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P E N I N S U L A
TUESDAY, APRIL 8, 2014 Soldotna-Kenai, Alaska
Vol. 44, Issue 161
Question Should a state-wide ban on smoking in public places be enacted? n Yes; or n No. To place your vote and comment, visit our Web site at www. peninsulaclarion. com. Results and selected comments will be posted each Tuesday in the Clarion, and a new question will be asked. Suggested questions may be submitted online or e-mailed to news@peninsulaclarion.com.
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Rio Tinto to give away Pebble shares Company to donate shares in mine to Alaska charitable organizations By BECKY BOHRER Associated Press
JUNEAU — A major shareholder of a company behind a contentious Alaska mine project on Monday announced it was giving its shares away to two Alaska charitable organizations, at least one of which belongs to a larger group that has come out publicly against the project. London-based mining company Rio Tinto announced plans to give its $16 million worth of shares in Northern Dy-
nasty Minerals Ltd. to the Alaska Community Foundation and the Bristol Bay Native Corp. Education Foundation. “By giving our shares to two respected Alaskan charities, we are ensuring that Alaskans will have a say in Pebble’s future development and that any economic benefit supports Alaska’s ability to attract investment that creates jobs,” Rio Tinto chief executive Jean-Sebastien Jacques said in a statement posted on the company’s website. “This gift provides an example of
what open discussion and relationship building between stakeholders with differing views can accomplish. However, (Bristol Bay Native Corp.’s) opposition to the proposed Pebble mine has not changed,” Bristol Bay Native Corp. President Jason Metrokin said in a statement. The Pebble Mine project — a massive gold-and-copper prospect near the headwaters of a world-premier salmon fishery in Alaska’s Bristol Bay region — has faced a series of setbacks by
those worried about its environmental repercussions. The U.S. Environmental Protection Agency in February announced it was taking the first steps toward restricting or even prohibiting development of a mine in that area of Alaska, but stressed that no final decision has been made. While the rarely used EPA process is underway, the U.S. Army Corps of Engineers cannot approve a permit for the proposed Pebble Mine project.
Panel unveils state capital budget
In the news Alaska officials revise oil production estimates
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JUNEAU (AP) — The state Revenue Department is forecasting higher oil production than previously expected, though the overall, long-term trend is still one of decline. North Slope production for this year is now forecast at 521,800 barrels per day, up from the 508,200 barrels per day forecast in December, which Deputy Revenue Commissioner Bruce Tangeman called a “banner headline.” The spring forecast, released Monday, anticipates a dip to about 496,000 barrels per day in fiscal year 2015, which Tangeman said accounts for what is expected to be an active summer maintenance season in line with the projected new industry investments. The forecast calls for increased North Slope oil production over what was forecast last fall from 2016 to 2023, though the overall trend would still be one of decline, with North Slope production of about 315,000 barrels per day by 2023. Tangeman said the department has greater confidence in the near-term numbers than those in the outlying years. He said the methodology now used for the forecast is more conservative, meant to provide a more reliable tool around which to plan state spending. While he said the department recognizes the upside potential for more oil in the future, it is not yet banking on it for the purpose of this forecast.
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See MINE, page A-7
By BECKY BOHRER Associated Press
JUNEAU — The Senate Finance Committee unveiled a $1.9 billion capital budget Monday, which co-chair Kevin Meyer said was in keeping with the goal of a smaller state infrastructure budget. One of Meyer’s other goals was to have the state finish projects it has started and to maintain Alaska’s existing infrastructure. To that end, the bill includes $37.5 million to finish the state library, archives Photo by Will Morrow/Peninsula Clarion and museum building in downtown Juneau and $45.6 million to complete the engineering A City of Soldotna street sweeper works along Binkley Street Monday afternoon. While area maintenance crews are out building at the University of cleaning up what’s left of this winter’s road sand, forecasters are calling for a chance of snow today. Alaska Anchorage campus. The bill keeps at $10 million funding for the engineering building at the University of Alaska Fairbanks, include up to $5 million from outside sources, such as naming rights for the building. Meyer, R-Anchorage, said By KAYLEE OSOWSKI he was persuaded by university The location fits the comofficials and co-chair Pete KelPeninsula Clarion pany’s needs, he said. ly, R-Fairbanks, that a greater “It had all the components need for UAF at this point was Months of renovations and of a safe harbor for small to a new power plant to provide $2 million later, PRL Logistics medium vessels coming out of energy for the campus. Meyer Inc. CEO Ron Hyde said he ex- Cook Inlet and being able to said he expected that issue to be pects to be open for business in hide out from the weather and addressed in part in an updated being able to load and unload Kenai in about a month. version of the capital budget, “As we’ve continued to in a protected fashion,” he said. expected later this week. Along watch Cook Inlet and seeing “It also now offers a road to the with that, he expected intent this surge in activity, it just re- facility from the main highways language that there either be a ally made sense to start making in Alaska. Our plans are also to power surcharge, so students unplans to support work down install two heliports, so there derstand the need to close doors here for many of our same cli- will be helicopter access here or windows to keep heat from from industry in the inlet.” ents,” Hyde said. escaping, or a tuition increase. Hyde expects to employ Hyde, who began AnchorSenate Finance earlier this age-based PRL in 2002, said about 10 direct-hire logistics Photo by Kaylee Osowski/Peninsula Clarion month proposed legislation to he searched for a Kenai loca- professionals, project managers tion for almost three years be- and field personnel at the Kenai Ron Hyde, CEO of PRL Logistics Inc. stands with wife Suzy raise the borrowing limit of the fore deciding on a more than branch as well as subcontract Hyde in front of a map that was found during the company’s Alaska Municipal Bond Bank 100-year-old cannery at Kenai about two dozen businesses for renovation of a Kenai Landing cannery. Hyde expects to begin to help the University of Alaska Landing. See NEW, page A-7 operating out of the new Kenai branch in about a month. See BUDGET, page A-7
Spring cleaning
New life for 100-year-old cannery
Logistics company renovates Kenai building for industry support
Heroin found during Soldotna man’s jail booking By DAN BALMER Peninsula Clarion
While checking in a Soldotna man following his arrest for possession of heroin, Wildwood Pretrial Facility staff discovered more of the drug hidden in one of his socks. Kenai police arrested Phillip Duane Newsome, 25, during a traffic stop at approximately 10:56 p.m. March 27 on the Kenai Spur Highway. Kenai police officer Sarah
Herrin and Sgt. Jay Sjogren discovered Newsome, the passenger of the vehicle, was on probation and called his probation officer, according to the police affidavit. Kenai probation officer Alicia Tarries requested a search of Newsome and found in his possession were “two-dime baggies containing a brown tar-like substance” inside a package of cigarettes, according to the report. Newsome was riding in a
tan 1984 Olds Cutlass traveling eastbound near South Spruce Street. Police stopped the vehicle for having a broken headlight, according to the report. Sjogren transported Newsome to Wildwood on the charge of misconduct involving a controlled substance in the fourth-degree. During the remand process, staff at Wildwood found two small pieces of heroin, wrapped in a sandwich bag which was hidden in one of Newsome’s socks, while he C
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turned in his clothing, according to the affidavit. A charge of promoting contraband in the first-degree was added to his arresting offence. Sjogren conducted a field test of the suspected heroin from the initial contact and from what the correctional staff found and both tests were presumptive positive for heroin, according to the report. On Friday, a Kenai Grand Jury indicted Newsome on one count of misconduct involving
a controlled substance in the fourth-degree and one count of promoting contraband in the first-degree. Both are class C Felonies, which carry a maximum of five years in prison and a fine up to $50,000. His latest arrest resulted in his third parole violation. According to court records, Newsome is on a five-year probation for a 2009 felony conviction for misconduct of a controlled substance. In 2012, Newsome also See HEROIN, page A-7