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LO N G -T E R M
Vision A SRC .COM
Protecting the Corporation’s Long-Term Future Story on page 3.
DA RI A N DA NNER Iḷisaġvik College celebrates first bachelor’s degree graduate Read more on page 10.
Table of contents President’s message..............................................................................................1 Long-Term Vision...................................................................................................3 Why ASRC is involved in the OneALASKA Effort...................................................8 ASRC Federal plays vital role in SpaceX mission..................................................9 Iḷisaġvik College celebrates first bachelor’s degree graduate.......................... 10 ASRC Federal names Jennifer Felix president and CEO ................................... 11 AGC suspends 2020 North Slope Marketplace competition............................. 14 Teresa Imm retires from ASRC........................................................................... 14 ASRC hosts virtual annual meeting from Utqiaġvik.......................................... 15 What does the CARES Act litigation mean for ASRC?........................................ 16 RSI EnTech helps demolish structure ................................................................ 18 Shareholder creates facecoverings for refinery workers.................................. 19
Qiksiksrautiqaġniqput Avanmun RESPECT FOR EACH OTHER We embrace and respect the cultural diversity of our organization through sharing and team building for continued trust and connection.
President’s message RE X A . ROCK SR .
Even though 2020, at least so far, hasn’t quite turned out to be the year we all had anticipated, it has cast a spotlight on the flexibility and ingenuity of many across the globe who are making the best of the situation, despite the odds.
“I’m confident we’re making the right, and even difficult, decisions today that will bring benefits and increased stability for the Corporation tomorrow.” At Arctic Slope Regional Corporation, this is a time to show our resiliency by making decisions that will provide lasting benefits to the company, our shareholders, our employees and our North Slope communities. Mitigating the impacts of the global COVID-19 pandemic – with the safety, health and well-being of our employees as our top priority – has been lined with challenges as well as opportunities. I’m thankful for the long-term vision of our board as well as the dedication and hard work from our senior leadership team and the large number of employees across our family of companies. I’m confident we’re making the right, and even difficult, decisions today that will bring benefits and increased stability for the Corporation tomorrow.
My sincere thanks to everyone who helped to make the 2020 ASRC annual meeting a success. Even though we couldn’t travel to each community to hear from shareholders face-to-face, I’m grateful we were able to provide details surrounding our operational and financial performance in 2019 and answer questions on a variety of topics – from the impact of the coronavirus on our companies to why we are supporting the effort to defeat Ballot Measure 1, also known as the Fair Share Act. If you missed tuning in to the webcast of the virtual annual meeting, you can watch a re-broadcast on the IAmInupiaq.com website. As we all continue to adjust to the new regulations, travel limitations and guidelines surrounding this worldwide health emergency, it’s encouraging to see the entrepreneurial spirit alive and well within our shareholder community. Inside this newsletter, you’ll see how a shareholder from the Interior is providing a critically-needed service by sewing and distributing facecoverings, used now by some employees at Petro Star. Another story you’ll read in this newsletter outlines a literal out-of-this-world effort by a team of ASRC Federal employees, who played a vital role in the launching of NASA’s SpaceX Demo-2 mission Continued on page 2
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in late May. It was the first launch of astronauts on an American rocket from American soil since the last space shuttle mission in 2011, headed to the International Space Station as part of NASA’s Commercial Crew Program. It was spectacular to watch the successful splash down of astronauts Robert Behnken and Douglas Hurley in early August. Congratulations to the AFHC team. Speaking of ASRC Federal, I’d like to welcome Jennifer Felix, who came on board as the company’s new president and CEO this past spring. She has more than 25 years of industry experience, and I wish Jennifer the best in her new role. Lastly, congratulations to the teams who safely and successfully took part in the spring whale harvest. It was again plentiful this year, with 28 bowheads landed in our region – 12 in my hometown of Point
Hope, 13 in Utqiaġvik and three in Wainwright. This harvest will help to feed our communities throughout the summer and I’m very grateful for everyone’s efforts. Congratulations as well to those who joined the celebrations in our region – the various Nalukataq observances and the Qagruq celebration in Tikiġaq. Please stay safe and enjoy the short but beautiful Alaska summer. Even during this time of COVID-19, we all have something to be thankful for. Taikuu, and God’s blessings.
Rex A. Rock Sr. President and CEO
LO N G -T E R M
Vision At ASRC, this is a time to show our resiliency by making decisions that will provide lasting benefits to the company, our shareholders, our employees and our North Slope communities.
As 2019 was coming to a close, health experts had identified a potentially deadly and highly contagious virus, originating from the heavily populated city of Wuhan, the capital of Hubei Province in the People’s Republic of China. By late January of the New Year, coronavirus disease 2019, or COVID-19, was already recognized as an international health emergency, and barely two months later, had grown into a full-blown global pandemic. This health crisis, unlike any other we’ve seen in generations, adversely affected the lives of millions across the world, including those at Arctic Slope Regional Corporation, where the health, safety and well-being of our shareholders, communities and employees has been, and continues to be, our top priority.
COVID-19, and the wide-reaching response to contain it, has negatively impacted operations across the ASRC family of companies; even now, more than seven months into the year, the dynamic situation continues to affect the aggressive short- and long-term targets we had set for earnings and employment, as well as the amount we are able to distribute in the form of shareholder dividends. As these factors continue to change and unfold, we still cannot fully gauge the complete impact these events will have on the Corporation, but we do expect, and are preparing for, a very challenging 2020 and possibly beyond.
U.S. COVID cases & oil price trends (pb= per barrel)
$70 pb $55 pb
$49 pb 2.6m $28 pb 1.7m
1m $14 pb January
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In this article, weâ€™d like to briefly explain the financial and operational actions being taken to mitigate the effects of the coronavirus and the drop in the price of North Slope crude. These measures are being taken to protect the long-term viability of our Corporation, and allow ASRC to continue to provide meaningful dividends far into the future. We are a resilient company, and will eventually emerge from these challenges in a position of strength. Your patience and understanding is greatly appreciated as we chart a revised course for our long-term success.
Can you explain how COVID-19, combined with low oil prices, have impacted the operations of ASRC across Alaska and the Lower 48? Without question, the COVID-19 global pandemic and the lowest oil prices in decades are creating an unexpected crisis that we have not seen in our lifetime.
In Alaska, oil prices declined from over $70 per barrel at the beginning of the year to below zero for a period of time and averaged less than $29 per barrel in the second quarter. This massive decline directly impacted revenues that ASRC receives from its royalty position. The decline in oil prices, combined with travel and workplace restrictions related to COVID-19, forced our customers in the Energy Support Services segment to dramatically scale back their operations and cancel exploration activities. The reduced demand for gas, diesel and jet fuel â€“ as well as the resulting decline in North Slope oil prices â€“ impacted our Petroleum Refining and Marketing segment directly. Our Lower 48 businesses, particularly the Industrial Services segment, have been impacted by the stayat-home orders that have been ordered across the nation. The majority of our work in this segment is done at customer locations, and those locations have been closed to all work other than operations deemed to be critical. Fortunately, the diversification efforts ASRC has put in place over the past decade, coupled with strong customer and banking relationships, have provided a level of stability in these trying times.
Has the COVID-19 pandemic affected the Corporation’s obligation to share its revenue from resource development with the other Alaska Native regional corporations? No, a provision inside the Alaska Native Claims Settlement Act of 1971 requires the original 12 land-based Alaska Native regional corporations to share 70 percent of their revenue from resource development on their ANCSA conveyed lands. Since incorporation, ASRC has distributed nearly one and a half billion dollars to the other Alaska Native regional corporations as part of its 7(i) obligation. 7(i) distributions are made annually, and a recent payout (March, 2020) from ASRC was approximately $100 million.
Can you explain the cost-cutting measures ASRC implemented due to the impacts of the coronavirus economic shutdown? ...we acted quickly and decisively to protect ASRC and our shareholders in the long-term.
The Corporation is particularly vulnerable to the impacts of COVID-19 because not only are our operations significantly hurt by the near shutdown of the economy, but, despite our growing diversification, ASRC’s earnings from the Alaska operations are still largely tied to commodity prices that have experienced historic lows.
Our initial evaluation of the impact from the pandemic and low oil prices indicated a nearly 70 percent decline in earnings versus what we expected at the beginning of the year. However, we acted quickly and decisively to protect ASRC and our shareholders in the long-term. Those actions, intended to offset the decline in earnings, included a dramatic round of cost-cutting measures that impacted every segment and department of the Corporation. Other stabilization efforts include the following measures:
• We suspended all incentives for executives, managers and employees across the company • We cut costs that do not directly support our earnings and ability to pay dividends, which unfortunately include many of the charitable programs in our region • Board members voted to reduce their stipend by more than 30 percent • We made significant reductions in our workforce, which impacted shareholder employment • We were forced to reduce dividends for the 2nd and 3rd quarter, and likely for the rest of 2020
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Though these decisions were extremely difficult, our focus must be on sustaining our ability to pay meaningful dividends far into the future. Given the decline in earnings versus expectations for 2020 and its impact on our debt covenant calculations, we simply do not have the earnings to support our previous level of dividends. If the Corporation didn’t take these measures, we would be in danger of setting the company back by decades, with an accompanying long-term, significant reduction in dividends. ASRC leaders are dedicated to ensuring a strong future for the company and the people it represents and believe that by focusing on the current cost-cutting measures, the Corporation will come out of the other side of this as a leaner, more efficient company ready to return to our focus on growth in the years to come.
Why did ASRC find it necessary to decrease its 2nd and 3rd quarter shareholder dividends in 2020? As you saw in the 2019 annual report, the Corporation finished the year on a very positive note. Our annual revenue of $3.8 billion was the highest in ASRC’s history, and we recorded an adjusted EBITDA of nearly $230 million and a shareholder dividend distribution of almost $100 million – the second highest we’ve ever recorded. The dividend amounts are set each January, based on our estimate of earnings for the coming year and the amount of cash available to us from operations and debt. In other words, the dividend has been based on forward-looking expectations for the year instead of the past year’s results. In years that our results have exceeded our expectations we have considered increases to the dividend in the 4th quarter, most recently occurring in 2018 with a $10 per share increase. The unprecedented impact of COVID-19 and low oil prices caused a dramatic decline in our expected earnings, which was unknown and certainly not planned when the dividend was declared. As stated previously, these impacts were expected to lower 2020 earnings by as much as 70 percent. These impacts will almost certainly mean that dividends for the rest of 2020 (and possibly into next year as well) will be lower than those of the recent past. The board will be meeting in the coming months to determine the best path forward for our dividends. As in the past, leadership will continue to prioritize the long-term health of the company.
Given the recent layoffs and economic challenges, what is the Company doing to support shareholders and promote shareholder hire?
Shareholder Hire 600
In 2019, the HR Department, with support from ASRCâ€™s Shareholder Programs division, engaged in
several efforts aimed at serving our shareholders, including providing leadership development programs, the internship program and our
mentorship program. The devastating impacts of the COVID-19 pandemic
coupled with the drop in oil prices necessitated reductions in force, and those reductions did impact our shareholders. In an effort to curb the spread of the coronavirus, some programs had to be suspended, to include camps at ASRC Federal and ASRC Industrial. While these decisions were emotional and challenging, the Company remains committed to shareholder hire and perhaps more importantly, development.
During this time of crisis, we have had to pivot but we are optimistic we will be able to continue our focus on recruiting and growing our talented shareholders for success throughout the Corporation and in their careers.
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Why ASRC is involved in the OneALASKA effort What started as the “Fair Share Act” is now known as “Ballot Measure 1”, introduced as another attempt at trying to balance the state’s budget on the backs of one industry – the large oil and gas companies. Alaska already relies on the oil industry to provide critical revenue for public services, the Permanent Fund, infrastructure, and maintaining a third of the state’s workforce. According to an independent economic analysis, at prices of $60 per barrel, this ballot measure would increase taxes by at least 300-percent on the larger oil fields. The companies that operate in the older, higher producing fields targeted by this tax increase are the same companies investing and developing new, promising fields. Tax hikes of this magnitude on the oil industry may provide a short-term boost to the state budget, but will have serious, long-term consequences for our economy. If this ballot measure were to pass, investment will be impacted, leading to production decreases and job losses. In the end, Alaska would suffer real, long-term, and perhaps irreversible economic losses. This ballot measure was drafted by a small, private group with no public input, hearings or scrutiny by independent economic experts or the Alaska State Legislature. In their analysis of this measure, the Alaska Department of Law states “the vagueness of the language and the lack of definitions would also lead to numerous implementation and potential constitutional concerns post-enactment.” We agree with the critics – this is the wrong way to make major policy that will impact the state’s economic future now and for years to come. We believe the current oil-tax structure is working; it’s producing more oil and more revenue for the state than was projected under the oil-tax structure. That’s
why ASRC has joined hundreds of other Alaska-based businesses and organizations standing in opposition of Ballot Measure 1, and why I have proudly joined this coalition as one of its co-chairs. If you’d like to learn more – please check out the OneALASKA.com website.
THE OIL TAX BALLOT MEASURE • BAD FOR JOBS • PUTS ALASKA’S ECONOMY AT RISK
JOIN THE COALITION
“THIS [BALLOT MEASURE]
Text ONEALASKA to 64600
MEANS FEWER JOBS AND INCREASED UNCERTAINTY”
Follow Us @WeAreOneALASKA
Whaling Captain, Utqiagvik Board Chair, ASRC
Learn more at OneALASKA.com This communication was paid for by OneALASKA - Vote No on 1, Anchorage, AK. Chantal Walsh, chair, approved this message. Top three contributors are BP Alaska, Anchorage, Alaska, ConocoPhillips Alaska, Anchorage, Alaska, and ExxonMobil, Anchorage, Alaska.
ASRC Federal plays vital role in SpaceX mission On May 30, several teams from ASRC Federal played an integral part in launching NASA’s historic SpaceX Demo-2 mission. The mission, which was to the International Space Station as part of NASA’s Commercial Crew Program, is the first launch of astronauts on an American rocket from American soil since the last space shuttle mission in 2011. NASA astronauts Robert Behnken and Douglas Hurley flew on SpaceX’s Crew Dragon spacecraft, lifting off on a Falcon 9 rocket at 3:22 p.m. ET on May 30 from Kennedy Space Center in Florida. They successfully splashed down in early August. Working on the Kennedy Infrastructure, Applications and Communications (KIAC) contract, the Multimedia Support Services (MSS) and Communications Services team took the lead in capturing the mission on a number of multimedia channels. “Our team of directors, producers, technicians, to include audio and sound reinforcement, videographers, photographers and video editors delivered top-quality photography, videos and TV broadcasts of live events and activities, to include long range tracking and imagery of the SpaceX Crew Dragon vehicle,” said Carolyn Chavez, director of support services on the KIAC contract. “These roles were key to the mission as the agency prepared to launch a new era in human spaceflight. Additionally, our web and writing specialists published up-to-the-minute blog posts and fresh content to NASA’s flagship website, nasa.gov.”
were checked out and verified as operationally ready, including power, water and HVAC systems,” said Dave Rueh, CLOIS program director. “On launch day, the CLOIS team had 28 employees directly supporting this mission, including launch communications, HVAC, electrical, power monitoring and backup power generation,” he added. “Prior to launch day, the CLOIS team provided service support by storing, inspecting and delivering 25 explosive ordinance components, which were installed on the Dragon capsule and Falcon 9 booster,” Rueh said. “The CLOIS chemical lab had also calibrated toxic vapor detection equipment that was used on the launch pad as final launch preparations were underway.” ASRC Federal is proud of our employees’ contributions and to have played a part in this historic mission to propel the next generation of human space flight and space exploration.
“On launch day, the entire MSS and Communications team pooled their talents to bring the excitement of the countdown to a worldwide audience in real-time so everyone could be a part of NASA’s #LaunchAmerica effort,” Caroline added. “ASRC Federal employees on the Cape Canaveral Launch Operations and Infrastructure Support (CLOIS) team were also meticulously preparing for launch day. Critical launch support facilities and systems
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Photo Credit: KIAC Team/NASA
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Iḷ isaġvik College celebrates first bachelor’s degree graduate BY: CORDELIA QIĠÑAAQ KELLIE, IḶISAĠVIK COLLEGE
Iḷisaġvik College is celebrating the award of its first fouryear degree in the facility’s 25-year history. Former ASRC employee Darian Danner is the first to graduate with a bachelor’s degree in business administration since the program began in fall 2017. Danner, whose family is from Utqiaġvik and Hawaii, had previously earned a BA in economics from the University of Alaska Anchorage. “Education has always been important to me. Economics can be narrowly focused, and I thought the business administration degree would be broader and open different doors than economics.” This achievement coincides with the 25th anniversary of Iḷisaġvik College, whose theme is “Unapologetically Iñupiaq”. Danner said that the phrase, “Gives us the freedom to be Iñupiaq in every aspect.” Danner details the experience coming from a non-tribal university to a tribal college, primarily how hands-on and culturally oriented the courses were. “A lot of things clicked to me because [professors] related [concepts] back to the Iñupiaq values. They have this magical way of bringing in real life and real community examples,” Danner shared. The decision to offer a bachelor’s degree in business administration was based on surveying local hiring managers at the largest employers on the North Slope, who confirmed that many jobs require a bachelor’s degree and that hiring local residents for these positions is preferred.
In terms of how her bachelor’s aligns with her professional goals, Danner said she found “a love for working in government affairs” through her time with Arctic Slope Regional Corporation and as she looks towards the future, “having the degree in business administration is allowing me to switch gears when necessary.” She has worked in Ukpeaġvik Iñupiat Corporation’s legal department as an intern and paralegal, and is currently exploring grant writing as well as continuing a career in government affairs. Danner is the first in her family to graduate with a bachelor’s degree. When asked about the role education has played in her family, she shares her motivation included her four younger siblings. “I needed to show them that it’s possible. There aren’t a lot of role models in the education space. It’s good to have a variety of examples of what you can do in your life.” Danner is inspired to continue her education and is now researching graduate-level programs in political management. “The board of trustees of Iḷisaġvik and myself have been incredibly excited to be offering our first 4-year degree program at Iḷisaġvik,” said President Pearl Brower. “Our mission is to prepare our residents, our people, for the jobs that are right here at home on the North Slope, as well as in the state of Alaska. Business is one of those degrees that you can use almost anywhere. Having our first bachelor’s graduate the same year we celebrate turning 25 is testament to the importance of higher education on the North Slope and throughout the state.”
ASRC Federal names Jennifer Felix president and CEO On April 28, ASRC Federal announced Jennifer Felix as president and chief executive officer. Jennifer previously served as ASRC Federal’s executive vice president and chief operating officer, having joined the company in 2019 as an integral part of the organization’s leadership succession planning. In her prior role, Jennifer directed the company’s dayto-day business operations, including customer delivery execution. Additionally, Jennifer led an enterprise-wide business strategy and market review to ensure the best alignment of the ASRC Federal business to growth opportunities in the market. “I’m very pleased to lead ASRC Federal and work together with our 7,000 employees who serve customers across the United States and overseas. This is a time of significant challenge in our world – for our customers, our employees and their families, as well as our communities,” said Felix. “The professionalism, creativity and resolve of our people is truly inspiring and has never been more evident or important as it is at this moment. I am proud to lead an organization with such a strong culture and enduring commitment to our customers’ missions.” Felix has more than 25 years of industry experience in finance, business operations and organizational change management, M&A due diligence, integration
and strategy. Prior to ASRC Federal, she served in executive leadership positions for multiple companies in the government services market, including SAIC, Vencore Inc., General Dynamics and American Management Systems, where she established a strong track record for building successful growth-oriented organizations with a focus on outstanding customer service. In 2018, she was named Northern Virginia Technology Council’s Private Company CFO of the Year. Felix holds a bachelor’s degree in accounting from the University of Maryland, College Park, is a certified public accountant and serves on the March of Dimes Greater Washington Chapter board of directors.
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Arctic Slope Regional Corporation and Subsidiaries Employees Retirement Plan
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*At the direction of the Plan Sponsor or Plan Administrator, Participants may have access to an advice service that can provide Participants with a retirement savings and investment strategy for their Plan account, furnished by Morningstar Investment Management LLC, an independent registered investment adviser and subsidiary of Morningstar, Inc. Recommendations are formulated and provided by Morningstar Investment Management through Morningstar® Retirement ManagerSM , an advice program which is intended for citizens or legal residents of the United States and its territories, and can be accessed through workplace.schwab.com. Morningstar Investment Management will select investment options appropriate for the Participant’s strategy from the investment options available under the Plan as selected by the Plan Sponsor, Plan Administrator or other Plan fiduciary. Morningstar Investment Management is not affiliated with or an agent of Schwab Retirement Plan Services, Inc. (SRPS); Charles Schwab & Co., Inc. (CS&Co.), a federally registered investment advisor; or their affiliates. Neither SRPS, CS&Co., nor their affiliates supervise, make recommendations with respect to, or take responsibility for monitoring the advice services provided to the Participants by Morningstar Investment Management. Advice Consultants are registered representatives of CS&Co., not employees of Morningstar Investment Management, who may facilitate Participant access to Morningstar Retirement Manager, but do not provide investment advice or recommendations regarding the Morningstar Investment Management service. The term “personalized advice” refers to personal participant data such as age, salary, and Plan account balance, which will form the basis by which Morningstar Investment Management will establish the Participant’s savings and investment recommendations. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. There is no guarantee a Participant’s savings and investment strategy will provide adequate income at or through their retirement. Projections and other information regarding the likelihood of various retirement income and/or investment outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of future results. Results may vary with each use and over time. The advice service includes non-discretionary investment advice, which is available at no additional cost, beyond the expenses imposed by the underlying investments and the standard fees paid to SRPS, CS&Co. and their affiliates for recordkeeping and related services. For a complete list of investment options available under the Plan, as well as information pertaining to fees and expenses applicable to the Plan account, log in to workplace.schwab.com to find the most recent annual Fee and Investment Notice and any subsequent Change Notices under “History & Statements.” More information about fees and compensation that SRPS, CS&Co. and their affiliates receive is detailed in the Charles Schwab & Co., Inc. Advice Services with Morningstar Investment Management, LLC Disclosure Brochure (Form ADV Part 2A). Participants should carefully consider information contained in the materials furnished at their employer’s direction regarding the services provided by SRPS and its affiliates and Morningstar Investment Management, including information regarding compensation, affiliations and potential conflicts. The Morningstar name and logo are registered marks of Morningstar, Inc. Schwab Retirement Plan Services, Inc. provides recordkeeping and related services with respect to retirement plans and has provided this communication to you as part of the recordkeeping services it provides to the Plan.. ©2020 Schwab Retirement Plan Services, Inc. All rights reserved. CC4139057 (0520-0FZP) NWS111055ASL-00 (05/20) 00245863
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AGC suspends 2020 North Slope Marketplace competition Due to the COVID-19 pandemic, Alaska Growth Capital (AGC) has made the difficult decision to suspend its 2020 Business Plan Competition for Arctic Slope Regional Corporation (ASRC) shareholders. Earlier this year, AGC announced the opening of the 2020 North Slope Marketplace application, but with the health and safety of both the North Slope region and our staff in mind, as well as due to the current economic uncertainty, the company concluded that the Business Plan Competition would need to be suspended this year. Since 2009 Alaska Growth Capital has awarded over $1 million to more than 50 North Slope businesses through
the program. The company looks forward to continuing to support new and established ASRC shareholder businesses in creative ways. Alaska Growth Capital aims to increase entrepreneurial activity in the North Slope region by supporting ASRC shareholder-owned businesses with technical training, mentorship and potential financial support, all with the goal of continuing to foster vibrant North Slope communities. If you have a business idea and/or questions about Alaska Growth Capital, please reach out to the team at email@example.com.
Teresa Imm retires from ASRC After more than two decades of serving ASRC in a variety of capacities, Teresa Imm has retired from the Corporation, but continues to be involved as a consultant to a regional nonprofit, which she helped to get off the ground in 2015. During her time at ASRC, Imm held many titles and served the Corporation in a variety of ways. Most recently, she served as executive vice president of Regional and Resource Development, taking on the role of in-house advisor on all matters related to oil, gas, coal, base-metal minerals and gravel exploration, development and management of ASRCâ€™s nearly 5 million acres of privately-held land.
Imm also served as president and CEO of ASRC Exploration LLC, where she managed ASRC investments in exploration and production in oil and gas properties. She was a key member of the team that advocated for the passage of the Tax Cuts and Jobs Act, which included language to open the non-wilderness section of the Arctic National Wildlife Refuge Coastal Plain to natural resource development. The Act was passed and signed into law by President Trump in December of 2017. Imm was also instrumental in the formation of Voice of the Arctic IĂąupiat (VOICE), a nonprofit corporation established five years ago as a communication network among Arctic Slope communities to create a unified voice for the people of our region. She now serves as a consultant to VOICE.
ASRC hosts virtual annual meeting from Utqiaġvik On Saturday, June 20, 2020, Arctic Slope Regional Corporation held its 48th annual meeting from its headquarters in Utqiaġvik, Alaska.
process. For starters, all village travel and informational meetings were cancelled, and the location of the meeting was changed from Atqasuk to Utqiaġvik.
Following guidelines from the State of Alaska as well as emergency orders from the North Slope Borough surrounding intrastate travel, social distancing and selfquarantining, the meeting was held virtually. A limited number of ASRC executives, board members and staff attended the meeting in person, with the rest joining the meeting via teleconference from their respective communities. Shareholders were also able to listen to the virtual meeting via webcast on IAMInupiaq.com.
Also, the only official matter that was addressed during the meeting was the election of ASRC’s directors. At the end, board chairman Crawford Patkotak joined President Rex A. Rock Sr. in answering questions from shareholders that had been submitted in advance.
With the health, safety and well-being of the Corporation’s shareholders, communities and employees as our top priority, the circumstances caused by the global pandemic forced ASRC to make changes in the way it handled this year’s annual meeting
Arctic Slope Regional Corporation would like to thank the organizers of this year’s annual meeting for their flexibility and support, as well as vendor Talking Circle Media for the successful webcast. For a full rundown of the 2020 election results, as well as the annual meeting and door prize winners, login to your IAM account.
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What does the CARES Act litigation mean for ASRC? You may have seen news coverage surrounding a lawsuit where tribes sued the federal government, arguing that Alaska Native regional and village corporations were not eligible for certain funds under the Coronavirus Aid, Relief, and Economic Security, or CARES Act. The Act was passed by Congress with bipartisan support and signed by President Trump in late March of this year. As part of this Act, the government set aside funds for “tribal governments” and used a definition of tribal governments that included ANCs and village corporations. Sadly, some tribes sued the government, arguing that Alaska Native corporations, or ANCs, as well as village corporations should not be treated as tribal governments and should not be eligible for these CARES Act funds. In partnership with the other ANCs and village corporations, ASRC is participating in the lawsuit to educate the court on how ANCs and village corporations serve a critical role in Alaska Native communities just as the tribes do in the Lower 48. In mid-April, Alaska’s Congressional Delegation responded to the effort of trying to prevent ANCs from being allowed to use Coronavirus Relief Funds, and to the criticism of former ASRC executive, Tara Sweeney, now the Assistant Secretary of the Interior for Indian Affairs:
Alaska delegation responds to slanderous attacks on Assistant Secretary, ANCs U.S. Senators Lisa Murkowski and Dan Sullivan and Congressman Don Young (all R-Alaska) today responded to misguided efforts seeking to prevent Alaska Native Corporations (ANCs) from being eligible for tribal assistance appropriated through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The delegation also defended Assistant Secretary of the Interior for Indian Affairs, Tara Sweeney, from baseless personal attacks over her status as an Alaska Native shareholder, which is part of her birthright under the Alaska Native Claims Settlement Act (ANCSA) of
1971. Sweeney is the only Alaska Native serving in a congressionally confirmed position, which has led some to target her with false and slanderous accusations. “Tara Sweeney is doing an outstanding job as Assistant Secretary for Indian Affairs. Barely two weeks ago, Congress unanimously agreed that ANCs should be eligible for funding under the CARES Act and we expect Treasury to uphold and follow the law,” said Senator Murkowski. “I’m extremely disappointed by the personal attacks and baseless allegations against Assistant Secretary Sweeney, including those from Senator Chuck Schumer earlier today. Those attacks betray a complete lack of awareness of Interior’s role in supporting Treasury when it comes to implementing this program. They also betray an utter lack of understanding of what Native Corporations are, why Congress created them, and the purpose they serve in Alaska. Trying to hold any person’s tribal affiliation or similar congressionally established status against them for political purposes is simply gross and a new low. Assistant Secretary Sweeney’s ANCSA affiliation is her birthright. It’s part of her identity as an Alaska Native, similar to tribal enrollment, and should not be used against her based on crass partisan motives.” “As our small businesses suffer and as the Payment Protection Program has run out of money, it’s extremely disappointing that Minority Leader Chuck Schumer and others are spending their time attacking Assistant Secretary Tara Sweeney. Secretary Sweeney is a woman of impeccable integrity who is working day in and day out for America’s First Peoples,” said Senator Sullivan. “Senator Schumer—as well as every senator and an overwhelming majority of congressmen who voted for the CARES Act—signed off on the standard, 40 plusyear-old definition of Indian tribes, which includes Alaska Native village and regional corporations. This is not controversial, particularly for anyone who knows anything about these issues. What is controversial, and frankly shameful, is to try to smear a dedicated public servant who is doing her duty by implementing the law and the definition of Indian tribes that Congress mandated. What
is also shameful is having members of Congress trying to deprive Alaska Native communities much-needed funds to fight the pandemic. I’ll continue to fight these misguided efforts to besmirch Assistant Secretary Sweeney and harm our Alaska Native communities.” “The legislative text of the CARES Act was available out in the open throughout the drafting process before it went on to pass 96-0 in the Senate, and by voice vote in the House. The time to express concerns over the bill was then, not weeks after its passage and enactment. Let me make this very clear: Alaska Native Corporations not only fit the bill’s definition for funding eligibility, but for decades have been empowering Alaska Natives by providing economic opportunity, education, and vital services to Native communities across our State. The CARES Act did not prescribe apportionment of the funding, and I am confident that our federal agencies will determine a fair and equitable distribution of these critical funds that takes into account the fact that Alaska has both tribes and ANCs,” said Congressman Young. “Assistant Secretary Tara Sweeney has spent her career advocating for all Indigenous peoples, and continues to do so. The very suggestion that she used her influence to secure the inclusion of ANCs in the tribal set aside is outrageous and, very frankly, a fundamental misunderstanding of the legislative process. Congress drafted and passed the bill; as Assistant Secretary, Tara Sweeney and other federal officials implement the law as written, using the eligibility definitions that already exist on the books. Sweeney is a champion for the economic and social well-being of our First Peoples, and has achieved great things as Assistant Secretary for Indian Affairs. As the first Alaska Native to ever hold this position, she is a trailblazer and a role model for future generations of Indigenous leaders. I am proud to serve with her and honored to call her a friend.” In June, a U.S. District Court judge in Washington, D.C. found that Alaska Native Corporations are Indian tribes for purposes of the CARES Act — and that their boards of directors are, in fact, tribal governments. This meant that the ANCs, or any regional, village, urban or
group corporation organized under the 1971 settlement known as the Alaska Native Claims Settlement Act (ANCSA) — would be eligible to receive the virus relief money. Following the ruling by Judge Amit Mehta, the ANCSA Regional Association and Alaska Native Village Corporation Association released a joint statement: “The ANCSA Regional Association and Alaska Native Village Corporation Association applaud the D.C. District Court’s Decision to uphold the Alaska Native Regional and Village Corporation’s right to receive much-needed funding from Title V of the CARES Act. This disaster assistance will provide immediate support to Alaska’s rural communities suffering from COVID-19 and help repair the economic damage caused by the pandemic. In addition to granting the funding, the Court’s decision also reaffirms our status as “Indians” under the Indian Self Determination and Education Assistance Act, and as defined by the Alaska Native Claims Settlement Act that was signed into law nearly 50 years ago. Alaska Native Corporations are proud of the cultural and tribal identities that define us, and we work tirelessly to support tens of thousands of Alaska Natives every day. We look forward to working together with other Native organizations to solve the problems and challenges brought on by COVID-19. We continue to believe that when Indian Country, Alaska Native corporations and Villages, and Native Hawaiian organizations align as one, our ability to serve our people is powerful.” However, in early July, Judge Mehta issued an injunction, delaying the allocation of funds to Alaska Native and village corporations. At ASRC, we are hopeful that Alaska’s ANCs and village corporations will receive this funding so that we are all able to better serve our communities during these challenging times. Most importantly, we are united in defending the unique and important roles of ASRC and the other ANCs in our shareholder communities and working to ensure that we may continue doing so.
You can find more information concerning CARES Act funding for Alaska Native and village corporations on the ANCSA Regional Association website here.
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RSI EnTech helps demolish structure On June 18, 2020, workers demolished the tallest structure at the Heritage Center, formally known as East Tennessee Technology Park. The Heritage Center had long ago enriched uranium and was a major component of the former Manhattan Project that eventually resulted in winning the Cold War. This historic demolition of the Centrifuge Complex signifies a major transformation of the landscape from a pre-Cold War Brownfield to a future Greenfield. RSI EnTech is proud to be a teaming partner with URS | CH2M Oak Ridge on this $3.4 billion project and to have been responsible for the engineering team that developed the design for the building pull down, led by RSI’s Mike Logan. Using massive winches, workers successfully pulled down the steel beams of the 180foot tower. The pull down of this structure is a defining moment in U.S. Department of Energy (DOE) Oak Ridge
Office of Environmental Management’s (OREM) pursuit of Vision 2020 – the goal to complete the major cleanup and demolition of the Heritage Center by the end of 2020. The demolition of the Centrifuge Complex marks a major skyline change at the former Manhattan Project site. In October 2016, RSI was acquired by ASRC Industrial. RSI is a key component of ASRC Industrial’s platform to provide comprehensive environmental, engineering and construction services to federal and commercial customers nationwide. RSI’s long-term success is centered around its core competencies focused on environmental cleanup and industrial site reuse. Through its diverse service portfolio, its team provides an efficient, integrated approach to project planning, execution and closure activities.
Shareholder creates facecoverings for refinery workers In preparation for May turnaround activities at the Petro Star Inc. refineries, PSI identified that cloth face coverings would be more durable and comfortable for its workers at those locations as opposed to the surgical masks provided at other locations. That led their teams to work
with ASRC shareholder Andrea Ahyakak, who made the cloth masks by hand and sent them to the refineries. Quyanaqpak to Andrea for the wonderful masks, and to the PSI team for making the partnership happen!
Mike Eckley works at the Sourdough Fuel Bulk Plant
Dell Paneak is out at the North Pole Refinery
Debbie Snyder and Collette Kennedy work at the North Pole Refinery
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SH A REHOLDER R ATE: Standard and ADA $166.67 plus 5% tax total of $175.00 Deluxe $213.34 plus 5% tax total of $224.01
In light of the recent increase of COVID-19 cases, including on the North Slope, the Top of the World Hotel (TOWH) is substantially limiting its capacity in an effort to protect its staff, guests and community members. At this time, the TOWH is accepting reservations for non-leisure travelers who originate from communities within the North Slope Borough only. Please be advised: the TOWH reserves the right to cease operations for ALL guests, including current (checked-in) visitors with as soon as a one nightâ€™s notice if the decision is warranted by the local public health situation.
ASRC shareholders must show their shareholder ID card on their first visit and stay at the Top of the World Hotel. The shareholderâ€™s ID card will be entered into the hotel database, and the next time the shareholder stays at the hotel, the front desk clerks will be notified that they are ASRC shareholders and will qualify for the lower hotel rate.