Vol. 8, No. 25 • Anchorage, Alaska ... · see KUDOS page A15 JUDY PATRICK see ... Dreco 147 SDC Rig cold stacked EnCana Cook Inlet Basin – Onshore Marathon Oil Co. (Inlet Drilling

page

11MMS rejects $18 million inGulf of Mexcio bids

Vol. 8, No. 25 • Anchorage, Alaska www.PetroleumNews.com Week of June 22, 2003 • $1

● N O R T H A M E R I C A N G A S

● N O R T H A M E R I C A N G A S

● G O V E R N M E N T

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BP

The Badami oil field on the North Slope of Alaska will be shutdown for two years. See story on page A9.

Badami mothballed for two years

I N S I D ELooking for another Pogo 14

Alberta eyes Alaska liquids 7

Alaska gas authority meets 7

Lapp wants partner for Delta Junction 11

YPC proposes 2.2 billion cubic foot project 7

Industry presses to lower barriersUnited States and Canada see regulations as hampering access to supply

By GARY PARK Petroleum News Calgary Correspondent

he United States and Canadian natural gas sec-tors have found common cause in pressing gov-ernments to grant access to off-limits areaswhich they see as holding the key to supply chal-

lenges. The Natural Gas Supply Association of the United

States and the Canadian Association of PetroleumProducers both stepped up their lobbying followingjoint meetings in Washington, D.C., last week.

Natural Gas Supply Association President R. SkipHorvath said June 11 that despite a projected surge in

U.S. gas drilling to 23,000 wells this year from 16,000in 2002 “production will not likely increase.”

“The new supplies we bring on-line will only off-set natural declines,” he warned.

The U.S. industry has mounted a growing argu-ment that severe access restrictions to gas resources inthe Gulf of Mexico and the Rocky Mountains areforcing producers to expand their production intomore technically challenging and higher-cost areas.

The Natural Gas Supply Association has pointedout that 40 percent of the gas found on federal land issubject to restrictions, while no acreage along the Eastand West Coasts is available for E&P operations.

T

see BARRIERS page A17

Finally, it’s a goFunding deal with aboriginals boosts Mackenzie Delta gas pipeline momentum

By GARY PARK Petroleum News Calgary

Correspondent

anadian Arctic nat-ural gas could beflowing to southernmarkets between

2008 and 2010 under abreakthrough fundingdeal with NorthwestTerritories aboriginalsthat clears a major obstacle to the C$4 bil-lion Mackenzie Gas Project.

Stalled for eight months by complexnegotiations, the pact brings developmentof 6 trillion cubic feet of Mackenzie Deltagas within reach after decades of dashed

hopes. Proponents said

June 18 that a prelimi-nary information pack-age has now been sub-mitted to regulatorsand should be fol-lowed by a full appli-cation in 2004, launch-ing a possible three-year phase of studies

and public hearings into an 800-milepipeline from the Delta to a terminus innorthern Alberta.

The pipeline itself is expected to costC$4 billion, with another C$1 billion ear-marked for field development.

Transocean to pull seven rigs forinspection after equipmentfailure in deepwater GOM

Big offshore drilling contractor Transocean said it will takeseven of its deepwater rigs out of service to inspect the sameriser system that apparently failed on its Discoverer Enterprisedrillship in the Gulf of Mexico last month.

“Once the investigation and inspections are complete, thecompany will determine what modifications, if any, will berequired,” Transocean said June 16.

Transocean was drilling a ninth development well at the BP-operated Thunder Horse field Mississippi Canyon Block 822when in the early morning of May 21 the drilling riser separatedbetween the Discoverer Enterprise and the wellhead.

The Houston-based company said it would be another two or

AOGA: Kudos to JuneauAlaska oil industry thanks administration, Legislature, for work this year

By KRISTEN NELSON Petroleum News Editor-in-Chief

ast year when the Alaska Oil and GasAssociation hosted the annualAOGA-Anchorage Chamber ofCommerce luncheon the audience

included candidates for state office. AndAOGA member companies told that audi-ence, “there were two things that werenecessary to keep Alaska competitive: thatwas permit reform and fiscal certainty,” Judy Brady,the association’s executive director, said at this year’sluncheon.

What those elected did this year in Juneau, Bradysaid June 16, is “probably the most amazing break-through in permit reform in this state in at least 20years. It was an amazing, amazing breakthrough.

“It’s probably one of the toughest ses-sions that I’ve ever seen. It was also verystrong and important for fiscal certainty.These are the things that are going to makea difference,” Brady said.

Future not certain Kevin Meyers, president and chief exec-

utive officer of ConocoPhillips Alaska, saidthe oil industry faces challenges in the stateand there are still “significant questions …

about how and when the state of Alaska will resolvethe fiscal gap.”

Alaskans need to promote a positive investmentclimate, he said, including access to the right acreage:“Elimination of key portions of the main exploration

Anadarko undecidedabout hot ice drilling

THIS PAST WINTER AnadarkoPetroleum in conjunction with MaurerTechnology and the U.S. Department ofEnergy drilled the first dedicated hydrateresearch well in Alaska, 20 miles south ofthe Kuparuk River oil field. The well waspart of a three-well program to evaluate theNorth Slope’s subsurface hydrate potentialand to test Anadarko’s Arctic drilling platform, designed toprotect the tundra while solving some of the problems associ-ated with tundra access in the region’s short winter drillingseason.

The company’s spokesman in Alaska, Mark Hanley, toldPetroleum News June 6 that “The cost to drill was higher than

see TRANSOCEAN page A5

CTransCanada chiefexecutive officer HalKvisle: In exchangefor lending theAboriginal PipelineGroup C$80 million,the Delta gas ownerswill, among otherthings, give Kvisle’sfirm an option to buy5 percent of thegasline project.

Underpinning the June 18breakthrough, Calgary-based

pipeline TransCanada willlend C$80 million to the

Aboriginal Pipeline Group tocover a one-third share of

preliminary engineering andenvironmental studies.

see DEAL page A17

LJUDY BRADY

see KUDOS page A15

JUD

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see INSIDER page A17

A2 PETROLEUM NEWS • WEEK OF JUNE 22, 2003RIG REPORT

Rig Owner/Rig TypeRig No. Rig Location/Activity Operator or Status

Alaska Rig StatusNorth Slope - Onshore

Doyon DrillingDreco 1250 UE 14 (SCR/TD) Milne Point, drilling S-pad BP

Dual completions MPS-26, 16, 10Sky Top Brewster NE-12 15 (SCR/TD) Stacked, Endicott Island BPDreco 1000 UE 16 (SCR) Stacked, Deadhorse AvailableDreco D2000 UEBD 19 (SCR/TD) Alpine, drilling CD2-58 ConocoPhillipsOIME 2000 141 (SCR/TD) Kuparuk, drilling 1C-184 ConocoPhillips

Nabors Alaska DrillingTrans-ocean rig CDR-1 (CT) Stacked, Prudhoe Bay AvailableDreco 1000 UE 2-ES (SCR) Prudhoe Bay, 18-03B BPMid-Continent U36A 3-S Stacked, Prudhoe Bay AvailableOilwell 700 E 4-ES (SCR) Prudhoe Bay, B-17 BPDreco 1000 UE 7-ES (SCR/TD) Kuparuk, 3S-24 (Palm) ConocoPhillipsDreco 1000 UE 9-ES (SCR/TD) Prudhoe Bay, V-117 BPOilwell 2000 Hercules 14-E (SCR) Stacked, Prudhoe Bay AnadarkoOilwell 2000 Hercules 16-E (SCR/TD) Stacked, Camp Lonely AvailableOilwell 2000 17-E (SCR/TD) Stacked, Point McIntyre AvailableEmsco Electro-hoist -2 18-E (SCR) Stacked, Deadhorse AvailableOIME 1000 19-E (SCR) Stacked, Deadhorse ConocoPhillipsEmsco Electro-hoist Varco TDS3 22-E (SCR/TD) Stacked, Milne Point AvailableEmsco Electro-hoist Canrig 1050E 27-E (SCR/TD) Stacked, Deadhorse AvailableEmsco Electro-hoist 28-E (SCR) Stacked, Deadhorse AvailableOIME 2000 245-E Stacked, Kuparuk ConocoPhillips

Nordic Calista ServicesSuperior 700 UE 1 (SCR/TD) WOA F-10 BPSuperior 700 UE 2 (SCR) Milne Point, L-1A BPIdeco 900 3 (SCR/TD) Stacked, Kuparuk 1Q pad Available

North Slope - Offshore

Nabors Alaska DrillingOilwell 2000 33-E (SCR/TD) Northstar Is., NS-16 BP

SeatankersDreco 147 SDC Rig cold stacked EnCana

Cook Inlet Basin – Onshore

Marathon Oil Co.(Inlet Drilling Alaska labor contractor)Taylor Glacier 1 Kenai Gas Field, KBU43-7X Marathon

Inlet Drilling Alaska/Cooper ConstructionKremco 750 CC-1 Stacked, Kenai Available

Nabors Alaska DrillingRigmasters 850 129 Swanson River, KSGSF#3 UnocalNational 110 UE 160 (SCR) Stacked, Kenai AvailableContinental Emsco E3000 273 Hansen #1 ConocoPhillips

Aurora Well ServiceFranks 300 Srs. Explorer III AWS 1 Stacked, Nikiski Available

Evergreen Resources AlaskaWilson Super 38 96-19 Pilot 1 Houston EvergreenEngersol Rand 1 Idle Evergreen

Cook Inlet Basin – Offshore

XTO Energy (Inlet Drilling Alaska labor contract)National 1320 A Idle IdleNational 110 C (TD) Well C-43-14 XTO

Nabors Alaska DrillingIDECO 2100 E 429E (SCR) Osprey, Redoubt Shoal RU #4RD Forest Oil

Unocal (Nabors Alaska Drilling labor contractor)Not Available

Kuukpik5 Rigging up, Tyonek platform ConocoPhillips

Mackenzie Rig StatusMackenzie Delta-Onshore

Akita EqutakDreco 1250 UE 63 (SCR/TD) Stacked Petro-Canada

64 Stacked Available

Central Mackenzie ValleyAkita/SAHTUOilwell 500 51 Stacked, Norman Wells Available

Nabors DrillingOilwell 500 62 Stacked, Norman Wells Available

Alaska - Mackenzie Rig ReportThe Alaska - Mackenzie Rig Report as of June 18, 2003.

Active drilling companies only listed.

Rig start-ups expected in next 6 monthsAuroraAWS 1 Mobilization on the west side of Cook Inlet anticipated for the end of

June or beginning of July, 2003.

XTOPlanning to frac the Hemlock in June, 2003

SeatankersSDC will move later this summer to Herschel Island for Encana

TD = rigs equipped with top drive units WO = workover operations CT = coiled tubing operation SCR = electric rig

This rig report was prepared by Wadeen Hepworth

Baker Hughes North America rotary rig counts*

June 6 May 30 Year AgoUS 1054 1059 847Canada 268 258 180Gulf 106 110 108

Highest/LowestUS/Highest 4530 December 1981US/Lowest 488 April 1999Canada/Highest 558 January 2000Canada/Lowest 29 April 1992

*Issued by Baker Hughes since 1944

The Alaska - Mackenzie Rig Report is sponsored by:

Courtesy Offshore DiversCook Inlet Platform

Petroleum News (ISSN 1544-3612) Week of June 22, 2003Vol. 8, No. 25

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PETROLEUM NEWS • WEEK OF JUNE 22, 2003 A3ON DEADLINE

EXPLORATION & PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A9FINANCE & ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A6GOVERNMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A13LAND & LEASING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A11NORTHERN MINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A14NORTH AMERICAN GAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A7ON DEADLINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A3

Issue Index

Message from the publisherPetroleum News, formerly Petroleum News Alaska, is a weekly newspaper that covers

the North American energy market with regional reporting preferences in the followingorder: Alaska, northern Canada, western Canada, Gulf of Mexico, continental UnitedStates, eastern Canada and Mexico. Between April 6 and Dec. 31, Petroleum News isadding more and more oil and gas news outside of its prime coverage areas of Alaska andnorthern Canada but will not reduce the amount of attention it gives to those primaryareas. Input from readers is welcome. Please email your comments, suggestions and newstips to Kay Cashman at [email protected]

GOVERNMENTANWR camp awaits Senate energy bill

It’s virtually certain that the U.S. Senate’s version of an energy bill won’tcontain a provision to open the coastal plain of the Arctic National WildlifeRefuge to oil and gas exploration, but it appears that theSenate will pass a bill, and that’s hopeful news for explo-ration supporters, said Roger Herrera, Arctic Power’sWashington, D.C., coordinator.

“Debate in the Senate will not involve our issue at all,”Herrera told Petroleum News June 11.

But the House’s energy bill does contain a proposal toopen the coastal plain of ANWR for exploration. Once theSenate passes its own version, the bills will be combinedin conference. Ideally, the blended version would approveANWR drilling, Herrera said.

“The ANWR camp is optimistic,” he said.Earlier in the year, it appeared the Senate might not pass an energy bill at

all, Herrera said, but now debate is far enough along that the prognosis for a

RUN PHOTO OF: Roger Herrera

see ANWR page A5

ROGER HERRERA

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A4 PETROLEUM NEWS • WEEK OF JUNE 22, 2003ON DEADLINE

SERVICE & SUPPLY

‘Umiat Hilton’ back in businessMike Tolbert, president of Umiat Commercial Co., told Petroleum News June

13 that the ‘Umiat Hilton’ (no connection to the Hilton Hotel chain) in Umiat,Alaska, is back in business thanks to an agreementwith PGS Onshore to use PGS’s sleeper andkitchen facilities on the other side of the Umiatairstrip.

The Umiat lodge’s sleeper and kitchen facili-ties were destroyed by fire June 10.

“Our phones will be up shortly, but otherwisewe are totally up and running,” Tolbert said. “Wecan house and feed our guests at the PGS camp,”which “they pulled in there this spring.”

Tolbert said the lodge’s fueling depot wasintact and all the generators had been salvaged.

“Our intention is to rebuild,” he said.Umiat is a small community about 150 miles southeast of Barrow on Alaska’s

North Slope. The lodge is a popular spot for oilfield exploration crews.About 20 people were staying at the lodge but no one was hurt.

Umiat, Alaska, is back in business thanks to an agreement with PGS Onshore to usePGS’s sleeper and kitchen facilities on the other side of the Umiat airstrip. The Umiatlodge’s sleeper and kitchen facilities were destroyed by fire June 10. (Photo takensummer 2001.)

Umiat is a smallcommunity about 150

miles southeast ofBarrow on Alaska’s

North Slope. The lodgeis a popular spot foroilfield exploration

crews.

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● E N V I R O N M E N T & S A F E T Y

Prudhoe pipeline spillclean-up complete

PETROLEUM NEWS ANCHORAGE STAFFP Exploration (Alaska) spokesmanPaul Laird told Petroleum News June18 that cleanup of the pipeline spill atthe North Slope’s Prudhoe Bay field is

complete, “pending subsidence of floodingin the area, resulting from spring break-up.”

Laird said the “area remains boomed —triple-boomed — and sheens are beingskimmed as they appear. Once the floodinghas subsided, soil testing will be performed,and a determination will be made as towhether remediation is required.”

Environmental damage is expected to beminimal to none, he said. “Wildlife hazingin the area continues, as does monitoring ofthe spill area.

“A sleeve was placed over the section ofpipe where the leak occurred, and produc-tion from Y & P Pads resumed” on June 14,Laird said. Some 10,000 barrels of oil a dayis produced from pads Y and P.

The Alaska Department ofEnvironmental Conservation has updated to143 barrels (6,000 gallons) the estimatedvolume of unprocessed liquids (three-phaseliquid) released from the 24-inch under-ground pipeline at a caribou crossing atPrudhoe Bay. The spill estimate includessome 36 barrels (1,500 gallons) of crude oiland some 107 barrels (4,500 gallons) of pro-duced water, the department said May 30.

The time of the spill is unknown. APrudhoe Bay field operator noticed the spillduring routine inspections and reported it tothe department May 27.

BP originally estimated the release at 500gallons (12 barrels) of unprocessed fluids.

The pipeline carries unprocessed fluidsfrom Prudhoe Bay well pads P, Y and H toGathering Center 1.

The department said the cause of therelease is suspected to be corrosion, but that

has not been confirmed. BP shut in the pads feeding product to

Gathering Center 1 through the rupturedline, the department said. Alaska Clean Seas,the North Slope spill cooperative, has beenactivated and is working to delineate thespill impacted area, to block culverts to thespill site to contain and limit impacts and todeter wildlife from the area.

The release was to tundra, gravel and asmall pond and the department said thatsnow drift over the impacted area andpipelines is believed to have limited wildlifeimpact; no wildlife impacts have beenreported.

Waiting on final volume numberBP Exploration (Alaska) spokesman

Daren Beaudo told Petroleum News June 10that BP “mobilized quickly and cleaned upat a quick pace so that when rapid breakupoccurred over the weekend we were in aposition to manage it.” When breakuplooked imminent, he said, “we doubled ourcontainment efforts to make sure that smallamounts of oil wouldn’t be a containmentproblem.”

BP still doesn’t have a good final volumenumber, Beaudo said. The DEC numbers —1,500 gallons of crude oil and 4,500 gallonsof produced water — are the working esti-mate and, as of June 18, were still the num-bers BP was using. There is still meltingsnow in tanks up there, he said.

Preliminary findings indicate that corro-sion caused the leak, he said, but there has-n’t been visual confirmation yet and BPwon’t make an official conclusion on thecause until the final investigation is filed.

Beaudo said that BP doesn’t “anticipateany long-term impact to the environment asa result of the spill.

“The cleanup crews did a great job,” hesaid. ●

B

Contractors, under the direction of Alaska Clean Seas, assess the spill at the North Slope’sPrudhoe Bay field. In the background is the caribou crossing under which the pipelines —and the pipeline which leaked — pass.

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PETROLEUM NEWS • WEEK OF JUNE 22, 2003 A5ON DEADLINE

● P I P E L I N E S & D O W N S T R E A M

Marathon, Unocaldispute pipeline useCompanies argue rights to ship gas through Kenai-Nikiski line


arathon Oil and a subsidiary ofUnocal are partners in the newKenai Kachemak Pipeline whichwill begin moving gas from the

companies’Ninilchik field to Kenai, Alaska,later this summer. But the newly discoveredgas needs to move beyond Kenai, andMarathon is the sole owner of the 16-mileKenai-Nikiski Pipeline, which conveys gasto the Agrium fertilizer plant and the lique-fied natural gas plant at Nikiski, and to con-nection points with the line which runs intoAnchorage.

On May 30 Marathon petitioned theRegulatory Commission of Alaska, askingthe RCA not to change the status quo of theKenai-Nikiski line, which is not currentlyregulated as a pipeline carrier. In 1971,Marathon told the RCA in its filing, theKenai-Nikiski pipeline was owned 50 per-cent by Marathon and 50 percent by Unocal.The joint owners applied to the AlaskaPublic Utilities Commission in 1971 toexempt the Kenai-Nikiski pipeline from thecertification requirement and other require-ment, of AS 42.05 (Public Utilities andCarriers) because the pipeline was beingused primarily to transport natural gas toMarathon and Unocal business operations.

Marathon told the RCA that effectiveDec. 1, 1994, it became the 100 percentowner of the line, except for the northern-most 0.8 mile segment of the pipeline,which continued to be owned 50-50 byUnocal and Marathon.

Marathon wants to move own gas Marathon told the RCA that it intends to

move its own gas from the Kenai KachemakPipeline through the Kenai-NinilchikPipeline to its existing customers, the LNGplant, Enstar and the Tesoro AlaskaRefinery. Marathon said the connection withthe Kenai Kachemak Pipeline “will notinvolve any new sales contract or agree-ment, or any alterations of Marathon’sarrangements with its existing customers.”

Marathon said it has recently receivedinquiries from third parties about shippinggas on the Kenai-Nikiski line and “is con-cerned that such third party shipments couldalter the regulatory status quo” of the Kenai-Nikiski line as determined by the 1971 reg-ulatory order. Marathon said it may apply inthe future for a certificate of public conven-ience and necessity authorizing the Kenai-Nikiski Pipeline “to operate as a pipelinecarrier” under AS 42.06 (Pipeline Act), but“at the current time, Marathon will maintainits existing uses of KNPL.”

Marathon asked the RegulatoryCommission of Alaska “to issue an order

declaring that the intended connection ofKNPL with KKPL … and Marathon’s con-tinued use of KNPL to deliver its own gas toits existing facilities and customers does notrequire any further regulatory approval oraction by Marathon.”

Unocal asks for emergency relief Unocal objected and filed June 12 asking

for emergency relief from the commissionrequiring Marathon to provide gas trans-portation on the Kenai-Nikiski pipeline.Unocal said Marathon has been transportingUnocal gas on the Kenai-Nikiski pipelineunder a 1998 agreement, but has recentlyasked about terminating that agreement.

Unocal told the commission thatMarathon’s conduct will impair Unocal’sability to provide gas to Enstar under a con-tract approved by the commission in 2001and, by this winter, limit Unocal’s ability tocontinue to deliver contracted supplies toAgrium.

“The longer range effect of Marathon’sconduct will be to limit or eliminate compe-tition from other suppliers in the Cook Inletsales market and, potentially, to limit com-petition in the exploration and productionmarkets as well,” Unocal said.

The pipeline being built now, the KenaiKachemak Pipeline, does not deliver gas tocustomers, Unocal said, but only to an inter-connection point with the Kenai-KachemakPipeline and the Alaska Pipeline Co., a lineused to serve Enstar. Unocal said Marathonhas provided transportation services forUnocal gas “for a number of years” on theKenai-Ninilchik Pipeline.

Unocal said that Marathon’s motion tothe commission makes it clear thatMarathon “intends to use KNPL to transportto market Marathon’s own share of the samesouthern Kenai production. … while at thesame time foreclosing Unocal’s access to thepipeline for the same purpose…”

Unocal said the commission has theauthority to require Marathon to transportUnocal’s gas and to make the Kenai-NikiskiPipeline subject to the commission authorityfrom which it was partially exempted in1971 because it then carried primarily natu-ral gas owned by the pipeline owners tofacilities owned by the pipeline owners.

And, because the Kenai KachemakPipeline is expected to be in operationsoon, Unocal asks for emergency relief,requesting that the commission issue bySept. 1 an interim order denyingMarathon’s motion, and requiring theKenai-Nikiski Pipeline to transport Unocalgas. Unocal said that once the KenaiKachemak Pipeline begins operation,Unocal will have significantly increasedvolumes of gas that it needs to have movedon the Kenai-Nikiski Pipeline. ●

M

FINANCE & ECONOMYWilliams completes $1.1 billion sale,receives $510 million in cash from buyer

Williams has completed the sale of its 54.6 percent ownership interest in Tulsa-based Williams Energy Partners L.P. to Delaware Group in a $1.1 billion transac-tion, Williams said June 17.

The buyer, a limited partnership recently formed by the private equity firmsMadison Dearborn Partners and Carlyle/Riverstone Global Energy and PowerFund II, paid about $510 million in cash at closing, Williams said.

In addition, the transaction has the effect of removing $570 million of the part-nership’s debt from Williams’ consolidated balance sheet.

Williams said it expects to realize a pre-tax gain of at least $270-to $285 mil-lion on the deal, which the company said will be reported as a discontinued oper-ation in its 2003 second quarter financial results.

Williams, which has been selling assets to help pay down its considerable debt,said the company has now received about $2.75 billion in cash from asset salesthat have been closed or announced.

“Each sale, along with our recent financing, are precise steps toward a strongerfoundation for a redefined Williams,” said Steve Malcolm, Williams’ chairman,president and chief executive officer.

—PETROLEUM NEWS HOUSTON STAFF

three weeks before the riser is repaired anddrilling can resume at Thunder Horse, theGulf’s largest-ever discovery with an esti-mated 1 billion barrels of recoverable oil.

About two-thirds of the 6,000-foot riserstring was recovered, the company said,adding that the metal likely would be heat-treated to for additional strength.

On location at zero dayrate Meanwhile, the Discoverer Enterprise

remains on location at Thunder Horse “atzero dayrate” to BP while the investigationcontinues into the specific cause of theincident. At a dayrate of $198,000, thatmeans the cost to Transocean could runover $9 million based on the number ofdays the company expects the drillship tobe out of service.

As a precaution, Transocean said it hasscheduled downtime to inspect seven otherrigs that use the same riser: DiscovererSpirit, Discoverer Deep Seas, DeepwaterDiscovery, Deepwater Frontier, Deepwater

Millennium, Deepwater Pathfinder and theDeepwater Expedition. Four are in theGulf of Mexico, two in Brazil and one inWest Africa.

The company said downtime for theseven drilling rigs likely would not belengthy.

For the second quarter ending June 30,Transocean said it expects revenues “at orslightly below” first-quarter revenues of$616 million because of rig downtime anda $10-million loss due to a labor strike inNigeria.

As far as net income, however, the con-sensus among analysts is that Transoceanwill make $0.07 per share in the secondquarter compared to $0.15 per share or$47.2 million in the prior quarter.

Transocean is the world’s largest off-shore drilling contractor with more than170 full and partially owned and managedmobile offshore drilling units, inlanddrilling barges and other assets utilized insupport of offshore drilling activitiesworldwide.

—PETROLEUM NEWS HOUSTON STAFF

continued from page A1

TRANSOCEAN

bill is good. He said the Senate hasreached agreement on key points suchas ethanol-use requirements, nuclearplant subsidies and conservation meas-ures targeting a savings of one millionbarrels of oil a day.

Senate Floor debate on the energybill raged until June 13, but the matterhas been tabled to allow the Senate to

debate Medicare reforms, according toKristen Pugh, press secretary to Sen.Lisa Murkowski.

Pugh said the Senate would return tothe energy bill debate sometime follow-ing the July 4 recess. She said SenateEnergy Committee Chairman PeteDomenici’s goal is to have the bill readyto go to conference by the Thanksgivingbreak.

—STEVE SUTHERLIN, Petroleum News associate editor


ANWR

A6 PETROLEUM NEWS • WEEK OF JUNE 22, 2003FINANCE & ECONOMY

PARIS, FRANCESharp upward revision in world oil stocksbriefly pushes July oil futures below $30

The International Energy Agency rattled world oil markets June 13 by pump-ing another 78.8 million barrels into its global inventory, raising the total to 2.44billion barrels.

The findings, based on high U.S. crude runs, briefly pushed July contracts onthe New York Mercantile Exchange below $30 a barrel.

But the Paris-based agency said commercial stocks in the 30 industrializedmember countries belonging to the Organization for Economic Cooperation andDevelopment were still close to five-yearlows entering May.

The IEA said its revisions “do little toease the tight U.S. gasoline situationheading into the peak summer drivingseason.

“The message remains the same:OECD commercial stocks are low andneed to build in advance of peakdemand,” the report said.

World oil demand for 2003 remains unchanged at 77.9 million barrels per day,but economic recovery should add another 1 million barrels per day later in theyear, the IEA said.

On the supply side, the IEA reported that OPEC output in May was 26.43 mil-lion barrels per day, with Iraq, Nigeria and Venezuela — all hit by disruptions —boosting production by 150,000 to 200,000 barrels per day.

It said Iraqi volumes are now at 750,000 barrels per day, but projections of adoubling by mid-year are “overly ambitious.”

Estimates of non-OPEC supplies for the third quarter are 50.3 million barrelsper day.

Matthew Simmons, president of investment bank Simmons & Co., told econ-omists in Prague this month that OPEC holds “all the future supply cards,”although Mideast growth may be limited.

He also questioned assumptions that non-conventional oil will meet worlddemand for decades, noting that heavy oil needs “remarkable amounts of energyto convert into usable energy.”

—GARY PARK, Petroleum News Calgary correspondent

● D O H A , Q A T A R

OPEC keeps productionceiling unchanged

By ANWAR FAURQI Associated Press Writer

PEC producers agreed June 11 tomaintain their current production lev-els through the end of July, when theyplan to meet again to assess the

impact of rising Iraqi oil exports andwhether to change output targets.

The possibility that the Organization ofPetroleum Exporting Countries could cutproduction levels at its next meeting on July31 helped push oil prices above $32 a barrelin New York for the first time since mid-March. Even as it decided to maintain itstarget production ceiling at 25.4 million bar-rels a day, OPEC urged member states tostop exceeding their production quotas.

Attracted by high prices, the 10 OPECnations, excluding Iraq, have exceeded theirdesignated quotas by 1.5 million barrels aday, according to Obaid bin Saif al-Nasseri,oil minister of the United Arab Emirates.

That means the group is actually pump-ing 26.9 million barrels onto the marketevery day.

Cartel president Abdullah bin Hamad al-Attiyah, who is also Qatar's oil minister, saidOPEC would reassess the impact of Iraq'spostwar return to the market at the July 31meeting.

“Then we will have some options —either to cut production or not. That is whatwe need to decide,” al-Attiyah said.

Some ministers are worried that earlyaction must be taken to avoid a price crash

once Iraq re-enters the market, and othersare confident that OPEC's current produc-tion can continue unchanged for severalmonths. The decision appeared an accom-modation of sorts.

“The conference decided to maintaincurrently agreed production levels withstricter compliance of designated quotas,”OPEC spokesman Omar Farouk Ibrahimtold reporters.

Gasoline prices could rise If OPEC members comply with the quo-

tas, some analysts say U.S. consumers mayhave to pay more per gallon as demandincreases during the summer.

Iraq, which was excluded from OPEC'squota schedule during the 12 years of U.N.sanctions, says it hopes to export 1 millionbarrels a day by the end of June and 2 mil-lion barrels a day by the end of the year.

Analysts say that is too optimistic giventhe state of Iraq's oil industry.

“The pace and the extent of the return ofIraqi crude to the market remain unclear,”OPEC chief al-Attiyah said in his openingspeech to the June 11 meeting, at which Iraqwas not represented.

Talking to reporters before the decisionto roll over output, al-Attiyah warned thatOPEC must act in time to accommodateIraq. “We should not wait until the crisiscomes,” he said. “Iraq will come to themarket, that's their right. We have to helpthem and we also have to make room forthem.” ●

OThe findings, based on high

U.S. crude runs, briefly pushedJuly contracts on the New York

Mercantile Exchange below$30 a barrel.

PETROLEUM NEWS A7WEEK OF JUNE 22, 2003

north american gaswww.PetroleumNews.com

ANCHORAGE, ALASKA

Rapid storage increase couldimpact gas prices this summer

Rapid build of U.S. natural gas storage means that gas prices couldfall below $5 per thousand cubic feet for a portion of this summer,energy analyst Stephen Smith from the independent Houston, Texas,research firm Stephen Smith Energy Associates said June 16.

Smith said the 125 billion cubic feet increase in storage during thefirst week of June was “off the charts” to the high side of his model.

“It suggests that storage build data may have been missing orunderstated for the one or two prior weeks,” Smith said. “So the mar-ket may have panicked a week too early.”

Analysts had expected a price correction on demand erosion fol-lowing the winter heating season.

“But we had expected a multiple week sequence of large deficitreductions ... with downward pressure on prices for several weeksrather than the precipitous one-week price decline that occurred,”Smith said.

For the week ending June 13, Smith had projected a gas build of142 billion cubic feet, bringing total storage to 1.466 trillion cubicfeet. However, that would still be 247 billion cubic feet short of thefive-year average of 1.713 billion cubic feet between 1994 and 1998.

Still, the downward pressure on gas prices last week was “unlike-ly to ease much” because of the anticipated 142 billion cubic footbuild, which would exceed the norm by “a massive” 51 billion cubicfeet, Smith said.

“If this summer is normal or remains on the mild side as someweather forecasters expect, we expect stronger-than-normal storagebuilds to continue for several weeks and the seasonal storage deficitto continue to shrink,” he added.

Smith said the odds are increasing “that gas prices could fall below$5/Mcf for some part of the summer.”

● A L B E R T A , C A N A D A

Alberta eyes Alaska liquidsLeaders make case for access to ethane in Arctic gas shipments

By GARY PARK Petroleum News Calgary Correspondent

lberta’s petrochemical industry is being pro-moted as a beneficiary of both Arctic gasdevelopment and the province’s oil sands sec-tor.

Peter Lougheed, chief architect of the petrochemi-cal business during his time as Alberta premier from1971 to 1983, made his case at a June 9 conferencethat northern gas and the oil sands should be part of an“incredible new page” in expanding a chemicalsindustry that currently employs 8,000 and generatesC$7 billion (US$5.2 billion) in annual sales.

He said oil sands products and gas liquids from theArctic, especially Alaska, could be vital feedstock tobuild on Alberta’s 25 years of success in building apetrochemicals business.

Conceding he could face a tough fight on both

fronts, Lougheed did not know how oil sands opera-tors would react to diverting some of their products topetrochemical plants, but he insisted Alberta shouldnot allow Alaska’s liquids-rich gas to flow past petro-chemical plants without “requiring that the ethane betaken out.”

Current Alberta Premier Ralph Klein has alreadysaid he will insist on getting a “pound of flesh”through mandatory ethane extraction from any Arcticgas, either North Slope or Mackenzie Delta, that isshipped into or through the province.

Constrained ethane threatens petrochemicalexpansion in Alberta

Lougheed’s stand has been bolstered by the find-ings of a report by energy consultant T.J. McCann &Associates, commissioned by the Alberta Energy

A

see LIQUIDS page A8

Gas authority board selectschair, begins search for CEO

The board of the Alaska Natural Gas Authority held its first meet-ing June 16 in Anchorage, selected Andy Warwick of Fairbanks aschairman and Scott Heyworth of Anchorage as vice chairman, votedto advertise for a chief executive officer for the authority and sched-uled its next meeting for July 7. Some members of the group also saidthey planned to be in Valdez June 28 to hear a presentation by gasbuyers from the Asian market.

The authority, established by ballot initiative 3 in November’sgeneral election, is charged with designing, constructing, operatingand maintaining a natural gas pipeline system from the North Slopeto Prince William Sound. The board is also authorized to market andship gas.

The board heard a presentation from Yukon Pacific (see story page4) and a preliminary report from Harold Heinze on a work plan he

HOUSTON, TEXAS

see AUTHORITY page A8

● A N C H O R A G E , A L A S K A

Yukon Pacific proposes 2.2billion cubic foot projectWould market a mix of LNG, propane, plus petrochemical feedstock


he momentum for a natural gas project hasgone to a pipeline through Canada to theLower 48. In fact, saysYukon Pacific Corp.’s

Ward Whitmore, the compa-ny has been asked over thelast year and a half why any-one would want to look at aliquefied natural gas projectat all.

At that point, Whitmoretold the Alaska Natural GasDevelopment Authority (seerelated story this page), Yukon Pacific completelychanged its concept. The company, which holdsmajor permits for a gas pipeline to Valdez and aliquefied natural gas plant at Anderson Bay, was

formerly looking just at “taking gas from Prudhoedown to Valdez, liquefying it and shipping it toAsia,” he said June 16.

“About 18 months ago we completely changedour concept and we are now talking about trans-porting a mix of hydrocarbons to Valdez,”Whitmore said. The hydrocarbons would be sepa-rated at Valdez and sold to various end markets,with LNG going to the West Coast and Asia, andpropane going to Asia. Ethane and butane wouldbe used as feedstock for the petrochemical indus-try and in natural gas liquids could be injected intocrude oil.

The objection to just an LNG project, Whitmoresaid, was that it had to be so big to be economicthat “it couldn’t get in the market in a timely man-ner.” The new goal is “to try to hit multiple mar-kets in order to get the hydrocarbons into the mar-

T

WARD WHITMORE

see YUKON PACIFIC page A16

A8 PETROLEUM NEWS • WEEK OF JUNE 22, 2003NORTH AMERICAN GAS

Research Institute, warning the Alberta gov-ernment that constrained ethane supplythreatens expansion of the petrochemicalindustry.

Ethane, once converted into ethylene atfour large plants in the province, becomesthe essential building block for furtherchemical productions.

In its latest report on 2002 reserves, theAlberta Energy and Utilities Board saidadequate ethane volumes “are available tomeet forecast demand, despite a tighteningof supplies stemming from the opening ofa fourth ethylene plant in fall 2000 and thestart of shipments on the Alliance gaspipeline at the end of 2000.”

The board's 2001 reserves reportshowed Alberta demand for ethane climb-ing to 289,000 barrels per day, based on allfour ethylene plants running at 90 percentof capacity. That is up from the current220,000 barrels per day, of which 96 per-cent is used by petrochemical facilities.

Industry sources have previously esti-mated that Alaska gas could provide about100,000 barrels per day of ethane, or closeto one-third of current Alberta consump-

tion when chemical plants are operating atfull capacity.

They have also projected that theSyncrude Canada and Suncor Energy oilsands complexes could provide up to45,000 barrels per day of ethane equiva-lent following completion of expansionsover the next few years and that couldtranslate into as much as 1.5 billion poundsa year of ethylene.

Liquids going to Chicago Over the objections of petrochemical

companies, the Alliance line delivers its40,000 barrels per day of liquids directly toChicago — enough to support half theneeds of another major ethylene operationin Alberta.

The McCann study, including participa-tion by Nova Chemicals, Shell ChemicalsCanada and Suncor Energy, has proposeda three-stage C$8.5 billion project to estab-lish a new branch of the petrochemicalindustry, based on 200,000 barrels per dayof synthetic crude and ethylene byproductfrom the oil sands.

The complex would produce more than1 million tonnes a year of ethylene andpropylene, along with benzene and para-xylene, both valuable chemical feedstocks.The output would also include smallamounts of diesel and jet fuel.

Alberta Energy Research Instituteresearch director Duke du Plessis said theproposal requires an alliance of the gov-ernment and petrochemical sector toachieve a common vision and long-termstrategy, with government help in financ-ing infrastructure, along with royaltybreaks on oil sands production and taxbreaks to allow a quick write-off of con-struction costs.

Du Plessis estimated the value of rawbitumen at US$5-$10 per barrel and minedsynthetic crude at $20 per barrel, but refin-ing those products into gasoline raises thevalue to $25-$30 per barrel.

Converting a barrel of bitumen into eth-ylene, propylene and benzene boosts itsworth to somewhere in the $40-$60 range,he said.

Using mined oil sands or bitumen as analternative to ethane has been the object ofa joint industry-Alberta government studythat examined the feasibility of a singleintegrated oil sands upgrader, refinery andpetrochemical complex near Edmonton.

Paul Clark, vice president of researchand technology for Nova Chemicals, urgedthe government to put more effort intodeveloping a long-term strategy, includingcompetitive regulatory and permittingprocesses, by encouraging production offeedstock from oil sands that would makeAlberta competitive with the U.S. GulfCoast.

He said the government could play animportant role by promoting the develop-ment of technologies to extract the unde-sirable aspects of synthetic crude and turnthem into feedstocks. ●


LIQUIDSprepared under a contract with the adminis-tration.

Steve Porter, deputy commission of theAlaska Department of Revenue, reviewedthe board’s authority and funding, and sug-gested Warwick, a former commissioner ofthe Department of Administration, as tem-porary chair. The board later selectedWarwick as chair. Heyworth, selected asvice chair, led the public campaign for pas-sage of ballot measure 3.

In addition to Warwick and Heyworth,board members include: Warren Christian ofAnchorage, David Cuddy of Anchorage,Bob Favretto of Kenai, John Kelsey ofValdez and Dan Sullivan of Anchorage.

Goal: development The board has until June 16, 2004 — a

year from its first meeting — to produce adevelopment plan.

The board discussed what it was lookingfor in a CEO, including stature, knowledge,the ability to assemble information and theability to work with the administration.

The board was allocated only $150,000,

and Warwick said the CEO needs to besomeone who can come up with a proposalto go to the governor and Legislature foradditional funding.

There was some board discussion aboutasking for information or presentations fromthe companies who own North Slope gas.

Kelsey is a member of the port authorityboard and he said the port authority hasoffered the North Slope producers 50 centsand 75 cents for gas. What it boils down to,Kelsey said, is that there is no requirement instate leases that the gas be developed, whichmeans the leaseholders have no incentive tomove forward with gas commercialization.

Heinze said that if the Alaska StrandedGas Development Act negotiations are suc-cessful and the gas pipeline to the Lower 48is built, the authority could do other things.If the negotiations fail, he said, the authorityhas the capability to bring the project tomarket.

Porter commented that a number of yearsago when he was in the oil and gas industrythere were three projects being discussed,two very robust and one an also-ran. Neitherof the top two projects worked out, he said.The also-ran was Alpine.

—KRISTEN NELSON,Petroleum News editor-in-chief


AUTHORITY


exploration&productionwww.PetroleumNews.com

EASTERN NORTH SLOPE, ALASKABP to mothball Badami

The state of Alaska has approved BP Exploration (Alaska)’s appli-cation to suspend production from the company’s North SlopeBadami field and mothball the unit’s facilities for a two year periodbeginning Aug. 1 and ending June 30, 2005. The Badami complex isthe easternmost production facility on the slope and is accessible onlyby ice roads in the winter, water in the summer and air year-round.

In paperwork filed in mid-May as part of its fifth plan of develop-ment for Badami, BP said the field’s 1,350 barrel per day productionrate “cannot offset field operating costs … making it uneconomical tocontinue operations.” (See related stories in the March 2 and March 9editions of Petroleum News.) The company said at $24.72 per barreloil -- the “average oil destination value” in 2002 -- its estimated annu-al cash loss would exceed $1.6 million.

Field production, which has been steadily dropping each year, isexpected to continue to decline, BP said.

When Badami was initially brought on-line in September 1997, itwas expected to hold 120 million barrels of recoverable reserves andproduce 35,000 bpd. Production peaked “very briefly” at 18,000 bpdin 1998, BP told the state, citing problems with the reservoir whichproved to be “more highly compartmentalized than originallythought.”

Several options for Badami“We will continue to evaluate various options for Badami. The

two-year suspension will give us time to do that,” BP spokesmanDaren Beaudo told Petroleum News June 13.

The paperwork BP submitted to the state identified several optionsfor Badami, including selling it to a third party, hosting BP’s proposedoffshore Liberty development or use by the nearby Point Thomsonproject.

Warm shutdown modeThe Badami field has seven production wells, six of which are cur-

rently producing, two gas injection wells and a disposal well. Thecomplex also includes a dock, airstrip, an oil and gas processing facil-ity on a gravel pad and in-field gravel roads, a 25-plus-mile oil exportpipeline to Prudhoe Bay and a utility pipeline to Endicott.

The facilities can re-inject produced gas and water. BP said grossfield construction and development costs totaled approximately $300million.

BP plans to suspend operations at Badami as soon as the NorthSlope barging season commences, place the facilities in a “warmshutdown mode, back pressure the gas injection wells, and replace oilin the export line with dry gas.” However, the camp, water treatmentfacilities, Class-1 injection well, communications, incinerator andairstrip will continue operation. On-site staff consisting of “multi-skilled operators with skills in mechanical, electrical, heavy equip-ment maintenance, and environmental and medical response will fre-quently monitor all shut-in wells, BP said.

Production was suspended once before in February 1999 due tolow temperatures and concerns about the pipeline freezing since itwas carrying much less oil than originally expected.

The drilling program at Badami was suspended in May 1999 afterthe wells had significantly underperformed.

—KAY CASHMAN, Petroleum News Publisher & Managing Editor

● N O R T H S L O P E , A L A S K A

Future: Safer, smaller,thicker, farther awayKevin Meyers on North Slope in 10-15 years: gas the ‘Big Kahoona’


he work will be safer. Development will be moreenvironmentally friendly. More production willbe from smaller fields. Andmore production will be

heavy oil. And gas development— the “Big Kahoona” ofremaining North Sloperesources — may even be areality.

That, Kevin Meyers told theResource DevelopmentCouncil's annual meeting June13 in Anchorage, is what hesees in his crystal ball when he looks at what the NorthSlope will be like in 10-15 years. Meyers, presidentand chief executive officer of ConocoPhillips Alaska,also warned that “predicting the future is always a

risky endeavor. But it's especially so in the oil and gasindustry.”

Meyers said he thinks “we're going to see continu-ous improvement in safety.” In 2002, he said,ConocoPhillips Alaska had its best safety year ever:the lost-work-day incident rate dropped by 34 percent;compared to 2000 it dropped by 80 percent. The same,he said, was true for the company's total recordableincident rate.

Meyers said the safety goal is yet to be met: “we'renot where we need to be until we're accident free.”

For impact on the environment, Meyers comparedfootprint: 65 acres of gravel to develop 2,000 acres offield in the 1970s, compared to less than 100 acres ofgravel to develop more than 40,000 acres of field atAlpine in 1990. “And I think we're going to keep onimproving on that over time,” he said.

Footprints aren't the only thing that's getting small-

T

KEVIN MEYERS

● O F F S H O R E B R I T I S H C O L U M B I A

B.C. government pushesfor offshore developmentBut no discoveries have been made; industry interest seems limited

By DON WHITELEYPetroleum News Contributing Writer

ith an eye cast northwards to the successfuldevelopment of Alaska’s Cook Inlet oil andgas reserves, the British Columbia govern-ment is going full steam ahead with a plan to

create a multi-billion dollar offshore oil and gas indus-try.

Provincial Premier Gordon Campbell wants athriving industry by 2010, and a timeline just pub-lished by the province’s new offshore oil and gas com-mittee shows a complete regulatory framework, aswell as a fiscal and royalty regime, in place by March2004.

By the same date, the provincial government wantsa technical timeline in place for seismic work, with aview to having the first seismic crews operating by2005. Socioeconomic issues, including settlementswith First Nations over treaty claims, are all given thesame 2004 end-date.

The Canadian province that at one time frettedopenly about pollution risks from the stream of oiltankers plying the waters off its West Coast nowappears to have accepted oil and gas as its savior andis looking forward to its first communion. A federal-provincial environmental moratorium on offshoreexploration, in place for more than decade, is expect-

W

see FUTURE page A10

see OFFSHORE page A10

FOR

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er, Meyers said: so are remaining fields. “Looking to the future I think we're going

to find that development's going to come

more and more from smaller fields,” he said.In 1990, less than 7 percent of North Slopeproduction was from fields producing lessthan 100,000 barrels per day, while “today,we're looking at about 40 percent of our pro-duction coming from fields under 100,000barrels a day.”

By 2010, Meyers said, present numberssuggest about 60 percent of production onthe North Slope will come from fields pro-ducing less than 100,000 bpd.

These smaller fields are more of an eco-nomic challenge, he said: “It's going to takea combination of good technical innovation,cost reductions and good fiscal policy toensure that these developments actuallybecome a reality.”

More heavy oil production More of the North Slope's production

will also come from heavy oil in 10-15years, Meyers said.

“There's literally billions of barrels ofheavy oil in place underneath the existinginfrastructure at Kuparuk, at Milne Point, atPrudhoe,” he said.

But there's a challenge: the oil is thickand cold and it lies in unconsolidated forma-tions that produce a lot of sand — and theflow rates are uneconomic.

Meyers said those challenges are beingtaken on at Schrader Bluff, West Sak, Orionand Polaris as North Slope operators try tofind ways to make heavy oil economic. In1990 only a few thousand barrels a day ofheavy oil were produced, he said. Today thetotal is about 30,000 bpd coming fromOrion, Polaris, Milne Point and West Sak atKuparuk.

“By 2010,” Meyers said, “we could beproducing over 150,000 barrels a day ofheavy oil on the North Slope.” New tech-nology is needed to make that happen, hesaid, and a federal tax credit for heavy oil“might help us accelerate” heavy oil produc-tion.

Meyers said he also sees more remoteoperations on the North Slope in the future.“And as we move farther from existinginfrastructure, the cost and the technologychallenges are going to go up.”

Change to oil and gas Of future development possibilities, gas

is the “Big Kahoona,” Meyers said. It would give Alaska an oil and gas

industry, not just an oil industry. The construction and startup of a gas

export pipeline from the North Slope will bethe energy equivalent of starting up a

600,000-700,000 bpd oil field, he said. Thechallenge of building the gas pipeline is thecost, and because the project is so large thereis also a huge risk, he said. He noted thatConocoPhillips believes federal enablinglegislation and federal fiscal legislation arenecessary, along with state fiscal legislation.

“At the state level we've made tremen-dous progress this year,” Meyers said, withthe reauthorization of the stranded gasdevelopment act, which allows the state andindustry to negotiate fiscal certainty and fis-cal clarity for a gas pipeline project.

“ConocoPhillips is anxious to get startedwith those discussions in the state,” Meyerssaid.

Oil future To ensure the state's oil future, Meyers

said, the industry needs access to acreage.And not just any acreage: it has to beprospective for oil. And on the North Slope,we're talking Barrow Arch, he said. Sixty-one prospects have been drilled within 40miles of the Barrow Arch; 34 were discover-ies; 26 are commercial.

Fifty-three prospects have been drilledfarther than 40 miles south of the BarrowArch; one was a discovery; it has not beendeveloped.

“Bottom line: geography and geology domatter,” Meyers said.

The industry also needs “reasonable andcost-effective regulations and permitting,”he said, adding that bills passed in this ses-sion of the Legislature are “positive,” pro-tecting the environment while streamliningthe regulatory and permitting processes.

Meyers said industry also needs a stablefiscal environment, because “explorationand production and development projectsmust compete on a global basis.”

The governor and Legislature workedhard to prevent new taxes on the oil industryin this session, he said.

“I also want to applaud the governor forwhat he's done to try to close the fiscal gap.This is a thankless job. And everyone has acriticism of it and it takes tremendouscourage and will power to make it happenand I know we only made some small stepshere, but thank you governor, for thecourage to do that.” ●

A10 PETROLEUM NEWS • WEEK OF JUNE 22, 2003EXPLORATION & PRODUCTION

ed to be lifted under a joint agreement withboth levels of government.

The only thing missing is a healthy andvigorous interest by the industry that willinvest the billions required to make thedream happen, and that might be the fly inthe ointment.

Only a few old wells There is widespread skepticism that

British Columbia's offshore regions are any-where close to the top of the industry priori-ty list. A series of resource reports devel-oped by the Geological Survey of Canadahave put the resource potential for just theHecate Strait region off the Queen CharlotteIslands at 26 trillion cubic feet of gas and 9.8billion barrels of oil. These are blue skynumbers, as only a handful of wells havebeen drilled in these waters, the last onebeing sunk more than 30 years ago.

And that’s the problem. Calgary oilmanRob Woronuk says — a little tongue incheek — that he has nothing but fond mem-ories of the British Columbia offshore oiland gas exploration program he helped puttogether for Shell Oil back in the late 1960s.

“I assisted with the surveys, I picked thesites, I even picked the drilling rigs,” he said.“But some of my judgment wasn’t the best.I was partially responsible for drilling 18 dryholes. It did not advance my career.”

Doubts on British Columbia reserves Now head of his own consulting compa-

ny, GasEnergy Strategies of Calgary,Woronuk is also a senior analyst with theCanadian Gas Potential Committee. TheCommittee is a volunteer group of industryand government geoscientists, and they reg-ularly issue reports on natural gas potentialin Canada’s existing and potential hydrocar-bon basins.

One of the areas examined by the com-mittee — with significant input fromWoronuk and fellow analyst Bob Meneley(former exploration vice president with bothPetro-Canada and Imperial Oil) — is BritishColumbia offshore. Right away, they seesome problems with the province govern-ment’s rosy outlook.

The Geologic Survey of Canada's esti-mate of 26 trillion cubic feet of gas coversjust the Queen Charlotte basin. The gascommittee’s estimate of gas in place for theentire West Coast (the Queen Charlottes,Georgia Strait, and the Tofino-Winonabasins) is just under 14 tcf, with 7.5 tcfassigned to the Queen Charlotte basin.

“The GSC numbers assume 100 percentcertainty that you’ll find gas,” said Woronuk“There is no risk applied. We apply risk.”

The gas committee’s numbers describean estimate of “gas in place.” To get to a vol-ume of marketable gas, the committee usu-ally applies data taken from discovery wellsand discounts the volume even further. Onaverage, in Alberta and northeast British

Columbia, that discount would shave anoth-er 40 percent off the estimate.

No data from discoveries “We didn’t do that with the offshore

numbers because there are no discoveriesfrom which to draw data,” Woronuk said.“But if you use the Western CanadaSedimentary Basin (Alberta and northeastBritish Columbia) averages, then you shouldmultiply that estimate by 0.6.” Suddenly, 14tcf becomes 8.4 tcf.

That’s still a lot of gas — but it’s wellshort of the 26 tcf being promoted by theBritish Columbia government as theresource awaiting exploitation. And neitherMeneley nor Woronuk thinks there’s goingto be a lot of near-term industry interest inthe area.

“I guess the assessment the gas commit-tee made indicated the risk levels are muchhigher than the B.C. government wouldimpute from their press releases,” saidMeneley, now head of Meneley Enterprises.“You drilled a number of wells and foundnothing — that’s not a good start.”

Meneley went on to point out that it willcost $100 million to drill a couple of wells(assuming that seismic work shows anypotential worth drilling), and the industryhas lots of other places (including in BritishColumbia) to spend that money.

Woronuk carries it further: “I don’t see itcoming very soon. I see more activity inshallow gas and coalbed methane, and morework in the Mackenzie Delta — lots of other

fun places to go than offshore BC. Offshoregas by 2010? The Premier may talk thatway, but the NEB, whom I consider to bevery optimistic on this, sees first productionin 2017. I see that as a very optimistic tar-get.”

Why lift moratorium? While the provincial government, and

Northwest communities, appear to be look-ing at offshore oil and gas as an economicsalvation — the people who actually go outand find the stuff appear to have cold feet.So why are they asking to have the currentfederal-provincial moratorium lifted?

According to Woronuk, that’s becausethere’s no cost to the industry at all, and itdoes give them the opportunity to then makea commercial decision about whether or notto seek permits.

“If they were really interested they wouldbe hammering on the door,” he said. “If theyaren’t hammering on the door — and they’relooking elsewhere — maybe it's becausethey don’t think you have much to offer outthere.”

The British Columbia government has alot to be optimistic about with the province’soil and gas industry — it really is boomingup in the northeast part of the province. Butoffshore will likely remain a distant dream,despite the best efforts of Victoria to make ithappen. All the attention focused on the cur-rent political dispute between Ottawa andVictoria over lifting the current moratoriummay well be wasted energy. ●


FUTURE


OFFSHORE


land&leasingwww.PetroleumNews.com

ANCHORAGE, ALASKALapp gets Kenaileases, wants partnerfor Delta Junction

On May 27, the state of Alaska assignedAnchorage-based Lapp Resources eight shal-low gas leases south and east of Anchor Point.The acreage extends toward the head ofKachemak Bay near Homer on Alaska’s KenaiPeninsula.

The independent applied for the leases on Feb. 29, 2000.

● G U L F O F M E X I C O

MMS rejects $18million in GOM bidsAgency values 16 tracts at $54.4 million; take drops to $297.6 million

PETROLEUM NEWS HOUSTON STAFF he U.S. Minerals Management Service hasrejected nearly $18 million in high bids fromlast March’s Central Gulf of Mexico LeaseSale 185 because they failed to meet the gov-

ernment’s standard for “fair market value” on 16shallow and deepwater tracts offered in the sale.

The rejections cut the government’s take fromthe sale to $297.6 million from $315.5 million,while reducing the number of winning bids to 545from 561, MMS said June 17.

The 16 rejected tracts should draw premiumbids at a next year’s Central Gulf lease sale. MMSplaced a “mean range” value of $54.4 million onthe tracts, over three times initial high bids of$17.9 million, agency records show.

Exploration and production independents,which dominated Sale 185, also accounted for thelion’s share of rejected bids. However, it wasChevron Texaco alone that suffered the biggestblow in terms of sheer valuation, MMS recordsshow.

Chevron Texaco bids of $7.75 million for GreenCanyon Block 468 and $3.75 million for GreenCanyon Block 512 were unacceptable to MMS,which placed a mean value on the deepwaterblocks of $15 million and $17 million, respective-ly.

Highest bid by independents The highest bid in the entire sale and accepted

by MMS was for $8.2 million. South Marsh IslandBlock 109 was won by a group of independentsconsisting of Hunt Petroleum, CheyenneInternational and Energy Partners.

Also in Green Canyon, MMS rejected a highbid of $878,888 jointly placed on Block 238 byChevron Texaco and Australia’s BHP BillitonPetroleum. The agency valued the block at $1.9million.

MMS also rejected three deepwater blocks inMississippi Canyon, the most prolific region of theGulf, and one in remote deepwater Atwater Valley,MMS records show.

In Mississippi Canyon, BP bids of $157,319each for blocks 543 and 544 were rejected byMMS, which valued Block 543 at $870,000 and

Block 544 at $630,000. A $1.37-million bid fromindependent Spinnaker Exploration for Block 409was rejected on a value of $3.6 million.

Similarly, a $701,020 bid from French explorerTotal for Atwater Valley Block 96 was rejected ona value of $2.2 million.

The remaining bids rejected by MMS wereplaced by exploration and production independ-ents for tracts in the relatively shallow waters ofthe continental shelf, the Gulf’s main producer ofnatural gas.

In East Cameron, bidding partners HoustonExploration and El Paso Production came up shorton offers of $757,777 for Block 85 and $325,825for Block 80. MMS valued each block at $1.5 mil-lion. A $276,350 bid from partners Remington Oiland Gas and Magnum Hunter for Block 158 wasrejected on a value of $1.3 million. Likewise, a$187,552 bid from Seneca Resources for Block213 was rejected on a value of $1.1 million.

In Vermilion, Remington and Magnum Hunteragain lost out on a $511,150 bid for Block 137.The block was valued at $1.4 million. Also, a$141,957 bid for Block 147 was rejected on avalue of $1.8 million.

In the Eugene Island area, the bidding team ofNewfield Exploration and Gryphon Explorationhad its $223,000 bid for Block 114 rejected byMMS on a value of $1.8 million. A $141,957 bid

T

see BIDS page A12

Dates for state, federal oil, gas lease salesAgency Sale and Area Proposed Date

MHT Cook Inlet September 2003MMS Sale 186 Beaufort Sea Sept. 24, 2003DNR North Slope Areawide Oct. 29, 2003DNR Beaufort Sea Areawide Oct. 29, 2003MMS Sale 191 Cook Inlet 2004DNR Cook Inlet Areawide May 2004DNR Foothills Areawide May 2004BLM NE NPR-A June 17, 2004BLM NW NPR-A June 17, 2004DNR North Slope Areawide October 2004DNR Beaufort Sea Areawide October 2004MMS Sale 195 Beaufort Sea 2005DNR Cook Inlet Areawide May 2005DNR Foothills Areawide May 2005DNR North Slope Areawide October 2005DNR Beaufort Sea Areawide October 2005MMS Sale 199 Cook Inlet 2006MMS Sale 202 Beaufort Sea 2007MMS Chukchi Sea/Hope Basin interest based MMS Norton Basin interest based

Agency key: BLM, U.S. Department of the Interior’s Bureau ofLand Management, manages leasing in the National PetroleumReserve-Alaska; DNR, Alaska Department of Natural Resources,Division of Oil and Gas, manages state oil and gas lease sales onshoreand in state waters; MHT, Alaska Mental Health Trust Land Office,manages sales on trust lands; MMS, U.S. Department of the Interior’sMinerals Management Service, Alaska region outer continental shelfoffice, manages sales in federal waters offshore Alaska.

ALASKA

This week’s lease sale chartsponsored by:

PGS Onshore, Inc.

DAVE LAPPI

see LEASES page A12

Unocal farmed-in on six of the eightleases, giving it operating rights and 100percent control of those leases, Dave Lappitold Petroleum News June 18. Lappi isfounder and president of Lapp Resources.

Evergreen pulls out of Delta JunctionIn mid-June, Evergreen Resources, a

Denver-based coalbed methane producerwith a major project under development inAlaska’s Matanuska Valley, withdrew fromits farm-in agreement with Lapp on a333,000-acre lease block in Delta Junction,Alaska.

“Evergreen decided to concentrate onother activities. They just acquired aCanadian company and are re-evaluating allof their positions and reshuffling the deck,so I’m looking for a new partner,” Lappisaid. “I am offering very attractive terms.”

Preliminary work during first two yearsLapp is “not actively looking for a part-

ner” for the Anchor Point acreage. “At thispoint I’m happy to do the preliminary workmyself and see what comes out of it,” Lappi

said.Preliminary work will likely begin this

year and include geologic mapping andsampling of coal seams, analysis of waterwells in the area, maybe a little seismic.”

Depending on what he finds, Lappihopes to drill wells in the third year.

Since it entered into a farm-in agreementon the Anchor Point leases two years ago,Unocal has unsuccessfully explored for con-ventional gas just north of the area that con-tains the Lapp shallow gas leases.

A Unocal subsidiary is a 40 percent part-ner in the Kenai Kachemak Pipeline, whichis will start-up this year. The pipeline wasoriginally supposed to carry gas from theAnchor Point area to the community ofKenai, but because of Unocal’s lack ofexploration success in the Anchor Pointarea, the line will end about 35 miles northat Ninilchik where Unocal and Marathon, a60 percent owner in KKPL, are activelyexploring and announced the Ninilchik unitdiscovery last year.

Unocal was not available for commentabout its plans for the six shallow gas leasesit operates near Anchor Point, but Lappi saidthat although the farm-in agreement was puttogether two years ago, Unocal confirmedthe deal in the last month prior to issuance ofthe leases.

“They were obviously enthusiasticenough to go forward with the farm-in,” hesaid. With or without a pipeline betweenAnchor Point and Ninilchik, Lappi expectsany natural gas or coalbed methane pro-duced from the Anchor Point leases to beused in Homer, a southern Kenai Peninsulacommunity which, like Anchor Point to thenorth, is not on the area’s gas pipeline sys-tem.

Three year leasesShallow gas lease terms in Alaska are for

three years.“We offer a one-time option to extend an

additional three years if we see goodprogress in being made towards develop-ment,” Mark Myers, director of the AlaskaDivision of Oil and Gas, told PetroleumNews June 18.

—KAY CASHMAN, Petroleum News publisher & managing editor

A12 PETROLEUM NEWS • WEEK OF JUNE 22, 2003LAND & LEASING

by Tana Exploration for Block 154 wasshot down on a value of $1.3 million.

Finally, a partnership consisting ofNewfield, EOG Resources and CL&FResources was turned away with a bid of$593,100 for South Timbalier 155. MMSvalued the block at $1.5 million.

Kerr-McGee dominant player By far, Oklahoma’s Kerr-McGee, also

an independent, was the dominant playerin Central Gulf of Mexico Lease Sale 185with MMS accepted high bids of $28.2million and 63 tracts.

Other top winners ranked by total highbids were Murphy Exploration &Production with $21.5 million in success-ful bids and 35 tracts, Unocal with $18.7million in bids and 27 tracts, DominionExploration & Production with $14.3million in bids and 12 tracts, Newfieldwith $11.8 million in bids and 49 tracts,BHP with $9.6 million in bids and 49tracts, Chevron Texaco with $9.3 millionin bids and 38 tracts, and MagnumHunter with $7.7 million in bids and 38tracts.

MMS’ next offering, Western Gulf ofMexico Lease Sale 187, is scheduled forAugust 20 in New Orleans, Louisiana.The sale area will include 3,985 blocksencompassing 21.7-million acres. ●


BIDS


LEASES


governmentwww.PetroleumNews.com

OFFSHORE UNITED STATES

U.S. Senate backs study ofcoastal oil, gas resources

The U.S. Senate on June 12 called for a comprehensive inven-tory of offshore oil and gas resources, turning aside concerns thatthe effort might lead to energy development in coastal watersclosed to drilling for two decades.

An amendment that would have stripped the study from abroad energy bill was rejected 54-44. Supporters said the countryshould know how much oil and gas it has in case those reservesmight need to be tapped.

But many senators, especially those from coastal states, saidthey feared the study was but a first step to drilling in areas nowprotected.

While an inventory “appears to be benign,” said Sen. BobGraham, D-Fla., “it's nothing more than an attempt to under-mine” the existing bans in effect for most of the coastal watersoutside the eastern and central Gulf of Mexico and parts ofAlaska.

Other senators said the study was needed so the governmentcould learn how much oil and gas is available. They denied it wasan attempt to scuttle drilling bans in effect since 1982. They alsosaid the most modern technology should be used to get an accu-rate idea of the reserves.

“We've got to find out what we've got. ... Do we want to adoptan ostrich policy?” asked Sen. Pete Domenici, R-N.M.

Provision removed in House version Graham said he would continue to try to remove the provision

when final legislation is worked out with the House, which reject-ed a similar study when it passed its energy bill this year.

The oil and gas industry has sought for years a fresh, morecomprehensive survey of the Outer Continental Shelf, using the

● A N C H O R A G E , A L A S K A

Governor: Alaska backin the oil and gas gameMurkowski thanks Legislature for cooperation on energy legislation


hanks to the Legislature, Alaska is back in thegame as far as being a competitive oil and gasprovince, Gov. Frank Murkowski told theResource Development Council's annual meet-

ing June 13 in Anchorage. The governor reviewed some of the legislation

passed this session, and thanked the Legislature for itscooperation in putting things “in the state's toolbox”that make Alaska more competitive for oil and gasinvestment. The state hasn't been competitive inresource development, the governor said, and “capitalgoes to the highest return and the least risk — and itcan go very quickly.”

The state was no longer competitive for investmentwith Russia, Mexico or Canada, he said. “But theaction of the Legislature … now puts Alaska right inthe middle…” in attractiveness for investment.

“Another item in the toolbox is the commitment toput in about 70 to 80 miles of road north of AtigunPass to the west on state land. That's going to open upan area for oil and gas leasing and we feel we canrecover enough cost from the sale of the leases to payfor the road,” Murkowski said.

He characterized legislation such as moving the

Habitat Division into the Department of NaturalResources and substantially amending the state'scoastal zone management program as “putting the(state's) house in order.”

The governor also mentioned the possibility of fed-eral help for the state's oil industry. If a federal $3 abarrel incentive for heavy oil is passed, the governorsaid, the state could see a big increase in heavy oil pro-duction from the North Slope.

“We've got more heavy oil at West Sak than we

T

Gov. Frank Murkowski

FOR

RES

T C

RA

NE

see GAME page A15see STUDY page A16

A14 PETROLEUM NEWS • WEEK OF JUNE 22, 2003NORTHERN MINING● D E L T A J U N C T I O N , A L A S K A

Looking for another PogoSouth African gold producer increases its presence in Alaska, plans summer drilling program near Pogo

By PATRICIA JONESPetroleum News Contributing Writer

xploration crews working for AngloGold (U.S.A.)Exploration Inc. will drill up to 10 diamond coreholes this summer on optioned property just a fewmiles west of the Pogo gold deposit in eastern

Interior Alaska. It’s the third year of exploration work in Alaska for

AngloGold, a subsidiary of the South Africa-based majormining company, which produced almost 6 millionounces of gold in 2002.

“Alaska is an attractive place, at least in NorthAmerica. It’s a place we’ve chosen to conduct explo-ration,” said Jeff Pontius, AngloGold’s exploration man-ager in the United States. “It’s under explored and it hasmineral potential, and a favorable regulatory environ-ment — it looks like — we assume that is so.”

AngloGold’s first foray in Alaska has come throughan option on property neighboring the Pogo deposit,staked by three different companies during a land rush inearly 1998. Located about 40 miles northeast of DeltaJunction, Pogo’s high-grade, 5.5 million ounce golddeposit sparked a claim staking rush that involved morethan 150,000 acres of state land in the hills of the remoteGoodpaster River Valley.

Since its discovery by exploration crews working forSumitomo Metal Mining in the mid-1990s, Pogo has

been advanced to a development project by joint venturepartner Teck Resources, a subsidiary of Teck-Cominco.

State and federal regulators are currently assessingpublic comments generated by release this spring of adraft environmental impact statement. A decision isexpected later this summer, and should developersreceive a green light, road construction and initial dirtwork will begin late this fall, according to Teck’s AlaskaRegional Manager Karl Hanneman.

AngloGold’s exploration program west of Pogo is theonly drilling plan submitted to state regulators for thatregion this summer.

“We’re definitely watching how things go in Alaskafrom a permitting side. Pogo is one of the important proj-ects out there that the state is considering,” Pontius said.“The Pogo deposit is a very attractive gold deposit …we’re exploring for similar deposits.”

Going deepAccording to AngloGold’s hardrock exploration

application submitted and approved by the AlaskaDepartment of Natural Resources, the maximum depthof the core holes will be 2,000 feet.

Most of the holes will be drilled to only 1,000 feet,although crews have 1,400 feet of steel pipe to workwith, Pontius told Petroleum News in a telephone inter-view on May 30.

“The targets we’re drilling are down at depths of

about 1,000 feet — that’s kind of the common depthsthat people drill to in this area,” he said. “We’re still inthe early stage of exploration — we’re just trying to geta look at the rock out there.”

A heli-portable core drill is being used at the site. Thecompany plans to complete 3,000 meters of core samplesthis summer, Pontius said.

“It’s a small program. This is just continuing on withtesting regional targets,” he said.

Past work Last year, AngloGold drilled three core holes in the

same area, the first drilling in the Pogo area explorationfor the company.

The core holes were drilled on claims staked in 1998by a Vancouver, B.C.-based exploration company calledBlue Desert Mining Inc.

Now renamed Nevada Geothermal Power Inc., thatexploration company conducted grassroots geochemicalwork on the property to identify a soil anomaly dubbedthe Hook zone, said company president Brian Fairbank.

AngloGold first optioned that property, along withtwo other Pogo-area parcels, from Blue Desert in 2000.Since then, AngloGold has dropped all but the acreagewest of Pogo called Gobi, Fairbank said, spending about$200,000 to $300,000 on that acreage, he said.

E

● L I V E N G O O D , A L A S K A

New hardrock exploration site gets a lookAngloGold drills lode prospects in historical placer gold producing district, state continues geological data inventory of area

By PATRICIA JONESPetroleum News Contributing Writer

ne of the world’s largest gold mining companies istaking its first look at lode prospects near the his-torical placer mining community of Livengoodsome 75 miles northwest of Fairbanks, Alaska.

Up to 17 reverse-circulation drill holes are plannedfor federal lode claims currently under option byAngloGold (U.S.A.) Exploration Inc., a subsidiary ofSouth Africa-based AngloGold.

The claims are owned by two Fairbanksans, RichardHudson and Richard Geraghty, according toAngloGold’s hardrock exploration application submittedand approved by the Alaska Department of NaturalResources.

Dubbed the BAF Project, drill crews have until July 1to complete their work on the claims, located just southof the Livengood townsite, in an area on the northeastflank of Money Knob.

Jeff Pontius, AngloGold’s exploration manager in theUnited States, declined to comment on the company’swork in the Livengood area. “We really don’t have anycomment on the activity in the Livengood area,” he toldPetroleum News May 30. “Most of our effort is directedtowards the Pogo area.” (See related story.)

According to the company’s exploration plan submit-ted to DNR, seven primary drill holes are planned, with10 secondary holes outlined. Six of the primary holesand six of the secondary holes are on claims held byHudson, while the remaining holes are on Geraghty’sclaims.

A map plan shows the holes in a squared grid consist-ing of four rows, each row and most of the holes rough-ly 500 feet apart. Maximum depth of the holes is 1,000feet, according to the exploration application.

Access via Elliott Highway Access will be via the Elliott Highway to the turnoff

for the Livengood town site, and from there on existingdirt roads to the project area. Individual drill sites will bereached via cross-country or short constructed trails con-fined to the leased federal claim block, according to theapplication. Old overgrown trails and trenches will beincorporated as access routes whenever possible, shouldaccess need to be constructed.

Drill crews and geologic support staff will be basedout of Fairbanks, and diesel fuel for the track-mountedreverse-circulation drill rig transported to the site on adaily basis.

Water needed for drilling will be pumped from a nat-ural pool, probably in Livengood Creek, using ascreened intake to prevent fish entrapment. Ruth Creekruns northwest of the drilling area, while Olive Creekruns just south.

Upon completion, drill holes will be backfilled frombottom to top with Benseal or an equivalent bentonite

O

see HARDROCK page A16

see POGO page A16

fairway by non leasing or overly restrictivelease stipulations will deprive Alaska offuture production, jobs and revenue,” hesaid.

That positive climate also includes “rea-sonable and cost-effective regulations andpermitting. This past legislative session thegovernor introduced several bills that protectthe environment while streamlining the per-mitting process. … Judy’s already men-tioned that it was one of the most significantif not the most significant change in the reg-ulatory environment we’ve seen up here indecades.

“… These bills are all positive billswhich the Legislature passed. … And thankyou to the governor andLegislature for makingthat happen.”

Meyers said there isgreat developmentpotential in Alaska (seerelated story on pageXX), but warned thatwhat Alaska does in thenext few years “will dic-tate the future of oil and gas development inthis state for the next decades. It will deter-mine whether the future is one of new dis-coveries, new jobs, new state revenue, oralternatively a future in which we continueto manage a mature oil province as it contin-ues through decline.”

Permitting a plus, need longer season Jack Bergeron, Alaska manager for Total,

also applauded “the administration and theLegislature in what they accomplished thisyear.”

Bergeron said he had experience of thevalue of permit streamlining. He said short-ly after he arrived in Alaska last year heasked for a flow chart of the permittingprocess: “it looked like it was just a big cir-cle; we never did know where we weregoing.”

He characterized Alaska permitting as“the most complicated alphabet soup type ofpermitting that I’ve seen anywhere that I’veworked. We talked to people up here andthey couldn’t tell us, this is how you goabout getting a well permitted. So streamlin-ing the process is very important to us.”

The exploration incentives passed thisyear should help on the economic side, hesaid, but: “I must also point out as a new-comer that these incentives that were passedmay not do as much to bring new key play-ers to that area as much as it will to help peo-ple that are currently already producing inAlaska.”

Bergeron said there are still a lot of chal-lenges, and he thinks the Legislature and theadministration have a lot left to do.

“The most troublesome challenge we seeas an industry is the short operational win-dow for exploration on the North Slope,” hesaid. The tundra travel period seems to getshorter every year, and federal, state andlocal agencies need to work with industry“to extend this drilling season.”

A particular challenge in the NationalPetroleum Reserve-Alaska is the lack ofinfrastructure, Bergeron said: “There’s notmuch out past Alpine now and really theonly base of operations that people can lookat is Deadhorse.” Because of that, explo-ration and development costs are “dramati-cally higher than what we’ve seen in thepast,” he said.

Cook Inlet success Gary Carlson, senior vice president for

Forest Oil, said his company encountered“delays and costs associated with wadingthrough the multitude of regulations, permitsand special interest litigation” in developing

its Cook Inlet Redoubt Shoal field. In November, Carlson said, at the

Resource Development Council’s annualconference, “I suggested that the state couldimprove their resource development envi-ronment in Alaska by taking the followingsteps: one was to eliminate the public inter-est litigant reimbursement program. Anotherwas to hold special … interest litigantsfinancially accountable for the lawsuits thatminimize the judicial review to permittedprojects” and a third was to fix or eliminatethe Alaska Coastal Management Program.

“I want to commendand congratulate thegovernor, his staff andthe legislators … fortheir accomplishmentsover the past six monthsin dealing with theseproblems and improv-ing Alaska competitiveedge,” Carlson said.

“The public interest litigant reimburse-ment program has been abolished. And spe-cial interest groups that have been opposingresponsible development will now be heldfinancially accountable for their frivolouslawsuits.”

And the Alaska coastal managementprocess “has been greatly improved”through both legislation and the actions ofthe commissioner of the Department ofEnvironmental Conservation.

He noted other positive changes: central-izing of resource development permittingunder the Department of Natural Resourcesand changes which made permit require-ments for coalbed methane drilling “fit forpurpose.”

He also noted reduced royalties ondeclining Cook Inlet oil fields, the “clarifiedroyalty burdens on gas being supplied tovalue-adding plants like the Agrium fertiliz-er plant” and tax credits for natural gasdrilling in Cook Inlet and elsewhere in thestate.

“It will now be up to industry and venturecapitalists to act on these opportunities,”Carlson said.

“I think the governor can sincerely saytoday that the state is open for business.”

More production? Jack Williams, Alaska production man-

ager for ExxonMobil, noted progress sincelast year “to improve the climate of respon-sible oil and gas development in Alaska,”and cited bills extending oil spill contin-gency plans and changes in the ACMP reg-ulations as “responsible steps for both theadministration and the Legislature.”

In addition, he said, the administrationmade “made tough budget decisions neces-sary to reduce government spending thatwill improve the state’s fiscal soundness.”

The reauthorization of the stranded gasdevelopment act will “improve the longerterm prospects of the state’s budget and theeconomy,” he said.

“Establishing a state stable fiscal frame-work is one of the key actions necessary toaddress an ANS gas pipeline. On behalf ofthe management team at ExxonMobil, I’dlike to offer my thanks to Gov. Murkowski,his administration and members of the 23rdAlaska Legislature for the progress made.Please know that we appreciate the convic-tion to follow through on pledges made toimprove the investment climate in Alaska,”Williams said. But the goal of all of this wasincreased production, he said, and state offi-cials are beginning to ask when that willhappen. “And I really wish I had the answerto that question because quite frankly my

management back in Houston’s asking thesame thing,” Williams said. “And the stateofficials are asking much more politely.”

It takes a long time to bring on new pro-duction, he said, and significant investmentis required. In Alaska, where logistical fac-tors are important, it can take even longer.

Projects under way in whichExxonMobil has an interest include offset-ting the natural decline at Prudhoe Bay,where field owners are continuing to investin growth opportunities.

“One reason we’re able to do this is thesuccess BP and its contractors have had inreducing drilling costs through applicationof new technologies,” Williams said. AtPrudhoe, that is primarily coiled tubingdrilling.

Another Prudhoe opportunity is smallersatellite fields, including Orion, wheredevelopment is expected to begin later thisyear. Satellite development, he said, “hasbeen encouraged by the severance tax poli-cies implemented back in the late 1980s.This is a really good example of a pro-devel-opment policy decision which has had a tan-gible impact on the state’soil production, well overa decade later.”

ExxonMobil is stillstudying a project affect-ed by North Slope logis-tics — Point Thomson.Williams said it “containsa world-class natural gasresource” but the gaswon’t be developed untilthere is a way to move it off the North Slope.Because of logistics, he said, ExxonMobil isstudying a gas injection project which“would generate liquid condensates salesahead of gas sales.”

There are cost and technical challenges atPoint Thomson, he said, and ExxonMobilhasn’t yet identified a viable project. A finaldecision on development is expected some-time next year, he said.

125 wells at Prudhoe Steve Marshall, president of BP

Exploration (Alaska), said BP must not becommunicating what it’s doing, because hekeeps hearing that BP is not investing andnot drilling any wells. This year, he said, thecompany is investing more than $750 mil-lion in the state, and spending more on

goods and services in the state than the per-manent fund distributes in dividends. AndBP is drilling 125 wells at Prudhoe Bay thisyear.

“That’s what it takes just to keep pro-duction flat — or in our case this year we’reincreasing modestly,” he said.

The remaining resource is huge, he said:“Alaska has the largest single supply of oiland gas reserves” in BP’s portfolio.

The viscous potential is billions of bar-rels, he said, more than 250 million barrelsat Prudhoe Bay satellite field Orion, wheredevelopment is beginning. Just recently,Marshall said, the first well at Orion “camein at over 5,000 barrels a day initial rate.”

The combination of drilling technolo-gies and production technologies, he said,start to make a reality of what didn’t lookpossible three or four years ago.

The gas potential is also huge, he said,with 35 trillion cubic feet of knownreserves.

But those reserves “still need billions ofdollars of investment to transform thatpotential into production,” Marshall said.

And Alaska opportunitieshave to compete forfunding with opportuni-ties around the world.

“To continue toinvest, we need confi-dence in a strong and astable oil business inorder to move forwardwith a multi-billion dol-lar gas pipeline. It’s BP’s

view that the two are intricately inter-twined.”

Steps taken in the 23rd Legislature weresignificant, Marshall said, and he thankedlegislators, the administration and organiza-tions like AOGA, the ResourceDevelopment Council and the AlaskaSupport Industry Alliance for help “in mov-ing forward the reform of streamlining ofthe coastal management program, the Cplan extensions and the air permittingprocess.”

Marshall described those as “very, veryencouraging first steps.”

And, he said, the reauthorization of theAlaska Stranded Gas Development Actprovides “an important foundation onwhich we can get together and determine away forward in this state for the gas line.” ●

PETROLEUM NEWS • WEEK OF JUNE 22, 2003 A15THE REST OF THE STORY

have oil at Prudhoe Bay,” Murkowski said. Right now, the governor said, Alaska is

faced with the “sobering reality” that onlythree or four exploration wells are plannedon the North Slope this coming winter.

“That's absolutely totally inappropriate inan oil-bearing province,” he said.

As far as changes in the state to make itmore competitive as an oil and gas province,Murkowski said: “I think we're off to a pret-ty good start. … I'm happy to say, we're backin the game.”

More bills signed After the meeting, Murkowski signed

more oil and gas bills: House Bill 145, the governor's office

said, attempts to address an imbalance, cre-ated under court cases, that has granted aspecial status to special interest litigants withrespect to attorney fees and costs. It limitsthe award of fees and costs to only thoseportions of the suit that were devoted to theassertion of a constitutional right, only onthose portions that prevailed, and only if theclaimant did not have sufficient economicincentive to bring the suit.

House Bill 86, sponsored by Rep. BudFate, R-Fairbanks, provides that a person

who obtains an injunction in the course of abad-faith legal challenge to a state-permittedproject will be held civilly liable for dam-ages caused by the injunction. The bill alsoprovides that the a coastal zone consistencydetermination may only be appealed by theapplicant or the coastal district. A third pro-vision states that a permitted project in CookInlet is considered legislatively approvedand does not require added agency actionand is not subject to judicial review.

House Bill 283, also by Rep. Fate, dou-bles the limit of the total aggregate acreage aperson may hold in coal leases or permits,from 46,080 to 92,160 acres. The increase issupported by the Department of NaturalResources, and is consistent with federallaw that also has increased the amount offederal leases that can be held.

House Bill 246 increases the amount ofonshore chargeable acreage an oil and gaslessee may hold from 500,000 acres to750,000. Of those, no more than 500,000acres may be located north of the Umiatbaseline. This change will allow companiesto maintain their North Slope interests,while being able to lease and exploreacreage in some of Alaska’s frontier basins.The bill also transfers authority to conductaudits of revenues from royalty and net prof-it shares generated by state oil and gas leas-es from Department of Revenue to DNR. ●


GAME


KUDOS“I think the governor can sincerelysay today that the state is open for

business.” —Gary Carlson, Forest Oil

“… These bills are all positivebills which the Legislature

passed. … And thank you tothe governor and Legislature

for making that happen.” —Kevin Meyers, ConocoPhillips Alaska

“The most troublesomechallenge we see as anindustry is the short

operational window forexploration on the North

Slope.” —Jack Bergeron, Total

A16 PETROLEUM NEWS • WEEK OF JUNE 22, 2003THE REST OF THE STORY

Petroleum NewsClassifieds

We’ll be back better than ever August 6!

Petroleum News is revamping its classified section to better serve

our advertisers and subscribers

For more information, call Heather Yates

907-644-6444

ket in a timely manner, get the revenuequickly and help the project econom-ics.”

Yukon Pacific told the Legislature inMarch 2002 that it was downsizing itsproject — to 1.4 billion cubic feet a dayand a 30-inch pipeline, with a proposedcost of $9.5 billion with ethane andpropane sales in addition to LNG. Thisproject Whitmore described is 2.2 bcf aday, a 36-inch pipeline and an estimated$13 billion cost.

Whitmore said that the biggest differ-ence in the last 10 years is the emergenceof an LNG market on the West Coast ofNorth America. “And we really want tosee if we can get into that one,” he said.While Yukon Pacific is still looking atAsian markets, “our premises havechanged and we see the West Coast ofNorth America as the primary LNG mar-ket and possibly the exclusive LNG mar-ket for the project,” Whitmore said.

Two cases Yukon Pacific has actually developed

two descriptions: a base case, whichincludes more heavy hydrocarbons, and alean case. Whitmore said Yukon Pacificlooked at two cases to demonstrate thatthe project works with either richer orleaner gas. Both involve a high-pressuregas pipeline, above 1,300 pounds persquare inch. At that pressure you can packa lot of hydrocarbons into gas and takethem down the line without having themdrop out as liquids, he said, and you canpull methane off anywhere along the lineto go to communities, and just keep theliquids going down to Valdez.

The project Yukon Pacific has pricedout is based on 2.2 bcf a day, but the gaspipeline is expandable to handle up to 3tcf a day. A spur line to Southcentral is notincluded in this project, Whitmore said.The assumption is that someone elsewould undertake to build a spur line fromGlennallen south.

LNG plant critical path The critical path for construction is the

LNG plant, not the pipeline, he said,because the winter seasons in Valdez arehard to work in. Two trains would bebuilt. The first train is put on line at 1.1 bcfa day, operating the pipeline at 50 percentcapacity. Then, while production is occur-ring from the first train, the second train isfinished along with some compressor sta-tions along the pipeline and then the facil-ity is at full capacity.

If a contract were signed today, hesaid, “we’d be talking about half (of theproduction) starting up seven years fromnow, the other half eight years from now.”

This schedule is possible becauseYukon Pacific has major permits in hand,he said.

Whitmore said it’s almost a Catch-22:“If you don’t have the permits and youestablish a market, you have to tell themarket to hang on until you’ve demon-strated permits.” Since Yukon Pacific hasthe permits, he said, “we can talk about amarket now, and we think that’s an advan-tage.”

Paul Fuhs of Yukon Pacific told theauthority board that recent LNG con-tracts, such as Sakhalin, are long-term: 24years in that case, with a delivery date of2007. Bonds are sold five to seven yearsin advance of delivery, he said, based onlong-term contracts. ●


YUKON PACIFIC

slurry. Drill cuttings will be back-bladedand evenly spread over the drill site andany pads and access trails will bereclaimed as close to pre-drilling condi-tions as possible.

Past producer, current state studyAngloGold did say that this will be

their first year exploring the Livengoodarea. State geologists, however, havebeen working on a comprehensive studyof the area, starting with release inFebruary 1999 of airborne magnetic andelectromagnetic geophysical maps for229 square miles.

Geologists from the Alaska Divisionof Geological & Geophysical Surveyshave already hit the ground this summer,part of an effort to gather data for aground-truth inventory map of some 130square miles of that geophysical surveyarea.

According to a summary of DGGSwork in the area, 14 inactive placer gold

mines and nine metallic lode occurrencesoccur in the Livengood area. Lodeprospects with gold, mercury and/or anti-mony mineralization are concentrated onthe west end of Money Knob.

Approximately 500,000 ounces ofplacer gold have been mined from theregion since 1914, with the most produc-tion from Livengood Creek, according tothe DGGS summary.

“Numerous felsic dikes and sills havebeen previously mapped in the centralpart of the Livengood district on MoneyKnob and the igneous rocks have a spatialassociation with the headwaters and pre-sumed source rock for most of the dis-trict’s placer gold, especially deposits inRuth, Lillian and Olive creeks,” the sum-mary said.

In addition to providing a better under-standing of the geologic framework forore deposits in the Livengood area,DGGS’s work “should stimulateincreased mineral exploration investmentwithin this belt of rocks.” Geologic mapswill be completed by June 2004, accord-ing to DGGS. ●


HARDROCK

In 2002, AngloGold punched threecore holes on the Gobi property. Thatwork turned up “smoke,” Fairbank said.“None had ore grade mineralization, butone had a very interesting alteration andlow levels of gold … trace gold through-out the hole.”

His company released data on the bestdrill intercepts from last year’s work,which included a three meter section thatcontained 1.05 grams per ton of rock.

Other property ownersAngloGold has two drill holes planned

on the Gobi property, and two on adjoin-ing claims held by Zeus Exploration Inc.,based in Lakewood, Colo. The remainingdrill holes and camp facilities for thesummer program will be located onclaims staked by Rimfire Alaska Ltd.,based in Vancouver, B.C.

AngloGold’s drill crews have approvalto work on the Pogo area property untilAug. 8. Up to eight exploration workerswill be supported by helicopter accessfrom Delta Junction. ●


POGO

latest technologies. Industry officialshave argued that some of the off-limitscoastal areas have large natural gasdeposits that can be developed withoutharming the environment.

The Bush administration says it hasno intention of tampering with the bans.They protect waters along both coasts as

well as the eastern Gulf of Mexico andsome waters off Alaska from oil and gasdevelopment. The Interior Departmentsupports the new study and said it doesnot affect the bans or “our commitmentto them.”

Environmentalists reacted sharply tothe Senate action.

It “undermines 20 years of strongcongressional and administrative sup-port for protecting America's coastalareas from harmful offshore oil and gas

activities,” said Lisa Speer, a marinebiologist at the Natural ResourcesDefense Council.

“Allowing the inventory to go for-ward puts marine life and America'scoasts at risk,” said Carl Pope, executivedirector of the Sierra Club, because it“opens the door to destructive offshoredrilling.”

Even if the study does not lead to oildevelopment, environmentalists said thekind of seismic tests that would be used

have their own effect on marine life. Thetests, which use high decibel noise gen-erated by firing an air gun underwater,are harmful to fish and other sea life,Speer said.

The oil and gas industry has main-tained that the danger to sea creaturesfrom seismic studies has been exaggerat-ed. Also, they say, any potential prob-lems can be mitigated by monitoring andcontrolling test areas.

—H. JOSEF HEBERT, Associated Press Writer


STUDY

PETROLEUM NEWS • WEEK OF JUNE 22, 2003 A17OIL PATCH INSIDER

Limits on exploration The Independent Petroleum Association

of America has estimated the limits onexploration are preventing the developmentof 137 trillion cubic feet, only 40 tcf short ofU.S. proved reserves at the end of 2002.

Natural Gas Supply Association boardmember Dick Sharples told the HouseEnergy and Commerce Committee June 10that Washington must allow greater accessto some resource-rich federal lands andwaters that are currently closed to explo-ration.

He said the U.S. government must alsocreate a regulatory framework that speeds

up exploration and development approvalsto deal with gas supply challenges.

“The natural gas market is tight and weexpect it to remain so for the short-term,”Sharples said. “But the market still worksand natural gas prices will rise and fall toallow supply to meet demand.

“The challenge to producers is to con-vince policy makers at all levels of govern-ment to allow us access to gas-prone lands.”

Canadian limits Like its U.S. counterparts, the Canadian

Association of Petroleum Producers esti-mates Canada has the potential to boostreserves in basins that are currently underdevelopment to 375 trillion cubic feet from300 tcf, including opportunities north of the60th parallel along with coalbed methane.

Canadian Association of PetroleumProducers president Pierre Alvarez told theFinancial Post that the industry wants towork with government to turn reserves in thelower Northwest Territories and Yukon intoreserves and eventually into production.

He said there is no question that theWestern Canada Sedimentary Basin, thesource of more than 90 percent of Canada’sgas, continues beyond northern Alberta andBritish Columbia into the two territories.

“There is no reason for the geology tostop at the 60th parallel,” he said.

The Fort Liard area of the NorthwestTerritories is already an active producingfield and is viewed by geologists as a primetarget for major discoveries and high-vol-ume wells, but land sales have been stymiedby aboriginal land claims negotiations.

Canadian Association of PetroleumProducers Chairman John Dielwart saidCanadian producers are expected to set newrecord by completing 11,000 gas wells thisyear.

In fact, the latest industry figures point to11,500 completions, easily topping the 2001benchmark of 10,762 wells. And there is nosign of the pace slackening, with new wellpermits on track to reach about 14,500, orabout 800 more than the 2001 record.

For the first five months of 2003, gas-tar-geted wells tallied 6,678, 54 percent aheadof the same period last year, while permitapprovals were 10,271, also up 54 percentfrom a year earlier.

But, mirroring U.S. projections, Canadadoes not expect that record drilling will havemuch impact on supplies. ●


BARRIERS

Assuming approvals, the line will initial-ly carry at least 800 million cubic feet perday, but compression facilities along theroute will allow capacity to grow to 1.2 bil-lion and possibly 1.9 billion cubic feet perday.

Underpinning the June 18 breakthrough,Calgary-based pipeline TransCanada willlend C$80 million to the Aboriginal PipelineGroup to cover a one-third share of prelimi-nary engineering and environmental studies.

The Aboriginal Pipeline Group is alsoeligible to use TransCanada funds to supportfinancing its share of construction costs.

TransCanada has option Should firm shipping commitments rise

above capacity of the three anchor fields —Niglintgak, Taglu and Parsons Lake — theAboriginal Pipeline Group will be entitled tofirst increase its interest up to one-third for10 years after start-up.

In exchange, the Delta gas owners —Imperial Oil 50 percent, ConocoPhillipsCanada 25 percent, Shell Canada 17 percentand ExxonMobil Canada 8 percent — willgive TransCanada an option to buy 5 percentof the project, along with a guarantee that theArctic gas will join TransCanada’s existingAlberta network.

TransCanada will also have the right toraise its stake by acquiring up to 50 percentof any portions offered for sale by the fourproducer companies.

TransCanada chief executive officer HalKvisle said in a statement that gas fromnorthern Canada will “help meet anticipatedincreases in demand and will help keep ourexisting pipeline facilities full.”

Economic self-sufficiency within reach Aboriginal Pipeline Group Chairman

Fred Carmichael said the deal “puts the nec-essary funding in place to go forward withthis pipeline project” through an “unprece-dented partnership” of aboriginal people andthe resource industry.

He said economic self-sufficiency now

seems within reach of Canada’s northernnatives, ensuring a “great future for our chil-dren.”

The agreement reflects a changed aborig-inal attitude to the gas project over the last30 years since community opposition scut-tled the first attempt at developing Arcticgas.

Aboriginal Pipeline Group membersinclude groups controlled by the Gwich’in,Inuvialuit, Deh Cho, Sahtu, Akaitcho,Dogrib, Salt River, North Slave MetisAlliance and South Slave Metis Alliance.

K.C. Williams, president and chief exec-utive officer of Imperial Oil Resources —the lead partner in the Delta producers’ con-sortium — described the deal as a “very sig-nificant step forward” by enabling aborigi-nals to become full partners.

TransCanada has delta gripThe deal gives TransCanada a tight grip

on carrying gas from the delta while stillleaving it strongly placed through its jointownership of Foothills Pipe Lines to partici-pate in the Canadian portion of any overland

pipeline from the North Slope to the Lower48.

But William Lacey, a pipeline analystwith FirstEnergy Capital, told the FinancialPost that the terms do not give TransCanadacontrol over where the gas is shipped to.

However, moving gas through the estab-lished TransCanada system is expected tolower costs for producers and consumers.

The agreement does provide for theremoval of gas liquids at Norman Wells inthe central Northwest Territories for ship-ment through the Enbridge-owned crude oilline to northern Alberta.

The new level of certainty over the deltaproject should further spur activity in theregion by the Mackenzie Delta ExplorersGroup, comprising EnCana, Petro-Canada,Anadarko Canada, BP Canada Energy,Burlington Resources Canada Energy,Chevron Canada Resources and DevonCanada.

New discoveries by those companies areneeded to give them access to the pipelineand support an aboriginal ownership posi-tion. ●


DEAL

originally expected, so we’re evaluatingwhether or not to drill the other twowells. … but at this point it doesn’t looklikely.”

Hanley said the company is also “inthe planning stages right now” as to whatit’s going to do next with the Arctic plat-form.

It expects to make a decision on bothwithin three weeks, he said.

Holland heads toHouston

JOHNHOLLAND, ERAAVIATION’s mar-keting manager, istaking flightHouston-way wherehe’ll apply his mar-keting skills to off-shore Gulf Coastactivities.Holland?s Alaskaassignment withEra lasted six years;his new position iseffective August 1.Houston is head-quarters for RowanCompanies, whichowns Era.

Kaye Bennerand Senior VicePresident BryanBlixhavn will assume marketing respon-sibilities for Alaska operations for thetime being. Benner is executive assistant

to Blixhavn and Executive Vice PresidentLash Larew.

It was just a ‘cut andpaste’ mistake

A SIMPLE CLERICAL ERROR willcost Calgary-based TransAlta US$24million in second-quarter, pre-tax earn-ings and left flustered executives at thecompany groveling.

“On a personal basis, as CEO, a direc-tor and a shareholder of TransAlta, I amclearly disappointed over this event,”Steve Snyder, chief executive officer ofCanada’s biggest investor-owned powergenerator, told analysts June 3.

“It was literally a cut-and-paste errorin an Excel spreadsheet that we did notdetect,” he confessed.

TransAlta’s blunder became part of asealed bid to New York Independent

System Operator for May contracts in theNew York market that hedges the cost oftransmission.

As a result, TransAlta said it won con-tracts it did not want at prices it had notintended to pay. And New York ISO rulesdo not allow a reversal of bids for anyreason.

TransAlta said the error was made byan employee in Annapolis, Md., whomisplaced a number on the spreadsheet,boosting its bid to 15 times the amountof transmission it required.

“In all our years of trading, we havenever seen one like this,” said Snyder.

He said the employee is one ofTransAlta’s “most diligent people” andwill not be fired.

However, TransAlta has suspended allbidding on transmission contracts until itconducts an “extensive review of allprocesses, procedures and controls.”

TransAlta has C$9 billion of coal-fired, natural gas-fired, hydro and renew-able power generation assets in Canada,the United States, Mexico and Australiaand 10,000 megawatts of capacity eitheroperating or under construction.

ConocoPhillips Alaska namesnew vice president

CONOCOPHILLIPS ALASKAPresident Kevin Meyers said June 4 thatDarren Jones has been named vice presi-dent, Kuparuk and Cook Inlet, replacingJoe Leone, who recently transferred toConocoPhillips corporate headquarters inHouston.

Jones’ most recent position was gener-al manager of upstream strategy andportfolio management withConocoPhillips in Houston. He began hiscareer as an engineer with ARCOInternational Oil and Gas in 1982 in LosAngeles and has worked in Alaska ontwo previous occasions with ARCO.

Sumitomo gets five-yearpipe contract with BP

BP EXPLORATION (ALASKA) hasawarded Sumitomo a five-year contractfor pipe services, a BP spokesman toldPetroleum News in mid-June.

The contract is “not for the supply ofthe pipe itself,” he said, as BP “has exist-ing supply sources in the Lower 48 (car-bon pipe) and Japan (chrome pipe) whichare unaffected by this change of contrac-tor.”

Services involve the “placement oforders on pipe mills on our behalf, andmanaging the supply chain between the

Anadarko’s Arctic platform set up and operating at Hot Ice No. 1 in March 2003.


INSIDER

JOHN HOLLAND

KAYE BENNER

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A18 PETROLEUM NEWS • WEEK OF JUNE 22, 2003ADVERTISER INDEX

Companies involved in NorthAmerica’s oil and gas industry

ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS

All of the companies listed above advertise on a regular basis with Petroleum News

Business Spotlight

AAgriumAir Logistics of AlaskaAlaska Airlines CargoAlaska AnvilAlaska Coverall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A19Alaska DreamsAlaska Interstate ConstructionAlaska Marine Lines. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Alaska Railroad Corp.Alaska Rubber & SupplyAlaska TelecomAlaska Tent & TarpAlaska TextilesAlaska Valve & FittingAlaska West Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Alaska’s PeopleAlliance, TheAlpine-MeadowAmerican Marine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3Arctic ControlsArctic Pacific EnterprisesArctic Slope Telephone Assoc. Co-opArrowHealthASRC Energy Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6Avalon Development

B-FBadger ProductionsBaroid Drilling Fluids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A19Brooks Range Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4CameronCapital Office SystemsCarlile Transportation ServicesChiulista Camp ServicesClarion SuitesCleanaire AlaskaCN AquatrainColdwell BankerColvilleConam ConstructionConocoPhillips AlaskaCook Inlet Tug & BargeCrowley Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12Cruz ConstructionDowland - Bach Corp.Doyon DrillingDura-Wrap ContainmentsDynamic Capital ManagementEagle EnterprisesEngineered Fire SystemsENSR AlaskaEpoch Well ServicesEra AviationESS Support Services WorldwideEvergreen Helicopters of AlaskaEvergreen Resources AlaskaF.A.T.S.Fairweather Companies, TheFirst National Bank AlaskaFMC Energy Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5Flowline AlaskaForest Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A19Frontier Flying Service

G-MGolden North Van LinesGolder AssociatesGreat NorthwestH.C. PriceIndustrial Project ServicesInspirations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14Integrated Systems GroupIRF GroupJava KingJackovich Industrial & Construction SupplyJudy Patrick PhotographyJungle Jim’s FloorcoveringKenai Aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5Kenworth Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9KPMG LLP

Kuukpik Arctic Catering . . . . . . . . . . . . . . . . . . . . . . . . . . . A5Kuukpik - Fairweather - Veritas . . . . . . . . . . . . . . . . . . . . A11Kuukpik - LCMFLounsbury & AssociatesLynden Air Cargo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Lynden Air Freight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Lynden Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Lynden International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Lynden Logistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Lynden Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20Lynx EnterprisesMachinery Technical SupportMapmakers of AlaskaMarathon OilMaritime HelicoptersMI SwacoMichael Baker Jr.Midtown Auto Parts & MachineMillennium HotelMontgomery Watson Harza . . . . . . . . . . . . . . . . . . . . . . . . A9MRO Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3

N-PNabors Alaska DrillingNANA/Colt Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . A7Natco CanadaNeeser ConstructionNEI Fluid TechnologyNordic/Calista ServicesNorthern Air CargoNorthern LightsNorthern Testing LaboratoriesNorthern Transportation Co.Offshore Divers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4Oil and Gas Supply Co.Oilfield TransportPanalpinaPDC/Harris GroupPeak Oilfield Service Co.Penco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3Perkins CoiePetroleum Equipment & ServicesPetrotechnical Resources of AlaskaPGS Onshore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A11ProComm Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8PSI Environmental & Instrumentation

Q-ZQUADCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8R & R Scaffold ErectorsSalt + Light CreativeSchlumberger Oilfield ServicesSECORP IndustriesSecurity AviationSeekins FordShred Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3Snowbird ManagementSOLOCO (Dura-Base)Sourdough ExpressSpan-Alaska Consolidators . . . . . . . . . . . . . . . . . . . . . . . . A10STEELFABTaiga AdventuresThrifty Car RentalTOTE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13Totem Equipment & SupplyTravco Industrial HousingTucker Sno-CatUdelhoven Oilfield Systems ServicesUmiat CommercialUnique MachineUnitech of AlaskaUnited Van LinesUnivar USAURSU.S. Bearings and DrivesVeco AlaskaWayne’s Original Texas Bar-B-QWood Group (Alaska)XTO Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2ZY-TECH Global Industries

Keola Pang-Ching, director of cargosales and marketing

Alaska Airlines In the last two years Alaska

Airlines, a passenger and air cargocompany, began serving Adak,Calgary, Cancun, Boston, Denver,Washington, D.C. (Dulles andNational), Miami and Orlando;Guadalajara service begins July 10. ItsGoldRush airport-to-door small parceldelivery service in Alaska (statewide)was also launched during this period.Alaska Airlines now serves more than50 cities in Canada, the United Statesand Mexico.

Keola Pang-Ching is director ofcargo sales and marketing for AlaskaAirlines and Horizon Air. Before his 19years with Alaska Airlines he workedfor Wien, Western and Hawaiian Air.Born in Hilo, Keola lived in Anchoragefor 10 years. Despite a 100-degreetemperature variance on his arrival inAlaska, he quickly adjusted (give ortake several layers of wool clothing).He is now based in Seattle.

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Don Fell, founder

MaritimeHelicopters Inc.

Maritime Helicopters, based inHomer and Kodiak, Alaska, operatesfour and six passenger Bell Ranger hel-icopters and a versatile helipad-equipped research vessel for industryand government activities. Its helicop-ter pilots, vessel crews and mainte-nance personnel have many years ofexperience with Arctic flying andmarine weather conditions. From DutchHarbor, Maritime serves the fishing,energy and marine transportationindustries.

Don Fell founded the company in1973 and remains president. With anAir Force and bush flying background,Don loves being in the air and on thewater. He and his family, including fivechildren, can often be found at theirfavorite fishing grounds. Don’s mostchallenging and rewarding off-dutyactivity is raising The World’s BestOysters.

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By PAULA EASLEY

mills and the North Slope,” he added.Sumitomo has established an

Anchorage-based company calledTubular Services Alaska LLC.

The former pipe services contractorfor BP in Alaska was NI-Energy.

McWhorter joins LynxEnterprises

LYNX ENTERPRISES, an Anchorage-based consulting firm specializing inAlaska permittingand environmentalwork, recently hiredRob McWhorter assenior project man-ager.

A recent retireefrom the JointPipeline Office,McWhorter hasextensive experi-ence in environmen-tal planning and external relations withthe U.S. Bureau of Land Management.

Running the GauntletNOBODY KNOWS THE TROUBLES

Canadian junior Gauntlet Energy hasseen in the last few months.

They all culminated June 17 with anorder from the Alberta Court of Queen’sBench preventing creditors of thebesieged E&P company from “taking anylegal actions against Gauntlet or itsassets” while Gauntlet tries to bail out ofits financial woes.

The order is the rough Canadianequivalent of Chapter 11 in the UnitedStates.

Here’s what pushed Gauntlet into theranks of penny stocks after it started trad-ing on the Toronto Stock Exchange andquickly became a hot buy among oilpatch investors, propelling its share valueto an all-time high of C$10.92 in Maylast year:

• Its natural gas production from ahigh-risk play in northern Alberta startedto tumble towards the end of last yearand averaged 12 million cubic feet perday in the first quarter — barely half itsaverage volume in 2002.

• Its gas reserves were slashed in 2002to 29.8 billion cubic feet from 83 bcf.

• Winter drilling, instead of turning itsfortunes around, compounded the trou-bles by encountering water, makingfuture output uncertain and increasing netdebt to C$82 million from C$71 million.

• Toronto-based investment bankerGriffiths McBurney & Partners was hiredto examine strategic alternatives —including seeking out a buyer — and dealwith liquidity concerns. It resigned asadvisor and Gauntlet President and ChiefExecutive Officer Laurie Sibbald wasushered out.

• A C$13.9 million lawsuit was filedlast week by retail and institutionalinvestors against the company, its direc-tors and engineers, claiming damagesfrom a flow-through share offering thatraised C$25 million at C$7.80 a share.

•Gauntlet shares have crashed to 13cents and the Toronto Stock Exchange isconducting an “expedited review” ofGauntlet for possible delisting.

In the midst of all this, Gauntlet offi-cials have gone underground.

Alyeska renews AirLogistics contract

AIR LOGISTICS OF ALASKA recent-ly signed a multi-year renewal contractwith Alyeska Pipeline Service Co. The

helicopter transportation contract coversmaintenance and security support totrans-Alaska pipeline operations usingaircraft based at multiple locations alongthe TAPS corridor.

Air Logistics main office is inFairbanks; the company has branches inDeadhorse, Valdez and Anchorage.

It’s all in a name JUDY BRADY, executive director of

the Alaska Oil and Gas Association, saidJune 16 at theAOGA-AnchorageChamber ofCommerce luncheonthat “this is always afun luncheon. …You get to seewho’s still aroundand what the nameof their companyis…”

When she intro-duced KevinMeyers, presidentand chief executiveofficer ofConocoPhillipsAlaska, and thepresident of AOGA,she mentioned thathis company affilia-tion has changed anumber of times.

Meyers, outgoing AOGA president(Steve Marshall, president of BPExploration (Alaska), is the new presi-dent), said he thought concluding hisAOGA term of office is “a major accom-plishment. Generally when I’m president

of something it either gets bought, sold ormerged. Of course, I have a few moreweeks, Judy, so don’t count your chick-ens yet,” he said, referring to his consec-utive tenures as president of ARCOAlaska, Phillips Alaska andConocoPhillips Alaska.

When Brady introduced JackBergeron, Total’s Alaska manager, shesaid: “Jack is going to fit in just finehere, because when he started he waswith Fina and then since he’s been there,first it was TotalFina, then TotalFinaElf,now it’s gone back to Total.”

Gary Carlson, senior vice president ofForest Oil, noted that Forest is an orderof magnitude smaller than the companiesrepresented by the other speakers —ConocoPhillips, Total, ExxonMobil andBP — but, he said, “They’ve all gonethrough major mergers and have multiplenames. Forest Oil is a $1.9 billion com-pany, 1.5 tcf of reserves, but it is an 87-year old upstream independent oil andgas company with the same name it start-ed with.”

Oil Patch Insider is compiled by PaulaEasley and Kay Cashman. If you have anews tip or press release for Oil PatchInsider, please [email protected], phone(907) 522-9469, or fax (907) 522-9583.

PETROLEUM NEWS • WEEK OF JUNE 22, 2003 A19OIL PATCH INSIDER

ROB MCWHORTER

JUDY BRADY

KEVIN MEYERS

Air Logistics of Alaska recently signed a multi-year renewal contract with Alyeska PipelineService Co.

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INSIDER

A20 PETROLEUM NEWS • WEEK OF JUNE 22, 2003ADVERTISEMENT

PETROLEUM NEWSwww.PetroleumNews.com

Volume 8, No. 25June 2003

FrontUp

Brooks Range SupplyJudy Patrick Photography

9

10

First National Bank Alaska

Compositech LLC

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Offshore Divers19

FEATURED COMPANIES

Providing information about companies that serve Alaska’s oil and gas industry

This month's directory coveris a B.O.P. — i.e. blow outpreventer — located in thecellar of Nabors Rig 7ES,which is working on Alaska'sNorth Slope.

Photo by Judy Patrick

B2 PETROLEUM NEWS • WEEK OF JUNE 22, 2003PETROLEUM DIRECTORY

Companies involved in Alaska’soil and gas industry

A

AgriumAir Logistics of AlaskaAlaska Airlines CargoAlaska AnvilAlaska CoverallAlaska DreamsAlaska Interstate ConstructionAlaska Marine LinesAlaska Railroad Corp.Alaska Rubber & SupplyAlaska TelecomAlaska Tent & TarpAlaska Valve & FittingAlaska West ExpressAlaska’s PeopleArctic Pacific EnterprisesArctic Slope Telephone Assoc. Co-opArrowHealthASRC Energy ServicesAvalon Development

B-F

Badger ProductionsBaroid Drilling FluidsBrooks Range SupplyCameronCapital Office SystemsCarlile Transportation ServicesChiulista Camp ServicesClarion SuitesCleanaire AlaskaCN AquatrainColdwell BankerColvilleConam ConstructionConocoPhillips AlaskaCook Inlet Tug & BargeCrowley AlaskaCruz ConstructionDowland - Bach Corp.Doyon DrillingDura-Wrap ContainmentsDynamic Capital ManagementEagle EnterprisesEngineered Fire SystemsENSR AlaskaEpoch Well ServicesEra AviationESS Support Services WorldwideEvergreen Helicopters of AlaskaEvergreen Resources Alaska

F.A.T.S.Fairweather Companies, TheFirst National Bank AlaskaFMC Energy SystemsFlowline AlaskaForest OilFrontier Flying Service

G-M

Golden North Van LinesGolder AssociatesGreat NorthwestH.C. PriceIndustrial Project ServicesInspirationsIntegrated Systems GroupIRF GroupJava KingJackovich Industrial & ConstructionSupplyJudy Patrick PhotographyJungle Jim’s FloorcoveringKenai AviationKenworth AlaskaKPMG LLPKuukpik Arctic Catering Kuukpik - Fairweather - VeritasKuukpik - LCMFLounsbury & AssociatesLynden Air CargoLynden Air FreightLynden Inc.Lynden InternationalLynden LogisticsLynden TransportLynx EnterprisesMachinery Technical SupportMapmakers of AlaskaMarathon OilMaritime HelicoptersMI SwacoMichael Baker Jr.Midtown Auto Parts & MachineMillennium HotelMontgomery Watson HarzaMRO Sales

N-P

Nabors Alaska DrillingNANA/Colt EngineeringNatco CanadaNeeser ConstructionNEI Fluid Technology

Nordic/Calista ServicesNorthern Air CargoNorthern LightsNorthern Testing LaboratoriesNorthern Transportation Co.Offshore DiversOil and Gas Supply Co.Oilfield TransportPanalpinaPDC/Harris GroupPeak Oilfield Service Co.PencoPerkins CoiePetroleum Equipment & ServicesPetrotechnical Resources of AlaskaPGS OnshoreProComm AlaskaPSI Environmental & Instrumentation

Q-Z

QUADCOR & R Scaffold ErectorsSalt + Light CreativeSchlumberger Oilfield ServicesSECORP IndustriesSecurity AviationSeekins FordShred AlaskaSnowbird ManagementSOLOCO (Dura-Base)Sourdough ExpressSpan-Alaska ConsolidatorsSTEELFABTaiga AdventuresThrifty Car RentalTOTETotem Equipment & SupplyTravco Industrial HousingTucker Sno-CatUdelhoven Oilfield Systems ServicesUmiat CommercialUnique MachineUnitech of AlaskaUnited Van LinesUnivar USAURSU.S. Bearings and DrivesVeco AlaskaWayne’s Original Texas Bar-B-QWood Group (Alaska)XTO EnergyZY-TECH Global Industries

PETROLEUM NEWS • WEEK OF JUNE 22, 2003 B3PETROLEUM DIRECTORY

Access Road/Work Surface

SOLOCO (Dura Base)207 Town Center Pky.Lafayette, LA 70506-7524Contact: Keith PearsonPhone: (337) 981-5058Fax: (337) 984-9241Email: [email protected] COMPOSITE MAT SYSTEM isthe world’s most advanced solution fortemporary surfaces including heavy-dutyroads, turnarounds, work and stagingareas. It’s strength and durability allowsyou to work year-round in the harshestconditions. Installs and cleans up quickly.It’s a permanent solution to your tempo-rary road and work surface needs.

Air Charter & Support

Air Logistics of Alaska1915 Donald Ave.Fairbanks, AK 99701Phone: (907) 452-1197Fax: (907) 452-4539Contact: Dave ScarbroughPhone: Anchorage: (907) 248-3335Email: [email protected] contract and charter services.

Era Aviation6160 Carl Brady Dr.Anchorage, AK 99502Contact: John HollandPhone: (907) 248-4422Fax: (907) 266-8383Helicopter and fixed wing contract andcharter services; scheduled airline service.

Evergreen Helicopters of Alaska1935 Merrill Field DriveAnchorage, AK 99501Contact: Joy Journeay, marketing mgr.Phone: (907) 257-1519Fax: (907) 279-6816Email: [email protected]: Greg Thies, director of market-ingPhone: (907) 257-1504Email: [email protected] office: (907) 443-5334Airlines office: (907) 257-1500Logistics: (907) 243-8677Web site: evergreenaviation.comEvergreen’s diverse fleet has providedaward-winning safety to Alaskans since1960 in petroleum exploration & produc-tion, firefighting, forestry, construction,search & rescue, cargo transport, and util-ity transmission.

Kenai AviationP.O. Box 46Kenai, AK 99611Contact: Bob or Jim BielefeldPhone: (907) 283-4124Phone: (800) 478-4124 (within Alaska)Fax: (907) 283-5267Email: [email protected] taxi services provided since 1961 statewide, mostly Cook Inlet. Single engineand twin Bonanza.

LyndenAlaska Marine LinesAlaska Railbelt MarineAlaska West ExpressLynden Air CargoLynden Air FreightLynden InternationalLynden LogisticsLynden Transport6441 S. Airpark Pl.Anchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden com-panies includes truckload and less-than-truckload highway connections, sched-uled barges, intermodal bulk chemicalhauls, scheduled and chartered airfreighters, domestic and international airforwarding and international sea for-warding services.

Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Keven Schlosstein, sr. dir. corpo-rate planningPhone: (907) 249-5137Fax: (907) 249-5190E-mail: [email protected]: www.nac.aeroServing the aviation needs of rural Alaskafor almost 50 years, NAC is the states

largest all cargo carrier moving nearly100 million pounds of cargo on sched-uled flights to 17 of Alaska’s busiest air-ports. NAC’s fleet of DC 6 and B727 air-craft also schedules charters and flagstops to 44 additional communities.

Security Aviation3600 International Airport Rd.Anchorage, AK 99502Contact: S. Joe KapperPhone: (907) 248-2677 – 24 hour serviceFax: (907) 248-6911Email: [email protected]: www.securityaviation.bizAll twin engine aircraft includingCitation-II business jet. Crew changes, hotfreight-worldwide, VIP tours, emergencyresponse. Approved by all oil companies,Alyeska & DOD.

Air Purification

Cleanaire AlaskaP.O. Box 200142Anchorage, AK 99520Phone: (907) 561-2735Phone: 1-800-478-2735Fax: (907) 563-5678Web site: www.cleanairstore.comSince 1982, Cleanaire Alaska has providedAlaska the best indoor air cleaningdevices available and carbon filtrationdevices for environmental clean up.

Architecture

LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architecturalmgr.Contact: Willey Wilhelm, engineeringmgr.Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Phone: (800) 955-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (800) 478-8213Email: [email protected]: (907) 670-4739Email: [email protected] specialized architectural and engi-neering design for all structures;water/sewer, fuel and transportation sys-tems design; contractor support survey-ing and permitting for oil and gas devel-opment; dredging operations, remotesite land and hydrographic surveying.

Arctic Engineering

Golder Associates1750 Abbott Rd., Ste. 200Anchorage, AK 99507Contact: Bob Dugan, mgr., TomKrzewinski, Mark Musial, Bucky TartPhone: (907) 344-6001Fax: (907) 344-6011Website: www.golder.comProviding geotechnical engineering,water resource, and geosciences servicesin support of resource development proj-ects in Alaska and the Arctic. Otheroffices worldwide.

Arctic Gear

Eagle Enterprises700 W. International AirportAnchorage, AK 99578Contact: Tom Condon, Industrial SalesMgr.Phone: (907) 562-2331Fax: (907) 562-6955Email: [email protected] Offices: HomerEagle Enterprises is an Alaskan ownedcompany specializing in industrial avia-tion, marine, and outdoor safety equip-ment, services & supplies.

PGS Onshore341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Larry Watt, Alaska Area Mgr. Phone: (907) 569-4049Fax: (907) 569-4047Email: [email protected] Office738 Hwy 6 South, Ste 900Houston, TX 77079Contact: Gehrig SchultzPhone: (281) 589-6732Fax: (281) 589-6685Email: [email protected] acquisition and processingfor the petroleum industry. PGS Onshoreprovides fully rubber tracked Arctic geo-physical crews to acquire the highestdensity data with the softest environ-mental footprint on the North Slope.

Aviation Fuel Sales

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Rick Hofreiter or John DalyPh: (907) 659-3197Fx: (907) 659-3190Web site: www.colvilleinc.comDiesel, gasoline, jet fuel, aviation gaso-line in bulk and small quantity deliveries,electronic card-lock fleet management,solid waste and recycling, steel, industrialgases and solid waste.

Maritime Helicopters3520 FAA Rd.Homer, AK 99603Contact: Audrey ReardenPhone: 907-235-7771Fax: 907-235-7741Email: [email protected] business since 1973, MaritimeHelicopters offers statewide (includingAleutian Islands) helicopter support frombases in Homer and Kodiak. We alsooffer an 86-foot research vessel with heli-

pad.

Umiat Commercial2700 S. Cushman St.Fairbanks, AK 99701Contact: Mike TolbertPhone: (907) 452-6631Fax: (907) 451-8632Email: [email protected] provides lodging and fuel sales atUmiat located on the Colville River. Weare open 24 hours a day everyday of theyear.

Bearings

U.S. Bearings & Drives611 E. International Airport Rd.Anchorage, AK 99518Contact: Dena Kelley, operations mgr.Phone: 563-3000Fax: 563-1003Email: [email protected] site: www.bearings.comU.S. Bearings & Drives, formerly BESCOhas been providing bearings and drivecomponents to our Alaskan customerssince 1952. We offer quality componentsand experienced personnel.

Buildings — Modular

Alaska Cover-All 6740 Jollipan Crt.Anchorage, AK 99507Contact: Paul Nelson, mgr.Phone: (907) 346-1319Fax: (907) 346-4400Email: [email protected]: Henry Brown Phone: (907) 646-1219We are the Alaska dealers for Cover-AllBuilding Systems. Steel framed, fullyengineered, LDPE fabric covered,portable buildings in 18 to 160 footwidths and any length.

Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] in design, sales and construc-tion of fabric covered steel buildings, acost efficient building solution for manyapplications. We offer our worldwide,longtime experience for your future proj-ect.

Travco Industrial Housing1507 8 St.Nisku, Alberta, CanadaContact: Stewart Orange, sales represen-tativePhone: (888) 387-2826Fax: (780) 955-8938Email: [email protected] Web site: www.travco.caTravco is a world-class manufacturer ofindustrial and commercial modular struc-tures. Our modular structures are usedaround the world as work camps, offices,wellsites, resorts, schools, etc.

Camps, Catering & Lodging

Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701Contact: Jim HaselbergerPhone: (907) 456-6328Fax: (907) 452-5260Email: [email protected] site: www.ptialaska.net/~aktent

Chiulista Camp Services301 Calista Ct., Ste. AAnchorage, AK 99518Contact: George B. Gardner, Presidentand GM.Phone: (907) 278-2208Fax: (907) 279-8430Email: [email protected]

Notice to advertisersCompanies contracted to advertise in Petroleum News are invited to supply color

or black and white photos for this directory. Contact Wadeen Hepworth for details:Call (907) 770-3506, email [email protected] or submit photos or

slides by mail to Wadeen’s attention at Petroleum News, P.O. Box 231651, Anchorage,AK 99523. All photos should be accompanied by a caption explaining when the pic-ture was taken and describing what’s in it.

CORRECTION

Photo caption incorrect A photo caption on page B24 of the May Petroleum Directory was incorrectly

identified as an Evergreen Helicopters Fairbanks helibase. The helicopters belongto Evergreen but the helibase belongs to the state.

NIL

S B

ERG

AN

B4 PETROLEUM NEWS • WEEK OF JUNE 22, 2003PETROLEUM DIRECTORYThe 100 percent Alaska Native ownedand operated catering company on theNorth Slope, catering and housekeepingto your tastes, not ours.

ESS Support Services Worldwide9210 Vanguard Dr., Ste 101Anchorage, AK 99507Contact: Deanne Earnheart, businessdevelopment coordinatorPhone: 344-1207Fax: 344-0353Email: [email protected]: www.ess-global.comThe Alaska division of the worlds largestcontract food service company. Visit ourweb site at www.ess-global.com

Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]



Wayne’s Original Texas Bar-B-Que3400 C. St.Anchorage, AK 99503Contact: Wayne BondPhone: (907) 569-9911Fax: (907) 349-1867In addition to dine-in, take-out, deliveryand drive-thru services, at Wayne’sOriginal Texas Bar-B-Que, we offer excep-tional catering services tailored to anyevent (3,000+). Referral letters availableupon request.

Cellular Communications

ASTAC4300 B Street, Ste. 501Anchorage, AK 99503Contact: Erin EalumPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] service cellular company providingcellular service, and equipment sales andservice, maintenance, installation, andcustom calling features.

Chemicals

AgriumP.O. Box 575Kenai, AK 99611Contact: Lisa Parker, GovernmentRelationsPhone: (907) 776-8121Fax: (907) 776-5579Email: [email protected]: www.agrium.comValue added manufacturer of fertilizerproducts.

Baroid Drilling Fluids6900 Arctic Blvd.Anchorage, AK 99518Contact: Tom BurginPhone: (907) 275-2612Fax: (907) 275-2650Email: [email protected] is a Halliburton company, operat-ing in Alaska for over 40 years. We pro-vide a full complement of fluid relatedproducts and services for the oil and gasindustry.

MI SWACO

721 W. First Ave.Anchorage, AK 99501 &225 W. 92nd Ave.Anchorage, AK 99515Contact: Craig BieberPhone: (907) 274-5564Email: [email protected] or [email protected] SWACO DSR combines Alaska know-how and global strength to provide theoil industry with a full-service drillingpartner

Univar USA590 E. 100th Ave.Anchorage, AK 990515Contact: Ken LambertsenPhone: (907) 344-7444Fax: (907) 522-1486Email: [email protected] site: www.univarusa.comWorld’s largest industrial chemical distrib-utor serving Alaskans since 1924.Industrial emphasis in oil and gas refin-ing, procuring and gas treating.


Chemical Analytical Lab


Civil & Hazardous Waste


Commercial Diving

American Marine6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, Marine OperationsContact: Steve Stuart, Alaska RegionalManagerPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected]: amsghq.comAmerican Marine Corp. (American Divers)provides full service marine construc-tion/divers throughout Alaska and thePacific.

Offshore Divers5630 Silverado Way, A-9Anchorage, AK 99518Contact: Don Ingraham, Owner/Mgr.Contact: Leif Simcox, Owner/OperationsMgr.Phone: (907) 563-9060Fax: (907) 563-9061Email: [email protected] site: http//www.offshoredivers.comOffshore Divers is an Alaska owned div-ing contractor specializing in sub-sea oil-field work on mooring systems, pipelines,platforms and docks in Cook Inlet, on theNorth Slope and in Valdez.

Communications

ASTAC4300 B Street, Ste. 501

Anchorage, AK 99503Contact: Erin EalumPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] local and long distance service,maintenance and training, consultation,installation, engineering, Centrex, customcalling features, digital cross connect serv-ice, and digital data service.

Alaska Telecom6623 Brayton Dr.Anchorage, AK 99507Contact: Sandy GarvinPhone: (907) 344-1223Fax: (907) 344-1612Email: [email protected] telecommunications support tooil exploration and production compa-nies and contractors. Satellite communi-cations, voice, data, microwave, VHF/UHFradio, engineering and installation.

Michael Baker Jr.4601 Business Park Blvd., Ste. 42Anchorage, AK 99503Contact: Bud Alto, business unit mgr.Phone: (907) 273-1600Fax: (907) 273-1699Email: [email protected] site: www.mbakercorp.comJuneau office: 175 Franklin St., Ste. 420Juneau, AK 99801Contact: McKie Campbell, Sr. environ-mental mgr.Phone: (907) 463-3171Fax: (907) 463-3107Email: [email protected] firm with project man-agement, permitting, fiber optic, civil,structural, mechanical, electrical, andinstrumentation services. Establishedoffices in Anchorage and Juneau providediversified staff accepting the challenges,delivering excellence.

ProComm Alaska4831 Old Seward Hwy., #111Anchorage, AK 99503Contact: Natha Thompson, director ofsales & marketingPhone: (907) 373-7628Fax: (907) 373-7636Email: [email protected]: www.ProCommAk.comProComm Alaska represents the completeline of Motorola products and is aMotorola service center. We offer the lat-est two-way radio technology for busi-ness and public safety. Locations inAnchorage, Fairbanks, Wasilla andSoldotna.

Construction Equipment & Materials

Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] an independent Rockford steel build-ing dealer we provide full service, indus-try leading hi-tech durable steel construc-tion. The fully engineered and completebuildings guarantee fast and economicalon site erection.

Brooks Range Supply1 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll free: (866) 659-2550Fax: (907) 569-2650Email: [email protected] source on the Slope for safety sup-plies, welding supplies, automotive andtruck parts, hardware, tools, buildingmaterials, glass, propane, hydraulic hosesand fittings, paint and chemicals.

Jackovich Industrial & ConstructionSupplyFairbanks: 1600 Wells St.Attn: Buz JackovichPhone: (907) 456-4414Fax: (907) 452-4846Anchorage: 1716 Post RoadAttn: Steve SlonePhone: (907) 277-1406Fax: (907) 258-170024 hour emergency service. With 30 years

of experience, we're experts on arctic con-ditions and extreme weather.

R&R Scaffold Erectors1150 E. 68th Ave.Anchorage, AK 99518Contact: David BondPhone: (907) 344-5427Fax: (907) 349-3268Email: [email protected] site: www.scaffold-alaskaWe’re the company that contractors andOSHA inspectors go to for accurate, up-to-date scaffold regulations information.We’ve never had an OSHA safety viola-tion in our company history. We alsooffer competency training.

Construction Project Management

Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank WeissPhone: (907) 276-2747Fax: (907) 279-4088Email: [email protected] site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.

Arctic Pacific Enterprises2702 Gambell St., Ste., 101P.O. Box 241912 Anchorage, AK 99524Contact: Peny FrisbyPhone: (907) 277-6442Fax: (907) 277-6443Email: [email protected] site: www.arcticpacific.comArctic Pacific Enterprises, LLC is a Nativeowned business located in Anchorage.We provide construction managementservices of capital infrastructure projectsin rural Alaska (bulk fuel facilities, electri-cal powerhouses, etc.

Lounsbury and Associates723 W. 6th Ave.Anchorage, AK 99501Contact: Craig L. Savage, presidentE-mail: [email protected]: Jim Sawhill, vpEmail: [email protected]: (907) 272-5451Fax: (907) 272-9065Toll Free: (800) 478-5451Website: www.lounsburyinc.comProvides civil engineering and projectmanagement services for oilfield devel-opment. Recent projects include: Tarn,Pam and Colville Delta North.

Michael Baker Jr.4601 Business Park Blvd., Ste. 42Anchorage, AK 99503Contact: John M. Eldred, business unitmgr.Phone: (907) 273-1115Fax: (907) 273-1699Email: [email protected]: www.mbakercorp.comJuneau office: 175 Franklin St., Ste. 420Juneau, AK 99801Contact: McKie Campbell, sr. environmen-tal mgr.Phone: (907) 463-3171Fax: (907) 463-3107Email: [email protected] skills include civil, structural,mechanical, electrical, project manage-ment, GIS, and hydrology. Energy servicesinclude CMMS (computerized mainte-nance management), managed opera-tion and maintenance, training/compe-tency services, and other related energyservices.

Nana /Colt Engineering700 G Street, 5th floorAnchorage, AK 99501Phone: (907) 273-3900Fax: (907) 273-3990Contact: John MinierNANA/Colt offers project management,engineering, design, construction man-agement, and procurement services tothe oil industry.

VECO949 E. 36th Ave., Ste. 500Anchorage, AK 99508Contact: Roxanne Payne


Email: [email protected]: (907) 762-1510Fax: (907) 762-1001Website: www.VECO.comVECO is a multi-national corporation thatprovides services, project management,engineering, procurement, construction,operations and maintenance – to theenergy, resource and process industriesand the public sector.

Contractors — General

Alaska Telecom6623 Brayton Dr.Anchorage, AK 99507Contact: Sandy GarvinPhone: (907) 344-1223Fax: (907) 344-1612Email: [email protected] telecommunications support tooil exploration and production compa-nies and contractors. Satellite communi-cations, voice, data, microwave, VHF/UHFradio, engineering and installation.

Alaska Interstate Construction (AIC)P.O. Box 233769Anchorage, AK 99523Contact: John EllsworthPhone: (907) 562-2792Fax: (907) 562-4179


CONAM Construction301 W. Northern Lights Blvd., Ste 300Anchorage, AK 99503Contact: Bob StinsonPhone: (907) 278-6600Fax: (907) 278-3255Email: [email protected], gas, and mining facility; pipeline,civil, and commercial construction.

Cruz ConstructionHC04 Box 9323Palmer, AK 99645Contact: Dave or Dana CruzPhone: (907) 746-3144Fax: (907) 746-5557Email: [email protected] contractor specializing in heavycivil construction, horizontal directiondrilling for utilities. Ice road and icebridge construction throughout Alaska insupport of resource development.

Great NorthwestP.O. Box 74646Fairbanks, AK 99707-4646Contact: Buzz OtisPhone: (907) 452-5617Fax: (907) 456-7779

H.C. Price301 W. Northern Lights Blvd., #300Anchorage, AK 99503Contact: David L. MatthewsPhone: (907) 278-4400Fax: (907) 278-3255Other offices: Dallas, Texas, and interna-tional.Email: [email protected] contractor performing oilfield sup-port construction projects and otherheavy industrial projects statewide.

Montgomery Watson Harza4100 Spenard Rd.Anchorage, AK 99517Contact: Sandra HamannPhone: (907) 248-8883Fax: (907) 248-8884Email: [email protected] Watson Harza is a design-build engineering firm that has been pro-viding environmental engineering, con-struction, and remediation services inAlaska for the last 25 years.

Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, BusinessDevelopment/Ex. AffairsPhone: (907) 263-7000

Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.

Udelhoven Oilfield System Services Anchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Contractors — Pipeline


H.C. Price301 W. Northern Lights Blvd., #300Anchorage, AK 99503Contact: David L. MatthewsPhone: (907) 278-4400Fax: (907) 278-3255Other offices: Dallas, Texas, and interna-tional.Email: [email protected] contractor performing oilfield sup-port construction projects and otherheavy industrial projects statewide.

Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, BusinessDevelopment/Ex. AffairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.

Control Systems

Alaska Valve & Fitting6130 Tuttle PlaceAnchorage, AK 99501Contact: Ron TharpPhone: (907) 563-5630Fax: (907) 563-4721Email: [email protected]: www.SWAGELOK.comComplete line of genuine SWAGELOKproducts in stock. Tube fittings, valves,pipe fittings, stainless hose, leak detec-tors, tubing supports, industrial pressuregauges and stainless steel tubing.

Arctic Controls1120 E. 5th Ave.Anchorage, AK 99501Contact: Scott Stewart, presidentPhone: (907) 277-7555Fax: (907) 277-9295Email: [email protected]: www.arcticcontrols.comAn Alaskan owned and operated compa-ny since,1985, Arctic Controls, Inc. hasbeen highly successful as manufacturerrepresentatives for the state of Alaska inthe Process Control and Instrumentationfield. Selling equipment to the oil andgas markets, mining and water waste-water/municipal markets.

Dowland-Bach6130 Tuttle Pl.P.O. Box 230126Anchorage, AK 99523Contact: Lynn Johnson, presidentPhone: (907) 562-5818Fax: (907) 563-4721Email: [email protected] site: www.dowlandbach.com

Document Services

Shred Alaska840 Norman St.Anchorage, AK 99504Contact: Cindy or Larry Hinkle, owners

Phone: (907) 929-1154Fax: (907) 929-1154Email: [email protected] Alaska provides an on-site docu-ment destruction service for the immedi-ate, secure disposal of confidential andsensitive materials. Your documents areshredded on board a custom designedtruck equipped with a high-poweredindustrial shredder. No documents leavethe business site until they are completelydestroyed. They are then taken to therecycling center.

Drilling & Well Services

Baroid Drilling Fluids6900 Arctic Blvd.Anchorage, AK 99518Contact: Tom BurginPhone: (907) 275-2612Fax: (907) 275-2650Email: [email protected] is a Halliburton company, operat-ing in Alaska for over 40 years. We pro-vide a full compliment of fluid relatedproducts and services for the oil and gasindustry.

Doyon Drilling101 W. Benson Blvd., Ste. 503Anchorage, AK 99503Contact: Ron WilsonPhone: (907) 563-5530Fax: (907) 561-8986Email: [email protected]

FMC Energy Systems700 W. International Airport Rd.Anchorage, AK 99518-1122Contact: Alan McArthur, Area Mgr.Phone: (907) 563-3990Fax: (907) 563-5810Email: [email protected] of wellheads and Christmastrees, to API specifications, with repairfacility and service organization to sup-port all North Slope and Cook Inlet loca-tions.

MI SWACO721 W. First Ave.Anchorage, AK 99501Contact: Craig BieberPhone: (907) 274-5051Fax: (907) 279-6729Email: [email protected], AK 99501Contact: Dana RhodesPhone: (907) 274-5541Email: [email protected] SWACO combines Alaska know-howand global strength to provide the oilindustry with a full-service drilling part-ner

Nabors Alaska Drilling2525 C St., Ste. 200Anchorage, AK 99503Contact: Trudy ElderPhone: (907) 263-6000Fax: (907) 563-3734Email: [email protected]

Petroleum Equipment & Services5631 Silverado Way, Ste GAnchorage, AK 99518Contact: Kevin Durling/Donald ParkerPhone: (907) 248-0066Fax: (907) 248-4429Web site: www.pesiak.comP.E.S.I. offers both conventional and spe-cialty products and services for Alaska oilindustry.

Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, VP, AlaskaManagerPhone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco has supplied services to theAlaska oilfield since 1976. We havetrained personnel to help with instru-mentation, solids control, pipe handlingand Top Drive drilling equipment. 24hour on call

Schlumberger Oilfield Services3940 Arctic Blvd. Ste. 300Anchorage, AK 99503Contact: Steve HarrisonPhone: (907) 273-1700Fax: (907) 561-8317

Schlumberger Oilfield Services providespeople and technology, working togeth-er to offer exploration and productionservices during the life cycle of the oiland gas reservoir.

The Fairweather Companies715 L. St., Ste. 4Anchorage, AK 99501Contact: R.C. Gardner or Bill PenrosePhone: (907) 258-3446Fax: (907) 258-5557Website: www.fairweather.comThe Fairweather Companies provide proj-ect management, engineering, drilling,permitting, logistics, and operationalservices to the exploration and produc-tion sectors of the petroleum industry.

Unique Machine5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected]: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construction,mining, fishing and government parts toindustry quality standards.

Electrical


Dowland-Bach6130 Tuttle Pl.Anchorage, AK 99507Contact: Lynn JohnsonPhone: (907) 562-5818Fax: (907) 563-4721Web site: www.dowlandbach.comIndustrial control and panel fabrication

Northern Lights1200 W. International Airport WayAnchorage, AK 99519Contact: Jeff CampbellPhone: (907) 562-2222Fax: (206) 563-1921Email: [email protected] site: www.northern-lights.comNorthern Lights Marine and industrialgensets (5-200kW) have a legacy inAlaska. Reliability, efficiency and cus-tomization are built into every genset.

Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Employment Services

Alaska’s People2600 Cordova St., Ste.211Anchorage, AK 99503Contact: Teresa Nelson, directorPhone: (907) 263-7013Fax: (907) 263-7083Email: [email protected] site: www.alaskapeople.comEmployment reference services with anemphasis on qualified Alaska Natives andAmerican Indians.

ArrowHealth4050 Lake Otis Pkwy., Ste. 207Anchorage, AK 99508Contact: Lea Counts, Dir. SubstanceAbuse Testing Div.Phone: (907) 868-8885Fax: (907) 868-8882Email: [email protected] site: www.arrowhealthcorp.com


ArrowHealth is Alaska’s premier serviceprovider of occupational health and sub-stance abuse testing. We service the localcommunity, national contracts, and gov-ernment agencies alike with customizedsolutions..


Energy Services

ASRC Energy Services3900 C St., Ste. 701Anchorage, AK 99503Contact: Jack Laasch, Exec. VP strategicdev. and external affairsPhone: (907) 339-6232Fax: (907) 339-6236Email: [email protected]: www.asrcenergy.comOil and gas services including engineer-ing, construction, operations, mainte-nance, communications, project manage-ment, drilling and completion engineer-ing, well stimulation, well testing, geo-logical and geophysical services.

Michael Baker Jr.4601 Business Park Blvd., Ste. 42Anchorage, AK 99503Contact: John M. Eldred, business unitmgr.Phone: (907) 273-1115Fax: (907) 273-1699Email: [email protected]: www.mbakercorp.comJuneau office: 175 Franklin St., Ste. 420Juneau, AK 99801Contact: McKie Campbell, sr. environmen-tal mgr.Phone: (907) 463-3171Fax: (907) 463-3107Email: [email protected] skills include civil, structural,mechanical, electrical, project manage-ment, GIS, and hydrology. Energy servicesinclude CMMS (computerized mainte-nance management), managed opera-tion and maintenance, training/compe-tency services, and other related energyservices.

Engineering Services

Alpine-Meadow11043 Tsusena CircleEagle River, AK 99577Contact: George Snodgrass, presidentPhone: (907) 694-7423Fax: (907) 694-7423Email: [email protected]: www.alpine-meadow.comWe are a small, low-cost, professional,personal company with 18 years engi-neering and environmental experience inAlaska with major oil companies. Weoffer permitting and compliance, strate-gic planning, incident investigations, crisismanagement services.

ENSR International4600 Business Park Blvd., Ste. 22Anchorage, AK 99503-7143Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 offices world-wide providing environmental planning,assessment, permitting, compliance man-agement and contamination cleanup.

Integrated Systems Group5730 B. St.Anchorage, AK 99518Contact: Jon Griffin, operation mgr.Phone: (907) 569-3473Fax: (907) 569-1301Email: [email protected]: www.intsysgrp.comSpecializing in fire suppression and gasdetection systems. Leaders in providingalarm systems, special hazards and gasdetection systems.

LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architecturalmgr.Contact: Willey Wilhelm, engineeringmgr.Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Phone: (800) 955-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (800) 478-8213Email: [email protected]: (907) 670-4739Email: [email protected] specialized architectural and engi-neering design for all structures;water/sewer, fuel and transportation sys-tems design; contractor support survey-ing and permitting for oil and gas devel-opment; dredging operations, remotesite land and hydrographic surveying.

Lynx Enterprises1029 W. 3rd Ave., Ste.400Anchorage, AK 99501Contact: Mark Schindler, President & CEOContact: Diane Fleisher, Office Mgr. Phone: (907) 277-4611Fax: (907) 277-4717Email: [email protected] professionals offer the followingservices: major project strategic planningand project management; onshore andoffshore projects, exploration and devel-opment phases, permits and right-of-wayacquisition, National EnvironmentalPolicy Act (NEPA) documentation,Environmental Assessment (EA) andEnvironmental Impact Statement (EIS)preparation.


Natco GroupP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, Business Dev. Mgr.Phone: (403) 203-2103Fax: (403) 236-0488Email: [email protected]: www.natco.ab.caNatco Group engineers, designs andmanufactures process, wellhead andwater treatment equipment and systemsused in the production of oil and gasworldwide.

PDC/Harris Group1231 Gambell St.Anchorage, AK 99501Contact: Steve ThenoPhone: (907) 561-1666Fax: (907) 561-7028Email: [email protected]: Mike MooraPhone: same as aboveFax: same as aboveEmail: [email protected]: www.harrisgroup.comPDC-Harris Group provides front-endengineering design, detailed design, andenvironmental permitting services to theoil, gas, and power generation markets.

Petrotechnical Resources of Alaska(PRA)3601 C St., Ste. 1378Anchorage, AK 99503Contact: Tom WalshPhone: (907) 272-1232Fax: (907) 272-1344Email: [email protected] multidisciplinary staff of qualifiedand experienced professionals possess adiverse array of technical capabilities toprovide our clients with a full spectrumof geoscience and engineering consultingservices.

The Fairweather Companies715 L. St., Ste. 4Anchorage, AK 99501Contact: R.C. Gardner or Bill PenrosePhone: (907) 258-3446Fax: (907) 258-5557Website: www.fairweather.comThe Fairweather Companies provide proj-ect management, engineering, drilling,

permitting, logistics, and operationalservices to the exploration and produc-tion sectors of the petroleum industry.

Environmental Engineering & Consulting

Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank WeissPhone: (907) 276-2747Fax: (907) 279-4088Web site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.

Alpine-Meadow11043 Tsusena CircleEagle River, AK 99577Contact: George Snodgrass, presidentPhone: (907) 694-7423Fax: (907) 694-7423Email: [email protected]: www.alpine-meadow.comWe are a small, low-cost, professional,personal company with 18 years engi-neering and environmental experience inAlaska with major oil companies. Weoffer permitting and compliance, strate-gic planning, incident investigations, crisismanagement services.

ENSR International4600 Business Park Blvd., Ste. 22Anchorage, AK 99503-7143Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 offices world-wide providing environmental planning,assessment, permitting, compliance man-agement and contamination cleanup..


Lynx Enterprises1029 W. 3rd Ave., Ste.400Anchorage, AK 99501Contact: Mark Schindler, President & CEOContact: Diane Fleisher, Office Mgr. Phone: (907) 277-4611Fax: (907) 277-4717Email: [email protected] professionals offer the followingservices: major project strategic planningand project management; onshore andoffshore projects, exploration and devel-opment phases, permits and right-of-wayacquisition, National EnvironmentalPolicy Act (NEPA) documentation,Environmental Assessment (EA) andEnvironmental Impact Statement (EIS)preparation.

Montgomery Watson Harza4100 Spenard Rd.Anchorage, AK 99517Contact: Sandra HamannPhone: (907) 248-8883Fax: (907) 248-8884Email: [email protected] Watson Harza is a design-build engineering firm that has been pro-viding environmental engineering, con-struction, and remediation services inAlaska for the last 25 years.

Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Bob Fitzpatrick, operations mgr.Phone: (907) 562-5420Fax: (907) 562-5426Email: [email protected]: wwwpacificenvironmental.com

PDC/Harris Group1231 Gambell St.Anchorage, AK 99501Contact: Steve ThenoPhone: (907) 561-1666Fax: (907) 561-7028Email: [email protected]: Mike MooraPhone: same as aboveFax: same as aboveEmail: [email protected]: www.harrisgroup.comPDC-Harris Group provides front-endengineering design, detailed design, andenvironmental permitting services to theoil, gas, and power generation markets.

PSI Environmental & Instrumentation1611 E. 1st Ave.Anchorage, AK 99501Phone: (907) 272-8010Fax: (907) 272-9005Soldotna office:36275 Kenai Spur Hwy, Ste. 2Soldotna, AK 99669Phone: (907) 260-5725Fax: (907) 260-5730Email: [email protected]: www.psienv.comPSI offers environmental services toAlaskan clients including hazardouswaste management, remediation, plans,and training.

URS2700 Gambell St., Ste. 200Anchorage, AK 99503Contact: Mick McKay, office mgr. Phone: (907) 562-3366Fax: (907) 562-1297Email: [email protected]: www.urscorp.comURS Corporation provides comprehensiveintegrated services to the petroleumindustry, including NEPA permitting sup-port and regulatory compliance, engi-neering design and construction manage-ment, field studies, environmental moni-toring and contaminated site cleanup.

Environmental Response & Clean Up

ENSR International4600 Business Park Blvd., Ste. 22Anchorage, AK 99503-7143Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 offices world-wide providing environmental planning,assessment, permitting, compliance man-agement and contamination cleanup.

New World Technology809 N. Bragaw St.Anchorage, AK 99508Contact: Bud Steinebach, ownerPhone: (907) 272-3616Fax: (907) 278-0056Email: [email protected] site: newworldtechnology.comWe are a company that uses environmen-tally safe and chemical free products tomake our world safe from pollutants.

Northern Testing Laboratories3330 Industrial AvenueFairbanks, AK 99701Contact: Michel R. Pollen, presidentPhone: (907) 456-3116Fax: (907) 456-3125Email: [email protected]’s Deadhorse laboratory offers year-round rapid response environmentalsampling and analysis for petroleumhydrocarbons, water and wastewatermicrobiology, and general chemistry atPrudhoe Bay.


URS2700 Gambell St., Ste. 200Anchorage, AK 99503Contact: Mick McKay, office mgr. Phone: (907) 562-3366Fax: (907) 562-1297


Email: [email protected]: www.urscorp.comURS Corporation provides comprehensiveintegrated services to the petroleumindustry, including NEPA permitting sup-port and regulatory compliance, engi-neering design and construction manage-ment, field studies, environmental moni-toring and contaminated site cleanup.

Unitech of Alaska2130 E. Dimond Blvd.Anchorage, AK 99507Contact: Debbie HawleyPhone: (907) 349-5142Phone: (800) 649-5859Fax: (907) 349-2733Email: [email protected] Office:Unitech SoutheastContact: Bob BacolasPhone: (907) 790-4439Fax: (907) 790-4469Email: [email protected] is Alaska’s only 24-hour oil spillremediation, environmental and industri-al supply company. Specialty areasinclude sorbents, geotextile, containmentberms, drums and ice melt.

Environmental Supplies




Equipment & Heavy Hauling

Carlile Transportation Systems1800 E. First Ave.Anchorage, AK 99501Contact: Linda LearyPhone: (907) 276-7797Fax: (907) 276-6786Email: [email protected] owned and operated, full servicemulti-modal, transportation and logisticscompany

Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] transportation throughoutAlaska. North Slope heavy hauling withCATCO all-terrain vehicles.

Dura-Wrap ContainmentsP.O. Box 2374Palmer, AK 99645Contact: John HutchinsonPhone: (907) 373-3443Toll Free: (866) 873-3443 (lower 48 only)Fax: (907) 373-3453Email: [email protected] site: www.durawrap.comDura-Wrap’s mobile shrinkwrap serviceprovides complete product protection tobarge, marine and overland cargo

haulers, heavy equipment haulers, andother industrial products. Dura-Wrap: anexpedient and environmentally safemethod of providing your clients withclean freight, less costly cleanup and big-ger profits.

LyndenAlaska Marine LinesAlaska West ExpressLynden Air CargoLynden Air FreightLynden InternationalLynden LogisticsLynden Transport6441 S. Air Park Pl.Anchorage, AK 99502Contact: Mark AndersonPhone: (907) 254-1544Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden com-panies includes truckload and less-than-truckload (LTL) highway connections,scheduled barges, intermodal bulk chemi-cal hauls, scheduled and chartered airfreighters, domestic and international airforwarding, and international sea for-warding services.

Northern Transportation310 K St., Ste. 200Anchorage, AK 99501Contact: John Marshall, Lynette StorozPhone: (907) 264-6682Fax: (907) 264-6602Email: [email protected] transportation along Alaska’sNorth Slope via Mackenzie River route.


TOTE-Totem Ocean Trailer Express2511 Tidewater RoadAnchorage, AK 99501Contact: Curt StonerPhone: (907) 265-7215Phone: (800) 234-8683Fax: (907) 278-9689Email: [email protected] site: www.totemocean.comTOTE’s roll on/roll off ships sail threetimes per week between the Port ofTacoma and the Port of Anchorage.Transit time is a fast 66 hours.

Equipment Sales/Rental

Arctic Wire Rope & Supply6407 Arctic Spur Rd.Anchorage, AK 99518Contact: Jill ReevesPhone: (907) 562-0707Fax: (907) 562-2426Email: [email protected] site: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska’slargest and most complete rigging supplysource. We specialize in custom sling fab-rication (wire rope, web, chain, and poly-ester round.)

Cameron600 E. 57th Pl., Ste., AAnchorage, AK 99518Contact: Ken Kubiak, District Mgr.Phone: (907) 562-2332Fax: (907) 562-3880Email: [email protected] site: www.coopercameron.comSupplier of wellheads and trees, valves,actuators, chokes, and controls. Sales,complete service, and repairs providedfor the North Slope, Kenai Gas Field, andCook Inlet areas.

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Rick Hofreiter or John DalyPhone: (907) 659-3197Fax: (907) 659-3190Web site: www.colvilleinc.comDiesel, gasoline, jet fuel, aviation gasolinein bulk and small quantity deliveries, elec-

tronic card-lock fleet management, solidwaste and recycling, steel, industrialgases and solid waste.


Kenworth Alaska2838 Porcupine Dr.Anchorage, AK 99501Contact: Jim Scherieble, Branch Mgr.Phone: (907) 279-0602Phone: (800) 478-0602Fax: (907) 258-6639Fairbanks office:3730 Braddock St.Fairbanks, AK 99701Contact: Ed Lewis, Branch Mgr.Phone: (907) 455-9900Fax: (907) 479-8295Kenworth Alaska is a full service truckdealership in two locations – Anchorageand Fairbanks. New and used truck sales,parts and service.

NEI Fluid Technology3408 Arctic Blvd.Anchorage, AK 99503Contact: Kathryn Russell, presidentPhone: (907) 561-4820Fax: (907) 562-2316Email: [email protected] of petrochemical refueling andtesting equipment, meters and valve sys-tems for the oil and gas industry andportable measurement for petroleum,chemicals and bulk liquids. We also sup-ply refrigerant recovery and recyclingequipment.



ProComm Alaska4831 Old Seward Hwy., #111Anchorage, AK 99503Contact: Gary Peters, presidentContact: Natha Thompson, sales mgr.Contact: Linda Peters, operations mgr.Phone: (907) 563-1176Fax: (907) 261-2663Website: www.ProCommAk.comProComm Alaska is Motorola’s author-ized radio systems specialist with loca-tions in Anchorage, Fairbanks, Wasillaand Soldotna.

PSI Environmental & Instrumentation1611 E. 1st Ave.Anchorage, AK 99501Phone: (907) 272-8010Fax: (907) 272-9005Soldotna office:36275 Kenai Spur Hwy, Ste. 2Soldotna, AK 99669Phone: (907) 260-5725Fax: (907) 260-5730Email: [email protected]: www.psienv.comPSI offers service, sales and rental of airwater and waste instrumentation.

Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, VP, AlaskaManagerPhone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] maintains a fleet of oil fieldinstrumentation, solids control and otherequipment for oilfield and industrialneeds. We represent Varco Oil Tools, MDTotco, Texas Oil Tools, SPM, Derrick

Equipment and various other manufac-turers. 24 hours on call


SOLOCO207 Town Center Pky.Lafayette, LA 70506-7524Contact: Keith PearsonPhone: (337) 981-5058Fax: (337) 984-9241Email: [email protected] COMPOSITE MAT SYSTEM isthe world’s most advanced solution fortemporary surfaces including heavy-dutyroads, turnarounds, work and stagingareas. It’s strength and durability allowsyou to work year-round in the harshestconditions. Installs and cleans up quickly.It’s a permanent solution to your tempo-rary road and work surface needs.

SECORP Industries5520 Lake Otis Pkwy, Ste. 103Anchorage, AK 99507Contact: Karl J. Kisser, Alaska district mgr.Phone: (907) 562-9722Fax: (907) 562-9420Email: [email protected] Industries has been a leader inthe medical and safety industry for over30 years. Our medical and safety equip-ment meets the industry’s highest stan-dards. SECORP is a distributor for suchcompanies as Drager, MSA, Survivair, DetCon and PemTech.

Totem Equipment & Supply2536 Commercial Dr.Anchorage, AK 99501Contact: Mike Huston, V.P.Phone: (907) 276-2858Fax: (907) 258-4623Email: [email protected] Equipment and Supply Inc. locallyowned and operated since 1961. Supplieslight, medium and heavy equipment.Specializing in temporary & permanentheating solutions.


Tucker Sno-CatP.O. Box 1529Medford, OR 97501Contact: Dan Dressler or Gordon DuncanPhone: (541) 779-3731Fax: (541) 779-3735Email: [email protected]: [email protected]: www.sno-cat.comSupplying Alaska for over 40 years withreliable oversnow transportation. Tundraapproved, rubber tracked vehicles andtrailers for 2-15 passengers and cargo.

Wood Group Alaska5311 Minnesota Dr.Anchorage, AK 99518Contact: Sharon ShernPhone: (907) 339-4500Fax: (907) 339-4555Email: [email protected] site: www.woodgroup.netRepair, overhaul, servicing and installa-tion of industrial gas turbines, electricaland instrumentation equipment includ-ing the calibration and repair of measur-ing and test equipment.

Expeditor/Clerk Services

Chiulista Camp Services301 Calista Ct., Ste. A

B8 PETROLEUM NEWS • WEEK OF JUNE 22, 2003PETROLEUM DIRECTORYAnchorage, AK 99518Contact: George B. Gardner, President &GMPhone: (907) 278-2208Fax: (907) 279-8430Email: [email protected] 100% Alaska Native owned andoperated catering company on the NorthSlope, catering and housekeeping toyour tastes, not ours.


Fertilizer

AgriumP.O. Box 575Kenai, AK 99611Contact: Lisa Parker, GovernmentRelationsPhone: (907) 776-8121Fax: (907) 776-5579Email: [email protected]: www.agrium.comValue added manufacturer of fertilizerproducts

Financial Services

Dynamic Capital Management471 W. 36th Ave., Ste. 201Anchorage, AK 99503Contact: David GottsteinPhone: (907) 562-6374Toll free: (800) 280-3962 (DYNA)Fax: (907) 563-9502Alaska money management firm, offer-ing experienced professional judgement,leading edge technology, and customizedportfolios. Individual and corporateclients.

First National Bank Alaska

101 W. 36th Ave.Anchorage, AK 99503Contact: Bill InschoPhone: (907)777-3577E-mail: [email protected]: www.FNBAlaska.comOne of the strongest, most financiallysecure commercial banks in the nation,First National offers a range of deposit,lending, escrow and bankcard services at27 branches across the state. MemberFDIC and equal housing lender.

KPMG701 W. 8th Ave.Anchorage, AK 99501Contact: Lucinda Mahoney, senior man-agerPhone: (907) 265-1257Fax: (907) 265-1296Email: [email protected] site: www.kpmg.comKPMG LLP provides a wide array of advi-sory services to help organizations man-age their financial and operational func-tions.

Fire Protection


Freight/Shipping & Cargo

Air Logistics of Alaska1915 Donald Ave.Fairbanks, AK 99701Phone: (907) 452-1197Fax: (907) 452-4539Contact: Dave ScarbroughPhone: Anchorage: (907) 248-3335Email: [email protected] contract and charter services.

Alaska Airlines Cargo

P.O. Box 68900Seattle, WA 98168Contact: Keola Pang-Ching, Director,Cargo SalesPhone: (206) 433-3122Fax: (206) 433-3225Email: [email protected] winning cargo services to moreplaces, more often, with more lift to,from, and within the state of Alaska.

Alaska RailroadP.O. Box 107500Anchorage, AK 99510Contact: Wende Lance, Marketing andLogistics TechnicianPhone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight services– including complete services to moveyour freight between Alaska, the Lower48 and Canada.

Brooks Range Supply1 Old Spine Rd.Prudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll free: (866) 659-2550Fax: (907) 569-2650Email: [email protected] and delivery of hardware andmore throughout oilfield and NorthSlope villages. Open 24 hours, 365 days ayear. Toll free number 866-659-2550.

CN Aquatrain3015 Madison WayAnchorage, AK 99508Contact: Laurie A. Gray, AgentPhone: (907) 279-3131Toll free: (800) 999-0541Fax: (907) 272-3963CN Aquatrain has provided Alaska withdependable access to Canadian andLower 48 markets for 38 years.

Carlile Transportation Systems1800 E. First Ave.Anchorage, AK 99501Contact: Linda LearyPhone: (907) 276-7797Fax: (907) 276-6786Email: [email protected] owned and operated, full servicemulti-modal, transportation and logisticscompany

Cook Inlet Tug & Barge824 Delaney St.Anchorage, AK 99501Contact: Carl Anderson, PresidentPhone: (907) 277-7611Fax: (907) 272-3410Cook Inlet Tug and Barge Company pro-vides ship and barge assistance mainly inthe Port of Anchorage, also Nikiski andHomer. Oil barge escort in the winter. Weare Cook Inlet specialists.

Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] transportation throughoutAlaska. North Slope heavy hauling withCATCO all-terrain vehicles.

Dura-Wrap ContainmentsP.O. Box 2374Palmer, AK 99645Contact: John HutchinsonPhone: (907) 373-3443Toll Free: (866) 873-3443 (lower 48 only)Fax: (907) 373-3453Email: [email protected] site: www.durawrap.comDura-Wrap’s mobile shrinkwrap serviceprovides complete product protection tobarge, marine and overland cargohaulers, heavy equipment haulers, andother industrial products. Dura-Wrap: anexpedient and environmentally safemethod of providing your clients withclean freight, less costly cleanup and big-ger profits.


Kenai AviationP. O. Box 46Kenai, AK 99611Contact: Bob or Jim BielefeldPhone: (907) 283-4124Phone: (800) 478-4124 (within Alaska)Fax: (907) 283-5267Email: [email protected] taxi services provided since 1961 statewide, mostly Cook Inlet. Single engineand twin Bonanza.


Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Keven Schlosstein, sr. dir. corpo-rate planningPhone: (907) 249-5137Fax: (907) 249-5190E-mail: [email protected]: www.nac.aeroServing the aviation needs of rural Alaskafor almost 50 years, NAC is the stateslargest all cargo carrier moving nearly100 million pounds of cargo on sched-uled flights to 17 of Alaska’s busiest air-ports. NAC’s fleet of DC 6 and B727 air-craft also schedules charters and flagstops to 44 additional communities.

Northern Transportation310 K St., Ste. 200Anchorage, AK 9950142003 McKenzie Hwy.Hay River, NWT X0E0R9Contact: John Marshall Phone: (867) 874-5167Fax: (867) 874-5179Email: [email protected] site: www.ntcl.com Marine transportation along theMcKenzie River to the Beaufort Sea andAlaska’s North Slope.

Oilfield Transport6816 Lowell Cir.Anchorage, AK 99502Contact: Henry MinichPhone: (907) 243-2852Fax: (907) 245-8930Email: [email protected]

Panalpina4305 W. International Airport Rd.Anchorage, AK 99502Contact: John Hodel, branch mgr.Phone: (907) 245-8008Fax: (907) 245-8018Email: [email protected] site: www.panalpina.comOther offices:Houston: (281) 446-0600Calgary: (403) 291-1137International and domestic freight for-warding and logistics services. Integratedsolutions for supply chain management.Specialists in oil and energy projects.

Span Alaska Consolidators8130 S. 216th St.Kent, WA 98032Contact: Tom Landry, executive v. p.Phone: (800) 257-7726Phone: (907) 349-3606 (Anchorage)Fax: (253) 395-7986Email: [email protected]: www.spanalaska.comAlaskan freight consolidator/forwarderserving all of Alaska with timely andfriendly service. Inbound service from theLower 48 to Alaska. “Promises Made,Promises Delivere

Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Karen Conover, vice president


A FarNorthnicheBrooks Range Supply prides itselfon having what its North Slopecustomers need when they need it

By SUSAN BRAUND Petroleum Directory Contributing Writer

choing the business marketing mantra — find aniche, consistently give your customers what theywant and serve them well — Brooks Range Supplyhas deeply carved a niche as a North Slope supplier.

The company, originally Prudhoe Bay Supply, has been acommodities and parts touchstone for slope companiessince 1980, and directly on the slope since 1984.

“Our company tagline, ‘Your Source on the Slope’ saysit all,” explains Craig Welch, one of two general managers.“Brooks Range Supply is a full line parts and industrialsupply company selling any and all products associatedwith work in the oil field. We pride ourselves in having theexperience in Prudhoe Bay to provide the best in customer

service along with quality products at a fair price.” In April of 2000, Colville Inc., which is owned by

majority shareholders Mark and Jeff Helmericks, pur-chased Brooks Range Supply. Their close association withthe oil field has brought valuable experience and additionalproducts to the supply company. Colville Inc., a fuel sup-plier to the oil companies since 1985, also handles all thesolid waste west of the Kuparuk River on the North Slope.(See Colville, Then and Now profile in the August 2001issue of Petroleum News).

Named for its proximity to the Brooks Range, the firm’sfacilities in Deadhorse are centrally located to Prudhoe oil-fields. “On a clear day you can see the Brooks Range about200 miles to the south ... it’s beautiful,” says co-managerMike Kunkel.

Two slope buildings The supply house has two buildings, one heated and

one not, totaling 25,000 square feet. Construction is underway to heat and double deck the second storage spacesoon. “We’re growing, expanding product lines to be ableto serve our customers better. When we buy in more vol-ume we get discounts and prepaid freight, which allows usto remain competitive in our pricing. But it does takessome space!”

Kunkel cites the biggest challenge in operating the farnorth facility as “making sure the product gets to the cus-tomer in a timely fashion, preferably in stock, ready to goout the door. Up here, second-day air, and next-day air usu-ally means five days!”

Brooks Range has built a reputation of willingness witha string of satisfied customers. Bill Thomas, facility main-tenance for Schlumberger Pumping Services says, “Brooks

Range Supply has served us very well for a long time.They’ve filled a niche — it’s difficult for North Slope com-panies to have a local source for supplies. They are willingto work with and accommodate us and have establishedthemselves as an important part of ops up here.”

Active sales team A very active Brooks Range sales

team, Larry Pennino and Stan Weaver,call on all shops in the area, taking

orders for needed items aswell as checking benchstocks of consumableitems. “The salesmen actu-ally fill a spot that would nor-mally cause us to have a personon staff,” comments Thomas.“Brooks Range tries to fit their services intoour requirements and does a really good jobof it.”

Brooks Range Supply is a distributor for:NAPAAuto and Truck Parts, Induserve(True Value Hardware industrial division),Aeroquip Premier hydraulic hose and fit-tings, Milwaukee and DeWalt power toolsand a multitude of other lines.

After parts, commodities are the second-line mainstay. “We’re kind of like a mini-Home Depot. We carry lumber, wheelbar-rows, paint and painting supplies, coldweather gear, safety supplies, plumbing, elec-trical, plate glass, windshields, propane,

welding supplies, hand andpower tools, abrasives,chemicals, oils, lubricantsand fasteners ...” Welchpauses while reciting hislitany of supplies and parts,“then there’s absorbents, bat-teries, gloves, office andpaper supplies, light bulbs,closures, door springs, fix-tures, chains, slings, binders,shackles, ground engagingteeth, duct hose; and don’tforget camlock fittings, pipefittings, all types of filters,bearings, seals, householdgoods — and just about any-thing else a person mightneed while working in aremote location!”

Need-it-right-now calls Although commodities are the biggest part of the busi-

ness, the need-it-right-now calls are usually for parts,according to Kunkel. “With the climate up here, thingsbreak down more often, and when equipment goes downit’s needed back in action now!”

Keeping on top of demand, Brooks Range takes inven-tory frequently and places orders to more than 200 ven-dors every Sunday and a NAPA order five days a week.To further accommodate customers, the supply houseoffers a special order expediting service to find and supplyany requested item. “The expediting service makes it easy

on us,” says Thomas. “We don’t always want to spend thetime setting up the paperwork with new vendors. BrooksRange acts as expediters and does the purchase for us.They have become fairly integrated into how our opera-

tions work.” Kunkel says the most fun and rewardingpart of the business for him is working

with the people. “Our customers andemployees here care about their jobs;they want to get the job done right.They are professionals and act like pro-fessionals. I’m thankful for the reallygood customers and how good it is to be

able to work with them and take care oftheir needs.”

Two-week-on, two-week-off rotation Hours of operation mirror the 24/7 pattern of the oil

field. “As Brooks Range Supply is open at all times, ouremployees work a two-week-on, two-week-off rotation,with each person having a direct alternate,” says Welch.“We adhere to all the same policies as the oil companies,with safety and environmental compliance being majorfactors in our business.”

Both general managers have considerable experience inautomotive parts, supplies and management and are sup-ported by a reliable and experienced staff. Kunkel hasbeen with the company for five years and co-managerWelch for eight. “Our employees have many years ofexperience providing you with oilfield related productsand services,” comments Kunkel. “Prudhoe Bay is famousfor some of the world’s coldest and longest winters. We

have been in business here for many years and know whatworks and what doesn’t.”

BROOKS RANGE SUPPLY#1 Old Spine Road, Prudhoe Bay, AK 99734; (907)659-2550 •

Fax: (907)659-2650 • In-state Toll Free (866) 659-2550 •Email:[email protected]

Editor's note: Susan Braund owns Firestone MediaServices in Anchorage, Alaska.

Brooks Range Supply, Deadhorse, Alaska, is an on-site oil field supplier of parts, tools and supplies. The company is a dis-tributor for NAPA Auto and Truck Parts, Induserve (True Value Hardware industrial division), Aeroquip Premier hydraulic hoseand fittings, Milwaukee and DeWalt power tools and a multitude of other lines.

Mike Kunkel, general manager, Brooks Range Supply

Craig Welch, general manager, Brooks Range SupplyC

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Creating an image for Alaska’soil and gas industry

Judy Patrick’s photographs provide a rich record of pioneering achievements and responsible development

By ALAN BAILEYPetroleum Directory Contributing Writer

here's nothing like a good picture for showing whatreally goes on in Alaska's oil and gas industry —that's a central theme that motivates Judy Patrick, anacclaimed photographer of the Alaska industrial

scene. Patrick especially revels in the pioneering aspectsof oil and gas development and has traveled across thestate in her quest to capture on film everything fromexploration drilling to the huge development projects onthe North Slope.

"I suppose if I would have been born in a different era,I would have been in a covered wagon headed west,"Patrick told Petroleum News.

She sees herself in the tradition of American documen-tary photography — her mission is to document industryin the same way that pioneering photographers of the pastcaptured various aspects of American life.

However, she also sees an important role for photogra-phy in communicating messages about responsible oiland gas development in Alaska — she hopes her photoswill show people just how much care companies take ofAlaska's sensitive environment.

"The other thing that is really, really important to me isdocumenting what all the companies on the North Slopeare doing ... and what a good job they're doing, because,of course, that message isn't being delivered to the Lower48," Patrick said.

Started at the age of 12 Patrick's photographic career fulfills a dream that

began at an early age, when she became the staff photog-rapher for the yearbook at her junior high school.

"In photography, I actually got started when I was 12years old," she said. "I decided I wanted to be a photogra-pher and I never wavered. Ibelieve that my talent is a giftfrom God, otherwise I have noidea how I ever would havebecome interested in photogra-phy since I had virtually noexposure to it as a child."

Her growing interest in pho-tography led her to take classesat a local junior college. Fromthere she went on to study pho-tography at the Academy of ArtCollege in San Francisco and theUniversity of Arizona Tucson.

She originally came to Alaskato work on a fishing boat for thesummer season.

"I came to Alaska in '81, justto spend the summer," she said.

However, she met her futurehusband while working on theboat. She opted for married lifein Wasilla, where she has livedever since. She became the staffphotographer for the Frontiersmannewspaper in Wasilla in 1982.

In 1984 she left the Frontiersman to establish her ownphotographic business, doing fine art black-and-whitephotography, as well as wedding photography and familyportraits.

Industrial photography starts in TucsonIn the winter of 1986/87, during the oil slump in

Alaska, she was hired to photograph the TucsonAqueduct Project where her husband was working. Herwork on this huge construction project launched her intoindustrial photography.

"That was where I wanted to go anyway — industrialphotography," Patrick said.

After returning to Alaska, she started working forindustrial customers. She first worked on the North Slopein 1989, shooting photographs for construction and sup-port companies.

"I had a very solid ... business, but it wasn't totally full

time," Patrick said. With young children to bring up, part-time work suited her at that time.

Petroleum News fuels careerPatrick's next breakthrough came in 1995, when she

started working for Petroleum News. Her work for thenewspaper brought her many contacts in the oil industry.

"I started taking pictures for Petroleum News and alsoMining News, and they hired me as a contract photogra-

pher right from the beginning,"Patrick said. "So it was mostlythrough that that I managed togain contacts in the industry."

Patrick's foray into the oilindustry closely matched her aspi-rations as a photographer.

"My goal was always to do oil— that was my passion," she said."I've always been very keen onresource development ... but Inever seemed to be able to get tothe right people."

Since 1996, Patrick hasfocused almost exclusively on theoil industry. Her business hasexpanded from a small, part-timeoperation to a busy industrial pho-tography service.

Diversification into graphicdesign

Recently, Patrick has supple-mented her photography services

with a graphic design businesscalled “Salt + Light Creative.”

"I started it two years ago because I was already doinga lot of graphic design work through Judy PatrickPhotography and was hiring designers on contract," shesaid.

Patrick saw a business opportunity to prepare competi-tively priced brochures, logos and advertisements. So shebought an existing graphic design business and hired afull-time graphic designer.

"He's very busy," Patrick said. "In fact, I think we'regoing to have to put on another designer."

Big projects are a favoriteIn her photography, Patrick particularly likes docu-

menting large projects. She gains tremendous satisfactionfrom following a project from start to finish — it's all partof her fascination with pioneering endeavors.

"I love big projects ... because I love being on a mis-sion, and I think that's why I like what I do so much,"

Patrick said. "My clients are always faced with suchextreme challenges."

For example, Patrick has photographed such behe-moths as the Miscible Injection Expansion — MIX —project for ARCO, the Northstar project for BP and theOsprey platform project for Forest Oil. Each of theseprojects involved unique challenges and large-scale engi-neering.

Patrick remembers witnessing the construction ofNorthstar — from the initial digging out of the ice for theplacement of the gravel to the completion of the gravelisland and the sealift of the huge production modules.

"It was such a massive undertaking," Patrick said. "Itwas all very impressive."

She also recalls the construction and installation of theOsprey platform. Forcenergy (now Forest Oil) assembledthe platform at Port Graham and then placed it in CookInlet — all against a background of business problems atthe company.

"The ingenuity of the people that were part of thatproject ... they just stuck it out, and now look at thereward," Patrick said.

Working directly for the clientWhatever project she is documenting, Patrick finds it

advantageous to work directly for her clients rather thanworking for an agency representing the client.

“Client-direct" contracting enables a small companywith a limited budget to commission photographs withoutthe expense of working through a large advertisingagency, she said. That approach has worked well recentlywith new independent oil companies arriving in Alaska.

"A lot of people are complaining this year becausethere's no work, and I can hardly keep up," Patrick said.

And Patrick thoroughly enjoys working with herclients.

"I really love my clients," she said. However, Patrick's success has not led to complacency

— photography is a very competitive business. "I have to work extra hard to keep my clients happy

and do a good job," Patrick said. "So I just try not to getcomplacent and remember that I am in an extremely com-petitive field ... it's just being single-mindedly focused onsomething and working really hard "

Perhaps Patrick's sense of mission and her enthusiasmabout her subject matter also keep her at the forefront ofher profession. She just loves making images of the oiland gas industry.

"All my photos are honest ... I've been called anambassador for that reason," Patrick said. "For me it'smore than taking pictures, it's about delivering the mes-sage."

Editor's note: Alan Bailey owns Badger Productions inAnchorage, Alaska.

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Rolligon at sunset in the NPR-A

Roughnecks on Nabors rig 14E

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First National fuels Alaska’s economyFrom its humble beginnings in 1922, the bank has grown to become the state’s largest locally owned institution

BY FIRST NATIONAL BANK ALASKA MARKETING STAFFf you lived in Alaska in the 1980s, you probablyremember a much different banking landscape thanthe one you see today. Back then the state was dot-ted with local banks — from Security National Bank

to Peninsula Savings & Loan, from Alaska Mutual Bankto United Bank Alaska.

Those banks are gone now, victims of Alaska’s noto-rious boom-and-bust economy. But through all the upsand downs, one local bank has not only survived, butthrived: First NationalBank Alaska.

“People who havegrown up with FirstNational know that thebank is successfulbecause of the strongfoundation laid by thosewho had a genuine inter-est in helping Alaskanssucceed,” Betsy Lawer,vice chair and chief operating officer said. “And thoseof us who have been with the bank know our reason forsuccess today is the same reason for our success manyyears ago: Our customers and our customer service.”

First National is Alaska’s largest and oldest locallyowned bank. In business since 1922, it’s grown from atiny, two-employee bank to a linchpin of Alaska’s econ-omy, with 800 employees and 27 branches in 16 com-munities across the state. Today, it’s a full-service bankthat offers a wide variety of financial services — fromlines of credit to high-tech cash management solutions— to businesses across the oil industry.

According to Vice President Bill Inscho, two wordsset the bank apart from others in the field: customerservice.

"We appeal to customers who place a high value oncustomer service — on rock-solid, bulletproof support,”he said.

One tiny Alaska bank First National Bank

was founded byWinfield Ervin, anentrepreneur working atone of Anchorage’s twotiny territorial bankswhen the town incorpo-rated in 1920. The ShipCreek area was quicklyfilling with railroadworkers, merchants andfortune seekers lookingfor a fresh start and newopportunities.

Sensing the potentialof the growing popula-tion, Ervin rounded up a group of investors for a bankof his own and applied for a national charter. In 1922,First National Bank of Anchorage opened its doors withErvin as cashier, one employee and $55,000 in workingcapital.

The timing was good, because large-scale commercewas just gaining a toehold in Alaska. The next year,President Warren G. Harding would tour the state, driv-ing the famous golden spike to complete the AlaskaRailroad.

Attending a Harding speech in Valdez was a youngfamily whose fate would become inextricably linkedwith First National: Warren Cuddy, a U.S. district attor-ney; his wife, Lucy Hon Cuddy; and their two boys,David, 4, and Dan, 2.

The Cuddy eraWhen President Franklin D. Roosevelt’s administra-

tion came to power, Warren Cuddy moved to Anchorageand entered private practice. This brought him into con-tact with banking, an industry that intrigued him. Hebegan buying shares of bank stock, and in 1941 pur-chased controlling interest in First National and installedhimself as president.

Warren Cuddy died in 1951. In a tribute to therespect with which he was held in the business commu-nity, his obituary in the Anchorage Daily Times recount-ed the story of the sale of the old Anchorage

Commercial Co. to the Northern Commercial Co.: "This transfer involved the largest department store

in the city," the paper said. "Many thousands of dollarswere at stake. The sale price had to be established, andall the legal documents drawn to the satisfaction of bothparties. This transaction was initiated and completedwith Mr. Cuddy representing both the buyers and thesellers, each vesting him with full authority to protect itsinterest."

Warren’s son Dan replaced him as president, a posi-tion he still holds today.

First National and the oil industry First National has been involved with Alaska’s oil

industry from the very beginning. Indeed, the bankhelped to supervise the transactions resulting from the1969 oil lease sale that kicked off the oil boom onAlaska’s North Slope.

Betti Cuddy and her daughter Betsy accompanied theroyalty checks from that lease sale on a jet chartered totake them to New York for deposit. (It was on that tripthat Betsy, then a student atDuke University, becameinterested in banking. Uponreturning to Duke shechanged her major to busi-ness, and today is FirstNational’s vice chair andchief operating officer.)

Under Cuddy’s guid-ance, the bank has steered asteady course since then.During the 1980s, whichsaw the closure of morethan a dozen Alaska banks,First National continued togrow and thrive.

Today, it is stronger thanever: It just passed the $2billion asset threshold, andconsistently is rated among the most secure banks in thenation by bank ratings firms.

Working capital for support firmsOne of First National’s primary contributions to the

oil industry is serving as a reliable source of workingcapital to oilfield service companies.

“Typically, an oilfield services company will only billtheir clients once every 30 days,” Inscho said. “But thenature of the industry is such that unexpected expensesfrequently pop up without consideration of a company’sbilling and receiving cycle, so companies turn to us tomake sure they have the capability to handle those kindsof things. They know we have the capital and assets on

hand to make sure they’re taken care of.” First National prides itself on being a part of the past,

present and future of the oil industry. “We have Alaskans working to make Alaska a better

place to live,” Betsy Lawer said. “If we don’t do ourpart, we are doing the state of Alaska an injustice.”

And First National will be there all along the way. “First National has built a reputation with the oil

industry by learning the trade and always providinggood customer service,” she said. “And that will neverchange.”

Service not just a slogan “‘Superior service’ isn’t just some slogan we use to

sell our products,” said Vice President Jay Page. “It’swhat we do every day here at First National. It’s whatbrings customers to us, and what keeps them here whenother options are available.

“Right now, I’m working with a startup company.The owner came over to First National because he didn'twant to be shuffled from one person to another. He

wanted to work with the same person every time he hada question," Page said. "And he wanted that person tounderstand what it's like doing business in Alaska."

“First, as the owner of a startup, he really needed liq-uidity so we set him up with ‘Business Manager,’ anaccounts receivable product custom-tailored to hisneeds. His isn't a cookie-cutter business. Second, we gothim quick answers, and we called him instead of wait-ing for him to call us.”

“That’s the great thing about First National,” Inschosaid. “I’ve had customers call after 5 p.m. and set upweekend meetings on short notice. That always seems tosurprise them —‘Those aren’t bankers’ hours,’ they’llsay. But that’s how we do business here.” ●

I

Locally owned and operated First National Bank Alaska’s headquarters at 101 West 36th Avenue in Anchorage is home tothe lending functions of the bank including home, business and personal loans, as well as Trust Services.

Dan Cuddy, President of FirstNational

Udelhoven Oilfield Systems Services, one of Alaska’s premier oilfield service companies, usesFirst National Bank financing to help it provide responsive services that include constructionmanagement, quality assurance and functional checkout at BP’s Northstar oil platform.Through First National, Udelhoven and other oilfield service companies finance projects,equipment and services.

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“‘Superior service’ isn’tjust some slogan we useto sell our products. It’swhat we do every day

here at First National.” —Jay Page, First National Bank

vice president


Compositech provides high-tech matsideal for use in Alaska

DURA-BASE® composite mats provide the needed infrastructure while protecting the environment and saving money

By ALAN BAILEYPetroleum Directory Contributing Writer

new type of matting for temporary roads and worksites is proving that you can both protect the envi-ronment and save costs. DURA-BASE® mats, intro-duced in Alaska just a couple of years ago, are

enabling people to rethink how to operate on the tundraand in sensitive wetlands. The mats are finding an ever-increasing number of uses in the state.

The story of DURA-BASE® mats goes back to the1990s, when Soloco LLC, based in Lafayette, La.,researched alternatives to the traditional hardwood matsthat the company had been marketing for a number ofyears. The company had recognized that hardwood wasbecoming more scarce and expensive.

After four and a half years of research the companycame up with a high-density polyethylene product thatcould actually surpass the qualities of the wooden mats,Keith Pearson, vice president of marketing and sales forSoloco, told Petroleum News.

DURA-BASE® mats started rolling off the productionline in 1998.

Advantages over wood Dennis Swarthout, chief executive officer of

Compositech LLC, Alaska distributor for Soloco's mats,feels particularly enthusiastic about the advantages of theproduct. The plastic mats flex and bend under load, so thatthey fit snugly against the underlying ground, he said. Afterrelease from the load, the mats will recover their originalshape, maintaining their strength.

“A wooden mat doesn’t have the same flexibility thatcomposites do. When it bends past a certain point, it’sgoing to break. And the composite mats weigh only half ofwhat wood weighs — so transporting them is much cheap-er,” Swarthout said.

Add to that the fact that plastic doesn't rot like woodand you find a versatile and durable system that opens up awealth of new opportunities for operating on delicate or

environmentally sensitive land. The mats are proving an environmental winner, both

because of their construction and because of the applica-tions that people find for them. Construction from polyeth-ylene eliminates the need to fell precious hardwood lum-ber, while use of the mats for temporary roads and padseliminates the need to spread gravel on the tundra or otherdelicate ground. Extensive tests have also proven that themats can withstand the thermal effects of permafrost incold environments.

“You can lay it out all across the tundra and build your-self a road and pick up your road weeks or months laterand (the tundra's) just fine,” Swarthout said. ‘And the matswill withstand at least 20 years of heavy-duty use and re-use,’ he said.

Alaska projectsThe first major application for DURA-BASE® mats in

Alaska has been the construction of temporary access roads

for projects along the trans-Alaska pipeline right of way —Alyeska Pipeline Service Co. conducted a successful pilotproject last year, Swarthout said.

“Sometimes these roads would be only four or five hun-dred feet long, but they would have to lay out gravel on thetundra and put foam board under that. Then they'd have toremove the gravel after they're done with the project,”Swarthout said.

By eliminating the cost of laying and removing thegravel, the mats pay for themselves within a single project,Swarthout said, and people can re-use the mats over andover again in other projects.

The initial use of the mats on thepipeline right of way has proved sosuccessful that the projects havebeen nominated for an environmen-tal new technology award,Swarthout said.

Other oil industry applicationsare under way. For example,ConocoPhillips is about to installmats on a pad that becomes soft dur-ing the summer, according toSwarthout.

“We're putting down about 350mats there so they can get in and outof the pad in an easy fashion ... withtheir service trucks,” Swarthout said.

Anadarko Petroleum has pur-chased mats for use in its NorthSlope exploration program, mostrecently as support for its Hot Iceproject.

On Russia's Sakhalin Island themats have already proved their worth — there are morethan 1,000 mats in use over there, Swarthout said. Lastyear Crowley Marine bought about 800 mats for an accessroad to a project on Sakhalin Island.

“They couldn't have done it without the mats — there'sno gravel within 150 miles to build roads and it's constanttidal flooding coming in,” Swarthout said.

Back in Alaska, the Division of Natural Resources hasspecified DURA-BASE® mats for work on the Healyelectrical intertie. The mats will prevent damage to wet-lands when vehicles turn around at work sites, Swarthoutsaid.

Rural Alaska Swarthout sees a wealth of applications for DURA-

BASE® mats in rural Alaska, especially in the wetlands ofthe Yukon-Kuskokwim Delta, where the mats could pro-vide a highly effective surface for aircraft landing pads andother infrastructure.

“The DURA-BASE® matting system is a tool thatholds much promise for rural infrastructure and transporta-tion. It’s easy to move and assemble, it won’t deteriorateover time and supports incredible loads over super softsoils.” Swarthout said.

New smaller matsSoloco has recently launched a new, lighter-duty, four-

foot square composite mat. Whereas the standard matsmeasure 14 feet by eight feet and require a forklift truck forcarrying and positioning, people can hand carry and installthe smaller mats. So the small mats become especiallyvaluable in situations where a forklift truck isn't availableor can't access the work site.

“In remote areas, for foundations, camp floors and shopfloors the product works marvelously,” Swarthout said. “Ifyou have a temporary construction camp ... you go in andput a floor in, or build a walkway, sometimes in just a cou-ple of hours.”

Although the small mats can't bear quite such heavyloads as the larger mats, they can still handle most of therequirements for many applications.

“They can support anything from foot traffic to heavytraffic like conventional trucks, semis and heavier equip-ment,” Swarthout said.

Rethinking projectsThe many advantages of the DURA-BASE® mats

cause engineers to rethink how to do projects, Swarthoutsaid. For example, a traditional gravel road requires exca-vators, transportation of fill materials and permitting toobtain the gravel.

“There are substantial indirect costs that add up andincrease overall project cost,” Swarthout said. “(With theDURA-BASE® system) all you need to do is ship in ourmats, ship in a forklift and a couple of people and we'redeploying immediately. Operators lay mats while workingon a matted surface — that way they can get out to reallysoft locations that a truck or forklift couldn’t reach withoutgetting stuck.”

“Add the environmental benefits and it's not surprisingthat mat usage is burgeoning in Alaska. Business hasincreased tenfold in the last year and calls about mats comein every day,” Swarthout said.

“The DURA-BASE® system is a tool. It's an invest-ment with long-lived benefits for a company.” Swarthoutsaid. “If, say, you had a mile of this product, you can builda road, work pad or airstrip, pick it up and use it over andover again. So the amortized savings are huge compared tojust building a conventional road or work site.” ●

Editor's note: Alan Bailey owns Badger Productions inAnchorage, Alaska.

Fastening mats on a temporary road on Sakhalin Island

Installing a temporary road for a project on the trans-Alaska pipeline

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PETROLEUM NEWS • WEEK OF JUNE 22, 2003 B13

PETROLEUM DIRECTORYPhone: 907-452-1181Fax: 907-451-6188Web site: www.sourdoughexpress.comSourdough Express Inc. provides truckingservices, full service moving and storageservices, and conex container sales andrentals.

TOTE-Totem Ocean Trailer Express2511 Tidewater RoadAnchorage, AK 99501Contact: Curt StonerPhone: (907) 265-7215Phone: (800) 234-8683Fax: (907) 278-9689Email: [email protected] site: www.totemocean.comTOTE’s roll on/roll off ships sail threetimes per week between the Port ofTacoma and the Port of Anchorage.Transit time is a fast 66 hours.

Fueling Services

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Rick Hofreiter or John DalyPhone: (907) 659-3197Fax: (907) 659-3190Website: www.colvilleinc.comTesoro Fuel Station, diesel, gasoline, jetfuel, aviation fuel in bulk and small quan-tities delivery services.

Gas Turbines


General Oilfield Supplies

Alaska Rubber & Supply5811 Old Seward Hwy.Anchorage, AK 99518Contact: Janeece Higgins, general mgr.Phone: (907) 562-2200Fax: (907) 561-7600Email: [email protected]: www.alaskarubber.comWholesale and retail of industrial andhydraulic hose and fittings. All applica-tions and styles available. Conveyor belt-ing, sheet rubber, v-belts, pumps,Kamloks and much more.

Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701Contact: Jim HaselbergerPhone: (907) 456-6328Phone: (800) 478-8368Fax: (907) 452-5260Email: [email protected] are a commercial and industrial fabricbusiness. We make covers.

MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Bob SlettePhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected]: www.mrosalesinc.comMRO Sales offers products and servicesthat are special to the Alaskan market.MRO can help solve the time problem onhard to find items.


Geophysical & Geological Services

ENSR International

4600 Business Park Blvd., Ste. 22Anchorage, AK 99503-7143Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 offices world-wide providing environmental planning,assessment, permitting, compliance man-agement and contamination cleanup.


Petrotechnical Resources of Alaska(PRA)3601 C St., Ste. 1378Anchorage, AK 99503Contact: Tom WalshPhone: (907) 272-1232Fax: (907) 272-1344Email: [email protected] multidisciplinary staff of qualifiedand experienced professionals possess adiverse array of technical capabilities toprovide our clients with a full spectrumof geoscience and engineering consultingservices.

PGS Onshore341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Larry Watt, Alaska Area Mgr. Phone: (907) 569-4049Fax: (907) 569-4047Email: [email protected] Office738 Hwy 6 South, Ste 900Houston, TX 77079Contact: Gehrig SchultzPhone: (281) 589-6732Fax: (281) 589-6685Email: [email protected] acquisition and processingfor the petroleum industry. PGS Onshoreprovides fully rubber tracked Arctic geo-physical crews to acquire the highest den-sity data with the softest environmentalfootprint on the North Slope.

the irf group6721 Round Tree DriveAnchorage, AK 99507Contact: Dave Goodman, president &managing partnerPhone: (907) 346-4090Fax: (907) 346-4090Email: [email protected]: www.irfgroup.comHouston Office: (979) 732-2206Contact: Don BensonThe irf group provides comprehensivestratigraphic management and technicalservices in support of Alaska and world-wide exploration activities. Our profes-sional staff of 15 paleontologists (inAnchorage, Houston, Dallas and Toronto)offers the full spectrum of explorationand development biostratigraphy, andregional subsurface correlation expertise.

Health Care Professionals

ArrowHealth4050 Lake Otis Pkwy., Ste. 207Anchorage, AK 99508Contact: Lea Counts, Dir. SubstanceAbuse Testing Div.Phone: (907) 868-8885Fax: (907) 868-8882Email: [email protected]: www.arrowhealthcorp.comArrowHealth is Alaska’s premier serviceprovider of occupational health and sub-stance abuse testing. We service the localcommunity, national contracts, and gov-ernment agencies alike with customizedsolutions.

Helicopter Contract & Charter Services

Air Logistics of Alaska1915 Donald Ave.Fairbanks, AK 99701

Phone: (907) 452-1197Fax: (907) 452-4539Contact: Dave ScarbroughPhone: Anchorage: (907) 248-3335Email: [email protected] contract and charter services.



LyndenAlaska Marine LinesAlaska West ExpressLynden Air CargoLynden Air FreightLynden InternationalLynden LogisticsLynden Transport6441 S. Air Park Pl.Anchorage, AK 99502Contact: Mark AndersonPhone: (907) 254-1544Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden com-panies includes truckload and less-than-truckload (LTL) highway connections,scheduled barges, intermodal bulk chemi-cal hauls, scheduled and chartered airfreighters, domestic and international airforwarding, and international sea for-warding services.

Maritime Helicopters3520 FAA Rd.Homer, AK 99603Contact: Audrey ReardenPhone: 907-235-7771Fax: 907-235-7741Email: [email protected] business since 1973, MaritimeHelicopters offers statewide (includingAleutian Islands) helicopter support frombases in Homer and Kodiak. We alsooffer an 86-foot research vessel with heli-pad.

Hoses, Hydraulic & Industrial


Industrial Parts & Supply


Brooks Range Supply1 Old Spine Rd.Prudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll free: (866) 659-2550Fax: (907) 569-2650Email: [email protected] source on the Slope for safety sup-plies, welding supplies, automotive andtruck parts, hardware, tools, buildingmaterials, glass, propane, hydraulic hosesand fittings, paint and chemicals.

Unique Machine5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected]: www.uniquemachineinc.comConnections; API 5CT, API 7B, GrantPrideco H-Series, Hydril, Hunting, AtlasBradford, NS Technology Co, Inc.,Vallourec and Vam PTS proprietary con-nections.


Inspection Services

Arctic Pacific Enterprises2702 Gambell St., Ste., 101P.O. Box 241912 Anchorage, AK 99524Contact: Peny FrisbyPhone: (907) 277-6442Fax: (907) 277-6443Email: [email protected] site: www.arcticpacific.comArctic Pacific/Exline’s newest service, diag-nostics and asset management, performsengine inspections in an operational ornon-operational mode to measuremachine performance without disman-tling your equipment.

Engineered Fire Systems3838 Commercial Dr.Anchorage, AK 99501Contact: Don Maupin, Oil & Gas Mgr.Phone: (907) 274-7973 ext. 114Fax: (907) 274-6265Email [email protected] site: www.efs-fire.comAn industry leader in the design, integra-tion and testing of safety solutions forhigh value risks. UL system certificationsand panel fabrication.


Machinery Technical Support200 W. 34th Ave., #979Anchorage, AK 99503Contact: Sid BookshPhone: (907) 250-4499Fax: (907) 243-4066Email: [email protected] Technical Support performsroot cause analysis of rotating equipmentand the surrounding process. With per-formance analysis, vibration analysis, andprocess plant experience MTS can helpyou determine equipment condition andprioritize maintenance and repairoptions.

Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:

B14 PETROLEUM NEWS • WEEK OF JUNE 22, 2003PETROLEUM DIRECTORYP.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Instrumentation Systems




Epoch Well Services5801 Silverado WayAnchorage, AK 99518Contact: James R. Carson, AK DivisionMgr.Phone: (907) 561-2465Fax: (907) 561-2474Email: [email protected] is a complete digital drillinginstrumentation system that monitors alldrill floor and mud system parameters.Critical data is displayed and archievedon workstations located at key points onthe rig.

PSI Environmental & Instrumentation1611 E. 1st Ave.Anchorage, AK 99501Phone: (907) 272-8010Fax: (907) 272-9005Soldotna office:36275 Kenai Spur Hwy, Ste. 2Soldotna, AK 99669Phone: (907) 260-5725Fax: (907) 260-5730Email: [email protected]: www.psienv.comPSI is a local supplier of gas detectioninstrumentation. We carry both fixed andportable instruments available for pur-chase or rent and calibration gases atvery competitive rates.

Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, VP, AlaskaManagerPhone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] maintains a fleet of oil fieldinstrumentation, solids control and otherequipment for oilfield and industrialneeds. We represent Varco Oil Tools, MDTotco, Texas Oil Tools, SPM, DerrickEquipment and various other manufac-turers. 24 hours on call

Laboratory Services

Flowline Alaska

1881 LivengoodFairbanks, AK 99701Contact: Chris JohanssenPhone: (907) 456-4911Fax: (907) 456-1194Flowline has three pipe insulation, fabri-cation, and coating facilities encompass-ing over 45,000 square feet of enclosedproduction area, on a 22 acre site inFairbanks that offers substantial area formaterial handling and staging, and a dedi-cated rail spur.

Northern Testing Laboratories3330 Industrial AvenueFairbanks, AK 99701Contact: Michel R. Pollen, presidentPhone: (907) 456-3116Fax: (907) 456-3125Email: [email protected] provides full service environmental,microbiological, inorganic chemistry,organic chemistry, and asbestos analysesthrough its network of Alaskan-owned,certified laboratories in Fairbanks,Anchorage and Deadhorse.

Legal Services

Perkins Coie1029 W. 3rd Ave., Ste. 300Anchorage, AK 99501Contact: Eric Fjelstad, attorneyEmail: [email protected]: Teresa Berwick, attorneyEmail: [email protected]: (907) 279-8561Fax: (907) 276-3108Other Offices: Beijing, Bellevue, Boise, Chicago, Denver,Hong Kong, Los Angeles, Menlo Park, Olympia,Portland, San Francisco, Seattle, Washington D.C.Website: www.perkinscoie.comPerkins Coie law firm handles oil spillplanning, air emissions, NPDES permits,hazardous waste, CERCLA, wetlands per-mits, NEPA, and other environmental andnatural resources issues.

Lodging


Hilton Anchorage500 West Third Ave.Anchorage, AK 99501Contact: Karen BoshellPhone: (907) 272-7411Phone: 1-800-321-3232Fax: (907) 265-7175Website: www.anchorage.hilton.comOur $15 million renovation project iscomplete. In addition to our popularmeeting floor, we now have a 6,000 sq.ft. conference center with eight state-of-the art meeting rooms, Internet connec-tivity, video-conferencing and completecatering and service support.

Millennium Hotel4800 Spenard Rd.Anchorage, AK 99517Contact: Raegan KelliherPhone: (907) 243-2300Phone: (800) 544-0553Fax: (907) 243-8815Email: [email protected] site:www.millenniumhotels.com/anchorageThe Millennium Alaskan HotelAnchorage is located just one mile fromAnchorage International Airport and tenminutes from downtown. TheMillennium is surrounded by the splen-dor of the great Alaskan outdoors. TheMillennium is ideally situated for businessand leisure travelers alike.

Logistics

Alaska RailroadP.O. Box 107500Anchorage, AK 99510Contact: Wende Lance, Marketing andLogistics TechnicianPhone: (907) 265-2485

Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight services– including complete services to moveyour freight between Alaska, the Lower48 and Canada..


Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] materials supply services toremote locations. Marine transportthroughout Alaska. Oil field servicesincluding heavy hauling with all-terrainvehicles on North Slope.



MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Bob SlettePhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected]: www.mrosalesinc.comWe provide Professional ProcurementService for hard-to-find supplies, partsand equipment. Regardless of your loca-tion, you will receive service that is guar-anteed to meet your requirements. FromAnchorage to Siberia, from shipping tocommunications, you receive service fromthe experts that have ‘Been There, DoneThat’

Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Keven Schlosstein, sr. dir. corpo-rate planningPhone: (907) 249-5137Fax: (907) 249-5190E-mail: [email protected]: www.nac.aeroServing the aviation needs of rural Alaskafor almost 50 years, NAC is the stateslargest all cargo carrier moving nearly100 million pounds of cargo on sched-uled flights to 17 of Alaska’s busiest air-

ports. NAC’s fleet of DC 6 and B727 air-craft also schedules charters and flagstops to 44 additional communities.


Panalpina4305 W. International Airport Rd.Anchorage, AK 99502Contact: John Hodel, branch mgr.Phone: (907) 245-8008Fax: (907) 245-8018Email: [email protected] site: www.panalpina.comOther offices:Houston: (281) 446-0600Calgary: (403) 291-1137International and domestic freight for-warding and logistics services. Integratedsolutions for supply chain management.Specialists in oil and energy projects.

Span Alaska Consolidators8130 S. 216th St.Kent, WA 98032Contact: Tom Landry, executive v. p.Phone: (800) 257-7726Phone: (907) 349-3606 (Anchorage)Fax: (253) 395-7986Email: [email protected]: www.spanalaska.comAlaskan freight consolidator/forwarderserving all of Alaska with timely andfriendly service. Inbound service from theLower 48 to Alaska. “Promises Made,Promises Delivered.”

The Fairweather Companies715 L. St., Ste. 4Anchorage, AK 99501Contact: R.C. Gardner or Bill PenrosePhone: (907) 258-3446Fax: (907) 258-5557Website: www.fairweather.comThe Fairweather Companies provide proj-ect management, engineering, drilling,permitting, logistics, and operationalservices to the exploration and produc-tion sectors of the petroleum industry.


Maintenance

Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701Contact: Jim HaselbergerPhone: (907) 456-6328Phone: (800) 478-8368Fax: (907) 452-5260Email: [email protected] are a commercial and industrial fabricbusiness. We make covers.


Arctic Pacific Enterprises2702 Gambell St., Ste., 101P.O. Box 241912 Anchorage, AK 99524Contact: Peny FrisbyPhone: (907) 277-6442Fax: (907) 277-6443


Email: [email protected] site: www.arcticpacific.comArctic Pacific Enterprises/Exline providesrepair/rebuild services of large diesel gen-erators, compressors, engines, parts andspecialized coating of parts to extendequipment life.

Engineered Fire Systems3838 Commercial Dr.Anchorage, AK 99501Contact: Don Maupin, Oil & Gas Mgr.Phone: (907) 274-7973 ext. 114Fax: (907) 274-6265Email [email protected] site: www.efs-fire.comAn industry leader in the design, integra-tion and testing of safety solutions forhigh value risks. UL system certificationsand panel fabrication.

Machinery Technical Support200 W. 34th Ave., #979Anchorage, AK 99503Contact: Sid BookshPhone: (907) 250-4499Fax: (907) 243-4066Email: [email protected] Technical Support performsroot cause analysis of rotating equipmentand the surrounding process. With per-formance analysis, vibration analysis, andprocess plant experience MTS can helpyou determine equipment condition andprioritize maintenance and repairoptions.

Maritime Helicopters3520 FAA Rd.Homer, AK 99603Contact: Audrey ReardenPhone: 907-235-7771Fax: 907-235-7741Email: [email protected] business since 1973, MaritimeHelicopters offers statewide (includingAleutian Islands) helicopter support frombases in Homer and Kodiak. We alsooffer an 86-foot research vessel with heli-pad.

MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Bob SlettePhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected]: www.mrosalesinc.comWe are a stocking distributor for top-of-the-line waste oil heaters (Reznor), wastewater flocculants (Waterclear), environ-mentally friendly solvents for your partswasher (PT Technology), corrosion anderosion repair and maintenance poly-menrs (Belzona), Vapor phase (VpCI™)and Migrating Corrosion Inhibitors (MCI)(Cortec) and valve lubricants and sealants(Chemola).


Maps

Mapmakers Alaska259 S. Alaska St.Palmer, AK 99645Contact: Brit Lively, managerPhone: (907) 745-3398Fax: (907) 745-6733Maps for oil and gas industry and custommap work

Marine Propulsion

Northern Lights1200 W. International Airport WayAnchorage, AK 99519Contact: Jeff CampbellPhone: (907) 562-2222Fax: (206) 563-1921Email: [email protected] site: www.northern-lights.comLugger marine diesels (70-900 HP) weredeveloped for Alaskan fishermen, andare now found in commercial and yachtapplications worldwide. Reliability and

fuel efficiency are key.

Marine Services & Construction





Mat Systems

Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] fabrication of timber or timberwith steel combination heavy-duty equip-ment or road mats, prefabricated retain-ing walls, containment enclosures or heli-copter landing platforms.


Mechanical & Electrical Inspection

Udelhoven Oilfield System Services Anchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103

Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Meetings & Conventions

Hilton Anchorage500 West Third Ave.Anchorage, AK 99501Contact: Karen BoshellPhone: (907) 272-7411Phone: 1-800-321-3232Fax: (907) 265-7175Website: www.anchorage.hilton.comOur $15 million renovation project iscomplete. In addition to our popularmeeting floor, we now have a 6,000 sq.ft. conference center with eight state-of-the art meeting rooms, Internet connec-tivity, video-conferencing and completecatering and service support.


Movers/Relocation

Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Karen Conover, vice presidentPhone: 907-452-1181Fax: 907-451-6188Web site: www.sourdoughexpress.comSourdough Express Inc. provides truckingservices, full service moving and storageservices, and conex container sales andrentals.

Mud & Mudlogging

Epoch Well Services5801 Silverado WayAnchorage, AK 99518Contact: James R. Carson, AK DivisionMgr.Phone: (907) 561-2465Fax: (907) 561-2474Email: [email protected] over 250 wells logged since 1989,Epoch is the leading provider ofadvanced mudlogging services in Alaska.Our DML 2000 software assimilates acomprehensive database of geologicaland drilling information with presenta-tions available in a variety of hardcopyand digital formats.

On-site Medical Services



Photography

Judy Patrick PhotographyPhone: (907) 376-4704Fax: (907) 376-9703Specializing in petroleum and miningphotography

Pipe & Fittings


Pipeline Insulation

Flowline Alaska1881 LivengoodFairbanks, AK 99701Contact: Chris JohanssenPhone: (907) 456-4911Fax: (907) 456-1194Flowline has three pipe insulation, fabri-cation, and coating facilities encompass-ing over 45,000 ft of enclosed productionarea, on a 22 acre site in Fairbanks thatoffers substantial area for material han-dling and staging, and a dedicated railspur.

Pipeline Maintenance




VECO949 E. 36th Ave., Ste. 500Anchorage, AK 99508Contact: Roxanne PayneEmail: [email protected]: (907) 762-1510Fax: (907) 762-1001Website: www.VECO.comVECO is a multi-national corporation thatprovides services, project management,engineering, procurement, construction,operations and maintenance – to theenergy, resource and process industriesand the public sector.

Zy-Tech Global Industries10600 Corporate Dr.Houston, TX 77477Contact: Scott Moreland, product manag-erPhone: (281) 565-1010Fax: (281) 565-3171Email: [email protected] site: www.Zy-Tech.comZy-Tech/PBV-USA is the fastest growingvalve company in North America, withmanufacturing facilities around theworld. Our “state of the art” manufac-turing plant near Houston allows us toattack specialized valve requirements aswell as, off the shelf items.

Plumbing

Udelhoven Oilfield System

B16 PETROLEUM NEWS • WEEK OF JUNE 22, 2003PETROLEUM DIRECTORYServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Process Equipment


Procurement Services

Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank WeissPhone: (907) 276-2747Fax: (907) 279-4088Email: [email protected] site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.


Real Estate

Alaska RailroadP.O. Box 107500Anchorage, AK 99510Contact: Wende Lance, Marketing andLogistics TechnicianPhone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight services– including complete services to moveyour freight between Alaska, the Lower48 and Canada.

First National Bank Alaska101 W. 36th Ave.Anchorage, AK 99503Contact: Bill InschoPhone: (907)777-3577E-mail: [email protected]: www.FNBAlaska.comOne of the strongest, most financiallysecure commercial banks in the nation,First National offers a range of deposit,lending, escrow and bankcard services at27 branches across the state. MemberFDIC and equal housing lender.

Recycling Waste Management

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Rick Hofreiter or John DalyPhone: (907) 659-3197Fax: (907) 659-3190Web site: www.colvilleinc.comDiesel, gasoline, jet fuel, aviation gasolinein bulk and small quantity deliveries, elec-tronic card-lock fleet management, solidwaste and recycling, steel, industrial

gases and solid waste.



Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, VP, AlaskaManagerPhone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco has supplied services to theAlaska oilfield since 1976. We havetrained personnel to help with instru-mentation, solids control, pipe handlingand Top Drive drilling equipment. 24hour on call

Shred Alaska840 Norman St.Anchorage, AK 99504Contact: Cindy or Larry Hinkle, ownersPhone: (907) 929-1154Fax: (907) 929-1154Email: [email protected] Alaska provides an on-site docu-ment destruction service for the immedi-ate, secure disposal of confidential andsensitive materials. Your documents areshredded on board a custom designedtruck equipped with a high-poweredindustrial shredder. No documents leavethe business site until they are completelydestroyed. They are then taken to therecycling center.

Reporting Software

Epoch Well Services5801 Silverado WayAnchorage, AK 99518Contact: James R. Carson, AK DivisionMgr.Phone: (907) 561-2465Fax: (907) 561-2474Email: [email protected] is a Windows based relational data-base program for morning reports, wellplanning, drilling, completion andworkover reports. RIGREPORT providescontractors with an electronic tour sheetfor morning reports and payroll report-ing..

Restaurants


Wayne’s Original Texas Bar-B-Que3400 C. St.Anchorage, AK 99503Contact: Wayne BondPhone: (907) 569-9911Fax: (907) 349-1867Wayne’s Original Texas Bar-B-Que is afamily style restaurant providing a varietyof succulent, tender meats (brisket, ribs,

chicken & turkey), slow cooked or hard-wood-smoked with a variety of tradition-al sides and desserts. Dine-in, take-out,delivery, drive-thru services available.

Rigging Supplies


Right of Way Maintenance

Cruz ConstructionHC04 Box 9323Palmer, AK 99645Contact: Dave or Dana CruzPhone: (907) 746-3144Fax: (907) 746-5557Email: [email protected] contractor specializing in heavycivil construction, horizontal directiondrilling for utilities. Ice road and icebridge construction throughout Alaska insupport of resource development.

Safety Equipment & Supplies


Brooks Range Supply1 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll free: (866) 659-2550Fax: (907) 569-2650Email: [email protected] source on the Slope for safety sup-plies, welding supplies, automotive andtruck parts, hardware, tools, buildingmaterials, glass, propane, hydraulic hosesand fittings, paint and chemicals.



Jackovich Industrial & ConstructionSupplyFairbanks: 1600 Wells St.Attn: Buz JackovichPhone: (907) 456-4414Fax: (907) 452-4846Anchorage: 1716 Post RoadAttn: Steve SlonePhone: (907) 277-1406Fax: (907) 258-170024 hour emergency service. With 30 yearsof experience, we're experts on Arctic con-ditions and extreme weather.

PSI Environmental & Instrumentation1611 E. 1st Ave.

Anchorage, AK 99501Phone: (907) 272-8010Fax: (907) 272-9005Soldotna office:36275 Kenai Spur Hwy, Ste. 2Soldotna, AK 99669Phone: (907) 260-5725Fax: (907) 260-5730Email: [email protected]: www.psienv.comPSI is your local supplier for gas detectionequipment and supplies. We carryportable and fixed systems available forpurchase or rent and calibration gases atvery competitive rates.



Security


Seismic & Geophysical

Kuukpik/Fairweather & Veritas DGCLand715 L St.Anchorage, AK 99501Contact: Jeff HastingsPhone: (907) 258-3446Fax: (907) 279-5740Email: [email protected]

PGS Onshore341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Larry Watt, Alaska Area Mgr. Phone: (907) 569-4049Fax: (907) 569-4047Email: [email protected] Office738 Hwy 6 South, Ste 900Houston, TX 77079Contact: Gehrig SchultzPhone: (281) 589-6732Fax: (281) 589-6685Email: [email protected] acquisition and processingfor the petroleum industry. PGS Onshoreprovides fully rubber tracked Arctic geo-physical crews to acquire the highest den-sity data with the softest environmentalfootprint on the North Slope.

Shredding

Shred Alaska840 Norman St.Anchorage, AK 99504Contact: Cindy or Larry Hinkle, ownersPhone: (907) 929-1154Fax: (907) 929-1154Email: [email protected] Alaska provides an on-site docu-ment destruction service for the immedi-ate, secure disposal of confidential andsensitive materials. Your documents areshredded on board a custom designedtruck equipped with a high-poweredindustrial shredder. No documents leave


the business site until they are completelydestroyed. They are then taken to therecycling center.

Shrink Wrap Product Preservation

Dura-Wrap ContainmentsP.O. Box 2374Palmer, AK 99645Contact: John HutchinsonPhone: (907) 373-3443Toll Free: (866) 873-3443 (lower 48 only)Fax: (907) 373-3453Email: [email protected] site: www.durawrap.comDura-Wrap’s mobile shrinkwrap serviceprovides complete product protection tobarge, marine and overland cargohaulers, heavy equipment haulers, andother industrial products. Dura-Wrap: anexpedient and environmentally safemethod of providing your clients withclean freight, less costly cleanup and big-ger profits.

Steel Fabrication


STEELFAB2132 Railroad Ave. Anchorage, AK 99501Contact: Janet Faulkner, Vice PresidentPhone: (907) 264-2819Fax: (907) 276-3448Email: [email protected] is the largest Alaskan-ownedsteel service center in the state. It pro-vides pressure vessels, modules, specialdesign items and raw steel products.

Totem Equipment & Supply2536 Commercial Dr.Anchorage, AK 99501Contact: Mike Huston, V.P.Phone: (907) 276-2858Fax: (907) 258-4623Email: [email protected] Equipment & Supply Inc. locallyowned and operated since 1961. Supplieslight, medium and heavy equipment.Specializing in temporary & permanentheating solutions.

Udelhoven Oilfield System Services Anchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Steel Sales

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Rick Hofreiter or John DalyPhone: (907) 659-3197Fax: (907) 659-3190Web site: www.colvilleinc.comDiesel, gasoline, jet fuel, aviation gasolinein bulk and small quantity deliveries, elec-tronic card-lock fleet management, solidwaste and recycling, steel, industrialgases and solid waste.


Surveying & Mapping

ASTAC/fm, a division of ASTAC4300 B Street, Ste. 501Anchorage, AK 99503Contact: Don NelsonPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] expertise in implementing GIStechnology whether data conversions ora turnkey solution.

Kuukpik-LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Fax: (907) 273-1831Email: [email protected] contractor project support sur-veyors; remote site land and hydrograph-ic surveys for government and private;oil and gas development surveying, map-ping, and permitting.

LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architecturalmgr.Contact: Willey Wilhelm, engineeringmgr.Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Phone: (800) 955-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (800) 478-8213Email: [email protected]: (907) 670-4739Email: [email protected] contractor project support sur-veyors; remote site land and hydrograph-ic surveys for government and private;oil and gas development surveying, map-ping, and permitting.

Lounsbury and Associates723 W. 6th Ave.Anchorage, AK 99501Contact: Craig L. Savage, presidentE-mail: [email protected]: Jim Sawhill, vpEmail: [email protected]: (907) 272-5451Fax: (907) 272-9065Toll Free: (800) 478-5451Website: www.lounsburyinc.comSpecializing in surveying for Alaska oiland gas exploration, oilfield develop-ment and transportation systems, con-ventional and GPS surveying, and map-ping.

Tank Fabrication


Telephone Equipment & Sales

ASTAC4300 B Street, Ste. 501Anchorage, AK 99503Contact: Erin EalumPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] local and long distance service,maintenance and training, consultation,installation, engineering, Centrex, customcalling features, digital cross connect serv-ice, and digital data service.

Temporary Placement Services

Alaska’s People2600 Cordova St., Ste.211Anchorage, AK 99503Contact: Teresa Nelson, directorPhone: (907) 263-7013Fax: (907) 263-7083Email: [email protected]

Web site: www.alaskapeople.comEmployment reference services with anemphasis on qualified Alaska Natives andAmerican Indians.

Chiulista Camp Services301 Calista Ct., Ste. AAnchorage, AK 99518Contact: George B. Gardner, President &GMPhone: (907) 278-2208Fax: (907) 279-8430Email: [email protected] 100% Alaska Native owned andoperated catering company on the NorthSlope, catering and housekeeping toyour tastes, not ours.

Training

Northern Testing Laboratories3330 Industrial AvenueFairbanks, AK 99701Contact: Michel R. Pollen, presidentPhone: (907) 456-3116Fax: (907) 456-3125Email: [email protected] is Alaska’s premier provider of certi-fied water and wastewater operatortraining classes. ADEC-approved classesare offered publicly or provided on site atclients facilities.


Tubing & Tube Fittings


Underwater NDT & Photography



Underwater Welding

American Marine6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, Marine OperationsContact: Steve Stuart, Alaska RegionalManagerPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected]

Website: amsghq.comAmerican Marine Corp. (American Divers)provides full service marine construc-tion/divers throughout Alaska and thePacific.


Valves

Zy-Tech Global Industries10600 Corporate Dr.Houston, TX 77477Contact: Scott Moreland, product manag-erPhone: (281) 565-1010Fax: (281) 565-3171Email: [email protected] site: www.Zy-Tech.comZy-Tech/PBV-USA is the fastest growingvalve company in North America, withmanufacturing facilities around theworld. Our “state of the art” manufac-turing plant near Houston allows us toattack specialized valve requirements aswell as, off the shelf items.

Vehicle Repair

Kenworth Alaska2838 Porcupine Dr.Anchorage, AK 99501Contact: Jim Scherieble, Branch Mgr.Phone: (907) 279-0602Phone: (800) 478-0602Fax: (907) 258-6639Fairbanks office:3730 Braddock St.Fairbanks, AK 99701Contact: Ed Lewis, Branch Mgr.Phone: (907) 455-9900Fax: (907) 479-8295Kenworth Alaska is a full service truckdealership in two locations – Anchorageand Fairbanks. New and used truck sales,parts and service.

Seekins Ford Lincoln Mercury1625 Old Steese Hwy.Fairbanks, AK 99701Contact: Steven Angel, Fleet SalesManagerPhone: (907) 459-4044Fax: (907) 450-4007Email: [email protected]: www.seekins.comFord Lincoln Mercury dealer located inFairbanks Alaska providing solutions toyour transportation needs. Parts and serv-ice support in Fairbanks and Prudhoe Bay.

Vehicle Sales/Rental

Seekins Ford Lincoln Mercury1625 Old Steese Hwy.Fairbanks, AK 99701Contact: Steven Angel, Fleet SalesManagerPhone: (907) 459-4044Fax: (907) 450-4007Email: [email protected]: www.seekins.comFord Lincoln Mercury dealer located inFairbanks Alaska providing solutions toyour transportation needs. Parts and serv-ice support in Fairbanks and Prudhoe Bay.

Tucker Sno-CatP.O. Box 1529Medford, OR 97501Contact: Dan Dressler or Gordon DuncanPhone: (541) 779-3731Fax: (541) 779-3735Email: [email protected]: [email protected]: www.sno-cat.comSupplying Alaska for over 40 years withreliable oversnow transportation. Tundraapproved, rubber tracked vehicles andtrailers for 2-15 passengers and cargo.

Welding

Flowline Alaska1881 Livengood

B18 PETROLEUM NEWS • WEEK OF JUNE 22, 2003PETROLEUM DIRECTORYFairbanks, AK 99701Contact: Chris JohanssenPhone: (907) 456-4911Fax: (907) 456-1194Flowline has three pipe insulation, fabri-cation, and coating facilities encompass-ing over 45,000 square feet of enclosedproduction area, on a 22 acre site inFairbanks that offers substantial area formaterial handling and staging, and adedicated rail spur.

Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.

Weld Repairs/Manufacturing

GBR Equipment6300 Petersburg St.Anchorage, AK 99507Contact: Bob ReynoldsPhone: (907) 563-3550Fax: (907) 562-6468Casing, mechanical and welding services,tire sales and repair, equipment and vehi-cle rental.


Peak Oilfield Service2525 C St., Ste. 201

Anchorage, AK 99503Contact: Bill Stamps, BusinessDevelopment/Ex. AffairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.


Unique Machine5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected]: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construction,mining, fishing and government parts toindustry quality standards.

Wire Rope


OIL COMPANIES

Operators

ConocoPhillips Alaska700 G St.P.O. Box 100360Anchorage, AK 99510-0360Contact: Kevin O. Meyers, president &CEOPhone: (907) 265-6134Fax: (907) 265-1502

Evergreen Resources AlaskaP.O. Box 8718451075 Check St., Ste. 202Wasilla, AK 99687Contact: John Tanigawa, Alaska projectmgr.Phone: (907) 357-8130Cell: (907) 841-0000Fax: (907) 357-8340Email: [email protected]: www.EvergreenGas.comEvergreen Resources Alaska, a whollyowned subsidiary of Evergreen ResourcesInc. (NYSE:EVG), is an independent ener-gy company specializing in explorationand development of unconventional nat-ural gas.

Forest Oil310 K St., Ste. 700Anchorage, AK 99501Contact: Gary E. CarlsonPhone: (907) 258-8600Fax: (907) 258-8601Web site: www.forestoil.comForest Oil Corporation is a growing inde-pendent exploration and productioncompany focusing on investment oppor-tunities in Alaska, Canada, western U.S.,Mexico and unique internationalprospects.

Marathon Oil3201 C St., Suite 800Anchorage, AK 99519-6168Contact: John A. Barnes, Regional Mgr.Phone: (907) 561-5311Fax: (907) 564-6489Web Site: www.marathon.com

Unocal Alaska909 W. 9th Ave.Anchorage, AK 99501Contact: Roxanne Sinz

Phone: (907) 263-7623Fax: (907) 263-7693Email: [email protected] 100 years ago Unocal came toAlaska to sell petroleum in the territory.By 1939, the company had geologicalteams in Southcentral Alaska who helpeddiscover the Swanson River oil field in1957 and then the first gas field a yearlater. Today Unocal is the largest operatorin Cook Inlet, operating 10 of the 16 plat-forms, 6 of 11 producing gas fields andseveral onshore facilities.

XTO Energy810 Houston St., Ste. 2000Fort Worth, TX 76102Contact: Vaughn O. Vennerberg, IIPhone: (817) 870-2800Fax: (817) 870-0379Other Office: XTO Energy, 52260 ShellRoad, Kenai, AK 99611, Doug Marshall,Production SuperintendentXTO Energy, established in 1986, isengaged in the acquisition and develop-ment of quality, long-lived producing oiland gas properties and exploration for oiland gas.

ON DEADLINECapital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye LanglaPhone: (907) 777-1501Fax: (907) 777-1515Email: [email protected]

Oilfield Transport6816 Lowell Cir.Anchorage, AK 99502Contact: Henry MinichPhone: (907) 229-9647Fax: (907) 245-8930Email: [email protected] on-site rig service and logisticssince 1975. Highway and remote trans-portation of equipment via barge or air,for mining or oilfield projects, to anylocation in Alaska.


True Grit in a WaterworldBy SUSAN BRAUND

Petroleum Directory Contributing Writer

ohn Wayne would have made a great offshore diver.He had the grit and determination it takes to accom-plish underwater tasks that would make others foldtheir cards.

Being a front line diver in Alaska’s Cook Inlet is tough.It requires skill, focus, tolerance for pain and the ability towork adeptly with your hands — in the blind. “It’s a toughprofession,” says Offshore Divers co-owner DonIngraham. “You have tobe stubborn with no give… it’s rare to see a diverwho will give up … ifyour tendency is to givein easily you do notbelong in this business.”

Ingraham does nothesitate to acknowledgethat there are talentedwomen in the business,but few choose to dive inCook Inlet — mostly, hethinks, because of theweight of the equipmentrequired. “A diver mighthave 100 pounds oftools,” he says. “The div-ing hat weighs 30 pounds,then stack on 40 or 50pounds of tools and addanother 30-50 pounds fora weight belt and gravitytakes over. A hard thing ismaking a tough dive andbringing it all back up thedive ladder with the tiderunning. This is a real hard job, that’s what it amounts to.Few people are cut out for it. Only about one-half percentof graduates from 15 or so diving schools stay in the busi-ness.”

The murky waters of Cook Inlet require a highly devel-oped tactile sense. A large portion of the divers’ work isdone by feel, almost like a sixth sense. “You learn to relyon your fingers; you get so good at it that when you are inclear water you often will close your eyes for better focus.”

The business Offshore Divers is an Alaska owned and operated com-

mercial hard hat diving company with 24-hour responsecapability. Primary work involves regular maintenance andrepairs for the oil and gas industry. Routine jobs includeunderwater welding and cutting, installation of sub seapipelines, inspection and repair work on oil platforms,docks and bridges as well as salvage work.

The five-year old diving contractor is co-owned by DonIngraham and Leif Simcox, who together have 50-plusyears of commercial diving experience. In the past theowners have individually worked the North Sea, SouthAmerica and New Zealand, but all of the company’s work

has been in Alaska. They recently bid work in the SakhalinIslands where diving conditions are very similar.

According to Simcox, 98 percent of the company’swork is oilfield-related: “To get oil work, you need to beknown. We have a track record and known divers.Offshore Divers has proven that it can do the work.”

Crew numbers may swell to 30 or 40 during the peakseason and balance out at about 15 welders and divers therest of the year, including six core divers. Leif runs most ofthe jobs while Don concentrates on running the office andperiodically diving some of the shorter jobs.

Few Alaska commercial diving contractors carry theinsurance and certifications held by Offshore. “We are anAssociation of Commercial Diving Contractor membercompany. All of our divers have ADC credentials.” empha-sizes Ingraham. “The proper types and amounts of insur-ance is a critical credential. Similar to the airlines, since 9-

11 insurance rates havesoared. Our insurancemeets or exceeds therequirements of oil &construction companiesand the State of Alaska.The insurance costs man-date a valid and activesafety program developedaround the regulations ofOSHA and the USCG incompliance with theADC standards.

The Sand IslandMost of the compa-

ny’s Cook Inlet work isconducted from theupgraded Sand Island, a72-foot offshore rescueand supply vessel, origi-nally built to AmericanShipping Bureau andCoast Guard standards.The vessel power andhull speed make it possi-ble to travel to a dock or

location against the tidal currents between slack tides,which saves the client money as slack tides (dive windows)are not wasted by vessel travel.

Customized for Alaska conditions and diving opera-tions, the Sand Island is work-wise with deep air divingsystem, heavy duty hydraulic deck crane, deck winch andhydraulic manifold for flow and pressure control for a vari-ety hydraulic tools and saws.

Added specialty equipment includes twodifferential GPS systems and a Dopplercurrent profiler. “With the GPS, we can beon a pipeline usually in one tide, where inthe past it might take three to six tides,”reports Ingraham. “And the current profilerprovides current speeds every 10 feet fromthe surface to the bottom. It supplies valu-able information to the diver for starting hisdive.”

For its blackwater camera system, thevessel has a multi-stage pump to supplymedium pressure fresh water through acamera box for photographing critical struc-tural platform welds in Cook Inlet capturing

both still and video pic-tures.

“Technology hasdefinitely improvedefficiency” saysIngraham, “but in theend the diver still mustget in the water andproduce. That part hasn’t changedmuch, other than we have better gear.”

Because of its lack of real commu-nications, limited air supply and no tieto the surface, scuba gear is not anapproved diving method at OffshoreDivers. Scuba gear and training is onlyfor recreation, not working divers,according to Offshore Divers.

Locked and loadedOffshore is ready to tackle the tough jobs. Work comes

in a variety of forms. A North Slope job this winter was asingle 10-minute dive in nine feet of water under four feetof ice at 10 degrees below zero. The dive recovered a

$125,000 down-hole tool. Last summer it took 89 dives to complete a Cook Inlet

subsea pipeline re-abandonment project. The old line cor-roded and began producing occasional sheens. OffshoreDivers provided the diving to sever the line and install asubsea pig launcher. They also installed several subsea hottaps to allow tying the line to surface vacuum trucks forfluid removal. At project completion, the AlaskaDepartment of Environmental Conservation and U.S.Coast Guard accepted the line for re-abandonment.

Some of the company’s most hazardous work is yearlymaintenance on the deep mooring systems in Valdez andPrince William Sound. Working on these three-leggedmammoths in 300-plus feet of water is large scale: manipu-lating 100-pound-per-link chains and 40,000- pound leganchors from the decks of a 220-foot work boat using a150-ton double drum winch is the bulk of the work., thenadd in an ocean-going landing craft and a 10,000 horse-power tug to the mix. All critical components are regularly

changed out to prevent failures which could free 400-footspill response barges with millions of dollars of spillresponse equipment and spill response crews on board.“Working these systems requires critical planning and strictsafety compliance,” says Ingraham, “It’s all so big andheavy — there’s little room for error, untrained crews oruntried methods.” ●

OFFSHORE DIVERS5630 Silverado Way, Unit A-9

Anchorage, AK 99518907-563-9060

www.offshoredivers.com

Editor's note: Susan Braund owns Firestar MediaServices in Anchorage, Alaska.

J

Marine contractor Offshore Divers tackles the tough jobs

Diver Tobin Frey water blasts a horizontal member on a loadingdock structure at the Valdez tanker terminal.

Prince William Sound Alaska — Dive Tender Phil Cook assistsdiver John Juettner with dive preparations. A video cameraand light are mounted on his diving helmet.

On the deck of the Sand Island, inside the A-frame. The diver used the bluepipe-cutting saw to sever an oil pipeline running to the Cook Inlet platformvisible on the right. After cutting the line, divers attached a flange and con-nected it to another pipeline.

The heart of the company — the Sand Island, Offshore Divers’ 72-foot retrofitteddive boat, formerly an offshore rescue and supply vessel. Visible forward of thehouse are the hydraulic crane and A-frame. A decompression chamber is locatedunder the deck.

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Drill pipe

Backhoes excavating ice during Northstar Island construction

Company Snapshots

On the rig foor of Nabors rig 14E

Documents

Vol. 8, No. 25 • Anchorage, Alaska ... · see KUDOS page A15 JUDY PATRICK see ... Dreco 147 SDC Rig cold stacked EnCana Cook Inlet Basin – Onshore Marathon Oil Co. (Inlet Drilling