PART I

THE LUTAK DOCK

AN UNNECESSARY PROJECT RISKING THE CHILKAT WATERSHED

Introduction

All of the information you are about to see is excerpted or summarized from technical reports, historical documents, public records requests, and news stories dating back more than a decade. All of this information has been checked and rechecked for accuracy. We have provided sources and underlined links to those sources, to make it easier for you to look further into each issue raised. We believe that this information is important for citizens and taxpayers to know, and relevant to the future of this community and landscape. Please reach out with your questions or concerns.

"Haines may be in a position to take greater economic advantage of the Yukon mining industry. If port infrastructure capable of handling mineral concentrates is developed in Haines to meet the needs of the Palmer Project, that same infrastructure could serve Yukon mines. "

— 2018 HEDC Baseline Report pg. 62

A brief history

Lutak Dock

This is the tank farm, a contaminated site.

The U.S. Army built the Lutak Dock in 1953 to supply construction materials for the 626-mile HainesFairbanks pipeline, a Cold War-era project that delivered fuel to military bases in the interior.

1977

The Army gave the Lutak Dock to the City of Haines. The cathodic protection system that the Army maintained and operated over the years was turned off after the City of Haines took ownership of the dock due to the associated operational costs.

1983

The City of Haines added a barge transfer ramp (ro-ro) to the face of Lutak Dock, which is what the town used to receive its freight.

THE RO-RO DOCK WAS FAILING BUT HAS SINCE BEEN REPLACED

After its installation in 1983, the old ro-ro lasted many years but eventually began to degrade. By 2016, with both the old ro-ro and the old Lutak Dock failing, Haines and Klukwan needed a way to receive freight reliably, and the Lutak Dock project was a top community priority. But now...

1. OUR FREIGHT NEEDS ARE MET

HOW DO WE KNOW THIS?

A. Alaska Marine Lines (AML) built a new roll-on roll-off (ro-ro) dock in 2020

B. The new ro-ro has been in use since 2020 with no interruption in deliveries (even when it partially sank in 2021)

C. The borough has a 30+ year agreement with AML for the use of the dock, including that other users may use the dock

D. The Lutak dock face was closed by assembly order in 2020

This is a closeup of AML's new ro-ro dock.

Before the 2020 construction and implementation of the new ro-ro dock, the Lutak dock project was essential for supporting our local freight deliveries. Even though the situation has changed and we now have an operational freight dock, many people still believe we need the dock project.

AML reached an agreement with the Haines Borough in 2018 for the construction of a new RO/RO ramp, constructed in 2020 for $2.6 million

Photo by Turnagain Marine

AML'S NEW RO-RO DELIVERS OUR FREIGHT

The new ro-ro is on the borough-owned tidelands parallel to the dock. The borough has a 30-year lease with AML for the use of the dock. According to the agreement, the use of the ramp cannot be restricted by AML and must remain open to other users.

The new ro-ro has been delivering our local freight since 2020 when the face of the Lutak Dock was closed.

OVERVIEW OF THE DOCK

This is an overhead view of the Lutak Dock and the nearby ro-ro dock. Out of sight to the left is the AMHS ferry dock. As you can see, AML's new ro-ro dock is attached to the land, not to the Lutak Dock. AML uses one fender on the Lutak Dock to tie up its barge. However, an engineer has confirmed that the addition of one dolphin on the south side of the ro-ro would render the ro-ro completely independent of the Lutak Dock.

The heavily reinforced pass-pass is in the central section of the dock. The pass-pass is where forklifts can pass containers or other large items back and forth from dock to barge, so it's redundant to the ro-ro and can move odd-shaped items as well. Delta Western's fuel barge ties up to the fenders along the center of the Lutak dock and pumps fuel up to the tanks on the hill. There are guardrails that prevent heavy equipment from going near the edge of the dock where the sinkholes have historically developed.

Recent view of the Lutak dock

Diagram

Who are/were the Lutak Dock's main customers?

From 2012-2018, the data shows an average of 69 dockings per year from 2 customers.

CUSTOMER

Alaska Marine Lines

FREQUENCY

Weekly

Delta Western 15-20 times/year

This is just to show who uses the dock (they use different parts of the dock, there are no conflicts). Of course, AML now uses its own ro-ro dock, which is also open to other users.

THE DOCK'S CURRENT CUSTOMERS

Delta Western is one of the dock's two current customers. They deliver fuel 1520 times a year. Delta Western's operations were largely left out of the Borough's RAISE grant application and supporting benefit-cost analysis.

AML delivers freight weekly, using the ro-ro for docking its barges and the mainland surface of the dock to store shipping containers.

The Lutak Dock's uplands have been used a total of twice to store and transport contaminated soils from the highway project and a total of two times by the Borough to transport junk cars/metals. Southeast Road Builders used the dock's uplands last summer to stockpile and transport rock.

WHAT ABOUT DELTA WESTERN?

The quote on the facing page is from a 2018 Baseline Data report by Haines Economic Development Corporation, prior to AML's construction of the new ro-ro. It suggests that Delta Western's operations would likely be able to continue even in the case of Lutak Dock failure.

Delta Western utilizes the heavily reinforced pass-pass section in the center of the dock. Delta Western has not responded to questions about how its operations would be affected by no action, but there is certainly room between no action and the large-scale dock project currently in development.

"Should Lutak Dock not be repaired and suffer a failure that renders the dock inoperable...Delta Western...would likely be able to continue to use its tank farm and related fuel infrastructure even in the absence of repairs."

— 2018 HEDC Baseline Report

2. THE BOROUGH IS PURSUING AN ORE DOCK

HOW DO WE KNOW THIS?

A. All the Borough's commissioned designs facilitate ore transfer

B. Multiple identified customers expressed desire/intent to transfer ore

C. Internal documents and public records show more than a decade of planning to transfer ore over the Lutak Dock

D. Other infrastructure projects coordinate with ore transfer plans

The dock rebuild project is not about meeting local needs. Although many decision-makers and members of the public have firmly believed that it is, records from at least the past 12 years show a more complex story with mining interests as a consistent force behind the scenes.

"THIS IS STRICTLY ABOUT MEETING THE NEEDS OF HAINES RESIDENTS AND HAVING REDUNDANCY FOR THE FREIGHT AND FUEL BARGES THAT DELIVER GOODS FOR HAINES RESIDENTS. IT IS NOT ABOUT MEETING THE NEEDS OF ANY MINING INTERESTS..."

— Haines Borough manager Annette Kreitzer (at the April 7, 2022 Planning Commission meeting)

Definitions

HANDYMAX

105 ft x 625 ft

Require a draft of 35-40 ft

DEEP WATER PORT

Accommodates very large and heavily loaded ships.

Used for the bulk transport of mineral ores, coal, cement, timber, steel, fertilizer, and grains

Required water depth: 30-35 feet deep or more (consistently)

Currently, the Lutak dock does not serve Handymax ships, which are used to export and transport enormous amounts of dry bulk materials.

Handymax bulk carrier ships are used to transport mine ores, coal, timber, cemen finished steel, fertilizer, an grains. Handymax is also t design vessel used in the conceptual plans for Skagway's ore terminal, and you'll see, in past and curre designs for the Lutak dock.

Footage from Understory (Wild Confluence Films)

2010:

Constantine discovers Palmer deposit

TIMELINE OF HAINES BOROUGH COMMUNICATIONS RE: ORE DOCK

2012: Port Development Steering Committee

2016-2018

2020:

2021

2022

Discussions begin regarding Lutak dock as a deep water port

Haines Borough

Comprehensive Plan

MOU with Prophecy

Platinum

R&M retained by Haines Borough, releases a report outlining five dock design options (all dock options would allow for ore export via Handymax ship)

AML pays for the construction of a new ro-ro dock and the face of the Lutak dock is closed (and has not reopened since).

Haines Borough applies for a $20M RAISE grant

Haines Borough commissions a Jobs

Analysis and Benefit-Cost

3/24/22 PHAC meeting with Yukon mining reps brings the topic into the public eye

Northern Economics

Port Development Report

HEDC 2018 Economic Baseline Report connects Yukon mines, the Palmer Project, and the Lutak dock

December weather

event shows geohazards in Lutak Inlet

Analysis to support its RAISE grant application .

AML signs MOU with Haines Borough

AIDEA expresses interest in moving Skagway's old ore port infrastructure to the Lutak dock

Haines Borough retains R&M and Turnagain Marine, begins progressive design-build dock project with contracted consultant .

TIMELINE

This timeline is just a brief snapshot of the more relevant communications, studies, and reports commissioned by the borough regarding the Lutak dock and its use as an ore transfer facility.

The idea of attracting Yukon mines to use the Lutak dock goes back at least a decade. There is ample and compelling evidence to this effect, but for the sake of space, we've included only the most relevant.

2010

Constantine Metal Resources discovers Palmer Deposit

Haines Borough commissions an assessment of the Lutak Dock's potential to be developed/expanded into a deep water loading port In 2010, two events coincided-- the discovery of the Palmer deposit and the interest in the Lutak dock as a deepwater port.

"Develop conceptual plans for a deep draft dock and loader to handle ships with 36 feet of draft (Handymax)"

This memo accompanied the 2012 Northern Economics Port of Haines Potential for Development report.

MAY 31, 2012

"The Haines Borough recently launched a Haines Port Development Steering Committee. Three residents have since formed the Haines Port Development Council - described as a private-sector cooperative research group - with a similar aim to encourage Yukon Territory mines to ship through Haines."

— Chilkat Valley News

CHILKAT VALLEY NEWS ARCHIVES

This excerpt is from one of the dozens of CVN articles regarding ore transfer over the Lutak Dock going back more than a decade.

The two groups mentioned in this 2012 CVN article shared the aim "to encourage Yukon Territory mines to ship through Haines."

2012 COMPREHENSIVE PLAN

Also in 2012, the Comprehensive Plan identified the need to ensure that the Haines Highway and its bridges are able to handle ore transport.

Since then, the $100 million highway project and $8 million "Palmer Project Bridge" over the Klehini River have been funded and (mostly) completed.