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ENERGY & POWER | SUSTAINABLE DEVELOPMENT | ENVIRONMENTAL SERVICES WORKSITE COMMUNICATIONS | TRANSPORTING HAZARDOUS WASTE August 2014 $3.95 Industrial-strength mariners Page 96

Alaska Business Monthly August 2014

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DSV Sand Island standing by to provide dive support in Cook Inlet is a prime example of the industrial-strength mariners at work in Alaska waters. “Diver Down, Diver Drone” explores what it takes to take care of marine infrastructure, story begins on page 96. Cover photo courtesy of Global Diving & Salvage, Inc.

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Page 1: Alaska Business Monthly August 2014

ENERGY & POWER | SUSTAINABLE DEVELOPMENT | ENVIRONMENTAL SERVICES WORKSITE COMMUNICATIONS | TRANSPORTING HAZARDOUS WASTE

August 2014 $3.95

DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DOWN,DIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONEDIVER DRONE

Industrial-strength mariners Page 96

Page 2: Alaska Business Monthly August 2014

SMART WORKS.

Volvo EC380DL Excavator loading an Atlas Copco CrusherNome, AK

Volvo A40F Articulated TruckKing Cove, AK

IN THE WORLDVolvo, the best in constructionequipment technology

IN YOUR CORNERThe Winning Team.

IN ALASKACMI, the best sales andproduct support lineup.

Anchorage, Alaska (907) 563-3822 (800) 478-3822 Fairbanks, Alaska (907) 455-9600

Juneau, Alaska (907) 780-4030 (888) 399-4030 Ketchikan, Alaska (907) 247-2228

VOLVO CONSTRUCTION EQUIPMENT

Bill FrisheEquipment Sales Rep.

Anchorage Branch

John ColeEquipment Sales Rep.

Fairbanks Branch

Page 3: Alaska Business Monthly August 2014

SMART WORKS.

Volvo EC380DL Excavator loading an Atlas Copco CrusherNome, AK

Volvo A40F Articulated TruckKing Cove, AK

IN THE WORLDVolvo, the best in constructionequipment technology

IN YOUR CORNERThe Winning Team.

IN ALASKACMI, the best sales andproduct support lineup.

Anchorage, Alaska (907) 563-3822 (800) 478-3822 Fairbanks, Alaska (907) 455-9600

Juneau, Alaska (907) 780-4030 (888) 399-4030 Ketchikan, Alaska (907) 247-2228

VOLVO CONSTRUCTION EQUIPMENT

Bill FrisheEquipment Sales Rep.

Anchorage Branch

John ColeEquipment Sales Rep.

Fairbanks Branch

Fruit as fresh as the salmon? Yes please.

Getting fresh produce has never been easier.

With more than 25 years experience connecting

you to the lower 48, it’s no wonder why

American Fast Freight is considered the expert

in less-than and full container loads from

anywhere in the U.S. to Alaska. Let AFF be

the go-to for all of your state’s delivery needs.

www.AFFinABM.com

907-782-4033

Page 4: Alaska Business Monthly August 2014

FNBAlaska.com/Trust

PRODUCTS PURCHASED THROUGH THE BANK’S TRUST DEPARTMENT ARE NOT FDIC INSURED, NOT GUARANTEED AND MAY LOSE VALUE.

Trust. At First National Bank Alaska, it’s been a bedrock value since 1922. So, it just stands to reason we’re the ONE bank more Alaskans count on for Trust and Investment Management Services.

Our local knowledge and experience are second to none, and our goal is simple: Deliver fast, friendly, local service so you can make the most of the present with a solid plan for the future.

From business and personal trusts to rolling over IRAs and overseeing your investments, no one has managed trusts and investments longer or better than First National Bank Alaska.

LIVE FOR TODAY. PLAN FOR THE FUTURE.TRUST & INVESTMENT MANAGEMENT SERVICES

4 Alaska Business Monthly | August 2014 www.akbizmag.com

From the Editor. . . . . . . . . . . . . . . . . . . . . . . . . 7Right Moves . . . . . . . . . . . . . . . . . . . . . . . . .116Inside Alaska Business . . . . . . . . . . . . . . . 118Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Alaska This Month . . . . . . . . . . . . . . . . . . . 122Events Calendar . . . . . . . . . . . . . . . . . . . . . 125Market Squares . . . . . . . . . . . . . . . . . . . . . 126What’s Next . . . . . . . . . . . . . . . . . . . . . . . . 126Alaska Trends . . . . . . . . . . . . . . . . . . . . . . . 127Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

ABOUT THE COVERDSV Sand Island standing by to provide dive support in Cook Inlet is a prime example of the industrial-strength mariners at work in Alaska waters. “Diver Down, Diver Drone” explores what it takes to take care of marine infrastructure, story begins on page 96. Cover photo courtesy of Global Diving & Salvage, Inc.

A u g u s t 2 0 1 4T A B L E O F C O N T E N T S

ARTICLES

From the EditorDEPARTMENTS

ARCTIC IDEAS8 | Tall stack of authorizations await Alaska LNG project

By Bill White

VISITORS INDUSTRY20 | Ziplines in AlaskaFlying high over the Last Frontier

By Tasha Anderson

FINANCIAL SERVICES24 | Surety Bonds, an Important Tool for Securing Financing and Maintaining a Business

By Tracy Barbour

CONSTRUCTION26 | Public Projects ReviewA billion dollar summer

By Rindi White

TELECOM & TECHNOLOGY54 | Leveraging Worksite Telecom Tools Enhancing connectivity, collaboration, and productivity

By Tracy Barbour

TRANSPORTATION88 | Hazardous Waste TransportationTrucking the muck

By Tom Anderson

92 | Tugging AlongWhat the mighty tugboats accomplish

By Kirsten Swann

OIL & GAS96 | Diver Down, Diver DroneIndustrial-strength mariners

By Vanessa Orr

102 | Insights on Filling the PipelineBetter technology, techniques, and public policy

By Kirsten Swann

107 | Allocating Liability Risk While Doing Business in Alaska

By Renea Saade

NATURAL RESOURCES58 | Tongass Timber ProgramRational, economic transition needed

By Owen Graham

62 | Tongass Bellwether: Dargon Point Timber Sale Sustainable young-growth timber industry shows early promise

By Dustin Solberg

What the $138.9 million State Library Archives Museum in Juneau will look like.What the $138.9 million State Library Archives Museum in Juneau will look like.

Graphic courtesy of ECI/Hyer Architecture

Good Faith Lumber, of Thorne Bay, Alaska, is a new generati on of sawmill that has been successful in fi nding new markets for value-added wood products. © Bethany Goodrich

Good Faith Lumber, of Bay, Alaska, is a new generati on of sawmill that has been successful in fi nding new markets for value-added wood products. © Bethany Goodrich62

26

Page 5: Alaska Business Monthly August 2014

FNBAlaska.com/Trust

PRODUCTS PURCHASED THROUGH THE BANK’S TRUST DEPARTMENT ARE NOT FDIC INSURED, NOT GUARANTEED AND MAY LOSE VALUE.

Trust. At First National Bank Alaska, it’s been a bedrock value since 1922. So, it just stands to reason we’re the ONE bank more Alaskans count on for Trust and Investment Management Services.

Our local knowledge and experience are second to none, and our goal is simple: Deliver fast, friendly, local service so you can make the most of the present with a solid plan for the future.

From business and personal trusts to rolling over IRAs and overseeing your investments, no one has managed trusts and investments longer or better than First National Bank Alaska.

LIVE FOR TODAY. PLAN FOR THE FUTURE.TRUST & INVESTMENT MANAGEMENT SERVICES

Page 6: Alaska Business Monthly August 2014

ARTICLES

Correction

108 | Foreign Fuel for Western AlaskaEconomies of scale, ocean transfers save money

By Mike Bradner

112 | Heavy OpportunityConocoPhillips, BP plan major projects to produce more viscous oil

By Wesley Loy

In the 2014 Mid-Year Economic Outlook published in July, we incorrectly stated the title of Janet Weiss, President of BP (Exploration) Alaska, Inc. AKA BP Alaska.

6 Alaska Business Monthly | August 2014 www.akbizmag.com

A u g u s t 2 0 1 4T A B L E O F C O N T E N T S

special section

Energy & Power

special section

Environmental Services

66 | Valley Community for Recycling SolutionsFacility grows with population and interest in recycling

By Rindi White

68 | Recycle, Reuse, RecoverEmerald Alaska gets down to the business of sustainability

By Rindi White

72 | NPR-A Legacy Wells Targeted for Cleanup Funding for BLM resulted in strategic plan

By Margaret Sharpe

75 | Mitigating Contamination on Alaska Native LandsHundreds of sites, very little funding to get work done

By Will Swagel

81 | Alaska Business Monthly’s 2014 Environmental Services Directory

36 | Railbelt Electric GridStatus check on projects

By Susan Sommer

42 | ML&P’s New Plant Under ConstructionEfficient energy for Anchorage’s oldest neighborhoods

By Russ Slaten

46 | Commercial Wind Farm DevelopmentEnergy generation for the next generation

By Gail West

50 | The Efficiency Factor in the Energy EquationOr how to save hundreds of millions of dollars every year

By Julie StrickerSix Pillar Mountain turbines above St. Herman’s Boat Harbor.

Emerald Alaska employee.

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BP heavy oil test facility, Milne Point fi eld.

© B

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BP heavy oil test facility, Milne

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112112

Page 7: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 7

Volume 30, Number 8Published by

Alaska Business Publishing Co.Anchorage, Alaska

Jim Martin, Publisher1989~2014

EDITORIAL STAFF Managing Editor Susan Harrington Associate Editor Russ Slaten Editorial Assistant Tasha Anderson Art Director David Geiger Art Producti on Linda Shogren Photo Consultant Chris Arend Photo Contributor Judy Patrick

BUSINESS STAFF President Billie Martin General Mgr. Jason Martin VP Sales & Mktg. Charles Bell Senior Account Mgr. Anne Campbell Account Mgr. Bill Morris Survey Administrator Tasha Anderson Accountant & Melinda Schwab Circulation

501 W. Northern Lights Boulevard, Suite 100Anchorage, Alaska 99503-2577

(907) 276-4373Outside Anchorage: 1-800-770-4373

Fax: (907) 279-2900www.akbizmag.com

Editorial email: [email protected] sing email: [email protected]

Paci� c Northwest Advertising Sales1-800-770-4373

ALASKA BUSINESS PUBLISHING CO., INC.ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2014, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specifi c permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from � omson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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FROM THE EDITOR

By now I had hoped all those thirty-fi ve thousand unregistered vot-ers would have registered because it’s about ti me to vote. At press ti me, only about four thousand had, with less than two weeks left

before the deadline on July 20 for the August 19 Alaska Primary Elec-ti on. Much will be decided that day. There are eleven candidates for United States Senator; seven candidates for United States Representa-ti ve; seven candidates for Governor; fi ve candidates for Lieutenant Gov-ernor; and one Ballot Measure.

Additi onally there are more than one hundred candidates for State Legislature, 25 percent Senate and the rest for the House of Represen-tati ves, though many of these races are not races, yet. The majority of them have just one or two candidates, many with two who are either a Democrat or a Republican, so when voters get their ballots, they will see only one person to vote for—not much of an incenti ve to mark the oval.

What if you wrote in the candidate that isn’t on your ballot, but is on another ballot? Will that vote count? No. There are no write-ins on the Primary Ballot. What you see is what you get. So, if you wanted to cross party lines and vote for the person not the party, there’s no way it can be done; it won’t count. No mix and match in the primary, which might be one reason for the low voter turnout. It has not always been this way.

Time for a litt le history lesson. Alaska used to have a Blanket Prima-ry, one ballot with all the candidates, and voters could actually vote for whomever they wanted to. Aft er a 1947 referendum, Alaskans enacted a Blanket Primary; however, in 1960 the First State Legislature replaced the Blanket Primary with a Single Ballot Open Primary, which wasn’t re-ally open at all. There was sti ll one ballot with all the candidates, but vot-ers had to choose to vote either Democrat or Republican. If a voter voted for candidates from both parti es the ballot was thrown out—invalidated.

This remained unti l 1967 when Governor Walter J. Hickel asked the fi rst session of the Fift h State Legislature to go back to the Blanket Pri-mary. The Legislature obliged. Then, twenty-fi ve years later in 1992, the Republican Party of Alaska sued the state in federal court and won. Alas-ka then had a Party-Rule Republican Ballot for Republican, nonparti san, and undeclared voters and a Statutory Ballot for everyone else. This was challenged in 1993 but did not change. The State of Alaska took the issue of the consti tuti onality of the Blanket Primary to the Alaska Supreme Court, which ruled it did not infringe on a party’s right of free associa-ti on; however, in 2000 the US Supreme Court ruled California’s Blanket Primary unconsti tuti onal and Alaska went back to the Party-Rule Ballot Primary, then passed a law for every politi cal party to have their own bal-lot—there were six ballots in the 2002 Primary Electi on. The next year, aft er more liti gati on, a Combined Party B allot concept took hold, with the parti es deciding who could be on their ballot and who could vote on their ballot. That is how we came to have the current system for the last ten years—anybody Republican; anybody else; or nobody, just the mea-sures—somewhat of a trifecta.

Another win-win-win is the August issue of Alaska Business Monthly. The team has put together another really great magazine, enjoy! And by all means, pick a ballot and vote!

—Susan Harrington, Managing Editor

Party TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty TimeParty 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Page 8: Alaska Business Monthly August 2014

8 Alaska Business Monthly | August 2014 www.akbizmag.com

ARCTIC IDEAS

Tall stack of authorizations await Alaska LNG projectTall stack of authorizations await Alaska LNG projectTall stack of authorizations await Alaska LNG project

The multibillion-dollar Alaska LNG project aims not only to tap the North Slope’s bounty of natu-

ral gas, pipe it to tidewater and super-chill the vapors into a condensed liquid for export to Asia markets.

Th e project also aims to tap a bounty of public resources: land, wetlands, grav-el, lakes and ponds, streams and rivers, possibly even the ocean itself. And to tap them, the project sponsors would need a stack of permits and authorizations from a variety of government agencies.

During construction and operations, the system’s machinery, like any indus-trial activity, would create emissions that would alter air quality. Public soils and vegetation would be disturbed, at least temporarily. Th e project would cross paths with threatened and endan-gered species, and other fauna under public protection.

Th e project’s sponsors cannot use the public’s land, water and other resources without permission. It can’t change the air quality or water quality without a public process fi nding that such changes would be acceptable, fi ndings that likely would come with strings attached.

Th e project’s pipeline can cross the Yukon, Tanana or Susitna rivers only aft er demonstrating this won’t impair the navigability of those waterways.

Th e gas liquefaction plant cannot start production without a determina-tion that it can be run safely.

Th e gas itself cannot be shipped away from the United States without consid-eration of whether the export would harm U.S. consumers.

Even the president, under a 1976 law, would have a special say on the export of North Slope gas, a unique feature of the Alaska project that doesn’t exist for Lower 48 liquefi ed natural gas projects.

To say that the Alaska LNG project would need federal paperwork is to un-derstate the matter, like saying the Penta-gon is roomy or monsoon season is damp.

Th e sponsors know the task ahead to receive the authorizations needed

for their project. And they have begun gathering the environmental data regu-latory agencies will want to see.

Permits Before ConstructionMore than a half dozen federal agen-cies would issue major authorizations for the Alaska LNG project before con-struction could begin. Th ese include:

� Federal Energy Regulatory Commis-sion—to authorize siti ng, constructi on and operati on of the LNG plant and likely the 800-mile pipeline from the North Slope to the plant. FERC also would take the lead on a consolidated environmental impact statement researched and writt en on behalf of itself and other federal agencies.

� Bureau of Land Management—to grant use of federal land for the pipeline, constructi on camps, stag-ing yards, gravel mining and water extracti on.

� U.S. Army Corps of Engineers—to is-sue dredge and fi ll permits pertaining to wetlands, rivers and off shore areas.

� Environmental Protecti on Agency—to permit disposal of sediment dredged from the Beaufort Sea if needed to create a deeper shipping channel for sealift s to deliver con-structi on materials and equipment to the North Slope.

� Fish and Wildlife Service and Nati onal Marine Fisheries Services—to autho-rize isolated incidents of harm or death of marine mammals, endangered spe-cies or other protected animals.

� Pipeline and Hazardous Materials Safety Administrati on—to ensure the gas pipeline would be built and oper-ated to federal safety standards.

� Coast Guard—to ensure any bridg-ing of rivers would not impair the waterway’s navigability, document the suitability of Cook Inlet to handle LNG tanker traffi c, consult with the project sponsor on the LNG termi-nal’s emergency response plan and approve the terminal’s security plan.

� Department of Energy—to authorize gas exports.

Other federal agencies could lay their fi ngerprints on the project, too. For ex-ample, the Federal Communications Commission for radio communica-tions, the Federal Aviation Administra-tion for building or altering airstrips, Homeland Security for the vulnerabil-ity of facilities to attacks, or the Bureau of Indian Aff airs for rights-of-way on any Alaska Native allotments the pipe-line could cross.

State of Alaska agencies would have the lead on air, water and wastewater permits, under authority delegated from the EPA, as well as use of state land.

Federal agencies and the project sponsors also must consult with the Alaska Historic Preservation Offi ce on any historic or archeological sites the project would encounter during con-struction. Part of the project’s fi eld-season work in past years has been to identify such sites so the pipeline route and other land use can skirt them. En-countering them during construction could involve delays while preservation offi cers decipher a site’s signifi cance.

Déjà Vu, And Then SomeFederal agencies have seen Alaska North Slope gas projects before. Over the years, quite a few of them have burst into headlines like supernovas, before eventually fl aming out.

For the most recent proposal to pipe North Slope gas through Canada to North American consumers, about two dozen federal agencies had lined up for permitting work before the pipeline sponsors shelved the project in 2012.

Th e Alaska LNG export project would engage many of these same agencies. A substantial portion of it is essentially identical to the project to serve North America: A huge plant at Prudhoe Bay to cleanse produced gas of impurities, and half of the pipeline route—as far as the Fairbanks area.

By Bill White

Page 9: Alaska Business Monthly August 2014

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Page 10: Alaska Business Monthly August 2014

10 Alaska Business Monthly | August 2014 www.akbizmag.com

Alaska LNG proposes a $45 billion to $65 billion venture that would be one of the world’s largest LNG projects.

Th e 800-mile pipeline would carry up to 3 billion to 3.5 billion cubic feet of natural gas per day. Aft er Alaskans, the pipeline compressor stations and LNG plant at Nikiski consume some gas, the plant would have the capacity to make 17 million to 18 million metric tons a year of LNG, about 2.2 billion to 2.4 bil-lion cubic feet of gas a day.

Th e sponsors are the main North Slope producers—ExxonMobil, Cono-coPhillips and BP—as well as pipeline company TransCanada and the state of Alaska. (TransCanada and ExxonMo-bil sponsored the 2012-shelved pipeline to Canada. ConocoPhillips and BP also sponsored a project to move North Slope gas through Canada that couldn’t pass the economics test and was dropped in 2011.) Th ey are in the pre-front-end engi-neering and design phase, or pre-FEED, which is expected to be completed in late 2015 or 2016. If the project looks fi nan-cially viable, next would be FEED of per-haps two years or so, when many of the pre-construction federal authorizations would be obtained. Construction could start toward the end of this decade if the project keeps progressing.

Below is a brief guide to the federal agencies that would be involved with the major Alaska LNG authorizations.

Federal Energy Regulatory Commission

Th is commission would do some of the heaviest lift ing in overseeing the Alaska LNG project.

It would authorize the siting, con-struction and operation of the LNG plant and related facilities and take the lead in craft ing the environmental im-pact statement that multiple agencies require for their authorizations.

It’s likely that FERC would consider the 800-mile pipeline and the gas treat-ment plant at Prudhoe Bay as “related fa-cilities” to the LNG plant in preparing a single environmental impact statement. Th e argument would be strong that these would exist primarily to feed gas to the LNG plant, making them integral to the plant’s function. FERC won’t consider and decide whether they’re related facili-ties until the Alaska LNG sponsors ask the commission for permission to pur-

sue the LNG project. FERC would have to interpret the legal defi nition of “LNG terminal,” which was broadly written by Congress in a 2005 law.

If FERC declines the pipeline and treatment plant oversight, another fed-eral agency or agencies with substantial jurisdiction, such as the Corps of Engi-neers or Bureau of Land Management, likely would lead separate environmen-tal impact statement(s) for those pieces.

For the LNG plant, FERC would review design and engineering of the three big LNG production lines, called trains, that chill incoming gas to minus 260 so that the vapors liquefy and condense; cryo-genic piping and insulation; refrigerant tanks; LNG storage tanks; pumps; meters; boil-off -gas compressors; a pier for two tankers; utilities. Th at’s just a sampling.

FERC would evaluate how construc-tion could aff ect geology, soils, water and air quality, noise levels, wetlands, vegetation, wildlife, threatened or en-dangered species, essential fi sh habitat, land use and recreation, among other possibilities.

For the pipeline, gas treatment plant and other related facilities, the breadth of oversight would be just as vast. Th e environmental impact statement could cover temporary and permanent roads, bridges and water-body crossings, mate-rial sites, pipe-storage yards, contractor yards, worker camps, compressor and metering stations, control rooms, regu-lating stations, helipads, dredge chan-nels, ocean-disposal sites, ice/snow pads, pipeline trenching—to name some.

FERC requires project sponsors to pre-fi le with the commission ahead of formally fi ling for authority to build an

LNG plant. During the months-long pre-fi le period, the sponsor compiles specifi c baseline information on the project and the surrounding environment. Th e en-ergy commission and other regulatory agencies can then verify and use that baseline information for the environ-mental-impact analysis. Th e sponsors compile this information in dense public documents called “resource reports.”

For the unsuccessful North Slope-to-Canada gas pipeline project, the Trans-Canada-ExxonMobil team fi led 11 draft resource reports in January 2012. Th ey tallied about 4,500 pages. Much of this information likely can be used for the Alaska LNG project. More info will need to be gathered for other parts of the pipeline route and the LNG plant site.

Th e environmental analysis is a key stepping stone to getting FERC approv-al. When FERC approved construction of Cheniere Energy’s Sabine Pass, La., LNG export plant in 2012, its 57-page order fi nding the project is “not incon-sistent with the public interest” largely discussed the environment-impact analysis. Th at plant now is getting built, and Cheniere says it will make its fi rst LNG in late 2015.

Such analyses are mandated in the National Environmental Policy Act, which became law in 1970. It requires federal agencies understand and dis-close the environmental consequences of their decisions. Th e law gave birth to the phrase “environmental impact statement” ... and the big industry that since has built up around that mandate.

Many federal agencies besides FERC would have their own NEPA roles re-lated to Alaska LNG. Th ey likely would

Federal Energy Regulatory Commission

Oversight Authorizes siti ng, constructi on, operati on of LNG plant and re-lated faciliti es, likely including 800-mile pipeline and Prudhoe Bay gas treatment plant; lead agency on environmental impact statement.

Key laws Natural Gas Act of 1938; Energy Policy Act of 2005; Nati onal Environmental Policy Act of 1969

Website htt p://www.ferc.gov/industries/gas/indus-act/lng.asp

Page 11: Alaska Business Monthly August 2014

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Page 12: Alaska Business Monthly August 2014

12 Alaska Business Monthly | August 2014 www.akbizmag.com

sign on as cooperating agencies for the impact statement.

FERC would try to make sure the EIS is comprehensive enough to serve as BLM’s NEPA document, as well as the document needed by the Corps of En-gineers, Fish and Wildlife Service, Na-tional Marine Fisheries Service, Coast Guard and others for the permits and authorizations they issue.

FERC and other agencies have been collaborating on NEPA reviews of pro-posed Lower 48 LNG export plants for several years. But the scale of Alaska LNG would be far grander than, for ex-ample, the roughly $10 billion Cameron LNG project in Louisiana or the $4 bil-lion Dominion Cove Point LNG project in Maryland. Each of those had four cooperating federal agencies for their FERC-led environmental reviews com-pleted in spring 2014.

Alaska LNG would have far more complexity. Greater footprint. Bigger potential environmental impact. FERC likely would be juggling the permit-ting interests of many more federal agencies. For the recently shelved gas-pipeline project from Prudhoe Bay to Canada, FERC was working with nine cooperating federal agencies on the EIS.

Many of FERC’s non-environmental requirements for interstate gas pipe-lines might not apply to an Alaska LNG export project if the pipeline and treat-ment plant are not deemed interstate fa-cilities under federal law. Th ese include FERC’s rules and policies on customer access (open seasons), rate regulation, tariff provisions and eminent domain.

Bureau Of Land ManagementTh e gas pipeline would cross hundreds of miles of federal land. BLM would grant the permit allowing use of this public land.

Th e Alaska LNG project sponsors would apply to use federal land for the pipeline corridor as well as for pipeline compressor stations, work camps, con-tractor and material yards, helipads, roads and the like related to construction.

In advance of construction, the spon-sors would apply to use federal land temporarily for fi eld work to study the route, ice and snow pads, and tempo-rary roads, camps, contractor yards and pipe-storage areas.

BLM would work with other federal agencies if the pipeline route crosses land they oversee. Th e route likely would skirt two wildlife refuges and two national parks without entering them and completely bypass the big military bases by Fairbanks. It’s un-clear how close the route would come to the Clear Air Force Station southwest of Fairbanks, but if the route penetrates that land, the Air Force would need to sign off on BLM’s right-of-way grant.

Separately, BLM permits the purchase and extraction of construction gravel from federal land under the Materials Act.

BLM would need to consider envi-ronmental impacts before acting on any of these permits.

Army Corps Of EngineersTh e project would touch a variety of wetlands in the 800-mile span between the Nikiski port in southern Alaska and Point Th omson/Prudhoe Bay on the Arctic Coast:

� Forested wetlands whose disrupti on could aff ect nutrients, stream fl ows and water quality.

� Scrub-and-shrub wetlands that serve a similar functi on as forested wet-lands, but also support bird nests and animal browse.

� Emergent wetlands of sedges, grass-es and scatt ered shrubs that buff er fl oodwaters, moderate stream fl ows and are home to juvenile fi sh, water-fowl and other wildlife.

� Miscellaneous other wetlands, which include ponds, small lakes and streams.

Within these types of wetlands lie many nuances and subtleties—such as those slaked by groundwater; those fed by rain, snow and overland fl ow; and those watered by both, to cite one example.

Th is is where the Corps of Engineers comes in. It regulates the discharge of dredged or fi ll material into U.S. wa-

Bureau of Land Management

Oversight Authorizes use of federal land for pipelines, compressor sta-ti ons, constructi on acti viti es, gravel extracti on, etc.

Key laws Mineral Leasing Act of 1920; Materials Act of 1947; Nati onal Environmental Policy Act of 1969

Website htt p://www.blm.gov/ak/st/en.html

Army Corps of Engineers

Oversight Authorizes placement or discharge of dredged or fi ll material into U.S. waters or wetlands, which would apply to gas pipeline burial as well as other constructi on acti viti es. Permits pipeline crossings of navigable water bodies. Would permit transport of dredged sediment to Beaufort Sea disposal site if North Slope shipping channel needs to be dredged to bring in con-structi on materials.

Key laws Clean Water Act of 1972; Rivers and Harbors Act of 1899; Marine Protecti on, Research and Sanctuaries Act of 1972; Na-ti onal Environmental Policy Act of 1969

Website htt p://www.poa.usace.army.mil/

Page 13: Alaska Business Monthly August 2014
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ters or wetlands. Trenching the pipe-line through wetlands would disturb them and would need Corps approval. Th e Corps would consider not only the trench, but on how the buried pipeline would aff ect the function of surround-ing wetlands. Or it would direct the sponsors to avoid particular wetlands.

Th e same goes for any wetlands af-fected by constructing the LNG plant, pipeline compressor stations, pipeline construction camps and the like, as well as the gas treatment plant at Prudhoe.

Th e Corps also would permit the pipeline crossing of rivers and other navigable water bodies, whether the pipe spans the river or tunnels under it.

Th is permit stems from one of the nation’s oldest environmental laws: the Rivers and Harbors Act of 1899. Section 10 basically aims to avoid the chaos of anybody putting anything they want in waters that other people use.

A Section 10 permit aims to protect the navigable integrity of the water body from new structures, dredging or disposed material.

Th e Corps has a third permitting au-thority that could apply to the Alaska LNG project. If the project sponsors need to deepen the shipping channel to Prud-hoe Bay’s West Dock so that sealift s of deeper-draft barges could deliver con-struction materials, the Corps would per-mit transport of dredged sediment to an off shore disposal site in the Beaufort Sea.

Th e Corps or the Environmental Pro-tection Agency separately would permit the off shore disposal site, as discussed in the next section.

Environmental Protection Agency

Alaska LNG would need to build a huge plant at Prudhoe Bay to remove carbon dioxide and other impurities from the produced gas. Th is would be a mega-project all by itself, likely costing more than $10 billion.

LNG buyers don’t want CO2 in the gas. LNG sellers don’t want it either. CO2 doesn’t burn, it becomes corrosive when mixed with water, and it would solidify during liquefaction (think dry ice), clunking up the machinery.

So the project sponsors would build a gas treatment plant to remove about 500 million cubic feet a day of CO2 from the produced gas stream and in-

ject it back underground to help pres-sure more Prudhoe oil to the surface.

Th e gas treatment plant mainly would be built outside Alaska, hauled to the North Slope aboard sealift s during three or four summers, then assembled. Th ese would be the biggest sealift s there in many years. An approach channel might need to be deepened to get the mega-barges into Prudhoe’s West Dock.

If so, the sponsors would need a Corps of Engineers permit before depositing dredged material in the ocean. Th e EPA would need to concur on the permit. Ei-ther the Corps or the EPA would identify a Beaufort Sea disposal site. If the EPA desig-nates the site, the EPA and the Corps would develop a site-management plan and revise it every 10 years. If the Corps picks an alter-native site, the EPA must approve it.

Any dredging that might be needed in upper Cook Inlet for LNG plant con-struction at Nikiski or operations would follow a simpler process. Th e project sponsors would need a Corps permit and disposal site. EPA wouldn’t need to OK the permit but would maintain oversight of the permit and disposal site.

EPA could play several other roles in the Alaska LNG project.

It would review and have oversight of Corps’ permits to place construction fi ll ma-terial in wetlands, streams, rivers and lakes.

Th e Alaska Department of Environ-mental Conservation has been delegated responsibility to issue permits on air emissions—from the gas treatment plant, the LNG plant, pipeline compressor sta-tions and elsewhere—and wastewater

disposal. Th e EPA has authority to step in if it fi nds the state permits are inconsis-tent with applicable laws and regulations.

EPA also would be a cooperating agency and would review the adequacy of the Alaska LNG environmental im-pact statement.

Fish And Wildlife Service / National Marine Fisheries Service

Congress has split oversight of endan-gered and threatened species, and ma-rine mammals. It assigned some to the Fish and Wildlife Service. Th e National Marine Fisheries Service oversees others.

Polar bears, walruses and sea otters, among others—Fish and Wildlife Service.

Whales, seals and sea lions, among oth-ers—National Marine Fisheries Service.

Th e Alaska LNG sponsors would need authorizations from both agencies. Th e processes are similar and rigorous un-der the variety of federal laws that ap-ply, principally the Marine Mammal Protection Act of 1972 and the Endan-gered Species Act of 1973.

Other laws are important, too, such as the Migratory Bird Treaty Act, Bald and Golden Eagle Protection Act, Fur Seal Act, Magnuson-Stevens Fisheries Conserva-tion Act’s essential fi sh habitat provisions and, of course, the National Environmen-tal Policy Act, which mandates that agen-cies describe and disclose the environ-mental implications of their decisions.

To account for the incidental take of marine mammals—unintentional ha-rassment, injuries or deaths—each agency

Environmental Protecti on Agency

Oversight Could be involved in designati ng and developing a management plan for a Beaufort Sea site that would receive dredged materi-al if a deeper shipping channel is needed to transport construc-ti on material to the North Slope. Would also have oversight of state air-emissions and wastewater-discharge permits.

Key laws Marine Protecti on, Research and Sanctuaries Act of 1972; Na-ti onal Environmental Policy Act of 1969

Websites htt p://water.epa.gov/type/oceb/oceandumping/htt p://www2.epa.gov/laws-regulati ons/summary-marine-protecti on-research-and-sanctuaries-act

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www.akbizmag.com August 2014 | Alaska Business Monthly 15

would issue an “incidental take authoriza-tion.” Th ese come in two forms: A one-year incidental harassment authorization, or a letter of authorization valid for up to fi ve years and supported by specifi c regu-lations. Th e authorization would govern the do’s and don’ts of Alaska LNG activi-ties pertaining to the marine mammals.

Th e public process needed to obtain these can take months to more than a year, depending on the type of authori-zation requested.

As for endangered or threatened spe-cies, the gas project could encounter per-haps 10 or more of them. Ten were listed in the October 2012 environmental im-pact statement for the smaller, 737-mile state-sponsored gas-pipeline project from Prudhoe Bay to near Anchorage.

Th ese were bowhead, fi n, humpback and Cook Inlet beluga whales, Steller sea lions, Eskimo Curlews, polar bears, spectacled and Steller’s eiders, and the Southwest stock of Northern sea otters.

Th e endangered Cook Inlet belugas were named even though the state-spon-sored gas pipeline would stop short of Cook Inlet. Th e belugas were noted be-cause the project might need to deliver

construction materials to the Port of An-chorage, which could disturb whales and their critical habitat. Pipeline construc-tion also could cross salmon streams that fl ow to Cook Inlet, possibly reduc-ing the food available to belugas, the EIS said, although both risks could be miti-

gated to minimize the chances of a prob-lem. Th e Alaska LNG project plans to lay its pipeline across Cook Inlet, through beluga habitat, though sponsors haven’t selected their preferred route yet.

Th e Alaska LNG list of aff ected en-dangered or threatened species could

Fish and Wildlife Service

Oversight Ensures that endangered or threatened species are not further imperiled. Preserves populati ons of polar bears, walruses, sea ott ers and certain other marine mammals. Protects migratory birds and the taking or molesti ng of bald and golden eagles or their nests. In all cases, authorizes isolated cases of harass-ment, injury or even death under certain circumstances.

Key laws Marine Mammal Protecti on Act of 1972; Endangered Spe-cies Act of 1973; Migratory Bird Treaty Act of 1918; Bald and Golden Eagle Protecti on Act of 1940; Nati onal Environmental Policy Act of 1969

Websites htt p://www.fws.gov/alaska/fi sheries/endangered/htt p://www.fws.gov/alaska/eaglepermit/index.htm

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16 Alaska Business Monthly | August 2014 www.akbizmag.com

exceed 10. For example, the project could aff ect Beaufort Sea bearded and ringed seals, which were listed as threatened in December 2012.

Th en again, humpback whales could come off the endangered list. Th eir count is up and biologists are consider-ing whether to delist them.

Under the Endangered Species Act, if the Fish and Wildlife Service or National Marine Fisheries Service determines the project is likely to harm a species or its critical habitat, the agency would study the situation and issue a “biological opinion” discussing it and an incidental take state-ment, if appropriate, allowing construction to proceed under strict conditions.

Bald and golden eagles, and their nests, are protected under a separate law. Kill-ing obviously is a no-no. But so are noises that can be avoided. Construction projects make plenty of noise. Project sponsors would identify the nests along the route and avoid them. A Fish and Wildlife Ser-vice permit would be needed for any in-cidental harm to the eagles or their nests.

Winter construction, when fewer birds are around, is one way to avoid the eagles, endangered birds and migratory birds protected by other federal laws.

Seasonal construction also could mitigate damage to salmon streams and other “essential fi sh habitat” rec-ognized under the Magnuson-Stevens Act. Federal biologists would be con-sulted for their recommendations on ways to minimize or eliminate harm from any project work in such habitat.

Pipeline And Hazardous Mate-rials Safety Administration

Th e 800-mile pipeline would endure ex-traordinary stresses and strains due to the terrain and soils it would traverse.

One potential problem: Slopes that could slump, taking the buried pipe with it.

Or these: Frost-heaving ground that could lift the pipe, or thawing frozen soils that cause the pipe to sag.

Or this: Abrupt ground shift s during earthquakes.

Pipeline engineers have devised tech-niques called strain-based design to combat such stresses and strains.

Th e Pipeline and Hazardous Materi-als Safety Administration is charged with ensuring the pipeline would be built and operated to meet the objec-tives of federal safety standards.

Th e regulations don’t really speak di-rectly to the kind of severe longitudinal strain peculiar to Alaska. It’s possible, if not likely, the Alaska LNG sponsors would propose to use new or diff erent construction materials or methods—such as in the properties of the steel pipe or the pipe coating—or strain-based design elements that regulations don’t specifi cally cover.

PHMSA would consider issuing a special permit for each deviation from the regula-tions, as long as the proposed methods or materials meet the standards’ objectives.

Coast GuardTh e Coast Guard would play two roles, one reviewing applications for bridges across navigable waterways and anoth-er for the LNG plant.

Bridges. Any bridges for the project would be subject to various laws that aim to ensure that the reasonable needs of navigation are maintained on all of the nation’s navigable waters.

If the pipeline needed to bridge a navigable waterway, such as the Yukon River, the sponsors would apply for a permit. Th e Coast Guard would analyze potential navigation impacts as well as environmental, historical and/or socio-economic impacts covered under NEPA and related laws and regulations.

LNG plant. Th e Alaska LNG plant op-erating at full capacity would load about fi ve tankers a week. Th e Coast Guard would assess the suitability of Cook In-let to handle LNG tanker traffi c.

Under a passel of laws as well as an ex-ecutive order from President Harry Tru-man in the feverish early days of the Cold

Nati onal Marine Fisheries Service

Oversight Ensures that endangered or threatened species, or their habi-tat, are not further imperiled. Preserves populati ons of whales, seals, sea lions and certain other marine mammals. In all cases, authorizes isolated cases of harassment, injury or even death under certain circumstances.

Key laws Marine Mammal Protecti on Act of 1972; Endangered Species Act of 1973; Magnuson-Stevens Fishery Conservati on and Management Act of 1996; Nati onal Environmental Policy Act of 1969

Websites htt p://www.nmfs.noaa.gov/pr/permits/incidental.htmhtt p://alaskafi sheries.noaa.gov/protectedresources/esa/

Pipeline and Hazardous Materials Safety Administrati on

Oversight Ensures the pipeline is built and operated to meet the objec-ti ves of federal safety standards even if diff erent methods and materials are used because of Alaska’s unusual soils and ter-rain.

Key laws Natural Gas Pipeline Safety Act of 1968; Nati onal Environ-mental Policy Act of 1969

Websites htt p://www.phmsa.dot.gov/regulati onshtt p://primis.phmsa.dot.gov/matrix/PrjHome.rdm?prj=361

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www.akbizmag.com August 2014 | Alaska Business Monthly 17

War, the Coast Guard has responsibility for the safety and security of waterways, ports and other facilities along waterways, such as LNG plants. This extends to LNG carrier operations in transit and at berth.

The Coast Guard would require project sponsors to submit a “water suitability assessment” of the channel that tankers would sail to and from the LNG plant. The assessment would cover water depths; tidal range; other traffic in the channel; bridges; underwater pipelines and cables; maneuvers required to berth; where peo-ple live nearby and other details.

The Coast Guard also would send to FERC its recommendation and analysis to assist the commission with its deci-sion whether to approve the LNG facility.

Beyond this, the Coast Guard gen-erally would support FERC’s overall environmental-impact analysis work, providing information on tanker and port operations, potential hazards and ways to mitigate them. Coast Guard reg-ulations detail the fire and earthquake codes, emergency communications and systems, safety training and procedures that the Alaska LNG sponsors would need to follow for their Nikiski terminal.

Before the plant starts up, the owner or operator would need the Coast Guard to approve its facility security plan, and would submit its operations and emer-gency manuals.

Department Of EnergyCongress has barred any natural gas from leaving U.S. borders without De-partment of Energy approval.

Alaska LNG sponsors likely would ap-ply to the department for two authoriza-tions. That has been the practice among prospective LNG exporters in recent years.

One application would seek permission to export to any of the 18 nations with which the United States has a free-trade agreement covering natural gas. Getting Energy Department approval of these ap-plications is automatic because such trade is deemed to be in the nation’s interest.

The other application would cover ex-ports elsewhere in the world. This would apply to almost all LNG importing na-tions, including such biggies as Japan, China, India and Taiwan. Getting these applications approved can be much more difficult, time consuming and political.

The national interest is key. Federal law says permission to export gas to non-free-

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Page 18: Alaska Business Monthly August 2014

18 Alaska Business Monthly | August 2014 www.akbizmag.com

trade destinations will be granted unless, aft er a hearing and public process, the government “fi nds that the proposed exportation ... will not be consistent with the public interest.” Opponents of a proposal must make a persuasive case that exports would be bad for the United States—or the gas can go overseas.

Energy Department offi cials have said they consider adequacy of U.S. gas sup-ply, energy security, price, job creation, gross domestic product, balance of trade, the environment and other fac-tors in weighing the national interest.

For proposed Lower 48 U.S. LNG ex-ports, opponents have included some gas-consuming petrochemical businesses and utilities, environmentalists and some people who live near the proposed plants.

Th e Energy Department had ap-proved seven applications for exports to non-free-trade partners as of spring 2014, conditioned on the projects also getting FERC sanctioning. Th e agency determined opponents did not make strong enough cases against exports. Th e average time from application to

conditional approval was 23 months.As of spring 2014, the Energy Depart-

ment had 26 other applications pending. Th e department also proposed a new ap-proach: To act on applications only aft er FERC—or other federal agency in charge of environmental assessment—has sanc-tioned a project for construction, rather than issue conditional approvals while FERC considered the project.

The PresidentIn 1976, Congress said that if North Slope gas gets exported, the president must specifi cally say the exports won’t hurt the United States.

Th is presidential involvement applies only to North Slope gas, not to any of the Lower 48 LNG export projects un-der way or proposed.

Here’s what was up back then.In 1976, the United States was amid

an energy crisis.Oil—U.S. oil production and reserves

were shrinking. Imports were rising. Gasoline prices soaring. An Arab oil embargo—the OPEC Age had dawned.

Natural gas—production and re-serves sagging, shortages looming.

Infl ation pounded consumers—up 11 percent in 1974; another 9.1 percent in 1975.

Americans were mad, worried, ap-prehensive.

In 1976, Congress passed the Alaska Natural Gas Transportation Act to help spur development of a pipeline system that would fl ow North Slope gas to the rescue through Canada down into Low-er 48 markets.

To ensure Alaska gas helped North Americans, Section 719j says that if North Slope gas exports exceed 1 million cubic feet a day to somewhere other than Can-ada or Mexico, “the President must make and publish an express fi nding that such exports will not diminish the total quan-tity or quality nor increase the total price of energy available to the United States.”

How much is 1 million cubic feet per day? Not much—the furnaces of roughly 1,600 Anchorage homes burn through that amount on a typical January day. A pretty low threshold to trigger the presi-dential fi nding. Th e law remains active.

On Jan. 12, 1988, LNG exports of North Slope gas got such a presidential fi nding. Th e now-shelved Yukon Pacifi c LNG export project was pending then, but President Ronald Reagan’s fi nding doesn’t specifi cally mention that proj-ect. It simply declares generically that it’s OK to export the gas.

It’s unclear whether this 1988 fi nding would still apply to an export project 30 or more years later, or whether the fi nding would need to be revisited. U.S. natural gas markets have evolved con-siderably since the 1980s. R

Coast Guard

Oversight Authorizes bridges over navigable waterways. Ensures safety and security of waterways, ports and faciliti es.

Key laws General Bridge Act of 1946; Rivers and Harbors Appropria-ti ons Act of 1899; Magnuson Act of 1950; Ports and Water-ways Safety Act of 1972; Mariti me Transportati on Security Act of 2002; Nati onal Environmental Policy Act of 1969

Websites htt p://www.uscg.mil/hq/cg5/cg551/BPAG_Page.asphtt p://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title33/33cfr127_main_02.tplhtt p://www.uscg.mil/top/missions/Mariti meSecurity.asp

Department of Energy

Oversight Authorizes natural gas exports.

Key laws Natural Gas Act of 1938

Website htt p://energy.gov/fe/services/natural-gas-regulati on

Bill White is a researcher and writer for the Offi ce of the Federal Coordinator for the Alaska Natural Gas Transportati on

Projects. bwhite@arcti cgas.gov

Used with permission, this article fi rst appeared online at arcticgas.gov, on the website of the

Offi ce of the Federal Coordinator for the Alaska Natural Gas Transportation Projects.

Page 19: Alaska Business Monthly August 2014
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An Alaska Zipline Adventures tourist glides down the zipline at Juneau. © Don Pitcher/AlaskaStock.com

Page 21: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 21

Alaska’s tourism industry is any-thing but stagnant. While much of Alaska’s draw is in its ageless

natural features—glaciers, mountains, rivers, and lakes—the lure of the Last Frontier doesn’t end there. To the de-light of residents and guests alike, sev-eral ziplines have been established in Alaska, offering amazing views and an affordable rush of adrenaline.

Mat-SuIn the valley, it may be about the Mata-nuska Glacier, which is about four miles upstream from the Nitro, a zipline ex-perience offered by Mica Guides. Don Wray, owner of Mica Guides, says “Our zipline is about adrenaline. It’s one big, fast zipline… The total length of cable might be the same as other ziplines around, but it’s all done at once.”

The Nitro is 1,500 feet long, and guests climb a three-story tower to begin their

adventure. Guests may barely be able to see the end of the zipline, being almost a quarter of a mile away, but they’ll have no trouble viewing the surrounding moun-tains and river nearly 200 feet below.

Wray anticipates that their new zipline, which at press time was unnamed, will have been completed by late July. “The one we’re planning, we won’t know until we test it, but it’s probably going to be the fastest zipline in Alaska,” Wray says.

The new zipline will be taller, longer, and faster, beginning at the top of cliffs 250 feet above the river and stretching 2,200 feet.

Wray says, “I’ve been happily sur-prised at the local response to our zipline. We get a lot of locals out to ride it.” The zipline being close to the major popula-tion center of Anchorage certainly helps. “It can just be a good day trip,” Wray says.

TalkeetnaMoving farther north down the high-way to Talkeetna, Denali Zipline Tours offers a different experience. Instead of one zipline, Denali Zipline Tours offers a three-hour canopy adventure, according to Riley Foster, marketing manager. “We

have nine ziplines [and] three suspen-sion bridges; [guests] repel about fifteen feet from one platform to another, [and] there’s spiral staircase from one platform to another.” The last leg of the adventure is the longest zip, about six hundred feet, and travels right over a lake.

Before guests actually climb to the first platform, they participate in Ground School, where guides make sure all of the zipliners are comfort-able with what’s going to happen and familiar with hand signals used dur-ing the adventure.

“The cool thing is that it’s an active tour, so we get a lot of people that really like to be involved and out and about in nature. [They’re] getting this adrenaline rush, this thrill, but on top of that [they’re] up in the tops of the trees, overlooking these beautiful valleys with all these rivers, and the Alaska Range is right there. It’s a re-ally cool way for people to experience the outdoors,” Foster says.

SewardManaged by the same owners as Denali Zipline Tours, Stoney Creek Canopy Adventures opened in June of this year,

Flying high over the Last FrontierBy Tasha Anderson

Page 22: Alaska Business Monthly August 2014

22 Alaska Business Monthly | August 2014 www.akbizmag.com

off ering eight separate zip rides, three suspension bridges, and two rappels.

“It’s [also] a three hour trip,” Foster says, “just a little bit bigger.” Th e highest point of the Stoney Creek Canopy Ad-

ventures zipline is 120 feet, as the Sitka Spruce in the area are a bit taller than the trees in the Denali area. Several of the individual ziplines end at platforms actually built into the towering trees,

anywhere from 60 to 120 feet in the air. “We get a lot of people where [ziplin-

ing] is a huge bucket list thing for them. Th ey’re afraid of heights or something, and they’re really pushing their limits, and they come back and they just have the biggest smile on their face because they’ve conquered it,” Foster says.

Foster, like Wray, emphasizes that this isn’t just a tourist attraction and doesn’t require a long weekend or days off work. “We’re really excited about this Seward location: now we have one that’s two and half hours north of An-chorage and two and a half hours south of Anchorage. We have something for the tourists, but we also have something cool for the Alaskans to go play on.”

DyeaLocated approximately twenty-fi ve minutes outside of Skagway is Dyea, Alaska, the location of Grizzly Falls Ziplining Expedition. Erica Simpson, Director of Sales and Marketing for Alaska Excursions, says that the high-est platform on this zipline is 50 feet. Grizzly Falls Ziplining Expedition is comprised of eleven ziplines of varying

Leap of Faith is the name of the fi rst zipline platf orm on Alaska Zipline Ad-ventures’ tour.

Photo by Davy Anderson

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Page 23: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 23

Tasha Anderson is the Editorial Assistant at Alaska Business Monthly.

length, the longest of which is 750 feet. “We put a lot of energy into making

sure our guests have a one-of-a-kind experience at a great value. We keep our groups small and give a lot of individual attention,” Simpson says.

Th e zipline overlooks the rainforest of the Dyea valley, including numerous waterfalls.

Simpson says, “We use an auto-brak-ing system which allows our guests to zip ‘hands-free.’ Th is really opens up a lot of opportunity for our clients to challenge themselves and not feel like they are put-ting themselves at risk for having fun.”

JuneauGin Anderson, co-owner of Alaska

Zipline Adventures in Juneau, says: “For some [of our guests] it’s about conquer-ing their fear of heights or getting to experience fl ying through the trees in a stunning Alaska rainforest; for others, it is enjoying being outdoors or sharing memories with family and friends. It’s just a great excursion for whole families and people of all ages.”

Th is zipline expedition, which is a lit-tle more than three hours long, features seven ziplines, which counted together cover a little more than a mile. Th e highest point of the tour is one hundred feet in the air, and the longest of the lines is around eight hundred feet. Th e zipline is located on Douglas Island, at Eagle Crest, a city owned ski area.

“Our course is designed to be a hands-free experience allowing our guests to sit back and enjoy the ride while our guides take care of all the braking and equipment,” Anderson says.

Guests will also cross one aerial suspension bridge, enjoying majes-tic mountain views and traveling over rushing streams.

“At the end of the tour, our guests enjoy embracing their inner lumber jack with an axe throw, which is part of our tour,” Anderson says, a great way for guests to participate in a Southeast Alaska tradition.

Wherever Alaskans and guests may trav-el this summer, a zipline option is nearby, ready to fi t into any travel itinerary. R

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Page 24: Alaska Business Monthly August 2014

24 Alaska Business Monthly | August 2014 www.akbizmag.com

FINANCIAL SERVICES

Surety Bonds, an Important Tool for Securing Surety Bonds, an Important Tool for Securing Surety Bonds, an Important Tool for Securing Surety Bonds, an Important Tool for Securing Surety Bonds, an Important Tool for Securing Surety Bonds, an Important Tool for Securing Financing and Maintaining a Business Financing and Maintaining a Business Financing and Maintaining a Business

By Tracy Barbour

Though commonly considered to be a form of insurance, surety bonds are a fi nancial instrument

that many companies rely on to secure funding and acquire new business.

Essentially, a surety bond is a promise or contract to pay one party (the obli-gee or project owner) a certain amount if another party (the principal) fails to meet some obligation, such as satisfying the terms of a contract. Surety bonds diff er from traditional insurance poli-cies in a number of ways. Insurance is a two-party contract between the insured (the buyer) and the insurance company that provides protection for covered losses, according to Ted Baran, surety manager at Alaska USA Insurance Brokers. Surety, on the other hand, is a three-party contract involving the prin-cipal, the obligee, and the surety compa-ny. “Unlike an insurance policy that can be cancelled by either party, a contract bond cannot be cancelled,” Baran says. “A bond remains in force until all terms of the underlying contract are fulfi lled.”

As another area of dissimilarity, sure-ty companies underwrite to the expecta-tion that they will have no losses, Baran says. And when there is a loss, the surety company has the right of recovery from the defaulting principal, rather than indemnifying them the way an insur-ance company would. But in the world of property and casualty insurance, car-riers expect a certain level of losses to be incurred. “While they may not be able to predict the frequency, severity, or val-ue of losses, they understand that losses are part of their business,” Baran says.

Ultimately, those losses are recovered from the principal or contractor that purchases the bond. So if there is a loss, the surety bond will pay out on it and then seek reimbursement from the prin-cipal. Oft en, informal steps can be taken to rectify problems before a claim is

fi led, according to Chris Pobieglo, presi-dent of Business Insurance Associates, an independent commercial insurance and surety brokerage located in Anchor-age. In most cases, the principal will be contacted by the surety company and told to correct the situation, Pobieglo ex-plains. “It’s better if you self-correct and be responsible before the bond pays it out,” he says. “In most cases, a call from the surety company is enough to move the process forward and get it resolved.”

Most principals want to avoid a claim—which can involve expensive legal fees and a considerable amount of time—so they address project-related complications on their own. “Nobody wants it to go into a claims situation,” Pobieglo says.

If a lack of money is the issue, the surety may be able to help. Sometimes the company can step in and assist the principal with securing a line of credit so they can fulfi l their obligations.

Types of BondsTh ere are three main categories of sure-ty bonds: contract, commercial, and fi -delity. Contract bonds, which are very common in the construction industry, are a guaranty from a surety to a proj-ect’s owner that a general contractor will comply with the terms of a contract.

Th e typical types of contract bonds are bid, performance, and payment. Bid bonds discourage contractors from increasing their project bids aft er being awarded a contract. Performance bonds are designed to ensure contractors com-plete projects according to the contract. Payment bonds guarantee that contrac-tors will pay for all services—particular-ly subcontractors—and materials used on a project. Payment bonds are particu-larly important for public-sector projects that don’t allow claims to be fi led against the property for unpaid debts.

Commercial surety bonds are typi-cally issued in four areas: license and

permit, court, public offi cial, and mis-cellaneous. Fidelity bonds, also referred to as employee dishonesty coverage, cover theft of an employer’s property by its own employees. Th is type of surety bond, which functions more like a con-ventional insurance product, is a popu-lar product in Alaska, according to Po-bieglo. “It provides a layer of protection for the owner, so that if anything gets stolen, the company has someone to go aft er,” he says.

In Alaska, surety bonds are employed by a wide range of entities, including auto dealers, janitorial companies, and public notaries. Contract surety bonds are normally required for most public construction projects, as well as many large private-sector projects.

Th e cost for surety bonds in Alaska varies and is oft en based on the com-pany the bonds are placed with and the underwriter’s perceived risk. Premiums for contract surety bonds, for example, are generally between 1 and 3 percent of the total contract value, Pobieglo says. Usually, there’s a 3-percent rate for beginning contractors or small con-tractors. But clients that are very well capitalized and have a lot of revenue may have a rate under 1 percent. On the commercial bond side, there’s a tiered system with merit (1 percent), preferred (3 percent), and base rates (5 percent).

Surety Bonds Often the Key to Getting Financing

Th e need for surety bonds is sometimes driven by a fi nancial institution as a condition of loan approval. Th e require-ment for bonding depends on the type, size, and complexity of the project, as well as the borrower’s fi nancial position and relationship with the lender, accord-ing to Bill Inscho, a senior vice president with First National Bank Alaska.

However, a myriad of factors can come into play. For example, if the fi -nancing is for a very large project or if

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www.akbizmag.com August 2014 | Alaska Business Monthly 25

the bank isn’t familiar with the general contractor, a bond might be a require-ment of the commitment to lend. And the bank would not disperse the loan until it receives proof that the surety bond has been secured. “If the company doesn’t have the capacity for a project, the loan will not be approved,” he says.

When it comes to requiring surety bonds for fi nancing, contract bonds for payment and performance are about 90 percent of what is involved, Inscho says. Surety bonds provide additional assur-ance that the project will get built on time with no liens (for nonpayment of vendors and suppliers). “Th e surety com-pany is essentially underwriting that contractor for their fi nancial position and expertise in the fi eld,” Inscho says.

General contractors typically have already established bonding limits (per project and in aggregate) with their bonding company, Inscho says. So the bonding aspect may be viewed as a rou-tine part of the loan underwriting pro-cess. Th ose that lack the necessary bond-ing capacity must work with a surety company to meet the fi nancing require-ment. “We don’t tell them where to go for a surety bond,” Inscho says. “We make that credit decision that this project has to be bonded. So there are no ifs, ands, or buts about it, and the project gets done on time and everyone gets paid.”

Process of Securing a BondFor many principals, obtaining a surety bond can be a challenge that includes underwriting very similar to what’s re-quired for commercial lending. Surety companies look at the credit, capacity, and character (the Th ree C’s) of their contractors, as well as collateral in cer-tain cases, Baran says. In addition to credit history, surety companies analyze the fi nancial statements of their contrac-tors to determine the amount of working capital and net worth of their clients. Th e stronger the working capital position, the more comfortable the surety will be in extending credit. “Surety companies prefer that contractors have a solid net worth and manage debt in a way that al-lows the company to grow without being burdened with large principal and inter-est payments,” Baran says.

Generally, the paperwork required to underwrite a contractor includes fi nan-cial statements and two to three years’ worth of business tax returns, accord-ing to Denali Alaskan Insurance Presi-dent Mike Gordon. Requested fi nancial statements can encompass balance sheets, profi t and loss statements, and bank account statements.

For bonding programs under $1 mil-lion, “reviewed” fi nancials (those pre-pared in-house and reviewed by a CPA) are generally acceptable. Bonding pro-

grams over $1 million typically require more formality, such as fi nancial state-ments audited by a certifi ed public ac-countant. “Th e surety company wants to know that these fi nancial records are following GAP [Generally Accepted Principles], they are correct, and a third-party has looked at them,” Gordon says.

However, underwriters might request audited records based on more than the dollar value of the project involved. Th ey could collect audited fi nancials for principals with a questionable repu-tation or a limited access to capital. Or they could settle for reviewed fi nancials from a principal with a substantial amount of capital available.

Ideally, contractors should have a surety program created in advance—before a bond is needed, Gordon says.

“You get a surety to agree to an ag-gregate limit and a per job limit. You get that in stone up front. At that point, they [principals] know what their rate is and what their limits are,” Gordon explains. “In a perfect world, this is how it would be done—but in an imperfect world, contractors will come to you the week before, and you have to start from scratch and scramble.” R

Tracy Barbour is a former Alaskan.

Denali Alaskan Insurance President Mike Gordon

Bill Inscho, a Senior Vice President with First Nati onal Bank Alaska

Ted Baran, Surety Manager at Alaska USA Insurance Brokers

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26 Alaska Business Monthly | August 2014 www.akbizmag.com

CONSTRUCTION

According to the state of Alaska, about $800 million worth of ver-tical construction projects are

underway this year. Th e 172 projects around the state are in various levels of completion, from the initial planning stages to fi nal close-out and include con-struction of new buildings, renovation of existing buildings, and energy effi ciency projects for existing public buildings.

And that’s just the state projects. Mu-nicipal, federal, and nonprofi t projects add millions more to the tally.

Construction Spending Reportedly Up

Scott Goldsmith, Mary Killorin, and Linda Leask, of the University of Alas-

ka Anchorage’s Institute of Social and Economic Research, compiled the 2014 Alaska’s Construction Spending Fore-cast this year. It’s a report prepared yearly for the Construction Industry Progress Fund and Associated General Contractors of Alaska. Th is year’s report estimated that construction spending this season would be up 18 percent over last year, at $9.2 billion.

While the report states that much of the increase comes from increased activ-ity in the oil and gas sector, public con-struction spending alone is estimated to be up by 6 percent, to $2.9 billion. Th at number includes roads and highways, ports and harbors, and other non-vertical construction. Splitting out construction

A billion dollar summerBy Rindi White

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www.akbizmag.com August 2014 | Alaska Business Monthly 27

spending for public buildings alone is difficult because the various municipali-ties, nonprofits, and other public entities receive funding from multiple sources, making tracking projects difficult.

Archives Museum Tops State Project List

The largest facility on the list for the state of Alaska is the $138.9 million State Library Archives Museum, or SLAM building, located in Juneau. A 160,000-square-foot building, the facil-ity will consolidate three existing state facilities: the State Division of Libraries, Archives and Museums. PCL Construc-

Iron Workers on the UAF engineering building in Fairbanks.

UAF photo by Todd Paris

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28 Alaska Business Monthly | August 2014 www.akbizmag.com

tion Services, Inc. is the general contrac-tor on the project.

Th e new building is in the middle of its construction timeline; the thirty-two thousand-piece collection at the State Mu-seum was transferred this spring and ear-ly summer to a two-story vault in the new building through a specially built tunnel between the two facilities. Th e vault was the fi rst major piece of the building built. Project manager Kim Mahoney says the next step, which began in June, will be to remove hazardous materials and demol-ish the old State Museum so the rest of the new building can be built in the space.

Th e consolidation was needed to pro-tect irreplaceable state artifacts, as well as provide more exhibition space. Pre-viously, the three arms of the division were housed in fi ve diff erent offi ces and warehouses.

“At its heart, SLAM is about protect-ing the existing collections. Many of our treasures, if damaged, are irreplaceable, yet they are housed in buildings that can no longer adequately protect them. Existing hazards to the collections in-clude: overcrowding; fl ooding; water damage; friable asbestos; insect infesta-tions; and uncontrolled or inadequate systems for humidity, fi re protection, heating, and lighting,” says a project synopsis on the state Museum’s website.

According to the state, the new building will have double the exhibition space as the old state museum, and it will triple the

museum’s collection storage area. It also roughly doubles the amount of space pre-viously allocated for the whole division.

Mahoney says the project includes both operating and energy related effi -ciencies. Although the new building has roughly double the existing space for the division, energy-effi cient features will keep energy consumption fl at. Th e facility will also have built-in seawater wells for dehumidifi cation and desic-cant cooling. Essentially, that means the building will be cooled and dehumidi-fi ed by using seawater.

Construction is ongoing—the project is midway through a four-year phased project, and this year and next mark the most signifi cant portions of the project, building the core and shell of the build-ing. Also on the project task sheet this summer is demolition of the existing state museum building to allow contin-ued construction of the new facility.

Th e new building should be certifi ed for occupancy in May 2016. Th e State Museum collection is expected to be back on public view at that time.

UAA Alaska Airlines Sports Center Wrapping Up

Th e 197,000-square-foot UAA Alaska Air-lines Center, which broke ground in 2012, is nearing completion. Th e $110 million facility has a 5,500 seat performance gymnasium for basketball and volleyball, as well as commencements, concerts, and

The Alaska Airlines Center nearing completi on on the UAA campus in Anchorage.

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Page 29: Alaska Business Monthly August 2014

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community events. Space is also avail-able for athletes to practice, performance space for the gymnastics program, fi t-ness and training rooms for all university sports, and administrative and coaching offi ces, laundry, locker rooms, and team rooms for multiple university sports.

And, according to Mark Palmatier, an owner of Cornerstone General Contract-ing, the contractor on the project, the sports arena will also have a restaurant with an unmatched view of the moun-tains and of whatever is happening on the main fl oor. Th e Varsity Sports Grill will seat about one hundred and Palma-tier says it includes an open, south-facing patio. Th e university plans to keep the restaurant open year-round and, accord-ing to the Sports Center Facebook page, the grill will have food, local beers, and wine available daily for lunch and dinner.

One of the more unique features of the building is its heating and cooling sys-tem, Palmatier says. As part of the proj-ect, his crew tapped the aquifer below the building site and will rob the well water of ten degrees of heat before re-injecting it into the aquifer. Th e recirculation sys-tem will mean a signifi cant cost savings to the university in utility consumption.

A grand-opening celebration is scheduled for September 5-14.

Spotlight on Engineering at UAA and UAF

As part of a University of Alaska-wide ef-fort to increase the number of engineer-ing graduates, both University of Alaska

Anchorage and University of Alaska Fairbanks campuses will soon have ex-panded space for engineering and indus-trial students.

Th e UAA Engineering and Industry Building is set to open in August 2015. Th e $123.2 million project will provide space for teaching “everything from arctic engineering to the classic me-chanical, electrical, and civil engineer-ing, to geomatics (surveying and map-making), GIS, and computer systems engineering,” stated a January 2014 University of Alaska Anchorage “Green and Gold News” story about the project.

Th e facility, built by Neeser Con-struction, will be about 120,000 square feet, of which about 80,000 square feet is new and 40,000 square feet refur-bished from the previous engineering building.

Th e building includes interesting fea-tures, such as a 900-square-foot snow-less sidewalk that was designed by UAA Civil Engineering professor Joey Yang. Other design components and building features will be on display for students to observe and study.

On a similar track, the UAF engineer-ing building broke ground in March 2013 and, depending on available fund-ing, could be complete in 2017. Its over-all cost is $108.6 million, but funding delays have slowed the project sched-ule. Th e university requested $33 mil-lion from the state legislature this year, enough to fi nish the project, but it re-ceived $5 million.

“Th at gets us through the end of April next year,” says UAF senior proj-ect manager Cameron Wohlford.

Th e 119,000-square-foot space in-cludes 23,000 square feet of renovated space. It will have fi ve stories above ground and one below. Wohlford says that, like the Anchorage engineering building, the Fairbanks facility will have “engineering on display.”

“We integrated the building engi-neering techniques so engineers can learn just by walking in the building,” he says. Mechanical and electrical sys-tems are among the features on display.

Wohlford says the building, being built by Davis Constructors & Engineers, in-cludes two kinds of engineering labs not currently available to students. One is a high bay test lab large enough to house a one hundred-foot bridge girder so stu-

Photo courtesy of UAA

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Page 30: Alaska Business Monthly August 2014

30 Alaska Business Monthly | August 2014 www.akbizmag.com

dents can test its features. Another lab space includes cold chambers, ranging in temperature from zero degrees to nega-tive sixty-four degrees Fahrenheit, where engineers can test soil properties, for ex-ample.

All that cooling takes a lot of energy, and Wohlford says energy efficiency is an-other interesting feature of the building. The building includes a unitized curtain wall—essentially a structure wrapping around the building that was specially designed with superior thermal, air, and filtration performance. The curtain wall

was manufactured by Fairbanks glass contractor Bucher Glass, a company that recently went from a “decent-size glazing contractor to a factory,” Wohlford says.

Another fascinating energy feature of the building is the water recirculation sys-tem. The University of Alaska Fairbanks uses a co-generation heat and power plant. University buildings use the steam, a byproduct of electricity production, as a heat source. A new power plant, with a price tag of $245 million, is planned.

“We’ve taken it a step further,” Wohl-ford says of the engineering building’s

heating system. When the steam con-denses and returns as wastewater to the power plant, the roughly one hundred degree water will first run through the engineering building and be used to heat the building via radiant floor heat-ing.

“It’s free heat,” Wohlford says. However, that free heat source is par-

tially responsible for the funding delay. The new engineering building might have to tap into the University’s limited steam heat if the wastewater heating sys-tem doesn’t function as well as planned on cold days. Legislators suggested de-laying full funding for the building until after the power plant was complete.

A new power plant at the University is planned to be open by 2018. If the en-gineering building opened in January or February 2017, Wohlford says the building could use more heat than the current power plant could produce.

“If we were using waste heat, we wouldn’t use that much extra steam. If the waste heat turns off and we have to go back on the full steam heat, then we run that risk,” Wohlford says.

The engineering project is currently funded through April 2015. After that point, the building may have to be temporarily shut down until more con-struction funding is available.

New Maternity Center and Operating Room

Updates at ProvidenceProvidence Health and Services Alaska, a nonprofit Catholic healthcare organi-zation, is in the final stages of its Gen-erations project, a $150 million project that will add more than 85,000 square feet to the facility and renovate more than 67,000 square feet. This project also included ancillary remodels and additions to bring the total to 100,800 square feet. Built by Davis Construc-tors, the multi-phase project that began in 2011 is expected to be complete in December.

Most of the project deals with the hos-pital’s labor and delivery department. The new square footage is a maternity center, which includes an expansion and update of its Newborn Intensive Care Unit, or NICU, with sixty-six bas-sinets, as well as a larger prenatal unit with seven beds and a mother-baby unit with thirty-one beds.

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The project also includes a new hy-brid operating room with an imaging system that will allow physicians to perform minimally invasive, catheter-based procedures to treat clinical prob-lems such as coronary artery disease. The less-invasive procedures generally mean shorter hospital stays, faster re-covery time with less pain, and less vis-ible scarring, according to Providence.

Updated Courthouse Project to Finish This Year

Cornerstone General Contractors is wrapping up a seven-year full renova-tion of Boney Courthouse in downtown Anchorage.

According to Cornerstone, the proj-ect includes a new detention holding cell area, updated control room, three new courtrooms, and updates to judges’ chambers, offices, public lobbies, a law library, and new space for therapeutic courts and the Anchorage Police De-partment. Along with the renovations, the project will upgrade the bones of the 1974 building—a seismic structural upgrade to the concrete structure was added and building mechanical sys-

tems were upgraded throughout. “The whole inside is being modern-

ized,” Palmatier says. Because the state couldn’t afford to

shut down a courthouse while a reno-vation was completed, Palmatier says work continued with the courthouse open. Scaffolding ran throughout the first floor, he says, and courthouse us-ers were directed safely through the work zone. The crew sometimes had to stop work while trial proceedings were recorded, for example.

The interior work at the courthouse should be substantially complete in July, Palmatier says, and the last piece of the project, a remodel of the entryway, should be complete by the end of the year.

Two Anchorage High School Renovations Underway

Cornerstone is also working on a $23 million project to renovate Service High School in Anchorage. The school houses 1,700 students, who will be at-tending school while the project contin-ues. The project will remove hazardous materials from the existing building, renovate the existing building, and add

a new mechanical penthouse and new mechanical systems.

“It’s a total renovation, basically gut-ting [the building] and rebuilding,” Palmatier says. “It’s going to be a lot cleaner and more efficient.”

He says the project should be com-plete in spring 2016.

Cornerstone is also renovating West High School and Romig Middle School, a nearly $13 million project. The project includes a two-story addition to West High School aimed at increasing space for its Career and Technical Education program. Romig is also getting an addi-tion, geared toward the CTE program.

Groundwork on the project began in July and it is expected to be complete next fall.

Building a Decades-Long Dream in Kenai

The Dena’ina Wellness Center in Kenai opened in June, marking the end of a long-held goal of Kenaitze Indian Tribe members to serve tribal members and other Alaska Native and American Indian people in their home community. The fa-cility was designed in collaboration with

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Page 32: Alaska Business Monthly August 2014

32 Alaska Business Monthly | August 2014 www.akbizmag.com

The entrance to the Dena’ina Wellness Center in Old Town Kenai.

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www.akbizmag.com August 2014 | Alaska Business Monthly 33

Architects Alaska, Inc. and Klauder and Company; the Director of Design is John Crittenden with Architects Alaska, Inc.

The $36 million, fifty-two thousand-square-foot facility is built in Old Town Kenai and will replace the tribe’s Dena’ina Medical Clinic, Dena’ina Dental Clinic, and Nakenu Family Center, all of which operated in rented space in downtown Kenai. In addition to the roughly eighty

jobs held at the three locations, the tribe planned to add another twenty-four posi-tions to round out its offerings.

Using the Dene’ model of care, the well-ness center “integrates medical, dental, behavioral health, chemical dependency, wellness, physical therapy, pharmacy support, and traditional healing services” under one roof, according to an overview provided by Kenaitze tribal leaders.

The project was funded as a joint venture with the Indian Health System through a competitive grant process. Kenaitze was one of three entities in the nation to receive joint funding in fiscal 2011. The project also received funding from the state of Alaska, Cook Inlet Re-gion, Inc., the M. J. Murdock Charitable Trust, the Rasmuson Foundation, and the Alaska Mental Health Trust.

Neeser Construction, Inc. built the wellness center, and the design includes many elements that remind visitors of the building’s cultural heritage. A struc-ture similar to a traditional Dena’ina fish drying rack is at the entryway, using cen-tury-old wood from a Wards Cove Can-nery building. Tribal members collected agates, which were inset in the flooring bordering a large open area called the Gathering Space. Tile work inside was influenced by traditional Dena’ina bead-work designs.

Helping Solve a Housing Shortage One Step at a Time

Cook Inlet Housing Authority started construction this year on a multi-phase housing project that will add single-

© Ken Graham Photography.com

Interior of the Dena’ina Wellness Center in Old Town Kenai.

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Page 34: Alaska Business Monthly August 2014

34 Alaska Business Monthly | August 2014 www.akbizmag.com

family and multi-family housing in Anchorage’s Mountain View neighbor-hood, with an eye toward brightening and revitalizing the area.

Sezy Gerow-Hanson, director of Cook Inlet’s public and resident relations, says the project is a “scattered site” development, meaning construction will be happening on several parcels, not one large chunk of land. Th e project is part of a neighborhood revitalization plan developed with the Mountain View Community Council and other interested groups, she says.

“[People in] the neighborhood wanted

to see better quality homes, more own-er-occupied homes. Not huge multi-family buildings,” Gerow-Hanson says. “We worked to try to fi gure out what works fi nancially and aesthetically for the neighborhood.”

Much of the area was fi rst developed in the 1940s and 1950s, she says, so Cook Inlet picked projects that were smaller in profi le–houses and smaller multi-family buildings. But those desires were bal-anced by a well-known aff ordable hous-ing shortage in Anchorage. Th e end re-sult: a $13.6 million project that will add

forty-four units of new residential hous-ing. Two buildings will be four-bedroom single-family rental homes, and the proj-ect includes fi ft een duplexes, a tri-plex, a four-plex, and a fi ve-plex.

Th e project is being built one site at a time, so projects will fi nish in a stag-gered fashion, Gerow-Hanson says. Contractor Davis Constructors is ex-pected to wrap buildings up between January and June 2015.

Cook Inlet Housing is also working on two senior housing projects, one in Anchorage and one in Eagle River.

Th e Anchorage project, a thirty-four-unit building in its Centennial Village off Muldoon Avenue and Peck Street, is expected to be complete in July 2015. It’s the seventh and fi nal building on the senior housing campus at Centen-nial Village, Gerow-Hanson says.

Th e Eagle River project adds fi fty-six units of senior housing to Cook Inlet’s Coronado Park community, located just off the Glenn Highway near down-town Eagle River. Gerow-Hanson says Coronado Park already off ers low- and moderate-income townhomes, as well as owner-occupied condos. Th e senior housing project makes the space in-tentionally multi-generational, and re-sponds to requests from seniors to pro-vide aff ordable housing in Eagle River, where many have relatives.

Built by Neeser Construction, Inc., the Coronado Park Senior Village is a $16.5 million project that will off er one- and two-bedroom apartments. It’s set to open at the end of July.

Gerow-Hanson says the project also includes the largest residential solar array in Alaska. Th e array uses three one-thousand-gallon water tanks with solar-heated water for domestic use.

Work Continues Around the State

Th ese projects are just a sampling of what’s going on around the state. Schools are being built in Mat-Su, a new per-forming arts center is being added to the University of Alaska’s Mat-Su College, and many other building renovations are under way this summer. Look for more in upcoming editions about these and other public projects. R

Rindi White is a freelance journalist living in Palmer.

Page 35: Alaska Business Monthly August 2014

– P A I D A D V E R T I S E M E N T –

When customers step into a Florcraft Carpet One Floor & Home location, they’ll

encounter well more than the average big-box store products and customer service. The family-owned business, which started in Fairbanks in 1962 and added an Anchorage location in 1986, has the distinction of carrying Alaska’s largest in-stock inventory of carpets, rugs and other flooring options.

Recently, Florcraft Carpet One added three cabinet lines, including US-made, eco-sensitive Bellmont Cab-inets. The welcomed new additions enable the company to create an envi-ronment that customers can walk into and be inspired to complete all their home remodel and commercial build-ing needs.

“We have the resources to take you anywhere from your pins on Pinterest, ideas in your head, and architect draw-ings to full completion of your project,” says Chief Executive Officer Patrice Hanson Case. “We are more than just floors; we are a full-service home and business improvement headquarters.”

Florcraft’s broadened inventory plays a key role in its plans to become a complete home improvement center. The company is well on its way there, with its extensive flooring, cabinet and design solutions. Customers can find thousands of carpets, hundreds of rugs and hundreds of other flooring

solutions in the company’s statewide inventory. In addition, Florcraft offers the added benefit—through its Carpet One Floor & Home affiliation—of hav-ing the buying power of more than 900 stores nationally, which translates into competitively-priced products for its customers.

EXCELLING IN SERVICE AND EXPERTISEWith more than 50 years of experience doing business throughout the state, Florcraft is dedicated to offering the best in customer service and expertise. Its staff is constantly being educated and trained in the latest technology in flooring, cabinets and design. They can handle almost any project, whether it’s an installation in rural Alaska or a large commercial building in downtown Anchorage. Florcraft genuinely cares about and is committed to its custom-ers, and this distinguishes the compa-ny within the industry. “We know this is one of the largest purchases our cus-tomers will make for their home or business,” Case says. “We take that seriously and will be there for our customers from the start to finish of their project.”

NEW OWNERSHIP, SAME MISSIONAs another recent development, Florcraft has gained new owners. The company was acquired by Pa-trice Case of Fairbanks, and Evan

Hall and Aaron Lautaret of Anchorage, partners in BHAG, LLC. Actually, the principals are hardly newcomers to the business. Case—whose father, the late Robert Hanson, and his partner, Rich-ard Wien, were the most recent owners of the company—had served as Flor-craft’s president for the past eight years. Hall, the new chief organizational offi-cer, had been Florcraft’s vice president and Anchorage store manager since 2011. And Lautaret had been a long-time Florcraft customer throughout his 20 years in the construction and commercial property management industries.

Case says she felt it was important to carry on her family’s legacy. And although the ownership has changed, the mission of Florcraft Carpet One Floor & Home remains the same. “We want to deliver the highest qual-ity products at an affordable price with the highest level of service,” Case explains.

145 East 5th AvenueAnchorage, Alaska 99501Ph (907) 258-4910Fax (907) 258-1900Toll Free (800) 478-8258

Florcraft Carpet OneBusinessPROFILE

1991 Fox AvenueFairbanks, Alaska 99701Ph (907) 452-1423Fax (907) 451-8424Toll Free (800) 478-3567

Proud new owners of Florcraft Carpet One Floor & Home:Aaron Lautaret, Patrice Case and Evan Hall.

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Page 36: Alaska Business Monthly August 2014

36 Alaska Business Monthly | August 2014 www.akbizmag.com

special section Energy & Power

Alaska’s Railbelt stretches from the Kenai Peninsula north to Fairbanks, more than fi ve

hundred miles. Seventy percent of the state’s population lives along this corri-dor and requires safe, effi cient electric-ity. Six utilities provide electric power in this region. A status check along the Railbelt grid is revealing.

Matanuska Electric AssociationMatanuska Electric Association is poised to become a vertically integrated utility—generating, transmitting, and

distributing its own power. Scheduled to come online by the end of 2014, the co-op’s Eklutna Generation Station (EGS) is a turning point aft er having purchased its power from Chugach Electric Association (CEA) since 1950.

“EGS is MEA’s largest infrastructure project by far,” said MEA’s General Man-ager Joe Griffi th at the annual meeting in April. Th e generation plant houses ten massive dual-fuel Wartsila engines that burn natural gas but can switch seamless-ly to burning diesel should that ever be necessary. MEA expects the generation

station to provide power to Southcentral Alaska for the next several decades.

Also speaking at the annual meeting was MEA Board President Lois Lester, who said, “EGS means a lot to the Rail-belt electrical system, providing addi-tional capacity from effi cient natural gas-fueled engines that can be economically dispatched throughout the entire system. Th is adds to grid reliability and the bot-tom line of all our Railbelt colleagues.”

Th is past summer, MEA signed a contract with Hilcorp to supply natural gas to EGS until March 2018.

Status check on projectsBy Susan Sommer

RAILBELT RAILBELT RAILBELT RAILBELT RAILBELT RAILBELT RAILBELT ELECTRIC ELECTRIC ELECTRIC ELECTRIC ELECTRIC ELECTRIC ELECTRIC GRIDGRIDGRIDGRIDGRIDGRIDGRIDAerial view of the Chugach Electric Associati on’s natural gas power generator on the west side of Cook Inlet.

Page 37: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 37

MEA sits at the center of Alaska’s Rail-belt system, which stretches from Hom-er to Fairbanks and provides electricity to the majority of Alaska’s population. MEA alone serves more than fi ft y-nine thousand customers. “While we think of the Railbelt as a large system,” said Griffi th, “compared to the interconnect-ed grid in the Lower 48 and Europe, it is small, isolated, and fragile. Th e majority of our infrastructure was built between 1940 and 1960, when Alaska’s load was signifi cantly less…Numerous upgrades are required to bring this system up to

© Scott Dickerson/AlaskaStock.com

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38 Alaska Business Monthly | August 2014 www.akbizmag.com

the level required today.” Transmission line and substation upgrades are just two ways MEA is addressing aging in-frastructure.

MEA also has two small hydroelec-tric facilities and is a one-third owner of Eklutna Hydroelectric along with Anchorage Municipal Light & Power (ML&P) and CEA.

But there’s a larger picture, too, for all of the electric utilities to consider. “Th e Railbelt utilities recognize the issues with the system,” said Griffi th, “and the need to work together towards common solutions, especially in light of the addi-tional generation being built through-out the system.”

To address this, in 2011 the Railbelt utilities formed ARCTEC, the Alaska Railbelt Cooperative Transmission and Electric Company. Banding together pro-vides a forum for them to discuss chal-lenges and fi nd solutions that will benefi t all Alaskans, not just their own custom-ers. Th e intent is for ARCTEC to oversee planning, operation, and maintenance of a Railbelt transmission system; a single operator would make the whole process more effi cient and cost-eff ective.

Current members of ARCTEC are CEA, MEA, Seward Electric System (SES), and Golden Valley Electric As-sociation (GVEA). Anchorage’s ML&P and Homer Electric Association are not

ARCTEC members but support its cur-rent projects.

Securing state funding for ARCTEC projects continues to be a challenge. One of the consortium’s priorities is to “Unconstrain Bradley Lake,” mean-ing improve the transmission system between Anchorage and Kenai to take full advantage of the energy created by the Bradley Lake Hydroelectric Project. According to the state-owned Alaska Energy Authority (AEA), the Bradley Lake project at the head of Kachemak Bay currently provides 5 to 10 percent of annual Railbelt electric power needs and is the cheapest power on the Rail-belt. ARCTEC says Bradley Lake could provide more power if the transmis-sion system was upgraded. More wa-ter equals more potential power, and engineering design is nearing comple-tion for a proposed project to divert gla-cial water from Battle Creek Glacier to Bradley Lake, making a modern trans-

“The Railbelt uti liti es recognize the issues with the system and the need to work together towards common soluti ons, especially in light of the additi onal generati on being built throughout the system.”

—Joe Griffi thGeneral Manager, MEA

Four Wärtsillä generators located in the northern hall of MEA’s Eklutna Generati on Stati on. The duel-fuel engines will be powered by natural gas but can also run on diesel fuel if there is an interrupti on in the gas supply.

Eklutna Generati on Stati on April 2014. Contractors conti nue to make progress on the 170 mW power plant. The ten, 17 mW generators will allow MEA to more closely follow its load for effi cient operati ons and increase the Railbelt’s capacity to absorb fl uctuati ng loads from variable power sources like wind. © Northern Powerline Constructors

Phot

o co

urte

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f MEA

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mission system leading north from Bradley even more important.

Chugach Electric AssociationMEA isn’t the only utility in town with a new power plant. CEA’s new natural-gas-fi red, 183-megawatt Southcentral Power Project in Anchorage was listed in POWER magazine’s top fi ve plants in 2013 for fuel effi ciency and reduced air emissions.

CEA’s Beluga Power Plant on the west side of Cook Inlet has been providing gas-fi red power to Anchorage residents since 1968.

As required by the Anchorage Mu-nicipal Code, CEA (as well as MEA) must dedicate resources to move a por-tion of its municipal overhead lines un-derground. Several projects to accom-plish this are scheduled starting this year through 2018.

CEA also continues to operate its Cooper Lake Hydroelectric Project near Cooper Landing on the Kenai Peninsu-la, as well as make improvements along its line going to Hope.

CEA purchases all of the wind power generated by the Fire Island Wind farm, operated by Fire Island Wind, LLC, a sub-sidiary of Cook Inlet Region, Inc. Wind energy reduces CEA’s long-term annual gas requirements by about three percent.

New transmission towers will bring ad-diti onal power to the growing demand centers in Wasilla and Palmer. MEA’s load has grown signifi cantly since its infrastructure was initi ally built.

Photo courtesy of MEA

ANCHORAGE (907) 677-8220 | BARROW (907) 852-7447 |UICUMIAQ.COM

Believe. Commit. Achieve.

Our Commitment to Safety is Industry Tested & Generations Strong

Resource Development

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40 Alaska Business Monthly | August 2014 www.akbizmag.com

Healy Unit 2 Plant Project Breaks Ground

On June 27, Golden Valley Elec-tric Associati on and local of-fi cials held a ground breaking

ceremony for the restart of the Healy 2 power plant.

Healy 2 will put fi ft y megawatt s of coal-fi red power into GVEA’s grid. Adding more coal will help stabilize electric rates in the Interior, which have risen with the oil market over the past decade. The re-start will also boost the Healy economy by creati ng at least twenty permanent jobs over the next forty years.

GVEA will begin test-fi ring the plant with oil in the spring of 2015, according to Lynn Thompson, Golden Valley’s Vice President for Power Supply. “We an-ti cipate the fi rst fi re on coal will be next June. Additi onal environmental controls will be added within eighteen months.”

The total cost of the restart and environmental controls is expected to approach $187 million—b ut the plant is expected to save about $21 million a year in fuel costs.

Work has already begun inside the plant. Obsolete electronics have been removed and existi ng systems are be-ing checked. Foundati on work has be-gun for a new building that will house the emission control system.

The plant operated briefl y in 1999

and has been kept in warm layup sta-tus ever since. GVEA purchased the plant from the Alaska Industrial Devel-opment and Export Authority (AIEDA) December 4, 2013.

Att ending the restart ceremony were the Hon. Clay Walker, Mayor of the Denali Borough; Cory Borgeson,

President and CEO of GVEA; and Joe Usibelli Jr. President of Usibelli Coal Mine, which will supply fuel for the plant; Steve Stark, Project Director and Mark Chapin, Project Manager for Black & Veach Energy, the contractor providing engineering, procurement, and constructi on for this project. R

Ground breaking ceremony for Healy Unit 2, pictured from left : Usibel-li Coal Mine President Joe Usibelli Jr.; GVEA Board Chairman Bill Nor-dmark; GVEA President & CEO, Cory Borgeson; Denali Borough Mayor Clay Walker; GVEA VP of Power Supply Lynn Thompson; Project Director Black & Veach Energy Steve Stark; and Project Manager Black & Veach Energy Mark Chapin.

Ground breaking ceremony for Healy Unit 2, pictured from left : Usibel-

Photo courtesy of GVEA

SOU

RCE:

GV

EA

Golden Valley Electric Association

GVEA lost a main source of fuel recent-ly when Flint Hills Resources ceased refi ning crude oil. GVEA’s new source is Petro Star, Inc. Flint Hills was also one of GVEA’s largest customers, but the utility has fi lled that gap with a new one: Clear Air Force Station. Th e coal-fi red power plant that’s been gen-erating electricity for the station since it was built in 1959 will be shut down, and GVEA will build a substation and distribution line to the military station from its main transmission line along the Parks Highway.

GVEA also bought a coal-fi red power plant in Healy and is refurbishing it; it’s expected to be up and running some-time next year.

A member-owned cooperative that provides power to about one hundred thousand Interior residents, GVEA also

supports a liquefi ed natural gas truck-ing operation from the North Slope. Th e utility’s varied fuel sources consist mainly of natural gas, coal, and oil, but it also uses water from the Bradley Lake Hydroelectric Project and wind from its own Eva Creek Wind Project near Healy. Eva Creek began generat-ing at full power early last year and supplies 20 percent of the cooperative’s peak load. It’s the largest wind project in Alaska.

Homer Electric AssociationHEA is now a vertically integrated util-ity and generates all of its own power. Its newest plant is in Nikiski and fea-tures a new steam turbine and genera-tor that uses waste heat to create addi-tional power. HEA also has a natural gas plant in Soldotna as well as a back-up plant at Bernice Lake in Nikiski. A portion of the Bradley Lake Hydro-

electric Project also supplies electricity during peak periods.

HEA is studying the feasibility of building its own small hydroelectric plant near Moose Pass. It’s also inves-tigating opportunities to help develop tidal power in Cook Inlet.

Seward Electric SystemTh e City of Seward operates an electric utility and buys its power from Chugach Electric Association. It recently moved forward on allowing residents or business-es to interconnect small renewable energy sources such as wind, solar, biomass, geo-thermal, or water (hydro or tidal) to the city’s distribution system. Customers that meet certain requirements can also re-ceive compensation for producing their own alternative electricity.

Th e Alaska Vocational Technical Center wind turbine was the fi rst non-fossil-fuel source to be connected to

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Seward’s grid and provides power for many of the center’s own buildings.

Susitna-Watana Hydro ProjectTh e proposed Susitna-Watana Hydro project in Southcentral would, accord-ing to the AEA, provide about half of the electricity needed along the Railbelt. A 735-foot dam above Devil’s Canyon on the Susitna River, a reservoir, and related facilities are part of the project, current-ly in the pre-application and feasibility study stage. Transmission lines from the project to the existing network as well as an access road would have to be built.

Th e project recently got a boost from $20 million included in the state capital budget. AEA is approved to use the fund-ing for fi ling a license application with the Federal Energy Regulatory Commission.

A land-use deal was also recently agreed to between AEA, six Cook Inlet village corporations, and Cook Inlet Region, Inc. Th e permit should protect landowners while allowing AEA to con-duct environmental assessments.

Various incarnations of a hydroelec-tric project in this area have been in the works since the 1960s.

Coalition ConsideredMany Railbelt utilities agree that join-ing together in some kind of coalition for operational effi ciencies and in-creased buying power is a good idea. Try as they might to incorporate alternative, sustainable energy sources into the mix, each utility on its own nevertheless still uses mostly natural gas for generat-ing power—about 75 percent accord-ing to the AEA. Large renewable power projects such as Susitna-Watana Hydro could be more aff ordable for everyone, from the builder to the consumer, if more players pooled their resources.

ARCTEC’s member utilities, which fo-cus on improving and standardizing the regional power grid, are working with others on several fronts, including with AEA to review grid issues, make recom-mendations, and seek funds to improve Railbelt power generation and distribu-tion, and with the Alaska Legislature to fund projects such as the Battle Creek diversion project at Bradley Lake. R

Susan Sommer writes from Eagle River.

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42 Alaska Business Monthly | August 2014 www.akbizmag.com

special section Energy & Power

ML&P’s New Plant Under Construction

Five years ago, Municipal Light and Power (ML&P) began the process of considering, evaluat-

ing, and deciding whether or not they should build a new power plant.

About two years from now, on June 16, 2016 at exactly 12:01 a.m., ML&P General Manager Jim Trent says the utility will fi re up the engines and com-mission the George M. Sullivan Plant 2A expansion project into service.

ML&P provides power to over thirty thousand people living in the Munici-pality of Anchorage, covering areas north of Tudor Road and west of Boni-face Parkway. Operating revenue comes from 14 percent residential users and 61 percent commercial users, span-ning businesses in the U-Med District, downtown Anchorage, and midtown.

Initial Concerns“We considered the ramifi cations of how, when, and why—and the dollars—and decided that the best interest for our cus-tomers here in Anchorage was an addi-tional power plant to provide continuous uninterrupted service to our customers, who really think that any time they turn on a switch, they should have power, and we adhere to that strategy,” Trent says.

Concerns for a steady natural gas supply

of the partially owned Beluga gas fi eld in Cook Inlet spurred the idea to build a new power plant, Trent says. Gas diminishing is no longer an issue aft er ample natural gas reserves were discovered in the area.

“Th e primary reason we decided to build the plant was to make sure that we had suffi cient power for the growth of Anchorage and to prepare for any major outages that may occur, so we had redun-dancy and equipment,” Trent says. “We also have dual fuel power plants run-ning. So if there’s a disruption in natural gas, we have diesel fuel tanks to support the continued power production. When everything goes to hell in a hand basket, we plan to be up and running.”

Centered on EfficiencyML&P chose Quanta Services out of twelve companies to handle engineering, pro-curement, and construction for the project.

“Leveraging our local Alaskan ex-pertise and resources will play a critical role in performing this project safely, on time, and on budget. We look forward to bringing jobs and economic benefi ts to the area and being part of the local community over the next several years as we build this project,” says Randall Wisenbaker, Quanta Services executive vice president of operations.

Th e new plant, next to the George M. Sullivan Plant 2 in east Anchorage, is a highly effi cient, 120-megawatt thermal generation power plant. It is installed with two GE jet-engine combustion turbine generators and one steam unit.

ML&P estimates emissions at 97 per-cent less nitrogen oxides, 80 percent less carbon monoxide, and about 30 percent less carbon dioxide compared to its eight existing power turbines. Trent attributes the overall effi ciency of plant design to the improvements of the newest GE turbines over the old genera-tors, due to technological advances cen-tered on the engine’s carburetor.

Fuel effi ciency is estimated to average a 15 percent reduction in overall natural gas use, equal to more than $13 million annual savings at $5 per 1,000 cubic feet bulk rate. Th e new Plant 2A is measured to run 35 percent more effi cient than ML&P’s current turbines in use.

Byproduct BenefitsAnchorage Water and Wastewater Utility, or AWWU, is less than a mile away. Its lo-cation will allow the plant to send steam to heat the city’s water supply. Supervi-sory Control and Data Acquisition, or the SCADA system, allows ML&P to digi-tally control the temperature of the water,

Effi cient energy for Anchorage’s oldest neighborhoodsBy Russ Slaten

Arti st rendering of Municipal Light & Power’s George M. Sullivan Plant expansion project in Anchorage.

Image courtesy of ML&P

ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ML&P’s New Plant Under ConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstructionConstruction

Page 43: Alaska Business Monthly August 2014

along with the entire plant operation.“Th e hot water to [AWWU] has to be

at a specifi c temperature to avoid para-sitic degradation. If we give them water that’s too hot, they have to add chlorine to the water to off set the parasites,” Trent says. “So the engineering is very strict in terms of the degree of hot water we can deliver. It has to be seventy-fi ve degrees, no hotter and no cooler, which means the engineering effi ciency is crit-ical to the overall success of the plant.”

Th e average age of the gas turbines run by ML&P is thirty-four years old, with exclusion of the Southcentral Power Proj-ect which began commercial operations in January 2013. Even with the fi ft y-four megawatts from its share of the South-central Power Project, there is still a need to replace the equipment that exceeds its thirty-year design life, Trent says.

“Out of all eight of the other plants, some of them will be retired when [the new Plant 2A] comes online, which adds to our overall effi ciency,” Trent says. “Th is plant on its own merits will be the single most effi cient [thermal generation] plant in North America.”

GroundbreakingTo kick-off the construction phase, ML&P, city, and state offi cials, along with project engineers and others in-volved, came together to break ground on the George M. Sullivan Plant 2A ex-pansion project on April 23. More than three hundred people are involved in the project, with peak construction ex-pected to employ two hundred workers.

Anchorage Mayor Dan Sullivan spoke of the importance of the new ML&P power plant for Southcentral Alaska.

“Th is will be integral to the power sys-tem in the railbelt from Homer to Fair-banks, the expansion of the plant built back in 1975. [Th e legacy plant] served our community well over the years, and it’ll continue to play a critical role as a backup plant for many years to come,” Sullivan says. “We know that [the new plant expansion] will play a vital part in Anchorage being a well-maintained and fi nancially sound city. A key com-ponent to that is having a reliable power and certainly power that uses less gas than the plant we had before.”

ML&P Commission Chair Judy Brady looked back over the last fi ve years, men-tioning the creation of an energy transi-

tion team appointed by Mayor Sullivan. Th e energy team addressed the need to incentivize new gas production, the need to invest in modern power genera-tion, encourage conservation, and in the short term, plan for emergency energy outages, which was realized with the development of the new plant and more natural gas production in the Cook Inlet.

“In fi ve years that all happened. Th e mayor’s offi ce sat down with legislators, assembly members, with other utilities, with other communities, and with the governor’s offi ce. It was an amazing com-ing together, and one of the most amazing things I think I’ve ever seen in a fi ve year period,” Brady says.

Lieutenant Governor Mead Treadwell spoke of various projects around Alaska, but gave a special thanks to the parties involved in ML&P’s expansion project.

“We are doing a lot in the state in terms of geother-mal, hydro, wind diesel, and kite power,” Treadwell says.“Th ere’s a lot of exciting

things going on in power generation, and I tell people from around the country, ‘If you want your project to have effi ciency and to have conservation improved, come to Alaska.’ We are really honored to see this project move forward.”

Internal InvestmentTrent says ML&P was not looking for partners in funding the project, and the $295 million in capital costs comes from ML&P’s internal reserves, setting aside the appropriate amount of dollars to stay on budget.

www.akbizmag.com August 2014 | Alaska Business Monthly 43

ML&P ground breaking on April 23. From Left to Right: Jim Trent, ML&P General Manager; George Vakalis, Municipal Manager; Judith Brady, ML&P Commission Chair; Anchorage Mayor Dan Sullivan; Lieutenant Governor Mead Treadwell; Randall Wisenbaker, Quanta Services Executi ve VP of Operati ons; and Dick Traini, Anchorage Assembly Vice Chair.

© Russ Slaten

Constructi on worker for Roger Hickel Constructi on, Inc. preparing basement concrete wall by securing ti es.© Russ Slaten

Page 44: Alaska Business Monthly August 2014

44 Alaska Business Monthly | August 2014 www.akbizmag.com

“[ML&P] will begin thinking about that number and how to impact our rate payers as minimally as possible to make sure they are not harmed unnec-essarily, but we do expect to recover our costs through the rate base,” Trent says.

Due to Regulatory Commission of Alaska regulations, ML&P cannot pro-pose a rate increase until the plant is operational in 2016. ML&P will begin considering how to approach the Regu-latory Commission of Alaska in 2015 on how to recover their investment over a certain period of time.

As construction continues on the promising new plant, and the details on its operation and use are settled, Trent looks forward to the startup.

“It’s an amazing sight to take some-thing from nothing, bear ground, build a project, and then fi nally go in and lit-erally turn a key,” Trent says. “I’ve built forty-six power plants across the Lower 48, and the thrill is always the same with the forty-sixth power plant as it was with the fi rst.” R

Above: ML&P contractors working on the base of the new George M. Sullivan Plant 2A. Inset: Photo Inspecti on team looking over approved drawings for George M. Sullivan Plant 2A. From Left to Right: Floyd Lindbloom of Agate Constructi on, Inc.; Phil Calhoun, MOA Inspector; Robert Wilson, Special Inspector from DOWL HKM; and Tom Gibbs of Roger Hickel Constructi on, Inc.

Photos © Russ Slaten

Russ Slaten is the Associate Editor for Alaska Business Monthly.

Page 45: Alaska Business Monthly August 2014
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46 Alaska Business Monthly | August 2014 www.akbizmag.com

special section Energy & Power

Energy generati on for the next generati onBy Gail West

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DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm DevelopmentFarm Development

Altaeros Energies has partnered with Tanadgusix Corporati on’s TDX Power to launch the Buoyant Air-borne Turbine nearly one thousand feet into the air south of Fairbanks in 2015. It is expected to produce enough energy to power twelve homes.© Altaeros Energies

Is Alaska on the cusp of hosting the highest wind turbine in the world? Altaeros Energies says it’s

so. Adam Rein, who co-founded Al-taeros (a small, startup company) with an aeronautical engineer in 2010 at the Massachusetts Institute of Technology, says they’ve partnered with TDX Power, a subsidiary of Tanadgusix Corpora-tion, to launch a high altitude fl oating

wind turbine south of Fairbanks—the Buoyant Airborne Turbine (BAT). Th e BAT is an infl atable, helium-fi lled ring with a wind turbine suspended inside and will fl oat nearly one thousand feet above the ground. Rein says the winds at that elevation tend to be far stronger and more stable.

According to Altaeros, the airborne turbine is not intended to supply power

for large electric grids but for remote communities and facilities. It has a power capacity of 30 kilowatts at $0.18 per kilowatt-hour and would create enough energy to power twelve homes.

“We’re fi rst doing an initial pilot deploy-ment on the road system south of Fair-banks,” Rein says, “then we’ll deploy at re-mote off -road villages. We’re really excited about this.” Rein adds that the BAT won

Page 47: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 47

a ConocoPhillips Energy prize in 2011 for promising new energy technology.

Th e project is currently awaiting per-mits from the Federal Aviation Admin-istration (a permit for airspace), from the US Fish and Wildlife Service, and permits from the State of Alaska before it can proceed, Rein says, “but we an-ticipate putting it into the air in 2015.”

Once the BAT is in the air, it will be held steady by high strength tethers that allow the electricity to be sent back to the ground. A power station on the ground controls the winches that hold the teth-ers and pulls the power from the turbine before sending it on to a grid connection. Altaeros also hopes to lift communica-tions equipment such as cellular trans-ceivers or meteorological devices and other sensing equipment for customers.

“More than $1 million of government funding has gone into developing the tech-nology,” Rein says, including $750,000 in fi nancing from Alaska Energy Authority’s Emerging Energy Technology Fund.

Quickly DevelopingProduction of wind energy in Alaska is relatively recent but is developing quick-

ly. Over the past seven years, the State’s renewable energy fund has put $86 mil-lion of grant funds into wind projects, and Sean Skaling, deputy director of Program Development for the State’s Alaska Energy Authority, a division of the Alaska Industrial Development and Export Authority, says results of those projects have already saved $22 million.

“Th ere are twenty-six locations across the state with wind-energy capabilities, and those savings are increasing rapidly,” he adds. “Th ere are the larger wind farms such as Eva Creek and Fire Island. Kodiak has six wind turbines, Kotzebue has nine-teen, and Delta has two. Th ere are a lot of smaller communities with a small num-ber or just a single turbine,” Skaling says.

Of course, there are diff ering sizes of turbines which produce diff ering amounts of power—and, Skaling adds, wind is un-predictable.

Golden Valley Electric Associa-tion currently has twelve turbines at 2.1 megawatts each at Eva Creek, near Healy, and Lynn Th ompson, vice presi-dent of Power Supply for GVEA, says the utility has about a 35 percent capac-ity factor from it—the ratio of the farm’s

actual output over a period of time.“Th at’s 8 megawatts on a full time ba-

sis around the clock,” Th ompson adds. “Th at’s pretty good for a wind farm.” With the current load on GVEA’s sys-tem, Th ompson says the utility has no current plans to expand Eva Creek, al-though, he adds, it does purchase out-put from a wind farm at Delta as well.

“We’re looking more to buying power from independent wind-power produc-ers,” Th ompson says, “such as Alaska Envi-ronmental Power [owner of the Delta wind farm] and Fire Island [owned by Cook Inlet Region, Inc.]. One of our biggest criteria is that it not raise rates for our members.”

Integrating PowerTh e issue to adding wind power to many of the state’s electricity-producing utili-ties is one of integrating it with power from other sources. “Wind is fi ckle,” says Matanuska Electric Association’s General Manager Joe Griffi th, and every bit of al-ternative energy has to be dealt with dif-ferently. “You have to produce power in a nice level method, so you have to provide some regulating backup for wind power, something that balances the load.”

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Page 48: Alaska Business Monthly August 2014

48 Alaska Business Monthly | August 2014 www.akbizmag.com

With two small hydro projects sell-ing energy to MEA now, the utility is also in conversation with Cook Inlet Region, Inc. (CIRI) about purchasing wind power from a potential Fire Island expansion.

While MEA is preparing to produce power from wind and other sources, Chugach Electric is already on board buying all the wind energy produced by Fire Island.

According to CIRI’s Senior Director of Energy Development Suzanne Gib-son, the fi rst phase of Fire Island has been integrated into the system suc-

cessfully, and CIRI is now looking to expand the wind farm.

“We have eleven turbines on the is-land now at 1.6 megawatts each pro-ducing 50,000 megawatt hours annu-ally,” Gibson says. “We would like to double the size of the project in 2015 so we would produce 100,000 megawatt hours. At that capacity we could meet about the needs of about thirteen thou-sand average households annually. For the second phase, we’re talking with MEA, Homer Electric, and GVEA in addition to Chugach about buying the energy we would produce.”

Gibson adds that CIRI has been satis-fi ed with the energy production of Fire Island. “It’s just where we expected it to be,” she says, “but every year will be dif-ferent. We have a twenty-fi ve-year pow-er-purchase agreement with Chugach, and that long-term agreement gives us confi dence to move forward.”

Th e second phase of Fire Island would need an additional $50 million dollar investment and would result in about 150 construction jobs in 2015, Gibson estimates. Two long-term jobs would also be created.

“Th e transmission line we built last year is suffi cient,” Gibson says. “It was built to accommodate the second phase. We hope to have a contract with a util-ity or a group of utilities in the next few months with a power-purchase agree-ment approved by the regulatory com-mission by October. Th en we can begin construction by May of 2015.” Gibson adds the new turbines will be the same size as the current ones.

In addition to Fire Island, CIRI is involved in wind-power production in Washington state, Texas, Wyoming, and Nebraska, although Fire Island is the only wind farm at which CIRI is the operator. Th e organization is also exploring other sources of renewable energy. “It doesn’t seem prudent to re-main dependent on natural gas and diesel when we have other options for green energy,” Gibson says.

Renewable KodiakKodiak’s utility, Kodiak Electric Asso-ciation, has been working diligently to switch from the costly diesel to renew-able energy sources and is a success story to be envied.

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The third turbine being installed at the powerhouse at Terror Lake in Kodiak.

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“In 2007 the utility craft ed a vision statement that said Kodiak Electric would endeavor to reach 95 percent re-newable power by 2020,” says the util-ity’s President and CEO Darron Scott. “We started the fi rst phase of our con-version in 2009 by adding three 1.5 megawatt turbines and completed the second phase in the fall of 2012 by add-ing three more and a 3 megawatt bat-tery energy storage system.”

With the addition of hydropower and a recent hydro plant expansion, Scott says, “we’re now, for the fi rst quarter of 2014, producing energy from 99.4 per-cent renewable energy sources. We’re basically 100 percent renewable and our electric rates have been fl at. It’s been very cost-eff ective and great for our membership.”

Scott adds that not only is the air cleaner, but there are secondary ben-efi ts that help fi sh processors and the National Guard base. “We can share our energy credits with our customers,” Scott says. “Kodiak has the nation’s largest Coast Guard base and they can use some of our credits to help meet US renewable energy goals.

“We’re really proud of this—the wind has been integral part of solution to keep rates fl at and the air clean. We’re not subject to the volatility of the world fuel market,” he says.

Mainstream AlaskaTh e rest of Alaska is working more slow-ly to reach the State’s stated goal of pro-ducing 50 percent of its electricity needs from alternative or renewable sources.

“Th at’s a goal that has resonated with people,” says Chris Rose, execu-tive director of the Renewable Energy

Alaska Project, “but how we imple-ment this vision isn’t clear yet. Wind projects around the state range from small, wind-diesel hybrid projects to large-scale projects such as Fire Island. Renewable energy is mainstream in Alaska now and Legislators understand the value of diverse sources of power. Th ey continue to fund the Alaska En-ergy Authority so it can continue to support renewable energy projects.” R

Gail West writes from Anchorage.

A Kodiak Electric Asso-ciati on batt ery energy storage system. Photo courtesy of KEA

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Page 50: Alaska Business Monthly August 2014

50 Alaska Business Monthly | August 2014 www.akbizmag.com

Lined up like beads on a string along a windy sandpit on the shore of Kotzebue Sound, Deering is an

Iñupiat community at the mouth of the Inmachuk River. Its 123 residents haul water, but a central power plant pro-vides electricity and hot water for the lo-cal washeteria. Like most remote, rural Alaska villages, energy costs are high.

In a community that small, however, even small improvements can pay big dividends. In 2013, the Alaska Rural Util-

ity Collaborative (ARUC) oversaw the in-stallation of a new pump and controls on the village’s heat recovery system.

Combined with other effi ciency ef-forts, the project saved the washer and water plant about $5,000 monthly in fuel costs, according to John Nichols, manager of ARUC, a program within the Alaska Native Tribal Health Con-sortium (ANTHC) that was created to manage, operate, and maintain water and sewer systems in rural Alaska. Th at may not sound like much, but that means about $154 a month in savings for each of the thirty-six households, or about 5 percent of their mean income.

Rural Alaska PriorityReducing energy costs is a priority in rural Alaska, where some residents pay

more than ninety cents per kilowatt hour for electricity and eight to ten dollars for a gallon of diesel fuel, compared with fourteen cents per kilowatt hour and four dollars per gallon in Anchorage.

According to Commonwealth North in 2012, “Th e poorest Alaskan house-holds spend up to 47 percent of their income on energy, more than fi ve times their urban neighbors.”

Some villages are teetering on the brink of sustainability, Nichols says.

“Th e ANTHC energy program is really about the sustainability of entire commu-nities in rural Alaska,” he says. “If we can’t bring down the cost of energy in rural vil-lages, it will kill the whole community.”

Effi ciency is the fi rst step in reducing energy costs, and maintenance is key, says Nichols.

“Th e number one thing you can do is make sure your boiler system has been maintained regularly, is clean, and is a newer style high-effi ciency model,” he says. “I really think with a well-main-tained or new boiler, you’re going to save from 20 to 30 percent in energy costs.”

ARUC, which is comprised of twenty-seven villages, estimates energy costs make up 39 percent of village water/sewer expenses.

According to ANTHC energy audits, northern water/sewer systems have the capacity for 50 percent in energy sav-ings. ARUC is working with villages to lower costs by increasing operational effi ciencies. For instance, it installed smaller, more effi cient boilers in Sleet-mute, Chevak, and St. Michael. It also constructed systems that use waste heat from the power plant to heat water in

special section Energy & Power

The Efficiency Factor in the Energy EquationThe Efficiency Factor in the Energy EquationThe Efficiency Factor in the Energy EquationThe Efficiency Factor in the Energy EquationThe Efficiency Factor in the Energy EquationThe Efficiency Factor in the Energy Equation

Priority List — Energy Efficiency Measures

Rank Feature Improvement Descripti onAnnual Energy Savings

Installed Cost1

Savings to Investment Rati o, SIR2

Simple Payback (w/Maint. Savings)3

1 Refrigerati on: Chest Freezer

Add new Seasonal Shutdown $128 $1 2459.25 0.0 (N/A)

2 Refrigerati on: Milk Refrigerator

Add new Seasonal Shutdown $32 $1 615.00 0.0 (N/A)

3 Cooking and Clothes Drying – Cooking Equipment

Turn off pilot lights in kitchen during summer (Seasonal Shutdown)

$1 $1 15.50 0.8 (N/A)

4 Refrigerati on: Vend-ing Machine

Add new Seasonal Shutdown $282 $600 5.51 2.1 (N/A)

5 Other Electrical: Electric Heat Trace

Add new Clock Timer or Other Scheduling Control

$1,220 $5,000 2.87 4.1 (N/A)

6 Lighti ng: Exterior Pole Lights

Replace with 10 LED 100W Module StdElectronic and Add new Occupancy Sensor

$5,034 $22,000 2.80 4.4 (4.2)

7 Lighti ng: Misc Incandescent

Replace with 30 FLUOR CFL, A Lamp 15W

$267 $1,500 2.02 5.6 (N/A)

8 Lighti ng: Exterior Wall Lights

Replace with 30 LED 50W Module StdElectronic and Add new Manual Switching, Oc-cupancy Sensor

$5,924 $66,000 1.16 11.1 (10.1)

Or how to save hundreds of millions of dollars every year

By Julie Stricker

The thermal images show where the heat leaks from the structure, providing clues on where best to reinsulate.

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www.akbizmag.com August 2014 | Alaska Business Monthly 51

villages such as Ambler and Shungnak, saving thousands of gallons of fuel oil each year. Similar projects are under-way or planned in Savoonga, Russian Mission, Noorvik, and Quinhagak.

Eighteen rural health clinics around Alaska received energy effi ciency retrofi ts as part of ANTHC’s Rural Energy Initia-tive. Th e retrofi ts and upgrades, such as LED lights, control systems, programma-ble thermostats, and circulation pumps to lower energy use, will save nearly $68,000

in operations costs annually. In a news release, project manager

Gavin Dixon notes that most of the up-grades were small and inexpensive but carried immediate savings.

“Most of this technology was not avail-able when these facilities were built in the ’80s, ’90s, and even in the early 2000s,” Dixon says. “Most of these materials come at a low cost, but you get a lot of direct, quick savings from them for the communities.”

An estimated forty additional health

clinics across the state could benefi t from similar retrofi ts, according to AN-THC audits.

Maintenance Training NeededBigger solutions may be needed in some cases. Most infrastructure in rural Alaska is thirty to forty years old, Nichols notes, so the installation of a new boiler system pays off immediately. Th e next step is to keep it maintained and managed properly.

“What we fi nd is even with the newer boilers, oft en they’re not well-main-tained and well-managed,” Nichols says. “If there was a program to properly maintain all the boilers in rural Alaska, I think we’d see a 20 percent reduction in energy usage statewide.”

Th e ANTHC Energy Program reports that 10 to 35 percent of energy used in northern Alaska communities is for water and sewer. A state study in 2012 backs up Nichols’ observation that op-erations and maintenance have more of an eff ect on energy effi ciency than de-sign and construction.

To address that issue, Nichols says he would like to see a training program set up to train people in each village to

Clothes Drying $206 0%Cooking

$2,013 2%

Other Electrical$29,732

24%

Refrigeration$4,023

3%

Lighting$30,435

25%Exhaust Fans

$1,296 1%

WaterHeating$12,421

10%

Floor$6,380

5%

Wall/Door$9,706

8%

Window$5,703

5%

Ceiling$3,927

3%

Envelope Air Losses$17,476

14%

EEM Savings$13,520

11%

Maint. Savings$2,380

2%Clothes Drying$206 0%

Cooking$2,013

2%

Other Electrical$29,732

23%

Refrigeration$4,023 3%

Lighting$16,216

13%

Exhaust Fans$1,296

1%

WaterHeating$11,672

9%

Floor$6,984 5%

Wall/Door$10,589

8%

Window$6,021 5%

Ceiling$4,298 3%

Envelope Air Losses$19,129 15%

Existing Building Energy Cost Breakdown Total Cost $123,319

Retrofit Building Energy Cost Breakdown Total Cost $112,179

Modeled Building Energy Cost BreakdownSo

urce

: Bet

tisw

orth

Nor

th

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Page 52: Alaska Business Monthly August 2014

52 Alaska Business Monthly | August 2014 www.akbizmag.com

maintain the systems. Now, if a boiler has problems in Deer-

ing, for instance, a lot of agencies will send someone out from Anchorage to fi x it.

“It would be cheaper to call some-one from Seattle to work on my boiler,” Nichols says. “If we had one guy who was well-trained and well-paid from each community, just think of the enor-mous savings. Of course that would save a ton of money that we’re paying, including travel time and travel costs.”

Th e same goes with buildings. Good construction is ideal, but it isn’t the only important aspect, he says.

“In rural Alaska, operations and maintenance impacts energy effi ciency more than design or construction,” Nichols says. “A poorly designed, poor-ly constructed building, if it’s managed well, can still be more energy effi cient than a poorly managed one.”

Northern InnovationsIn northern Alaska, high costs associat-ed with village water and sewer systems have resulted in some innovations.

Most buildings in the north that are connected to the local water line have an “Arctic box” on the outside where the wa-ter enters the house. If the box isn’t tightly sealed, cold air can enter and freeze the waterline. According to ARUC’s 2013 overview, accelerating warming in the

north is increasing ground movement due to the freeze/thaw cycle. Th is began to pull the Arctic box away from the build-ing. So ANTHC is testing fl exible water lines designs in Savoonga and Selawik.

In community water tanks, a pressure transducer measures the water levels, sig-naling when a pump is needed to add wa-ter and to stop pumping when the desired water pressure is met. In most places, transducers are hung from a wire at the top of the tank. In Alaska, ice oft en forms at the top of the tank, so many commu-nities install the transducers in the pipes instead. But water circulation in the pipes can falsely signal water level changes, starting and stopping the pump, which can wear it out and wastes electricity.

ARUC developed a transducer that can be placed at the bottom of the tank, which eliminated false signals and saved elec-tricity. It worked so well in tests, ARUC is using it in tanks in non-ARUC sites.

Public Building AuditsAlaska’s public buildings, such as trib-al halls and schools, are also fertile ground for energy effi ciency projects.

In 2012, the Alaska Housing Finance Corporation conducted energy audits on 327 public buildings throughout the state. It released a “White Paper on Energy Use in Alaska Public Facilities” that concluded many buildings have signifi cant energy savings potential at relatively low costs. Th e report also con-tained the following fi ndings.

� Buildings in Anchorage and southeast Alaska outside of Juneau appeared to be less energy effi cient than anywhere else in the state, with the excepti on of the North Slope.

� Design and policy decisions aff ect energy use, as well as the importance of a commitment to effi cient buildings.

� Overall, eff orts to track and manage energy use in some faciliti es are lacking in accountability.

Th e bottom line was that Alaska’s ap-proximately fi ve thousand publicly owned buildings cost the public about $641.2 mil-lion each year in energy costs. But, effi cien-cy measures could reduce those costs by approximately 20 percent, or $125 million.

Dena Strait, an architect and LEED Green associate and energy specialist

with Bettisworth North, worked on the AHFC audit. She says one of the biggest problems she noted with older facilities was ineffi cient ventilation systems.

“Th ey’re supplying too much air for the number of people in the building,” Strait says. “You’re bringing in a lot of really cold air and warming it up and some-times pushing it right out of the side.”

A heat recovery system could help, but the biggest issue is that many build-ings are not being used the way they were designed decades ago. For one thing, many are too big, Strait says.

“Th ere was a lot more money to do capital projects thirty or forty years ago,” she says. “I think Alaska has gone through a pretty luxurious period of capital activity when Ted Stevens was in power. A lot of buildings were built bigger than they needed to be.”

When a building is designed, architects and engineers must design the ventila-tion system to accommodate the building when it’s full. Another problem is that the lights, heating, and ventilation systems are running, even when the building is not occupied. Th e effi ciency solutions for each building will be diff erent.

“It’s not a one-size-fi ts-all,” she says. “Even in the same community, you can have two buildings side by side. One can be a home, one can be a school. Th e solutions for both of those buildings are diff erent, even if they’re side by side.”

Automation and ModelingStrait notes a couple of options.

One is to automate the systems and adjust them to run according to the ac-tual use of the building. Carbon diox-ide sensors can prompt the ventilation system to provide only what’s needed for the building occupants instead of a constant volume of air.

“One of the big things I would do dif-ferently now is to do energy modeling,” Strait says. “It allows the design team to try out solutions without actually con-structing them. It’s a lot easier to fi gure them out on a computer.”

With modeling, Strait can fi gure out the best orientation on the building site and the proper mechanical systems and build in energy effi ciency from the ground up.

ANTHC did just that. In 2012, the nonprofi t completed construction on its 84,403-square-foot Healthy Com-munities Building in Anchorage. Th e

Energy Efficiency Resources

Residenti al� Alaska Housing Finance Corporati on’s

(AHFC) Home Energy Rebate program: ahfc.us/effi ciency/energy-programs/home-energy-rebate/

Commercial� Alaska Energy Authority’s (AEA)

Village Energy Effi ciency Program (VEEP): akenergyauthority.org/programsalternati veVEEP.html

� AEA’s Commercial Building Energy Audit Program (CBEA): akenergyauthority.org/effi ciencyaudits.html

� AHFC’s Alaska Energy Effi ciency Revolving Loan Fund (AEERLP): ahfc.us/effi ciency/energy-programs/energy-effi ciency-revolving-loan-fund-aeerlp/

� A comprehensive resource for energy effi ciency in Alaska is akenergyeffi ciency.org/

Page 53: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 53

Julie Stricker is a journalist living near Fairbanks.

building’s extensive energy effi ciency measures such as advanced lighting, oc-cupancy sensors, and a white-painted roof as well as a robust recycling program and commitments to fostering healthy lifestyles led to it receiving LEED Silver certifi cation from the US Green Build-ing Council, according to a news release. Th e building includes locker rooms and a bike corral and is near public transporta-tion to encourage employees to use alter-native transportation. Th e entire Alaska Native Health Campus is also smoke-free. Janitorial supplies must meet indoor environmental quality standards.

Over a ten-month period, the HCB used 46 percent less electricity and natu-ral gas per square foot than the ANTHC’s Consortium Offi ce Building, according to ANTHC Campus Projects Manager Paul Morrison in a news release. Th ose savings added up to about $180,000.

“Every dollar we save in the operation of this building goes back into helping operate our company,” Morrison says.

Energy OptionsHomeowners and small business own-ers have no shortage of options on ways to save energy. Th at in itself can be daunting, Strait says.

“I think the fi rst step for most entities, if they don’t know where to start, is to get an audit,” she says. Audits are available from many nonprofi t, government, and commercial entities. All will provide a professional analysis of a building, with a list of energy effi ciency suggestions. “Sometimes you really just don’t know where to start until you have the audit.”

Both residential and commercial audits can be reimbursed or paid for through existing, ongoing programs, she says.

Strait notes Bettisworth North can help individuals and communities write grants and fi nd funding for energy proj-ects, with energy use analysis to reduce energy costs, and with energy effi ciency renovation work to turn energy costs into program and business opportunities.

“Th ere are a lot of resources,” Strait says. “It is just fi nding them and know-ing which ones apply to which types of projects.” R

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Page 54: Alaska Business Monthly August 2014

54 Alaska Business Monthly | August 2014 www.akbizmag.com

TELECOM & TECHNOLOGY

Leveraging Leveraging Leveraging Leveraging Leveraging Leveraging Worksite Worksite Worksite Telecom Telecom Telecom

Tools Tools Tools

Increasingly, Alaska businesses are leveraging a combination of technical solutions to enhance worksite com-

munications, allowing employees to per-form their duties anywhere and anytime.

Companies across all industries are using communication tools “in the fi eld” to enable workers to conduct business whether they’re in a confer-ence room down the hall, across town, or in a remote region of the state.

Increasing Productivity GCI, Alaska’s largest telecommunica-tions system, off ers an array of products to help workers stay connected while on the job. Th ese solutions range from ba-sic cellphones, smartphones, and tab-lets to mobile broadband devices like air cards and hotspots.

As an integrated communications provider, GCI off ers the expertise to

pull together solutions that fi t custom-ers’ specifi c needs, says Senior Manager Commercial Product Marketing Grego-ry Schlabaugh. “Our specialists can fi nd that perfect solution—whether it’s soft -ware, hardware, a GCI-hosted solution, or a third-party solution,” he explains.

Some businesses are still providing workers with basic cellphones, but that practice is becoming less common the more they realize the benefi ts of smart-phones and tablets, Schlabaugh says. Th ey’re taking processes that are ex-tremely paper-intensive, such as hand-writing paper forms and fi ling them with a clerk, and replacing them with forms that can be submitted through apps. Th ese apps allow mobile work-ers to enter the data electronically, so the business can act instantly on the information. Smartphones and tablets are cool tools, Schlabaugh says, but the

bottom line is their ability to increase productivity: “Th e end goal is to make customers more productive.”

In Alaska, in-the-fi eld communica-tions are frequently employed by trans-portation, construction, and utilities companies. But if more companies were to redefi ne what it means to be “in the fi eld” (whether it’s working outside or simply away from a desk), they would realize how technology could work for them, Schlabaugh says. Offi ce workers meeting in a conference room still need the same processes and communica-tion tools, such as email, as they do at their desk. Hospitality workers roam-ing throughout their facility to check on rooms need access to data to improve the customer experience. Likewise, health-care workers must be able to communi-cate effi ciently as they move from patient to patient. “It’s about enabling that work-er to be productive when they’re not at a physical work station,” he says.

Time management is also a major fac-tor in how technology is being used to en-hance worksite communications. Plumb-ers, for example, are using smartphones to log in when they arrive at the job site, and GPS records help track the work being billed. Th ey’re also using camera phones for quality assurance purposes by

Enhancing connecti vity,

collaborati on, and producti vityBy Tracy Barbour Alaska Communicati ons Field Technician Jake Herman installs, repairs, and

troubleshoots the company’s network for customers in Fairbanks.

© Alaska Communications

“Our specialists can find that perfect solution—whether it’s software, hardware, a GCI-hosted solution, or a third-party solution.”

—Gregory SchlabaughSenior Manager

Commercial Product MarketingGCI

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www.akbizmag.com August 2014 | Alaska Business Monthly 55

taking photos at the beginning and end of each job to document their work.

Alaska businesses are also imple-menting fl eet management solutions to keep track of drivers, vehicle logs, and vehicle maintenance, which can help with industry compliance.

While there are signifi cant benefi ts of using technology to enhance work-site communications, some businesses are shortsighted by the costs involved. However, Schlabaugh says, companies should look at the bigger picture and consider how mobile technology can have a positive impact on their bottom line in terms of improved productivity, safety, and compliance.

Working Whenever and Wherever

Mobility, collaboration, and the use of information are key areas that Alaska Communications considers when eval-uating a company’s need for communi-cations in the fi eld. Alaska Communi-cations provides high-speed wireless, mobile broadband, Internet, voice, and other services that make it possible for people to work wherever and whenever

they want. “Today’s workers, increas-ingly, want to be able to do the same things that they can do at their desk anywhere else,” says Business General Manager for Wireless Chris Reaburn.

Workers also want to be able to col-laborate with their cohorts and custom-ers throughout the world. Th ey expect to have access to information on their desktop computer whenever they need it. As such, Alaska Communications off ers smartphones and tablets that let workers patch into their company’s in-tranets and other capabilities.

But worksite communications can also involve less obvious tactics, such as using a 4G LTE wireless router to create a pop-up offi ce. For instance, if a remote team needed a worksite to have offi ce-based connectivity, they could combine a wire-less 4G router (or hotspot) with a portable computer and VOIP phone that runs off a wireless data connection. Th at would ef-fectively create a mobile version of their of-fi ce. “You have all the stuff you usually use to conduct business,” Reaburn says. “And if you have your four-digit desk number for your VOIP phone, you can do business virtually like you’re at your desk.”

Th e increasingly-mobile business environment is driving more remote collaboration, Reaburn says. “Collabo-ration used to mean we get together in a room and work together,” Reaburn says. “Now it means we get together in a variety of spaces with technology and share information and work together.”

However, remote collaboration doesn’t just encompass people sharing informa-tion; it also involves machines. More and more, smart sensors are being used to monitor systems and networks at a dis-tance, thanks to the availability of wire-less data. Th e technology is so intriguing that some Alaska businesses are look-ing at using drones, wireless routers, and cameras to capture information re-motely. Th e use of drones—which could be especially helpful in Alaska’s isolated areas, could be a real possibility within a year, Reaburn says.

While the types of worksite commu-nications may vary among businesses, most industries are using wireless tech-nology to give their employees greater fl exibility to conduct business anywhere, Reaburn says. And now with cloud com-munications, small companies have ac-

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Page 56: Alaska Business Monthly August 2014

56 Alaska Business Monthly | August 2014 www.akbizmag.com

Tracy Barbour is a former Alaskan.

cess to some of the same technology as large companies. He says: “In the old days, you had to take on a lot of infra-structure costs. Now with cloud com-munications, the cost is distributed, and small companies can compete in ways they couldn’t before. When you pair cloud communications with wireless devices and business done in a mobile sense, you’ve got something powerful.”

Mobile Technology When it comes to providing worksite communications, AT&T focuses on building a solid mobility infrastructure foundation for companies to manage, optimize, and control mobile endpoints, critical communications, usage, and applications, according to Anchorage-based Shawn Uschmann, sales director, Business Integrated Solutions, AT&T.

AT&T provides a range of products and solutions to help Alaska businesses innovate their processes, increase pro-ductivity, and generate new revenue.

“Th ese solutions help businesses in-crease their effi ciency by managing assets, employees, schedules, forms, customer information, etc., ultimately saving them time and money and hav-ing a tangible impact on business rev-enue and operations,” Uschmann says.

Most businesses with workers who are in the fi eld, travel, or leave the of-fi ce are relying on mobile communica-tion, Uschmann says. Businesses with a sales team, for instance, can ben-efi t from AT&T Sales Force Automation products, which provide mobile access to customer relationship management tools, collateral, order status, inventory, reporting, collaboration tools, enterprise class messaging, mobile point of sale, and marketing applications. Having this

information at hand in real time can in-crease productivity, lessen travel time, and increase customer satisfaction.

As another example, almost any business can use AT&T Mobile Work-force to keep workers connected and more productive on the go. Its cloud-based solution lets businesses access and share content with their coworkers and teams across multiple devices.

Examples of Alaska companies that have recently implemented mobile ap-plications for communications in the fi eld include a large mining operation that is using AT&T Remote Mobile Zone to provide cellular service at mining lo-cations; an Anchorage-based social ser-vices company that deployed AT&T’s cloud based remote access service; and a provider of portable restrooms, trailers, and wash stations that imple-mented a tracking solution to maintain complete visibility to its assets.

Instant Communication Two-way radios remain an increasingly popular option for worksite communica-tions, although many people don’t real-ize that they still exist, according to Gary Peters, president and CEO of ProComm Alaska. In fact, Anchorage-based Pro-Comm Alaska sells a variety of solutions to support one-to-one and one-to-many instant communications, including local on-site radio systems, wide-area digital ra-dio systems, hands-free headsets for high noise environments, and digital data ap-plications using two-way (text) messaging.

High-powered two-way radios give users an eff ective and convenient method for reaching out to coworkers at one or multiple locations. Peters ex-plains: “You can pick up the radio, hit a talk button, and speak to up to fi ft een

people at one time. It’s an instant way to get communications to all your people.”

Communicating by radio allows workers to avoid hearing a busy signal, wasting time playing phone tag, or get-ting stuck in “voicemail jail,” Peters says. As another advantage, users can talk on a radio without requiring a re-peater or cellular system. Th is can be a major advantage in remote areas of the state where no cellular coverage exists.

Two-way digital radio systems support mobile data terminals as well as vari-ous applications, so mobile employees can use their laptop, tablet, or vehicle to have their corporate information within reach. And through private data systems, employees can research items in their inventory; complete job and purchase or-ders; take and send pictures; and trans-mit real-time video from the fi eld. GPS applications help companies keep track of their assets and personnel, which can be critical in situations where employees have become unresponsive or injured.

Peters says people are starting to real-ize the value that a digital radio system off ers. Many businesses are going beyond using “walkie-talkie” style, one-to-one service in a single local area. Companies are taking advantage of data features to communicate with employees simulta-neously in multiple locations around the state, Peters says. “Th e digital two-way radio world will continue to remain par-allel with cellular to do the heavy lift ing, as there is no replacement for one-to-ma-ny instant communications for industri-al-safety and mission-critical users.”

Meeting the DemandAlaska’s communications providers are meeting the demand for in-the-fi eld communications in varying ways. Mo-bile radio systems, laptop computers, smartphones, and tablets are popular facilitators of worksite communications, while satellite phones, smartphone watches, and solar battery chargers are less common. Th e use of two-way radios, mobile and cloud technology, and time-saving applications is helping workers connect with others, complete various tasks, and increase productivity while they’re in the fi eld. R

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Page 57: Alaska Business Monthly August 2014

Service not available in all areas. Minimum 24 month commitment term. One time setup fee of $149.00 currently on special for $49.00 after instant rebate. $9.99/month equipment lease fee plus monthly service fees and taxes apply. Non-standard installation may result in additional charges. Equipment must be returned upon cancellation of service to avoid unreturned equipment fees. Actual speeds will vary and are not guaranteed. Use of the Exede service is subject to data transmission limits measured on a monthly basis. For complete details and the Data Allowance Policy, visit www.exede.com. O�er may be changed or withdrawn at any time. Exede is a registered mark of ViaSat, Inc. FCC February 2013 Report “Measuring Broadband America”.

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Page 58: Alaska Business Monthly August 2014

58 Alaska Business Monthly | August 2014 www.akbizmag.com

NATURAL RESOURCES

Tongass T imber ProgramTongass T imber ProgramTongass T imber ProgramTongass T imber ProgramTongass T imber ProgramTongass T imber ProgramTongass T imber ProgramTongass T imber ProgramTongass T imber ProgramRati onal, economic transiti on needed

By Owen Graham

We need a rational, economic transition to a young-growth timber program on the Tongass.

Many private timberland owners use a net present value calculation to identify the optimal economic age to harvest their timber. Some long-term assumptions must be made to do the analysis—future interest rates, future timber values, future management costs, etc., but this is a good method of determining when to most profi tably harvest private timber.

Tongass Nati onal Forest in Southeast Alaska.© R.E. Johnson/AlaskaStock.com

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60 Alaska Business Monthly | August 2014 www.akbizmag.com

The issue is more complex on public lands, especially national forest lands. Public timber can be managed profit-ably to maximize timber harvest op-portunities, and many State forests are managed this way, but our national forests must be managed in compliance with the laws and the intent of Congress.

The Forest Reserve Act of 1891 allowed the US President to set aside lands as na-tional forests. In 1897, Congress passed the Forest Management Act, which specified the purpose of the reserves was to preserve a water supply, preserve the forests, and provide a continuous supply of timber “for the use and necessities of the citizens of the United States.”

The Tongass National Forest was es-tablished in 1908, and by 1934 govern-ment foresters had completed the first growth and yield tables for the Tongass. These yield tables allowed foresters to measure the potential sustained-yield of timber from the forest, after which the agency began planning a timber sale program that would foster a permanent, year-round timber manufacturing econ-omy for the people in Southeast Alaska.

The transition to young-growth har-vesting has always been part of the tim-ber sale program—it just takes time to get there. Initially the Forest Service planned to manage most of the better growing sites for timber production while still maintaining stream buffers, research areas, and a few wilderness re-serves. Some of the timber mills in the Pacific Northwest viewed the Tongass as

a potential wood-basket for their mills, but Southeast Alaska communities wanted the timber to remain in Alaska to support local timber manufacturing. The agency thus began selling timber with the stipulation that the timber be processed locally. The agency collected stumpage payments for the timber and used some of those receipts to insure prompt regeneration of the harvested areas. The Forest Service plan included a transition to young-growth after about one hundred years because that would maximize the growth potential of the land, which is a smart thing to do.

In 1960, as many people began to place greater value on other amenities that the forests provide, Congress enacted the Multiple-Use Sustained-Yield Act “to au-thorize and direct that the national for-ests be managed under principles of mul-tiple use and to produce a sustained yield of products and services, and for other purposes.” These include clean water, recreation, fishing and hunting opportu-nities, and fish and wildlife habitat. These additional amenities don’t provide much direct revenue, but they are important values from the forest. In addition, the Multiple-Use Sustained-Yield Act made crystal clear that the additional uses of the forest are “supplemental to, but not in derogation of, the purposes for which the national forests were established as set forth in the Act of June 4, 1897.”

In 1969, Congress enacted the Nation-al Environmental Policy Act, followed in 1976 by the National Forest Manage-ment Act (NFMA). These laws direct the Forest Service to periodically prepare management plans for each national forest and concurrently to prepare en-vironmental impact statements to look at the environmental consequences and reasonable alternatives for those man-agement plans. In 1980 and 1990, Con-gress also passed legislation specific to Alaska, designating vast new wilderness areas and promising to supply sufficient timber to preserve the existing timber industry. Unfortunately, after 1990 the

promised supply of timber was not made available, causing the timber industry to decline to about a tenth of its former size.

Each time the agency has revised its management plan for the Tongass, it has increased its emphasis on non-timber amenities and reduced the amount of land available to grow and harvest tim-ber. Prior to 1976, the agency was man-aging 5 million acres for timber produc-tion. After 1980, the agency planned to utilize only about 3 million acres pri-marily for timber production. Currently, the 2008 Tongass plan allows potential harvest on only 663,000 acres, about half of which is young-growth currently too young to harvest responsibly. Yet the current Administration is now discuss-ing restricting the timber sale program to only the young-growth stands that are not in reserves, which total about 300,000 acres—1 percent of the acreage that was managed for timber produc-tion prior to 1990. This Administration’s young-growth transition proposal is all about politics; it is not about a balanced, multiple-use plan for the Tongass.

In order to support a viable timber man-ufacturing industry, there must be suffi-cient timber supply to allow each manu-facturing facility (e.g. sawmill, veneer mill, fiberboard plant, etc.) to amortize the cost of the facility and make a profit. There must also be sufficient economy of scale (supply of timber) to allow a group of manufacturing facilities to specialize and capture the highest value from the diverse timber that grows in the region; otherwise the industry would not be able to compete in the wood products markets.

The current federal Administration has proposed accelerating the transition to young-growth with a goal of ending all old-growth harvesting over the next ten to fifteen years, but the current young-growth acreage is simply insufficient to sustain a timber supply for a viable young-growth manufacturing industry. Both Washington and Oregon do have viable young-growth industries, but they also have 8 and 10 million acres of State and

Each time the agency has revised its management plan for the Tongass, it

has increased its emphasis on non-timber amenities and reduced the amount of land available to grow

and harvest timber.

In 1980 and 1990, Congress also passed legislation specific to Alaska, designating vast new wilderness areas and promising to supply sufficient timber to preserve the existing timber industry. Unfortunately, after 1990 the promised supply of timber was not made available,

causing the timber industry to decline to about a tenth of its former size.

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www.akbizmag.com August 2014 | Alaska Business Monthly 61

Th e good news is that by complying with NFMA and honoring the promises Congress made to sustain our commu-nities and our industry, we can have vi-able timber manufacturing businesses for the next thirty years, at which time there will be more young-growth acre-age, the existing young-growth stands will have doubled or tripled in volume, and the young-growth trees will be much larger and more valuable for the sawmills than they are now.

Th is plan would leave more than 80 percent of the old-growth timber un-

touched (90 percent if we count the 4 million acres of non-commercial, old-growth timberlands on the forest). Th at would be a rational, economic plan for the Tongass, one that is more consistent with the intent of Congress for our pub-lic lands. Multiple use management is, aft er all, the law on the Tongass, as it is on all national forests. R

Owen Graham is the Executi ve Director of the Alaska Forest Associati on.

private timber respectively, most of which is young-growth. Th ese two states also contain about 20 million acres of national forest timberland. Further, if the young-growth trees are cut twenty to thirty years prior to maturity as the current Adminis-tration is proposing, then the amount of volume harvested from each acre will be half or less than of what it will be at ma-turity, thus making the prospect of transi-tioning to young-growth manufacturing even more improbable and imprudently wasting a natural resource that belongs to the American people. Th e Forest Ser-vice invested our tax dollars in the young-growth forest, and harvesting the trees before they reach maturity would pre-clude us from achieving our anticipated return on investment.

A typical mid-size, old-growth saw-mill utilizes about 2,000 acres of timber annually and employs about a hundred people in the mill and a similar number of people in the woods. Th e high-value lumber that is produced from old-growth trees is necessary to cover the cost of con-structing access roads into these remote, mountainous areas as well as the cost of harvesting and manufacturing and ship-ping fi nished products to market.

In contrast, young-growth timber is coarse-grain wood fi ber that is not suit-able for the higher-value products that can be produced from old-growth tim-ber. In order to be profi table, small-log mills (spaghetti mills in sawmill lingo) must be highly mechanized (fewer jobs) and, even in areas where the road sys-tems are already in place, these mills must process much larger volumes of lumber to compensate for the lower lum-ber values. Th ese modern small-log mills are also very costly ($75 to $100 million). It is doubtful if any private investors would make such an investment without an adequate long-term timber contract to insure they could operate long enough to amortize their investment.

NFMA prohibits the harvest of nation-al forest timber prior to the timber reach-ing 95 percent of its maximum growth potential (about ninety to one hundred years on the Tongass). Th e bulk of the young-growth timber in Southeast Alas-ka is less than sixty years old, so compli-ance with the NFMA prohibition on pre-mature harvest of young-growth means a signifi cant transition to young-growth would take at least another thirty years.

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62 Alaska Business Monthly | August 2014 www.akbizmag.com

NATURAL RESOURCES

Tongass Bellwether: Tongass Bellwether: Tongass Bellwether: Dargon Point Timber Sale Dargon Point Timber Sale Dargon Point Timber Sale

Dargon Point lies on the west coast of Prince of Wales Island at the south-ernmost tip of Alaska. In recent

months, a stand of trees near this isolated rainforest coastline has become a bellweth-er on the Tongass National Forest.

Th e US Forest Service fi rst stipulated its plans to develop a young-growth for-est industry on the Tongass as far back as twenty-fi ve years ago. But the matter of precisely when the Tongass National For-est should begin its shift away from logging old-growth forests has been a hotly con-tested question.

So when federal foresters marked out a fi rst-of-its-kind fi ft y-eight-acre timber sale in a young-growth forest on Dargon Point, it drew more than a little curiosity from timber industry observers.

Most timber watchers seemed to expect little interest from an industry that has re-mained—unique among the world’s soft -wood-producing regions—dependent on old-growth trees.

If the industry’s enthusiasm for the Dar-gon Point timber sale is any indication, those early doubts appear to have been turned on their head.

“I’m amazed that it attracted the bids that it did,” says Forrest Cole, supervisor for the Tongass National Forest. “It defi nitely shows the promise for second growth.”

Th e 4.5 million board-foot Dargon Point sale sparked an entrepreneurial buzz, draw-ing four bids instead of the normal one or two.

“We went conservative on the appraisal because we weren’t sure how people would value the second growth,” says Stan McCoy, the supervisory forester for the Th orne Bay and Craig timber zones.

Th at incentive appears to have been un-necessary: the high bid of nearly $800,000 came in at 81 percent over appraisal.

‘Great quality wood’Clarence Maxey began working in the woods on Alaska’s Afognak Island when he was still a teen. Today he owns Fron-tier, Inc., the fi rm that put up the winning bid at Dargon Point. (As of press time, the contract was still under routine review and wasn’t offi cially awarded.) When Maxey fi rst walked the forest at Dargon Point, he liked what he discovered there.

“I was just amazed at the uniformity of the trees, the height; the volume per acre is just amazing. Th at’s a quality stand of tim-ber that just grew back naturally,” he says by phone from his offi ce in Idaho. “It prob-ably has fi ve times the volume per acre as what they took off in old-growth back sev-enty years ago. We’re talking maybe 2 per-cent defect, versus old-growth being closer to 60 to 70 percent defect.”

While the strength of the domestic market for young-growth wood may still hold some uncertainty, he welcomes the shift .

“We’re interested in all timber, whether it’s young growth or old growth,” he says. “We prefer the size of the timber in the sec-ond growth because it’s easier to manage and handle. I’ve cut old-growth timber and people have got misconceptions about old-growth timber. I’ll just be honest with you: old-growth timber is not a six-foot in diam-eter spruce every other tree. I mean it’s a bunch of punky, rotten hemlock, broken off red cedar snags, and every once in a while you’re going to run across a nice big Sitka spruce. Th e majority of the timber is rotted and over mature.”

Maxey’s business has built secure ex-port markets in Asia. Under the terms of the sale, half of the harvest is eli-gible for export to such markets as raw logs. Terms call for local pro-cessing on the remainder.

Sustainable young-growth ti mber industry shows early promiseBy Dustin Solberg

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www.akbizmag.com August 2014 | Alaska Business Monthly 63

When Maxey walked the forest at Dargon Point, a grandson engaged in the fam-ily business joined him. While Maxey’s company is interested in current prospects like Dar-gon Point, he knows the best op-portunity on the Tongass lies with his grandson’s generation.

“He’s thirty-three, so by the time a lot of this big volume

comes on line it will be perfect for him,” he says.

Local Mill IdeasTh e Good Faith Lumber mill at Th orne Bay, a logging camp-turned-town on Prince of Wales Island, represents a new generation sawmill. Pur-chased in 2012, it’s tailored to fi t the era of the Tongass for-est’s transition toward more environmentally sustainable young-growth logging.

“Th e notion that we’re going to be able to cut old-growth here forever is fi ctitious. We’ve ac-cepted that,” says Greg Boyd, a partner in the mill from nearby Craig, Alaska. “We’re actu-ally gearing ourselves for young growth being a big component.”

Good Faith’s bid on the Dargon Point sale came in second. Bids from Sealaska, the Southeast Alaska regional Native Corporation, and Kla-wock’s Viking Lumber, the region’s largest sawmill, were third and fourth, respectively.

Boyd remains optimis-tic about opportunities for smaller mills like Good Faith Lumber as the forest shift s to off ering more young growth timber sales.

“We don’t feel we could ever satisfy the demand. Th ere’s plenty of opportu-nity for everybody,” Boyd says.

He maintains that the young growth industry won’t reach its potential

immediately, nor will it attain the scale of

the region’s earlier timber era.

“We won’t be able to cut it in the amounts that we have in the past,” says Boyd, who’s more concerned with a sus-tainable future for Prince of Wales Is-land, where he’s a long-term resident.

“I want to see all the small little mills have wood available. I think it’s better for our economy to have a lot of small mills operating because generally speak-ing the money stays in the community and that’s good for everybody,” he says.

Th is diff ers from the economic model under which timber was fi rst developed in the Tongass.

“I have to say it was very short-sight-ed thinking. Unfortunately a lot of re-ally beautiful timber got turned into pulp,” he says.

Good Faith Lumber expects most of its future timber supply to come from the Tongass National Forest, which comprises 80 percent of the land base in Southeast Alaska. Products such as house logs, mold-ing, beveled siding, D-log siding, and cedar for custom hot tubs have been well received by a range of customers, Boyd says.

A future industry tailored to a young-growth harvest will require some mill re-tooling and new effi ciencies. A traditional sawmill saw blade cuts a kerf measuring as much as fi ve-sixteenths of an inch.

“Th at makes for a lot of sawdust, a lot of wasted wood,” Boyd says. “Today, you can take a lot thinner blade and get the same result.”

Ultimately, Boyd says Good Faith has an optimistic outlook on the future of the region’s transformed timber industry.

“We believe that when we look at jobs, high-value-added is the way to go,” he adds. “Anytime we put wood in a kiln or do any tooling, the price goes up. You end up putting more people to work on the same wood. Th at’s the beauty of it.”

Guiding a ‘Tongass Transition’Last summer, US Secretary of Agricul-ture Tom Vilsack announced the federal government’s offi cial policy on the long-debated “Tongass Transition.” While short on specifi cs, the memo called for a ten to fi ft een year transition away from old-growth timber harvest and “to-wards a forest industry that utilizes sec-ond-growth—or young-growth—for-ests. Moreover, we must do this in a way that preserves a viable timber industry that provides jobs and opportunities for residents of Southeast Alaska.”

Th e offi cial memo also stated that at the end of this timeframe, the vast majority of timber sold by the Tongass would be young growth. Meanwhile, the Department of Agriculture has invested in a range of al-ternative economic development opportu-nities including recreation, tourism, and fi shing. (Th e region’s seventeen thousand miles of salmon streams supply 30 percent of the state’s commercial salmon harvest.)

Th ese economic opportunities in-clude habitat restoration. Th e agency has been working with partners such as Th e Nature Conservancy to restore salmon streams and forests.

“An exciting story in the transition is the fact that there is an opportunity to im-prove fi sh and wildlife habitat and grow a second-growth industry,” says Keith Rush, the Conservancy’s conservation forester.

Th e harvest of young-growth trees can help benefi t fi sh and wildlife by creating openings in unnaturally dense forest can-opies. Th is allows light to reach the forest fl oor and ushers a cascade of regenera-tion: plants such as blueberries can return to the forest, followed by foraging deer.

Since last summer’s memo, the Ton-gass National Forest has determined that the current forest plan would need to be amended in order to meet the secretary’s transition timeline. Revising the plan is important because it dictates where future timber harvests, among other for-est uses, can occur—allowing for a more swift transition to young growth.

Tongass supervisor Forrest Cole reports the forest’s acreage includes 450,000 acres of harvested stands —many of these acres on highly productive and quickly regener-ating sites. When young growth forests on all private and state lands are factored in, the total will be considerably larger. Stands of young growth on more remote Heceta Island and Kosiusko Island are next in line.

“Th ey are looking and having similar characteristics as Dargon Point,” Cole says. “We’re going to have a few thou-sand acres show up immediately.”

Th e pace of the original timber har-vest can be charted in a perfect boom-and-bust bell curve—the challenge for forest managers is to avoid replicating that trajectory as the young-growth for-est industry develops.

“Th ere’s this huge bubble that occurs. In order to keep a sustained supply, you’re going to need to fl atten out that bubble,” Cole says.© John Hyde/

AlaskaStock.com

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64 Alaska Business Monthly | August 2014 www.akbizmag.com

Th e future of the Tongass is not com-pletely scripted. To help guide the for-est’s transition, the Tongass recently sought applicants for its Tongass Advi-sory Committee. Its newly named mem-bers represent four forest user groups: the Alaska Native community, timber industry, conservation, and govern-ment. Th e committee’s fi rst session is scheduled for August 6-8 in Ketchikan.

Cole said he hopes the citizens’ adviso-ry committee can reach agreements that help guide the Tongass transition, add-ing: “I think the future of the industry is upon us as long as we can make it socially acceptable to make it happen.” R

As the Tongass Nati onal Forest transiti ons toward more management of its lands and waters, it is restoring key salmon streams, such as Twelvemile Creek on Prince of Wales Island.

Erika Nortemann/TNC

Restoring Habitat in the Tongass

Twelvemile Creek on Prince of Wales Is-land is a salmon stream with a future. It’s an example of how, fueled by its transi-

ti on toward sustainability, the Tongass Nati on-al Forest is restoring streams.

When big old-growth trees along the banks of salmon streams such as Twelvemile Creek die and fall into the creek, they provide

the logs that help create the deep pools and eddies for young salmon.

These big trees are now missing from the banks of Twelvemile Creek, decades aft er ex-tensive ti mber harvest here, and so the ti me to replenish the stream’s structure is now.

On the Twelvemile Creek project, crews harvested more than six hundred trees,

mostly young-growth and some with root wads sti ll att ached, from nearby areas (away from the recovering streamside forests) that were fl own by helicopter to remote staging sites along the stream. Heavy equipment contractors who typically work in the ti mber industry conduct much of the on-the-ground work with Forest Service biologists. R

Dusti n Solberg writes from Cordova.

Page 65: Alaska Business Monthly August 2014

MORE ABOUT OUR VALUES: www.SEALASKA.com | Twitter @SEALASKA | Visit us on Facebook | YouTube @SEALASKAKWAAN

Balance, Reciprocity and Respect

Wooch.Yax | Gu dlúu | Ama Mackshm

Red and yellow cedar provide financial and cultural assets to Southeast communities. Sealaska’s forester and

manager, Brian Kleinhenz, is collaborating with the U.S. Forest Service and Oregon State University to identify

the best ways to protect cedar seedlings from deer. Partnerships like this are an important part of Sealaska’s

natural resource management.

Visit www.sealaska.com to read about this partnership and research.

VALUES IN ACTION

Page 66: Alaska Business Monthly August 2014

66 Alaska Business Monthly | August 2014 www.akbizmag.com

special section Environmental Services

Valley Community for Recycling

Solutions

Facility grows with populati on and interest in recycling

By Rindi White

Businesses seeking to achieve a “zero waste” goal may soon be able to reach that goal, thanks to important up-

grades at Valley Community for Recycling Solutions’ (VCRS) facility near Palmer.

VCRS this year installed a Harris Badger, two-ram, horizontal, auto-tie baler, an im-portant piece of equipment that will allow the group to handle more waste and recovered resources faster and with the same number of staff . Th e nonprofi t also added an enclosed area where residential customers can drive through and drop off their recycled goods.

An in-fl oor conveyor feeds the baler; VCRS staff put sorted materials onto the conveyor, and the materials are carried up into a hopper, where they’re crushed together into a giant brick shape, then automatically tied and pushed out of the machine. Th e nonprofi t previously used a single-stroke, manual-tie baler that didn’t work as effi ciently as the new equipment, VCRS Executive Director Mollie Boyer says.

“We can handle fi ve times the amount of material with this equipment,” she says. “We quite doing outreach for eight years because we couldn’t handle more than our natural growth [with the previous baler].”

Growing Fast to Meet Growing Demand

Mat-Su continues to be the fastest growing area of the state. In the last ten years, the popu-

lation has nearly doubled to more than ninety-six thousand people, according to the Alaska Division of Community and Regional Aff airs.

People moving to the Valley, and those who already live there, want to be able to recycle their waste. Aft er much planning, a small group of people began holding recycling opportunities in the Valley six-teen years ago. People drove up with cars jammed full of tin cans, plastic bottles, newspapers, and cardboard (among other things), and volunteers stood out in the weather in windy parking lots to help peo-ple sort their recyclables into the right bins.

Th e demand for recycling opportunities grew and the group expanded from sea-sonal to monthly to twice-weekly and then fi ve-day-a-week recycling opportunities. Meanwhile, organizers set a goal of having a recycling facility where people could eas-ily drop off their newspapers and aluminum cans any day of the week, a place that would make curbside recycling an option and allow businesses and government entities to make recycling part of their daily operations.

A large portion of that goal was reached in 2010 when VCRS opened its new re-cycling center adjacent to the Mat-Su Borough Landfi ll on North 49th State Street near Palmer. But the facility wasn’t 100-percent complete—because of a lim-ited funding stream, key pieces such as the Harris Badger baler, in-fl oor conveyor, and

an enclosed space for residential customers to drop off their recycled goods had to wait.

“Th e building alone didn’t increase our capacity,” she says. “It made some things easier, but it’s the equipment that we need-ed. It was planned with the new building—we had a hole in the fl oor and had built an isolated pad for it already.”

A Long, Heavy HaulVCRS contracted with Anchorage building company Pinnacle Construction, Inc. to provide and install the baler, a project that cost nearly $460,000.

Th e baler came from Georgia and had to be sent up in two parts, says Pinnacle Project Manager Kirk Gothard. It’s a big machine—Gothard says it’s about forty feet long and weighs sixty-fi ve thousand pounds.

Th e main body of the baler was shipped on a fl atbed truck from Georgia to Fife, Wash-ington, where it was shipped to Alaska. Th e rest of the baler—the handrails, stairs, plat-forms, hopper unit, wire-tie units, hydraulic hoses, and other pieces—required shipping in a large open car by train. Finding an open car for rail shipping isn’t easy, Gothard says.

“It was a rare container,” he says. Th e necessary car was located and it arrived in Alaska too—a week later than the rest of the machine, he says.

While installation wasn’t too diffi cult, Go-thard says the size of the machine made it a

Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community Valley Community for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling for Recycling

SolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutionsSolutions

New in-fl oor conveyor and Badger baler (behind conveyor, on left ) next to the Barracuda baler (on right, in operati on 2005-2014).Photo courtesy of VCRS

Page 67: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 67

complex task. Getting the forty-foot behe-moth into the building required setting up a crane outside to lift it off the trailer, put it on rollers, and roll it into the building. Th en the crane lift ed it onto the waiting pad.

Boyer says her crew wrapped up train-ing in mid-May to run the new baler, just in time for work on the $700,000 addition to begin.

Residential Recycling Finally Out of the Weather

VCRS seems to be a wind magnet—wher-ever they held recycling events, or where previous facilities have existed, volunteers and staff battled wind. Adjacent to the Mat-Su Borough Landfi ll, the new recycling center is still buff eted by wind.

A nod to its windy nature, the nonprofi t in 2012 installed a Kestrel e300i wind gen-erator, which is helping off set the facility’s energy costs. It also has twenty-four solar panels. Boyer says any unused power gen-erated is fed back into the Matanuska Elec-tric Association power grid. According to its online monitoring system, the two re-newable power sources, funded through a grant, have saved the nonprofi t more than $1,800 in power costs so far this year.

When the new recycling center was built, the intent was to have a covered drive-through spot for individual recyclers to offl oad their recyclables, but there wasn’t quite enough funding to build an enclosed area. So residential recyclers drove into a canopy, customized with vinyl walls along the side, and dropped their goods off . It was a step up, but not what the group en-visioned.

Th e new residential drop-off space, built by Wirtanen, Inc. this summer, has a two-lane drive-thru with garage doors that can be closed behind users, blocking wind. It also has some other useful features, Boyer says.

“We’ll be able to have an area where, if the Knik Glacier wind comes, we can open and shut [the doors] behind traffi c. It also has a concrete pad now and in-fl oor heat so there’s no ice development,” she says.

Th e drive-through spot also has a drain line running down the middle of the space, so any runoff can be collected.

Boyer says the addition project also in-cluded a few repairs that make it easier to wo rk at the facility year-round. A wind-break was added to the offi ce entrance area so snow doesn’t drift against the entrance, she says, and a covered space was added outside the facility’s break room door. A drip line to stop water from seeping into the building was also added, she says.

Boyer says the drive-through makes it easier to accommodate residential custom-ers and should cut down on wait times.

Focusing On Zero Waste Goal, Helping Other Businesses

In 2006, years before the new recycling center was built, Boyer and other VCRS supporters lobbied the Mat-Su Borough and the Mat-Su Borough School District to pass “zero waste” resolutions—essentially a measure recognizing that roughly 90 per-cent of the waste generated in Mat-Su each year ends up in the landfi ll—pledging to work toward a goal of waste prevention and recycling, promoting products and mate-rials that are durable and recyclable, and turning discarded items into new products.

Th e measure passed unanimously at the time and the borough and some individual schools have instituted recycling programs, but Boyer says she hasn’t pushed for more movement toward the goal because the re-cycling center was operating at capacity.

Two businesses already off er curbside re-cycling in the Mat-Su: Valley Recycle Pick-Up and Ready Recycles. Alaska Waste also brings business cardboard to the recycling center, Boyer says.

Now, she says, she hopes to return the focus to that “zero waste” goal.

“We didn’t push the school district,” she says. ““We’re going to be working closely with them and partnering more, now that our capacity is up.”

She hopes to see the district initiate a recycling program that is used in every school and school district offi ce across the district. Likewise for the Mat-Su Borough, she says.

Kurt Dawkins, who with his wife owns Ready Recycles, says he’s eager to put the re-cycling center’s new, more effi cient baler to use by expanding his company’s contracts.

“We’re looking to expand quite a bit here, hopefully before the snow fl ies,” he says.

His company already picks up recycla-bles at the Mat-Su Borough Administration building in Palmer and at a few schools during the school year, as well as curbside for many residential customers.

Dawkins said prior to running Ready Recycles, he wasn’t a huge believer in re-cycling. But it makes practical sense, he says, and he’d like to see more people un-derstand that recycling can be simple and convenient. His Wasilla-based business of-fers weekly pick-up of unsorted recyclables starting at twenty dollars a month.

“It can go to the recycle center [and be used again] or it can go into the trash and that’s the end of it,” he says. “We only have a limited amount of resources—why plunder them when you don’t need to?” R

Rindi White is a freelance journalist living in Palmer.

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68 Alaska Business Monthly | August 2014 www.akbizmag.com

special section Environmental Services

Emerald Alaska, a multi-faceted waste management company cel-ebrating fourteen years of work-

ing in Alaska, started simply, with one guy driving a truck and picking up used motor oil and other fl uids for process-ing and recycling.

Th eir environmental waste business is growing—last year they processed 3.5 millions of gallons of oil/fuel, water, an-tifreeze, sludges, and solids at the com-pany’s Viking Drive facility in Anchor-age. Th e company also manufactures several products for automotive mainte-nance and recently added another man-ufacturing line—diesel exhaust fl uid, or DEF, which is used in newer diesel en-gines to reduce harmful emissions.

A Man, a Truck, and a MissionTh e company was originally called En-ergy Recovery Services, owned and op-erated by Alaska resident Blake Hillis.

Emerald Alaska, Inc. was formed as the Alaska arm of Emerald Services, Inc. when the four hundred-employee family-owned company based in Se-attle merged with Hillis’s company in 2000 and kept him on as company president.

Today, nearly one hundred people work for the company in seven facilities throughout the entire state of Alaska. Company offi cials say Emerald Alaska is the largest locally operated full-ser-vice industrial and environmental ser-vices company in the state.

Emerald has a staggering list of ser-vices, from hazardous waste transporta-tion and disposal and twenty-four-hour emergency spill cleanup to packing and shipping multiple laboratory chemicals to recycling and reusing petroleum oil, oily water, or mixed fuels for industrial burner fuel and other custom-blended fuel products to wastewater treatment. Th e company also manufactures and sells Magnum antifreeze and Sub Zero windshield washer fl uids, as well as their new product, ArcticBlu DEF.

Locally OperatedTh e “locally operated” tag is something Emerald Alaska wears proudly. Th e company serves all sizes of business,

Recycle, Recycle, Recycle, Reuse, Reuse, Reuse,Recycle, Reuse,Recycle, Recycle, Recycle, Reuse,Recycle, Reuse,Recycle, Reuse,Recycle, Recycle, Recycle, Reuse,Recycle,

RecoverRecoverRecover Reuse,Recover

Reuse, Reuse, Reuse,Recover

Reuse,Recover

Reuse,Recover

Reuse, Reuse, Reuse,Recover

Reuse,

Emerald Alaska gets down to the business of sustainabilityBy Rindi White

Cleaning up hazardous waste.

Photo courtesy of Emerald Alaska

Page 69: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 69

from Fortune 500 companies to mom-and-pop businesses. But they place a big emphasis on customer service and fi nding solutions for customers.

“We’ve always based our business on the fact that we are local—you’re not dealing with a national brand, we are your neighbors,” says company director of sales and marketing Paul Nielsen.

Emerald serves companies of all sizes, as well as the federal, state, and municipal governments. It has term contracts with several federal agencies, including the DLA Disposition Services division of the Defense Logistics Agen-cy, according to the company resume. It also works with the Alaska Department of Environmental Conservation and the Alaska Department of Transporta-tion and manages household hazardous waste collection and disposal programs with the Municipality of Anchorage, Fairbanks North Star Borough, and Ke-nai Peninsula Borough.

According to information from Em-erald, since 2000 the company has op-erated a multiple-year contract to col-lect, package, transport, and dispose of hazardous waste and used oil generated by the US Air Force, Army, and Coast Guard in Alaska. Since the contract began, the company reports that it has shipped over 30 million pounds of haz-ardous waste from various locations in the state to EPA-approved disposal fa-cilities in the Lower 48 without incident.

Although most of the work the com-pany does is on the road system, the company also does signifi cant work on the North Slope and in rural Alaska.

Emerald does contractual site-clean-up of spills, but it also acts as partners with companies that need regular cleanup or disposal services to keep their business running smoothly.

Meeting Industrial NeedsIndustrial services are an important part of the company’s business. Tank cleaning, lagoon dredging and clean-ing, and high pressure water blast cleaning are all key service off erings in this business line.

Emerald has worked since 2004 with Flint Hills Resources Alaska LLC at the company’s North Pole refi nery to pro-vide vacuum truck services, tank clea-nout, and spill response.

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manager, says an Emerald Alaska vac-uum truck is typically on site at Flint Hills to help safely transfer hydro-carbons, water, or other liquids from point to point in the refi nery. Emerald is one of the company’s primary points of contact for an environmental inci-dent, he says.

As Flint Hills works through its tran-sition from a refi nery to a terminal, Horst says additional Emerald employ-ees are on site to help decommission equipment and make the transition.

“Th e thing I feel they off er is good equipment and the ability to respond and meet our needs,” Horst says. “Th eir reliability and their availability has been what has kept us with them over the years.”

James Bateman, safety and environ-mental manager at Vigor Industrial, a ship repair and manufacturing compa-ny located in Ketchikan, says his com-pany relies on Emerald to transport hazardous waste and used oil to recy-cling and disposal facilities out of state.

Bateman says his company has been using Emerald for used oil shipping for a while, but he recently expanded the partnership to include other waste fl uids aft er being impressed with Emer-ald’s customer service.

Vigor repairs and maintains a range of vessels, from fi shing vessels to Alas-ka Marine Highway ferries. Dealing with used oil and hazardous materials on an island can be problematic—dis-posal at the local landfi ll is not an op-tion. Waste must be packaged up and shipped through Canadian waters to Seattle, with documentation outlining what materials are being shipped. Th e process can be complex, he says, but Emerald provides effi cient and timely service.

“Everything is done properly the fi rst time,” he says. “Th ey have good commu-nication and they are always accessible.”

Alaska-Made Emission Reducer

In January, Emerald became the fi rst Alaskan company to manufacture DEF (diesel exhaust fl uid), a chemical solution that is injected into the exhaust stream of diesel vehicles to break down environ-mentally harmful nitrous oxide emis-sions into harmless nitrogen and water.

Th e market for DEF is growing; ac-

cording to the federal US Environmen-tal Protection Agency, all on-highway diesel engines made since 2010 must meet new emissions standards. Install-ing a DEF system is the primary way companies are meeting the new stan-dards. Off -highway vehicles must meet the new standards by 2014, diesels used in the rail industry will do so by 2015, and marine diesel engines will meet the new standards by 2016.

A 2012 study by Integer Research es-timates that by 2018, North America will be using 650 million gallons of DEF per year, more than triple the DEF use projected for 2013.

“Every new diesel powered truck has this system in it. Every new diesel pow-ered school bus has this system in it. We’re seeing more and more new diesel engines being introduced and every one of those new vehicles that come out have, or needs to have, this product in its emis-sions control system,” Nielsen says.

DEF usage in vehicles varies, but it typically runs between 2 and 3 percent of fuel consumption. So if a semi-truck driver puts 100 gallons in the fuel tanks, he or she will likely have to put two or three gallons in the separate DEF tank.

John Cooney, Emerald Alaska’s chemical process engineer and proj-ect manager for its DEF operations, approached the company president, Hillis, in January 2013 to begin discus-sions to consider developing a market-ing plan for the production of diesel exhaust fl uids at Emerald Alaska. By December 2013 the company was cer-tifi ed through the American Petroleum Institute to produce DEF, which it does at its Palmer facility.

In keeping with the company’s fo-cus on recycling, Cooney made use of a large stainless steel mixing tank that used to be part of now-defunct Mata-nuska Creamery’s processing line. Cooney says he attended an auction of the creamery’s equipment before the DEF plan was solidifi ed, but knew he would be able to make use of the tank.

“I wanted it for this [production line], but I wasn’t sure what I was going to do with it,” he says.

He says the tank was the foundation of his production line. He built every-thing else around it.

Nielsen says the tank is the star of the production line—ultra pure urea and wa-ter is mixed in it, then stored and distrib-

The Arcti cBlu diesel exhaust fl uid facility in Palmer. The silver tank is from the old Matanuska Maid dairy.Photo courtesy of Emerald Alaska

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www.akbizmag.com August 2014 | Alaska Business Monthly 71

Rindi White is a freelance journalist living in Palmer.

uted in plastic tanks, totes, and drums. “Th e moral of the story is, we are

manufacturing a brand new product for the Alaska market, using tanks that were from the Matanuska Creamery. It falls right in line with what we do: fi nd-ing value in reuse and recycling and, in this case, repurposing some very nice equipment,” Nielsen says.

Planning for Likely GrowthCooney says the company has already begun planning for growth with the installation of two ten thousand-gallon storage tanks to compliment his exist-ing capacity. He estimates his produc-tion will be increasing dramatically over the next several years, especially as the requirements for low emissions kick in for marine diesel engines.

“It could grow exponentially,” he says.Emerald retooled its Palmer site to

accommodate the manufacturing line and added two employees to focus on making the product. It doesn’t take a lot of extra space, so it didn’t require a new building or eliminating any existing equipment at the site, he says. But if the projected growth happens, he says the company could reconfi gure its property to make room.

“We could reconfi gure and continue to manufacture in the Mat-Su. It’s the best location of all our locations,” Cooney says.

ArcticBlu is currently available at trucking maintenance and supply stores, but Cooney says it will soon be more available at fueling stations.

And like the Alaska Grown “fresher by far” motto, Nielsen says ArcticBlu has an advantage over imported DEF. Th e product typically has a two-year shelf life, so locally produced DEF will last longer.

“Emerald Alaska off ers sustainability for a greener tomorrow,” he says.

Perhaps due in part to the company’s ability to make DEF in-state at a lower cost than importing, Nielsen says Em-erald was recently awarded a contract to supply DEF to the whole fl eet of Mu-nicipality of Anchorage vehicles—from fi re trucks and PeopleMover buses to utility trucks and heavy equipment. R

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special section Environmental Services

NPR-A Legacy Wells Targeted for Cleanup NPR-A Legacy Wells Targeted for Cleanup NPR-A Legacy Wells Targeted for Cleanup NPR-A Legacy Wells Targeted for Cleanup NPR-A Legacy Wells Targeted for Cleanup NPR-A Legacy Wells Targeted for Cleanup

This summer the Bureau of Land Management (BLM) is targeting surface cleanup of high priority

legacy wells in the National Petroleum Reserve-Alaska (NPR-A), with the major-ity of the remediation work to be contract-ed for winter. Of these 136 abandoned exploratory and scientifi c wells drilled by the federal government between 1944 and 1982, only 16 have been properly plugged and remediated to Alaska standards.

BLM became responsible for manag-ing the NPR-A in 1976 and in 1982 inher-

ited the responsibility to assess, plug, and clean up the abandoned wells. Today 18 wells are still being used by US Geologi-cal Survey for monitoring climate change. Some of the remaining wells are in vari-ous conditions of non-compliance with state law and require BLM remediation.

Cathy Foerster, Commissioner for the Alaska Oil and Gas Conservation Com-mission (AOGCC), has been working to get BLM to take responsibility for the cleanup since joining AOGCC in 2005. BLM told Foerster the agency had remediated the

worst of the wells and had no money and no plans to do anything further.

“I pointed out to them that the wells were in violation of several Alaska reg-ulations—and probably just as many federal regulations,” Foerster says. “Th e then-coordinator told me that since we were both regulatory bodies, the AOGCC shouldn’t hold the BLM to the same standards we hold industry to. My response was, if we held them [BLM] to a diff erent standard, it should be a higher one.

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Barrow

Atqasuk

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Tunalik

Meade

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Peard

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South Meade

Topagoruk

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North Inigok

East Teshekpuk

Cape Halkett

W.T. Foran / Livehorse

J.W. DaltonDrew Point

North Simpson

SimpsonKuyanak

West DeaseTulageak

Fish CreekWest Fish Creek

South Harrison

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Atigaru

North Kalikpik

East Simpson #1East Simpson #2Simpson Cores 13-15, 26-31

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Sentinel Hill

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Map 1: NPRA Legacy Well Location Map

Scale 1:1,800,000

BLM Map of NPR-A legacy wells.

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Funding for BLM resulted in strategic planBy Margaret Sharpe

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www.akbizmag.com August 2014 | Alaska Business Monthly 73

“What most surprised me about the issue were the federal government’s cav-alier attitude and hypocrisy,” Foerster says. “Th ey turned their backs on wells leaking hydrocarbon liquids and gases and on sites littered with all kinds of hazardous and non-hazardous debris. Meanwhile they took steps to prohibit responsible oil and gas companies from developing any of ANWR and most of the NPR-A to ‘protect’ those areas from exactly the sort of thing the government has done and is allowing to continue in exactly the same areas.” Excuses given to Foerster ranged from “it’s too expen-sive” to “they’re in the middle of no-where and not hurting anyone.”

Raising AwarenessRealizing that there was no way to get BLM to take responsibility for the clean-up, Foerster decided to put the issue up for public scrutiny by taking it to the Alaska State Legislature, crossing paths with Representative Charisse Millett. “I wanted to know how to help BLM,” Mil-lett says. “Cathy thought a resolution to point out the problem would be the best approach. Because Senator Murkowski’s offi ce was also involved, the three of us wrote up a resolution raising awareness of the wells, and it passed unanimously.”

“Alaskans, myself included, have known about the legacy wells since the 1980s,” US Senator Lisa Murkowski says. “Th e last exploratory well the federal government actually drilled in the NPR-A was in 1981, and since then they’ve properly plugged 16 of 136 wells… If it were a private operator, and not the federal government, that was responsible for these abandoned wells, they’d owe the state of Alaska millions of dollars in environmental fi nes. It’s disappointing. It’s unacceptable.”

Millett carried two resolutions in 2012 and 2013, respectively, urging BLM to properly plug the legacy wells as soon as possible in order to protect the environment in the Arctic region. Th e 2013 resolution further urged BLM to open new areas of the NPR-A for envi-ronmentally responsible oil and gas de-velopment. In 2013, the resolution also replaced the term “legacy” with “trav-esty” to make it clear nothing about the wells qualifi es them for historic site designation and to prevent any miscon-ception that the wells were harmless.

Umiat #7 NPR-A legacy well during plug and abandonment work in 2012 winter. Inset shows the marker plate identi fying the well.Photos courtesy of BLM

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74 Alaska Business Monthly | August 2014 www.akbizmag.com

At the urging of Murkowski, a full committee hearing was called by the US Senate Energy and Natural Resourc-es Committee, of which she is a rank-ing member. Millett and Foerster both testifi ed. “We brought pictures of some of the wells and core wells from the sites—trash, barrels, piping, the worst of the worst,” Millett says. “Th e travesty is that folks in the North Slope live in proximity to these wells.”

Aft er the energy hearing, AOGCC and BLM began coordinating and cat-egorizing the wells to get agreement on how to move forward. Th e result was BLM’s 2013 Legacy Well Summary Re-port, which took all existing informa-tion from industry and other publica-tions and combined it to rank each site according to specifi c criteria.

“Th at hearing proved to be the crucial step in putting the spotlight back on these abandoned legacy wells and put-ting us on the path toward real resolu-tion,” Murkowski says. “Representative Millett and Cathy Foerster have been championing the legacy well issue for a long time. Th ey were both instrumental in keeping it on the radar at home in Alaska, and I was able to do the same here in Washington.”

Funding MechanismAt the state level, BLM has planned potential timeframes to approach the cleanup, but several factors made even starting a path extremely diffi cult: the remoteness of the sites, procuring the necessary equipment and proper staff with expertise to plug wells or perform site remediation—oft en in competition with industry—and the funding.

“Legacy wells have been a priority for us for quite some time,” says Erin Curtis, public aff airs chief at BLM in Alaska. “It’s a matter of having only a certain amount of funding provided to us per year to clean up. Th e good news is that Senator Murkowski and Congress were able to fi nd a much larger funding stream—a big chunk—that will allow us to make serious headway in a much quicker time-frame. It’s always been a priority for us. We’re glad that we have the funding now so that we can go out and make a big dif-ference in a much shorter time.”

Robert Brumbaugh, BLM Geolo-gist, elaborated by adding, “In the past, we’ve only been given money for emer-

gency-type funding for a situation. Th is is fi rst time that we’ve really had a large dollar amount to plan for fi ve years out. So we are going to see a lot of headway with this funding. Th is will be the big-gest legacy well eff ort ever.”

Th at “big chunk” came last year when Murkowski included a $50 mil-lion rider in the Responsible Helium Administration and Stewardship Act. “We had been looking for ways to come up with the funding BLM said they were lacking—that was the excuse they were giving Alaskans as to why those legacy wells weren’t being addressed,” Murkowski says. “Th e opportunity to include a legacy well funding mecha-nism within the Helium Act was an idea I had and, thankfully, was able to see through. My hope is that the fund-ing takes away any excuse BLM had for not cleaning up the wells.”

Strategic PlanInfused with the funding and inspired by Murkowski’s creative thinking to ob-tain it, BLM developed their 2013 Stra-tegic Plan from the 2013 Legacy Well Summary Report; the Strategic Plan is the basis of this summer’s cleanup ap-proach. “Th e eff ort that we put forth in 2013 was probably the most all-encom-passing of anything that we’ve done to date for legacy wells. Th ere’s a lot of data that went into those [two reports],” Brumbaugh says. Th e Strategic Plan as-sesses the surface and subsurface risks, as well as risks to public health, safety, and the environment, and identifi es the highest priority wells in need of action.

“We plan to initiate our eff ort with the highest priority wells, clustering with other nearby wells to maximize our spending dollars,” Brumbaugh says. “We have three primary clusters:

the Umiat cluster that includes six wells, the Barrow cluster that includes seven wells, and a Simpson Peninsula cluster of seven wells. Assuming we take care of those clusters fi rst, we will have twenty wells that will be handled this summer.” BLM will also coordinate with the North Slope Borough to assess opportunities for equipment sharing to further reduce costs.

Th e BLM is in the process of putting together an acquisition team to deter-mine the best approach to streamline the cleanup process. For this summer, BLM has three wells with high surface risk targeted for cleanup. “One is the poster child of all legacy wells,” Brum-baugh says. “Simpson core test #26. It’s an oil seep with some drums. We will remove the surface debris and conduct sampling at Simpson core test #26, #30, and #30a. All three wells are within a mile of each other.” Due to the sensi-tivity of the tundra, the ideal time for subsurface cleanup work is during win-ter using ice roads. Th e BLM will coor-dinate with the North Slope Borough to assess opportunities for equipment sharing to reduce costs.

“Completing the strategic plan has given us the opportunity to really think through how best to tackle these [sites] in as effi cient a path as possible given their remoteness and the unique situations at each well,” Curtis says. “Folks like Rob [Brumbaugh] were able to prioritize, working hand in hand with the state of Alaska, making sure that our priorities were synced up as much as possible and then setting the path forward. I think it’s all going to be good news.” R

Margaret Sharpe writes from Palmer.

Umiat #7 NPR-A legacy well sti cking up from the tundra before it was plugged in 2012.

BLM

pho

to

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www.akbizmag.com August 2014 | Alaska Business Monthly 75

special sectionEnvironmental Services

Mitigating Mitigating Mitigating Mitigating Mitigating Mitigating Contamination on Contamination on Contamination on Alaska Native LandsAlaska Native LandsAlaska Native LandsAlaska Native LandsAlaska Native LandsAlaska Native Lands

The modern history of Alaska is one of massive transfers of land from one government entity to another.

Prior to statehood, the federal govern-ment owned nearly all the land in Alaska. In 1959, the new state of Alaska got the right to select 104 million acres. As part of the 1971 Alaska Native Claims Settlement Act, Alaska Natives were granted title to 44 million acres—and about $1 billion—in return for relinquishing aboriginal rights to their land in order to permit con-struction of the trans-Alaska oil pipeline.

Th e newly formed Native corporations made some of their selections based on the cultural or subsistence importance of the land, and they chose other prop-

erties because of their potential for eco-nomic development. But some of that land was contaminated by chemicals and debris from facilities once used by the federal government.

During World War II and the Cold War, the US military had a heavy presence in Alaska. Besides at front line combat ar-eas in the western Aleutians, the then-territory was peppered with hundreds of sites, such as giant highway construction “mancamps,” heavily used airports, fuel

depots, and defensive gun emplacements along the Alaska coast. Left behind by the military were fuel-soaked land, dilapidat-ed quonset huts, untold numbers of spent oil drums, and other debris.

In Cold War Alaska, White Alice com-munication sites relayed signals from Distant Early Warning defense sites to the Alaskan Air Command. In addition to leaving a legacy of debris and petroleum leaks and spills, Cold War defense sites uti-lized electronic equipment that contained

Hundreds of sites, very litt le funding to get work doneBy Will Swagel

Above: A helicopter transports a six-passenger vehicle on Tanaga Island,

the site of a $20 million FUDS cleanup.

Right: The base camp at Tanaga Island on a rare sunny day.

Photos courtesy of US Army Corps of Engineers-Alaska District

Page 76: Alaska Business Monthly August 2014

76 Alaska Business Monthly | August 2014 www.akbizmag.com

polychlorinated biphenyls (PCBs)—later found to be a potential carcinogen.

But the military was in no way the only polluter. Facilities of the Federal Aviation Administration, the Bureau of Indian Aff airs, and the US Public Health Service were among the raft of govern-ment facilities built well before today’s environmental awareness. Th ese fa-cilities and properties may still contain contamination for years aft er they have last been used. Privately-owned mines have also contributed to the problem.

Oil Spill LegacyAnother important year in this story is 1989—when the reality of dealing with the oil-soaked beaches of Prince Wil-liam Sound prompted Alaska environ-mental offi cials to begin considering state regulations for cleaning up con-taminated sites.

Today, Alaska Department of Envi-ronmental Conservation (ADEC) regu-lations are used as the standard by both federal and state offi cials when cleaning up contaminated sites. But there were no specifi c state cleanup regulations before the Exxon Valdez oil spill, says ADEC Contaminated Sites Program Manager Jennifer Roberts.

“Th e [ADEC] Contaminated Sites Pro-gram grew out of the response to the 1989 oil spill,” Roberts says. “My program was formed in 1992. We didn’t have contami-nated sites regulations until 1999.”

Th e federal government has been clean-ing up contaminated sites in Alaska since before the 1980s, and the state regulations broadly mirror the federal standards.

Roberts says the work being pro-posed at the Bureau of Indian Aff airs/

Indian Health Service compound in Kotzebue presents a good example of the complexity of an environmental investigation and cleanup. Th e Kotze-bue site is only one of a number of BIA schools that ADEC is recommending be investigated for contaminants.

Roberts says the Maniilaq Associa-tion would like to build on the site, but before that can happen there needs to be an investigation and possible clean-up. ADEC estimates that the soil is con-taminated with between twenty thou-sand to forty thousand gallons of fuel.

“Ultimately what we want is to have these [contaminated] sites be investi-gated and for us to be able to say that these sites are not causing damage to public health and subsistence foods,” she says. “We are either actively man-aging [sites] because we have put insti-tutional controls on, or we have actively cleaned them up and they are safe.”

Formerly Used Defense SitesTh ere are more than fi ve hundred sites in Alaska where the US Department of De-fense (DOD) owned, leased, or used prop-

erty that was transferred out of DOD con-trol before October 17, 1986. Th is qualifi es the properties for the Formerly Used De-fense Sites (FUDS) program, a federal program which funds environmental cleanups. Th e implementation date cor-responds with the Superfund Amend-ments Re-Authorization Act, which made changes to the federal Superfund act. Th e environmental cleanup under FUDS is expected to continue beyond 2020 with more than $1 billion in cleanup work yet to be completed.

Th e US Army Corps of Engineers ad-ministers the FUDS program for former US Navy, Air Force, and Army sites.

Of the more than 500 eligible sites in Alaska, 137 have been found to contain identifi ed hazards, says Ken Andra-schko, FUDS program manager with the Corps of Engineers in Alaska. Th ese hazards may be petroleum products, PCBs, lead, demolition or other debris, and, in some cases, munitions.

Andraschko says 67 of the 137 priori-tized sites have been cleaned up—about halfway through the list. Between 1984 and 2014, the Department of Defense has invested $813 million in environmental restoration at these Alaska FUDS sites.

Two examples of FUDS sites are the Umiat test oil well on the North Slope and a former Air Force station on St. Lawrence Island.

“We have spent the last four or fi ve years pulling out thousands of tons of PCB-contaminated soil and petroleum-impacted soil,” Andraschko says.

And there may be more work still to do.“We clean up to Alaska Department of

Environmental Conservation standards,” he says. “We try to clean things up to an unrestricted use, unlimited-exposure risk scenario. Where that is technically not practical, we have to monitor and continue

NPR-A legacy well

Umiat #9 PCB cleanup.

© Alaska DEC

Asphalt released from drums on a hill behind a roadhouse.© Alaska DEC

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www.akbizmag.com August 2014 | Alaska Business Monthly 77

monitoring until we achieve those levels.”Andraschko says ADEC regulations

can be more stringent than federal standards, but they usually match.

Poorly Funded MitigationSince 1993, Congress has appropriated a separate $8 million to $12 million per year to fund the Native American Lands Environmental Mitigation Program (NALEMP) and to be used to clean up Native lands across the United States that were contaminated by the military. Annually, about half of that money, $4 million to $6 million, comes to Alaska.

“Th e program is meant to address en-

vironmental impacts that the DOD left on Indian lands that aren’t being addressed by other programs,” says Andrea Elconin, the US Army Corps of Engineers program manager for NALEMP. Lands transferred from DOD prior to the 1986 FUDS dead-line may be eligible, for instance.

Elconin explains that NALEMP of-fers Native tribes the opportunity to enter into a cooperative agreement with DOD for cleanups. Elconin’s offi ce ad-ministers the program for the Secretary of Defense. DOD inspects the property and, if the property is selected, DOD supplies the funds. Th e actual cleanup

is accomplished by the tribe themselves or their contractors.

While the FUDS program tends to pri-oritize projects partly on the basis of popu-lation, NALEMP can address more rural concerns such as the eff ects on subsistence.

Under FUDS, “risks in highly-popu-lated areas rise to the top,” Elconin says, “but under NALEMP they don’t priori-tize the high-population areas as much, so that it can address problems in rural areas where population is low.”

Eight cooperative agreements were signed last summer, Elconin says, and she expects about the same number to

Warning sign and fence.

© Alaska DEC

Cape Pole LTF APC cleanup.© Alaska DEC

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78 Alaska Business Monthly | August 2014 www.akbizmag.com

be signed before the end of the 2014 fiscal year in September. Overall, NA-LEMP administers twenty-five to thirty different cooperative agreements.

The Native Village of Gakona, the ANC-SA village corporation, has been work-ing with NALEMP for about five years to clean up an Air Force radio relay site, or RSS, which operated from 1960 to 1983.

“NALEMP funded the cleanup of twen-ty-eight fifty-five-gallon drum tops, five grounding posts, one hundred pieces of metal strapping, one Army truck tailgate, and one rusted metal stove, among other debris from 5.62 acres of Ahtna [Corpora-tion] land adjacent to the RRS site. In ad-dition, analysis of samples collected and tested confirmed earlier findings that nei-ther soil nor groundwater on affected Aht-na land were contaminated by petroleum products,” according to a US Army Corps of Engineers report, which further states that the removal and disposal of the debris has made it possible for tribal members to resume subsistence hunting and gathering activities in the area without risk of injury.

Data Control Greg DuBois is a geologist and manager for APC Services LLC, an Alaska Na-tive-owned company and a subsidiary of the Alaska Peninsula Corporation. Their company offers environmental consulting services, including the re-mediation of contaminated sites.

DuBois described work APC Services has performed for the Native Village of Port Heiden at another former radio re-lay site, which has contamination from PCBs and petroleum. The Port Heiden Tribe has a cooperative agreement with the Corps of Engineers.

The mitigation process involves set-

A White Alice Communications Systems tower at Northeast Cape on St. Lawrence

Island tumbles down during

cleanup of the former Air Force site in July 2003.

Photo courtesy of U.S. Army Corps of

Engineers-Alaska District

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Page 79: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 79

ting out a grid over the suspect property, and then taking samples from each grid. Soil containing too high a presence of PCBs must be excavated and temporari-ly stored in lined stockpiles, and then the ground is tested again until the grid area is below the cleanup level. Since there are no permitted hazardous waste disposal facilities in Alaska, the contaminated soil must be barged to the Lower 48 for disposal in a permitted landfill.

DuBois says diesel-contaminated soil can sometimes be treated by a process known as “land farming.” The contami-nated soil is spread out a foot or two thick and then turned over bi-weekly or so. The tilling allows oxygen to reach microbes in the soil which consume the contaminants.

APC Services was formed in 2006 in order to perform environmental work in connection with the Pebble Mine Project, says DuBois. Alaska Peninsula Corporation owns land adjacent to the mine project claim block.

DuBois says APC Services has per-formed important water quality and fisheries baseline studies and that Alaska Peninsula Corporation co-owns the water quality data that is collected within Alaska Peninsula Corporation lands. Baseline studies set the “starting point” for use by officials in granting mine permits and for gauging future potential effects on the environment.

“[Co-owning the water quality data on Alaska Peninsula Corporation land] pro-tects the parent corporation,” DuBois says. “If there is a mine, the parent corporation has the data related to their own land and waterways. It gives the board some confi-dence, and it helps the shareholders know their parent corporation has the informa-tion to protect their resources.”

Devil of a ProblemMaver Carey is the president and CEO of the Kuskokwim Corporation, a village corporation composed of ten villages lo-cated along the upper Kuskokwim River. She is also the founder and chairman of the Alaska Native Village CEO Associa-tion, which provides advocacy and train-ing for Alaska Native village corporations.

Carey has been testifying before vari-ous state officials, including Governor Sean Parnell, urging them to help Native tribes and corporations deal with con-taminated lands which have or will be conveyed to Native groups. She support-

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Page 80: Alaska Business Monthly August 2014

80 Alaska Business Monthly | August 2014 www.akbizmag.com

Author and journalist Will Swagel writes from Sitka.

ed the passage of state resolution HJR 15, which asks the state to help Native groups persuade the federal government to act.

“It’s going to take a lot of work to get all those sites cleaned up, so we asked the state to help us prioritize the ten most contaminated sites,” Carey says. “So, when we go back to [Washington] DC we can go with a plan of action.”

In her own area, the Red Devil Mine—an old, unused mercury and cinnabar mine—is leaking contaminants into the Kuskokwim River. Th e problem is so acute, Carey says, that Alaska Depart-ment of Fish and Game offi cials issued guidelines restricting the consumption of fi sh harvested in the middle Kuskokwim. “Tests showed elevated levels of mercury in pike, lush, Dolly Varden, Arctic gray-ling, and other subsistence fi sh,” she says.

Th e Bureau of Land Management has already spent $10 million in cleanup ef-forts, and the problems persist, Carey says. Th ere are liability issues associ-ated with the property, Carey says. An eff ort to get the site listed as a Super-fund site failed.

“We have not been conveyed the land at Red Devil because it is contaminated and have asked that the land be cleaned up fi rst,” Carey says. “We’re one of the lucky ones. Th ere were several other cor-porations who were conveyed land that they didn’t know was contaminated.” R

Woodpecker Cove LTF APC cleanup well installati on.

© Alaska DEC

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Page 81: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 81

AKCompany Top Executive Estab. Empls. Services

ENVIRONMENTAL SERVICESCompany Top Executive Estab.

AKEmpls. Services

3M Alaska11151 Calaska Cir.Anchorage, AK 99515Phone: 907-522-5200 Fax: 907-522-1645

Julie Morman, Gen. Mgr.

[email protected]

1976 15 3M manufactures a wide range of products covering many markets in Alaska. In the areaof natural resources, we provide products and services which support the oil/gas andmining industries in worker safety, electrical and communications, welding protection,fire and corrosion protection.

ABR, Inc.PO Box 80410Fairbanks, AK 99708Phone: 907-455-6777 Fax: 907-455-6781

Stephen Murphy, President

[email protected]

1976 63 Environmental research and services, including marine and terrestrial wildlife, fisheriesand aquatic science, landscape ecology and vegetation science, wetland mapping andpermitting, re-vegetation and ecological restoration, endangered species expertise,NEPA documentation, and GIS services.

Acuren USA600 E. 57th Pl., Suite BAnchorage, AK 99518Phone: 907-569-5000 Fax: 907-569-5005

Dennis Lee, Mng. Dir.

acuren.com

2002 240 Materials engineering, nondestructive examination and integrity management for the oiland gas, power, mining, transportation and construction industries.

AECOM1835 S. Bragaw St.Anchorage, AK 99508-3439Phone: 907-561-5700 Fax: 907-273-4555

Mark Hodges, Operations Manager

[email protected]

1977 16 Full services in environmental and energy development, environmental compliancemonitoring and permitting for air, water, soils and solid waste, planning and integratedsite closure.

Agnew::Beck Consulting441 W. Fifth Ave., Suite 202Anchorage, AK 99501Phone: 907-222-5424 Fax: 907-222-5426

Thea Agnew Bemben, Mng. Principal

[email protected]

2002 22 Energy planning, energy efficiency, energy conservation, energy policy, environmentalassessment, energy supply, housing, FERC licensing, hydroelectric, sustainablerecreation, utility assessment, impact studies, sustainable communities, andtransportation choices.

Alaska Analytical Laboratory1956 Richardson Hwy.North Pole, AK 99705Phone: 907-488-1271 Fax: 907-488-0772

Stefan Mack, PE/Pres.

[email protected]

2008 3 ADEC certified environmental testing laboratory. Soil and water analysis for methods8021B, AK101, AK102 and AK103.

Alaska Chadux Corporation2347 Azurite Ct.Anchorage, AK 99507Phone: 907-348-2365 Fax: 907-348-2330

Matthew Melton, General Manager

chadux.com

1993 14 Alaska Chadux Corporation (Chadux) is a member-funded, 501(c)(4) not-for-profit oilspill response organization headquartered in Anchorage, Alaska.

Alaska Clean Seas4720 Business Park Blvd., Suite G42Anchorage, AK 99503Phone: 907-743-8989 Fax: 907-743-8988

Barkley Lloyd, Gen. Mgr.

[email protected]

1979 93 We protect the environment by providing response services to the Alaska North Slopecrude oil explorers and producers and the first 167 miles of the Trans Alaska PipelineSystem in accordance with oil spill response agreements and plans.

Alaska Soil Recycling1040 O'Malley Rd.Anchorage, AK 99515Phone: 907-348-6700 Fax: 907-344-2844

Brad Quade, Operations Mgr.

anchsand.com

1988 15 Remediation of petroleum-impacted soils by thermal desorption. Our process is capableof off-site and on-site remediation projects. Results are quick and guaranteed. Soils arerecycled into beneficial products after treatment; thereby complying with green andsustainable recycling (GSR) practices.

Alaska Waste6301 Rosewood St.Anchorage, AK 99518Phone: 907-563-3717 Fax: 907-273-2797

Craig Gales, Sales Mgr.

[email protected]

2003 225 Providing residential and commercial refuse and recycling services. Offering curbsideco-mingled recycling to households in Anchorage and Eagle River, office and dumpsterrecycling to commercial users. The roll-off containers can be used on industrial projectsfor C&D recycling.

Analytica Group4307 Arctic Blvd.Anchorage, AK 99503Phone: 907-375-8977 Fax: 907-258-6634

Elizabeth Rensch, Business Dev. Mgr.

[email protected]

1991 20 Analytica is the largest state certified laboratory in Alaska, specializing in drinking water,wastewater and general water quality testing. Locations in Anchorage, Fairbanks, andWasilla, Alaska. Analytica is a wholly owned subsidiary of The Aleut Corporation.www.aleutcorp.com.

Anchorage Soil & Water Conserv. Dist.PO Box 110309Anchorage, AK 99511-0309Phone: 907-677-7645 Fax: 907-345-5012

Bret Burroughs, Chair

[email protected]

1997 2 Anchorage Woodlot, property owner and development support and services, BMP anddevelopment planning, confidential assistance to property owners, land managers, anddevelopment industry.

APC Services LLC4241 B St., Suite 100Anchorage, AK 99503Phone: 907-677-9451 Fax: 907-677-9452

Ralph Angasan Sr., Pres.

[email protected]

2007 6 Environmental consulting; environmental assessments; contaminated land evaluation &remediation, geochemistry, baseline environmental studies; mining and explorationservices.

ARCADIS880 H St., Suite 101Anchorage, AK 99501Phone: 907-276-8095 Fax: 907-276-8609

Roe Sturgulewski, AK Ops Leader

[email protected]

1994 (inAlaska)

30 ARCADIS is a leading global environmental, remediation and built asset design andconsultancy firm working in partnership with our clients to deliver exceptional andsustainable outcomes through environmental and remediation services, design,engineering, project and construction mangement

ARCTOS LLC130 Int'l Airport Rd., Suite RAnchorage, AK 99518Phone: 907-632-1006 Fax: 866-532-3915

Kirsten Ballard, CEO

arctosak.com

2007 8 ODPCP plans, oil spill prevention and response planning services. API certified tank andpiping inspections, QA/QC, incident management team training, HSE programs, imagingand mapping. Compliance assistance with state, federal regulations and responseplanning for oil and gas industry in Alaska.

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ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S

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AKCompany Top Executive Estab. Empls. Services

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Company Top Executive Estab.AK

Empls. Services

Argon, Inc.6618 Lakeway Dr.Anchorage, AK 99502Phone: 907-223-0393 Fax: 111-111-1111

Jane Whitsett, President

[email protected]

2008 3 Argon, Inc. is a well-respected small, woman-owned environmental consulting business.A wide range of clients in Alaska utilize our core services of large project management,field sample and data management, quality assurance and control, data validation, andchemistry consultation.

Arrowhead Environmental Services Inc.PO Box 872707Wasilla, AK 99687Phone: 907-376-8848 Fax: 907-376-8876

Terry Webb, Pres./CEO

[email protected]

1999 8 Environmental remediation, asbestos/lead abatement, PCBs, mercury and demolition,civil, renewable energy systems. Notable clients: U.S. Air Force 3rd Contracting, MWH,Roger Hickel Contracting, North Pacific Erectors and CH2MHill.

B.C. Excavating LLC2251 Cinnabar Lp.Anchorage, AK 99507Phone: 907-344-4490 Fax: 907-344-4492

Gordon Bartel, Pres.

[email protected]

1982 40 Remediation services, soil farming, site cleanup for PCB, TCE, diesel/gasolinecontamination, etc.

Bell Tech, Inc.PO Box 3467Valdez, AK 99686Phone: 800-537-6949 Fax: 907-835-4535

Randy Bell, CEO

Randybell@belltech,orgbelltechconsultants.com

1990 16 We specialize in ecological management as it relates to the recovery & restoration ofspill response activities. With over 24 years of experience, Bell Tech has developedsuccessful procedures addressing the recovery of contamination from any surfaceincluding vessels, shoreline & frozen tundra.

Blue Skies Solutions LLC3312 Robin St.Anchorage, AK 99504Phone: 907-230-4372

Michael Knapp, Principal

[email protected]

2003 3 Blue Skies specializes in geographic information systems (GIS) training and consulting.Our instructor is an Esri Certified Trainer and also a Certified Technical Trainer (CTT+).We work with state, federal, local, non-profit, and private companies; helping them tocreate and manage their GIS data.

Brice Environmental Services Corp.PO Box 73520Fairbanks, AK 99707Phone: 907-456-1955 Fax: 907-452-1067

Craig Jones, Pres.

[email protected]

1991 10-30 Brice Environmental is an 8(a) and DBE certified Native owned small businessspecializing in remediation of heavy metal contaminated soils, remote site demolition,environmental construction and remediation. Project history throughout Alaska and theLower 48 states and Hawaii.

Bristol Engineering Services Corporation111 W. 16th Ave., Third FloorAnchorage, AK 99501Phone: 800-563-0013 Fax: 907-563-6713

Traviw Woods, Pres./CEO

www.bristol-companies.com

1994 18 Civil engineering, permitting and planning; total project management encompassingplanning, design and construction. facebook.com/BristolAllianceOfCompanies

Bristol Environmental Remediation Svcs.111 W. 16th Ave., Third FloorAnchorage, AK 99501Phone: 907-563-0013 Fax: 907-563-6713

William Burke, CEO

[email protected]

2006 90 Providing environmental consulting, environmental remediation, and wastecharacterization/disposal services to private and public sector. Services includeremediation and cleanup of contaminated sites, as well as preparation of remedial actionplans and reports to support our cleanup projects. 8(a).

CampWater Industries LLC2550 Hayes St./PO Box 309Delta Junction, AK 99737Phone: 907-895-4309

Jon Dufendach, Pres.

[email protected]

2009 2 Design/build portable/ emergency drinking water plants. NSF61- approved models tomeet USEPA drinking water standards available off-the-shelf.

CCI Industrial Services, LLC560 E. 34th Ave., Suite 200Anchorage, AK 99503-4161Phone: 907-258-5755 Fax: 907-770-9452

A. Ben Schoffmann, Pres./CEO

[email protected]

1989 300 Corrosion-under-insulation refurbishment; asbestos and lead surveys and abatement;specialty coatings; sandblasting; tank and vessel cleaning; fire proofing; demolition andhazardous waste removal; operations, maintenance and construction; oil spill response;heat treat services.

Central Environmental, Inc.311 N. SitkaAnchorage, AK 99501Phone: 907-561-0125 Fax: 907-561-0178

Stuart Jacques, Pres.

[email protected]

1983 100 Provides civil/environmental construction services including: contaminated soilshandling, excavation and site restoration, asbestos abatement, lead abatement,hazardous materials abatement, handling, and demolition.

CH2M HILL949 E. 36th Ave., Suite 500Anchorage, AK 99508Phone: 907-762-1500 Fax: 907-762-1600

Terry Bailey, Sr. VP, AK Regional Mgr.

[email protected]/alaska

1946 2,275 Premier Alaskan oil & gas contractor; offering consulting, engineering, procurement,logistics, fabrication, construction, construction management, operations andmaintenance service all under one roof; supporting oil & gas, mining, environmental,water, power, transportation and government.

ChemTrack Alaska, Inc.11711 S. Gambell St.Anchorage, AK 99515Phone: 907-349-2511 Fax: 907-522-3150

Carrie Lindow, Pres.

[email protected]

1973 8-25 Please check out our Statement of Qualifications at chemtrack.net/about_us.htm.

Colville, Inc.Pouch 340012Prudhoe Bay, AK 99734Phone: 907-659-3198 Fax: 907-659-3190

Eric Helzer, Pres./CEO

[email protected]

1981 200 Colville's group of oilfield companies provide a full compliment of Arctic Logisticscapabilities. Our services include fuel, aviation, waste management, transport, industrialsupply and camp services.

Cook Inlet Spill Prevention & ResponsePO Box 7314Nikiski, AK 99635Phone: 907-776-5129 Fax: 907-776-2190

Todd Paxton, Gen. Mgr.

cispri.org

1991 22 Provides oil-spill response services to member companies in the greater Cook Inlet area.Registered with the U.S. Coast Guard, (OSRO) and ADEC (PRAC).

CRW Engineering Group, LLC3940 Arctic Blvd., Suite 300Anchorage, AK 99503Phone: 907-562-3252 Fax: 907-561-2273

D. Michael Rabe, Mng. Principal

[email protected]

1981 62 Engineering, surveying, planning, permitting, and construction management.

Design Alaska, Inc.601 College Rd.Fairbanks, AK 99701Phone: 907-452-1241 Fax: 907-456-6883

Chris Miller, President

[email protected]

1957 55 Design Alaska provides architecture; civil, structural, mechanical, fire protection,electrical, and environmental engineering; landscape architecture; and surveying. Thefirm also offers planning, condition assessments, energy modeling, LEED, constructionadministration and commissioning.

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Company Top Executive Estab.AK

Empls. Services

DOWL HKM4041 B StreetAnchorage, AK 99503Phone: 907-562-2000 Fax: 907-563-3953

Stewart Osgood, President

[email protected]

1962 130 DOWL HKM provides public involvement; land use planning; environmental services andpermitting; civil, geotechnical, transportation, and geotechnical engineering; landscapearchitecture; land surveying; GIS; construction administration; and materials testing, andconstruction inspection.

Eco-Land, LLCPO Box 1444Nome, AK 99762Phone: 907-443-6068 Fax: 907-443-6068

R McClintock, Sr., President/Member

[email protected]

1922 6 Full service land surveying and mapping firm specializing in environmentalinvestigations, remediation and mapping. Featuring 3D laser scanning, coastal/riparianhydrographic surveys and ROV high resolution multi-spectrial aerial photography as wellas full GPS and conventional surveying capability.

EHS - Alaska Inc.11901 Business Blvd., Suite 208Eagle River, AK 99577Phone: 907-694-1383 Fax: 907-694-1382

Robert French, PE,, Principal in Chg.

[email protected]

1986 7 Hazardous building materials identification and project design. Code compliance andplans review. Industrial hygiene and worker safety, health and safety plans, airmonitoring.

Emerald Alaska Inc.425 Outer Springer Lp.Palmer, AK 99645Phone: 907-258-1558 Fax: 907-746-3651

Blake Hillis, Pres.

[email protected]

2002 75 Hazardous/non-hazardous waste disposal, petroleum product recycling, industrialcleaning services, vacuum truck services, emergency spill response, automotive fluidsrecycling and sales, environmentally friendly cleaners/degreasers, site clean-up andremediation. Anchorage/Kenai/Prudhoe/Fairbanks

ENVIRON International Corp.3909 Arctic Blvd., Suite 101Anchorage, AK 99503Phone: 907-563-0515 Fax: 907-563-0520

Laura Noland, Sr. Mgr./Sr. Env. Scnst.

[email protected]

2011 6 Environmental consulting; health sciences; natural resource management services; airquality management; NEPA; ecology and sediment management; environmentalcompliance and permitting; contaminated sites solutions; water resources; sustainability;and green infrastructure.

Environmental Compliance Consultants1500 Post Rd.Anchorage, AK 99501Phone: 907-644-0428 Fax: 907-677-9328

Mark Goodwin, CEO

[email protected]

1999 55 A full-service environmental company dedicated to providing clients with qualityenvironmental services. Experienced in the disciplines of hazardous waste, materialsmanagement, transportation, environmental consulting, assessment, remediation,demolition, recycling of metals, oils and electronics.

Environmental Management, Inc.206 E. Fireweed Ln., Suite 201Anchorage, AK 99503Phone: 907-272-9336 Fax: 907-272-4159

Larry Helgeson, Principal Eng.

[email protected]

1988 12 Environmental & civil engineering, compliance & consulting such as Phase I, Phase II,asbestos mgmt. & design, HUD lead paint activities, UST removals, SWPPPs, SPCCs, &related contamination remediation services & training. A team of dedicated professionalsworking to make Alaska cleaner & safer.

Golder Associates, Inc.2121 Abbott Rd., Suite 100Anchorage, AK 99507Phone: 907-344-6001 Fax: 907-344-6011

Mitchells Richard, Mgr. AK Operations

golder.com

1980 44 Arctic and geotechnical engineering, groundwater resource development, environmentalsciences and remedial investigation.

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Company Top Executive Estab.AK

Empls. Services

Green Star, Inc.333 W. Fourth Ave., Suite 310Anchorage, AK 99501Phone: 907-278-7827 Fax: 907-279-5868

Kim Kovol, Executive Director

[email protected]

1996 3 Green Star, Inc., is a green business certification program that assists, certifies, andrecognizes Alaska businesses that are committed to fully integrating resource efficiencyand environmental leadership initiatives into their business plans and practices.

Hart Crowser310 K St., Suite 243Anchorage, AK 99501Phone: 907-276-7475 Fax: 425-778-9417

Jason Stutes, AK Office Mgr.

[email protected]

1974 2 Providing natural resources; environmental and geotechnical engineering; and hydro-geology support. Includes NEPA services, environmental permitting, baseline surveys(biological and chemical), fisheries, Endangered Species Act compliance, wetlands, andshoreline and in-water restoration.

HDR2525 C St., Suite 305Anchorage, AK 99503Phone: 907-644-2000 Fax: 907-644-2022

Duane Hippe, Sr. VP/PE

[email protected]

1979 140 Engineering services cover civil and structural engineering for transportation, water/wastewater, solid waste, federal, military, and oil & gas infrastructure. Specialty servicesin design-build. Engineering supported by full range of environmental/planning staff, and8,500 HDR employees nationwide.

HMH Consulting LLC200 W. 34th Ave., PMB 253Anchorage, AK 99503Phone: 907-562-8100 Fax: 907-338-0070

Erik Haas, Principal

[email protected]

1997 2 Air quality permitting, compliance support; SPCC Plans, emission-control design,professional training, industrial air-quality compliance evaluations.

Jacobs4300 B St., Suite 600Anchorage, AK 99503Phone: 907-563-3322 Fax: 907-563-3320

Terry Heikkila, Dir. AK Ops

jacobs.com

1947 70 Professional services provider to federal and energy clients. AK services includeenvironmental permitting, compliance, investigation & remediation; energy conservation;logistics; upstream design; feasibility analysis & construction management.

Kakivik Asset Management, LLC560 E. 34th Ave., Suite 200Anchorage, AK 99503-4161Phone: 907-770-9400 Fax: 907-770-9450

A. Ben Schoffmann, Pres./CEO

[email protected]

1999 200 Kakivik is a full service industrial asset integrity management company specializing inNondestructive Testing (NDT), External and Internal Corrosion Investigations, QualityProgram Management and Field Chemical and Corrosion Management includingchemical laboratory and coupon/probe operations.

Lifewater Engineering Company1936 Donald Ave.Fairbanks, AK 99701Phone: 907-458-7024 Fax: 907-458-7025

Bob Tsigonis, Pres./PE

[email protected]

1998 10 Sewage treatment plant and drinking water treatment plants, Commercial andResidential. Specializing in design, permitting, fabrication, training, and operation. Plantsbuilt to work in the most extreme environments and most remote places. Plastic tankfabrication.

Marsh Creek LLC2000 E. 88th Ave.Anchorage, AK 99507Phone: 907-258-0050 Fax: 907-279-5710

Mick McKay, CEO

[email protected]

2004 140 Energy systems, environmental, construction, telecommunications.

Michael Baker Jr., Inc.3900 C St., Suite 900Anchorage, AK 99503Phone: 907-273-1600 Fax: 907-273-1699

Shawn Snisarenko, Alaska OfficeExec./VP

mbakercorp.com

1942 75 Regulatory and permit applications and compliance support; wetlands delineation;Section 10 and 404(b)(1) compliance and evaluation; field hydrological assessments &geotechnical investigations; NEPA documents; public involvement; agency coordination.

Michael L. Foster & Associates, Inc.13135 Old Glenn Hwy., Suite 200Eagle River, AK 99577Phone: 907-696-6200 Fax: 907-696-6202

Michael Foster, PE/Owner

[email protected]

1998 30 Environmental planning documents (EA/EIS), environmental remediation, and full-service A/E firm with design/build, construction management, and general contractingcapabilities.

MWH1835 S. Bragaw St., Suite 350Anchorage, AK 99508Phone: 907-248-8883 Fax: 907-248-8884

Chris Brown, Alaska Reg. Mgr.

[email protected]

1977 30 Water, wastewater, environmental remediation, permitting and power.

New Horizons Telecom, Inc.901 Cope Industrial WayPalmer, AK 99645Phone: 907-761-6000 Fax: 907-761-6001

Nate Morton, CEO

[email protected]

1978 75 Services include program management of remediation designs, surveys, sampling,contamination delineation and environmental remediation.

NORTECH, Inc.2400 College Rd.Fairbanks, AK 99709-3754Phone: 907-452-5688 Fax: 907-452-5694

John Hargesheimer, President

[email protected]

1979 28 A multidisciplined consulting firm with registered engineers and certified industrialhygienists on staff providing environmental, engineering, energy auditing, industrialhygiene, and health and safety professional services throughout Alaska.

North Wind Group7910 King St.Anchorage, AK 99518Phone: 907-277-5488 Fax: 907-277-5422

Greg Razo, CEO

[email protected]

1997 12 Environmental investigation, restoration & remediation; engineering; natural & culturalresources; NEPA services; GIS services; construction; demolition; abatement; wastemngmt.; regulatory support; mine reclamation. We own & operate 2 direct push rigs & aUVOST soil screening system.

Northern Ecological Services211 Morey Ln.Bellingham, WA 98225Phone: 360-592-4267 Fax: 360-592-4267

John Morsell, Principal/Sr. Biologist

[email protected]

1987 0 Fish and aquatic habitat surveys for Pogo and Donlin Creek mine projects. Fish researchand mitigation planning for Bradley Lake, Mahoney Lake and Cooper Lake hydroelectricprojects.

Northern Land Use Research Alaska LLC234 Front St.Fairbanks, AK 99701Phone: 907-474-9684 Fax: 907-474-8370

Burr Neely, Gen. Mgr.

[email protected]

1991 15+ National Historic Preservation Act Sec. 106 assessments; identification, evaluation,mitigation services-prehistoric/historic archaeology, historic architecture, culturallandscapes, and subsistence investigations; documents to satisfy NEPA and permittingrequirements; reg compliance; consultation.

O.E.S.3201 C St., Suite 700Anchorage, AK 99503Phone: 907-562-8738 Fax: 907-562-8751

Pat McCormick, GM

[email protected]

1997 23 A wide range of environmental management and remediation; construction; oilfieldsupport; environmental training, tank and pipeline cleaning, inspection and relatedservices. Experienced working in remote and Arctic regions, O.E.S. is a subsidiary ofOlgoonik Corp.

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Empls. Services

Pacific Environmental Corp. (PENCO)6000 A St.Anchorage, AK 99518Phone: 907-562-5420 Fax: 907-562-5426

Brent Porter, Alaska Reg. Mgr.

[email protected]

1973 150 Pacific Environmental Corporation (PENCO) specializes in land and marine spillresponse, environmental cleanup and remediation, and marine vessel remediation.PENCO's array of environmental services includes supplying teams of highly skilled spillresponse technicians for emergency response.

PDC Inc. Engineers1028 Aurora Dr.Fairbanks, AK 99709Phone: 907-452-1414 Fax: 907-456-2707

Royce Conlon, Pres./Principal

pdceng.com

1975 76 PDC is a 100% employee-owned multi-disciplined engineering firm with over 75employees. We specialize in designing for the ever changing Arctic environment withexpertise in Civil, Electrical, Environmental, Fire Protection, Mechanical & Structuralengineering as well as Land Survey & Planning.

Pollen Environmental, LLC3536 International St.Fairbanks, AK 99701Phone: 907-479-8368 Fax: 907-452-6853

Jerry Pollen, President

pollenenv.com

2009 1 Pollen Environmental, LLC. is an Alaskan owned small business. We are proud to be aminority owned and woman owned enterprise, with analytical laboratories in Fairbanksand Prudhoe Bay. Both laboratories are ADEC certified. The Pollen family and staff haveover 75 years of combined experience.

Restoration Science & Engineering LLC911 W. Eighth Ave., Suite 100Anchorage, AK 99501Phone: 907-278-1023 Fax: 907-277-5718

David Nyman, PE/Principal

restorsci.com

1992 11 Environmental science and engineering firm specializing in environmental engineeringand permitting, environmental remediation and reporting, phase I&II site assessments,waste water engineering, fuel system design and compliance, SPCC plans, SWPPPincluding CGP and MSGP work, project management.

Satori Group1310 E. 66th Ave., Suite 2Anchorage, AK 99518Phone: 907-332-0456 Fax: 907-332-0457

Jill Lucas , Pres.

[email protected]

2001 10 Hazardous materials building surveys, asbestos & lead remediation, whole/interiorbuilding demolition, health & safety training, groundwater services, Phase I & II ESA's.

SGS North America Inc.200 W. Potter Dr.Anchorage, AK 99518-1605Phone: 907-562-2343 Fax: 907-562-0119

Chuck Homestead, Gen. Mgr.

[email protected]

1964 65 Environmental Services: Providing full-service environmental testing since 1964. TheAlaska division has branches in Anchorage and Fairbanks. Extensive experience inDoD, oil industry, NPDES, and mining.

Shannon & Wilson Inc.5430 Fairbanks St., Suite 3Anchorage, AK 99518-1263Phone: 907-561-2120 Fax: 907-561-4483

Stafford Glashan, VP/Anch. Ofc. Mgr.

[email protected]

1974 65 Shannon & Wilson is a nationally renowned engineering & applied earth sciences firmwith offices in Anchorage, Fairbanks & the Lower 48. Our services include geotechnicalanalysis and design; frozen ground engineering; environmental compliance,assessments & remediation; earthquake analysis; etc.

Shannon & Wilson, Inc.2355 Hill Rd.Fairbanks, AK 99709-5326Phone: 907-479-0600 Fax: 907-479-5691

Chris Darrah, Assoc/Fairbanks Ofc.Mgr.

[email protected]

1974 30 Environmental site assessments; soil/water sampling; hazardous materials surveys;regulatory compliance; remediation design; storm water management. Also geotechnicalanalysis/design; frozen ground engineering; earthquake analysis; AASHTO-accreditedtesting lab. Working throughout Alaska since 1974.

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Company Top Executive Estab.AK

Empls. Services

SLR International Corporation2700 Gambell St., Suite 200Anchorage, AK 99503Phone: 907-222-1112 Fax: 907-222-1113

Brian Hoefler, AK Mgr.

[email protected]

2000 81 Air permitting and measurements, acoustics, project permitting, environmentalcompliance, site investigation, remediation, risk assessment and oil spill contingencyplanning

Spill Shield, Inc.2000 W. International Airport Rd, #D-2Anchorage, AK 99502Phone: 907-561-6033 Fax: 907-561-4504

Ken Bauer, Ops & Sales Mgr.

[email protected]

1992 4 Supplier for Smart Ash, Oil Away, Drug Terminator and MediBurn incinerators.Absorbents, water scrubbers, oil spill response kits, Super Sacks, harbor boom, nitrilegloves, MicroBlaze ,absorbent pads, rolls, boom, sock, duck ponds, spill kits. and relatedoil spill cleanup and prevention products.

Susitna Energy Systems2507 Fairbanks St.Anchorage, AK 99503Phone: 907-337-1300 Fax: 907-644-4120

Kirk Garoutte, Owner

[email protected]

1986 4 Susitna Energy Systems is dedicated to energy independence. We provide renewableenergy and off grid solutions such as solar and wind systems statewide as well as offerreliable and affordable heating alternatives. We also provide installation and repairservices for many of our products.

Sustainable Design Group247 S. Alaska St.Palmer, AK 99645Phone: 907-745-3500 Fax: 907-622-1505

Eric Morey, Principal

[email protected]

2009 4 Sustainable Design Group, LLC (SDG) is a woman-owned and veteran-owned, smallbusiness, design firm offering full landscape architecture and land planning services,with a focus on Community and Economic Development specializing in environmentalplanning, site development and sustainable design.

Taiga Ventures2700 S. Cushman St.Fairbanks, AK 99701Phone: 907-452-6631 Fax: 907-451-8632

Mike Tolbert, Pres.

[email protected]

1979 20 Taiga Ventures provides remote camps and logistics services (expediting, resupply,catering, fuel systems, vehicle & equip. rentals) for exploration, drilling, mining, clean-up& disaster relief projects Statewide. Drill mud, PVC well pipe & supplies in stock. InAnchorage @ 351 92nd Ave, 245-3123

TELLUS, Ltd.2551 Susitna Dr.Anchorage, AK 99517-1148Phone: 907-248-8055 Fax: 907-248-8055

Scott Erdmann, Pres./Prof. Geologist

[email protected]

1997 1 Project management, environmental assessment and compliance, corrective actionprograms.

TestAmerica2000 W. Int'l Airport Rd., Ste. A-10Anchorage, AK 99502Phone: 907-563-9200 Fax: 907-563-9210

Michael Priebe, Account Exec.

testamericainc.com

2002 10 Full-service environmental testing laboratory network. Our local laboratory in Anchorageprovides rush organic testing, and mobile lab services for Alaska, Hawaii and Pacificislands. Local and network labs certified for ADEC, DOD, EPA, NELAC, NPDES, RCRAand DW. .

Tetra Tech310 K St., Suite 200Anchorage, AK 99501Phone: 907-264-6714 Fax: 907-264-6602

Dan Batrack, CEO/Pres.

[email protected]

1966 8 Water, energy, environment, infrastructure, and natural resources.

Three Parameters Plus, Inc.3520 International St.Fairbanks, AK 99701Phone: 907-458-8089 Fax: 907-458-8090

Cheryl Moody, Pres./CEO

[email protected]

1992 11 Natural resource consulting firm specializing in: wetland determinations, delineations &functional assessments; wetland compensatory mitigation; regulatory assistance;mineral exploration & mine permitting; habitat evaluations & impact assessments;aquatic & hydrologic investigations.

Travis/Peterson Environmental Consulting3305 Arctic Blvd., Suite 102Anchorage, AK 99503Phone: 907-522-4337 Fax: 907-522-4313

Larry Peterson, Ops Mgr.

[email protected]

1998 10 TPECI: Services include Storm Water Management, Environmental Site Assessments(Phases I and II), LUST remediation, hazardous material management, facilitycompliance audits, engineering analysis and design, field sampling, surface water/groundwater evaluations, NEPA, and wetlands delineations.

TTT Environmental Instruments & Supplies4201 B St.Anchorage, AK 99503Phone: 907-770-9041 Fax: 907-770-9046

Deborah Tompkins, Owner

[email protected]

2003 10 Portable gas detection, health and safety monitoring, environmental equipment. Rentals,sales, service and supplies. Warranty center. Alaskan owned small business.

Tutka LLC (Wasilla)5825 E. Mayflower Ct., Suite BWasilla, AK 99654Phone: 907-357-2238 Fax: 907-357-2215

Amie Sommer, Member

[email protected]

1999 40 WBE/DBE (SOA), EDWOSB/WOSB, HUBZone, SAM/ORCA registered. GeneralContractor, heavy civil construction, environmental cleanup and consulting, oil waterseparator maintenance, cleaning & repair.

Unitech of Alaska7600 King St.Anchorage, AK 99518Phone: 907-349-5142 Fax: 907-349-2733

Karl "Curly" Arndt, Sales

[email protected]

1985 6 Unitech of Alaska offers a wide range of environmental supplies, with extensiveexperience in oil spill response world-wide, a knowledgeable staff, prompt service andextensive product lines.

URS700 G St., Suite 500Anchorage, AK 99501Phone: 907-562-3366 Fax: 907-562-1297

Joe Hegna, Alaska Ops Mgr./VP

urs.com

1904 350 URS Alaska is a team of 350 engineers, scientists, planners, and support staff locatedprimarily in offices in Anchorage and Fairbanks. URS provides Òarctic-smartÓ engineering& environmental services for the complete project life-cycle from permitting & designthrough production & closure.

USKH Inc.2515 A St.Anchorage, AK 99503Phone: 907-276-4245 Fax: 907-258-4653

Timothy Vig, Pres./Principal

[email protected]

1972 95 USKH is a full-service, multidiscipline architectural and engineering firm with offices ineight locations. Services include: architecture; civil, structural, transportation, mechanical& electrical engineering; surveying & GIS; landscape architecture; planning; &environmental services.

Waste Management of Alaska, Inc.1519 Ship Ave.Anchorage, AK 99501Phone: 855-973-3949 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

[email protected]

1969 3 Hazardous and nonhazardous waste disposal, project management, complete logisticaloversight, complete U.S. and Canadian manifesting, rail transportation, over-the-roadtransportation, marine transportation and turnkey remedial services.

Wild North Resources, LLCPO Box 91223Anchorage, AK 99509Phone: 907-952-2121 Fax: 907-952-2121

Melissa Cunningham, Principal Mgr.

[email protected]

2009 20 WNR provides biological and environmental consulting services and wilderness safetyspecialist support to the public and private sectors. Our expertise includes regulatorycompliance, environmental monitoring, permitting, GIS analysis, site assessments,technical writing, and client support.

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Company Top Executive Estab.AK

Empls. Services

Alaska Car Crushing and RecyclingPO Box 875188Wasilla, AK 99687Phone: 907-892-5865 Fax: 907-357-2123

Gary Jacobsen, Owner

[email protected]

1998 6 Recycling of all kinds of scrap metal including appliances, junk vehicles, batteries,copper, aluminum & catalytic converters. We are a full service company; we have a fleetof tow trucks picking up cars and trucks, we have crushers and balers; we can doremote jobs. We are licensed & insured.

Alaska Soil Recycling1040 O'Malley Rd.Anchorage, AK 99515Phone: 907-348-6700 Fax: 907-344-2844

Brad Quade, Operations Mgr.

anchsand.com

1988 15 Remediation of petroleum-impacted soils by thermal desorption. Our process is capableof off-site and on-site remediation projects. Results are quick and guaranteed. Soils arerecycled into beneficial products after treatment; thereby complying with green andsustainable recycling (GSR) practices.

Alaska Waste6301 Rosewood St.Anchorage, AK 99518Phone: 907-563-3717 Fax: 907-273-2797

Craig Gales, Sales Mgr.

[email protected]

2003 225 Providing residential and commercial refuse and recycling services. Offering curbsideco-mingled recycling to households in Anchorage and Eagle River, office and dumpsterrecycling to commercial users. The roll-off containers can be used on industrial projectsfor C&D recycling.

Anchorage Soil & Water Conserv. Dist.PO Box 110309Anchorage, AK 99511-0309Phone: 907-677-7645 Fax: 907-345-5012

Bret Burroughs, Chair

[email protected]

1997 2 Anchorage Woodlot, property owner and development support and services, BMP anddevelopment planning, confidential assistance to property owners, land managers, anddevelopment industry.

Central Recycling Services Inc.2400 Railroad Ave.Anchorage, AK 99501Phone: 907-748-7400 Fax: 907-561-0178

Stuart Jacques, Pres.

[email protected]

2009 30 Inert debris recycling facility. Accepts separated and mixed loads of recyclable debrisincluding wood, plastic, metals, concrete, asphalt, cardboard, tires, sheetrock, etc.Waste Management Plans and LEED consulting. Sales of salvaged and recycledbuilding materials.

Emerald Alaska Inc.425 Outer Springer Lp.Palmer, AK 99645Phone: 907-258-1558 Fax: 907-746-3651

Blake Hillis, Pres.

[email protected]

2002 75 Hazardous/non-hazardous waste disposal, petroleum product recycling, industrialcleaning services, vacuum truck services, emergency spill response, automotive fluidsrecycling and sales, environmentally friendly cleaners/degreasers, site clean-up andremediation. Anchorage/Kenai/Prudhoe/Fairbanks

Environmental Compliance Consultants1500 Post Rd.Anchorage, AK 99501Phone: 907-644-0428 Fax: 907-677-9328

Mark Goodwin, CEO

[email protected]

1999 55 A full-service environmental company dedicated to providing clients with qualityenvironmental services. Experienced in the disciplines of hazardous waste, materialsmanagement, transportation, environmental consulting, assessment, remediation,demolition, recycling of metals, oils and electronics.

Interior Alaska Green StarPO Box 82391Fairbanks, AK 99708Phone: 907-452-4152

Kalee Meurlott, Exec. Dir.

[email protected]

1998 1 Interior Alaska Green Star, along with the North Star Borough, sponsors monthlyelectronics recycling collections every month, along with ongoing education andoutreach for recycling options in Fairbanks and publishes Fairbanks Recycling Guide.

K & K RecyclingPO Box 58055Fairbanks, AK 99711Phone: 907-488-1409 Fax: 907-488-4058

Bernie Karl, Pres./Owner 1984 125 Recycling Centers (Wholesale); Municipal Recycling Programs; Large Facility RecyclingPrograms.

Recycling Solutions of AlaskaPO Box 110015Anchorage, AK 99516Phone: 907-242-9587

Sarah Robinson, Owner

[email protected]

2008 2 We provide office, business, and residential recycling services. Paper, cardboard,aluminum, glass, electronics and more!

Richmond Steel Recycling11760 Mitchell Rd.Richmond, BC V6V1V8Phone: 907-280-8180 Fax: 604-324-8617

Harbinder Dhillon, Gen. Mgr.

[email protected]

1970 1 Auto hulk shredding, mobile car crusher, industrial steel accounts including full-containerservice, mobile shears, dock facilities and confidential shredding/destruction.

RockTenn Recycling6161 Rosewood St.Anchorage, AK 99518Phone: 907-562-2267 Fax: 907-565-4459

Randy Virgin, Gen. Mgr. 1999 12 Recycling services for general public and commercial sector. Leading metals buyer, alsoaccepts cardboard, newspaper, mixed paper, office paper, aluminum cans, and #1 and#2 plastic bottles.

Shred Alaska, Inc.801 E. 82nd Ave., Suite B-1Anchorage, AK 99518Phone: 907-929-1154 Fax: 907-929-8042

Robyn Forbes, Pres./Gen. Mgr.

[email protected]

2000 12 On-site and drop-off document shredding services to all customers throughout Southcentral Alaska.

Threshold Services, Inc.PO Box 8709Kodiak, AK 99615Phone: 907-486-6551 Fax: 907-486-8554

Kenneth Reinke, Executive Director

[email protected]

1989 15 We are a non-profit corporation which provides employment and training to people withphysical disabilities and other barriers to employment. We do this by operating Kodiak'srecycling facility.

Total Reclaim Environmental Services12101 Industry Way, Unit C4Anchorage, AK 99515Phone: 907-561-0544 Fax: 907-222-6306

Larry Zirkle, General Manager

Facebooktotalreclaim.com

2005 9 Recycler for electronics, fluorescent lights, household batteries and refrigerants.Community resource regarding information on recycling matters. Also Non-Ferrous MetalBuyer.

Valley Community For Recycling Solutions(VCRS)PO Box 876464Wasilla, AK 99687Phone: 907-745-5544 Fax: 907-745-5569

Mollie Boyer, Exec. Dir.

[email protected]

1998 8 VCRS operates a community recycling center receiving and processing material kept outof the landfill into bales/feedstock to make new products. We also provide fieldtrips,recycling curriculum kits, and booths at events for people of all ages to learn howrecycled resources rise again and again.

Page 88: Alaska Business Monthly August 2014

88 Alaska Business Monthly | August 2014 www.akbizmag.com

TRANSPORTATION

On the list of careers and jobs that people fi nd the most prestigious, transportation of hazardous waste

is likely not in the top tier of preferences. Hazardous waste can be dangerous, messy, diffi cult to move, and burdensome because of an abundance of state statutes and federal codes and regulations, all of which transporters are obligated to com-ply with to avoid delays. Further, certain wastes must be shipped from Alaska to special landfi lls and deposit sites in the Lower 48 per federal regulations.

In Alaska—with the sheer size of our state, diversity in construction and resource development industries, and geographic limitations—hazard-ous waste transportation is a critically important and necessary part of com-merce that benefi ts the environment and inhabitants alike.

Who determines what is hazardous waste and how it

should be transported?Th e layers of regulatory bureaucracy are complicated in most remediation and haz-ardous material removal projects, and the transportation of hazardous waste is no exception. Movement of waste defi ned as “hazardous” occurs by four methods: rail, air, ship, and, most commonly, by vehicle on road and highway systems. For each mode of transportation, state and federal laws apply, government agencies are in place, and program administrators with a cadre of staff oversee the process to en-force compliance and safety protocols.

James Simmons is the Hazardous Mate-rials Program Manager for the Federal Mo-tor Carrier Safety Division within the US Department of Transportation. Simmons is headquartered in Denver, Colorado, and oversees the service center for the West-ern Region, which includes Alaska. Th ere are four regional service centers (Denver, Illinois, Georgia, and Maryland) and the headquarters for the Federal Motor Car-rier Safety Division is in Washington DC.

Simmons’ oversight is of the transpor-tation of hazardous materials, within which hazardous waste is a category. Ve-hicular and road system transportation is the primary means through which hazardous waste is relocated. His pro-gram partners with Alaska law enforce-ment offi cials and works integrally with the Environmental Protection Agency (EPA) to keep the transportation process safe and without complication. Simmons noted that the layers of code and regula-tions are important for the companies working in the hazardous waste fi elds. 49 CFR Parts 390 to 399 covers commercial driving, while Parts 100 to 177 covers hazardous materials and waste. Cargo tank safety, rollover prevention, spill re-porting and prevention, and training are just a few of the subject categories dictat-ing the movement of hazardous waste under regulation which companies must abide by during operations.

Who dares truck in the muck?Recognizing hazardous materials and waste transportation are inextricably linked to voluminous rules and re-quirements, it makes sense the compa-nies engaging in such commerce would have their act together.

Emerald Alaska, Inc. handles and transports hazardous waste, materi-als, and products containing hazard-ous substances. Emerald operations include chemical waste management, marine and industrial cleaning, waste and source reduction services, automo-tive fl uids recycling, and a variety of in-dustrial service applications.

Th e logistics of Emerald’s waste trans-port can get complicated, so a com-prehensive security plan that includes background checks, safety training, and security reporting of movement of the waste is integral to the process.

Th e company has more than twenty-fi ve years’ experience in hazardous waste transportation and owns a fl eet of 250 specialized vehicles that operate across the state and provide daily drum and bulk pick-up services. It also has bulk liquid tankers and solid roll-off s for specialized tank and industrial cleaning projects.

When it comes to tenure in the haz-ardous waste transportation industry and partnering with area transporta-tion companies, Paul Nielsen, director for Sales & Marketing, notes, “We have existing, long-standing, and strong working relationships with a large number of the region’s largest transpor-tation companies, in all methods and modes of transportation. It is a well-known fact that logistics are the key to a successful Alaskan project of any type.”

On February 11, 2,200 gallons of fuel was released at Mile 309.5 on the Dalton Highway, 104 miles south of Deadhorse when a fuel truck rolled over. Emerald’s response crews were there within four hours in negative forty-nine degree tem-peratures with winds at thirty miles per hour. From three feet of snow to two feet of tundra, a special loader-mounted soil trimmer was used to loosen the surface and ultimately load the fuels and con-taminated snow into vehicles and trans-port off -site for melting, product recov-ery, and water treatment in Deadhorse.

Similarly, on June 7, a fuel tanker truck approximately 114 miles south of Prud-hoe Bay lost control on a slippery Dalton Highway because of heavy rain. Th e ac-cident resulted in the leaking of 2,500 gallons of ultra-low-sulfur diesel into the tundra. Emerald expedited response teams from Kenai, Anchorage, and Palmer offi ces and implemented a twen-ty-four-hour per day fl ushing operation involving shore seal boom and absorbent pads, mindful of delicate tundra and building plywood walkways to reduce tracks. Th e response took ten days, and the transportation of 576 oily waste bags (with pads) and absorbent boom was suc-cessfully made to Emerald’s Viking Drive facility for recycling and disposal.

Nielsen adds that partnerships mat-ter in a state like Alaska with a vibrant economy and where companies special-ize in diff erent services tied to hazardous waste management and transportation. Nielsen distinguished that Emerald will only “partner with and utilize the ser-vices from well-established companies with long track records of regulatory and environmental compliance. Most of the

Trucking the muckBy Tom Anderson

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transporters of hazardous materials and waste in and out of Alaska have chosen to partner with us as well, to provide re-sponse and cleanup services in the case of an accidental release or spill. These companies are customers to Emerald Alaska as well as vendors, which shows the mutual respect and confidence that exists between our companies.”

Emerald has locations in Kenai, Palm-er, Fairbanks, and Prudhoe Bay as well as three locations in Anchorage, with more than one hundred full-time employees and ten-day hazardous waste transfer facilities at all of its locations. The com-pany has an extensive fleet of vacuum trucks, tankers, and support equipment and services clients such as Shell, Alyes-ka Pipeline, Flint Hills, Tesoro, Hilcorp, XTO Energy, BP, ConocoPhillips, the state of Alaska, and local municipalities like the Kenai and Fairbanks boroughs and the Municipality of Anchorage.

Beyond Emerald Alaska, there are other companies that handle compa-rable services. Carlile Transportation Systems offers hazardous materials transportation, including all nine DOT hazard classes in both bulk and non-bulk. The company’s experience includes specialty services for hazardous waste, bulk fuel, and munitions. The company website states that “Carlile employees are trained in an expanse of high level skills that include handling and transporting multimodal hazardous materials, multi-level security, and safe transportation procedures.” The company supports shipments through an Operations Sup-port Center, which provides continuous communication and shipment monitor-ing with Carlile’s OmniTracs technology.

Marsh Creek is an Alaska Native com-pany jointly owned by Kaktovik Iñupiat Corporation and SolstenXP. The compa-ny has operations in Anchorage, Alaska, as well as in California, Idaho, and Utah. The company also has project offices in Deadhorse and Kaktovik. Marsh’s broad services list includes contami-nated soil removal, transportation, and disposal. From oily waste water to pe-troleum hydrocarbon contaminated soil excavation, removal, and treatment, the company has projects with the Bureau of Land Management, United States Air Force, ChevronTexaco, and many other private and public sector clients.

Transporting hazardous materials re-

quires experience and knowledge. Alas-ka Marine Lines, Alaska West Express, Bering Marine Corporation, Lynden Air Cargo, and Lynden Transport, all part of the Lynden family of companies, are experienced at shipping all types of haz-ardous cargo. Lynden is also an EPA-cer-tified waste transporter, capable of trans-porting contaminated soils, oily waste, and toxic Polychlorinated Biphenyls (PCB). LTI, Inc. is registered with the US Environmental Protection Agency and the Washington Department of Ecology to transport industrial waste materials.

All Aboard—Shipping the Waste Outside Alaska

A recent joint-venture with Bowhead Transport, a subsidiary to Barrow Alaska Native Village Corporation’s Ukpeagvik Iñupiat Corporation (UIC), and Crowley has blossomed into a full-service of re-mediation and transportation of hazard-ous waste and materials, says Crowley’s Geoff Baker, manager of Business Devel-opment in Alaska.

The joint-venture performed a project last summer in 2013 at a remediation cen-ter at Camp Lonely on the North Slope.

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Th e prime contractor was Olgoonik and Bowhead-Crowley was a subcontractor. Bowhead-Crowley transported contami-nated soil and equipment from a Distant Early Warning site. Th e hazardous waste was transported by truck and loaded on a barge at West Dock in Prudhoe Bay.

Crowley is global company with cor-porate headquarters in Jacksonville, Florida, and regional offi ces in Hous-ton, Seattle, and Anchorage.

Th e idea of the joint-venture surfaced and later came to fruition because Crow-ley has operated in Alaska over sixty years and performs a lot of in-state work, says Baker. Th e collaboration with Bowhead is intended to provide a greater suite of hazardous waste transportation services. “We value our relationship with Bow-head, which brings us closer to the native communities of Alaska,” says Baker.

Alaskan transport companies handle hundreds of diff erent cargo commodity items and many are hazardous materi-als, from chlorine for swimming pools and water treatment to propane, says Jim Dwight, general manager of UIC Marine and Bowhead Transport. When a haz-ardous material runs out of useful life, or is spilled, including materials like PCBs, lead based paint, asbestos, and thou-sands of other products, categories have been designated to cover over and under parts per millions of contaminate, which is regulated by the Resource Conserva-tion and Recovery Act, or RCRA. Th e RCRA was enacted in 1976 and covers record keeping and labeling from “cradle to grave,” tracking hazardous waste from the time it’s generated to the fi nal dispos-al. Proper handling of hazardous waste is important because it can be ignitable, corrosive, reactive, and toxic.

Subtitle C of the RCRA creates the management system for hazardous waste. Under RCRA Section 3004(a), Congress authorized the EPA to promul-gate regulations establishing design and operating requirements for land disposal units to “minimize pollution resulting from the disposal of hazardous waste in or on the land.” In the United States there are twenty-one facilities categorized as Subtitle C hazardous waste landfi lls, and Alaska and Washington state use Chemi-cal Waste Management of the Northwest located in Arlington, Oregon.

For hazardous waste transportation, Bowhead provides the containers and

fl ats for asbestos, scrapped steel, and other waste materials. Th e company also provides oversight on packaging and la-beling and lighterage services through shallow draft 150 foot landing craft s and 200 foot ramp barges that can maneuver into and out of remote sites where reme-diation is occurring for Corps of Engi-neers, US Air Force, and other State and Federal projects.

Th e joint-venture provides shallow access to remote sites—between West Dock and remote sites within sev-eral hundred miles of the dock, adds Dwight. Bowhead barges then carry the waste to Seattle and the client works with the Oregon facility thereaft er, transporting either by rail or truck from Seattle-Tacoma to Arlington.

Dwight notes that this year the joint-venture will have three to four clients on the North Slope at Camp Lonely, Point Lonely, and Nuvagapak Point, for whom the companies will mobi-lize and demobilize heavy equipment and then transport hazardous waste southbound. He adds that scrapped steel doesn’t go to Arlington’s facility but instead to a recycler in Seattle, typi-cally Seattle Iron & Metals Corporation or Schnitzer Steel Recycling in Tacoma.

Environmental Services—Genesis of the

Transportation ProcessBob French, Principal-in-Charge at EHS Alaska, is a senior project manager and mechanical design engineer with more than twenty-fi ve years’ experience in hazardous material identifi cation and abatement. EHS has a team of hazardous building material consultants. Th e com-pany’s list of services includes hazardous materials project management for hous-ing complexes, schools, hospitals, indus-trial facilities, spill Prevention, control and countermeasure plans for drilling rigs at Prudhoe Bay, and the renovation of complex mechanical systems.

French explains that there are many Alaska fi rms that deal with contaminated soil, but in addition exists numerous other hazardous material that haven’t reached the “waste” designation but still require transportation. Asbestos, mercury, and lead paints are examples during renova-tions or modifi cation of older buildings.

EHS off ers chemist services as well as a certifi ed industrial hygienist who han-

dle exposure analysis such as in welding environments. Before hazardous materi-als and waste get transported, the work-ers handling and exposed to them face injury without defi ned rules and stan-dards. Take welding for example: wheth-er welding on galvanized steel with the potential of cadmium exposure or work-ing with stainless steel and requiring specifi c ventilation to avoid hexavalent chromium, EHS addresses environmen-tal concerns tied to hazardous materials as they accumulate and require removal.

French adds that gym fl oors in rural Alaska, sometime made with rubber substrate, may contain mercury. Th e project planning and renovation requires an environmental services company to map out details on how to dispose of the hazardous materials. Typically this means fi lling a conex container with the rubber fl ooring until a barge is contract-ed from Seattle to remove the container and bring it back to Washington state and then to a federal certifi ed landfi ll.

Recently EHS has had a mix of hazard-ous material-related projects including demolition of a small tri-plex owned by US Fish and Wildlife in Kodiak; renova-tion and repairs of schools in Emmonak and Kotlik managed through the REAA and contracted through an Alaskan ar-chitect fi rm; waste testing (and possible removal and transportation thereaft er) for Copper Valley Electric Association in Glennallen and Valdez; addressing lead exposure and spent shell analysis at fi ring ranges in Anchorage, Tok, and Sitka; and the clean-up of an abandoned fi sh processing facility in Southeast where ammonia was used in fi sh re-frigeration systems which soaked into sheet rock, ultimately involving vapor extraction and recovery and removal of the contamination from the oils in the compressors.

Th is is a very big year for Eagle River headquartered EHS because the com-pany has several hundred projects in progress throughout the state. “As the economy continues to recover, it’s re-warding to help Alaskans thread their way through the regulatory quagmires of dealing with potentially hazardous materials,” adds French. R

Tom Anderson writes from Palmer.

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TRANSPORTATION

Every year, roughly 1.2 million tons of ore move out of the Red Dog Mine and south to market.

Millions of tons of cargo pass through the Port of Anchorage. At the Port of Valdez—the southern terminus of the trans-Alaska oil pipeline—supertank-ers handle more than 1.5 million bar-rels of crude oil annually.

All of those endeavors depend on the same crucial element: Alaska’s marine transportation companies, powered by tugs. In a state where vast distances separate communities and businesses and other methods of transportation can prove prohibitively expensive or impossible, tugs and barges provide key support for major Alaska industries like mining, oil, and gas production.

Whether they’re assisting ships in Cook Inlet or transporting fuel through shallow water along the coast of West-ern Alaska, tugs and barges are vital pieces in a multibillion-dollar puzzle.

Foss MaritimeFor Foss Maritime, which provides tug and

barge services for Red Dog Mine and cel-ebrated its 125th anniversary this year, it’s about fi nding solutions for the transporta-tion needs of Alaska businesses. Because of Red Dog’s Arctic location, more than eighty miles north of Kotzebue, the win-dow of opportunity for barge transport is brief. Gary Faber, president of the Seattle-based maritime transport company, says Foss began its mine transport work May 30 this year and will work continuously until freezing conditions end the shipping season, usually around October.

Transporting the ore involves using specially designed self-loading barges, and Faber says Foss developed the world’s fi rst roadstead loading of dry bulk cargo in order to make the most of the short shipping season. Despite the limited window, the tug and barge work at Red Dog Mine contributes to a major economic boost for the region.

Th e mine itself provides 550 full-time jobs, with NANA shareholders making up the majority of employees. Faber says Foss also prioritizes local hire.

“It’s a major business,” he says.

It’s not the only major business de-pendent on reliable tugs and barges.

Faber says Foss is looking forward to-ward a developing oil and gas industry. Like mining, the industry oft en moves by tug and barge.

From front-end engineering support for North Slope producers to resupply, Faber says his company sees growing opportunities doing business with the industry that provides more than a third of Alaska wage and salary jobs.

“We kind of cover the gamut,” he says. “We think we have a good niche.”

Cook Inlet Tug & BargeIn Cook Inlet, a maritime company with deep Alaska roots has also carved out a niche.

While Cook Inlet Tug & Barge was acquired by Foss Marine Holdings, Inc. in 2011, it was founded in 1924 by the Andersen family and remained a fami-ly-owned institution for decades.

“We’ve been around for quite some time,” says Brad Kroon, the company’s general manager.

What the mighty tugboats accomplishBy Kirsten Swann

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Far left & left : The Justi ne Foss and two other tugs moving the Spartan 151 jackup rig to Cook Inlet for Furie. Photos courtesy of Foss Maritime

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94 Alaska Business Monthly | August 2014 www.akbizmag.com

Th e company provides harbor as-sists at the Port of Anchorage. Accord-ing to port offi cials, about 90 percent of the goods used by the vast majority of Alaskans pass through the Anchorage port. Cook Inlet Tug & Barge is there to smooth the passage.

“We pretty much touch everything that comes into the Port of Anchorage,” Kroon says. “Th ey don’t always need a tug, but we’re kind of that insurance, if you will.”

Cook Inlet provides pilot runs for cruise ships and breaks ice for oil barg-es in the winter, the company’s general manager says. Most assists require two tugs in and two tugs out, and Kroon says the small tug business keeps busy with steady traffi c from major cargo lines like Horizon and Tote. Th e work provides steady employment for more than twen-ty people, Kroon says, mostly Alaskans.

In the tricky tides and rapid currents of Cook Inlet, a tug equipped with local knowledge can be invaluable. Kroon says the work at the port helps protect mil-lions of dollars in infrastructure as well as the Cook Inlet environment, home to

beluga whales and other wildlife.“If you think about an airport, the

most tricky or diffi cult or dangerous time is when you’re taking off ,” he says.

In order to head problems off at the pass, Kroon says Cook Inlet employees consider a variety of weather factors. Is there strong wind? What about ice? Above all, Kroon says, the work is about consid-ering safety above economic factors.

Th e security off ered by tugs allows maritime cargo businesses to keep mov-ing. It may not be the quickest method of transportation, but with barges capable of carrying thousands of tons of cargo and tugs able to guide them through dif-fi cult waters, Kroon says maritime trans-port is, hands down, the most effi cient.

“Providing access via the waterways is just a very economical way to do it,” Kroon says.

CrowleyAt Crowley Maritime Corporation, Vice President Bruce Harland knows all about the economics of marine transport.

Th e company uses tugs and barges to

help deliver fuel to hundreds of Alaska communities, oft en in remote locations unreachable by road or rail.

To power Point Lay, the company regularly transports fuel from a tanker to a barge, where it’s then transferred to another barge that delivers it to a tank truck on the beach. From the tank truck on the beach, Harland says the fuel is transferred back on to another barge to make the trip across the Kasegeluk La-goon, the fi nal leg of the journey.

Harland says Crowley delivers a half million gallons of fuel per year to the North Slope Borough community of about two hundred people. He says his company oft en fi elds complaints about high fuel prices, but there are few other options.

“Th eir alternative is not pretty,” Har-land says.

In the past, he says, Crowley has had to resort to fl ying in fuel shipments to meet its obligations when sea ice made tug and barge transport impossible. It’s an exponentially more expensive en-deavor, Harland says.

He says Crowley, which has done business in Alaska for more than sixty years, has discovered ways to work around the Last Frontier’s numerous environmental hurdles. In Western Alaska, Commercial Operations Di-rector Walt Tague says there are only a handful of developed ports. Places like Bethel, Nome, and Dillingham provide basic infrastructure.

“Everywhere else is largely undevel-oped with very shallow approaches,” Tague says.

So, he says, Crowley has adapted to the challenges of fueling some of Alas-ka’s most remote communities.

“You’re either tying up at a mud bank or maybe a small sheet pile wall,” Tague says. “Some of those you can’t stay afl oat in at all stages of the tide, so you’ll ac-tually sit on the bottom, or maybe you have to leave the dock if there’s not good ground there.”

Crowley has developed a book of procedures about a foot thick, Tague says. Harland says it was written by the school of hard knocks. It’s experience that allows Crowley to deliver to places otherwise unreachable.

But the tug and barge work is crucial statewide—not just in far-fl ung com-munities along the coast or river system.

Lynden’s Tugs Busy in AlaskaSO

URCE

: Lyn

den

As a full-service marine transpor-tati on company, Alaska Marine Lines moves all types of freight

to and from Alaska—from necessiti es like groceries and cars to oversized cranes and other bulky materials for diverse projects in the mining, oil, and constructi on industries. Alaska Marine Lines is one of the Lynden family of companies and serves the communi-ti es of Juneau, Ketchikan, Wrangell, Sitka, Petersburg, Haines, Skagway, Kake, and Prince of Wales Island.

Alaska Marine Lines tugs and barges leave Seatt le twice a week loaded with containers and other cargo, powered by Western Towboat tugboats, a Lyn-den partner since 1982. The tug and barge combo also provides twice a week freight service to Central Alaska points of Anchorage, Fairbanks, Whit-ti er, Kenai, Seward, and Cordova by both container and railcar barge for rolling stock. Alaska Marine Lines is the only carrier to Southeast Alaska off ering twice a week service.

Considered a pioneer of highly ef-fi cient equipment designs, Alaska

Marine Lines recently introduced the world’s fi rst 53-foot-long by 102-inch-wide by 10-foot-high ISO-rated dry and refrigerated containers. Its fl eet of 53-foot containers is the largest in Alaska. Container sizes range among 20 foot, 24 foot, 40 foot, and 48 foot for dry and refrigerated, over-size, hazardous, less-than-container or full-container cargo. Customers can choose from a wide variety of equip-ment, including platf orms, bulk tank and wheeled, and all pieces may be rented for specifi c needs.

Lynden also provides marine char-ters and highly specialized services to reach water-locked villages and other remote Alaska locati ons through its company Bering Marine Corporati on. Bering Marine’s fl eet of shallow-draft and landing craft equipment supports constructi on of docks, roads and air-strips in Alaska communiti es as well are providing emergency response services throughout the state. In 2005, the company introduced the in-tegrated tug and barge, or ITB, Krystal Sea, into the Cordova market.

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Journalist Kirsten Swann writes from Anchorage.

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Besides work in Western Alaska, Crowley provides ship assists at the busy Port of Valdez, where millions of barrels of crude oil fl ow through the trans-Alas-ka oil pipeline to the terminus. Harland says his company holds the contract to dock and undock tankers at the port and operates twenty-fi ve boats that em-ploy about two hundred mariners.

“It’s a fairly signifi cant operation,” he says.

Like Crowley’s tug and barge work elsewhere in the state, he says it’s close-ly tied to Alaska’s oil and gas industry. While decreasing pipeline throughput increases the pressure on cost for Crow-ley operations in Valdez, Harland says the company is working to facilitate new projects in other parts of the state.

Crowley is contracted with Texas-based Furie Operating Alaska LLC, to transport the oil company’s new monopod from the Gulf of Mexico to Cook Inlet. It’s the fi rst Cook Inlet plat-form since Forest Oil installed Osprey in 2000, and Harland says Crowley is moving the 124-foot monopod, shipped upright, on a 400-by-105-foot barge.

“It’s pretty impressive,” he says.It’s not just the transport: Harland

says Crowley will also build a sixteen-mile underwater transmission line to the platform. He says the operation involves building the pipe in segments and using a 125-ton stinger to support the pipe over the stern of the barge and into the inlet.

“We’re building a purpose-built barge—we’re building it in Portland right now—to handle the currents in Cook In-let and lay the pipe,” Harland says.

Like countless other projects across Alaska, tugs and barges play a crucial role in plans to install the new mono-pod and pipeline. Th ey’re key forces behind some of the state’s largest eco-nomic drivers.

At Foss, Faber says he aimed to build on that legacy and hoped to see the com-pany increase its impact on Alaska’s smallest communities. He says it’s part of the philosophy of “in early, stay late” so crucial to success in the tug business.

“We want to be the guys that put in more than they take out,” Faber says. R

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OIL & GAS

Diver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneDiver Down, Diver DroneIndustrial-strength mariners

By Vanessa Orr

Working in the oil and gas in-dustry in Alaska oft en means working in remote and in-

hospitable conditions, especially when the projects are located off shore. For the companies that provide installa-tion, inspection, repair, and mainte-nance of marine infrastructure, a day’s work can mean dealing with extreme tides, working by touch in silt-fi lled

waters, and even avoiding some of the state’s largest predators.

In order to do these jobs, crews must be highly trained, extremely skilled, and exceptionally safety-conscious. Whether the job requires construct-ing platforms, laying fi ber optic cable, cleaning up aft er an oil spill, or per-forming underwater inspections, knowledge is key when it comes to navi-gating Alaskan waters.

From Blackwater to Bears“Th e conditions in Cook Inlet are some of the most challenging diving condi-tions in the world,” says Tom Ulrich, regional manager for Alaska operations for American Marine Corporation (AMC). “In addition to dealing with thirty-plus-foot tidal fl uctuations and extreme currents, divers are only able to dive at slack tide, which gives them a very narrow operational window. Be-cause there is very little visibility—they are diving in blackwater conditions—divers have to operate by feel; high in-tensity light just refl ects off of the water. Th ey have to be very competent at per-forming each task; otherwise, they’d never be able to fi nish their jobs in the time allowed.”

A privately owned specialty marine contractor, AMC has been working in

Alaska since 1993. Th e company pro-vides marine construction, pipeline and platform installation and repair, dredging, marine salvage, underwa-ter certifi ed welding, underwater in-spections and photography, and vessel support. AMC also provides shoreside construction and the deployment of fi ber optic cables as well as emergency marine vessel repair.

While extremely cold water and air temperatures, along with rapidly changing weather conditions, can af-fect divers’ progress, according to Ul-rich, there are also challenges when supporting remote site operations on land. “Our employees operate in fairly close proximity to everything from bears to volcanos,” he says. “In remote areas, there are wildlife challenges. We deal with black bears and grizzly bears in areas around Anchorage and polar bears on the North Slope. When you open a hole in the ice in winter, it at-tracts bears from miles around because they smell the open water and equate it with seals, their primary food source. And you don’t want your divers being mistaken for seals.”

According to Deirdre Gross of Global

Photo courtesy of OMSI The OSV Discovery working along-side the Spartan Rig in Cook Inlet.

An AMC diver performing underwa-ter welding operati ons in Valdez.

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Diving & Salvage, Inc., just getting to some of the more remote project loca-tions in the state is a challenge. Th e company, which has been working in Alaska on projects since the 1980s, made their presence in the state per-manent in 2009 with the purchase of Off shore Divers. Global’s Alaska offi ce provides commercial diving services for the off shore oil and gas industry, marine facilities, vessel operations, and casualty response projects. Global has extensive experience working in Alaska’s challenging environment, including Cook Inlet’s zero visibility blackwater, excessive tidal variations, extreme weather, and remote locations. Global also has divers available with both topside and underwater welding certifi cations, allowing on-site design and fabrication with no need to bring additional crews to remote areas.

“Alaska can be a logistical night-mare—it’s tough to get to locations and incredibly expensive to move people and equipment around the state,” Gross says. “You’re working in weather that is hard on your crews and equipment. Th e short daylight hours, cold tempera-

tures, and dealing with local wildlife all promote challenges to the work.”

While Global Diving & Salvage, Inc. operates all over the state, the majority of its work is done in Cook Inlet. Proj-

ects currently underway include instal-lation of cathodic protection systems and inspections on oil and gas plat-forms, along with support of a pipeline installation.

An AMC dive team preparing for North Slope inspecti on operati ons.

Photo courtesy of AMI

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According to Joey Willis, president of Ocean Marine Services, Inc. (OMSI) in Nikiski and Kirkland, Washington, it takes a really skilled crew to be able to work in Alaska’s harshest conditions, es-pecially when constrained by extremely tight schedules. Th e company, which owns and operates four off shore supply vessels, a landing craft , and a research catamaran, works with partner compa-nies Off shore Systems, Inc. and Aleutian Fuel Services in Dutch Harbor, Off shore Systems Kena, Nikiski Fuel Services, and underwater diving contractor Black-water Marine to make sure that clients’ needs are met around the clock.

“Th e increased activity has allowed us to add an additional crane and longshore crew at OSK,” says OMSI Vice President Kelly McNeil. “Th is provides us with the opportunity to work multiple clients and vessels at the same time.”

To continue this positive growth, OMSI recently added a 165-foot vessel, the Titan, to its fl eet of four off shore support vessels. “Cook Inlet has seen some ups and downs over the years, but we have seen nothing but growth,” says Willis of the new addition. “Th e chal-lenge for us has been keeping up with the demand. Our presence in the Inlet

continues to grow, and that’s why we’ve brought another vessel to our fl eet.”

Th e Titan was set to join the fl eet in Cook Inlet this summer aft er comple-tion of a retrofi t, which includes ice strengthening, outfi tting power for tides and ice, and retrofi tting the water and fuel confi guration to ease in transfers to the rigs that the company supports. Like OMSI’s other vessels, the Titan has been specially designed to withstand Alaska’s tough winters to provide year-round services to customers.

Safety FirstIn order to meet the demands of work-ing in such harsh environments, ma-rine service crews must be properly trained and have access to the tools that they need. Divers, for example, under-go rigorous on-the-job training before ever being allowed to work in blackwa-ter conditions.

“Aft er graduating from commercial diving schools, divers enter our appren-ticeship program, where they start as tenders for the more experienced divers, working on deck,” explains Ulrich. “Th ey are gradually allowed to do more diving in stable conditions, and eventually they gain more responsibility and can take on more challenging assignments.”

In addition to being closely moni-tored during the apprenticeship pro-gram, divers at AMC are also assigned mentors who guide them as they devel-op skills and gain competency.

“For the seventh year, we’ve claimed a perfect safety record with no OSHA-recordable injuries,” adds Ulrich. “Our mission is to excel in operations: to ex-ceed clients’ quality expectations, while also causing no harm to our people or the environment.”

Th is summer, AMC is performing underwater pipeline inspections and anode replacement and repair, as well as installing and repairing fi ber optic cable in Cook Inlet. Th e company is also working at BP’s Northstar produc-tion island, where they are replacing and repairing the armored blocks that make up the protective skirting around the island.

Divers who work at Global Diving & Salvage, Inc. also receive on-the-job training through apprenticeships; dive school is just the beginning. Of Global’s four hundred employees worldwide,

Alaska’s weather conditi ons are just one challenge that divers face. Here, Blue Lake in Sitka shows ice-up conditi ons in May.

Photo courtesy of AMI

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about twenty-fi ve are employed in Alas-ka and sixteen of those are divers.

“Th ey all start out as tenders and work their way up to becoming div-ers with mentors guiding them,” says Gross. “It is not an overnight process to become a diver; it takes time, training, and experience.

“Th e safety of our employees is and always will be our number one concern; we want our employees to go to work and come home safely to their families,” Gross continues. “Our safety philosophy emphasizes working with each other and our clients to ensure the safest work environment possible. Our TEAM [To-gether Everyone Achieves More] pro-gram encourages participation from our employees and clients to ensure that safety is maintained for current projects and improved for future projects.” Th e company’s approach to safety also in-cludes company-wide employee train-ing, ongoing observations and sugges-tions, daily meetings with job hazard analysis, proactive dive safety and gen-eral safety committees, tracking and ad-dressing trends, job safety kickoff s, and frequent job safety audits.

OMSI reinforces safety through training, special skills, and experience.

“As a company that understands the nuances of working in Cook Inlet, we have been able to provide vessel ser-vices safely and effi ciently since the early 1980s,” Willis says. “Th is is due in large part to the experience of our vessel crews who have the special skills and experience necessary to navigate in Cook Inlet’s challenging waters.”

“Th e challenges always come back to Mother Nature,” adds McNeil. “We’re constantly dealing with changing

The OSV Sovereign is one of OMSI’s fi ve oil support vessels working in Cook Inlet this summer.

Photo courtesy of OMSI

MORE THAN JUST A DIVING COMPANYwww.gdiving.com | [email protected] | 24 hr 1-800-441-3483

Marine Construction Casualty Response Offshore Operations

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weather, extreme weather conditions, and severe tide changes. What sets us apart is that we have so many experi-enced vessel operators and crewmem-bers. All of our mariners are trained to recognize the dynamic conditions of Cook Inlet; it takes a lot of skill to get boats alongside the platforms and maintain position while active cargo operations are performed with these tides. We rely on the experience of our officers and crew as our best defense against Mother Nature.”

Technology Glides InIn some cases, technology keeps people safe by keeping them out of the wa-ter. Liquid Robotics Oil & Gas, a joint venture with Schlumberger, has intro-duced a product called the Wave Glider, which has been in use in Alaska waters for the past year. The remote controlled, autonomous marine vehicle technology was developed to integrate a variety of sensors that collect and send offshore data in real-time via satellite commu-nications. The METOC glider conducts detailed meteorological and oceano-graphic surveys across vast distances and under extreme conditions.

“From a health, safety, environmen-tal, and security perspective, the less people in the ocean, the better,” says Sudhir Pai, vice president, Operations and Technology, Liquid Robotics Oil & Gas-Schlumberger JV. “The Wave Glider doesn’t need people to man it as it is completely autonomous; it also en-ables companies to avoid using expen-sive vessels to do this research, which greatly cuts down on costs.”

Meteorological and oceanographic data—especially the height of waves and period of swells, speed and direc-tion of wind, and surface or subsurface currents—provide crucial input when oil and gas companies plan rig move-ments and placement. The Wave Glider replaces conventional sensor platforms such as buoys, ships, aircraft, and satel-lites, as well as the need for personnel to support these platforms.

“All that the Wave Glider needs to work is at least ten meters of water depth, sunlight, and waves,” says Pai of the wave-powered marine vehicle.

The glider is capable of crossing thou-sands of miles of ocean to gather data and can also take meteorological read-

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ings while maintaining a stationary po-sition or circle a rig at a pre-set distance to provide early warning of security or environmental threats. Operating indi-vidually or in fl eets, it can also perform background seep monitoring and spill detection.

While the Wave Glider is fairly new to Alaska waters, Pai says that its abilities

have been tested in hundreds of mis-sions around the world, clocking more than fourteen thousand glider days at sea. R

A Wave Glider integrated with an Acousti c Doppler Current Profi ler, gathering and sending meteorologi-cal data in real-ti me via satellite com-municati ons.

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An AMC diver setti ng up to access underwater rigging during North Slope dive inspecti on operati ons.

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Vanessa Orr is the former editor of the Capital City Weekly in Juneau.

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OIL & GAS

Insights on Filling the PipelineInsights on Filling the PipelineInsights on Filling the PipelineInsights on Filling the PipelineInsights on Filling the PipelineInsights on Filling the Pipeline

Since 2002, the amount of oil fl ow-ing through the trans-Alaska oil pipeline has decreased by millions

of barrels per year without even the slightest annual uptick in production.

Th e downward trend began long be-fore that. From a high of more than 744 million barrels produced in 1988, the year 2013 saw around 195 million barrels of oil travel through the pipe-line. According to data maintained by Alyeska Pipeline Service Company, the pipeline’s operator, the average daily throughput also continues to decline.

When it comes to boosting the num-ber of barrels fl owing down the pipe-line, Alaska petroleum businesses and industry groups alike say it takes both geological and political science.

More ProductionOn its face, it seems simple. Alaska Oil and Gas Association President Kara Moriarty says fi lling the pipeline requires more pro-duction—there’s no two ways about it.

“It sounds simplistic, but it really is that basic,” Moriarty says. “Of course, compa-nies need the right framework to spend

the additional money required to bring more oil online, so the investment cli-mate in Alaska needs to be competitive and attractive in order to keep limited investment dollars in Alaska instead of other places across the globe.”

But if pipeline throughput is any in-dication, creating the right framework has been a daunting task.

Between 1990 and 2000, according to Alyeska Pipeline Service Company data, annual pipeline throughput de-creased by nearly 45 percent. Between 2000 and 2010, it decreased by another 38 percent. Th e pipeline’s operator says throughput continues to decline by about 5 percent annually, and, today, it’s about two-thirds empty.

New Technologies and Techniques

Alaska’s producers and industry insid-ers are turning to a handful of solutions in a bid to ramp up pipeline fl ow.

Some companies, like BP, are working to produce more oil from existing fi elds

via specially developed sys-tems. A trade-marked polymer in-jection technology known as Bright-Water helps BP improve on reserve recovery rates. Th e company says directional technology and horizontal drilling also improve production at existing sites.

New technologies and techniques are paying off .

When Prudhoe Bay was fi rst discov-ered in 1968, it was estimated to hold about 9.6 billion barrels of recoverable oil. In 2012, the fi elds produced their 12 bil-lionth barrel, and they didn’t stop there.

But as the oil left in existing North Slope wells becomes increasingly diffi cult to reach, a boost in pipeline throughput

Bett er technology, techniques, and public policyBy Kirsten Swann

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requires new developments altogether. Th at’s where the political science

comes into play, Moriarty says.“When companies evaluate where to

invest their dollars, they tend to avoid oil regions that arbitrarily change the rules on a regular basis. In just the last eight years, Alaska has made four changes to its oil tax structure. Th is sends a negative signal to the indus-try that long-range planning, which is necessary in the oil and gas industry,

is risky in Alaska where the laws and tax rates may change from one year to the next,” the industry group president writes in an email. “Our tax structure needs to be durable, stable, and pre-dictable so oil companies and Alaskans know what to expect in the long-term.”

Uncertain and Instable Tax Structure

AOGA sees uncertainty and instabil-ity within the state’s tax structure as the

primary obstacle to increased produc-tion, Moriarty says. When it comes to overcoming that obstacle, some of Alaska’s largest oil and gas compa-nies point to recent new legislation as a symbol of good things ahead.

“We believe Senate Bill 21 makes signifi cant progress toward making Alaska’s investment environment more globally competitive and could lead to additional investment and production,”

says Aaron Stryk, a commu-

nications and media advisor for Exx-onMobil Corporation. “ExxonMobil is committed to Alaska and will continue to actively pursue attractive investment opportunities.”

Th e company, a 20-percent owner of the Trans Alaska Pipeline System (TAPS), is currently working to develop infrastructure and production facilities at Point Th omson. Th at site is estimated to hold about 25 percent of the North Slope’s known natural gas reserves, and Exxon says it expects to initially put about ten thousand barrels of light oil daily into the pipeline beginning in the winter of 2015-16. A transmission line with a capacity of seventy thousand barrels per day would connect the Point Th omson development, about sixty miles east of Prudhoe Bay, to TAPS.

Other Alaska producers are also an-nouncing new development plans, point-ing specifi cally to the state’s latest tax poli-cy as the catalyst for increased investment.

ConocoPhillips, the state’s largest pro-ducer, is following that trend. Th e com-pany owns a 29 percent stake in TAPS

and says new development plans at several North Slope sites total

about $2 billion. According to ConocoPhillips, the plans involve two new rigs, a new drill site, and a new vis-cous oil development at Kuparuk. Th e company

says these projects,

Trans-Alaska oil pipeline as it winds through the foothills north of the Brook Range north of

the Arcti c Circle.© Brian M. Guzzetti/AlaskaStock.com

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including a new satellite fi eld at Alpine, are expected to add an additional forty thousand barrels of oil per day by 2018.

Conoco says a new project in the Na-tional Petroleum Reserve-Alaska, the fi rst of its kind, is also expected to put sixteen thousand barrels of oil into the pipeline daily beginning in 2015.

BP, which owns a majority 48 percent share in TAPS, says it’s also pursuing new investments on the North Slope.

“Alaska oil tax reform has had a posi-tive impact on the pace and scale of oil development,” says Janet Weiss, presi-dent of BP Alaska. “Th e Alaska North Slope has new players, new investment, and new projects.”

Th e company accounts for about two-thirds of Alaska oil production from its North Slope fi elds. Aft er announcing the sale of interests in four of those North Slope assets to Hilcorp in April, Weiss says BP would be able to focus on increased production from its Prudhoe Bay fi elds.

“Th anks to tax reform, Alaska is now on course for increased investment and production,” Weiss said at the time of the Hilcorp sale.

Th at course calls for an estimated $1 billion in new investment over the next fi ve years, and BP has announced plans to add two new rigs in 2015 and 2016. Th e oil giant says it is also working with other Prudhoe Bay owners to evaluate an additional $3 billion worth of new projects and plans to move forward with a development plan for an as-yet undeveloped fi eld adjacent to Prudhoe Bay. While a 50 percent stake in the Liberty fi eld was among the interests sold to Hilcorp earlier this year, BP says it still expects to submit a development plan for the fi eld by the end of 2014.

“We’re increasing activity on the North Slope and working with renewed vigor to reduce production decline,” Weiss says. “A strong economy builds an opportunity for all Alaskans, includ-ing sustainable jobs.”

And the employment impact of Alas-ka’s oil and gas industry is substantial.

Industry Support of JobsA recent economic report completed by Juneau-based research fi rm McDowell Group shows Alaska’s oil and gas in-dustry helps support more than 111,000 jobs and more than $6.45 billion in wages statewide.

Th e report, commissioned by AOGA, was introduced to a crowd of roughly eight hundred attendees at the asso-ciation’s annual luncheon in May. It measures spending by sixteen “prima-ry companies” in Alaska’s oil and gas business and tracks the fl ow of money through Alaska’s economy via spend-ing with other businesses, wages paid to workers, and taxes and royalties paid to the state and local governments.

Ultimately, McDowell Group found the state’s oil and gas industry supports nearly a quarter of total Alaska em-ployment and more than a quarter of all Alaska earnings. When it comes to wage and salary employment, the per-centage is even higher: Th e McDowell Group report shows oil and gas-related spending accounts for more than a third of all wage and salary jobs state-wide. It provides more than 90 percent of the state’s unrestricted general fund revenue and about a quarter of local tax revenues collected by cities and bor-oughs across Alaska.

And when it comes to taking the temperature of the Alaska energy in-dustry, AOGA recommends one sure place to start.

“Pipeline throughput is an excellent indicator of the oil industry’s health,” Moriarty says. “When more oil is pro-duced on the Slope, it makes its way to market through the pipeline. Higher volumes of oil moving down the line make the pipeline safer and more effi -cient, and Alaskans benefi t from more oil being sold and more royalties being deposited into the Permanent Fund.”

Policy Moves NeededAs the pipeline’s throughput follows a steady trajectory downward, however, many industry leaders are turning in-creasingly toward political solutions.

Delivering the keynote address at AOGA’s annual luncheon in May, American Petroleum Institute Presi-dent Jack Gerard pushed attendees to consider Alaska’s history as an oil-pro-ducing giant and consider policy moves that could restore that ranking.

“In recent decades, Alaska has been the highest or second-highest produc-ing state as it relates to crude oil. Today, as you are all well aware, Alaska has now slipped to number four,” Gerard says. “When you look across the US

today at every oil-producing state in the great energy renaissance that we’re enjoying, every oil and gas-producing state, except Alaska, has increased their production over the last few years.”

He cited “energy leadership,” includ-ing streamlined permitting and leasing processes, as the key to reversing Alas-ka’s declining production rates.

“Alaska is one of the best examples of how energy policy can change not just the trajectory of energy production but how it can greatly improve and enhance the lives and livelihood of its citizens.”

Moriarty says increasing throughput would require an all-of-the-above ap-proach.

“Th at means continuing the strong partnership with the State of Alaska by keeping a tax structure that is predict-able, durable, and fair to the companies taking the risks and making the invest-ments, as well as the Alaskans who own the resource. In addition, the permit-ting process also must be predictable, durable, and fair so projects can ad-vance in a timely fashion while protect-ing our environment,” she says. “Lastly, Alaska needs a trained and skilled workforce to do the work required to advance projects focused on producing new oil.”

Th at trained and skilled workforce plays an integral role in every new proj-ect planned along the North Slope.

At Point Th omson, Exxon says it di-rectly and indirectly employed about 1,100 workers during the 2013 winter season. ConocoPhillips Alaska says its two new drill rigs directly created about 200 new jobs. At peak construction, its new drill site on the Kuparuk River is expected to employ about 230 people.

But policy seems to be the driv-ing force behind it all. Trond-Erik Jo-hansen, president of ConocoPhillips Alaska, says a favorable tax structure greatly improves the outlook for his company’s new development and pro-duction projects. In BP’s 2013 annual report, Weiss pointed to a “more favor-able fi scal climate” as the driving force behind new energy developments in the Last Frontier.

Gerard, the API president, says Alaska’s former standing as one of the nation’s leading petroleum producers demonstrates the role of policy in oil production.

Page 105: Alaska Business Monthly August 2014

On August 19th the voters will decide the out-come of SB21, also known as the More Alaska Production Act. The issue will decide more

than our oil tax policy, it will decide the economic future of Alaska. The oil tax policy issue has raised a number of opinions from residents, and fortunately we all have the right to vote our opinions and weigh in on important public matters.

As voters we carry the responsibility and burden of knowing the facts of what we are voting on and to not take that responsibility lightly.

If you are not aware of the makeup of Alaska’s unre-stricted general fund, the production rate decline under ACES, the amount of capital invested in our oil resource extraction under ACES, the number of drilling rigs operating on the North Slope under ACES, the number of exploration wells drilled under ACES, and how things have changed positively in all of those categories under SB21, then you have homework to do.

The More Alaska Production Act, or SB21, has in-creased investment, and activity is up on the North Slope and across Alaska. This activity has already cre-ated hundreds of new jobs, and the production decline is slowing substantially as compared to our historical decline under ACES.

With so much on the line for Alaska, including a po-tential major LNG export project, we cannot afford to get this vote wrong. Be an informed and responsible vot-er by carefully examining the facts about our tax policy and how the oil industry fuels the Alaskan economy.

Little Red Services, Inc.Doug Smith, President & [email protected] Centerpoint Drive, Suite 1300

Anchorage, AK 99503907-349-2931 littleredservices.com

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“To those who think that policy doesn’t matter when it comes to energy development, I’d suggest that they look at the consequences of the attitude right here in Alaska,” he told members of the Alaska Oil and Gas Association in May. “I would remind them that Alaska’s oil and gas deposits account for almost 30 percent of the nation’s energy reserves, and yet today, the state’s energy pro-duction accounts for approximately 7 percent of US production, down from a high of 25 percent in just back to 1989.”

Refilling the PipelineIn order to reverse those fortunes and refi ll the trans-Alaska oil pipe-line, industry advocates and Alaska oil companies alike are banking on an investment-friendly development envi-ronment and production policies.

“Just like any other industry, we require public policies that promote growth and protect our investments in the communities in which we live and invest,” Gerard says.

While new projects spearheaded by the state’s largest oil and gas producers could increase the daily amount of oil fl owing through the pipeline by as much as 20 percent over the coming years, according to corporate production es-timates, they’re not nearly enough to spark a major change in the downward trajectory of pipeline throughput. To-day, those numbers are still declining. According to Alyeska Pipeline Service Company data, the pipeline’s average daily throughput decreased by more than thirteen thousand barrels per day between 2012 and 2013.

While representatives for Alaska’s largest oil and gas companies say recent legislative changes to the state’s oil tax structure are a promising step in the right direction, industry leaders say re-fi lling the pipeline will take a fi rm fo-cus on creative and compelling energy policy. R

Kirsten Swann grew up in Alaska and calls Anchorage home. She studied journalism at Hillsdale College and has covered everything from business to human interest topics for a variety of publicati ons, both print and digital.

One third of all Alaska jobs are directly related to the oil and gas industry.

Most Alaskans don’t know 90% of our tax revenue comes from oil.

Vote NO on 1!

“Supporters of ballot measure 1 could make it hard for graduates to find work.”

BETTINA THIBODEAUX, ACCOUNTING MANAGER

AFTER GRADUATING I was fortunate to get a good job

Paid for by Peak Oilfield Service Company | 2525 C Street Anchorage, AK 99503 Approved by Patrick Walsh, Senior Vice President

Page 107: Alaska Business Monthly August 2014

www.akbizmag.com August 2014 | Alaska Business Monthly 107

Legal Speak By Renea Saade

Independent RelationshipsIndependent RelationshipsIndependent Relationships

StandardsStandardsStandards

Costs Incurred Costs Incurred Costs Incurred

Claims HandlingClaims HandlingClaims Handling

InsuranceInsuranceInsurance

Bottom LineBottom LineBottom Line

Renea Saade is a partner with the Anchorage offi ce of Stoel Rives LLP. Saade regularly assists companies with their commercial business and employment law needs. She may be reached at [email protected] or 907.263.8412. This arti cle is provided for educati onal purposes only. It is not a substi tute for legal counsel.

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Business in Alaska

Page 108: Alaska Business Monthly August 2014

108 Alaska Business Monthly | August 2014 www.akbizmag.com

OIL & GAS

Foreign Fuel forForeign Fuel forForeign Fuel forForeign Fuel forForeign Fuel forForeign Fuel forWestern AlaskaWestern AlaskaWestern AlaskaWestern AlaskaWestern AlaskaWestern Alaska

How do Alaskans get their fuel?It’s delivered in a surprising

number of ways and from a wide variety of places.

Alaska is one of the nation’s top oil and gas producing states, yet some parts of the state, mainly western Alaska, get a lot of their diesel, gasoline, and heat-ing oil from foreign sources, overseas.

Why is that? Because it’s more effi -cient and cheaper.

Foreign tankers loaded with fuel products station themselves at sea just outside the state’s territorial boundaries (there’s less paperwork) and transfer the fuel to shallow-draft “lighterage” barges (small coastal barges) for fi nal delivery to regional terminals or fuel hubs.

From these regional hubs, shallow-draft tugs and barges move fuel to small inland communities on the river systems, where it is transferred to com-munity tank farms. Since most small villages do not have docks, fuel barges are sometimes grounded on the beach as the delivery is made, and Alaska is the one state where the US Coast Guard allows a fuel barge operator to inten-tionally touch bottom on a beach.

Fuel distributors still bring products in large seagoing barges from domestic sources, such as the Tesoro Corporation

refi nery at Nikiski, near Kenai, but the recent trend is to source the fuel from overseas and take advantage of the large volumes that tankers can supply, fuel distributors say.

Fuel is sourced from Canada, Russia, Japan, South Korea, or China, wherever the best bargain can be struck. Major suppliers in western Alaska, like Crowley, Delta Western, and Vitus Marine, buy foreign fuel for at least part of their needs.

Th e main savings in the new arrange-ment is in eliminating the “backhaul” re-turns of empty fuel barges from western Alaska to the Kenai Peninsula, although some fuel is still supplied from Nikiski.

Fuel Distribution OperationsTh e summer fuel supply operation typi-cally lasts four months, beginning in Bristol Bay and following the spring and summer melt of the ocean ice north to the Arctic. Th e fuel supply eff ort reaches Barrow on the Arctic Slope and Barter Island, in far northeast Alaska near the Canada border.

A big customer in Northwest Alaska is the Red Dog Mine north of Kotzebue, which purchases about 20 million gal-lons of fuel yearly. Nome’s city-owned utility is a big customer, purchasing about 2 million gallons yearly, as is Alaska Village Electric Cooperative (AVEC), which operates small rural utilities. AVEC purchases between 5.2 million and 5.5 million gallons for its

fi ft y-fi ve village utilities; plus an addi-tional 3.15 million gallons for Bethel’s utility, which the cooperative now owns.

Crowley and Delta Western are also major fuel distributors in Southeast and Southcentral Alaska. Vitus Ma-rine operates mainly in western Alaska. Crowley purchased Chevron’s Kotzebue and Nome fuel terminals in 1985 to complement the company’s marine fuel transportation services already under-way. Over time, the company’s delivery network extended to about one hun-dred coastal and inland river villages.

In 2003 the company constructed a 5 million-gallon bulk tank farm at Bethel in cooperation with Bethel Native Corpo-ration and in 2005 acquired Northland Fuel, which included Yukon Fuel Co. Yu-tana Barge Lines and Service Oil and Gas, which allowed Crowley to expand its fuel distribution through Interior Alaska.

Tank farms in Nenana, Fort Yukon, Galena, and St. Mary’s on the Yukon were added to Crowley’s network as well as at Hooper Bay and St. Michael on the coast, as well as Illiamna, south-west of Anchorage.

Tank farms in the railbelt commu-nities from Kenai to Fairbanks were added along with Delta, Glennallen, and Valdez, and a 30 million-gallon fuel terminal at the Port of Anchorage. Crowley operates twenty-two facilities in Alaska today with a bulk storage ca-pacity of 50 million gallons.

Economies of scale, ocean transfers save moneyBy Mike Bradner

Aerial view of the Tesoro natural gas refi nery in Nikiski.© Scott Dickerson/AlaskaStock.com

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Delta Western operates fuel facilities in three coastal regions, in Southeast (Wrangell, Juneau, Haines, and Yaku-tat); the Bristol Bay region (Dillingham and Naknek)); Bethel in the Yukon Kuskokwim region, and in Southwest Alaska (Dutch Harbor, St. George, and St. Paul). Th e company is affi liated with Foss Maritime, which off ers tug and barge services, and Inlet Petroleum Co., which operates in Southcentral Alaska.

Other fuel suppliers include Petro-Star, which operates small refi neries near Fairbanks and Valdez and sells diesel, heating oil, and jet and marine fuel. Sourdough Fuel, a subsidiary, sells heating oil in Interior Alaska and the highway communities. PetroStar is also a major fuel supplier in coastal com-munities in Southcentral and Southwest Alaska, supporting terminals in Valdez, Kodiak, Dutch Harbor, and St. Paul.

In Southeast Alaska most fuel comes from the Pacifi c Northwest as it always has, but some is also supplied, from time to time, to Southeast from South-central Alaska. Th e distances from Southeast to Southcentral, or from the Pacifi c Northwest, are about the same,

but there is a long-established and ef-fi cient transportation system from the Pacifi c Northwest to Southeast.

Challenging Conditions Th ere are also rural communities sup-plied by air, and this is becoming more common as supplying fuel by barge be-comes more diffi cult in some places. Th at is happening because water levels in many western Alaska rivers are dropping, a result of climate change, although there are always year-to-year diff erences. Fuel barges can no longer navigate the Noatak River in Northwest Alaska, and reaching communities along the upper Kobuk and the upper Kuskokwim River by barge is becoming more challenging. Fuel has even been fl own into McGrath, a relative-ly large community, because of low water conditions on the upper Kuskokwim.

Many communities have grown to de-pend on fuel fl own by air operators like Everts Air Cargo and Lynden Air Car-go, which operate specially-equipped tanker aircraft , mainly from Kenai but also some other locations. Fuel by air is extremely costly, but there is no other choice for some communities.

Th is year there was a mild winter and a smaller snow-pack in the hills and mountains in western Alaska, which meant that the rivers opened up earlier than usual. Th at is a good thing for barge operators because they can start making deliveries earlier. However, the lower snowpack levels mean spring water lev-els are lower than usual, which isn’t good for navigation to some inland villages.

But, there’s no imminent fuel crisis because the mild winter also meant that there is still fuel inventory in the tanks for many communities. Barge operators expect that more rain during the summer will raise water levels, al-lowing deliveries to be completed.

Meanwhile, there are also changes in fuel supply networks along the inland river systems. For example, small com-munities along the Yukon River have been traditionally supplied by barge from Nenana, on the Tanana River southwest of Fairbanks. Nenana is tra-ditionally the head of navigation for the Tanana and Yukon River systems.

As long as the Flint Hills refi nery op-erated at North Pole, near Fairbanks, fuel for the Yukon valley was trucked

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from Fairbanks to Nenana on the Parks Highway, loaded on barges at Nenana, and shipped down the Tanana River to the Yukon.

In previous years the river freight service was operated by Yutana Barge Lines, but Crowley Maritime purchased Yutana and is now the major supplier. Ruby Marine, a small river freight op-erator, also operates from Nenana and serves Yukon River communities.

Closure of the Flint Hills refinery near Fairbanks has now complicated the Interior fuel supply picture. Fuel for the Yukon shipped through Nena-na will now mostly come by rail from Southcentral Alaska to Fairbanks, iron-ically right through Nenana (the rail tank cars pass within a few feet of the docks). In Fairbanks the fuel is reloaded on trucks and brought back to Nenana by highway, where it is reloaded again on the river barges.

This seemingly convoluted system is expensive, but it is actually more cost-ef-fective because there are no longer large fuel storage tanks or facilities to un-load fuel from tank cars at Nenana. The

small size of the shipments do not justify building new facilities at Nenana. Small market size and poor economies of scale are a principle reason why fuel costs to rural Alaska are so high, and the compli-cated logistics of shipping fuel through Nenana illustrates the point.

However, there are other changes un-derway. Crowley is also now bringing a significant volume of fuel to lower Yu-kon River communities from the Bering Sea, through the mouth of the Yukon. Navigation through the mouth of the river can be tricky, but the alternative of bring barges down the narrow, shal-low Tanana River from Nenana to the Yukon can be equally tricky at times.

The communities in the lower Yukon like Emmonak, St. Mary’s, and Moun-tain Village have relatively large popu-lations that can now be more efficiently supplied from the Bering Sea than Ne-nana. Upriver towns like Fort Yukon and Galena are still supplied from Nenana.

Ironic SituationThe oddest fuel transportation arrange-ment, however, is the shipment of ultra-

low sulfur fuel to the North Slope from Southcentral Alaska by a combination of rail and truck.

In this situation, crude oil is shipped from the North Slope to Valdez and is refined into ultra-low sulfur diesel at the Petro Star refinery at Valdez and trucked back to the North Slope. Al-ternately, it is transshipped by small tanker to Nikiski, made into ultra-low sulfur diesel at Tesoro’s refinery, and shipped to the slope via rail and truck.

Previously the North Slope oil pro-ducers refined their own diesel in small topping plants on the slope for themselves and contractors. However, when the US Environmental Protection Agency required use of ultra-low sulfur diesel even on the slope, it was no lon-ger cost-effective to make the fuel there. This led, ironically, to the current situa-tion where the oil producers ship crude to Valdez and truck refined products right back to the North Slope.

Recently the producing companies on the North Slope have been searching for a cost-effective alternative to this odd situation. BP has investigated using

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compressed natural gas for vehicle fuel, for example, but found it was not cost-eff ective because of the high gas liquids content of the raw North Slope gas.

Other options being considered in-clude equipping trucks to operate on liquefi ed natural gas, or LNG, which might be available on the North Slope if a small LNG plant is built to supply Fairbanks, but the special tanks and engine conversions needed for LNG im-pose costs. Also, drill rigs are a big user of diesel and fueling those with LNG may not be practical.

Another idea in the mix is building a small plant using the Fischer-Tropsch chemical conversion process to convert gas to a high-quality diesel that would meet and even exceed the ultra-low sul-fur specifi cations. Making high quality diesel from gas would not require retro-fi tting vehicles or heavy equipment that now use diesel.

Cost ComponentsWhy does fuel cost so much, particu-larly in outlying, small communities? Crowley has said that costs of the prod-uct typically are about 62 percent of

the fi nal delivered cost of heating oil, as one example. Th ose costs more than anything are infl uenced by world crude oil prices markets. Distribution costs typically amount to about 29 percent of fi nal costs. Th is varies because trans-portation costs are higher for commu-nities farther from refi neries, such as in western Alaska. More than anything, however, the lack of infrastructure, and things like weather delays, complicate the delivery of fuel and add costs. For example, some villages do not have fuel “headers” at the beach where fuel is un-loaded from a barge, so a truck is used to transport the fuel from the barge to the community’s tanks. Th is multiple handling adds costs. Finally, overhead costs typically amount to about 9 per-cent. Th is pays for the cost of employ-ees, utilities, environmental compli-ance, and many other expenses which are the normal cost of doing business.

Aside from the fuel supplier, the local distribution costs in small communi-ties, the cost of village tank farms and pumps, also add a lot of expense be-cause these facilities typically handle low volumes. “Fixed costs” are paid for

over fewer gallons sold, raising the per-gallon cost.

Th e purchasing power of large cus-tomers, or customers banding together, can make a big diff erence, too. For ex-ample, the average diesel cost for Alas-ka Village Electric Cooperative, which operates small utilities in many small communities, was $4.19 a gallon in 2013. Many fuel users in remote rural communities, lacking the purchasing power of utilities like AVEC or school districts, paid twice that.

For its part, Crowley advises its cus-tomers in smaller communities to book fuel orders early to give it and other fuel companies time to plan. Building docks and beach tie-up points increase effi -ciency for barge operators, which low-ers costs. Finally, consolidating com-munity fuel supplies at one location increases effi ciency because fuel com-panies don’t have to make deliveries to multiple locations. R

Mike Bradner is publisher of the Alaska Legislati ve Digest.

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OIL & GAS

Heavy OpportunityHeavy OpportunityHeavy OpportunityHeavy OpportunityHeavy OpportunityHeavy Opportunity

It’s sticky, gooey, gritty. And Alaska is fortunate to have a lot of it.

It’s a kind of oil known as heavy or viscous crude. Tens of billions of bar-rels of this unconventional oil exist on Alaska’s North Slope.

So far, industry has not produced much heavy or viscous oil. Companies histori-cally have focused on the Slope’s light oil, which is cheaper and easier to get out of the ground. But over the years, company experts have chiseled away at the tech-nical and cost challenges of producing heavy and viscous oil. And the Slope’s two top producers, ConocoPhillips and BP, have some exciting plans to boost produc-tion. What’s more, a new player, Hilcorp, is about to take over as operator of a fi eld with good viscous oil potential.

Major challenges remain, but it ap-pears major slugs of new oil could be entering the trans-Alaska oil pipeline in coming years. Th at’s important for Alaska, where light oil production has declined steeply. State Senator Hollis French, himself a former oil fi eld worker, has heard plenty of legislative presenta-tions about progress toward unlocking the North Slope’s heavy and viscous oil riches. Th e oil is “hiding in plain sight,” he says, sitting in shallow pools overlap-

ping the light oil reservoirs.Extracting the heavy and viscous oil

isn’t a matter of reducing the state tax burden so much as fi guring out the nuts and bolts, French believes.

“It’s just a technological challenge that will be solved,” he says. “And then look out. It’s going to be a huge, huge boom in North Slope production.”

Like Syrup and MolassesMuch of the heavy and viscous oil re-sides in geologic formations known as West Sak, Schrader Bluff , and Ugnu.

A great deal of it exists, perhaps 30 billion barrels or more. In all likeli-hood, much of the oil will remain trapped forever underground. But pro-ducing even 10 percent of it, or 3 billion barrels, would be akin to discovering a monster new oil fi eld.

North Slope oil exists in various grades, each increasingly more diffi cult to produce.

BP breaks it down this way:Light oil is almost like water, fl owing

easily. It’s found in famed Prudhoe Bay, the state’s largest oil fi eld, at upwards of ten thousand feet deep.

Viscous oil is like maple syrup. It’s viscous, meaning resistant to fl ow. Th is oil is prevalent in the West Sak and

Schrader Bluff formations, at about fi ve thousand feet deep.

Heavy oil is even more viscous, like molasses, much thicker than West Sak and Schrader crude. Heavy oil is found in Ugnu, the shallowest formation.

Aside from their thickness, uncon-ventional crudes have other trouble-some traits. Th e oil tends to be cold compared to light oil. And it oft en comes out of the ground mixed with sand, which is abrasive and thus harm-ful to production equipment.

In addition to being more expensive to produce, heavy and viscous oils have a lower market value.

But heavy and viscous oils neverthe-less are highly valuable, which explains why the industry has worked for many years on techniques to overcome the production problems.

By no means is heavy and viscous oil exclusive to Alaska. Enormous deposits exist elsewhere in the world including Canada, Russia, and Venezuela.

Conoco’s West Sak ProjectTh e West Sak viscous oil reservoir generally overlaps the ConocoPhillips-operated Kuparuk River fi eld, which is Alaska’s second-largest oil fi eld.

ConocoPhillips, BP plan major projects to produce more viscous oilBy Wesley Loy

© B

P

BP heavy oil pilot project, Milne Point fi eld.

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A good bit of West Sak viscous oil al-ready has been produced. State fi gures show production of about 71 million barrels so far.

On February 18, ConocoPhillips Alaska, Inc. announced it would pursue a new viscous oil development called Northeast West Sak, or NEWS. Th e company said the oil tax reform the Alaska Legislature passed in 2013 pro-vided incentive for the project.

Th e NEWS project involves expand-ing Kuparuk Drill Site 1H to accommo-date new wells.

Th e Alaska Department of Natural Resources on April 29 granted authoriza-tion to proceed with expanding the drill site, which occupies state land. Th e state’s approval letter says ConocoPhillips plans a 9.5-acre addition to the site, bringing the gravel pad to a fi nal size of 26.6 acres.

Plans include eighteen new wells, including fi ve producers and thirteen injectors. Th e expanded pad will have space for three additional wells at a later time, the state letter says.

Th e pad expansion will be completed in 2015, and drilling is expected to start in the fi rst quarter of 2016, the state says.

First oil will come in early 2017, with estimated peak production of nine thou-sand barrels per day, the company says.

It’s a $450 million project that will provide around 150 jobs during con-struction, ConocoPhillips says.

BP’s West End DevelopmentBP Exploration (Alaska), Inc. is consid-ering $3 billion worth of new projects under what it calls the West End Devel-opment. Th is work would be at the west end of the Prudhoe Bay fi eld, where vis-cous oil is found.

Th e overall program, if fi eld own-ers decide to go forward with it, would include 130 new wells targeting more than 200 million barrels of light and viscous oil.

Production could peak in 2022 at around 40,000 barrels per day, BP says.

Th e West End Development would involve construction of a new pad, the fi rst in more than a decade at Prudhoe Bay. Other pads would be expanded.

In addition, infrastructure and pipe-lines would be upgraded. Th is work, known as “debottlenecking,” would al-low handling of increased fl ows of oil, water, and natural gas.

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BP, as operator of the Prudhoe Bay fi eld, was planning to proceed with cer-tain work at Gathering Center 2 during this summer’s maintenance season. Th e gathering center is a major west Prud-hoe processing plant that separates oil, gas, and water coming from wells.

Th e work will help the plant deal with increased volumes of sandy, viscous oil. Upgrades include $43 million for in-stallation of equipment including sand tanks and sand jets.

Hilcorp’s Milne TakeoverProspects for heavy oil development seemed to take a setback—or perhaps a step forward—on April 22, when BP announced it would sell North Slope assets, including a controlling stake in the Milne Point oil fi eld, to Hilcorp, a Houston-based independent.

Milne Point, located about twenty-fi ve miles west of Prudhoe Bay, has been the scene of considerable heavy oil eff orts in recent years, including a pilot project to produce from the Ugnu deposit. Th e project operated from the S Pad in the Milne Point fi eld.

Ugnu is an enormous resource with

an estimated 18 billion barrels of oil in place. BP says its pilot, which ended in 2013, yielded “promising results.”

BP’s asset sale is expected to close by year’s end. While Hilcorp will take over operation of Milne Point, BP is retain-ing a 50 percent interest in the fi eld.

Hilcorp spokeswoman Lori Nelson, contacted in June, said the company’s development plans for Milne Point weren’t yet clear.

“Th ere is tremendous resource oppor-tunity at Milne Point, and Hilcorp has a

track record of unlocking production and resources from mature fi elds,” BP spokes-woman Dawn Patience says. “By retaining a 50 percent interest, BP retains an inter-est in future success we anticipate Hilcorp will achieve with Milne Point. We believe that our respective strengths put us on a path to a future with more activity and more investment on the North Slope.” R

Journalist Wesley Loy is based in Anchorage.

“ If you want to really see what the industry looks like in this little-traveled and forbidding part of North America, “Arctic Oil, photographs of Alaska’s North Slope” by Judy Patrick is the best documentary you will find...”

– Kay Cashman, Publisher of Petroleum News.

left Rigging cable, Liberty Project, July 2009

above Doyon Rig 25 sealift at West Dock, August, 2010

next Doyon Rig 25 move to Deadhorse, August 2010

94

above Eni Petroleum, Spy Island, March 2011

top right Deballasting after barge offload, West Dock, August 2011bottom right Blaze Anderson, roughneck, Parker Drilling Rig 272, February 2013next Parker Drilling Rig 272 moving crew, February 2013

135

left Rigging cable, Liberty Project, July 2009

above Doyon Rig 25 sealift at West Dock, August, 2010

next Doyon Rig 25 move to Deadhorse, August 2010

94MY FAVORITE SUBJECTS ARE PEOPLE WORKING. TO ME IT DOESN’T MATTER IF THEY ARE EQUIPMENT OPERATORS, TRUCK DRIVERS, MUD MEN, DRILLERS, ROUGHNECKS, GEOLOGISTS, BULL COOKS, MECHANICS OR COMPANY PRESIDENTS — IT’S THE PEOPLE WHO ARE THE MOST INTERESTING TO ME.left Pilebuck Gary Pickus, February 2009

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Page 115: Alaska Business Monthly August 2014
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Alaska Power AssociationCrystal Enkvist has been selected as the Executive Director of Alaska Power Association and Executive Vice President of ARECA Insurance Exchange. She is a lifelong Alaskan who has served the association as its Director of Member and Public Relations for the past fourteen years. Enkvist holds an MPA in public management and BA in journalism and public communications from the University of Alaska Anchorage.

URS Alaska

Dustin Baugham recently joined URS as a Project Administrator with six years of experience in admin-istrative and management support. Baugham’s responsibilities include billing, project controls, and subcontractor compliance.

Neal Smith joins URS as an Environmental Scientist with two years of experience. Smith provides technical studies and environmental support, including National Environmental Policy Act support, Environmental Site Assessment and Marine Mammal Protection Act support, Section 404 and Section 10 permit applications, water quality studies, and discharge monitoring and com-pliance support with EPA and Alaska Department of Conservation water quality standards.

Edmund Gaines joins URS as a Cultural Heritage Specialist/Applied Anthropologist with fifteen years of experience in all aspects of cultural resource

management and sociocultural impacts analysis.Ivy Schultz joins URS as a Geographic

Information Systems (GIS) Analyst with four years of experience in GIS including collecting, managing, processing, and presenting data for a variety of successful projects.

Fairweather, LLCFairweather, LLC appointed T i m C u d n e y a s t h e director of Deadhorse Aviation Center (DAC) at Prudhoe Bay. In addition to overseeing the opera-tions of DAC’s hangars, passenger terminal s , and twenty-three-acre laydown yard, Cudney is responsible for managing DAC’s tenant offices, dining facility, accommodations, and equipment leasing operations, as well as coordinating the actions of Fairweather’s MedEvac staging facility.

Hard Rock CafeJamie Gates was named S a le s a n d M a r ket in g Manager for Hard Rock Cafe Anchorage. She oversees the Anchorage cafe’s event, group sales, and promotional efforts. Gates has nearly twenty-three years of experience in the hospitality industry. Prior to Hard Rock, Gates was the Corporate Sales Manager for Sheraton Anchorage Hotel and Spa.

Anchorage Senior Activity CenterM a r y S h i e l d s w a s appointed as the Interim Chief Administrator of the Anchorage Senior Activity Center (ASAC). Shields is currently Chair of the Alaska Commission on Aging and is an active member of the ASAC. Prior to her retirement, she was the General Manager for Northwest Technical Services for over twenty years. Shields earned a

Bachelor of Arts degree in Psychology from Central Washington University.

Northrim Bank

Northrim Bank announces the promotion of four officers. Gerlie Monta-Guevarra has been pro-moted to Assistant Vice President, Branch Manager in Ketchikan. Monta-Guevarra has fourteen years of bank operations experience.

Catalina Haney and Fejie Monta-Carangang have both been promoted to Assistant Branch Managers in Juneau. Haney brings eighteen years of bank operations experience. Monta-Carangang started her banking career eight years ago with Northrim.

Lori Downing has been promoted to Assistant Branch Manager in Sitka. Downing began her banking career six years ago when she joined Northrim in Sitka.

APCMKim Butler was hired as an Associate Financial Planner for Alaska Permanent Capital Management in May. She provides technical assistance and client service support as she works towards completing her Certified Financial Planner certification. Butler is cur-rently finishing her Master of

RIGHT MOVES Compiled by Russ Slaten

116 Alaska Business Monthly | August 2014 www.akbizmag.com

SmithSmith

CudneyCudney

HaneyHaney

DowningDowning

Monta-GuevarraMonta-Guevarra

Monta-CarangangMonta-Carangang

ButlerButler

GatesGates

SchultzSchultz

BaughamBaugham

GainesGaines

ShieldsShields

OHMY!SLED DOGS & SOFAS & MILK

WE’RE OFF TO RURAL ALASKA

Page 117: Alaska Business Monthly August 2014

Science in Financial Planning. She graduated from UAA with a Bachelor of Business Administration in Finance.

Gere Donovan CreativeKelly McLain joined the Account Services team at the Gere Donovan Creative Anchorage office in May. Before joining, McLain was the research director and an assistant dean at the University of Alaska Anchorage. She has a a master’s degree in English and a bachelor’s degree in journalism.

US Army Corps of EngineersCaptain Andrew Scott is the new commander of the 62nd Engineer Detachment (Forward Engineer Support Team-Advance) of the US Army Corps of Engineers-Alaska District. Scott leads the small engineering field force unit to suppor t military operations at war and disaster relief mis-sions. Scott earned a bachelor’s degree in military history from the US Military Academy at West Point and master’s degree in geological engineering from Missouri University of Science and Technology.

Alaska DNR

Sara Longan of Anchorage and Steve Masterman of Fairbanks have been appointed directors in the Alaska Department of Natural Resources.

Longan has been appointed Director of the Office of Project Management and Permitting. She

has worked for the state more than nine years, most recently as Deputy Director of the permitting office.

Masterman has been appointed Director of the Division of Geological & Geophysical Surveys. He joined the division in 2013 as Division Operations Manager and since November served as Acting Director. He has worked for the State of Alaska for the past ten years.

Calista CorporationShareholder Monica James was selected as the new Chief Operating Officer for Calista Corporation in June. In the past, James s e r ve d as t h e C h i e f Financial Officer and then Vice President of business operations and admin-istration for the Alaska Aerospace Corporation. Her journey with Calista Corporation began at Yulista Holding as the Vice President of business strategy before becoming its President and CEO.

R&M Consultants, Inc.R&M announces the addition of new staff members to its Anchorage office team.

Chad Weiler, PLS, joined R&M’s Land Surveying Group as a Senior Land Surveyor in February. He has more than fifteen years of experience in all facets of field and office surveying. Weiler holds a BS in Geomatics from the University of Alaska Anchorage.

Trevor Hudson joined R&M in March as a Geologist in the Earth Sciences Department. He has three years of experience in geology and holds a BS in Geology from the University of Alaska Anchorage and an AAS in General Studies from Lord Fairfax Community College.

Steven Lewis, PE, joined R&M in March as a Project Engineer in the Waterfront Engineering Group. He has more than seven years of experience in civil and waterfront engineering and holds an MS in Coastal Engineering and a BS in Civil Engineering, both from the University of Alaska Anchorage.

Justin Rich, GISP, joined R&M in March as a GIS Specialist in the GIS Group. He has five years of experience in GIS and has an MS in Geology from the University at Buffalo, The State University of New York, and a BS in Geosciences from the University of Southern Maine.

Chris Fell, LG joined R&M in April as a Senior Geologist in the Earth Sciences Department. He has ten years of experience performing environmental and geotechnical services for private and public clients. Fell has a BS in Geology from the University of Wisconsin-Eau Claire.

Josh Phares joined R&M in April as an IT Systems Administrator. He has fifteen years of experience in IT and has a strong background in user support, upgrade projects, and process improvements. Phares has an AS in Elementary Education from the University of Phoenix.

RIM ArchitectsScott Bohne, AIA, NCARB, CSI, CCS, LEED AP and a Pr inc ipa l wi th R IM Architects, LLC, has passed the Certified Construction Contract Administrator exam. As a CCCA, Bohne understands the role of each construction partic-ipant, is sensitive to each participant’s expectations, and understands the effect that various project delivery methods have on con-struction contract administration and contractor project management.

Carlile TransportationRon Kieswether has been promoted to President of Carlile Transportation. K i e s w e t h e r j o i n e d Carlile last October as Chief Operating Officer. Kieswether’s expanded role will include setting strategic direction for Carlile’s Alaska and Lower 48 business and overseeing all opera-tions for the company. Kieswether has put his more than thirty years’ expe-rience in the transportation industry to work for Carlile.

Alaska AerospaceMatt Steele joined the Alaska Aerospace Corporation as the Vice President of Business Development. Steele has thirty-four years of experience in aero-space business development. He graduated with a BS in Physics from Kent State University in 1980 and an MBA in Technology Management from the University of Phoenix in 2004. R

RIGHT MOVES Compiled by Russ Slaten

www.akbizmag.com August 2014 | Alaska Business Monthly 117

McLainMcLain

ScottScott

MastermanMasterman

KieswetherKieswether

LonganLongan

JamesJames

BohneBohne

WWW.NAC.AERO • (800) 727-2141 •

Page 118: Alaska Business Monthly August 2014

INSIDE ALASKA BUSINESS Compiled by Russ Slaten

118 Alaska Business Monthly | August 2014 www.akbizmag.com

Alaska RailroadThe Alaska Railroad is introducing

all-inclusive dining for its GoldStar service beginning next summer, mark-ing the 10th anniversary of the Rail-road’s GoldStar Service. With the new all-inclusive package, GoldStar guests will be able to enjoy any of the fi rst-class meals off ered by the Alaska Railroad’s onboard menu, featuring a selection of local cuisine from Alaska seafood to reindeer sausage. Th e new all-inclusive off ering will incorporate meals as well as beverages, both alcoholic and nonal-coholic. In addition to locavore cuisine, the Alaska Railroad will serve local brews from Alaskan Brewing Company and Denali Brewing Company.

BP AlaskaOn the North Slope, BP is deploy-

ing an Unmanned Aerial System (UAS) technology at Prudhoe Bay, marking the fi rst time the Federal Avi-ation Administration has granted per-mission for UAS routine commercial services over land in the United States. Th e UAS will be used to perform high accuracy land surveying and mapping. Th is technology will help BP optimize the planning and implementation of maintenance programs for the North Slope infrastructure throughout Prud-hoe Bay. Targeting maintenance activi-ties on specifi c road areas will save time and address safety and reliability.

BuckleAnchorage 5th Avenue Mall an-

nounced the grand opening of Buckle in May. Th e store is Alaska’s

fi rst and only Buckle location. Known for its unique mix of on-trend clothing, shoes, and accessories, Buckle caters to style-conscious men and women seeking to express their individuality through fashion. Buckle off ers tops, footwear, and accessories from popular lifestyle labels.

Bass Pro ShopsBass Pro Shops Outpost in Anchor-

age opened in July. Th e eighty-thousand-square-foot store located at 3046 Mountain View Drive has hired two hundred associates from the An-chorage area. It off ers something for everyone who enjoys the outdoors, whether it’s camping, fi shing, hunt-ing, boating, and more. Bass Pro Shops’ uniquely designed, award-winning stores are oft en considered to be part museum, art gallery, antique store and aquarium, and centers for conservation education. Hand-painted murals wrap the store’s interior and depict famil-iar scenes of the region. In the archery range, a mural done by Alaskan artist, Susan Watkins, portrays the northern part of the Brooks Range and prime hunting terrain. A wall in the camp-ing department pays homage to the Iditarod and shows a painted vintage map of the Iditarod race trails and a sled team. A mural above the aquarium features Mount McKinley, and a tribute mural to the Alaskan bush pilots is in the footwear department and depicts a fl oat plane landing in a fi shing village. A twelve thousand-gallon freshwater aquarium is a focal point of the store and will be stocked with approximately one hundred fi sh native to the area, in-cluding arctic grayling, northern pike,

burbot, rainbow trout, Dolly Varden, arctic char, lake trout, and king salmon.

ANSEPThe Alaska Native Science and Engi-

neering Program (ANSEP) hosted two fi ve-day STEM Career Explorations sessions in June, benefi ting more than one hundred students from across the state. ANSEP brought the students to the University of Alaska Anchorage to take part in hands-on learning exer-cises and discover the many opportuni-ties available in STEM fi elds. Students participated in daily activities on topics such as terrestrial photogrammetry, engineering, and how to create a 3D building with geolocation.

BSNCBering Straits Native Corporation

(BSNC) completed an economic feasibility analysis of Port Clarence, a natural deep-water port located on the Bering Strait near the fi ft y-mile-wide expanse between Russia and Alaska in June. Th e analysis was completed by economic and engineering consultants familiar with arctic maritime needs and determined that development of Port Clarence would be economi-cally feasible if development occurred in conjunction with development of Alaska’s Outer Continental Shelf. Th e study determined that port develop-ment can be viably achieved with pri-vate investment and that Port Clarence would be an ideal staging area for oil and gas exploration in the Chukchi and Beaufort Seas.

BSNC determined that a basic deep-water port and man-camp at Port Clar-

620B East Whitney Road I Anchorage, AK 99501

Pacific Pile & Marine has a robust fleet of marine equipment including our recent

addition of a 600-Ton 4600 Ringer.

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range

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

Your Project, Our Responsibility. 24/7 Service

Page 119: Alaska Business Monthly August 2014

INSIDE ALASKA BUSINESS Compiled by Russ Slaten

www.akbizmag.com August 2014 | Alaska Business Monthly 119

ence could be operational within four years of an oil and gas industry deci-sion to pursue resource development of Alaska’s Outer Continental Shelf. Development of Port Clarence would occur with minimal dredging, minor marine disturbance, little impact to subsistence harvests, and no required maintenance dredging. Furthermore, to support the report’s concept of pri-vate development, BSNC has been ap-proached by numerous private entities interested in partnering in fi nancing development of Port Clarence.

Alaska Air GroupThe Alaska Air Group Board of Di-

rectors declared in June a two-for-one stock split to be eff ected in the form of a stock dividend. Th e additional shares were set to be distributed on July 9 to shareholders of record as of June 23, 2014. Th e stock split increases Alaska Air Group’s outstanding shares from approximately 68 million shares to about 136 million shares. Th is was Alaska Air Group’s second two-for-one stock split since going public. Th e last stock split was in March 2012.

Alaska Communicati onsThe Anchorage Glacier Pilots and

Alaska Communications hosted fi ve free baseball camps the week of June 9-13 for youth ages eight to four-teen. Anchorage Glacier Pilots players, coaches, and local volunteers taught more than 290 children hitting, pitch-ing, catching, and fi elding techniques at Mulcahy Stadium. Camp partici-pants had the opportunity to attend any Glacier Pilots home games this season

for free by wearing their camp T-shirt. Th e Left y Van Brunt Memorial Youth Baseball & Soft ball Camp is also a 2014 Alaska Communications Summer of Heroes event, as it supports youth de-velopment by providing safe, healthy environments where children can learn from positive mentors and enriching experiences.

Holland & KnightHolland & Knight announced in

June the opening of its 19th offi ce in the United States in Anchorage. Th e offi ce will initially comprise eight pro-fessionals, including partners Walter Featherly, Douglas Serdahely, Kevin Callahan, and Teresa Ridle. Holland & Knight’s Anchorage offi ce will repre-sent a broad range of clients in trans-actional, litigation, and regulatory matters. In particular, the Anchorage professionals will provide services in the following areas: corporate and cor-porate governance, employment law, real estate, environmental, mergers and acquisitions, taxation, government contracts, litigation, and regulatory matters. Signifi cant clients include one of the world’s leading energy produc-ers and various Alaska Native corpo-rations and tribes. All of the attorneys in the new offi ce were previously with Patton Boggs.

Credit Union 1Credit Union 1 announces the win-

ners of its 27th annual Bill Country-man Scholarship program in June. Th is year, Credit Union 1 awarded funds to fourteen students from communities throughout Alaska, totaling $10,000 in

scholarships toward continued educa-tion. Kari Millstein, a 2014 graduate of Kodiak High School, received a $1,500 scholarship. Recent graduates Eimy Anzueto of Ketchikan High School, Eli Shayer of West Anchorage High School, Jennifer Tuttle of South Anchorage High School, and Will Dumm of Ko-diak High School each received a $1,000 scholarship. Additionally, graduates Joshua Medina and Jenny Valdez of Ko-diak High School and Savannah Nelson of Chugiak High School each received a $500 scholarship.

USTravelUSTravel announced in June they

are joining Corporate Travel Management’s (CTM) North Ameri-can expansion plans as an acquisi-tion eff ective July 1, 2014. USTravel will serve as CTM’s Alaska and Pa-cifi c Northwest division maintaining the same leadership team and staff providing service level excellence throughout the State of Alaska and Pacifi c Northwest. President Linda Eliason and CEO Julie Crotts will both maintain their roles in USTravel. Leaning on his extensive travel man-agement experience, seventeen years ago, Mark Eliason purchased USTravel and with his wife, Linda Eliason, and established the company as USTravel Alaska LLC. Th ey built it into the largest independently owned travel management company in the Pacifi c Northwest through acquisitions and technology investments. Over the years, USTravel and CTM talked about combining resources so that USTravel could accelerate the growth of their business, brand, and culture. Eliason

620B East Whitney Road I Anchorage, AK 99501

Pacific Pile & Marine has a robust fleet of marine equipment including our recent

addition of a 600-Ton 4600 Ringer.

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range

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

Your Project, Our Responsibility. 24/7 Service

Page 120: Alaska Business Monthly August 2014

INSIDE ALASKA BUSINESS Compiled by Russ Slaten

120 Alaska Business Monthly | August 2014 www.akbizmag.com

(USTravel) and Jamie Pherous (CTM) discussed the many possibilities for le-veraging each other’s strengths. Upon Mark Eliason’s passing in September 2013, Linda continued discussions and is eager to continue Mark’s Legacy of growth and excellence through this acquisition.

Associated General Contractors

The Associated General Contractors of America joined the national Hir-

ing Our Heroes program as part of the construction industry’s eff ort to add one hundred thousand veterans over the next fi ve years. Th e new partner-ship will make it easier for construc-tion contractors to fi nd, recruit, and hire veterans.

Th e new partnership will give mem-ber fi rms access to job fairs and other recruiting tools operated by the US Chamber of Commerce Foundation’s Hiring Our Heroes program.

Th e new partnership comes at a time when two-thirds of construction fi rms report having a hard time fi nd-ing skilled workers to fi ll positions. Th e partnership with Hiring Our Heroes will make it easier for fi rms to fi ll va-cancies with highly qualifi ed workers and will be a key part of the associa-tion’s Workforce Development Plan.

Construction fi rms already hire a signifi cant number of veterans, noting that veterans are more likely to be hired in construction than non-veterans, ac-cording to federal employment data, though many fi rms report having a hard time fi guring out how to identify soldiers, sailors, and airmen that are

about to leave active duty and enter the private-sector workforce.

Th e association will begin distribut-ing information to its members and state and local chapters about the new partnership and help recruit expanding construction fi rms to participate in job fairs and other hiring events organized by Hiring Our Heroes.

EricksonRepsol tapped Erickson for fl ights

to support scientifi c expedition in Alaska. Th e aviation services provider, now operating four facilities in the state, signed a contract to transport an oil, gas, and petroleum research team throughout the North Slope region.

Erickson, a leading global provider of aviation services, announced in June that the company has signed a contract with Repsol, a multinational oil and gas company, to provide helicopter trans-port for a scientifi c research expedi-tion in Alaska’s North Slope. Th e North Slope is home to the Prudhoe Bay oil-fi eld, the largest oil fi eld and arctic drilling venture in North America.

Utilizing two of its Bell 212 helicop-ters, Erickson will provide daily trans-portation for the team of researchers and subcontractors from Deadhorse and the Prudhoe Bay area to remote areas in the region to conduct scientifi c research. Scientists will perform a number of studies, including an eff ort to monitor ice breakup and fl ood and fl ow patterns along the Colville River. Researchers and engineers from the Michael Baker Corporation, responsible for engineer-ing and constructing the Trans Alaska Pipeline System, are subcontractors for this work with Repsol.

Alaska operations are based in An-chorage with three smaller facilities in rural parts of the state, including Deadhorse, an oil and gas community in the north near the Arctic Ocean; Nome in the northwest; and Valdez on Prince William Sound in the southcen-tral region.

AHFCA statewide, regional, and commu-

nity look at major factors aff ect-ing Alaska’s housing stock released by Alaska Housing Finance Corporation identifi es severe shortcomings in state-wide housing stock. Th e AHFC 2014 Statewide Housing Assessment pro-vides policymakers with tools to iden-tify housing solutions.

New for 2014, the report includes data from professional energy audits conducted on approximately 30 percent of occupied housing in Alaska. A recent abundance of energy data compiled in AHFC’s Home Energy Rating Soft ware, combined with identifi cation of Alas-ka’s unique energy challenges, led to an increased focus on those issues.

Th e release of the 1,400-page report authored by Cold Climate Housing Re-search Center in Fairbanks, includes the following highlights: More than fi ft een thousand homes in Alaska are over-crowded or severely overcrowded; More than seventy-fi ve thousand households are cost-burdened (meaning households are spending more than 30 percent of total income on housing costs); Nearly twenty thousand homes have the lowest possible energy rating, a 1 Star.

To access the executive summary, full report, or to view it by ANCSA region or census area, visit www.ahfc.us. R

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Page 121: Alaska Business Monthly August 2014

August

� CSG West & CSG Nati onal Joint Annual ConferenceAugust 9-13—Various venues, Anchorage: Th e annual conference for the Council of State Governments National and West. Th e conference is an opportunity to work across borders to enhance knowledge and exchange ideas through policy forums on high priority public policy issues; network; and discover Alaska’s innovations through policy tours.csg.org

� IEA World Congress of EpidemiologyAugust 17-21—Dena’ina Center, Anchorage: Th e theme for this year’s congress is “Global Epidemiology in a Changing Environment: Th e Circumpolar Perspective.” Th e congress is an opportunity to visit with and listen to prominent researchers in epidemiology and public health. ieaweb.org

� 2014 Sustainable Arcti c AwardAugust 22—Dena’ina Center, Anchorage: Luncheon celebrating the Institute of the North’s Hickel Day of the Arctic. One of six nominees will be presented the Robert O. Anderson Sustainable Arctic Award in recognition of their long-time achievements balancing development of Arctic resources with respect for the environment and benefi t to communities and peoples of the North. Contact Nils Andreassen at [email protected] or (907) 786-6324. institutenorth.org/ROA

September

� Alaska Oil & Gas CongressSeptember 15-18—Anchorage: Th is comprehensive four day conference is the place to meet the players, forge new relationships, and get the information you need to capitalize on changes taking place in Alaska. Th is year is the 10th anniversary event and planning is already underway to make it a memorable and valuable experience. alaskaoilandgascongress.com

� Rural Energy ConferenceSeptember 23-25—Westmark Hotel, Fairbanks: A threeday event off ering a large variety of technical sessions covering new and ongoing energy projects in Alaska, as well as new technologies and needs for Alaska’s remote communities.akruralenergy.org

� Alaska Coaliti on on Housing and Homelessness ConferenceSeptember 29- October 1—Juneau: Events include keynote speakers and training sessions. alaskahousing-homeless.org/conference

� Alaska Community Transit/Department of Transportati on ConferenceSeptember 30-October 2—Millennium Alaskan Hotel, Anchorage: Th is annual conference address transportation information and issues around the state. act-dot.com

� Alaska Fire ConferenceSeptember 22-27—Kenai: Includes training, workshops, lectures, and a fi refi ghter competition. facebook.com/AlaskaFireConference

October

� Alaska Business Monthly’s Top 49ers LuncheonOctober 1—Dena’ina Center, Anchorage: Come honor the Top 49 Alaska companies, ranked by gross revenue, at our annual awards luncheon.Contact: Melinda Schwab, [email protected], akbizmag.com

� Museums Alaska/Alaska Historical Society Joint Annual ConferenceOctober 1-4—Various venues, Seward: Th e 2014 theme is “Milestones: Interpreting events that change the course of communities,” exploring the opportunities and challenges museums face in commemorating community milestones.resbayhistorical.org

� ACS Conventi onOctober 2-5—Hilton Anchorage, Anchorage: Th is annual convention is an opportunity to complete up to twenty-four CEUs over the three day event in all required course topics, as well as special events such as meet and greets and receptions. alaskachiropracticsociety.com

� Alaska Travel Industry Associati on Conventi onOctober 6-10—Westmark Fairbanks Hotel & Conference Center: Th e 2014 “Good as Gold” ATIA convention is for Alaska’s tourism industry leaders with delegates from tour operators, wholesalers, Alaska vendors, destination marketing organizations, and elected offi cials.alaskatia.org

� All-Alaska Medical ConferenceOctober 9-11—Sheraton Anchorage Hotel and Spa, Anchorage: A continuing medical education conference put on by the Alaska Academy of Physicians Assistants, providing up to 25 CMEs. akapa.org

� AAHPA Annual ConferenceOctober 13-17—Ketchikan: Th is is the annual conference of the Alaska Association of Harbormasters & Port Administrators.alaskaharbors.org

� Alaska Chapter of the American Fisheries Society Annual Meeti ngOctober 20-24—Centennial Hall, Juneau: Th is year’s theme is TBD. afs-alaska.org

� Alaska Chamber Annual Fall Conference & Policy ForumOctober 20-22—Girdwood: Th e state’s premier business conference. Th is year’s topics include healthcare reform and implementation, worker’s comp reform, grass roots advocacy, small business workshops, etc. alaskachamber.com

� Alaska Federati on of Nati ves Annual Conventi onOctober 23-25—Anchorage: Annual gathering of Alaska Native peoples to

discuss current news and events on a state, national and international level.nativefederation.org

November

� Associated General Contractors of Alaska Annual ConferenceNovember 12-15—Anchorage: AGC of Alaska is a nonprofi t construction trade association dedicated to improving the professional standards of the construction industry. agcak.org

� Transcending Adversity: 2014 Alaska Child Maltreatment ConferenceNovember 17—Hilton Anchorage, Anchorage: Th e annual conference of the Alaska Children’s Alliance, a nonprofi t 501(c)3 dedicated to improving community responses to child maltreatment.alaska.nationalchildrensalliance.org

� AMMA Annual Business Meeti ngNovember 17-18—Anchorage: Th e Alaska Municipal Management Association (AMMA) is a professional organization of municipal managers and administrators in Alaska; its purpose is to increase the profi ciency of municipal managers and aid in the improvement of municipal administration in Alaska.alaskamanagers.org

� Annual Local Government ConferenceNovember 17-20—Anchorage: Joint conference of the Alaska Municipal League and the Alaska Conference of Mayors.akml.org

� RDC Annual Conference: Alaska ResourcesNovember 19-20—Th e conference provides timely updates on projects and prospects, addresses key issues and challenges and considers the implications of state and federal policies on Alaska oil and gas, mining and other resource development sectors.akrdc.org

December

� ALASBO Annual ConferenceDecember 7-10—Hotel Captain Cook, Anchorage: Annual conference of the Alaska Association of School Business Offi cials.alasbo.org

January 2015

� Alaska Marine Science SymposiumJanuary 19, 2015—Anchorage: Scientists, researchers, and students from Alaska, the Pacifi c Northwest, and beyond come to communicate research activities in the marine regions off Alaska.alaskamarinescience.org

� Alaska Peony Growers Associati on Winter ConferenceJanuary 29-31—Westmark Hotel, Fairbanks: Th e Alaska Peony Growers Association is a membership organization comprised of commercial peony growers as well as those interested in the emerging peony industry in Alaska.alaskapeonies.org

AGENDA Compiled By Tasha Anderson

www.akbizmag.com August 2014 | Alaska Business Monthly 121

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By Tasha Anderson

TRAVEL

Warm August Nights Festi val

ALASKA THIS MONTH

Sponsored by the Kodiak Lions Club, the Warm August Nights Festival celebrates long summer nights and good music. Jerimiah “Doc” Myers, the local doctor

and a member of the Kodiak Lions Club, says that for the fi rst ten years, with the weather’s cooperation, the festival was called the Bear Country Music Festival, also known as Hot August Nights. “Th en the weather went south on us, and when it went down it was forty-two degrees and blowing.” Th ey determined to have the festival anyway, but many of the musicians couldn’t get to the island, since most of them weren’t local, and sound and stage equipment was shorting out and malfunctioning.

“So we had to reevaluate the program,” Myers says. “In-stead of Hot August Nights, we called it Warm August Nights. [And] if it was below fi ft y degrees, we were going to call it Tepid August Nights,” he laughs. Th e festival was also changed from being three days to just a Saturday night.

Now in its eighteenth year, the festival takes place at the Kodiak Fairgrounds. Admission is a minimum of either two cans of food or $5. Th e money is used to pay for some of the costs of the festival, but the remaining funds and all of the food are donated to two local food banks. Last year, the Warm August Night festival donated 2,400 pounds of food.

“It’s been a service project more than a fundraiser,” Myers says. “For the thousand people on our island that love music, this kind of marks summer and the center of the universe.”

Th is year’s festival is on August 9. Th e event opens at 6:30 p.m., and music starts on-state at approximately 7:30. Musi-cal guests this year include the Seth Freeman Band, Ronnie and the Tube Screamers, Greater Cause 10 years aft er, and the country Jeff Freeman Band; others oft en step up at the last moment to play.

Kodiak.org R

Bubba Myers, a member of Greater Cause, plays at a past Warm August Nights Festi val.

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www.akbizmag.com August 2014 | Alaska Business Monthly 123

By Russ Slaten

ENTERTAINMENT

Secret Saturdays

ALASKA THIS MONTH

New for 2014, the Scared Scriptless Improv troupe

has begun Secret Satur-days.

Secret Saturdays take place on the third Sat-urday of every month. In May, the troupe per-formed a teacher appre-ciation show.

Most importantly, Scared Scriptless Se-cret Saturdays are in a diff erent format each month; it could be long-form improv, musical improv, blue show, puppet show, or something else. Th e troupe says, “It’s always fresh and always diff er-ent. Th e only things we can guarantee is it will be diff erent than our other shows and it will be awesome fun!”

“Secret Saturdays are oft en an opportu-nity to explore diff er-ent forms of improv,

from shorter games to special themes. And it’s a lot of fun for the audience to see the diff erent types of improv,” says Scared Scriptless troupe member Mary Jo Mrochinski.

Scared Scriptless Improv performs at the Snow Goose Restaurant and Sleeping Lady Brewing Company on Th ird Avenue in downtown Anchorage. On August 16, doors will open at 7 p.m., and the show will start at 8 p.m. with an ap-proximate running time of sixty to ninety minutes.

Scared Scriptless is known to perform some of the edgiest improv in Alaska and is one of the state’s most experienced comedy improv troupes. Since 2000, Scared Scriptless Im-prov has entertained sold out audiences all over Alaska.

Additionally, Scared Scriptless performs the second and fourth Saturday at the Snow Goose Restaurant and Sleeping Lady Brewing Company. Performances are a comedy pow-erhouse of improvised theatre that typically involves one to four characters in a rumpus three to fi ve minute one-off scene in a fashion similar to the hit TV show “Whose Line Is It Anyway?”

scaredscriptless.com R

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124 Alaska Business Monthly | August 2014 www.akbizmag.com

By Tasha Anderson

DINING

Sweet Chalet

ALASKA THIS MONTH

Those looking for a new place to satisfy a summer sweet tooth should make

a quick stop at Sweet Chalet, a new Anchorage chocolate and sweets shop located at 300 E. Di-mond Boulevard, Suite 202, in the large pink shopping center.

Th e shop is owned and run by Ingrid, who has loved cook-ing since she was a young girl. “I loved to work in a kitchen but never [dreamt] I would become a chef or chocolatier in the future,” Ingrid says.

Aft er moving to the United States in 2005, and encouraged by her husband to fi nd work she would love, Ingrid attended the California School of Culinary Arts in Pasadena, California. Aft er graduation, she worked in California for nearly seven years, expanding her education at Madame Chocolate, “which was run by a well-known chocolatier Hasty Torres,” Ingrid says.

“During the period of internship in Madame Chocolate Shop, I fell in love with chocolates. From that moment on, I had a dream; my dream was to become a chocolatier.”

A dream she offi cially achieved in January of this year. Stopping by to visit is well worth the time: “We provide free samples to our fi rst time visiting customers,” Ingrid says, and all of the products are made from scratch.

Th e inventory of delicious confections changes oft en, In-grid says. “We are [always in the process] of making a new menu for our customers.”

As the most popular item in the shop, Ingrid always keeps aurora chocolate bonbons in the case.

Sweet Chalet is happy to fi ll orders for corporate gift s or at events. “Place and confi rm your order as soon as possible, especially during the holiday seasons,” Ingrid says, as her treats can be in high demand.

sweetchaletalaska.com R

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Top: The sixteen piece choc-olate gift box. Right: Ingrid paints a chocolate mold.

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ANCHORAGE9 Alaska Renewable Energy FairThis event has live music, crafts, local food, information booths, children’s activities, and workshops while educating about and promoting renewable energy in Alaska. Downtown Anchorage Delaney Park Strip, 11 a.m. to 9 p.m. alaskarenewableenergy.org

16 Dog Days of Summer Block PartyEvent-goers can enjoy a Stupid Pet Tricks contest, canine-related products and service exhibits, rescue organizations demonstrations, and more. Peratrovich Park and E Street, Noon to 4 p.m. anchoragedowntown.org

COFFMAN COVE9-10 “By the Sea” Arts & Seafood FestivalAll Alaskans are invited to participate with fine arts, crafts, music, fresh seafood, fisherman’s poetry, farmers’ market, and a beer/wine garden. Prizes raffled hourly. Downtown Coffman Cove. ketchikanarts.org

FAIRBANKS1-9 Tanana Valley State FairActivities include a demolition derby, pet show, quilted wall art contest and show, livestock contests and exhibitions, live enter-tainment, food, and vendors. Tanana Valley State Fairgrounds. tananavalleystatefair.com

22-24 Tanana Valley Crane FestivalAnnual fall crane migration celebration includes an art show, seminars, reception and membership picnic, workshops, nature walks, a crane calling contest, and a Cranes on Parade costume and puppet show. Creamer’s Field Migratory Waterfowl Refuge, various times. creamersfield.org

HAINES28 Mardi Gras PartyThe party includes costume prices, Cajun music, and refreshments. It takes place at the Fogcutter, Harbor, and Pioneer bars in the evening. haines.ak.us/events

GIRDWOOD9 Alyeska Blueberry Mountain Arts and Music FestivalA celebration of the lush blueberry season with more than two dozen arts and crafts booths, live music and blueberry concoctions. Blueberry picking and eating is encouraged. Alyeska Resort, Noon to 8 p.m. alyeskaresort.com

JUNEAU30 Annual Food Festival JAHCConsumers, growers, and producers of local foods come together to encourage local sustainability through backyard gardening and small business initia-tives. Nonprofits sell produce and baked goods containing locally grown or harvested ingredients. Juneau Arts & Culture Center, 9 a.m. to 2 p.m. jahc.org

KETCHIKAN1-3 Blueberry Arts FestivalBlueberry pet and doll parade; blueberry food contests; art exhibit opening; the Gigglefeet Dance Festival; adult and children’s runs; a slug race for children twelve and younger; battle of the bands; blueberry beard and moustache contest; and poetry contest. ketchikanarts.org

PALMER8/21-9/1 Alaska State FairExhibit halls of livestock, produce, arts and crafts, live music, carnival games, fresh produce, awesome treats, and enough vendors to choke a moose. Alaska State Fairgrounds alaskastatefair.org

SITKA1-2 Sitka Seafood FestivalCelebrate wild Alaskan seafood with local and celebrity chefs, bands, fish-ermen, foodies, and local food vendors. Activities include fish head tossing, Alaskan-style highland games, and cooking demos. sitkaseafoodfestival.org

8-9 Homeskillet FestHome Skillet Records annual summer music festival takes place indoors and features an eclectic group of musicians such as Budo, Vox Mod, Hightek Lowlives, The Wool Pullers, Playbow Spaceman, Benjamin Verdoes, and others. Sea Mountain Golf Course. homeskilletfest.com R

EVENTS CALENDAR Compiled By Tasha Anderson

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126 Alaska Business Monthly | August 2014 www.akbizmag.com

MarketMarketMarket SquaresSquaresSquaresSquaresSquaresSquaresFor Informati on About Adverti sing in Market Squares

Call (907) 276-4373 or Toll Free (800) 770-4373ALASKA NATIVE CORPORATIONS SPECIAL SECTION� Regional Corporations Review� Aggregated Economic Impact � Village Corporation Spotlights� The Matriarchal Side of Leadership� Alyeska Pipeline’s Alaska Native Program � Native Studies in Alaska’s Higher Education � Scholars and Scholarships Continue to Increase� Alaska Native Regional Corporation Directory� Alaska Native Village Corporation Listings

BUILDING ALASKA SPECIAL SECTION� Alaska Native Corporation Construction Projects:

Buildings and builders.� Growth in the Mat-Su Borough: Construction

continues in the region.� Using Aerial Cranes in Construction: When these

are the only way to go.� Rural Construction Review: Ports, boardwalks,

schools, and community buildings.

FEATURE ARTICLES & COLUMNS� Energy: Lowering Costs in Rural Alaska: More

Arctic energy solutions.� Environmental Services: Continuing series in

Water & Wastewater: Bethel� Financial Services: Wealth Management for

Individuals and Corporations.� Health & Medicine: Remote Healthcare: Special

programs in village clinics.� Insurance: Employee Health Coverage Options:

Latest news for employers.� Oil & Gas: Fueling Industry Operations: The

energy going into the oilfields.� Oil & Gas: Alternative Fuels: New ways of using

natural gas to make liquids.� Oil & Gas: Alaska Native Corporation companies

in the petroleum industry.� Telecom & Tech: Asset Tracking in Transportation

Industry: A focused look at new technology in use.� Transportation: Barge Services: Alaskans rely on

barges for cargo needs across all industries. � Transportation: Snowfighters Institute helps

contractors excel at snow and ice management.� From the Editor | Inside Alaska Business | Right

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September in Alaska Business Monthly

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AK Business Ad-Homer&HMT_raster.pdf 1 6/5/2014 1:26:56 PM

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Page 127: Alaska Business Monthly August 2014

Alaska is well known as one of the nation’s top oil and gas producers, but some residents might be surprised to learn how greatly the sources of available energy vary by

region. Costs and consumption are also strikingly diff erent by region, refl ecting variation in climate, infrastructure, and use patterns driven by price.

Th e “2011 Alaska Energy Statistics Report,” prepared for the Alaska Energy Authority by the Institute of Social and Econom-ic Research at the University of Alaska Anchorage in December 2013, details these striking diff erences in Alaska’s energy pic-ture by region.

In Southeast Alaska, where high annual rainfall makes hy-droelectric a popular choice for local utilities, prices are low and average annual use in some communities is well above the national average. At least 69 percent of Southeast communi-ties receive at least a portion of their electricity generated from hydroelectric capacity. Southeast residential customers pay the lowest average per-kilowatt-hour energy rates in Alaska, with some paying as little as nine cents per kilowatt hour. However, in the 31 percent of Southeast communities that rely solely on fuel oil for electricity, rates can be as high as seventy-fi ve cents per kilowatt hour. Southeast communities with the lowest rates averaged 14,900 kilowatt hours per customer compared to the national average of 11,280.

Th e Railbelt region, which is defi ned by the Alaska Rail-road’s route system from Seward and Whittier to Fairbanks, is the state’s most populous region, and not surprisingly, also the biggest consumer of energy. Th e region is home to 76 percent of the state’s population and uses 78 percent of the state’s en-ergy. Th e main source of electricity in the region is natural gas, but this fact can be deceiving. Fairbanks residents don’t have access to natural gas, relying instead on fuel oil and coal, and

paying much higher rates than their southerly counterparts. Rates within the region range from thirteen to twenty-two cents per kilowatt hour, with higher rates paid where natural gas isn’t available.

In rural areas, the reliance on fuel oil for electricity is high. Consequently, residents of rural areas pay higher rates and also use substantially less electricity than their urban counter-parts. Th e state’s Power Cost Equalization program provides a per-kilowatt-hour subsidy to rural residents, which helps bring down the cost, but the majority of rural residents still pay more than anywhere else in Alaska. Consumption rates in rural com-munities are the lowest in the state; residents of the Yukon-Kuskokwim/Upper Tanana region averaged just 3,840 kilowatt hours per year. R

NaturalGas58%

Hydro20%

Wind 0.3%

Oil16%

Coal5.7%

Net Generation by Fuel Type by Certified Utilities (Mwh), 2011

Alaska’s Energy Profi le Varies Greatly by Region

Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

ALASKA TRENDS By Amy Miller

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

www.akbizmag.com August 2014 | Alaska Business Monthly 127

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Page 128: Alaska Business Monthly August 2014

GENERAL Personal Income -- Alaska US $ 4thQ13 37,179 36,923 36,649 1.45%Personal Income -- United States US $ 4thQ13 14,251,060 14,173,058 14,055,505 1.39%Consumer Prices -- Anchorage 1982-1984 = 100 2nd H13 213.91 210.85 206.61 3.53%Consumer Prices -- United States 1982-1984 = 100 2nd H13 233.55 232.37 230.34 1.39%Bankruptcies Alaska Total Number Filed April 48 48 78 -38.46% Anchorage Total Number Filed April 36 22 47 -23.40% Fairbanks Total Number Filed April 8 9 19 -57.89%

EMPLOYMENT Alaska Thousands April 337.12 336.92 337.02 0.03%Anchorage & Mat-Su Thousands April 188.72 189.07 187.92 0.43%Fairbanks Thousands April 43.00 42.66 43.61 -1.40%Southeast Thousands April 35.61 34.57 35.73 -0.34%Gulf Coast Thousands April 36.57 35.86 36.08 1.36%Sectorial Distribution -- Alaska Total Nonfarm Thousands April 329.3 325.5 326.4 0.89% Goods Producing Thousands April 46.8 46.1 43.7 7.09% Services Providing Thousands April 282.5 279.4 282.7 -0.07% Mining and Logging Thousands April 17.9 17.5 17.5 2.29% Mining Thousands April 17.4 17.2 17.1 1.75% Oil & Gas Thousands April 14.3 14.3 14.1 1.42% Construction Thousands April 14.9 14.4 15.6 -4.49% Manufacturing Thousands April 14.0 14.2 10.6 32.08% Seafood Processing Thousands April 9.9 10.6 6.7 47.76% Trade/Transportation/Utilities Thousands April 61.3 61.3 62.2 -1.45% Wholesale Trade Thousands April 6.5 6.4 5.9 10.17% Retail Trade Thousands April 36.2 35.2 35.2 2.84% Food & Beverage Stores Thousands April 6.4 6.4 6.0 6.67% General Merchandise Stores Thousands April 9.9 9.7 9.8 1.02% Trans/Warehouse/Utilities Thousands April 20.4 19.7 21.1 -3.32% Air Transportation Thousands April 5.8 5.7 5.6 3.57% Information Thousands April 6.1 6.2 6.0 1.67% Telecommunications Thousands April 4.1 4.1 3.9 5.13% Financial Activities Thousands April 11.6 11.6 13.0 -10.77% Professional & Business Svcs Thousands April 29.2 28.6 27.9 4.66% Educational & Health Services Thousands April 47.3 47.6 47.9 -1.25% Health Care Thousands April 33.5 33.9 33.5 0.00% Leisure & Hospitality Thousands April 30.3 29.9 29.5 2.71% Accommodation Thousands April 6.2 6.0 6.7 -7.46% Food Svcs & Drinking Places Thousands April 19.7 19.5 18.8 4.79% Other Services Thousands April 11.4 11.3 11.4 0.00% Government Thousands April 83.5 82.9 84.8 -1.53% Federal Government Thousands April 14.7 14.6 15.1 -2.65% State Government Thousands April 27.0 26.8 26.9 0.37% State Education Thousands April 8.7 8.6 8.7 0.00% Local Government Thousands April 41.8 41.5 42.8 -2.34% Local Education Thousands April 23.9 23.6 24.1 -0.83% Tribal Government Thousands April 3.5 3.5 3.4 2.94%Labor Force Alaska Thousands April 360.60 363.57 359.73 0.24% Anchorage & Mat-Su Thousands April 199.66 201.40 198.55 0.56% Fairbanks Thousands April 45.48 45.49 46.16 -1.47% Southeast Thousands April 38.14 37.62 38.09 0.14% Gulf Coast Thousands April 39.48 39.01 38.87 1.58%Unemployment Rate Alaska Percent April 6.5 7.3 6.3 3.17% Anchorage & Mat-Su Percent April 5.5 6.1 5.4 1.85% Fairbanks Percent April 5.5 6.2 5.5 0.00%

Year Over Year

Change

YearAgo

Period

Previous ReportPeriod

(revised)Latest Report

PeriodPeriodUnitsIndicator

ALASKA TRENDS By Amy Miller

128 Alaska Business Monthly | August 2014 www.akbizmag.com

Page 129: Alaska Business Monthly August 2014

Southeast Percent April 6.6 8.1 6.2 6.45% Gulf Coast Percent April 7.4 8.5 7.2 2.78%United States Percent April 5.9 6.8 7.1 -16.90%

PETROLEUM/MINING Crude Oil Production -- Alaska Millions of Barrels April 16.09 16.43 15.67 2.65%Natural Gas Field Production -- Alaska Billions of Cubic Ft. April 8.04 8.29 8.40 -4.28%ANS West Coast Average Spot Price $ per Barrel April 107.36 107.91 104.58 2.66%Hughes Rig Count Alaska Active Rigs April 10 13 8 25.00% United States Active Rigs April 1835 1803 1755 4.56%Gold Prices $ Per Troy Oz. April 1299.09 1336.32 1,485.49 -12.55%Silver Prices $ Per Troy Oz. April 19.71 20.74 25.20 -21.78%Zinc Prices Per Pound April 2.03 2.01 0.914 122.01%

REAL ESTATE Anchorage Building Permit Valuations Total Millions of $ April 65.2 65.6 92.06 -29.17% Residential Millions of $ April 20.2 13.3 18.68 8.12% Commercial Millions of $ April 38.5 27.8 73.37 -47.53%Deeds of Trust Recorded Anchorage--Recording District Total Deeds April 746 554 1234*GeoNorth -39.55% Fairbanks--Recording District Total Deeds April 182 160 294 -38.10%

VISITOR INDUSTRY Total Air Passenger Traffic -- Anchorage Thousands April 319.50 374.32 321.35 -0.58%Total Air Passenger Traffic -- Fairbanks Thousands April 69.09 94.82 64.72 6.75%

ALASKA PERMANENT FUND Equity Millions of $ April 50789.60 50399.30 46,434.60 9.38%Assets Millions of $ April 51898.50 51109.30 47,354.60 9.60%Net Income Millions of $ April 262.50 806.10 289.4 -9.30%Net Income -- Year to Date Millions of $ April 320.50 288.90 852.4 -62.40%Marketable Debt Securities Millions of $ April 66.50 -17.30 89.7 -25.86%Real Estate Investments Millions of $ April 69.00 13.40 55.70 23.88%Preferred and Common Stock Millions of $ April 28.30 5.00 454.4 -93.77%

BANKING (excludes interstate branches) Total Bank Assets -- Alaska Millions of $ 1stQ14 5,477.64 5,394.16 5,121.48 6.95% Cash & Balances Due Millions of $ 1stQ14 347.62 141.17 274.72 26.54% Securities Millions of $ 1stQ14 139.05 1,753.74 135.91 2.31% Net Loans and Leases Millions of $ 1stQ14 2,517.48 2,543.77 2,404.90 4.68% Other Real Estate Owned Millions of $ 1stQ14 18.63 17.58 22.19 -16.04%Total Liabilities Millions of $ 1stQ14 4,731.67 4,656.83 4,380.81 8.01% Total Bank Deposits -- Alaska Millions of $ 1stQ14 4,070.91 4,046.21 3,857.32 5.54% Noninterest-bearing deposits Millions of $ 1stQ14 1,612.83 1,623.39 1,497.80 7.68% Interest- bearing deposits Millions of $ 1stQ14 2,458.08 2,422.82 2,359.52 4.18%

FOREIGN TRADE Value of the Dollar In Japanese Yen Yen April 102.51 102.27 97.78 4.84% In Canadian Dollars Canadian $ April 1.05 1.11 1.02 2.94% In British Pounds Pounds April 0.60 0.60 0.65 -7.69% In European Monetary Unit Euro April 0.72 0.72 0.77 -6.49% In Chinese Yuan Yuan April 6.17 6.14 6.25 -1.28% Notes: 1. Source of Anchorage Deeds of trust (GeoNorth) is cited in the data field. 2. Banking data has been updated to include Alaska State Banks and Alaska’s sole federally chartered, Alaska-based bank, First National Bank Alaska

Year Over Year

Change

YearAgo

Period

Previous ReportPeriod

(revised)Latest Report

PeriodPeriodUnitsIndicator

ALASKA TRENDS By Amy Miller

www.akbizmag.com August 2014 | Alaska Business Monthly 129

Page 130: Alaska Business Monthly August 2014

130 Alaska Business Monthly | August 2014 www.akbizmag.com

AE Solutions .........................................113Alaska Air Cargo ................................... 37Alaska Oil & Gas Congress ........... 100Alaska Photobooth Company .........126Alaska Printer’s Supply .......................28Alaska Rubber .....................................111Alaska USA Federal Credit Union .....31Alaska USA Insurance Brokers ......... 33American Fast Freight ........................... 3American Marine/PENCO ............... 127Arctic Branding & Apparel .................34Arctic Office Products (Machines) . 64Arctos ....................................................110ASRC Energy Services .....................109Avis ................................................123, 125Bering Air .............................................123Bering Shai Marine LLC ......................99Bering Straits Native Corp. ................ 61Brand Energy & Infrastructure ........115Calista Corp. ................................... 73, 79Carlile Transportation Systems ........91Chris Arend Photography ............... 130City Electric Inc. ................................... 41Clarion Suites | Quality Suites .......122

Construction Machinery Industrial LLC .....................................2

Cornerstone Advisors ......................... 19Cruz Construction Inc. ........................49Dan Tech Services................................56Davis Constructors & Engineers Inc. .30Delta Airlines ..........................................11Donlin Gold .............................................51EHS-Alaska ............................................83Emerald Alaska ....................................80Engineered Solutions Group ............ 48Explore Fairbanks.................................22First National Bank Alaska .................. 5Florcraft Carpet One........................... 35GCI ................................................113, 132Global Diving & Salvage Inc. .............99Great Originals Inc. ...............................71Homer Marine Trades Association 126Island Air Express ...............................122Judy Patrick Photography ................ 114Lifewater Engineering Company ......69Little Red Services Inc. .................... 105Lynden Inc. ....................................... 9, 93Matanuska Electric Co. (MEA) ..........39

MFCP - Motion Flow Control Products, Inc. ................................... 41

Microcom ............................................... 57Modern Dwellers

Chocolate Lounge.........................124MTA Communications ........................ 55Municipal Light & Power (ML&P).... 44N C Machinery ......................................45NANA Regional Corp. .........................59New York Life .........................................13North Slope Telecom Inc. .................. 55North Wind Inc. ....................................71Northern Air Cargo ................... 116, 117Offshore Systems Inc. ......................101Ouzinkie Native Corp........................126Oxford Assaying & Refining Inc. ....125Pacific Alaska Freightways ................29Pacific Pile & Marine .......118, 119, 120Paramount Supply .............................126Parker, Smith & Feek ..........................131Peak Oilfield Service Co. ................106Pen Air .....................................................89Personnel Plus ....................................124Polar Supply Co .................................... 77

Port of Anchorage ............................... 53Quality Asphalt Paving (QAP) ...........28Ravn ALASKA .......................................23RIM Architects .......................................17Ritchie Brothers Auctioneers

(America) Inc. ...................................47Samson Tug ............................................95Scan Office ............................................ 21Sealaska Corp. .......................................65SeaTac Marine Services ......................95SGS ..........................................................80Shannon and Wilson Inc ....................85Shred Alaska ..........................................67Span Alaska Consolidators ................32Stellar Designs Inc..............................126Taiga Ventures .......................................17Turnagain Marine Construction ... 100Tutka LLC ................................................69UIC Bowhead-Crowley LLC ..............97UMIAQ ....................................................39URS Corp. ...............................................79Washington Crane & Hoist ................15Waste Management ...........................78Yukon Equipment .................................27

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Celebrating 25 Years in Alaska

Page 131: Alaska Business Monthly August 2014

Insuring Alaska’s Industry

Different by choice. Unique by tradition.

CommerCial insuranCe • employee Benefits • surety • life & DisaBility insuranCe • personal insuranCe

www.psfinc.com

3800 Centerpoint Drive, Suite 601 | Anchorage, AK 99503 | 907.562.2225 | 2233 112th Avenue NE | Bellevue, WA 98004 | 425.709.3600

Supporting Industry and Economic Development in Alaska with insurance, employee benefits, surety, and risk management consulting.

Celebrating 25 Years in Alaska

Page 132: Alaska Business Monthly August 2014