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June 2009

Partnerships make Washington Business Week a success By Heather A. Resz

Since the Foundation for Private Enterprise Education – Washington Business Week graduated its first class of 225 students in 1976, Executive Director Steve Hyer said the program has graduated more than 46,000 students, and reached another 26,000 students through in-school programs. The Foundation for Private Enterprise Education is a nonprofit, nonpartisan 501c(3). “We believe if we provide good information about business to high school students they will be more knowledgeable and better informed voters later on,” Hyer said. This summer more than 1,000 students are involved in the Foundation for Private Enterprise Education four Business Week programs, which connected school learning with real life. Hyer said they also offer health care week and construction week, which focus on specific career pathways in addition to the fundamentals of free enterprise. Work is underway to offer a similar week in 2010 that will focus on careers in manufacturing. “It’s business week in disguise,” Hyer said of the health care and construction camps. “We want to inspire kids to get that education while gaining a positive business message. We’re trying to reach all the kids.” Students who don’t know each other are divided into 10-member teams and tasked to work together with one person serving as the compaSee Biz Week, Page 4 PHOTO COURTESY OF WASHINGTON BUSINESS WEEK

Chair’s message: Expect energy issues to dominate next legislative session By Caroline Higgins

ANCHORAGE, AK PERMIT NO. 283

PRSRT STD U.S. POSTAGE PAID

As business people it may seem that at almost every turn the deck is stacked against us. Are you asking yourself, “How do I keep up? Who’s looking out for me? How can I make a difference? What should I do?” Let’s take a look at a few of the ways you can make a difference. Higgins America’s dependence on non-renewable energy resources isn’t going away anytime soon. In fact, America’s

energy use grows at about 1.5 percent per year. Conservation and renewable resources like wind, solar, tidal and other renewable energy sources today only fill a small part of our energy needs and consumption. Compounding this is the fact that simply trying to achieve the nation’s new higher standards will limit further oil and gas development. We simply can’t do everything with alternative energy that we now do with fossil energy today without spending billions retrofitting the millions of residential and

commercial buildings that currently rely on natural gas for heat. America will need to use its full compliment of energy resources – oil, natural gas, coal, nuclear, wind, solar, geothermal and biofuels. How does Alaska survive the greening of America and what can you do? Alaska holds bountiful resources of oil, gas and coal that can be developed in a responsible manner and yet many people – who don’t live here – believe they have the right to restrict the use of Alaska’s resources. This spring, many representatives from Alaska businesses and the private sector testified in support of oil and gas development at hearings held by Secretary of the Interior Ken Salazar regarding development in Alaska in the Beaufort Sea, Chukchi Sea, Cook Inlet and the North Aleutian Basin.

Resource groups organized a demonstration supporting drilling outside of Anchorage’s Dena’ina Civic and Convention Center while Salazar was accepting public testimony. Just how influential those efforts will be remains to be seen, but one thing is sure – the voice of Alaska business was heard. Though Alaska was somewhat insulated from the world’s economic troubles in the past, this time is different. If you take a snapshot of Alaska today and compare it to the economy in the Lower 48, on the surface it doesn’t seem too bad. Job growth has increased steadily in prior years and is relatively stable today. The housing market is reasonably stable. Consumers are still spending, which is demonstrated by national retail growth in Alaska. Car loan delinquency is the lowest

in the nation at 0.19 percent. The economy is balanced with improvements in some sectors offsetting declining sectors. Alaska’s banks are solid and well funded. Now take another look. State spending continues to outpace revenues while oil production declines. Tourism is challenged with fewer cruise ships visiting Alaska and the struggling economy. Alaska’s air cargo market is on the decline. The mining industry is under attack. The Endangered Species Act has the potential to seriously threaten future development on the North Slope and in Cook Inlet. Alaska lacks a stable energy base with Interior and Rural Alaska struggling with high-energy costs. Southcentral Alaska is facing See Chair’s message, Page 2

President’s message: Be prepared for change By Wayne Stevens

In the bestselling book “Who Moved My Cheese,” author Spencer Johnson, M.D., relates a tale of change and how people deal with the changes they find thrust upon them. The book tells the story of how two mice and two little people suddenly discover that their “cheese” has disappeared. Each adapts to change differently. In fact, one character does not change at all. This short story reveals interesting insights into how people and organizations each deal with the process of change. The “cheese” is those things that we take for granted, the events that occur without much thought on our part and that we expect will always occur. The story offers insight into ways we can alter behaviors and expectations as we deal with inevitable change.

Alaskans are about to discover that their cheese has been moved. Cheese in this instance is our economy, the Alaska Permanent Fund Dividend and the services government provides with little contribution on our part. The time has come for Alaskans to modify their expectations of themselves, their workplace and state government. It is time to engage and deal with the changes occurring in our state. The summer visitor season is upon us and early returns indicate that the slow advance bookings are translating into slow business and low sales. And the projections for next visitor season indicate the downward trend of visitor traffic will continue. Cruise ship companies have notified Alaskans they will deploy three fewer See President’s message, Page 2


Page 2 • June 2009 • Business to Business – Alaska State Chamber of Commerce

Governor says affordable energy is her top priority By Gov. Sarah Palin

Ensuring that Alaskans have affordable energy for decades to come is one of the most important jobs on my desk right now. To succeed, the state needs to look at every possible option and make sure Alaskans have all the information to make the right decisions. That’s why I asked the Legislature to fund a thorough review of an in-state pipeline to move natural gas from the North Slope to Fairbanks, through the Railbelt and Southcentral regions, serving as many communities in the state as is economically feasible. We’re not wasting any time in this effort. The Legislature adjourned just a few weeks ago and the gas line review is already under way, led by Harry Noah, former commissioner of Natural Resources under Gov. Wally Hickel. First, I want to reassure

Alaskans of our purpose. Our effort complements the progress TransCanada Alaska is making on a line to the Lower 48, using its state license under the Alaska Gasline Inducement Act. Alaskans can look forward to all the benefits the AGIA project will produce. We are not walking away from efforts to promote development of a spur line coming off the “big line” to distribute gas to Palin Alaskans. And we are not walking away from the longstanding hope that someday a gas liquefaction plant may be built in Valdez to ship Alaska gas to ports along the Pacific Rim. We are reviewing all options to ensure Alaskans know all the facts about progress to flow gas to our homes and businesses.

An in-state gas line to serve as many communities as possible is one of the options, and would not interfere with plans for the larger interstate pipeline. Geologists say there is enough gas on throughout the North Slope for both pipes. There is enough investor interest for both pipes. And there may be enough consumer demand for both pipes. A smaller in-state line could be put into operation sooner than a spur off the big line, and timing is crucial for Alaskans. Each winter brings more worries about gas shortages, unaffordable energy prices, and residents choosing which bills they can afford to pay that month. This is unacceptable. The smart move is to look at the costs, the challenges, and the feasibility of an in-state line to meet our needs

sooner rather than later. The Legislature directed this review to include a full analysis of all possible pipeline routes, to look at any economically feasible options for spur lines, and to coordinate with any and all parties interested in building, owning or operating the line. My team is working with experts and interested parties to prepare cost estimates, and to figure out what is needed – from gas supply contracts at one end of the pipe to gas purchase contracts at the other end. Unless reasonably priced gas goes into the line, no one will be able to afford what comes out. To help reduce the risk, my team will start the process of applying for right-of-way permits along the preferred pipeline route – after the Alaska Natural Gas Development Authority (ANGDA) makes that choice later this summer. If the in-state line goes ahead along that route, the state

will have saved time by starting the right-of-way process, rather than waiting. Timing is crucial. We know Cook Inlet developed natural gas reserves are declining. We know consumers are worried about price and supply. We know we need more storage capacity to hold gas produced during the summer until it’s needed in the cold, peak-demand winter months. Our review is looking at all these issues. We are fortunate to have many possibilities for solving our energy challenges. Possibilities include explorers finding and developing new gas supplies in Cook Inlet. Perhaps a spur line off the big line will be built in short order. Experience shows us that the prudent thing to do is consider all options to maximize benefits for Alaskans, and that is what we’re doing in readying a plan to ensure our residents have the gas we need.

Chair’s message Continued from Page 1 looming shortages of Cook Inlet natural gas with no exploration on the horizon. The big gas pipeline isn’t a sure thing and the bullet line needs an industrial base to be viable. We should expect energy issues and stability to be at the forefront this next legislative session. Alaska needs an energy policy, however; we do not really have a mutually recognized and accepted policy. Without a policy, how can you have goals? Without goals, how do you create a plan? Alaskans have seen the end of cheap energy and while we might think we can do everything with alternative energy that we now do with fossil fuels, it just is not possible. The public has started to speak up about what they think a statewide energy policy and plan should look like, but

Alaska has a long way to go when it comes to reaching agreement on an energy policy for the state. If you are a business owner, now toss into the mix insurance costs, health care, labor laws, minimum wage, taxes and more. Are you still asking “How do I keep up? Who’s looking out for me? How can I make difference? What should I do?” Here are a few simple steps you can take. • Join the Alaska State Chamber of Commerce and join your local chamber. Both groups are looking out for the interests of business and their community on the statewide and local levels. • Become active; attend seminars, conferences and legislative fly-in events.

• Educate yourself. Write letters. Speak up. Support the business organizations and elected officials who share your interests. It’s summer and while we might want to sit back and enjoy it, we can’t forget that this next legislative session is likely to be divisive with a tug of war between the Legislature, the governor and the public. Now is the time to reach out to your legislators, to build relationships, to gather information and insight on issues, and to work to influence legislators on issues important to business. As business people it may seem that at almost every turn the deck is stacked against us, that business is under attack. One thing is certain, if you don’t get involved, if you don’t speak up, you will get run over. The choice is yours.

President’s message Continued from Page 1 ships to the Alaska marketplace. This translates into roughly 140,000 fewer cruise ship passengers visiting coastal communities, traveling to Southcentral Alaska and on to Interior communities. There is much discussion about the permanent fund’s ability to pay a dividend this fall. While legal opinions indicate it is possible, with the fund still down by some $10 billion, is it probable? With the low oil prices and declining oil production, the state of Alaska is Stevens facing a more than $1 billion budget shortfall. Companies in the oil business are cutting expenditures, which influences companies and organization far from the point of production. In the parable about the cheese, one

character records his findings on the walls as he travels along the maze. Using this knowledge, he realizes the necessity of adapting to change. When change happens, many times it is not something we look forward to, or enjoy. But as Gen. Eric Shinseki, retired U. S. Army Chief of Staff said, “If you don’t like change, you are going to like irrelevance even less.” Alaskans have the ability to “see the handwriting on the wall” and begin to do what is necessary to adapt to the changes occurring every day in our state, businesses and communities. All too often, we hear people say they feel powerless to change what is happening in government. Not true. People transfer power to government through the election processes.

We must not allow government to become the answer for all that happens or for the changes occurring. Perhaps it is time to take some of that power back. Alaska State Chamber of Commerce Board Members are working on a number of changes, including activation of our political action committee, that place the business community in more proactive position. A political action committee gives voice to business interests. Working with like-minded business organizations, we will be more active in the upcoming election cycle. There is strength in numbers. Like many hands all pulling on the same rope, when individuals and small groups work together on similar issues, we can make positive changes that benefit the entire business community. Together, we can give voice to the concerns of business. We can help employees and other business people become regis-

tered voters and serve as information sources for our employees on issues that affect businesses, employees and their jobs. If we do not vote then change happens to us instead of change working for us to improve the business climate. We must engage in the process if we want to insure the continuation of Alaska’s robust business climate. Are you ready to engage and affect the outcome of the change occurring around you and to you? Remember these tenets from “Who Moved My Cheese:” • Change happens • Anticipate change • Monitor change • Adapt to change quickly • Change • Enjoy change • Be ready to change quickly and enjoy it again and again

It pays to advertise in the Alaska Journal of Commerce! Reach thousands of business minded people every week by calling 561-4772 to speak to an account executive about placing your advertisement today! ALASKA

Journal of Commerce www.alaskajournal.com


June 2009 • Business to Business – Alaska State Chamber of Commerce

• Page 3

Interior Department involvement in OCS raises concerns By U.S. Sen. Lisa Murkowski

The U.S. Department of the Interior is currently involved in negotiations with the Center for Biological Diversity and the Native village of Point Hope over the future of oil and gas leasing on Alaska’s outer continental shelf (OCS). I’m deeply concerned that the outcome of these negotiations could delay oil and gas exploration in Alaska’s northern waters, harming both to our state’s economy and the nation’s energy security. The long-term stability and success of our economy depends on our ability to access reliable, affordable and abundant energy. Oil and gas development on Alaska’s OCS is a critical component of America’s domestic security and central to the economic success of our state. The development of our natural resources has been good for

Alaska. Oil and gas revenues account for nearly 90 percent of our state’s general income and roughly 40 percent of our local government revenues. More than 100,000 Alaskans work in jobs connected to the discovery, production and shipment of oil and gas, and a recent study by the University of Alaska found that new offshore energy pro- Murkowski duction would create another 35,000 jobs annually for the next 50 years. The waters off our coastline hold tremendous promise – the Chukchi Sea is estimated to hold 15 billion barrels of oil and 77 trillion cubic feet of natural gas, the Beaufort Sea 8 billion barrels of oil and 28 Tcf of gas, and the North Aleutian Basin has roughly 700 million barrels of oil and 8.4 Tcf of gas.

Despite that promise, development of Alaska’s offshore resources has been stalled by environmental lawsuits and permitting issues. So far, no production or substantial seismic activity has occurred in either the Chukchi, Beaufort or Bering seas because of legal challenges. A federal appeals court in April vacated the 2007-2012 leasing program for Alaska’s OCS on the basis that the previous administration did not properly assess the effect on the environment and marine life of expanded oil and gas leasing. Interior Secretary Ken Salazar has asked the court to clarify its ruling in regard to exploration blocks that have already been leased. It’s my hope that existing leases in the Chukchi Sea – $2.6

billion worth – will be allowed to stand. It’s also my hope that the court will let Interior fix any shortcomings in the Alaska portion of the five-year plan without requiring it to develop and approve a new one. To satisfy the court’s request and get the five-year plan back on track, Interior need only make a few technical changes to the underlying environmental assessment. No new environmental studies need to be commissioned, so there’s no reason for a lengthy delay. Secretary Salazar recently visited Anchorage and Dillingham to hear testimony on offshore oil and gas activity. While I agree that further study is prudent before allowing oil and gas leasing near Bristol Bay, I believe exploration in the Beaufort and Chukchi seas can be done safely and should be allowed to proceed. Federal law provides for a strict examination of the environ-

mental impacts of offshore exploratory drilling. Actual production would not take place until after the exploratory phase and the true environmental impacts can be assessed and debated. This is nothing new – five exploratory wells have been drilled in the Chukchi since 1988 with no known adverse consequences. I understand and appreciate the concerns of the residents of Point Hope about the potential threat to the bowhead whale, which they depend on for both physical and cultural sustenance. That’s why great care was taken to make sure the areas offered for lease were a safe distance away from the bowhead’s traditional migratory path. Exploration of the Chukchi and Beaufort seas is critical to keeping the trans-Alaska oil pipeline operating. North Slope See Murkowski, Page 5

Agenda in Washington busy for America’s business sector By U.S. Sen. Mark Begich

I just marked just six months as Alaska’s newest U.S. senator. Every congressional observer has said this time in Washington, D.C., has been the busiest in memory. That’s because we are facing some of the most challenging times in recent history: two wars in the Middle East, unpredictable threats from North Korea and the worst economic crisis since the Great Depression. Not to mention numerous other big ticket issues like health care reform, global climate change and a possible energy crisis. The good news is the new Obama administration is working well with the Congress to address these issues. Just since January, we’ve passed numerous major pieces of legislation, including: • The American Recovery and Reinvestment Act, which is bringing more than $1 billion to our state, creating and saving an estimated 8,000 jobs and providing tax relief to thousands of Alaskans. • An expansion of health care for the children of working families. Although Congress fully funded the program for five more years, until our Legislature and governor act to take advantage of this great deal – the feds pay about 70 cents on the dollar – no additional children or pregnant women in Alaska will get coverage under the Children’s Health Insurance Program. • Enhanced consumer protections for credit card users. • Anti-fraud efforts aimed at mortgage malpractice. • Fair pay act. • Comprehensive public lands act. • Reform in how weapons systems are acquired and overseen. • Small business assistance.

• Community service to encourage more Americans to get involved in their communities. • Protections for Second Amendment rights. • Among many others. As Congress heads into a busy summer, there are many issues on my agenda. The first is health care reform, vital to both business and individuals. In 2007, American businesses spent over $500 billion on health care. When you add in the dollars that individuals spend on their health, the numbers are staggering – almost 20 percent of America’s overall GDP. More than 115,000 Alaskans are uninsured – nearly 18 percent of our population. Some 80 percent of the uninsured here are from working families who can’t afford the cost of care. And it’s no wonder: So far this decade insurance premiums have grown nearly six times faster than wages. Begich My health care reform priorities are increasing the number of people with health care coverage, making sure people can keep the insurance they have, ensuring people have doctor choice and covering people with pre-existing conditions. I also will work hard to improve veterans’ health care and strengthen the Indian Health Service. My second top priority domestic issue is the Alaska natural gas pipeline, the one project that can do most to help revive America’s economy. As efforts to deal with climate change pick up momentum, there is no more abundant, clean-burning fuel than natural gas. It produces 30 percent less carbon dioxide than

oil and 45 percent less than coal. At an estimated price tag of $30 billion, the Alaska gasline project would be the largest construction project ever in North America. Building it will require 50 million worker hours, hiring tens of thousands of workers. It could reinvigorate America’s steel industry, requiring up to 10 times the steel needed for the oil pipeline. I join a growing chorus both here and in Washington who are frustrated with the lack of progress on this project. During his campaign, candidate Barack Obama embraced the Alaska gasline. Now as president, he has designated it one of the top five “green energy” priority projects for his administration. In recent conversations I have had with the President and his top advisors, I know they also are frustrated with lack of progress on the Alaska gasline. As the economy recovers and the nation’s appetite for gas grows, Alaska gas must be poised to grab a share of the market before the window closes on us. Instead of treating it as an Alaska project, I am urging the Obama administration to elevate the Alaska gasline to the national energy agenda. I am confident the Obama administration understands the potential of Alaska gas for the country’s energy future and is prepared to work with us to encourage this ambitious effort. Finally, I will continue to reach out to educate my colleagues about Alaska, from oil and gas to Second Amendment rights. I am a freshman senator, but am in a unique position to bring positive focus to our great state as a member of the party in power as final decisions get made. I intend to do exactly that for Alaskans for the next six years.

Energy independence will lead America to economic freedom By Rep. Don Young

Greetings fellow Alaskans! I hope this finds you enjoying the beginning of a beautiful Alaskan summer and I also hope you’re getting some fishing in and spending time with family and friends. Congress has been kept very busy here in Washington, D.C., so far this year, although I’m afraid that many of the things the Congress has planned will not be good for Alaska. Young As the senior Republican on both the Committee on Transportation and Infrastructure and the Committee on Natural Resources, I will be fighting for jobs and quality of life for all Alaskans throughout this Congress.

Our country, and our great state of Alaska, have been through quite a bit over the past year. This Democrat Congress has spent $1.793 trillion since Jan. 20. These days, before children are even conceived, they are incurring massive amounts of public debt. We have passed a $819 billion stimulus bill that does extremely little to produce new jobs, and a multi-trillion dollar budget that only funds more social programs. Despite the president’s claims, Americans have lost more than a million and a half jobs since the stimulus was passed and continue to lose thousands of jobs every day.

We have no incentives to produce anymore; we are buying everything from other countries. So for example when you want to make things “energy efficient” and need to buy solar panels, you’re buying them most likely from Asia, which leads the industry in production. How does that help us? I have stated repeatedly, and I still stand by my statement, the way to economic freedom is not spending trillions and trillions of taxpayer dollars; it’s energy independence. Oil leases in the Outer Continental Shelf, which follow the strictest of environmental regulations, provide jobs and revenue as well much needed fuel to a state and country that is currently beholden to foreign countries for its energy needs. And let’s not forget it provides the basis for materi-

als such as plastics, diapers, aspirin, biofuels, life jackets, pacemakers, etc. The estimated 10.4 billion barrels of oil locked up in the barren tundra in the northern plain of ANWR will provide more than one million barrels of oil each day for American consumers for the next 30 years. We could have ANWR online within five years. With my bill, the American Energy Independence and Price Reduction Act (H.R. 49), the revenues from the lease sales will fund a wide variety of 18 different renewable and alternative energy projects including hydro, solar, geothermal and biofuel. Nothing provides more benefits for our quality of life than access to energy, and it is incredibly important to our future as a world power that we

take advantage of our ample energy resources to ensure that future. Energy is the oxygen of modern life, and reasonably priced energy has given our nation a standard of living second to none. Freedom of movement, upward mobility and opportunity exist in this nation in large part because the use of energy to amplify human strength makes all things possible. As Alaskans, our opportunities are endless and we must all continue to work together to ensure the interests of our great state are met. As always, please feel free to contact me with your ideas, concerns, and feedback. I am optimistic for what our future holds and will continue to work with our Alaskan Delegation to make sure your voices are heard. Thank you and God bless.


Page 4 • June 2009 • Business to Business – Alaska State Chamber of Commerce

ny’s chief executive officer. “We create teams that are as diverse geography and economically as possible because that is what is going to happen in real life,” Hyer said. Because nobody knows what their peers are like going in, he said he frequently sees quiet kids step forward to play leading roles on the Business Week stage. Hyer gave a presentation to the Alaska State Chamber of Commerce meeting May 5 called “Preparing High school students for Business and the Real World.” He presented information about the program, offered ideas on opportunities for Alaska students to attend Business Week Program Washington or other states, and shared insight on the creation of a similar Business Week Program in Alaska. The role of the Foundation for Private Enterprise Education is to promote partnerships between student groups and not for profits, he said. Although the total cost of Business Week is $925 per student, partnerships and financial sponsorships from businesses like BP, Boeing, Tote, Walmart, State Farm and ConocoPhillips make it possible to offer the week-long residential educational opportunity to all Washington state high school students – regardless of grade point average – for $325, Hyer said. And financial assistance also is available as needed. Adult mentors donated by the businesses community are another key to the program’s success, Hyer said. Last year, Boeing provided 29 program mentors to the program. “The growth and personal benefit the mentors get is amazing,” Hyer said. “They are amazed at what they gain.”

Many program volunteers and sponsors are former Business Week students themselves, he said. Though there is no data tracking students’ long-term success after participating in the camp, Hyer has lots of anecdotal information from parents who have called him later to report on big changes in their returning children. He told the story of one mom who called after camp to see her son had come home a new man. “What did you do to my son?” she asked Hyer. “His hat is on straight. His clothes are different.” Hyer said the explanation is simple: “He knew he wanted to go into business.” It’ not unusual for the hands-on experience at camp to encourage C students to achieve more, he said. “It produces a longterm change in thinking patterns. It can really, really have an impact on a kid’s life.” More than half, 65 percent, of Business Week participants are female, he said. It’s also not unusual for one or more of the young women to be homesick for her boyfriend who isn’t attending camp and want to go home. “It’s a good life lesson if they can get through the week,” Hyer said. “We encourage kids to develop themselves first and pick up the ‘other’ along the way.” He shared the story of one young woman a few years ago who came to Business Week with her sights set on a career as a flight attendant. But Business Week inspired her to pursue a career in accounting and today Brenda Morris is the chief financial officer for Icicle Seafoods Inc. Other states and nations have used the Washington program as a model to create their own. States include California, Colorado, Iowa, Minnesota, Missouri, North Dakota, Ohio, Oregon, South Carolina, Pennsylvania, South Dakota, Utah, West Virginia and Wisconsin. Internationally, Australia and New Zealand have their own programs. Hyer is one of a group of volunteers who are paying their own way to travel to Gdynia, Poland, for 10 days to work with 100 Polish students who will be taught in English this summer at the country’s first Business Week. Washington students who completed the program say they see Business Week as a catalyst for personal change. Hyer said 88 percent say they will work harder in high school after the program, and 94 percent

PHOTOS COURTESY OF WASHINGTON BUSINESS WEEK

Biz Week Continued from Page 1

report they are better able to work as a team after the experience. Camps are hosted on the campuses of Gonzaga University, Western Washington University, Central Washington University and Pacific Lutheran University. Students can pay $50 and receive two college credits for the week. For some students, Hyer said the camp is their first time on a college campus. “It gets them thinking ‘Maybe I could go to college.’” If Alaska is interested in starting its own

Business Week program, Hyer suggested sending a businessperson and a student to participate this summer in Washington’s camp. Teachers can get continuing education credits for attending, too. He said lining up sponsors and funding are the keys to starting a program in Alaska. In Washington, by the end of the week, most kids want to call it business month, he said. For more information about Business Week visit, www.bizkids.com, or for more information about Washington Business Week, visit www.wbw.org.

Enterprise Washington helps business stay informed on the issues By Heather A. Resz

Enterprise Washington President Erin McCallum gave a presentation at the May 5 Alaska State Chamber of Commerce meeting about the nonprofit, nonpartisan organization’s work promoting a good business environment for all business. She said Enterprise Washington’s mission is to “empower Washington’s private sector to become engaged in our political process through the delivery of smart politics for business.” Its vision is “To keep Washington State businesses competitive in the national and global marketplace by fostering a politically educated and involved corporate community.” Its four strategic objectives are: intelligence gathering; education and grassroots communication; candidate recruitment; and political action. “We engage Democrats and Republicans who are citizen legislators to think about the economy first,” McCallum said at the State Chamber meeting during her presentation titled “Understanding Politics from a Business Perspective.” “We’re in the elementary stages of the program,” she said. “We’re hoping to develop a business coalition with centralists from both sides of the aisle.” McCallum said the non-partisan, pro-business Enterprise Washington has invested time and money examining

and modeling the competition’s strategy. “We need to recognize what is happening and embrace it,” McCallum said. “You have to recognize that politics is a team sport. The competition recognizes it.” She said the keys to growing a more pro-business Legislature are playing to win, adopting a disciplined budget and using an endorsement process based on criteria not partisanship. “There is more that unites us than divides us,” McCallum reminded members of the business community present. Public policy affects the bottom line of every company, she said. “What is good for business is good for the economy of the whole state.” It is also important to understand your state’s changing demographics – minority populations are increasing in Washington, and overall, its population is expected to increase by another 800,000 people by 2020. “We’ve become much more of a melting pot,” McCallum said. “It’s not the same Washington that my parents and grandparents knew.” The cost of a competitive Washington State campaign in 2006 was $225,000 to $400,000 and in 2008 the cost ranged from $325,000 to $650,000, she said. The group made an average investment of $140,000 in four legislative races last year and won three. Enterprise Washington’s “Growing Roots for Our Work-

force” is a “non-partisan, pro-business Web-based tool for becoming informed on issues that affect your company and its employees.” Among other things, the site lets users find their elected officials, contact them directly and call up their voting records. Citizens used GROW to deliver more than 700,000 messages to elected officials last year. Washington is also one of 25 states that use a service called PowerBase, which scores candidates based on 76 variables from U.S. Census records and polling campaign results from 2004, 2006 and 2008. Business scores range from 3 to 100 percent by district. If a district scores 60 percent or more, voters want to be represented by an individual who comes from the private sector. If the score is less than 40 percent, don’t waste your breath McCallum said. “It allows the Chamber to be much more precise in terms of research and support,” she said of how P-Base is useful. McCallum said Enterprise Washington spent $45,000 to $50,000 to get a preview of the election data and then focused on vulnerable districts. Enterprise Washington uses the Jobs PAC to fund its election activities, McCallum said. She suggested Alaska business people should also work together to deliver a united and streamlined message to lawmakers.


June 2009 • Business to Business – Alaska State Chamber of Commerce

• Page 5

Alaska-Yukon-Pacific Centennial Celebration in Seattle By Michael J. Herschensohn, Ph.D. Manager City of Seattle’s A-Y-P Centennial

Make no mistake about it! Alaska was the first and foremost reason for the 1909 Alaska-Yukon-Pacific Exposition held between June 1 and Oct. 16, 1909, on the campus of the University of Washington. Godfrey Chealander, an Alaska booster, miner, Skagway businessman and organizer of the Alaska exhibit at the 1905 Lewis and Clark Exposition in Portland, Ore., disappointed that he did not have adequate time to do justice to Alaska, proposed that Seattle hold a fair about Alaska. Seattle leaders, especially the owners and editors of the Seattle Daily Times (now the Seattle Times) embraced Chealander’s idea, which quickly morphed into a world’s fair celebrating the 10th anniversary of the Klondike Gold Rush and Seattle’s important new markets across the Pacific Ocean. Economic and political reasons required postponing the fair to 1909. Alaska figured prominently in the fair. A leisurely stroll around the grounds reminded everyone of the territory. Starting at the Klondike Circle a visitor might stroll down the Pay Streak and then up to Nome Circle, crossing Lucky Strike, Bering, Seward, Yukon, Tanana and Alaska Avenues. On the Pay Streak, the entertainment zone or midway, the Gold Camp of Alaska, the Eskimo Village, the Klondyke Dance Hall (shut down in July when exposition operators decided its programs too scabrous to continue) and Alaska Theatre of Sensations reminded fairgoers of the great value of Seward’s Folly! Indeed, on Sept. 10, 1909, fair organizers unveiled a statue of William Seward in the presence of two of his sons. The Alaska Building paid for by the United States government stood out as the most prominent reminder of the Northern Empire’s importance to the fair and Seattle pros-

perity. Located just off the head of Rainier Vista and the fantastic view to Mount Rainier, the building, albeit temporary, provided a beautiful example of neo-classical architecture that must have wowed the crowds. The building’s “exhibits showcased the tremendous resources that the territory had to offer.” Naturally, gold figured large, as did Alaskan wildlife and the territory’s timber, whaling and mining industries. The exhibits also proved to fair visitors that the territory was not a barren wasteland with exhibits proudly displaying flowers, fruits and vegetables harvested in the northland. This summer and fall a special exhibit at the University of Washington’s Special Collections focuses on Mary E. Hart. The exhibit highlights Hart’s role not only as the vice president of the National Hostesses Association, women who greeted visitors in the many exhibits around the fairgrounds, but also as a commissioner of the Alaska commission and frequent traveler to Alaska who collected children’s arts and crafts for the Alaska Building. Hart welcomed children from Alaska on Aug. 5, 1909, Alaska Children’s Day and members of Alaska Women’s Auxiliaries, the day after on Alaska Women’s Day. Hart’s mind was set on transforming the image of Alaskan women whose dance hall history during the Gold Rush loomed large in many American imaginations. Recent histories of the fair play down the importance of the salmon fishing industry in Alaska and the Alaska Building, but the unfortunately named Iron Chink, salmon butchering machine, neatly carved up salmon while reminding visitors of the important contribution of Chinese butchers to the success of the industry in Alaska and Washington State. Indeed, visitors to the Alaska Building could taste a different salmon snack on every one of the fair’s 144 days. Of all the unexpected outcomes of Godfrey Chealander's seminal thought, Alaskan statehood is perhaps the

most surprising. The exhibits in the Alaska Building and the attention given to the state’s mineral and other riches moved the territory front and center in the nation’s eye. Some historians say that the Congressional decision to accord the District of Alaska territorial status on Aug. 14, 1912, may have been partially due to the A-Y-P. Becoming a territory was a first big step on the way to statehood, and without the obstacles of World War I, the Great Depression and World War II, it would have surely happened sooner and with the ties to A-Y-P all the more apparent. The purpose of the Centennial Celebration is to remind Seattle citizens and visitors alike of the exposition that put our region on the national map, of the importance of international trade in the region’s economic lifeblood and of the continuing role of Seattle as a purveyor of goods to Alaska. With over $4 trillion a year in trade by air and sea, Alaska dominates our region’s shipping activities as never before. The centennial will also remind the people of Alaska and Washington state of the new economic stimulus represented by the 221 cruise sailings from Seattle to Alaska this summer. Alaskan visitors to Seattle can discover the importance of the A-Y-P in Seattle and Alaska history visiting exhibits at the Museum of History & Industry (www.seattlehistory.org ), the Burke Museum (www.washington.edu/burke) and many other cultural organizations. A list of events can be found at www.ayp100.org. Visitors lucky enough to be in Seattle on July 12 may want to join a crowd of well-wishers welcoming the 54 Model T Fords that will complete their reenactment of the Ocean-to-Ocean Automobile Contest that took place during the month of June 1909 as part of an effort to spread the word of the fair nationally. The cars arrive at Drumheller Fountain on the UW campus around 11 a.m.

Murkowski Continued from Page 3 oil production has fallen steadily from its peak of more than 2 million barrels a day in 1987, to roughly 750,000 barrels a day now, and production continues to fall at more than 7 percent a year. Without new oil production from the OCS, the pipeline could have to be shut down prematurely, which would be devastating to America’s energy security and Alaska’s economy. Similarly, as our nation moves toward

the production of cleaner energy, it makes little sense to stop the required investigation of a significant reserve of clean-burning natural gas. Offshore production is vital to make the proposed gas pipeline project to the Lower 48 viable. The gas pipeline will need roughly 50 Tcf of gas over its lifetime. We know where 35 Tcf of gas is onshore, but more is needed and the OCS holds the most promise for providing

a long-term supply. Alaska has the expertise to safely produce oil and gas from its abundant offshore resources, but the Department of the Interior must act to resolve the legal challenges. I’m working with Interior to make sure this case is resolved and any possible settlement is agreed to as expeditiously as possible to keep planned lease sales in the Chukchi and Beaufort seas on schedule.

We currently supply 13 percent of the nation’s domestic oil, but we could do so much more to create jobs and enhance America’s energy security if the federal government would allow us access to our resources. Sen. Lisa Murkowski, R-Alaska, is the ranking Republican on the Senate Energy and Natural Resources Committee.


Page 6 • June 2009 • Business to Business – Alaska State Chamber of Commerce

Drilling begins on first Point Thomson well By Heather A. Resz

On the day before drilling of the surface hole began on the first well at ExxonMobil’s $1.3 billion condensate project at Point Thomson, Craig Haymes, manager of Alaska Production for ExxonMobil Production Co., said the company had already invested $130 million in the high-pressure gas project. “We’ve made some great progress,” he said at the May 5 Alaska State Chamber of Commerce meeting. “Everything we’ve said we’d do, we’ve done.” Haymes has been with ExxonMobil for 20 years and was appointed manager for Alaska Production in January 2007. He is accountable for the safe and reliable operation of everything in Alaska. The project’s remote location and highpressure place it among the top 5 percent of the most complex wells in the world, Haymes said. But ExxonMobil expects to invest approximately $500 million getting the first two wells going at Point Thomson. He said that’s compared to a cost of $5

million to $8 million for a typical well in Prudhoe Bay. Although half of the underground reservoir is under the water and half is under the land, Haymes said all of it will be developed from land. “We have to drill down and out a long way.” Point Thomson is located on the North Slope, 60 miles east of Deadhorse in an area accessible seasonally by ocean, ice road, barge, helicopter, airplane or over land, when there is approved travel. Due to the depth of the reservoir and its high pressure, Haymes said only three rigs in the world were suitable for the work. That said, the Nabors rig purchased still required a $25 million upgrade to withstand the 15,000 psi the gas field will produce at the well head. Upgrades include more power and mud systems and a 172-foot derrick. Haymes said ExxonMobil plans to use gas cycling from day one to get the most condensate from the field. Phase I of the Point Thomson project – drilling, permitting and construction –

began 15 months ago and production is expected to begin in 2014. Haymes said permitting is expected to take 2.5 years to complete, which should work out fine since it will take two years to get the materials needed. It’s the only well in that pressure range on the North Slope, Haymes said. It will take production facilities with up to six-inch thick steel walls to withstand the pressure. “That’s going to take someone awhile to weld up,” he said. More than 400 people are working on the project now, Haymes said and at its peak it will employ 1,000 people in Alaska with a year-round workforce of 400. Last summer work included grading the 13-acre pad and insulating it with over 10,000, six-inch foam pads and 1700 Rig Mats to insulate the gravel and protect it from even the heaviest loads. Over 400,000 gallons of water and fuel tanks were transported to the site last summer and this winter, and this summer the tank farm’s capacity will expand to 1.5 mil-

lion gallons to supply the 15,000 gallons of diesel a day the rig will use. Production is expected to begin in 2014, Haymes said. A pipeline from Point Thomson to Anchorage pipeline will deliver the condensate to market. The facility will be designed to produce 200 million cubic feet a day of gas which will be re-injected into the field while 10 mcf a day of condensate will be collected and distributed. “It’s essential to the success of a gas pipeline. We will be part of the gas pipeline.” The title of Haymes’ presentation to the Alaska State Chamber was "Point Thomson Project Update" Plans for summer 2009 include: • Drill surface hole for 15 and 16 wells; each about one mile deep. • Barge in additional supplies. • Process detailed design for production facilities. • Drill intermediate holes for Point Thomson 15 and 16 wells beginning in Winter 2009/2010.

Political pundits recap past legislative session By Heather A. Resz

Perhaps the biggest revelation from the political pundits who spoke at the Alaska State Chamber of Commerce luncheon May 5 had nothing to do with Alaska’s elected officials. The day’s bombshell came after a bit of good-natured teasing when moderator Steve MacDonald share the origins of his accent, which leads the KTUU Channel 2 News Director to say things like “a-boot” instead of “about.” After Kip Knudson’s introduction, MacDonald took the podium and explained. “My father was from Glasgow, Scotland, and my mother was from Ontario, Canada,” he said. “I’m just a mutt who speaks funny.” The luncheon, sponsored by ConocoPhillips and the Pebble Partnership, included a panel discussion of Alaska politics with media professionals Michael Carey, Rhonda McBride, Matt Zencey and MacDonald. McBride, a longtime journalist with KTUU, says she doesn’t expect lawmakers to return for a special session before January 2010. “There was some frustration that the 90-day session meant committees had to limit testimony,” McBride said. “I’ve heard some concerns that the shorter session really interferes with the deliberative process.” Anchorage Daily News Editorial Page Editor Zencey agreed. “There is substance to the complaint that 90 days isn’t enough to deal with very complex issues,” he said. The Legislature’s work schedule was further condensed because Mondays and Fridays are travel days for legislators and members took a week off to go to Washington, D.C., in mid-session, Zencey said. And then there were the conflicts no one anticipated –

like the nomination of Wayne Anthony Ross for Alaska Attorney General and the tug of war between the Legislature and Gov. Sarah Palin over who would fill the Juneau Senate seat left vacant when former Sen. Kim Elton accepted a post in the Obama administration. “I’m puzzled as to why she picked that fight,” Zencey said of the struggle to appoint a senator to the vacant seat. MacDonald said the governor’s relationship with the Legislature deteriorated in the wake of the Troopergate scandal and her selection to the McCain presidential ticket. And it continued on a rocky course throughout the legislative session, he said. Zencey said legislators were united in their opposition this session to a series of decisions by the governor that seemed directed at a constituency outside Alaska. An editorial writer for the Anchorage Daily News and host of KAKM Public Television’s Anchorage Edition, Carey called the bad blood that exists between the Legislature and the governor “quite striking.” “Where people were quietly critical of Palin before, her critics are loud and abundant these days,” he said. “Some Republicans are as critical as Democrats.” MacDonald asked the panel to talk about the choice of Ross for attorney general and events that led up to his rejection by the Legislature. When Ross was appointed, the rumblings in the hall where that the vote would be close, but he would probably be approved, McBride said. “But the Juneau seat controversy got some senators downright mad.” Panelists said they weren’t sure whether the flap over filling the seat turn the tide against Ross’ appointment, or whether it was his past inflammatory language, or whether it was telling a reporter – with tape rolling – that the law isn’t important. “I think that’s what sank him,” Zencey said. “When he

ALPAR presents awards Alaskans for Litter Prevention and Recycling honored the Dillingham Chamber of Commerce for its Outstanding Litter Program. “ALPAR’s annual awards honor the best and brightest people in Alaska’s businesses and organizations who keep Alaska litter free and recycling,” said ALPAR president-elect Roger Briley before introducing 2008 award winners. Dillingham Chamber was one of 11 groups ALPAR honored at its 26th annual awards banquet at the Alaska Zoo April 30. ALPAR recognized the local Chamber for its spring and fall cleanup programs that inspired volunteers to collect 2,600 bags of litter and debris from public areas and along roadways in town. Volunteers involved in the community litter cleanup program represented groups ranging from Adopt-a-Highway volunteers, the Girl Scouts, the wrestling team and many local business people. The city

of Dillingham chipped in with donations of Dumpsters and free dump days. In gratitude, the business community hosted a cookout for volunteers. What was the most interesting item volunteers cleaned up? A baked ham. Kudos to Dillingham Chamber’s executive director Tammy Conahan and President Frank Corbin from Nushagak Cooperative for leading this award winning clean up effort. The nonprofit ALPAR organization was formed in 1983 by a group of energetic business people dedicated to increasing economically viable recycling and eliminating litter in Alaska. ALPAR has also managed the backhaul of recyclables since the mid-1980s, thanks to the on-going commitment of Horizon Lines, Totem Ocean Trailer Express, Lynden, the Alaska Railroad and Northland Services.

said ‘That isn’t what I said,’ that’s what did him in.” McBride said the remark raised concerns put forward during the Troopergate controversy about whether the attorney general works for the governor or the people of Alaska. Carey said “The longer the hearings went on, the worse he seemed to be doing. I was yelling at the TV ‘You have to stop talking.’” Panelist McBride referenced a quote by former newsman turned legislator Rep. Mike Doogan who said that when Palin ran for vice president Alaska didn’t get the same person back. “I don’t know that the Legislature likes the governor it got back,” McBride said. Carey said the governor’s national ambitions make it difficult, but he suggested the speaker, senate president and governor sit down and figure out how to work together without theatrics. He said the governor’s ever-changing stance on the stimulus money makes it hard not to look at it her behavior through the lens of her national ambitions. “All of the governors who have rejected portions of the stimulus money have national ambitions,” Carey said. Zencey said the governor seems to be trying to make a statement by rejecting millions in federal energy funds. “I’m guessing many people in this room would be glad if we took it and spent it,” he said. Panelists said legislative staff spent a lot of time trying unsuccessfully to find the strings she talking about. “She has a credibility problem,” Zencey said. Panelists pointed out that none of this moved Alaska closer to solving real concerns like funding state government while oil prices are low, how much natural gas is left in Cook Inlet, the need for a natural gas pipeline and bullet line, or declining throughput on the trans-Alaska pipeline system.

Carlile receives Tahoma Business Environmental Award Carlile Transportation Systems received the Tacoma-Pierce County Chamber’s 2009 Business Environmental Award. The annual award recognizes entrepreneurial efforts that meet a high standard of excellence for environmental, preservation and protection accomplishments. Award sponsor Tom Taylor of Taylor-Thomason Insurance presented the seventh annual award to Linda Leary, president of Carlile, at the Chamber’s Good Morning! Breakfast event April 28. A full-service transportation company, which provides service in the Pacific Northwest and Alaska, Carlile demonstrates its environmental commitment in ways ranging from the December 2008 purchase of a medium-duty Kenworth T370 – the first hybrid diesel-electric truck operating on the West Coast – to the use of 32 alternative power units that have saved some 800 gallons of fuel in the past two years. “This year, Carlile has deservedly been acknowledged with the Tahoma Business Environmental Award by having invested money and thought into ways that would improve the environmental performance of their overall operations and thus, impacting our community’s quality of life,” the Tahoma Chamber said in a press release announcing the award. Carlile’s additional environmental initiatives include: • Using Qualcomm Sensortracs monitoring system to track vehicle and driver behavior related to fuel consumption, speed, idle time and engine revolutions. The collected data is a tool to help reduce consumption and identify safety and efficiency opportunities. • Testing a Cummins 2010 engine in Alaska and working with PACCAR to test an engine made by PACCAR Europe. • Discussing with Kenworth the possibility of developing a liquid natural gas engine that could potentially be tested in Alaska.


June 2009 • Business to Business – Alaska State Chamber of Commerce

• Page 7

Updates from Alaska’s Local Chambers Homer Chamber of Commerce The Homer Chamber of Commerce just kicked off its 24th annual Homer Halibut Jackpot Derby. Last year’s winner landed a 345.8-pound barn door halibut and took home $45,475 in cash prizes. The derby runs through Sept. 30 and tickets are $10 each or you can purchase a 10-day fishing pass for $75. Prizes include: largest fish, monthly prizes, released fish, lady angler and kids, tagged fish, and new this year is the lefty prize. When fishing in Homer don’t forget your Derby ticket! This year, in response to a potential slowdown in tourism, some Chamber members have opted into a cooperative marketing program to reach out to Alaskans and remind them that “there is a world class destination right in their own backyard - we call it Homer.” This May, the Chamber in cooperation with local businesses, launched a TV, radio and Web site campaign targeted at bringing Alaskans to Homer. Go to www.Homer2009.org for the hottest summer deals! We are delighted this year to host the 2009 50th annual State Chamber Fall Conference and Trade Show at Land’s End Resort in Homer. Planning is underway so stay tuned to the Homer Chamber Web site and the State Chamber E-News for more information. Take a long weekend and bring your friends and family, there’ll be plenty of fun for everyone. While in Homer, stop into the Chamber’s Visitor Information Center to learn more about everything there is to experience in Homer; from fishing, sightseeing, bear viewing, to

a leisurely walk along Bishop’s Beach or a stroll among Homer’s eclectic shops and art galleries. One of Homer’s prime attractions is the 4.5-mile narrow finger of land the reaches out into Kachemak Bay, known as the Homer Spit. It is the focus of fishing, recreation, dining and shopping. Here visitors will find the Alaska Marine Highways Ferry Terminal, the small boat harbor, the fishing lagoon, fishing charters and all water related recreational activities. Keep any eye out for the famous “Time Bandit” and crew from the popular Discovery Channel’s show “Deadliest Catch.” For information, visit www.homeralaska.org or contact the Chamber at (907) 235-7740. Checkout www.Homer2009.org for great summer deals for local Alaskans!

Sitka Chamber of Commerce On May 6, the Greater Sitka Chamber of Commerce sponsored the first Welcome to Sitka Day. The day was designed to make a big deal out of welcoming the passengers and crew of the first large cruise ship of the season. This year, it was the Celebrity Mercury, carrying 1,740 passengers. The day started with the Sitka High School Jazz Band playing some rousing tunes as the first visitors came off the lightering craft. Greeting the visitors were the City Administrator, Chamber of Commerce and Sitka Convention and Visitors Bureau executive directors, the Raptor Center eagle and a bear. A Welcome to Sitka banner was hung on the Crescent Harbor Shelter, including an invitation asking the visitors to join

us for lunch from 11 a.m. until 1:30 p.m. The Westmark Sitka Hotel brought their outdoor Chowder Hut to the shelter and served hot dogs, hamburgers, chowder and chili. At noon the New Archangel Dancers and the Native dance group performed a few dances, while locals enjoyed lunch with visitors. Part of the welcoming atmosphere throughout town was created via a poster that was hung in most of the shop windows on Lincoln Street, with a design donated by a local artist. The same design was duplicated on some small flyers that were handed out to the visitors that day, and a slightly revised version was framed and presented to the ship’s officers. The posters will be staying in windows downtown all summer, and have turned out to be very popular with our visitors. So many people have asked for a copy of the poster that the Chamber decided to use the design again to create a card that will be given out for free. The card invites visitors to come back to Sitka, provides information on Alaska Airlines and the Alaska Marine Highway, lists all the major activities going on all year, and offers discount coupons from the primary hotels in Sitka. The Sitka Chamber plans to do another Welcome to Sitka Day next year, and expects to get even more participation in this fun day. The visitors loved it and the cruise line appreciated the gesture. For information, visit www.sitkacoc.com or contact the Chamber at (907) 747-8604 or via e-mail at chamber@ptialaska.net.

Welcome New Members Biscotti’s Espresso has two locations on the Alaska Regional Hospital campus. Serving teas, espresso, cold drinks and blended drinks, fresh fruit and bake goods, Biscotti’s concentrates on keeping staff, patients, visiting friends and family alert during the business day at the medical center. David Kasser, Owner 2801 DeBarr Road Anchorage, Alaska 99508 (907) 783-3402 davenpilot@hotmail.com Denali - The Alaska Gas Pipeline LLC is owned equally by BP and ConocoPhillips. It is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas per day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada. Denali remains on track to meet a key milestone, an open season in 2010. In 2008, Denali spent $55 million to advance the project in the areas of field data gathering, engineering, regulatory engagement and stakeholder outreach. Denali’s 2009 program will be broader in scope than the 2008 program and will represent an increase in spending of approximately 50 percent. The Alaska Gas Pipeline project will be the largest private sector construction project in North American history and is unrivaled in scale, cost and complexity. Denali brings the expertise and financial strength required to successfully execute a project of this magnitude. Physical Address: 188 W. Northern Lights Blvd., Suite 1300 Anchorage, AK 99503 Contact Information: info@denalipipeline.com www.denalipipeline.com Anchorage Office: 907-865-4700 Tok Field Office: (907) 883-1300 MSI Communications, formerly Marketing Solutions Inc., is an innovative advertising,

marketing, government affairs and strategy group. We offer our clients expert guidance from the most talented professionals in the field. MSI’s industry experience includes tourism, transportation, oil and gas, initiative campaigns and work with Alaska Native corporations. In today’s fast-paced media world, the company is on the cutting edge with statewide communications plans that integrate traditional marketing tools with new social media techniques into overall strategy. MSI boasts a reputation for helping a variety of clients communicate effectively and get results. Laurie Fagnani, President 3501 Denali St., Suite 202 Anchorage, Alaska 99503 (907) 569-7070

laurie@msialaska.com www.msialaska.com URS Corp. (URS) is one of the largest environmental and engineering companies providing services to federal, state and local government agencies in the U.S. and Fortune 500 corporations worldwide. Founded in 1904 through its oldest predecessor company, URS has provided engineering and environmental expertise in Alaska since 1956. We provide environmental and social impact assessments, permitting and sustainability studies, and geotechnical and siting surveys for new platforms and pipelines. URS was ranked the Number 3 Design Firm in Engineering News-Record (April 2009 edition). We have well-qualified

and experienced staff in our Anchorage, Fairbanks and Homer offices comprised of scientists, engineers, and environmental managers who have a strong understanding of the Alaskan environment and applicable regulatory requirements. With a presence in Alaska since 1956, our current Anchorage team of 85 professional and support staff is supported by over 300 URS offices in the U.S. and Canada with additional staff and extensive expertise available to your needs. URS is known for our strong biological expertise, particularly for projects affecting marine mammals. We are a full-services firm offering engineering and earth science services to Alaskan clients. Joe Hegna, PE Alaska Operations Manager

URS Corp. 560 E. 34th Ave., Suite 100 Anchorage, AK 99503 (907) 562-3366 Fax: (907) 562-1297 Toll Free: (800) 909-6787 www.urscorp.com

State Chamber Member Recognized Alaska State Chamber Member Stacee Frost of Anchorage has been honored by Home Instead Senior Care, a major provider of non-medical home care and companionship to older adults, for outstanding sales and service satisfaction. Frost received the Cornerstone III and IV awards at the company's annual international meeting in Omaha, Neb., April 22-25.

SAVE THE DATES Rural Alaska Board Trip Location: Bethel, AK Date: July 14 & 15, 2009 Annual Fall Conference and Business Trade Show Location: Homer, AK at Lands End Resort Date: September 21-23, 2009 Legislative Tie-In Location: Anchorage, AK Date: October 28 & 29

FOR EVENT AND SPONSORSHIP DETAILS Go to our website at www.alaskachamber.com or call (907) 278-2727

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Page 8 • June 2009 • Business to Business – Alaska State Chamber of Commerce

Alaska State Chamber Executive Board Caroline Higgins, Chair Totem Ocean Trailer Express District L – Term Expires 2009

Margaret Russell, Vice Chair Seekins Ford Lincoln Mercury District F – Expires 2010

Wendy Lindskoog, Past Chair Alaska Railroad Corp.

Kip Knudson Tesoro Alaska Co. District K – Term Expires 2011

Charlie Boddy, Chair Elect Usibelli Coal Mine Inc. District E – Term Expires 2011

Larry J. Cooper, Secretary/Treasurer Ukpeagvik Iñupiat Corp. District I – Term Expires 2010

Mary Ann Pease District P - Term Expires 2010

Tadd Owens Pioneer Natural Resources Alaska Inc. At-Large – Term Expires 2011

Phil Cochrane BP Exploration (Alaska) Inc. Appointed – Term Expires 2009 Heidi Franklin Pebble Limited Partnership District O – Term Expires 2009

Chamber Board of Directors Portia Babcock At-Large ConocoPhillips Cory Baggen At-Large Samson Tug and Barge Renata Benett Representing: Outside Chamber Totem Ocean Trailer Express Charlie Boddy Representing: District E Usibelli Coal Mine Bill Brackin Appointed by Chair ExxonMobil Susan Bramstedt Representing: District N Alaska Airlines Phil Cochrane Appointed by Chair BP Exploration (Alaska) Inc. Jeff Cook Representing: District D Flint Hills Resources Larry J. Cooper Representing: District I Ukpeagvik Inupiat Corp. Michelle Egan Representing: District M Alyeska Pipeline Service Co. Bob Favretto Appointed by Chair Kenai Chrysler Center Heidi Franklin Representing: District O Pebble Limited Partnership Gregory J. Galik At-Large AadlandFlint LLC Mary Gasperlin At Large Arctic Slope Regional Corp. Joel Gilbertson Appointed by Chair Providence Health System in Alaska

Meet board member Kip Knudson By Heather A. Resz

It’s Kip Knudson’s second time as an active volunteer with the Alaska State Chamber of Commerce. He set aside his work with the Chamber from February 2003 to July 2005 to work with the Alaska Department of Transportation as the deputy commissioner of aviation. Knudson oversaw 257 rural airports, as well as Anchorage and Fairbanks international airports, with an annual $200 million capital program, $80 million operating budget, and more than 700 staff. Now he said he’s thrilled to return to private industry and his work with the State Chamber. Knudson is a board member for the Alaska State Chamber of Commerce and the Legislative Committee chairman. “My company needs the State Chamber to be effective,” said Knudson, who has been the government relations manager for Tesoro Corp. since August 2005. He said the State Chamber of Commerce’s work this session sculpting legislation to reform the initiative process, cruise ship discharge regulations and cost of workers’ compensation payments are issues that benefit business statewide. “We need the Chamber to work on those broader business topics,” Knudson said.

Shari Gross Teeple Representing: Tacoma-Pierce County Chamber Gross & Assoc.

Kris Norosz At-Large Icicle Seafoods Inc.

Don Habeger Appointed by Chair

Brad Osborne Representing: District T NANA Development Corp. Inc.

Joe Hegna Appointed by Chair URS Corp.

Tadd Owens At-Large Pioneer Natural Resources Alaska, Inc.

Caroline Higgins Representing: District L Totem Ocean Trailer Express

Mary Ann Pease Representing: District P MAP Consulting

Allen Hippler Representing: District S First National Bank Alaska

Skip Reierson Representing: District R Petro Marine Services/Harbor Enterprises

Stan Hooley Representing: District H Iditarod Trail Sled Dog Race

Ann Ringstad At Large University of Alaska Fairbanks

Marty Howard Appointed by Chair Wal-Mart Stores Inc.

Andrew Rogers Appointed by Chair Pangomedia Inc.

Hal Ingalls Representing: District G Denali Drilling Inc.

Richard H. Romer Appointed by Chair The Boeing Co.

Kip Knudson Representing: District K Tesoro Alaska Co.

Margaret Russell Representing: District F Seekins Ford Lincoln Mercury

Linda Leary Representing District J Carlile Transportation

Ralph Samuels Appointed by Chair Holland America

Jeff Lentfer Appointed by Chair Biliken Investment Group, Inc. DBA Midas

Renee Schofield Representing: District A Tongass Substance Screening

Wendy Lindskoog Past Chair Alaska Railroad Corp.

Ginger Stock-McKenzie Appointed by Chair Sundog Media

Tom Maloney Appointed by Chair CH2M Hill Energy Service and Operations

Andrew Teuber At-Large Kodiak Area Native Association

Karen Matthias Appointed by Chair Canadian Consulate

Linda Thomas Representing: District B Alaskan Brewing Co.

James W. Mendenhall At-Large NANA Development Corp. Inc.

Brian Wenzel At-Large, Anchorage Chamber ConocoPhillips

It is State Chamber members who select the organization’s annual list of legislative priorities, he said. Position papers come in and at the fall State Chamber meeting, members go through the papers and vote to establish the top five legislative priorities. “We’re looking for items that benefit business statewide,” he said. “Anybody with an employee cares about workers’ compensation.” Knudson understands the legislative process after working as a legislative aide for seven years, first for Rep. Loren Leman and later for Rep. Mark Hanley. After leaving Hanley’s staff, he worked as the director of marketing and general manager for Era Aviation Inc. for nearly five years. Knudson earned a bachelor’s of science in foreign service from Georgetown University in May 1988. He was the program officer for the American Council of Young Political Leaders for two years after college, prior to joining Leman’s staff. Among his awards and honors, Knudson was one of the Anchorage Chamber of Commerce’s and the Alaska Journal of Commerce’s Top 40 Under 40 in 2001. Knudson’s public service work includes organizations such as Hospice of Anchorage, Kids’ Corps Headstart, Salvation Army, Alaska Mineral, Energy and Resource Education Foundation, Resource Development Council and the Association of Washington Business.

Meet board member Tadd Owens By Heather A. Resz

Tadd Owens has worked as a volunteer with the Alaska State Chamber of Commerce for years. By day, he works as the director of government and public affairs for Pioneer Natural Resources. Before he was a member of the board of directors and chairman of the State Chamber’s Business Advocacy Committee, he worked closely with the Chamber as the executive director for the Resource Development Council for Alaska for six years. The State Chamber’s Business Advocacy Committee brings together the leaders of Alaska’s various business associations to meet regularly and share information, Owens said. “The BAC gives us an opportunity to talk about how we want to approach issues that are important to all of us,” he said. “It’s a chance for us to share information on areas where we might be able to work together to get better results than if we were all operating independently.” Owens and fellow State Chamber board members Kip Knudson and Portia Babcock are also working to re-establish the State Chamber’s Alaska Business Political Action Committee. The goal is to raise $25,000 in support of pro-business candi-

Local Chamber Representatives to Board Richard Beneville Representing: Nome Margaret Billinger Representing: Big Lake Pat Branson Representing: Kodiak Geri Denkewalter Representing: Talkeetna Sue Finsrud Representing: North Pole Bud Gibbs Representing: Girdwood Mary Glover Representing: Seldovia Stu Graham Representing: Greater Palmer Lucinda Hall Representing: Bristol Bay Borough Virgie Hartley-McKeown Representing: Sunshine Gordon (Pete) Heddell Representing: Greater Whittier Eileen Herman Representing: Delta Karen Hess Representing: Haines Ron Hewitt Representing: Seward Gordon Isaacs Representing: Dillingham Cheryle James Representing: Cooper Landing Bronk Jorgensen Representing: Tok Clay Koplin Representing: Cordova David Malone Representing: Sitka Scott Pattison Representing: Greater Seattle Robert T. Peterkin II Representing: Kenai Lisa Roberts Representing: Greater Soldotna Cori Robinson Representing: Wrangell Angela Rosas Representing: Houston Dan Sterley Representing: Portland Business Alliance Rob Skinner Representing: Greater Ketchikan Cynthia Wallesz Representing: Petersburg Jack Wilbur Representing: Fairbanks Julie Woodworth Representing: Homer

dates in the 2010-11 legislative races. “As important as the dollars may be, the symbolism of the business community reengaging in an organized way is equally important,” Owens said. The State Chamber has had a PAC since 1982, but its last foray into state elections was in 2004, Owens said. There are lots of issues, like worker’s compensation and minimum wage, that affect all businesses, he said. A homegrown man, he graduated from Robert Service High School in 1991 and from Carleton College in Northfield, Minn., in 1995 with a bachelor’s of arts degree in political science. Fresh out of college, Owens and two friends owned and operated Alaska Trail and Sail Adventures for several years. Owens also worked as project coordinator for RDC and as account supervisor at BradleyReid Communications Inc. before returning to RDC as executive director. He was also honored in 2001 as part of the “Top Forty Under 40” program, and was part of the Leadership Anchorage program in 1998-99. In addition to his work with the State Chamber, Owens’ community service activities include work with the Providence Alaska Foundation, the Pratt Museum in Homer and the Alaska Humanities Forum.


Alaska State Chamber of Commerce