor of Business Administration from the University of Alaska Southeast. KeyBank has selected Amanda LeDesma to manage its branch in Soldotna. She is currently completing a Bachelor of Business Administration at the University of Alaska Southeast.

Rep. Don Young

Mike Anderson has been hired to serve as Press Secretary in Rep. Don Young’s Washington, D.C. office. Originally from Anchorage, Anderson earned a degree in political science from the University of Alaska Fairbanks.

University of Alaska

The University of Alaska announced Chief Human Resources Officer Donald Smith is returning to the position of Executive Director of Labor and Employee Relations. Associate Vice President of Budget Michelle

OH MY! ■ 70

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RIGHT MOVES

Compiled by Mari Gallion FNBA

Rizk has been appointed to the position of Interim Chief Human Resources Officer. Rizk is a graduate of North Pole High School and the University of Alaska Fairbanks, from which she earned a Bachelor of International Business and a Master of Business Administration in 2001.

UIC Construction Services

Glenda Hogan has joined UIC Construction Services as a Marketing Specialist. Hogan has more than 30 years of experience in management, customer service and graphic design.

Alaska DCCED

The Department of Commerce, Community and Economic Development has selected Martin “Marty” Hester as the new Deputy Director of the Division of Insurance. Hester is a graduate of University of Alaska Anchorage.

Anchorage Chamber of Commerce

The Anchorage Chamber of Commerce selected Andrew Halcro of Anchorage to serve as its new President. Halcro studied at Willamette University in Oregon, and has participated in professional development programs at Harvard University’s Halcro Ke n n e d y S c h o o l o f Government and the Harvard Business School.

Alaska DOT & PF

Governor Sean Parnell named Pat Kemp as commissioner of the Department of Transportation and Public Facilities. Kemp earned a Bachelor of Science in civil engineering from the University of Washington and has been a registered professional engineer in the State of Alaska for more than 30 years.

Century 21 North Homes

Century 21 North Homes announces the hire of Roxanne O’Connor as a Sales Associate. She will specialize in residential property sales in the Anchorage area.

years of working for Begich, first in his capacity as mayor and later in the Senate office. A 14-year Alaska resident, Doehl recently retired as a Colonel after serving as the Vice Wing Commander of the 176th Wing of the Alaska Air National Guard. Doehl originally joined the Army National Guard as an enlisted medic before being commissioned as an armor officer and his military career spanned more than 32 years.

SIKU CxA

Shear

Sisodia

Milanna Shear was promoted to Branch Manager of the Kuskokwim Branch in Bethel. Shear has more than 20 years of banking experience and joined First National as a Loan Officer this past summer. Hemant Sisodia was appointed Branch Manager Thon of the Eastchester Branch. A veteran banker with more than eight years of experience, Sisodia is an active member of the Fairview Business Association. Matt Thon brings his experience as a Personal Banker to the Cash Management Department. Away from the bank, Thon works as assistant varsity basketball coach at Eagle River High School.

Denali Alaskan FCU

Brit Bolsinger, Vice President of Risk Management at Denali Alaskan Federal Credit Union, has earned his Certified Fraud Examiner credential from the Association of Certified Fraud Examiners

Michael Campbell, Manager of SIKU CxA, recently passed the Association of Energy Engineers examination and became a Certified Building Commissioning Professional. The certification covers all aspects of building commissioning, Campbell and the CBCP certification is one of the international building commissioning certifications recognized by the government to perform these services on government buildings.

Toghotthele Corp.

To g h o t t h e l e C o r p . announces the hire of Jacquie Goss as Special Projects Manager. Goss was previously with the University of Alaska Fa i r b a n k s a n d s h e comes to Toghotthele with a degree in Natural Resources. Goss

Northwest Strategies

Bolsinger

Sen. Mark Begich

Sen. Mark Begich named Anchorage resident Robert Doehl as his new Special Assistant for Military and Veterans Affairs. Doehl is replacing longtime Alaskan C.W. Floyd, who is retiring after more than eight

Northwest Strategies has named Tiffany Tutiakoff President. Tutiakoff served as Vice President of Account Services at NWS for the past four years, overseeing much of the company’s day-to-day operations, account services and managing clients. Tutiakoff

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insurAnce essentiAls

Self-Insured Health Benefit Plans A new benefits solution shows promise for cutting costs and making employees happy

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BY MARI GALLION

n our modern times, with the dawning of what will surely be a complicated transition into The Patient Protection and Affordable Care Act (also known as Obamacare) and many Americans feeling ultimately failed by the insurance industry, employers are looking for viable solutions to what many feel is a fundamentally flawed system. In response to these sentiments, one potential solution has emerged: Self-insured health benefits plans—but what are they, and how do they work? Ron McCurry, founder of Alaska Employee Benefit Specialists, is all too eager to tell everything about self-insured benefit plans. As a former electrical contractor who ran his own business for 10 years, McCurry has sat on the opposite side of desks such as his. “I have a clear understanding of cash flow,” he says, “and understand what happens when that seizes up. I understand that we need to keep employees happy, but we can’t break the bank to get that done.” AEBS deals almost exclusively with employee health benefit plans—mainly medical, dental, vision and disability— and McCurry emphasizes that it is his job to figure out the most cost-effective way to get these products into the hands of the client. “Self-funding is simply the same type of coverage—medical, dental, vision—unbundled from the fully-insured components, and set out there in component pieces,” McCurry explains. “Inside any given premium would be things known as margin—that’s the insurance company’s profit—administration, retention and claims… In the self-funded world, I eliminate some of those. I don’t have margin and reten■ 72

tion that I have to deal with. We simply have administrative costs,” which are handled by a third-party administrator of the client’s choice. There is, logically, an insurance component in self-insured plans: Specific stop-loss insurance, which equates to a deductible for the employer (the larger the employer, the larger the deductible can be), and aggregate stop-loss insur-

carrier is not going to write me a big fat check and tell me what a great guy I am— they’re going to keep the money, probably raise the rates anyway, and move on.” The end result, according to McCurry, is that the employer will consistently pay 25 to 30 percent less than a fully insured rate. Sound too good to be true? McCurry goes on to explain how self-insured

“If you had a miracle year, where none of your employees had any claims, on the self-funded side, I would never have sent my money out the door, aside from administrative fees. To the fully-insured carrier, I would have sent them the full amount of money. The carrier is not going to write me a big fat check and tell me what a great guy I am—they’re going to keep the money, probably raise the rates anyway, and move on.” —Ron McCurry Founder, Alaska Employee Benefit Specialists

ance, which protects the employer and the plan in the event that there are huge “runs on the bank” in smaller claims over a 12-month period. “We come up with what would be known in the self-funded world as a maximum liability: What is the most that this employer could pay for those benefits in a year if everything went really, really bad? Then we compare that to a fully insured rate.” This naturally puts the company’s emphasis on the overall wellness of its employees. “If you had a miracle year, where none of your employees had any claims, on the self-funded side, I would never have sent my money out the door, aside from administrative fees,” McCurry says. “To the fully-insured carrier, I would have sent them the full amount of money. The

benefits plans work well for some of his larger clients who operate globally with thousands of employees as well as smaller local companies with as few as 30.

What’s in it for Me?

Self-insured benefit plans boast many advantages for employers, including better customer service. McCurry says that on average, selfinsured benefits packages provide better customer service than fully insured carriers because the client deals with far fewer people, and deals with the third party administrators of their choosing. Another boon to self-insured clients is the symbiotic combination of customization and control over the components as well as the “whole look” of their benefits plans in order to satisfy both employer and employee.

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“In the self-funded world,” you can pick your partners,” McCurry says. “We get to pick first in class management and utilization review companies. We can choose our own prescription benefit manager. We can pick our own stop loss carriers. We can pick our own administrators. So you can go out and build your team that’s going to successfully and soundly operate your plan.” Furthermore, in a self-insured plan, the employer gets the data—and according to McCurry, data is power. “You can analyze what’s going on inside your own plan, and you can dissect that from any given direction and say what is working, what’s not working. Unless you have a couple hundred employees, on most fully insured plans you will never get that kind of data. They just will not disclose it,” McCurry says. For example, “We can tell at a glance that only 2 percent of our population is using preventive care,” McCurry says. “So now we know that we have to go out with some educational pieces to say ‘look, we’re paying these claims at 100 percent. Why aren’t you using this? Why are we not detecting problems early and fi xing them before they get to be a great big claim?’ And data would support that you would see that. From an operating point of view, having that data is critical: Now we can make decisions about our benefits plan that make sense.” Last but not least, there is the advantage of not having to comply with state insurance policy mandates, which may be of particular interest to companies that operate in various states. “Fully insured plans have to operate predominantly under state jurisdiction so they have to comply with state mandates which can add costs: They have state filings, lots of government regulation they have to operate with.” Self-funded plans, however, need only comply with minimum standards for retirement, health and other benefit welfare plans as mandated by Employee Retirement Income Security Act of 1974 (ERISA) and the encroaching Obamacare. Thus, self-funded plans can “reduce cost by an average 2 percent premium tax that does not apply to selffunded plans,” McCurry says. “We can drop off most all state mandates across the country.”

“In a self-funded plan, you’re going to get data sent to you on a weekly basis that says how much your claims were that week, and you’re only going to send that much to the insurance carrier, which in this case would be a third party administrator. But that’s the only amount you’re sending. Then once a month you will get a bill from the TPA and for the administration and stop loss premiums. That’s it!” —Ron McCurry Founder Alaska Employee Benefit Specialists

What’s in it for Them?

As expected, savings for the employer equates for savings to the employee. McCurry finds that employees who have a sense of control over how much they can save on their insurance premiums will use that to their advantage and that of their employers, and will often work as a team to keep costs down. Wellness, prevention, fitness programs, smoking cessation, chiropractic care, nutrition classes, weight loss programs and other incentives can all be written into a company’s self-insured plan. “Fully-insured plans are not in the habit of doing weight loss programs, for example,” McCurry says, including gastric bypass and lap band procedures. “But we see self-funded plans where we are building those in because we understand the long-term cost of not doing something with weight control. It’s going to lead to diabetes . It’s going to lead to heart problems. And so forward thinking employers have the ability to say ‘we will pay for these procedures.’”

bigger insurance component than the larger employers—but they still get to take advantage of claims that were never incurred, and that money stays in the bank as opposed to going to the insurance company.” “In a self-funded plan, you’re going to get data sent to you on a weekly basis that says how much your claims were that week, and you’re only going to send that much to the insurance carrier, which in this case would be a third party administrator. But that’s the only amount you’re sending. Then once a month you will get a bill from the TPA and for the administration and stop loss premiums. That’s it!” Another consideration: According to McCurry, data shows that blue collar workers generate fewer claims than white collar workers. Although not certain as to why, he admits that it may be due to physical activity level or less of an ability to leave work to go to a doctor, which may ultimately help companies who employ either type of worker develop a plan that benefits both employee and employer. MCurry also admits that there is risk: “We’re not going to be able to stop the million dollar preemie baby, or prevent the heart attack in many cases. But with the stop-loss insurance component, we can mitigate and address that risk for each company.” McCurry believes that this is the “Golden Era” of self-insured benefit plans. His industry is seeing a shift towards self-insured plans because of flexibility and cost-effectiveness, and is confident this trend will continue to extend down to smaller companies. “Odds are, year after year you will run lower costs if you’re self-funded than if you’re fully insured,” McCurry says. “My question to a client is, why isn’t this your benefit plan and not the insurance company’s plan?” R

Is a Self-Insured Plan Right for You?

According to McCurry, although the rule of thumb in the brokerage world says you can’t self-insure for less than 100 employees, he is writing plans down to 30 employees, with great success. “It’s just a matter of finding stop-loss carriers that will write that deductible down to a smaller amount, so it’s got a

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Mari Gallion is Associate Editor at Alaska Business Monthly.

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mining & enVironmentAl serVices

Understanding the Partnership’s efforts

Photos courtesy of Pebble Partnership

BY PAULA COTTRELL

TOP: Piezometer devices are used to measure the pressure of groundwater at the point of installation. More than 14,000 groundwater level measurements have been taken from among hundreds of monitoring locations in and around the Pebble Deposit. RIGHT: Regardless of the winter harsh conditions, studies in several disciplines continue year-round as part of Pebble’s efforts to collect baseline data within the region.

M

ining and resource development projects in Alaska are facing increased scrutiny as environmental concerns remain a focal point for federal, state and local governments as well as the people that they serve. Pebble Mine and the Bristol Bay region are no exception as the Pebble Partnership moves toward the permitting process for its mine operations. “Pebble Mine will be among the most scrutinized projects to go through permitting on a state and federal level based on the nature of the way the conversation has progressed so far,” says Mike Heatwole, vice president of public affairs for the Pebble Partnership. “We recognize that the regulators involved in the process live in our state and that with the bombardment of information so far about the project, it will be an intensively scrutinized process.”

Former ADEC Engineer Joins Team

Former Alaska Department of Environmental Conservation engineer, Dan Easton, joined the Pebble team as vice president of environmental affairs in the fall of 2012. In his 20 years with the ADEC, Easton dedicated his efforts to protecting the Alaska environment and ■ 74

plans to continue to do so with his work at Pebble Mine. “When I interviewed for this job, I discussed at length with Pebble managers the extent that the environmental team would influence the design of the project,” says Easton. “I wanted to make sure that the vision for Pebble and the environmental concerns were at the forefront of the team’s mind and that it wasn’t just something that was tacked on at the end.” According to Easton, it is an all too common practice for an environmental team to be handed a design and told to get the project permitted. However, this was not a business model he was comfortable with—and this was something that he and Pebble saw eye-to-eye on. “I think an evolution that we are seeing—not just for Pebble, but in other industries—is a more mature awareness toward environmental concerns,” Heatwole says.

Eight Years of Research

Pebble Partnership has spent the last eight years conducting research to better understand the environment of Bristol Bay and how they can operate successful mine operations with minimal impact to Alaska’s delicate ecosystem. “In order to design an environmentally responsible mine plan,

you have to have a lot of solid environmental baseline data,” Heatwole says. “Before I came to work at Pebble, I didn’t understand the level of effort to understand the environment that was being put forth by the Pebble Partnership—I don’t just mean the natural environment, but the human, social and economic environment as well,” Easton says. In January 2012, a report more than 27,000 pages long was released providing an overview of the first five years of studies conducted by Pebble’s environmental team. “I was struck by how exhaustive the work has been done to understand the current existing environmental condition,” Easton says. “That level effort has been maintained from 2008 to today and many more thousand pages of data are coming.” While activities to date have been largely environmental baseline collections, the Pebble environmental team is also working on predicting environmental impacts and addressing ways to mitigate them, according to Easton. “During the permitting process, you keep doing data collection, but the focus shifts to environmental impact and how to minimize those impacts,” he says. For Pebble, attempting to predict environmental impacts requires the expertise

www.akbizmag.com • Alaska Business Monthly • February 2013


of a team comprised of world class consultants and scientists—many of them with Alaska experience. “I have been impressed by the work that has been done so far to predict the impacts that the mine would have,” Easton says. “I don’t think the public understands how sophisticated the model is—the scientists that understand the impacts on the environment and how sophisticated the ideas are to mitigate the possible.”

Proposed Footprint

The proposed footprint for the mine will occupy three watersheds which is less than 1 percent of the entire Bristol Bay Watershed, according to Easton. “The Bristol Bay Watershed is a huge place, about 42,000-square miles. When you hear about the Pebble project, it’s easy to conclude that it takes up most of the watershed, but the actual footprint is very small,” Easton says. Regardless of the small size of that footprint, protecting the world’s largest sockeye salmon fishery and the strong runs of silver salmon and king salmon is of critical concern to Alaskans. Protecting the waters of Bristol Bay as well as preserving the sport fishing, hunting and tourism industries in the area is a task that Pebble takes very seriously. “From a technical challenge, it’s all about water balance and understanding the effects on water and water quality,” says Easton. “From a broader perspective, for me, the biggest challenge is that we have to get it right. The ray of scrutiny will be intense. We have to identify and manage all environmental risks to an unprecedented degree. There is no room for error.” The program forward for Pebble is more baseline environmental studies and a ramp up to permitting, which will be a pretty intensive exercise, according to Heatwole. “A development plan is being put together with strategies for living up to a basic principal of co-existence with the fishery and water quality and how all of the pieces fit together,” he says.

Easton

Heatwole

ting guidelines. Environmental Impact Statements are drafted with a concurrent state process where the large mining permitting team at the Department of Natural Resources coordinates the state’s

role. The process is extensive but by coordinating with all concerned agencies, it helps streamline the process and allows them to find some efficiencies.” But even with a streamlined process, the completion of the permitting process is many years away. “We are all quite proud of the environmental performance of projects in Alaska,” Heatwole says. “Pebble will go through whatever processes are necessary to ensure we live up to those standards.” R Paula Cottrell is an Alaskan author.

Permitting is Years Away

Permitting for a mine like Pebble requires coordinating with a lot of government agencies. “A federal process is triggered under NEPA when you file for your first permit, which in Alaska is likely with the ACOE (Army Corps of Engineers) for wetlands permits,” Heatwole says. “Other federal agencies then get pulled into that process—each with their own permit

www.akbizmag.com • Alaska Business Monthly • February 2013

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mining

What it takes to keep the lights on and the cogs moving in remote operations BY RINDI WHITE

A mining camp is already in place at Donlin Gold’s lease in Western Alaska. The camp and exploration operations at the lease site are powered by diesel generators but Donlin officials plan to build a 300-mile pipeline from Cook Inlet to the site to bring in liquefied natural gas to power production at the mine.

I

n a resource-rich state, it’s often not a matter of whether enough of a resource exists to warrant mining it, but whether the mineral can be mined in a cost-effective way. Deposits might be hundreds of miles from a road, rail line or power supply. Provision of power to mines can be a healthy chunk of an operation’s budget. Just ask the folks at Donlin Gold LLC, who--after penciling out costs of shipping diesel to their mine in Western Alaska--have opted instead to build a 300-mile pipeline ■ 76

to bring in natural gas to fuel their power plant.

Economical and Esteemed

It’s a roughly $900 million project, about 13 percent of the projected $6.7 billion total project cost, says Kurt Parkan, Donlin’s manager of external affairs. Donlin just entered the permitting process, Parkan says. Scoping sessions were scheduled to begin in January, the start of a three- to four-year effort to obtain about 100 permits.

Building an natural gas pipeline from Cook Inlet to the mine, located about 10 miles north of the village of Crooked Creek on the Kuskokwim River, wasn’t Donlin Gold’s first choice. Asked if Donlin based their power model on other mines in operation, Parkan says each mine is a standalone process. The company’s engineers studied power supply options “from the ground up,” he says. They considered coal, diesel, nuclear, peat and even running a power line to the Railbelt Intertie.

www.akbizmag.com • Alaska Business Monthly • February 2013


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Parkan says company officials initially planned to use diesel generators to supply the roughly 150 megawatts needed to operate the mine and nearby mine community. The diesel would have to be barged up the Kuskokwim River from Bethel, Parkan says. “We looked at that a little closer and there was concern expressed from folks in the region,” he says. Residents were concerned about so much diesel being hauled on the river and through their communities. So

www.akbizmag.com • Alaska Business Monthly • February 2013

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Donlin Gold representatives considered running a natural gas line and found that option to be cheaper. “It takes about 80 million gallons of diesel off the river per year if we do that,” Parkan says. He says the pipeline will tap into the existing Enstar pipeline at Beluga, across Cook Inlet from Anchorage, and will run roughly parallel to the Iditarod Trail in some sections, crossing over the Alaska Range and veering west to the project site. It will be buried along most of its route, he says, but will jut above ground in two locations where it crosses earthquake faults.

“Our size is similar to what Golden Valley Electric Association provides for the Fairbanks area.” —Kurt Parkan External Affairs Manager, Donlin Gold

Parkan says the pipeline will be built using temporary access roads. Parkan says it might be possible for communities along the route to tap into the 14-inch pipeline, which is sized to carry more gas than the project will need. It’s not yet clear who will own and operate the pipeline, he says, and Donlin Gold won’t be in a position to assist communities that want to tap into the line. At the mine, the fuel will fire a dualfuel turbine that can be switched to diesel if necessary. Most of the power will be used to operate the grinding motors, which will grind the ore down into a powder-like consistency, Parkan says. The mine will also use autoclaves, which are used to oxidize the ore and make capture of the gold more efficient. Additional power will be needed for the community, which will be set up a few miles from the mine site. As many as 3,000 workers are expected to be needed during construction, and up to 1,400 workers to run the mine at peak operations. “Our size is similar to what Golden Valley Electric Association provides for the Fairbanks area,” Parkan says.

Livengood

Rick Solie, manager of community and government relations for International Tower Hill Mines, says his company ■ 78

www.akbizmag.com • Alaska Business Monthly • February 2013


Buckets full of rocks undergo kinetic testing, one of many tests conducted for Tower Hill Mines’ Livengood Gold Project’s environmental baseline work. Photo courtesy of Tower Hills Mines

hopes to tap into Golden Valley’s power line for the Livengood gold mine. The mine is about 70 miles northwest of Fairbanks and Solie says ballpark estimates show the mine will likely need 80100 megawatts of power. The mine would be similar in operation to Fort Knox, a surface mine where rock is ground to extract the gold, so the mills will be the largest power draw. Solie says the mine, estimated to operate more than 20 years, will likely employ 500 workers and about double that during construction. Solie says the mine is still in the early phases; feasibility studies are expected to be complete by summer. So there’s a lot of work left to do before an agreement can be worked out with Golden Valley. He estimates it would cost between $30 and $50 million to build a line roughly 50 miles from Golden Valley’s existing line to the mine. A total project cost for the mine isn’t available yet, Solie says. Tower Hill will analyze a range of power supply options, including producing its own power, when it begins its feasibility phase. But he says the company prefers to purchase power from Golden Valley. “If we end up in a self-generation situation, we build (a power plant) on our site and have our own facilities … but you may end up with stranded power out there,” he says. The challenge, according to Solie, will be whether Golden Valley can produce enough power to support the mine, and whether it can do so in a cost-effective way for the mine without impacting the community. “Fairbanks is suffering from high energy costs,” Solie says. “Down the road, we see a potential opportunity to create

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79 ■


Photo courtesy of Tower Hills Mines

Sarah Perman catalogues core samples in the Tower Hill Mines geologic shop.

some synergies with the community and with our project. A key driver for any kind of solution, for us and for the community, is to get a more cost-effective source of power.” Solie says Tower Hill supports the Fairbanks community’s efforts to truck LNG from the North Slope as a source of power. Fairbanks leaders have asked the state to fund an LNG plant on the North Slope where gas could be converted to liquid for trucking the roughly 400 miles to Fairbanks. Then the liquid would be converted back to gas at a plant and used to offset fuel oil now used to generate power. In December, Gov. Sean Parnell proposed a $355 million financial package to help the project move forward. Golden Valley and its partners are pushing to de■ 80

liver the first truck of gas in late 2015. The package must be approved by the Legislature before funding will be available. If the project moves ahead on schedule, it could be in place before Tower Hill’s Livengood Mine begins production. Solie says his company plans to submit permits in 2014 and begin construction in 2017. He says the company has characterized its timeline as “aggressive but achievable.”

Greens Creek

In Southeast Alaska, there’s a tradition of mines using hydroelectric to provide power. Early owners of Juneaubased power provider Alaska Energy Light and Power were connected to mines in Juneau and set up its first hydroelectric project to supply area

mines before 1900. The tradition continues today. Greens Creek Mine spokesman Mike Satre says the mine is an interruptible customer of AEL&P, using hydroelectric power when the supply is abundant. Greens Creek is a silver-gold-zinclead mine on Admiralty Mine south of Juneau. Greens Creek has been a customer of AEL&P since 2006. Satre says it’s not a perfect situation; power to the mine is interrupted frequently and is unavailable when water levels at Dorothy Lake and other AEL&P hydroelectric projects drop. Sometimes the power is unavailable for three to five months, he says, and Greens Creek must generate its own power using costly diesel fuel. AEL&P gives the mine as much notice of disconnections as possible, he says, so the company can purchase more diesel fuel for its generators. “We burn 75 percent less diesel when we’re on hydroelectric power. It’s a significant savings, especially as diesel costs go up,” Satre says. A statement from Hecla Mining Co. shows fuel costs spiked to 13 percent of Greens Creek Mine’s operations in 2011, when lower precipitation levels meant the cheaper hydroelectric power was not available. “Diesel fuel expense at Greens Creek increased by $7.7 million in 2011 compared to the same period in 2010 … due to an increase in fuel consumption of 97 percent and 15 percent compared to 2010 and 2009, respectively, as well as an increase in the cost of diesel,” according to Hecla. “From a mining perspective, the cost of power is one of the largest single cost items out there. Ultimately, it’s one we do have some control over,” Satre says. To that end, the mine has implemented energy-saving measures aimed at reducing power demand, he says. It’s not clear how much hydroelectric power Greens Creek can count on in the future. According to Satre, power needs in Juneau are outpacing capacity. “You can certainly do some conservation; the hope is that, once we do get back on power, we maintain those conservation methods,” Satre says. R Rindi White is a freelance journalist living in Palmer.

www.akbizmag.com • Alaska Business Monthly • February 2013


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mining

Economic Impact of Mining A MESSAGE FROM DEANTHA CROCKETT

A

s I sat down to sketch out my ideas on “a message from Deantha Crockett,” I grabbed a piece of paper from the recycle bin. When I reached the bottom of the page, I flipped it over to continue writing, and nearly laughed at what I saw. I’m writing my notes for this article on the back of a mailed letter from actor Robert Redford about how the Pebble Mine is going to single-handedly destroy this state and its fisheries. His friends at the Natural Resource Defense Council call Pebble “the worst project they’ve ever seen” and claim it will spew toxic chemicals from a large dam in an active earthquake zone. I personally take offense to such accusations, and like most Alaskans, I just don’t appreciate a celebrity that lives a

■ 82

privileged life far from our state telling us what we can or can’t do on state-owned land. I also don’t appreciate him contacting millions of American households with false information about the mining industry in Alaska. It’s not just Pebble. I’ve seen letters he’s written about oil drilling in ANWR, claiming every last polar bear in Alaska is dying off, and so on. My job, one I don’t have to act at, is to promote the mining industry in Alaska. I believe the best way to do this is to provide accurate information about what miners do here. We have much to be proud of. As we like to say: Mining works for Alaska. We have seven large mines and hundreds of placer mines operating in Alaska. We have multiple exploration projects cropping up around the state and many more known prospects, attractive to inves-

tors around the world. All of these properties operate under strict federal and state laws that require the utmost care for the environment, wildlife and human health. Many of these mines have received awards for reclamation of the land, creation of enhanced fish and wildlife habitat, unrivaled water treatment and more. Many of these practices were employed before it was required by law to do so. Mining technology has provided ways to operate more efficiently, and companies have proactively bettered their environmental standards, often without being told to. Mines have also implemented a mission to perform at the highest level of safety, instilled in every single employee. Alaska miners, whether their projects are locally or globally owned, do it right. And why? Because unlike Robert Red-

www.akbizmag.com • Alaska Business Monthly • February 2013


It’s Always Been.

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ford, our miners are Alaskans first. It’s easy for those who oppose our projects to criticize the ownership and profitability of mines, but do they ever visit the mines (even when invited!) to meet the workers? How about the haul truck operator who is a third generation Alaskan, or the general manager, who is responsible for every aspect of how the mine operates and lives nearby with his family? Do opponents think they don’t care about Alaska? Alaska miners work with the highest level of integrity, and care about the environmental impacts of their efforts— because when they leave their mine at the end of a shift, they go enjoy the rest of what Alaska has to offer. They fish, they hike and they enjoy the wonders of the Last Frontier. They, more than anyone, want to keep it that way. I ask that you please don’t ever hesitate to ask a miner about their job. We are excited to share, with anybody who will listen, all there is to know about where we work and what we do. We want the entire world to know that Robert Redford and his friends at the NRDC are not the authority on Alaska and our state’s resource development industries. The real experts are the Alaskan workers, whose job it is to operate safely and responsibly each and every day. I am proud of Alaska’s mining industry. As we march into 2013, I’ll continue to wave our flag and highlight our safe and environmentally responsible practices any chance I get. I hope you will too. With our excellent record, encouraging commodity prices and impressive mining opportunities, I have high hopes that we’ll see more exciting projects heading our way. R Deantha Crockett is the Executive Director of the Alaska Miners Association, an industry support organization with more than 1,300 members. The AMA represents all aspects of the mineral industry before state and federal agencies, the State Legislature and U.S. Congress. Contact her at 907-563-9229 or deantha@alaskaminers.org.

www.akbizmag.com • Alaska Business Monthly • February 2013


FinAnciAl serVices

IRS Provides Updated Withholding Guidance for 2013 Editor’s note: At press time the Internal Revenue Service was reviewing the details of the new tax legislation and assessing what impact it will have on this year’s filing season. The IRS expected to soon make available additional information on when taxpayers can start filing 2012 tax returns. At press time, a brief had been issued, which we’ve reprinted below, as well as a revised version of Notice 1036, which employers will need for payroll and can download from the IRS website.

I

R-2013-1, Jan. 3, 2013—WASHINGTON — The Internal Revenue Service on Jan. 3 released updated incometax withholding tables for 2013 reflecting the Jan. 1 changes by Congress. The updated tables, issued Jan. 3 after President Obama signed the changes into law, show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The newly revised version of Notice 1036 contains the percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by the Jan. 1 legislation. Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2013, but not later than Feb. 15, 2013. For any Social Security tax under-withheld before that date, employ-

ers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2013. Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form. As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. More information can be found on irs.gov. R

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Engineering special section


special section

Engineering

2013 Engineer of the Year Nominees COMPLIED BY MIKAL HENDEE

Osama Abaza

Mark Ayers, PE

Osama Abaza

lates to pavement structures, pavement management, highway engineering and materials, and traffic engineering. He has published more than 52 refereed publications in transportation engineering. His current research is focused on cold region transportation issues like pedestrian walking speed under icy conditions, developing rubberized Portland cement concrete pavements for intersection rutting mitigation and calibration of the National Highway Safety Manual for cold regions applications. He has been a member of Institute of Traffic Engineers since 1985 and other national and international professional organizations.

Nominated by Institute of Transportation Engineers (ITE)

O

sama Abaza is a professor of civil engineering at the University of Alaska Anchorage. He is currently serving as the chair of the civil engineering department at UAA School of Engineering. He is a graduate of Brigham Young University for his doctoral degree and University of Toledo/Ohio for his master’s and undergraduate degrees. He worked in the academic circles and industry for the last 26 years in the field of civil/transportation engineering as it re-

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Theodore “Tad” Dean

Mark Ayers, PE

Nominated by Institute of Electrical and Electronics Engineers (IEEE)

M

ark Ayers, PE is manager of RF Engineering at GCI Communications Corp. headquartered in Anchorage, Alaska. Mark has a broad range of telecommunications experience including work in fiber optics, microwave radio and satellite network design. Significantly, in 2012 Mark published a textbook through Wiley/IEEE press entitled Telecommunications System Reliability Engineering, Theory and Practice. His primary interests are

www.akbizmag.com • Alaska Business Monthly • February 2013


system engineering, design, modeling, and optimization. In 2012 Mark received the IEEE Alaska Section “Outstanding Engineer of the Year” award and was elevated to the status of Senior Member within the IEEE. In 2011 he was the recipient of the Alaska Journal of Commerce Top Forty Under 40 award. Mark holds a Bachelor of Science in Mathematics from UAA and a Master of Science in Electrical Engineering from the UAF. He is a registered Professional Electrical Engineer in the State of Alaska an adjunct faculty member in the UAA engineering department. Mark also serves as a member of the UAA EE program advisory board. Mark’s community service contributions include local elementary school science fair judging, presentation to high school students as part of the community’s Engineering Explorers program and presentation to college students as part of the UAA Engineering program’s Introduction to Engineering course. Mark has given talks at professional conferences and to members of the public on engineering as a career and on a variety of engineering topics.

Theodore “Tad” Dean

Nominated by the Society of American Military Engineers (SAME), Anchorage Post

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fter growing up in east Anchorage, Theodore “Tad” Dean earned his mechanical engineering degree with a minor in applied mathematics from UAF in 1991. He embarked on a diverse department of defense career ranging from environmental remediation to facilities and infrastructure design and construction, mostly in Alaska. He began his career as a project officer at McClellan Air Force Base, California as a pioneer in the use of soil vapor extraction technology to recover disposed products. After returning to Alaska he played an instrumental role in the C-17 mission conversion at Joint Base Elmendorf-Richardson by leading an air space conversion study to convert the C-130 flight paths and training areas to C-17 use. He made a career change in 2008 to the oil and gas sector by joining BP Exploration (Alaska) as a pipeline project engineer.

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Bharat Javeri

His current work is focused on maximizing oil production to stimulate Alaska’s economy and includes: a pipeline technology study to reduce potential construction and operational risks and improve asset performance; highpressure gas injection pipeline network rehabilitation to support the gas cap injection strategy; and concept design of a 12-mile three-phase production pipeline network to sustain long-term oil production in the Prudhoe Bay east area. He has been an active member of the Society of American Military Engineers since 1993 and has served on the Anchorage Post Board of Direction and as a web master since 2005. Dean most enjoys exploring the world around him by traveling abroad, exploring Alaska’s rugged coastline with his family, or by volunteering as a swimming deck official to better Alaska’s youth.

Bharat Javeri

Nominated by Society of Petroleum Engineers

D

Colin Maynard, PE

John A. Pepe, PE ■ 90

r. Bharat Jhaveri is a Senior Advisor, Reservoir Engineering at BP Exploration in Anchorage, Alaska. He is currently working in the Alaska Reservoir Management Team, leading efforts on a broad range of business initiatives including depletion planning and application of Gas EOR technology for both light and viscous oil resource development. Dr. Jhaveri is also leading a Project Team based in Sunbury responsible for development of research and technical capabilities for application of CO2/MI gas injection technology to BP’s world-wide resource. Dr. Jhaveri received a Bachelor of Science in chemical engineering from IIT Kanpur, a Master of Science in chemical engineering from IIT Chicago, and a Ph.D. in chemical engineering from Stanford University. After working for two-and-a-half years as a Post-Doctoral Fellow at the Department of Physics at University of Utah, studying vapor transport crystal growth processes, he joined Arco Production Research Center in Plano, Texas in 1981. His technical work at Arco was instrumental in the design of the Prudhoe Bay miscible and gas cycling Projects, and settlement of the Gas Condensate Reserves for which he received the Corporate Outstanding

Technical Achievement Award. He left Arco in 1994 and joined BP Alaska in 1995, after a short assignment at the Department of Energy in Bartlesville, Okla., developing technology for viscous oil enhanced oil recovery processes. At BP, he played a lead role in the successful design and sanction of a large gas cap water injection project at Prudhoe Bay. He is an industry-wide expert in the area of phase behavior and compositional modeling, study of reservoir displacement mechanisms, and in the design, engineering and evaluation of large-scale EOR projects.

Colin Maynard, PE

Nominated by American Society of Civil Engineers

C

olin Maynard, PE has 32 years of experience in structural analysis and design. He has a Bachelor of Science in Civil Engineering from the Massachusetts Institute of Technology and a Master of Science in Civil Engineering from the University of Colorado, Boulder. He has been licensed in Alaska since 1988. His career has afforded him the opportunity to gain valuable experience designing buildings in Alaska, finding new ways to meet the environmental challenges of Arctic and subArctic engineering. Maynard excels at these unique challenges by providing award-winning structures that are safe, efficient and creative. He is familiar with both civilian and military codes and was involved in the adoption of the Municipality of Anchorage’s amendments to the Uniform Building Code and the International Building Code since 1991. Maynard’s involvement in professional societies includes the American Society of Civil Engineers, Alaska Society of Professional Engineers, Structural Engineers Association of Alaska, and Alaska Professional Design Council. He served on the Anchorage Building Board and is currently serving on the State Board of Architects, Engineers, and Land Surveyors. His recent projects include the Three Cedars Office Building, Chefornak School Addition and Remodel, Kodiak Library, and Spy Island Drilling Modules. He is vice president and principal in charge at BBFM Engineers Inc.

www.akbizmag.com • Alaska Business Monthly • February 2013


John A. Pepe, PE

Nominated by Alaska Society of Professional Engineers

J

ohn A. Pepe, PE is a 35 year Anchorage resident with 20 years of professional electrical engineering experience in Alaska. In July 2008, he became a partner with EDC Inc., an Alaska firm for more than 30 years that specializes in electrical and mechanical facilities design. Pepe was previously a senior project manager for PDC Engineers and has worked on a wide range of facilities design projects throughout the state of Alaska. As a principal with EDC, Pepe is responsible for all aspects of project design management, contract and construction administration as well as various office, financial, technical and managerial decision making. In 2005, Pepe co-founded the Southcentral Alaska Professional Chapter of Engineers Without Borders, a humanitarian community development organization that focuses on infrastructure and capacity building in developing countries. He is past president and current project lead for a recently completed water treatment project at a rural high school in Malawi, East Africa. Through his volunteer work with EWB-USA, he has been active with infrastructure design and construction projects both internationally and in Alaska. Local projects include work with Camp Fire USA and the AWAIC Shelter in Anchorage. He has also served as a mentor for the Student Chapter of EWB-USA for the University of Alaska Anchorage in their recent project at the Rhema Grace Orphanage in Cameroon, West Africa. He has also participated in the Gifted Mentorship Program through the Anchorage School District since 2003.  R

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special section

Engineering

Photo courtesy of Kevin G. Smith Photography

The exterior of NANA Regional Corporation’s 909 W. 9th Ave. office building in Anchorage includes blue glass, a nod to NANA’s corporate color, a cantilevered board room on the sixth floor that juts out like an enclosed balcony, and a mechanical penthouse wrapped in blue lights woven in a basket-weave-like pattern.

Building Innovations in Alaska Reaching ultimate efficiency BY RINDI WHITE

2

012 was an exciting year for Alaska on the building front. Old buildings are getting new treatments that make them more efficient and even, in at least one case, mostly independent of fossil fuel. Buildings are being built that are using technology that is both new to Alaska and the United States, and existing buildings are being reborn into jazzy new structures built with a nod to centuries-old traditions.

Old is New Again

One way to be environmentally sustainable is by reusing what’s available. To that end, design-build team Pfeffer ■ 92

Development, Criterion Construction and kbp architects worked with tenant NANA Regional Corp. to renovate the old Unocal building at 909 W. Ninth Ave. in downtown Anchorage. Mike Prozeralik, president of kpb architects, says the building, built in 1969, was stripped down to concrete and steel. The design-build team collaborated with the NANA Development leaders to design an office building that meets their needs and work flow. NANA Development’s communications group provided design inspiration so the finishing, materials, furniture and details reflect the Iñupiaq culture and the NANA brand.

“We sat down with a number of their building committee members and talked about their organization and heritage,” Prozeralik says. “At kpb architects, we listen first before we start our design exploration. Connecting with a client’s culture helps move us to a design that truly represents who they are.” Prozeralik says his team studied garments and traditional sewing patterns, called qupak, used for parka trim. Three parka trim designs are integrated as a pattern in a large zinc wall behind the main-floor reception area. The wall connects the cultural history, through the stitching pattern, with NANA’s present-day economic efforts, which

www.akbizmag.com • Alaska Business Monthly • February 2013


B U S I N ESS

PROF ILE

PDC Inc. Engineers Transforming Challenges into Solutions Serving the Arctic for more than 50 years

Photo courtesy of PDC Inc. Engineers

P

DC Inc. Engineers has Alaska roots that stretch back more than five decades. Last year was a fantastic year for the full-service engineering and survey firm. In September, PDC established an employee stock ownership program (ESOP), creating a 100 percent employee-owned entity. The firm has 76 employee-owners located in Anchorage and Fairbanks. PDC has gained national recognition for its performance, being recognized as one of the country’s top 100 fastest-growing A/E firms by the Zweig Letter Hot Firm List rising from 127 in 2011 to 75 in 2012. It also made the list of top 100 MEP firms in the nation by the Consulting & Specifying Engineer Magazine’s MEP Giants program. In 2012, a sampling of PDC’s projects included the Eva Creek Wind Farm; the Doyon Utilities Fort Greely Central Plant Boiler Replacement; the Kodiak High School; and upgrades to the UAF Campus Electrical Distribution infrastructure. Aviation and transportation projects included the Nome Airport Master Plan and the Fairbanks University Avenue Rehabilitation. “We deliver the highest quality services and transform challenges into solutions for our clients,” says Anchorage-based Principal Steve Theno. As a multi-discipline firm, PDC offers civil, structural, mechanical, electrical and environmental engineering; as well as survey, fire protection, commissioning, sustainability and GIS planning services. PDC’s three markets include a focus on the energy, facilities and transportation sectors. “This focus enables us to gain an in-depth understanding of our clients’ methods, processes,

challenges, and constraints and to deliver services structured to best meet their needs,” Theno explains. For the energy sector, PDC designs power generation facilities, fuel storage facilities, pipelines and power distribution systems. In the facility sector, it develops the civil, structural, mechanical and electrical elements of all types of facilities. In transportation, the company designs rural and urban roads and highways, airports, railways, pedestrian trails and pathways. “We offer our clients comprehensive, fully integrated services efficiently, seamlessly, and cost effectively,” Theno says. PDC sets itself apart with its fullservice capabilities in Arctic and cold regions design. The company is not only focused on delivering services in Alaska, but across the broader circumpolar Arctic region. It understands the environment, the drivers influencing change, and the challenges faced by communities, businesses and industries in the North. PAID

ADVERTISEMENT

The changing Arctic provides unprecedented challenges — and unique opportunities. PDC is well positioned to provide innovative solutions to help those in the North achieve successful, responsible and sustainable advancements. “We have a vested interest in doing it right,” Theno says. “We are very excited about our role in helping clients meet the challenges ahead.” Helping clients adapt to changing business environments is a major part of PDC’s competitive advantage. They capitalize on strategic planning and leading technologies such as Building Information Modeling (BIM) software, among other applications. PDC is distinguished by its fullservice capability, strategic geographic locations, depth of experience and long-term employee tenure. Its employee-owners are vested in the continued success and reputation of the company. As PDC’s President, Royce Conlon recently emphasized, “Our highest core value is meeting the needs and exceeding the expectations of our clients.”

Transforming Challenges Into Solutions Serving the Arctic for more than 50 years

Royce Conlon, PE, President 1028 Aurora Dr. Fairbanks, Alaska 99709 (907) 452-1414 Steve Theno, PE, Principal 2700 Gamble St., Suite 500 Anchorage, Alaska 99503 (907) 743-3200 www.pdceng.com


“Instead of tearing a building down, you refurbish it … so you’re not taking all that waste and throwing it in a landfill to build a new structure.” —Mike Prozeralik, President, kpb architects

include operating Red Dog Mine, the world’s largest zinc mine. One of the most noticeable new exterior features is the repeated use of the symbolic NANA arc, an umbrella which unifies NANA’s companies and people. That motif is visible atop the building, with blue LED lights on the mechanical equipment penthouse. The building captures the 360-degree views of mountains, inlet and Anchorage skyline. A cantilevered section was added to the sixthfloor boardroom. It juts out from the rest of the building by a few feet, changing the architectural character of the building. The glass exterior of the building was replaced with high-efficiency blue-tinted panels that reflect NANA’s corporate color and also help with solar performance. Along the interior walls, offices have fullheight modular glass walls to allow daylight to penetrate the core of the building.

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Every staff member has access to views and natural daylight, Prozeralik says. Interior materials are neutral, allowing regional graphics, photography and branding to remain the focus. LED lighting and high-performance boilers were installed and the heating system was upgraded to increase efficiency. “The project gives new life to a building that had long been vacant. Renovating an old building makes a positive impact in our community,” Prozeralik says. “Instead of tearing a building down, you refurbish it … so you’re not taking all that waste and throwing it in a landfill to build a new structure.”

Pump It Up

If there’s a buzzword in the construction field this year, it might be “heat pump.” In Southeast Alaska, the National Oceanic and Atmospheric Asso-

ciation installed a seawater heat pump at its Alaska Marine Research Institute last year, closing the loop to make the 66,000-square-foot facility completely green. NOAA was one of the first to make the step, but several other public buildings are in line behind it. One of the most notable is the Alaska SeaLife Center in Seward. The 120,000-square foot facility needs building heat and energy and it must also keep aquarium and lab temperatures stable for the animals, fish and birds that live there. Prior to April 2009, the facility relied exclusively on large oil-fired boilers. Operations Manager Darryl Schaefermeyer says an efficient 500-kilowatt electrical boiler was installed in 2009 to cut energy costs, but the biggest push to improve efficiency came more recently. A former SeaLife Center employee read a report about sea water pumps being used in Japan and suggested SeaLife Center officials consider tapping into the latent energy in Resurrection Bay as a power source. Schaefermeyer contacted Andy Baker, a clean energy consulting engineer who owns Your Clean

www.akbizmag.com • Alaska Business Monthly • February 2013


Photo courtesy of Andy Baker

Alaska Sea Life Center operations manager Darryl Schaefermeyer, CEO Tara Jones, and Your Clean Energy engineer Andy Baker stand with new sea water heat pumps that have cut energy costs for the aquarium.

Energy, in 2009 and secured funding to study the project. The study showed a potential savings, so SeaLife Center staff started applying for grants to make it happen. “This is a very expensive building to run and operate. We’re a not-for-profit,

so we don’t have beau coups bucks to operate. We were slammed with the high fuel costs in 2008; that’s why we went with the (new) electric boiler,” Schaefermeyer says. Sea water is piped from Resurrection Bay, which ranges from 37 to 52

degrees, to a titanium plate heat exchanger, where it warms a mixture of glycol and water. The glycol mixture is piped to two 90-ton Trane chillers, where it comes into contact with a refrigerant that boils at a low temperature, turning it into a gas. The gas is then compressed, raising its temperature. The compressed gas raises the temperature of another loop of water to 120 degrees. It’s then pumped throughout the facility to warm ventilation air, preheat domestic hot water and heat concrete slabs to keep ice from forming on pavement around walkways and animal enclosures. The idea of using a renewable energy source was appealing, especially if it resulted in lower operating costs, Baker says. The oil boiler was inefficient, sending 12 to 15 percent of the heat energy generated up the exhaust stack. And while the electrical boiler has no waste heat, it’s not large enough to carry the whole building’s energy needs, especially in winter when more heat is needed for the building and to clear the 12,000 linear feet of heated concrete outside the building.

www.akbizmag.com • Alaska Business Monthly • February 2013

95 ■


“We are an aquarium. We are trying to be a green facility—we want to improve things and be an example of a green economy,” Schaefermeyer says. “And I thought … we can establish this and show that it will work elsewhere.” In 2010, the center secured $713,000 in grants from the Denali Commission and Alaska Energy Authority’s Renewable Energy Fund and secured Your Clean Energy to design the heat pump system. It was enough, Baker says, to install two sea water heat pumps in 2011 and connect them to air handlers and domestic hot water heating. In

December 2012, with additional funds from the MJ Murdock Trust, the center added the sidewalk slab-heating loop to the system. The inefficient oil boilers were turned off in December, a cause for celebration. In the first year of operation, the heat pumps saved the SeaLife Center $32,000 between May and September. The savings will increase in the winter, Baker says, because heat loads are larger then and, since Resurrection Bay retains heat from the summer, that heat can be extracted more efficiently. Schaefermeyer says with the slab heat connected, at least 60 percent of

the building’s heat is being provided by the sea water pumps. Additionally, the facility comes close to being carbon neutral by avoiding burning fuel oil and reducing the amount of electricity used by the electrical boiler. Schaefermeyer is seeking funding for one more phase: installing a heat recovery system to capture heat from two large exhaust fans and other areas of the facility that waste heat. “At that point it will reach ultimate efficiency,” Baker says. Schaefermeyer says the new, efficient heating system is generating interest among people who visit the SeaLife Center. Around 100 people asked for more information or a tour of the new heat pumps, and he says it would likely be added to the behind-the-scenes tour. More heat pump systems are on the way. Anchorage engineering and survey firm PDC Inc. Engineers was the lead engineering firm on the 11,000-squarefoot Juneau Forestry Sciences Laboratory at Auke Lake, which will be heated by a ground source heat pump system. The system works like the sea water heat pumps, except that the heat is being extracted from the temperature of the soil. PDC also designed a ground source heat pump system coupled with a solar hot water system that was installed at Weller Elementary School in Fairbanks. The Kodiak Fisheries Research Center is also installing a sea water heat pump, which is heating the building and providing chilled sea water for experiments, says Danny Rauchenstein, a senior associate with PDC, which is working on the project.

New UAF Building is a New Kind of Cool

Rauchenstein is the lead mechanical engineer on the new 100,000-square foot Margaret Murie Life Sciences Building on the University of Alaska Fairbanks campus. The university generates its own power and uses excess steam to heat buildings on campus. In the summer, the steam heat isn’t needed; cooling is done through the ventilation system, which uses a lot of power. But Rauchenstein says studies have shown cooling through ventilation requires more energy than cooling with water. So the company proposed using the radiant ■ 96

www.akbizmag.com • Alaska Business Monthly • February 2013


SUPPORT

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

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

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


An artist’s rendering shows the new Margaret Murie Life Sciences Building that PDC Inc. Engineers is working on. The building contains several efficiency measures, including a radiant cooling system that is the first of its kind in Alaska and perhaps the United States. Image courtesy of PDC Inc. Engineers

floor heat to heat and cool the building as well—the first radiant-floor cooling system in Alaska and one of the first in the nation, PDC officials say. “It’s hard to imagine a building in Alaska whose innovation is in the cooling system,” says Steve Theno, PDC’s principal mechanical engineer. Rauchenstein says the building also contains a steam absorption plant which uses the steam to generate chilled water for cooling the buildings on the upper campus. The steam is generated as a byproduct of power generation needed to run the campus’ cooling systems. “The steam is essentially free,” he says. Daylighting controls are another neat feature, says PDC senior associate Robert Posma Jr. The building has a lot of glass, so outside facing spaces incorporated photo sensors that automatically adjust to the light level needed. So fewer lights might be needed on a sunny day, but the lights will be brighter if it’s dreary outside. Laboratory spaces vent directly outside, which can be a source of a lot of waste heat. Rauchenstein says a heat pipe heat recovery system is being installed in the exhaust streams that will harvest the heat for use in other places inside the building. Theno says other innovations were included, such as LED lighting and smart heating and light systems that sense when people are present in a room and can lower thermostats and turn off lights when people leave. Rauchenstein says clients are more frequently asking for these types of innovations but, ultimately, the project has to make monetary sense. The features included in the Life Sciences building, he says, will pay for themselves in fewer than 10 years. The building will be complete in spring 2013 and in use in the fall. Theno says energy costs have almost always been at the forefront of discussions when they’ve worked with rural communities in the past 15-20 years simply because energy costs were so high. But as energy costs rise, more clients in Southcentral Alaska are asking for buildings that are more efficient or environmentally sustainable. R Freelance journalist Rindi White lives in Palmer.

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www.akbizmag.com • Alaska Business Monthly • February 2013


Company Company

Top Top Executive Executive

Architects Alaska 900 W. 5th Ave., Suite 403 Anchorage, AK 99501 Phone: 907-272-3567

Mark Kneedler, Pres.

Bettisworth North Architects & Planners 212 Front St., Suite 200 Fairbanks, AK 99701 Phone: 907-456-5780

Charles Bettisworth, AIA/President

Bezek Durst Seiser 3330 C St., Suite 200 Anchorage, AK 99503 Phone: 907-562-6076

Daniel Seiser, Pres.

Blue Sky Studio 6771 Lauden Cir. Anchorage, AK 99502 Phone: 907-677-9078

Catherine Call, Owner

Design Alaska, Inc. 601 College Rd. Fairbanks, AK 99701 Phone: 907-452-1241

Jack Wilbur, Pres.

ECI/Hyer Architecture & Interiors 101 W. Benson Blvd., Suite 306 Anchorage, AK 99503 Phone: 907-561-5543

Mary Knopf, Principal/Interior Designer

Ivy & Co. Architects/Mark A. Ivy Corp. 3835 Spenard Rd. Anchorage, AK 99517 Phone: 907-563-5656

Mark Ivy, Principal Architect

Jensen Yorba Lott Inc. 522 W. 10th St. Juneau, AK 99801 Phone: 907-586-1070

Wayne Jensen, AIA/Pres.

kpb architects 425 G St., Ste. 800 Anchorage, AK 99501 Phone: 907-274-7443

Mike Prozeralik, Pres.

Kumin Associates Inc. 808 E. St., Suite 200 Anchorage, AK 99501 Phone: 907-272-8833

Charles Banister, Principal

Larsen Consulting Group Inc. 3710 Woodland Dr., Suite 2100 Anchorage, AK 99517 Phone: 907-243-8985

Wallace Swanson, Pres./CEO

Livingston Slone Inc. 3900 Arctic Blvd., Suite 301 Anchorage, AK 99503 Phone: 907-550-7400

Don Slone, PE

Martha Hanlon Architects Inc. PO Box 72292 Fairbanks, AK 99707 Phone: 907-458-7225

Martha Hanlon, AIA/Pres.

Michael L. Foster & Associates Inc. 13135 Old Glenn Hwy., Suite 200 Eagle River, AK 99577 Phone: 907-696-6200

Michael Foster, PE/Owner

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

Richard Reich, PE, Gen. Mgr.

USKH Inc. 2515 A St. Anchorage, AK 99503 Phone: 907-276-4245

Timothy Vig, Pres./Principal

WHPacific Inc. 300 W. 31st Ave. Anchorage, AK 99503 Phone: 907-339-6500

Robert Macomber, Pres.

AK AK Estab. Estab. Empls. Empls.

Services Services

1950

27

Architectural design, space planning, interior design, and master planning for commercial, industrial, residential, medical, religious and educational facilities statewide.

1976

26

Anchorage Office: 2600 Denali Street, Suite 710, Roy Rountree, AIA, Principal. Alaska architecture, landscape architecture, interior design and planning for healthcare, education, military, housing, libraries, museums, public safety, civic buildings, senior care, and commercial development.

1981

22

Master planning, space planning, concept development, design, grant assistance, project development, feasibility and development assistance.

2002

2

Architecture with a focus on residential and food service projects.

1957

61

Design Alaska provides architecture; civil, structural, mechanical, fire protection, electrical, and environmental engineering; landscape architecture; and surveying. The firm also offers planning, condition assessments, energy modeling, LEED, construction administration and commissioning.

1981

20

ECI/Hyer is an award-winning architecture, interior design, and planning firm based in Anchorage, Alaska. For over 30 years, our firm has been designing people places.

1984

5

Innovative residential and commercial designs for the Alaska environment.

1935

14

Planning, programing, design and construction administration for architecture, interior design, space planning and construction management.

1981

20

Award winning full service cold climate/arctic design experts in architecture, planning, landscape architecture, interior design, design-build; Native, federal, housing, healthcare, K-12 schools, retail/commercial projects; client oriented pre-design and energy efficient renovation/ expansion leader

1977

20

Kumin Associates provides planning and architectural and interior design for urban, rural and remote facilities throughout Alaska and in Washington, Greenland, Antarctica, and the Russian Far East.

1993

22

LCG is a multi-disciplined firm providing architecture, structural, civil and sanitation engineering, land surveying and mapping services. Our staff specializes in rural infrastructure projects and is experienced with traditional, force account and design/build project delivery.

1975

23

Architecture (all phases), civil engineering, construction administration.

1998

3

Architectural design and project planning.

1998

20

Environmental planning documents (EA/EIS), and full-service A/E firm with design/build, construction management, and general contracting capabilities.

1982

200

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

1972

95

USKH is a full-service, multi-discipline architectural and engineering firm. Our services include: architecture; civil, structural, transportation, mechanical and electrical engineering; surveying; landscape architecture; planning; and environmental services.

1981

90

Architecture and multidiscipline engineering planning and design; survey and mapping; planning, GIS, permitting and grant writing; environmental site assessments and natural resource services; geologists and environmental scientists; project management and construction administration services.

dlove@architectsalaska.com www.architectsalaska.com

info@bettisworthnorth.com www.bettisworthnorth.com

bds@bdsak.com www.bdsak.com

catherine@callbluesky.com www.callbluesky.com

mail@designalaska.com www.designalaska.com

contact@ecihyer.com www.ecihyer.com

ivyco@alaska.net www.ivyandco.com

www.jensenyorbalott.com

info@kpbarchitects.com www.kpbarchitects.com

kai@kuminalaska.com www.kuminalaska.com

holly@larsen-anc.com www.larsen-anc.com

lsi@livingstonslone.com www.livingstonslone.com

info@mh-architects.com www.mh-architects.com

hlm@mlfaalaska.com www.mlfalaaska.com

info@uicumiaq.com www.ukpik.com

marketing@uskh.com www.uskh.com

kjacobson@whpacific.com www.whpacific.com

www.akbizmag.com • Alaska Business Monthly • February 2013

99 ■

ALASKA BUSINESS MONTHLY’S 2013 ENGINEERING DIRECTORY

ARCHITECTURE FIRMS


ALASKA BUSINESS MONTHLY’S 2013 ENGINEERING DIRECTORY

ENGINEERING FIRMS Company Company

Top Top Executive Executive

Alaska Anvil Inc. 509 W. Third Ave. Anchorage, AK 99501 Phone: 907-771-1300

Cliff Freeman, Branch Manager

AMC Engineers 701 E. Tudor Rd., Suite 250 Anchorage, AK 99503-7457 Phone: 907-257-9100

Pat Cusick, Pres.

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

Jeff Kinneeveauk, Pres./CEO

BBFM Engineers Inc. 510 L St., Suite 200 Anchorage, AK 99501-1949 Phone: 907-274-2236

Dennis Berry, Pres.

Bezek Durst Seiser 3330 C St., Suite 200 Anchorage, AK 99503 Phone: 907-562-6076

Daniel Seiser, Pres.

Bratslavsky Consulting Engineers, Inc. 500 W. 27th Ave., Suite A Anchorage, AK 99503 Phone: 907-272-5264

Tanya Bratslavsky, Pres.

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

Travis Woods, Sr. Civil Engineer/CEO

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

Mark Lasswell, AK Pres./GM

CMH Consultants 801 W. Fireweed Ln., Suite 201 Anchorage, AK 99503-1866 Phone: 907-277-3800

F. Bell, PE, LS/CEO

Combs Engineering 503 Charteris St. Sitka, AK 99835-7042 Phone: 907-747-5725

AK AK Estab. Estab. Empls. Empls.

Services Services

1984

30

Full service consulting engineering for the Petro chemical industry.

1981

35

AMC Engineers is an award winning firm that specializes in mechanical, electrical, control and telecommunications engineering services in support of institutional, industrial and commercial projects. AMC also provides related services such as commissioning, life cycle cost analysis, energy modeling, and assistance with LEED accreditation.

info@deltaleasing.net anvilcorp.com

info@amc-engineers.com www.amc-engineers.com 1985

info@asrcenergy.com www.asrcenergy.com

5,000 AES offers expertise from the earliest regulatory stage to exploration, drilling support, engineering, fabrication, construction, project management, operations and maintenance and field abandonment.

1996

16

Structural engineering design and construction administration for new buildings and additions to existing buildings, analysis of existing buildings, including seismic evaluations and condition surveys, design of tanks and modules, and design of bridges (i.e. walkways and small trail bridges). Specialize in cold climates: Alaska and Antarctica.

1981

22

Master planning, space planning, concept development, design, grant assistance, project development, feasibility and development assistance.

1985

13

Bratslavsky Consulting Engineers, Inc. is a multi-discipline engineering and project management company specializing in full design, value engineering, tenant improvements, facility condition and ADA assessments, permitting, energy upgrades and audits, construction management and inspections, QA/QC, and other services.

1994

18

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

cmaynard@bbfm.com www.bbfm.com

bds@bdsak.com www.bdsak.com

mail@bce-ak.com www.bce-ak.com

info@bristol-companies.com www.bristol-companies.com 1946

bclemenz@ch2m.com www.ch2mhill.com/alaska

3,100 CH2M HILL offers consulting, engineering, procurement, logistics, fabrication, construction, construction management, operations and maintenance services that will support entire project life cycles.

1956

8

CMH Consultants, Inc. (CMH) has a 40-year history in Alaska providing engineering design, consultation, and construction support. Originally founded in 1956, as Crews, MacInnes, Hoffman, we are known as one of Alaska's oldest mechanical firms.

Chris Combs, PE

1994

1

Mechanical engineer providing HVAC and plumbing design services.

CRW Engineering Group, LLC 3940 Arctic Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-562-3252

D. Michael Rabe, Mng. Principal

1981

51

Engineering, surveying, planning, permitting, and construction management.

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

Jeff Yates, General Manager

1987

11

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

Del Norte Surveying Inc. PO Box 110553 Anchorage, AK 99511 Phone: 907-345-8003

Lisa Greer, Owner

1986

2

Professional land survey firm providing survey services to both the public and private sectors. Our clients have been the AK St DOT, Fish & Wildlife, National Park Service, MOA, FAA, Cook Inlet Housing, engineering firms, oil companies and misc. general contractors. DNS is certified as a woman and minority business.

Design Alaska, Inc. 601 College Rd. Fairbanks, AK 99701 Phone: 907-452-1241

Jack Wilbur, Pres.

1957

61

Design Alaska provides architecture; civil, structural, mechanical, fire protection, electrical, and environmental engineering; landscape architecture; and surveying. The firm also offers planning, condition assessments, energy modeling, LEED, construction administration and commissioning.

DOWL HKM 4041 B St. Anchorage, AK 99503 Phone: 907-562-2000

Stewart Osgood, Pres.

1962

150

NEPA documentation, agency scoping and permitting and public involvement.

Doyon Emerald 11500 C St., Suite 150 Anchorage, AK 99515 Phone: 907-258-8137

David Johnston, VP/Eng. Mgr.

1996

19

Provides health, safety, security and environmental consulting including development and integration of environmental management systems, project management, environmental site assessments, regulatory and permitting, NEPA support, SPCC, SWPPP, environmental planning, and community relations.

EDC Inc. 213 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-276-7933

John Faschan, P.E./Pres.

1980

8

■ 100

marketing@frbcmh.com www.frobertbell.com

info@crweng.com www.crweng.com

jyates@datem.com www.datem.com

lgreer@dnsalaska.com

mail@designalaska.com www.designalaska.com

jpayne@dowlhkm.com www.dowlhkm.com

info@doyonemerald.com www.doyonemerald.com

info@edc-alaska.com www.edc-alaska.com

Mechanical and electrical engineering services for municipal, industrial and commercial facilities. Rural water and wastewater and energy systems.

www.akbizmag.com • Alaska Business Monthly • February 2013


Company Company

Top Top Executive Executive

EHS - Alaska Inc. 11901 Business Blvd., Suite 208 Eagle River, AK 99577 Phone: 907-694-1383

Robert French, Principal in Charge

Electric Power Systems, Inc. 3305 Arctic Blvd., Suite 201 Anchorage, AK 99503 Phone: 907-522-1953

David Burlingame, PE/Mng. Partner

EMC Engineering 8301 Old Seward Hwy. Anchorage, AK 99518 Phone: 907-644-3923

Ryan Bloom, Owner

Enterprise Engineering, Inc. 2525 Gambell St., Suite 200 Anchorage, AK 99503 Phone: 907-563-3835

Kevin Murphy, Pres.

Environmental Management Inc. 206 E. Fireweed Ln., Suite 201 Anchorage, AK 99503 Phone: 907-272-9336

Larry Helgeson, Principal Eng.

F. Robert Bell & Associates 801 W. Fireweed Ln., Suite 201 Anchorage, AK 99503-1801 Phone: 907-274-5257

Bob Bell, PE/LS/CEO

Fred Walatka & Associates 3107 W. 29th Ave. Anchorage, AK 99517-1704 Phone: 907-248-1666

Fred Walatka, Owner

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

Scott Widness, Alaska Div. Mgr.

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

Mark Musial, Principal/Mgr.

Haight & Associates, Inc. 526 Main St. Juneau, AK 99801 Phone: 907-586-9788

Benjamin Haight, Pres./CEO

Hattenburg Dilley & Linnell 3335 Arctic Blvd., Suite 100 Anchorage, AK 99503 Phone: 907-564-2120

Scott Hattenburg, Principal/Pres.

HDR Alaska Inc. 2525 C St., Suite 305 Anchorage, AK 99503 Phone: 907-644-2000

Duane Hippe, Sr. VP/PE

ICRC - a subsidiary of VSE Corporation 421 W. First Ave., Suite 200 Anchorage, AK 99501 Phone: 907-561-4272

Carl Williams, CEO/Pres.

Langdon Engineering 318 W. 10th Ave. Anchorage, AK 99501 Phone: 907-272-1789

Albert Swank Jr., PE/Owner

Lanning Engineering PO Box 470 Ester, AK 99725-0470 Phone: 907-479-2444

David Lanning, PE/Principal

Larsen Consulting Group Inc. 3710 Woodland Dr., Suite 2100 Anchorage, AK 99517 Phone: 907-243-8985

Wallace Swanson, Pres./CEO

Little Susitna Construction Co. 821 N. St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571

Tammie Smith, Gen. Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

1986

9

Hazardous building materials identification and project design. Code compliance and plans review. Industrial hygiene and worker safety, health and safety plans, air monitoring.

2005

82

Electric Power Systems offers a wide range of experience and education in the area of power system operation, engineering, and administration. EPS provides a full range of services, from planning studies, design, construction, and start-up/commissioning to periodic testing and maintenance.

2002

50

Provides construction administration, civil engineering, quality control management, materials testing and special inspection services.

1991

36

Established in 1972, EEI provides multidiscipline consulting engineering and specialty services to public and private clients throughout Alaska and worldwide. Our Anchorage office is home to a thriving team of 36 engineers, surveyors, designers, and support staff. With every project and every client we work together to bring clarity to the complex.

1988

13

Environmental and civil engineering, consulting, plus related services and training. A team of dedicated professionals working to make Alaska cleaner and safer for tomorrow.

1974

80

Engineering services and land surveying services.

1967

4

We do plot plans, as builts, ALTA's and lot staking.

1994

8

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

1980

40

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

1980

6

Consulting electrical engineers serving Southeast Alaska since 1980.

2000

52

Hattenburg Dilley & Linnell, LLC is an Alaskan consulting firm specializing in civil, geotechnical, transportation, and arctic engineering, environmental and earth science, surveying, and construction management for government and industry.

1979

130

Engineering services cover civilstructural engineering for transportation, water/ wastewater, solid waste, federal, military, and oil & gas infrastructure. Specialty services in design-build. Engineering supported by full range of environmental/planning staff. AK offices supported by 8,000 HDR staff nationwide.

1983

30

Project management, project controls, quality inspections, SWPP plans, permitting, civil and environmental engineering, construction administration.

1980

1

High technology nuclear physics research, nuclear medicine, biophysics, bioengineering, cryogenics, ultra high vacuum, thermal and other engineering and scientific areas to include high energy particle accelerators.

1991

2

Consulting civil and structural engineering.

1993

22

LCG is a multi-disciplined firm providing architecture, structural, civil and sanitation engineering, land surveying and mapping services. Our staff specializes in rural infrastructure projects and is experienced with traditional, force account and design/build project delivery.

ehsak@ehs-alaska.com www.ehs-alaska.com

eps@epsinc.com www.esgrp.net

info@emcalaska.com www.emcalaska.com

info@eeiteam.com www.eeiteam.com

lhelgeson@emi-alaska.com www.emi-alaska.com

bbell@frbcmh.com frobertbell.com

walatkas@aol.com walatkas.com

swidness@fugro.com www.fugro.com

www.golder.com

ben@haight-assoc.com www.haight-assoc.com

info@hdlalaska.com www.hdlalaska.com

info@hdrinc.com www.hdrinc.com

info@ICRCsolutions.com www.ICRCsolutions.com

le-m@ak.net

lanningak@acsalaska.net

holly@larsen-anc.com www.larsen-anc.com

littlesu@ak.net littlesu.com

1980

1,020 General, mechanical and electrical contractor. Architects, civil, mechanical and electrical engineers, licensed in 11 states. Construction project management. Importer, exporter and global project consultation.

www.akbizmag.com • Alaska Business Monthly • February 2013

101 ■

ALASKA BUSINESS MONTHLY’S 2013 ENGINEERING DIRECTORY

ENGINEERING FIRMS


ALASKA BUSINESS MONTHLY’S 2013 ENGINEERING DIRECTORY

ENGINEERING FIRMS Company Company

Top Top Executive Executive

Livingston Slone Inc. 3900 Arctic Blvd., Suite 301 Anchorage, AK 99503 Phone: 907-550-7400

Don Slone, PE

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

Jim Sawhill, Pres.

MBA Consulting Engineers Inc. 3812 Spenard Rd., Suite 200 Anchorage, AK 99517 Phone: 907-274-2622

Bradley Sordahl, Principal

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

Jeffrey Baker, AK Office Principal

Michael L. Foster & Associates Inc. 13135 Old Glenn Hwy., Suite 200 Eagle River, AK 99577 Phone: 907-696-6200

Michael Foster, PE/Owner

Monrean Engineering & Associates PO Box 9343 Ketchikan, AK 99901-4343 Phone: 907-247-5920

Fred Monrean, PE

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

Chris Brown, Alaska Reg. Mgr.

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

Rock Hengen, Pres./Gen. Mgr.

NORTECH Inc. 2400 College Rd. Fairbanks, AK 99709-3754 Phone: 907-452-5688

John Hargesheimer, Pres.

Northern Latitude Associates PO Box 61201 Fairbanks, AK 99706 Phone: 907-479-6370

Wayne Larson, PE/Pres.

Northern Mechanical Engineering PO Box 113076 Anchorage, AK 99511-3076 Phone: 907-243-7254

Jay Smith, PE/Pres.

O'Neill Surveying & Engineering PO Box 1849 Sitka, AK 99835 Phone: 907-747-6700

Patrick O'Neill, PE/RLS/Owner

PDC Inc. Engineers 1028 Aurora Dr. Fairbanks, AK 99709 Phone: 907-452-1414

Royce Conlon, Envr. Principal/Pres.

PM&E Services LLC 123 E. 24th Ave. #11 Anchorage, AK 99503 Phone: 907-222-5059

Damien Stella, Principal

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

John Pickering, Pres.

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

David Matthews, VP, AK Area Mgr.

Quest Engineering Inc. PO Box 210863 Anchorage, AK 99521 Phone: 907-561-6530

Marc Cottini, Pres./Owner

■ 102

AK AK Estab. Estab. Empls. Empls.

Services Services

1975

23

Architecture (all phases), civil engineering, construction administration.

1949

79

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

1989

16

MBA Consulting Engineers, Inc., established in 1989, is a full service mechanical and electrical consulting engineering firm specializing in arctic, subarctic and northern maritime design.

1942

46

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

1998

20

Environmental planning documents (EA/EIS), and full-service A/E firm with design/build, construction management, and general contracting capabilities.

1997

1

Civil engineering, surveying, wastewater design, subdivisions, structural engineering, storm drainage design, foundation engineering, inspections, engineering reports, marine structures, permitting, etc.

1977

40

Water, wastewater, environmental remediation, permitting and power.

1997

425

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

1979

32

Environment Energy, Health and Safety: A multidisciplined professional consulting firm with registered engineers and certified industrial hygienists on staff providing environmental, engineering, energy auditing industrial hygiene and health and safety professional services throughout Alaska.

1977

1

Engineering services.

1991

1

Automotive Engineering, accident reconstruction, failure analysis.

1997

4

O'Neill Surveying & Engineering is a land surveying and civil engineering company specializing in land development, but active in all aspects of land surveying as well as road and utility development and design.

1975

84

Supports highway, aviation, utility, and facility projects by providing environmental expertise for routes and site selection; assessing potential impacts to specific environmental categories such as wetlands and hazardous materials and developing designs to address identified environmental issues.

1999

1

Project management and civil engineering support to a broad range of clients from municipal utilities to commercial and light industrial facilities.

1979

77

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

1974

50

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

1996

3

lsi@livingstonslone.com www.livingstonslone.com

k.ayers@lounsburyinc.com www.lounsburyinc.com

mbaconsulting@alaska.com

www.mbakercorp.com

hlm@mlfaalaska.com www.mlfalaaska.com

fmonrean@kpunet.net

chris.brown@mwhglobal.com www.mwhglobal.com

info@nanaworleyparsons.com www.nanaworleyparsons.com

hargy@nortechengr.com www.nortechengr.com

northernlatitude@acsalaska.net

nmeinc@earthlink.net

oneillengr@ak.net

www.pdceng.com

dstella@gci.net

www.pndengineers.com

dmatthews@pricegregory.com www.pricegregory.com

Civil engineering, environmental compliance, and construction management services.

engineers@questengineers.com

www.akbizmag.com • Alaska Business Monthly • February 2013


Company Company

Top Top Executive Executive

R&M Consultants Inc. 9101 Vanguard Dr. Anchorage, AK 99507-4447 Phone: 907-522-1707

Bret Coburn, CEO

R&M Engineering Inc. 6205 Glacier Hwy. Juneau, AK 99801-7906 Phone: 907-780-6060

Michael Story, PE/Pres.

R&M Engineering-Ketchikan Inc. 355 Carlanna Lake Rd. Ketchikan, AK 99901 Phone: 907-225-7917

Trevor Sande, Pres.

RBA Engineers, Inc. 301 E. Fireweed Ln., Suite 100 Anchorage, AK 99503 Phone: 907-276-3768

Manju Bhargava, Pres.

Reid Middleton Inc. 4300 B St., Suite 302 Anchorage, AK 99503 Phone: 907-562-3439

Bob Galteland, Pres.

Rodney P. Kinney Associates Inc. 16515 Centerfield Dr., Suite 101 Eagle River, AK 99577 Phone: 907-694-2332

Rodney Kinney, Jr. PE/Pres.

RSA Engineering Inc. 2522 Arctic Blvd., Suite 200 Anchorage, AK 99503 Phone: 907-276-0521

Mack Bergstedt, Pres.

Schneider Structural Engineers 8811 Toloff St. Anchorage, AK 99507 Phone: 907-561-2135

Jeff Robertson, PE/Principal

Shannon & Wilson Inc. 2355 Hill Rd. Fairbanks, AK 99709-5326 Phone: 907-458-3103

Stafford Glashan, VP/Anch. Offc. Mgr.

Shaw Alaska, Inc. 2000 W. Int'l Airport Rd., Suite D-3 Anchorage, AK 99502 Phone: 907-243-6300

Kim Marcus, Dist. Mgr./Principal

Stephl Engineering LLC 3900 Arctic Blvd., Suite 204 Anchorage, AK 99503 Phone: 907-562-1468

Matt Stephl, PE

UAF INE PO Box 755910 Fairbanks, AK 99775 Phone: 907-474-5457

Daniel White, Dir.

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

Richard Reich, PE, Gen. Mgr.

URS 700 G St., Suite 500 Anchorage, AK 99501 Phone: 907-562-3366

Joe Hegna, Alaska Ops Mgr./VP

USKH Inc. 2515 A St. Anchorage, AK 99503 Phone: 907-276-4245

Timothy Vig, Pres./Principal

VEI Consultants 1345 Rudakof Cir., Suite 201 Anchorage, AK 99508-6105 Phone: 907-337-3330

Vern Roelfs, Pres.

WHPacific Inc. 300 W. 31st Ave. Anchorage, AK 99503 Phone: 907-339-6500

Robert Macomber, Pres.

AK AK Estab. Estab. Empls. Empls.

Services Services

1969

125

NEPA documentation and compliance, initial site assessments, phase I and II ESAs, environmental assessments, soil and groundwater monitoring, remediation programs, UST removal/decommissioning, site selection, revegetation and restoration, erosion control and more.

1968

18

R&M provides civil, structural and geotechnical engineering as well as land surveying and materials testing and inspection in Southeast Alaska: Craig, Haines, Hoonah, Gustavus, Juneau, Ketchikan, Klawock, Sitka, Skagway, Wrangell and other Southeast Alaska communities.

1989

17

R&M Engineering-Ketchikan is a civil and soils engineering and surveying company serving southern Southeast Alaska from offices in Ketchikan, Wrangell and Craig. We also specialize in materials testing and inspection and have an ADEC certified microbiology lab.

1977

7

Provides mechanical & electrical engineering services statewide inclusive of enhanced commissioning, specially for military construction. In 2012, the firm has embarked upon its 35th year with Fort Greely Missle Defense Chiller, Grizzly's Pizza & Wings, JBER Commissioning Projects, Flying Museum and Alaska Airlines Upgrade.

1953

6

We offer engineering, planning, and surveying through the disciplines of structural, civil, aviation, waterfront, and transportation to public and private sector clients throughout the Pacific Northwest and Alaska. Our Anchorage office has grown to be one of the most service-oriented structural engineering firms in Alaska.

1980

23

Rodney P. Kinney Associates, Inc. (RPKA) is both a family-owned and Native American civil engineering and surveying firm which was founded in 1980. The firm is operated by the three Kinney brothers who are tribal members of the Native Village of Savoonga. RPKA has the knowledge and expertise to assist with delivering transportation projects.

1983

46

Mechanical/electrical consulting engineering services. Notable projects: Kipnuk School renovation/addition, Boney Courthouse remodel, Eielson AFB Party Dorms, Bethel Native Corporation store/theater, Kotzebue Magnet School renovation/addition, IDIQ A/E services & engineering for various NSF projects at Antarctica & New Zealand.

2000

11

Engineering services.

1974

315

Shannon & Wilson is a nationally renowned engineering and applied earth sciences firm with offices in Anchorage, Fairbanks, and the Lower 48. Our services include geotechnical analysis and design; frozen ground engineering; environmental compliance, assessments, and remediation; earthquake analysis; and materials testing.

2002

3

A vertically-integrated provider of technology, engineering, consulting, procurement, pipe fabrication, construction and maintenance services for government and private-sector clients in the energy, chemicals, environmental and infrastructure markets.

1996

6

Engineering firm specializing in trenchless technology engineering including horizontal directional drilling, cured in place pipe lining water sewer, closed circuit television inspection (CCTV), pipe condition assessment, sliplining, auger boring and structure rehabilitation.

1982

85

The Institute of Northern Engineering provides research and engineering solutions for the world's cold regions and beyond. INE conducts research in all areas of engineering, including, but not limited to: civil and environmental, petroleum, mining, geological, electrical, computer and mechanical engineering.

1982

200

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

1904

100

Civil/structural/transportation engineering design services, analysis/response, containment sites, cultural/historical/archaeological/land use/noise & threatened/ endangered species studies, fisheries/geology/soils expertise, GIS/AutoCAD, Section4f evaluations, wetland delineation, wildlife/vegetation/socioeconomic analyses.

1972

95

USKH is a full-service, multi-discipline architectural and engineering firm. Our services include: architecture; civil, structural, transportation, mechanical and electrical engineering; surveying; landscape architecture; planning; and environmental services.

1981

6

Civil and environmental engineering, land surveying.

1981

90

Architecture and multidiscipline engineering planning and design; survey and mapping; planning, GIS, permitting and grant writing; environmental site assessments and natural resource services; geologists and environmental scientists; project management and construction administration services.

email@rmconsult.com www.rmconsult.com

rmengineering@rmjuneau.com www.rmjuneau.com

trevorsande@rmketchikan.com www.rmketchikan.com

fdesk@rbaengineers.com www.RBAEngineers.com

kandersen@reidmiddleton.com www.reidmiddleton.com

rpka@rpka.net rpka.net

mbergstedt@rsa-ak.com www.rsa-ak.com

jrobertson@sastructural.com www.sastructural.com

eam@shanwil.com shannonwilson.com

jack.james@shawgrp.com www.shawgrp.com

mstephl@stephleng.com www.stephlengineering.com

sboatwright@alaska.edu ine.uaf.edu

info@uicumiaq.com www.ukpik.com

www.urscorp.com

marketing@uskh.com www.uskh.com

vernr@veiconsultants.com veiconsultants.com

kjacobson@whpacific.com www.whpacific.com

www.akbizmag.com • Alaska Business Monthly • February 2013

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ALASKA BUSINESS MONTHLY’S 2013 ENGINEERING DIRECTORY

ENGINEERING FIRMS


ALASKA THIS MONTH Compiled By Mari Gallion

dining

Photos courtesy of Table 6

Table 6 Restaurant

“T

here’s always a time in your life that you just feel like having a fabulous cheeseburger,” says Lynn Perez, coowner of Table 6 in midtown Anchorage with her husband, chef Alex Perez—and if a patron applauds house-made buns, hand-pressed patties and sauces made from scratch, they will find that fabulous burger at Table 6. “We make our own chicken stock, we make our own demi-glace, we make our own bread… we buy fruits and vegetables from Vanderweele farms in Palmer…we partner with Alaska Pasta to stuff our fillings into our ravioli…anything we can make in-house, we do.” Alex and Lynn were no strangers to the restaurant industry when they opened Table 6 in Midtown. Having dominated the upscale dining market in Eagle River for the last twelve years with their first restaurant, Haute Quarter Grill, the Perez family had the know-how and the inspiration to give the people what they want: a come-as-you-are casual restaurant with high-quality, fun-type foods. The restaurant’s most popular dishes are finer versions of everyman’s food: nachos, burgers, fries, soups, wings, rings and fresh artisanal pastas. “Happy hour is from 4 p.m. to 6 p.m. and 9 p.m. to close, and features six dishes for six dollars each,” Lynn says. Whether seeking a dinner, an after-work or pre-movie nosh, or a high-quality lunch in under an hour, Table 6 delivers in price, quality and convenience. Table 6 is located at 3210 Denali Street in Anchorage. table6.net R

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www.akbizmag.com • Alaska Business Monthly • February 2013


ALASKA THIS MONTH Compiled By Tasha Anderson

trAVel

Photo by Tim Rains/Courtesy of the National Park Service

WinterFest

A boy breaks from other activites to enjoy the s’mores station during Winterfest.

M

any Alaskans have a love-hate relationship with our six month winter season, which is beautiful, dark, breathtaking and dangerous all at once. The Denali National Park Service, in the spirit of loving winter and longing for its demise, sponsors Winterfest in partnership with the Denali Borough and the Denali Borough School District. In its twelfth year, Winterfest starts Friday, Feb. 22, and ends Sunday, Feb. 24. While many Alaskan experiences are geared toward building an attractive tourism industry, Winterfest is really for those who call Alaska home. “It’s kind of an opportunity to thank the local community and people in the area who are here year-round,” says Naaman Horn, the Denali National park interpretive supervisor. “We certainly welcome tourists as well, but it’s more of a local, community event,” Horn explains. On Saturday, participants can enjoy and on-site ice carver or participate in the snow sculpting competition, with the park providing 3-foot-by-5-foot snow blocks. There are also free dog sled rides intended for children, but “if there’s room, adults can ride as well,” Horn says. The festival also features a s’mores station, all day games and activities, and Saturday’s festivities usually end with a chili cook-off and talent competition. All events are free to the public. explorefairbanks.com/events R

www.akbizmag.com • Alaska Business Monthly • February 2013

105 ■


ALASKA THIS MONTH Compiled By Tasha Anderson

entertAinment

Photo courtesy of Tammy Phillips

A Taste of Art—Puttin’ on the Ritz

An example of featured artist Tammy Phillips’s watercolor works.

O

n Feb. 16 let your entertainment benefit you and your community; join Fairbanks Counseling and Adoption at their 25th annual “A Taste of Art” fundraiser, which this year is a spectacular event sporting the 1920’s inspired theme of “Puttin’ on the Ritz: A Gala Event for a Swell Cause,” complete with zuit suits and flappers. The evening will include silent and live auctions, musical entertainment, a sit down dinner with Hot Licks Homemade Ice Cream, and a photo booth. Located in the Westmark Hotel Gold Room in Fairbanks, this year’s auctions will offer Alaskan artwork, unique crafts, travel packages, services, merchandise and more. In particular, Tammy Phillips and Margaret Donat, this years featured artists, will present their works of watercolor and fused glass, respectively. All proceeds from the event will fund the programs and services of FCA, which include adoption, individual and family counseling, homeless and at-risk youth services, among others. These services are provided “to support the sanctity of all life by strengthening families, promoting healthy parenting and advocating for children. It is our mission to help individuals and families to heal, with a special emphasis on helping children and adolescents,” according to Camille Connelly-Terhune, FCA’s executive director. The doors will open at 6 p.m., dinner starts at 7 p.m. and the auction begins at 8 p.m. For more information about the event, including ticket prices and availability, please contact Erin Chalstrom at 907460-3547 or echalstrom@yourstoryak.com. fcaalaska.org/a_taste_of_art.html R Salmon made of fused glass by featured artist Margaret Donat. Photo courtesy of Margaret Donat

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www.akbizmag.com • Alaska Business Monthly • February 2013


EVENTS CALENDAR

Compiled By Alaska Business Monthly Staff

Anchorage 6-10

Anchors Aweigh Boat Show

Events include daily boat safety classes and education seminars. Information and booths cover river rafting, river boats and ocean going vessels. Participants include members of the Alaskan Marine Dealers Association, the Coast Guard, NOAA and others. Shuttle services available. Dena’ina Civic and Convention Center, various times. anchorsaweighboatshow.com

7-17

The Last of His Kind

This is the world premiere of playwright and storyteller Jack Dalton’s fifth play. It is the story of the last indigenous person on Earth, locked in a laboratory dedicated to “saving his people”. Directed by Ed Bourgeois. Out North Contemporary Art House, 8 p.m.; Sunday matinee, 3 p.m. outnorth.org

15-17

Sitka Summer Music Festival: Winter Classics

Classical music concert featuring violinist Philippe Quint, cellist Zuill Bailey, pianist Navah Perlman, and pianist Eduard Zilberkant. Sponsored by Alaska Airlines. Grant Hall, APU, Feb. 15 &16, 7:30 p.m.; Feb. 17, 4:30 p.m. sitkamusicfestival.org

15, 23

Honk!, Jr.

Winner of the 2000 Olivier Award for best new musical, Honk!, Jr. is a contemporary retelling of Hans Christian Andersen’s The Ugly Duckling with a charming and whimsical musical score. Presented by the Alaska Theatre of Youth. Alaska Center for the Performing Arts, Feb. 15, 7 p.m.; Feb. 23, 2 p.m. and 7 p.m. myalaskacenter.com

16

The Alaska Marine Gala

This year’s event is an opportunity for the scientific, corporate and education communities to come together and celebrate Alaska’s seas and features guest speaker William Hurley, senior vice president and chief zoological officer of the Georgia Aquarium. Events include VIP reception, cocktails, and silent and live auctions. Dena’ina Civic and Convention Center, 5:30 p.m. alaskasealife.org

2/22-3-3

Anchorage Fur Rondy

More than 15 events and 100 other activities are found at Alaska’s largest and oldest winter festival, known locally as Fur Rondy, including the Outhouse races, Running of the Reindeer, Rondy World Championship Sled Dog races and the Yukigassen, a team snowball fight tournament. Various locations and times. furrondy.net

Fairbanks 21-23

Festival of Native Arts

The theme of this year’s festival, which promotes cultural education, is “Unity Through Cultures.” Events include dance and music performances, workshops, film screenings, and art and food vendors. UAF campus, various locations and times. fna.community.uaf.edu/about-festival

2/26-3/31

BP World Art Ice Championships

mance features Homer dancers from youth to adult performing dance in a variety of styles. Bunnell Street Arts Center, Friday, 7 p.m.; Saturday, 3 p.m. and 7 p.m. bunnellstreetgallery.org

Juneau 9-10

Wearable Arts Extravaganza: Organix

The major fundraising event for the Juneau Arts & Humanities Council includes a fashion show and silent auctions both days. The annual Mayor’s Awards for the Arts will be presented at the Sunday Wearable Art show. Items valued at $300 or more will be posted on JAHC’s website for online pre-bidding. Juneau Arts & Humanities Council, Saturday, 7 p.m.; Sunday, 2 p.m. jahc.org

Ketchikan 9

WISH: Women of Distinction Banquet

The fifth annual Women In Safe Homes dinner and awards ceremony honors and celebrates extraordinary women in the community who have improved the lives of women and children throughout Ketchikan and Southeast Alaska. Ketchikan High School youth manage the surveying and prepare the meal. This event also includes a silent auction. Ted Ferry Civic Center, 5:30 p.m. wishak.org

Talkeetna 14-16

Complexities of Love Valentines Variety Show

This is an open-call talent show catering to a mature audience. Community members present song, poetry, film, game or other stageworthy performances. Check with local restaurants for dinner or wine specials in collaboration with this year’s show. Sheldon Community Arts Center, 8 p.m. talkeetnachamber.org

Valdez 20

The Good Lovelies

This Canadian all-female trio known for sass and on-stage wit, perform folk music and promote their newly released album “Let the Rain Fall.” Valdez Civic Center, 7 p.m. valdezartscouncil.org

Wasilla 16

Mat-Su Plunge

Proceeds raised go to local nonprofits in the form of grants. Many participants make the plunge into icy waters in costumes, but it’s not required. Wasilla Lake Resort, registration 10 a.m., jumping starts at noon. matsuplunge.org

Wrangell 7-10

Tent City Days Festival

This is an annual celebration of the Gold Rush days. Events include a fashion show, dog show, mini-carnival, games, bed races, performances, and cribbage, pool and darts tournaments. Various locations and times. wrangellchamber.org

This month-long event involves more than 70 teams from all over the world and attracts more than 100 ice artists. The show features single and multiblock ice sculptures. The center of the park provides ample open space for all the Kids Park activities—highlighted by big slides and an ice skating rink. George Horner Ice Park, 10 a.m. to 10 p.m. daily. www.icealaska.com

Girdwood 15

Young Dubliners

Celebrate St. Patrick’s Day early this year with the Young Dubliners. The band considers themselves to be ambassadors of Celtic and American rock, and their dual Irish and American results in a distinctive and richly varied musical palette. Sitzmark Bar & Grill, 10 p.m. alyeskaresort.com

Homer 8-9

Jazzline

Directed and choreographed by Jocelyn Shiro-Westphal, this perfor

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Visitor industrY Photos by Clark James Mishler, courtesy of Greater Anchorage, Inc.

Fur Rondy More than just fun and games BY SUSAN SOMMER

A

s a young adult, Jen Harrington was always thrilled to pull the Rondy Guide from the Sunday paper in mid-February. “Finally!” she’d say, “something fun to do!” That latewinter sentiment is echoed today every year across Alaska. Just when we’ve all had about enough of the cold snaps and icy roads, and the holidays are a distant memory, here comes Fur Rondy to the rescue! Featuring contests and culture, sled dog races and snow sculptures, fur auctions and fireworks, Rondy has something for everyone. And Harrington, who grew up in Anchorage, is more involved now than ever; last summer, she became the nonprofit’s executive director. Fur Rondy is the annual antidote to the winter blues. Named the best winter festival in 2011 in National Geographic Traveler magazine, Rondy gets