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February 2013 $3.95 SPECIAL SECTIONS: ENGINEERING & INTERNATIONAL TRADE FUR RONDY FRONTIER BASINS EXPLORATION Trucking steel from Valdez to Salcha Commercial Industrial Charters
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February-2013-Alaska Business Monthly

Mar 28, 2016

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Fifty-six of the 80 steel I-beams for the Alaska Railroad Tanana River Bridge crossing at Salcha arrived at the Port of Valdez in Novemeber 2012. The girders are being transported to the project site by Carlile Transportation Systems over the course of several months (story begins on page 60). Cover photo courtesy of Carlile Transportation Services.
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Page 1: February-2013-Alaska Business Monthly

February 2013 $3.95

SPECIAL SECTIONS: ENGINEERING & INTERNATIONAL TRADE ■ FUR RONDY ■ FRONTIER BASINS EXPLORATION

TruckingsteelfromValdeztoSalcha

Commercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial ChartersCommercial Industrial Charters

Page 2: February-2013-Alaska Business Monthly

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John ColeEquipment Sales Rep.

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Atlas Copco and Construction Machinery Industrial—Your total equipment solutions team

Page 3: February-2013-Alaska Business Monthly
Page 4: February-2013-Alaska Business Monthly

FromtheEditor . . . . . . . . . . . . . . . . . . . . .7InsideAlaskaBusiness . . . . . . . . . . . . .8Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . .65RightMoves . . . . . . . . . . . . . . . . . . . . . .70AlaskaThisMonth. . . . . . . . . . . . . .104EventsCalendar . . . . . . . . . . . . . . . .107MarketSquares. . . . . . . . . . . . . . . . .110AlaskaTrends. . . . . . . . . . . . . . . . . . .111AdIndex . . . . . . . . . . . . . . . . . . . . . . . .114

About the coVerFifty-six of the 80 steel I-beams for the Alaska Railroad Tanana River Bridge crossing at Salcha arrived at the Port of Valdez in November 2012. The girders are being transported to the project site by Carlile Transportation Systems over the course of several months (story begins on page 60).

Cover photo courtesy of Carlile Transportation Systems.

F e b r u a r y 2 0 1 3

T A B L E O F C O N T E N T S

VIEW FROM THE TOP

Kelly Dyer, President Spice Ratchet Mills LLC

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12 | KellyDyer,PresidentSpice Ratchet Mills LLC

Compiled by Mari Gallion

FISHERIES36 | BeringSeaBounty

Commercial fishing exports shore up Dutch Harbor, Akutan economies

By Zaz Hollander

FISHERIES42 | PlightoftheAlbatrossImproves

Cheering an Alaska fishing fleet in the Bering Sea

By Wesley Loy

TELECOM & TECHNOLOGY43 | SafetyandServiceatGCIIndustrialTelecom

Top priorities at pay offBy Ed Archer

OIL & GAS46 | DoyonLimitedPioneersFrontierBasins

Middle Earth pushes oil and gas exploratin in Alaska’s quiet corner

By Zaz Hollander

OIL & GAS50 | WinterDrillinginAlaska

Almost shuttered by high state taxes and the feds

By Mike Bradner

54 | 2012OilandGasLeaseSaleResults

56 | AlaskaOCSProgressAchieving objectives in the Arctic

By Mike Bradner

TRANSPORTATION60 | Commercial IndustrialCharters

Trucking steel from Valdez to SalchaBy Susan Harrington

CONSTRUCTION66 | WinterConstruction inFairbanks

Working with the weather presents challenges

By Julie Stricker

INSURANCE ESSENTIALS72 | Self-Insured HealthBenefitPlans

A new benefits solution shows promise for cutting costs and making employees happy

By Mari Gallion

MINING ENVIRONMENTAL SERVICES74 | Pebble’s EnvironmentalTeam

Understanding the Partnership’s effortsBy Paula Cottrell

MINING ENERGY76 | PowertotheMine

What it takes to keep the lights on and the cogs moving in remote operations

By Rindi White

MINING82 | EconomicImpactofMining

A message from Deantha Crockett

Articles

dePArtments

A 180-foot-tall communication tower install at Pioneer’s 3H pad on the North Slope.A 180-foot-tall communication tower install at Pioneer’s 3H pad on the

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■ 4 www.akbizmag.com•Alaska Business Monthly•February2013

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Page 5: February-2013-Alaska Business Monthly

Call an Alaska business expert today. 777-4FNB (4362) Anchorage/Eagle River 1-800-856-4362 other communities/Canada or visit FNBAlaska.com

> Online banking > Business loans > Wire transfer> Merchant credit card services > ACH debit origination> Contract collections >> Repurchase agreements> Account reconciliation> Remote deposit capture > Account analysis > Corporate MasterCard® program > Procurement Bankcard Services> BusinessCard™ debit card >> Payroll direct deposit> Employer Advantage Checking for employees> Positive pay

Flexible, strong, comfortable and easy-to-use, our comprehensive array of business banking services gives you the freedom and power to do what you do best.

First National Bank Alaska is the nancial management tool of choice for successful businesses across the state.

Every successful Alaska businessemploys unique tools of the trade.

[ And most have one tool in common. ]

B U S I N E S S C A S H M A N A G E M E N T

Page 6: February-2013-Alaska Business Monthly

■ 6 www.akbizmag.com•Alaska Business Monthly•February2013

F e b r u a r y 2 0 1 3

T A B L E O F C O N T E N T S

special section

Engineering

86 | Engineer’sWeek2013

88 | 2013EngineeroftheYearNominees

Compiled by Mikal Hendee

92 | BuildingInnovations inAlaska

Reaching ultimate efficiencyBy Rindi White

99 | 2013Architects &EngineersDirectory

special section

World Trade

14 | Q&AwithGregWolf

18 | LetterfromRickPollock

20 | SoutheastAsiaNewMarkets—NewCustomers

Why ASEAN, why now?By Alex Salov

24 | TradeMissionsGathering here or there to make things happen

By Greg Wolf

26 | Trans-PacificPartnershipNew trade agreement would dwarf NAFTA

By Aaron Weddle

28 | AlltheRightStuffFour ways Alaska is primed for export success

By Greg Wolf

30 | Alaska’sNorthSlopeandLNG

North America’s energy bridge to AsiaBy Sourabh Gupta and Ashok Roy

33 | ArcticAmbitionsIIConference

34 | NewRealisticRussianOpportunities

Promoting business with Alaska Companies

By Alex Salov and Aaron Weddle

35 | ExportPartners &CommoditiesCover credits were omitted from the January 2013 issue, page 4.

Cover photo: © Chris Arend Photography

corrections

The zinc wall behind a NANA Regional Corporation Inc. 909 W. Ninth Ave. offi ce building reception area in Anchorage refl ects three different stitching patterns commonly used to trim parkas in Western Alaska.

The zinc wall behind a NANA Regional Corporation Inc. 909 W. Ninth Ave.

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FINANCIAL SERVICES85 | IRSProvidesUpdatedWithholdingGuidancefor2013

VISITOR INDUSTRY108 | FurRondy

More than just fun and gamesBy Susan Sommer

Articles

The best Alaskan artists showcase their work at

Fur Rondy.

Photo by Clark James Mishler, courtesy of Greater Anchorage Inc.

108

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Page 7: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 7 ■

Volume 29, Number 2Published by

Alaska Business Publishing Co.Anchorage, Alaska

Vern C. McCorkle, Publisher1991~2009

EDITORIAL STAFFManaging Editor Susan HarringtonAssociate Editor Mari Gallion

Editorial Assistant Tasha AndersonArt Director David Geiger

Art Production Linda Shogren Photo Consultant Chris Arend

Photo Contributor Judy Patrick

BUSINESS STAFF President Jim Martin VP Sales & Mktg. Charles Bell

Senior Account Mgr. Anne CampbellAccount Mgr. Bill Morris

Survey Administrator Tasha Anderson Accountant & Mary Schreckenghost Circulation

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

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

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

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

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

ALASKA BUSINESS PUBLISHING CO., INC.ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2012, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specifi c permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Th omson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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FROM THE EDITOR

The clock is ticking to apply for low-interest federal disaster loans for physical and economic damages suff ered due to certain storms occurring last fall. This

economic assistance from the U.S. Small Business Administration is available for individuals and businesses to repair or replace property damaged by high winds and fl ooding across much of Alaska Sept. 15-30, 2012, and to seek help due to economic injury suff ered as a result of the storms.

After Gov. Sean Parnell declared the disaster, and amended it when the storms and damages continued, the current administration failed to do the same. How-ever, on Dec. 18, 2012, Alaskans got some relief when the Sacramento offi ce of the SBA issued the following statement: “The SBA acted under its own authority to declare a disaster following the denial on Dec. 6 of the state’s request for a major disaster declaration.”

SBA Alaska Disaster Declarations No. 13423 (physical damage) and No. 13424 (economic damage) cover the Kenai Peninsula Borough, the Matanuska-Susitna Borough, and the contiguous Alaska jurisdictions of Chugach REAA, Copper Riv-er REAA, Delta/Greely REAA, the Denali Borough, Iditarod Area REAA, Kodiak Is-land Borough, Lake and Peninsula Borough, and the Municipality of Anchorage.

Businesses and individuals in these areas have until Feb. 18 to apply for loans to mitigate physical damage, and until Sept. 18 to apply for loans to assist with economic injury. Businesses may apply for up to $2 million in loans.

To apply, go online to SBA’s secure website and submit an electronic loan ap-plication at https://disasterloan.sba.gov/ela. Alternately, request information and forms by calling 800-659-2955 (800-877-8339 if deaf or hard of hearing), email [email protected] or visit http://www.sba.gov/services/disasterassistance.

Speaking of deadlines, the Alaska Legislature will have gaveled in by the time this issue rolls off the presses—and our legislators have a lot of work to do be-fore the session ends. It will be interesting to see how things progress this year. Let’s hope it doesn’t mirror the movie “Groundhog Day” again.

We’ve put together a host of stories to read. Included topics are: fi sheries, tele-com, oil and gas, transportation, construction, insurance, mining, energy and the visitor industry. In addition to a slate of great articles exploring so many sec-tors of our economy and spanning the state geographically, we’re bringing you two special sections this month: Engineering and World Trade. We’d like to thank our friends at World Trade Center Alaska for showing us how important export trade is to Alaska’s economy—thank you Greg, Alex and Aaron!

The team put together another really great magazine this month—enjoy!

—Susan Harrington, Managing Editor

he clock is ticking to apply for low-interest federal disaster loans for physical and economic damages suff ered due to certain storms occurring last fall. This

economic assistance from the U.S. Small Business Administration is available for individuals and businesses to repair or replace property damaged by high winds and fl ooding across much of Alaska Sept. 15-30, 2012,

Disaster

Deadlines

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Page 8: February-2013-Alaska Business Monthly

INSIDE ALASKA BUSINESS Compiled by Mari Gallion

■ 8 www.akbizmag.com•Alaska Business Monthly•February2013

Municipal Light & Power

Municipal Light & Power has fi led a request for rate relief with the

Regulatory Commission of Alaska based on revenue requirement and cost of service studies using a 2011 test year.

Th e studies show that a 9.72 percent rate increase to ML&P’s energy and demand charges is required to perma-nently fi nance investments the utility has made to its transmission and dis-tribution system and should be applied on an across-the-board basis to all cus-tomers. Because the rate increase is ap-plied only to the demand and energy charges, the overall increase to the typ-ical consumer’s total monthly bill will be between 6 and 7 percent.

If the rate increase is fully imple-mented, ML&P’s net income will in-crease by $6.9 million.

ML&P proposes to implement the permanent increase over 15 months in two steps. If approved by the RCA, the 2012 permanent rate increase will raise the average residential bill a total of $3.84 per month from today’s rates. ML&P has asked for 80 percent of the permanent rate increase to be eff ec-tive on an interim and refundable basis within 45 days of the fi ling.

ML&P’s six-year Capital Improve-ment Program calls for the utility to spend $459 million through 2017 in new generation, the Beluga River Unit Gas Field, distribution system improve-ments and other capital projects.

ALPAR

Residents can now drop off glass for recycling at the Anchorage Recy-

cling Center—welcome news for recy-

clers who have been clamoring for glass recycling since the program was cur-tailed in 2009. Th e new glass drop off program is a partnership of Alaskans for Litter Prevention and Recycling, MOA Solid Waste Services, RockTenn Recycling and Central Recycling Ser-vices. SWS has purchased recycling containers for the drop off site from funds received through the recycling surcharge on trash tipping fees.

ALPAR will oversee the collection program and share the cost of hauling the material with SWS. RockTenn, the company that operates the Anchorage Recycling Center, is providing the col-lection site at its drop-off center, and CRS is accepting the materials for pro-cessing and use in various end products with hauling provided by Alaska Waste.

CRS will process the glass into glass aggregate for use in local construction projects. CRS operates a state-of-the-art construction and demolition debris recycling facility manufacturing a va-riety of products for the construction industry and diverting a large volume of usable material from the landfi ll. All colors of glass bottles and jars are ac-cepted. Th e Anchorage Recycling Cen-ter will be the only location for glass recycling at this time and recyclers should note that glass is not accepted in the curbside recycling programs.

Calista Corp.

Calista Corp. has announced its newest subsidiary company, E3-

Environmental LLC. E3-Environmen-tal was established to meet energy, engineering and environmental needs and serve clients throughout Alaska and elsewhere.

Th e Alaskan environmental consult-ing company will provide professional services for the region and for the state, including project planning and regula-tory analysis, environmental permitting and impact assessments, stakeholder engagement, agency coordination and consultation, and regulatory compli-ance management and audits.

SIKU Construction

The U.S. Fish & Wildlife Service and UIC Construction Services have

announced that one of its subsidiaries, SIKU Construction, won a $6.1 million contract for design and construction of a new visitor center for the Kenai Wild-life Refuge in Soldotna. Th e new facility will be located next to the current facil-ity and is to be complete by 2014.

SIKU teamed with CTA Architects Engineers, who are leaders in visitor center design, and SIKU sister com-pany Kautaq Construction Services for construction management. Joining the team as well is Umiaq, which is doing the civil design to create the unique building and visitor experience.

Th e new visitor center will be located within the nearly 2-million-acre Kenai National Wildlife Refuge, which is the most visited refuge in Alaska.

Th e center will include an exhibit hall, multi-purpose rooms, book store, restrooms and offi ce spaces.

Parker Drilling Co.

Parker Drilling Co. has commenced drilling operations with Rig 273,

the fi rst of two Arctic Alaska Drilling Unit rigs the company has developed to safely and effi ciently perform in en-

620B East Whitney Road I Anchorage, AK 99501

Pacific Pile & Marine has a robust fleet of Pacific Pile & Marine has a robust fleet of marine equipment including our recentmarine equipment including our recent

addition of a 600-Ton 4600 Ringer.addition of a 600-Ton 4600 Ringer.

From critical lifts to platform support, PPM is From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range sufficiently resourced to deliver a wide range

of construction services.of construction services.www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3878www.pacificpile.com I (907) 276-3873

Your Project, Our Responsibility. 24/7 Service

Page 9: February-2013-Alaska Business Monthly

INSIDE ALASKA BUSINESS Compiled by Mari Gallion

www.akbizmag.com•Alaska Business Monthly•February2013 9 ■

vironmentally sensitive, harsh arctic environments. Rig 273 initiated opera-tions earlier this week under the terms of the company’s fi ve-year contract with BP. Th e company’s second AADU, Rig 272, remains on schedule for accep-tance testing in 2013.

Parker’s rig fl eet includes 22 land rigs and two off shore barge rigs in in-ternational locations, 13 barge rigs in the U.S. Gulf of Mexico, one land rig located in the U.S., and two land rigs in Alaska, one of which is undergoing commissioning. Th e company’s rent-al tools business supplies premium equipment to operators on land and off shore in the U.S. and select interna-tional markets.

Valley Community for Recycling Solutions

Valley Community for Recycling So-lutions installed the newest piece of

its renewable energy system, a Kestrel e300i wind generator. Th e Kestrel now adds to the power being produced by a 4.23kW solar panel array which was installed in May 2011. While supplying a portion of their own power, VCRS is also uploading the data from these en-ergy systems and making it available to the public for free on the Internet.

In October, VRCS installed an an-emometer to measure wind speed along with the soft ware and hookups to feed live data from the solar panels, wind tur-bine, and anemometer to a publicly ac-cessible website on the Internet. Th e real time data allows comparison of solar to wind energy generation for consumers to explore their options as well as provid-ing valuable information for research and

development of latitude and longitude ap-propriate systems. Th e data is accessible to the public through the VRCS website.

Th e renewable energy sources re-duce the carbon footprint of VCRS and ultimately their electrical bills. Any additional power generated and not used by VCRS is fed back into the local MEA utility grid. In the future, VCRS envisions having a bank of batteries in-stalled which will store enough energy to provide an additional emergency shelter for the Mat-Su.

VCRS partnered with Wal-Mart, which provided the majority of funding, and with Renewable Energy Systems and Ahtna Engineering Services for technical expertise to make this cutting edge renewable energy project possible.

Business Insurance Associates

Aft er 15 years of operations in a mid-town Anchorage location, Busi-

ness Insurance Associates Inc. has moved its main offi ce to 9138 Arlon St., Suite A-1, off Abbott Road in South-east Anchorage. Th e move became necessary to accommodate growth in recent years and will better posi-tion the fi rm to meet the opportuni-ties and challenges in the years ahead.Business Insurance Associates Inc. is an independent, Alaskan-owned com-mercial insurance, risk management and surety brokerage founded in 1995. While partnering with a diverse base of clientele, the fi rm retains specialized expertise in construction, design profes-sionals, nonprofi t associations, commer-cial property, transportation, energy, assisted living and the medical industry.

SEARHC

The SouthEast Alaska Regional Health Consortium opened a new

SEARHC Prince of Wales Island Eye Care Clinic in Klawock.

Th e new clinic space is located in the Klawock Mall (6488 Klawock-Hollis Hwy., Space 4), between the credit union and the post offi ce. SEARHC optometrist Annelle Maygren, OD, has been working out of the Alicia Roberts Medical Center since last summer, and the new location will allow her to off er a full range of eye-care services.

Two new optometry assistants have been hired to help Maygren in the clin-ic. Th e two assistants are being trained to help with eyeglass frame fi tting, a service the POW optometry clinic hasn’t been able to off er in the past un-less someone from the Sitka optometry clinic was in town.

Th e new clinic will allow SEARHC to off er dearly needed full-time com-prehensive eye care to Prince of Wales patients.

kpb architects

A staple in the Alaska architecture and design community for 31 years,

Anchorage-based kpb architects now has a new leadership team in design and architecture veterans Jeff Koonce and Michael Prozeralik. Koonce and Prozeralik, who both served on kpb’s previous leadership team, recently purchased the company from their col-leagues. Koonce is a founding partner of kpb architects, and Prozeralik has been with the company since 1999. To-gether, they have nearly fi ve decades of experience in the industry. While

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Your Project, Our Responsibility. 24/7 Service

Page 10: February-2013-Alaska Business Monthly

INSIDE ALASKA BUSINESS Compiled by Mari Gallion

■ 10 www.akbizmag.com•Alaska Business Monthly•February2013

the fi rm plans to continue its work on large-scale, start-to-fi nish construction projects, the new leadership team hopes to expand their portfolio to represent the full gamut of architecture and de-sign work, including more remodeling and restructuring projects of small and large scale. Th e company brings all el-ements of design under one umbrella, providing client-centered guidance through planning and programming services, architecture, interior design and landscape architecture.

Central Environmental Inc.

Central Environmental Inc. has made a $46,500 in kind donation in

the form of asbestos abatement services to the Engine No. 557 Restoration Co., an Alaskan nonprofi t corporation es-tablished to restore to operating condi-tion one of the Alaska Railroads former steam locomotives. To facilitate the safe restoration of the steam locomotive, CEI’s professional abatement workers spent more than a week on this project. CEI removed the boiler insulation, pipe wraps and other miscellaneous asbes-tos containing materials. With the as-bestos removed and the engine cleaned, the hard working volunteers can re-sume restoration work.

Before the Parks Highway or Seward Highway existed, Locomotive #557 and others like it served the state transport-ing goods and people between the Ports of Seward, Whittier and Anchorage and the interior of Alaska. Engine No. 557 was built for the U.S. Army Transpor-tation Corps and arrived in Alaska in December 1944. It was retired in June

1963 and sold to a scrap dealer in Wash-ington State in 1964.

Arctic Information Technology Inc.

Doyon, Limited announces the acqui-sition of Arctic Information Technolo-gy Inc., an industry leader in providing information technology infrastructure and business solutions. Arctic IT is a Microsoft Gold Certifi ed Partner and is the recipient of numerous industry awards. Arctic IT’s portfolio of services includes implementation and support of enterprise resource planning and customer relationship management solutions, networking, infrastructure services and managed services.

Th e acquisition of Arctic IT, based in Anchorage, Alaska, aligns with Doyon’s strategy to diversify into technology-based companies. Th e combination of Arctic IT’s knowledge, experience and partner resources with Doyon’s exper-tise in government contracting creates the potential for growth.

Arctic IT will continue to operate un-der the same name as a wholly owned indirect-subsidiary of Doyon, Limited. Arctic IT will operate under the com-pany’s government contracting pillar, Doyon Government Group.

Silver Gulch

Passengers can now take Alaska-made microbrew to share with

friends and family in the Lower 48. Sil-ver Gulch, a brewery and retail outlet in Fox, has opened at Ted Stevens Anchor-age International Airport.

Located inside security in the South Terminal at the entrance to the C Con-course, the outlet allows customers to purchase growlers or six packs of beer to go, as well as off ering dine-in pizza and beer. Owned and operated by Glenn Brady, the project has been in the works for about a year.

Th e restaurant off ers a dining option post-security, and also allows passen-gers to take Alaska with them by of-fering packaged beer and other retail items to share once they’ve reached their destination.

Hatcher Pass

A 30-year-old dream has been made tangible with the opening of a

designed ski area at Hatcher Pass, the beginning step for a network of Olym-pic class trails that may one day draw international ski events such as Th e World Cup.

Th e new cross-country ski trails were designed by former Olympian Bill Spencer, and are one feature of what’s called “Th e Government Peak Recre-ation Area at Hatcher Pass.” Th e 3.5 miles of trails that cross over 13 bridg-es will also be used in summer for jog-ging and biking. In winter, snowshoe-ing and skijoring on one loop with a dog is also possible. On the east side of Government Peak, a downhill ski area is a future part of the plan. Addition-ally, on some 700 acres of the 7,860-acre unit, residential and commercial development is planned. Th e land sales will help fund more phases of the rec-reational development and will create homes with a view and trails at the front door, while adding to the Mata-nuksa-Susitna Borough’s tax base. R

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• General Contracting• Marine Infrastructure• Design Build

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View from the Top Compiled by Mari Gallion

Kelly Dyer, PresidentSpice Ratchet Mills LLC

INITIAL INSPIRATION: When I fi rst started Spice Ratchet, I worked with a Danish designer to promote his upright no-mess spice mill design. Back in 2007, there were very few mills on the American market equipped with ratcheting ce-ramic mechanisms capable of producing a large amount of ground spices or peppercorns. Spice mills are quite popular items in Europe. However, we learned that what may work in European markets doesn’t necessarily work in America. People were interested by the idea of a diff erent mill—but not enough to make a purchase. Th ere were many “classic” style mills already on the market that people were happy with, and the market was saturated with established vendors providing those classic models.

RATCHET UP A NOTCH: From that lack of success, we de-cided we needed to redefi ne our focus. Our products need to match the lifestyle and culture of the American market and serve more than one purpose. So then came our next prod-uct, Blossom Trivet, which won the Best Innovation Award in the Tabletop category at the International Home and House-wares Show.

WORK GLOBALLY: All of our products are made in either mainland China or Taiwan. Th ere is a stigma against prod-ucts made in China based on “quality” perceptions. However, I’m fortunate to have two brothers in the manufacturing business in both Taiwan and China, so I’m able to have a very close relationship with the quality control and production side of things.

QUALITY IS KEY: With family and friends in the region it’s easier to fi nd trustworthy and reliable producers. I pride my-self in our ability to create quality products. I take an active role in the quality assurance process from raw materials to fi nished products, and fl y to China and Taiwan several times each year to check-in on everything personally.

TEAM EFFORT: I’ve been working with several creative freelancers from Anchorage. Th ose creative local individuals have been helping Spice Ratchet in graphic design, photog-raphy, copy writing, web design and public relations. Also, the Anchorage Small Business Development Center has been quite supportive with information and training.

RECIPE FOR SUCCESS: I have been very fortunate to have a number of inspiring people in my career.

Without the team at Harold Imports led by Robert Laub, we would have never reached the level of success we’ve reached so quickly.

Without my brother ensuring product quality, we would have never accomplished the multiple innovative designs and product launches we’ve achieved.

Without my daughter, Josephine Dyer—fi guring out all the diff erent ways to use Blossom Trivet and fi lming dem-onstration videos that spark boundless creativity for our us-ers—this new multiple usage concept for our trivet would have taken a lot longer to introduce to the U.S. market. R

View from the Top Compiled by Mari Gallion

Kelly Dyer, PresidentKelly Dyer, PresidentSpice Ratchet Mills LLCSpice Ratchet Mills LLC

Born in Taiwan, Kelly Dyer had moved around the world several times—from Asia, to Europe, to

other parts of America—before coming to Alaska in 2001. After a two-year stint in Texas in 2006, Dyer found herself yearning for Alaska and decided to return, establishing her permanent home in the 49th state. Dyer has lived in Alaska for a grand total of nine years.

As a stay-at-home mom with various administrative and logistics related jobs, Dyer was always paying attention to things that could make life easier and fun for busy homemakers like herself. Through a combination of experience, innovation and connections, Spice Ratchet Mills was born.

© 2013 Chris Arend

Page 13: February-2013-Alaska Business Monthly

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special section World Trade

Q & A with Greg WolfQ & A with Greg WolfQ & A with Greg WolfQ & A with Greg WolfQ & A with Greg WolfQ & A with Greg WolfQ: Starting with the big picture, why

is international trade important to Alaska and what kind of impact does it have on the economy?

A: When we talk about international trade for Alaska we are almost

always referring to exports. In other words, Alaska commodities, goods and services sold to customers in overseas markets. Alaska’s exports now hover close to $5 billion on an annual basis, having reached a record high of $5.2 bil-lion in 2011. Export revenues represent new money coming into our economy, creating much needed diversifi cation and sustaining thousands of jobs. A few years ago, we commissioned Northern Economics, a leading Anchorage-based consulting fi rm, to measure the impact that trade has on the Alaska economy. What they found is impressive: in addi-tion to the export revenues themselves, that now are in the $5 billion range, another $2 billion is generated by these export activities. At these levels, exports represent about 10 percent of Alaska’s Gross State Product, a measure used to gauge the size of a state’s economy, and based on exports as a percentage of GSP, Alaska ranks 14th among all states. If you consider exports in relation to the size of our population, Alaska is fourth in the country. Relatively speaking, trade is more important to Alaskans than it is to people living in other states. Here, there is a very good chance that your paycheck, or your neighbor’s, results from trade.

Q: You mentioned jobs. How many Alaska jobs are supported by in-

ternational trade?

A: In the study conducted by North-ern Economics, one of the things

they looked at, of course, is the number of jobs that are created or sustained as a result of export operations. Th ey deter-mined that there are about 15,000 jobs, statewide, that fl ow directly from export

activities. In addition, there are another 10,000 indirect or induced jobs generated by exports. Taken together, then, trade accounts for about 25,000 jobs in Alaska. I think that is signifi cant. It should also be noted that jobs tied to exports pay more than jobs connected solely to the domestic economy. Th e U.S. Census Bu-reau did a study about this several years ago and reported that export-related jobs typically pay about 15 to 17 percent more versus jobs found elsewhere in the econ-omy. One doesn’t have to look around too much in Alaska to fi nd ample evidence of this fi nding. Indeed, some of the highest paying jobs in the state are tied to trade.

Q: Why is the export business im-portant to Alaska and Alaskans?

A: Well, we would certainly have a much smaller economic base and

fewer high paying jobs. Without ques-tion, some of the biggest players in our economy would not be active in Alaska were it not for the existence of signifi cant export markets for their production. We must remember that Alaska itself is a very small market. With a population of some 730,000 it could be, literally, a

suburb of many major cities around the world. In order to attract resource in-dustries to Alaska, exports markets are a necessity.

For example, so far the only natural gas to leave Alaska has been the LNG exports to Japan. Th e only coal to leave the state has been overseas to customers in markets like Korea and Chile. Almost all of the minerals and precious metals are destined for overseas customers and about 50 percent of Alaska’s annual sea-food catch is sold to buyers overseas.

Th us, export markets are very important to Alaska. In many cases, the most viable and attractive markets for Alaska are over-seas, primarily in Asia. In a typical year, around 70 percent of the state’s exports are destined for Asian markets. Th ere are several reasons for this concentration: fi rst, many nations in the region are resource-poor while Alaska is resource-rich; second, Alaska is a neighbor in the Pacifi c Rim and there are well-established shipping routes by sea and air; third, and oft en overlooked, is the political stability that Alaska off ers as part of the United States. Th is is im-portant—indeed, a comfort—to countries that rely upon imports for such critical re-sources as energy, minerals and food.

Of course, Canada is long-standing major customer of Alaska exports and several European countries, including Germany, Spain and Switzerland are also important trading partners. How-ever, it is the large Asian markets that dominate the state’s export picture.

Q: Where is Alaska’s biggest export market?

A: Th e headline story for Alaska’s international trade economy has

certainly been the dramatic growth of China as an export market. In what I’ve described as the “Dragon Decade,” during the past 10 years Alaska’s exports to the Middle Kingdom have soared from $102 million to $1.4 billion. Th at’s more than a 10-fold increase in just a decade. Alaska

Greg WolfGreg Wolf

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Liner Shipping • Worldwide

When Shell Oil needed ice-class oil spill response barges to work in some of the world’s most extreme working environments – the Beaufort and Chukchi Seas – they called Crowley. Our management team engineered, constructed and outfitted the three barges that will support this important off-shore operation.

Shell Project: On time. On budget. Turnkey. You can count on Crowley.

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■ 16 www.akbizmag.com•Alaska Business Monthly•February2013

has never had a major trade market grow so significantly and in such a short pe-riod of time. It’s really unprecedented. In 2011, China became Alaska’s largest ex-port market, a distinction held for many decades by Japan, and was again in 2012. China buys a variety of Alaska exports, led by seafood, but also including minerals, forest products, precious metals and fish meal. There are, of course, concerns about the Chinese economy and its ability to sustain what has often been double-digit annual growth during the past several decades. Frankly, I believe these concerns are somewhat overblown and, coming from some critics, may be more wishful thinking than economic reality. While the Chinese economic juggernaut may experi-ence slowdowns or stall from time to time, it is likely to enjoy high single-digit growth for decades to come. That’s good news for Alaska since they need and are active buy-ers of the natural resources and seafood Alaska has in abundance.

Q: Can you give our readers an idea of the number and size of busi-

nesses exporting from Alaska to the world market?

A: According to the most recent in-formation available from the U.S.

Department of Commerce, there are ap-proximately 300 companies that export from Alaska and, of these, 75 percent are considered to be small or medium-sized businesses. That being said, clear-ly it is the very large companies, some of them multinationals, which produce the lion’s share of exports. These large firms generate about 80 percent of Alas-ka’s export volume.

Q: Do opportunities exist for expanded exports from Alaska?

A: Absolutely. While it is sometimes easy to be pessimistic about our

prospects in the short-term, I am really quite optimistic about our long-term fu-ture. Five billion dollars annually in ex-ports is significant, but in many ways it is only scratching the surface of what is possible, if Alaska is allowed to responsi-bly develop our vast natural resources. If we can muster the will and the approvals to move some of the major projects that are currently on the drawing boards to actual construction and, ultimately, to

the production phase, we’ll look back at $5 billion as being a small number. When you consider: we haven’t even begun to export any of our North Slope natural gas, for which there are large and growing markets overseas; while Alaska possesses as much as 20 percent of the world’s coal resources, today we have only one active mine; our mineral (such as zinc and lead) and precious metal (like gold and silver) deposits are among the top 10 in the world and opportunities to develop new mines and expand existing ones are multifold; and, we are just learning how much of the so-called rare earth elements, those met-als critical for modern technologies, that Alaska may discover under its feet. These are just several examples of very real op-portunities that can fuel our economic growth and provide gainful employment for current and future generations.

Q: What does the World Trade Cen-ter Alaska do to help Alaska busi-

nesses and promote international trade?

A: The Center works directly with Alaska companies to identify and

pursue overseas business opportunities. Mainly, our work is with small and medi-um-sized companies that often do not have the experience or manpower to research the various markets and find customers or partners to do business with. That’s where we come in: We become their extended staff, if you will, and do a lot of the leg work for them.

Some of these companies are “new to export,” meaning that they will be selling to overseas customers for the first time. Others will have some overseas custom-ers, say in Japan, but are now looking to expand their sales to China, for example. In this case, they fall into the category of “new to market.” We also, of course, have members who are not directly involved with exports but who provide important services to those companies that are ex-porting. Examples would include freight forwarders, customs brokers, law firms, banks and transportation companies.

We normally work with companies that are export ready, meaning they already have a product or service to export and can adequately respond to customer orders.

In addition to our one-on-one work with individual firms, we organize and conduct trade missions, conferences,

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www.akbizmag.com•Alaska Business Monthly•February2013 17 ■

tently growing at high single-digit rates, and the growing middle class has higher consumer expectations. As they continue to grow and modernize, this could repre-sent the next big opportunity for Alaska.

Some of our work to get to know this market better and for India to know Alaska better, has been the Alaska-In-dia Business Conference we conducted in Anchorage in 2006 and a trade mis-sion of private and public sector execu-tives to New Delhi in 2010.

Q: What’s the bottom line on the export business in Alaska?

A: I’ve been in this business for 25 years and this allows me some perspec-

tive. In many ways, there are now more things working in our favor than not. I’m not suggesting that progress will be easy nor without those who oppose any progress at all! But, many of the stars are aligned for Alaska to move forward. It will take focus, determination and a lot of work. We have so much of what the world needs. Th is can be Alaska’s season in the sun. R

seminars and other international busi-ness events that are attended by thou-sands of Alaskans each year. Th rough these eff orts we are able to provide Alas-kans with up-to-date information and analysis about business opportunities, and inform potential customers over-seas about Alaska’s export capabilities.

We are also fortunate to have strong, long-standing partnerships with the State of Alaska, the U.S. Department of Commerce, and the University of Alaska that enable us to carry out our mission.

Q: What global trends are working in Alaska’s favor? What new mar-

kets should Alaska businesses be paying attention to?

A:I believe that Alaska has and will benefi t from three global mega-

trends that I refer to as “Th e Th ree Rights.” Our geographic position on the Pacifi c Rim puts us close to the fastest growing economies in the world. It is also home to some of the largest and fastest growing populations. Th is proximity to growth puts Alaska in the “Right Place.” We are living in a time when people in these emerging markets are moving up the economic ladder and, in record num-bers, are both migrating from the rural areas to the cities and becoming consum-ers, really for the fi rst time. Th is puts us at the “Right Time” in history to take advantage of the opportunities fl owing from this rising tide of new wealth. As an exporter of natural resources, we have the “Right Commodities” to respond to the needs of this economic growth and modernization occurring in Asia and other parts of the world.

We always keep an eye out for new market opportunities for Alaska. One part of this approach is to go where the growth is. We look for markets that are on a long-term upswing, have im-port needs that match up with Alaska’s export capabilities, and where Alaska companies can successfully compete.

We are currently researching the Southeast Asia region and a couple of nearby markets that could hold signifi -cant potential for us, including India. At present, Alaska does very little trade with India, but the country, much like China, is on a rapid growth trajectory. Like China, India also has more than 1 billion people. Th eir economy is consis-

Greg Wolf is the Executive Director for World Trade Center Alaska.

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■ 18 www.akbizmag.com•Alaska Business Monthly•February2013

special section World Trade

AMBASSADOR CIRCLE AWARD1997 - John McClellan

1998 - Brian Brundin1999 - Pete Nelson2000 - Ben Barerra2002 - Dennis Bird

2006 - Joseph Henri

431 West Seventh Avenue, Suite 108, Anchorage, Alaska 99501-3511, USA Phone 907.278.7233 Fax 907.278.2982

email [email protected] http://www.wtcak.org

AMBASSADOR CIRCLE AWARD1997 - John McClellan

1998 - Brian Brundin1999 - Pete Nelson2000 - Ben Barerra2002 - Dennis Bird

2006 - Joseph Henri

431 West Seventh Avenue, Suite 108, Anchorage, Alaska 99501-3511, USA Phone 907.278.7233 Fax 907.278.2982

email [email protected] http://www.wtcak.org

Dear Alaskan Executive:

I am proud to serve as the chairman of World Trade Center Alaska board of directors during 2013, the organization’s 26th year. It’s an exciting time to be in-volved with the Center. Alaska’s international trade economy continues to grow and the state’s exports are hovering in the $5 billion range. Th ese export activi-ties support thousands of high-paying jobs, generate signifi cant investments in our natural resource industries, and help to diversify the state’s economic base.

Since it was founded, WTCAK has worked with its members and community partners to explore and pursue international trade opportunities. On a daily ba-sis, we are involved with companies from across the state, small and large, that share an interest in building their businesses by exporting products or services to customers overseas. In addition, companies that provide services to the ex-porting community, such as banks, freight forwarders, law fi rms and customs brokers, also benefi t from Trade Center membership.

Over the years, we have helped introduce Alaskans to new markets, such the Russian Far East and, more recently, to China—Alaska’s fastest growing, and now largest, trading partner. With an eye toward the future, the Center has re-cently made initial forays into high-potential new markets for Alaska, including India and Singapore, among others.

To carry out our mission of assisting Alaskans to succeed in the global marketplace, WTCAK has fostered a skilled staff and important partnerships. Led by Greg Wolf, our long-time executive director, the hard-working staff at WTCAK has years of international experience, passion and a strong commitment to serve our membership at a very high level. We have also forged strategic partnerships with the State of Alaska, the U.S. Department of Commerce, and the University of Alaska. In a unique and eff ective way, these relationships bring together the resources of the private and public sectors to bring focus and coordination to Alaska trade promotion.

We are proud of our past and confi dent of our future. We look forward to more successes in the years ahead and I encourage you to join with us as we work to build a strong international trade economy for Alaska.

Sincerely,

Rick PollockChairman, Board of DirectorsWorld Trade Center Alaska

Rick Pollock

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CAMBODIA

MALAYSIA

THAILANDTHAILAND

MYANMARMYANMAR

SINGAPORE

LAOS

INDONESIA

VIETNAM

PHILIPPINES

BRUNEI DARUSSALAM

special section World Trade

Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia Southeast Asia New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New Markets—New New New New New New New New New New New New New New New New New New New New Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Customers Why ASEAN, why now?

BY ALEX SALOV

Southeast Asian countries are sometimes more familiar to ad-venture travelers than to busi-

ness people—but they are fi lled with opportunities for Alaskan companies to do business. Ten of these countries are members of the Association of Southeast Asian Nations—a political and economic union of these nations. Th e members of ASEAN are: Brunei, Cambodia, Indonesia, Laos, Malaysia,

Myanmar (Burma), Philippines, Singa-pore, Th ailand and Vietnam.

With a total population of around 600 million and steady GDP growth of 5 percent on average in 2011 (compared to 3 percent or less average growth of de-veloped countries worldwide), ASEAN countries have become one of the most important growing markets for the Unit-ed States. U.S. exports to ASEAN reached $76.24 billion in 2011 and, if considering

ASEAN as a single country, it would be the fourth largest U.S. trading partner aft er Canada, China and Mexico.

Several ASEAN countries follow an export-led growth strategy with which they identify and focus on specifi c com-modities for export. To do that, they se-lect commodities that can be produced cheaply and with a competitive advan-tage. For example, Indonesia is a large exporter of minerals and the world’s

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leading producer and exporter of ther-mal coal (used for power generation). It currently supplies half of China’s coal imports. Th ailand is becoming a center for automobile manufacturing in South-east Asia and is among the top ten auto-mobile exporting nations in the world.

Overarching Trends China is an active player in the ASEAN region. China and ASEAN established a free trade agreement in 2010: the ASEAN-China Free Trade Area—the third largest free trade bloc in the world aft er the Euro-pean Union and NAFTA. In 2012, ASEAN overtook Japan to become China’s third largest trading partner aft er the EU and the United States. China-ASEAN trade increased 24 percent to $362.3 billion in 2011 and is expected to exceed $500 bil-lion by 2015. According to China Daily, Chinese offi cials expect the ASEAN re-gion to become China’s top trading part-ner within the next several years.

Members of ASEAN are very diverse in their political, economic and cultural as-pects; however, there are several features that most of them share: relatively young populations, urbanization, growing

middle class, rapid industrialization and strong demand for infrastructure. Th ese overarching trends make ASEAN mem-bers attractive export markets for Alaska.

Let’s focus on these trends. As men-tioned above, the total population of ASEAN countries is about 600 million people. Indonesia is the world’s fourth most populous nation (248.5 million people) and the world’s third largest de-mocracy. Vietnam has a population of 90 million people of which 25% are 14 years old or younger. Th is young age group is representative of most countries in the region. When paired with available ur-ban employment opportunities, this age group will have disposable income and will attract new consumer goods and services. Since American products are typically considered popular in ASEAN markets, there may be opportunities for Alaskan companies to meet some of this growing demand.

GDP GrowthGDP per capita in Singapore and Bru-nei is already on par with the world’s leading nations. Meanwhile, in other countries of the region the growth of GDP per capita is signifi cant. In 2010, the region’s average GDP per capita was 322 percent higher than in 1998. Th is increase is only second to China (536 percent). By comparison, the United States 2010 GDP per capita was 148 percent of the 1998 fi gures. It may be unfair to compare the U.S. growth numbers to these countries directly because the U.S. economy is so large. However, in order to attain the current growth rates, ASEAN na-tions have been investing heavily in infrastructure and industry develop-ment as well as growing their export capabilities. Th e result of these eff orts is their growing middle class with higher disposable income, education

The total population of ASEAN countries is about 600 million people. Indonesia is the world’s fourth most populous nation (248.5 million people) and the world’s third largest democracy.

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and standard of living. According to the U.S. Department of Commerce, 60 million Indonesians are projected to move up into the middle class in the next 10 years. Another current trend is that governments in the region are beginning to drive their economy with domestic spending rather than relying solely on exports.

Several ASEAN countries position themselves in a somewhat similar way to Anchorage—a transportation cross-roads of the world. Since ancient times, the Strait of Malacca, which connects the shipping lanes of the Indian and Pacific oceans, has been a vital trans-Asian trade route. Indonesia, Malaysia, Singapore and Vietnam, as well as oth-er countries in the region, are strategi-cally located between Australia, South America and Northeast Asia. Singa-pore, for example, is a world renowned logistics hub: it is one of the busiest container ports in the world, the busi-

est transshipment port of the world, and one of the major cargo airports in the world. Approximately 60 percent of all exports to Singapore are re-exported to the ASEAN region. Other countries have ambitious infrastructure projects being developed both to take advantage of their locations and to prevent falling behind the region-wide industrializa-tion that is taking place.

Consider the following examples:

■Vietnam Long Thanh International Airport is designed to serve 100 mil-lion passengers annually when con-struction is finished.

■Malaysia-SingaporeAn agreement is expected this year on the proposed Malaysia-Singapore Rapid Transit System, which would add a link be-tween the two nations via either an above ground or undersea tunnel route across the Johor Strait. The link is part of a larger plan to link the two

countries via high-speed rail.■Indonesia in addition to expanding

the country’s main international airport in Jakarta (which is han-dling far more than double its origi-nal design capacity), Indonesia will be constructing Karawang Interna-tional Airport, which is expected to have the capacity for up to 70 mil-lion passengers per year. In addition to Karawang International, there are about 15 new airports on Indo-nesia’s drawing board as part of its Expansion of Indonesian Economic Development program. Indonesia is planning on spending $45 billion in 2012 alone on multiple infrastruc-ture projects with a combination of public-private partnerships. These projects would represent about 4.5% of Indonesia’s GDP. The government plan extends to 2025 and could total up to $450 billion in infrastructure investment.

Last year, ASEAN assembled $485 million as part of the ASEAN Infrastructure Fund to help finance major infrastructure projects. The fund plans to finance $13 billion in infrastructure spending by 2020.

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has pioneered trade development work to open Southeast Asian opportunities for Alaska businesses. We conducted a conference on business opportunities in India and Singapore in 2006 and the fi rst Alaska trade mission to Southeast Asia in 2010. In addition, WTCAK, through its extensive network within the U.S. Department of Commerce and World Trade Center Association, produces market reports, generates business leads for our members and Alaska companies interested in doing business in South-east Asia. Contact World Trade Center Alaska | Alaska U.S. Export Assistance

Center if you are interested in further exploring new opportunities in this rap-idly developing region. R

Alex Salov is the Business Operations Manager at World Trade Center Alaska and has been working at the Center since 2004. He has a master’s degree in global supply chain management from University of Alaska Anchorage. Also, since 2005 he works as an adjunct instructor of Japanese Language at UAA.

■The Trans-Asian Railway NetworkTARN has been growing in multiple phases since the 1960s with the long-term goal of linking together South-east Asia in a massive rail network. It is divided into four geographic sections that will ultimately be con-nected through Iran and Pakistan to Turkey. Th e completed rail network would connect Northern Europe to Singapore. Currently the TARN has more than 65,000 miles of intercon-nected rail in operation. Twenty-three nations have signed the United Nations Intergovernmental Agree-ment on the Trans-Asian Railway, which lays out a framework for com-pletion of the project. According to the U.N., constructing the remaining interconnecting links will require an estimated $25 billion.

Financing InfrastructureLast year, ASEAN assembled $485 mil-lion as part of the ASEAN Infrastructure Fund to help fi nance major infrastruc-ture projects. Th e fund plans to fi nance $13 billion in infrastructure spending by 2020. Th is is a fraction of the money it conceives of mobilizing in the coming years. According to the Asian Develop-ment Bank, which administers the fund, over the next decade ASEAN nations will require approximately $60 billion a year to fully address the region’s infra-structure needs. With these substantial sums in the air and the possibilities for massive global investment in Southeast Asian infrastructure, Alaska companies should keep a close eye on the ASEAN region not only for opportunities in design and construction, but also sell-ing goods and services in the growing economies that will benefi t from these projects.

Currently, Alaska companies do very little business with ASEAN countries. Th e secular trends previously discussed make ASEAN countries good potential customers for Alaska businesses. In 2011, China became Alaska’s largest trading partner surpassing Japan. Th e recent growth of China as a market for Alaska’s products and services was based on sim-ilar trends we are seeing in ASEAN now. As we have seen with China, Alaska can expect a signifi cant growth in trade with ASEAN in the next decade.

Since 2006, World Trade Center Alaska

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special section World Trade

Trade MissionsTrade missions are an important

element of any successful trade promotion eff ort. But, what ex-

actly is a trade mission?Businessdictionary.com provides

this defi nition:“Coordinated overseas visit by a

group of business executives to meet potential buyers or agents, usually aft er market research by a chamber of com-merce, industry or trade association, or the visitors’ embassy.”

So, a trade mission is more than just a group of people making a trip to a for-eign country. It is travel with the intent of promoting trade opportunities or, in some cases, involves the participating companies meeting with potential cus-tomers in the country being visited by the mission. Th eir purpose may be to introduce their company and its prod-uct or services or, in some cases, it may be to conduct business with a new or existing customer.

Trade missions are typically orga-nized by either a private sector trade organization, as in the case of World

Trade Center Alaska, or a government entity, such as state or local govern-ment. At the state-level, for example, it may be a mission led by the Gover-nor or a department commissioner. At the federal level, the Secretary of Commerce oft en leads trade missions abroad that are industry focused.

Mission participants frequently in-clude both private sector executives and public sector offi cials. Both can play an important role in the successful con-duct of a mission. While the business executives have their own products or services to sell, the policy makers can deliver the message about a positive business environment and highlight particular opportunities or legislation that supports trade activities. Th e pres-ence of government offi cials is espe-cially valuable in certain parts of world. Asia comes to mind, for example, where governments play a more direct role in business. Indeed, in some cases, major companies in those countries may be wholly or partially owned by the gov-ernment.

Trade missions can be conducted in two directions: outbound or inbound. Th e fi rst would be, for example, a group of Alaska companies visiting China on a trade mission. In other words, out-bound means from Alaska to a foreign country. An inbound mission repre-sents the reverse scenario: a group of companies or trade offi cials visiting Alaska from a foreign country. Some-times they make the visit at the invita-tion of an entity in Alaska or they are making the visit on their own initiative.

Missions can be either vertical or hor-izontal. A vertical mission is one where all of the participants are involved with a particular industry. For example, a mission consisting of just seafood com-panies. In contrast, a horizontal mis-sion will include participants from a variety of industries. In this case, you may have several mining companies, a couple of seafood companies, and a construction fi rm, and so on.

World Trade Center Alaska has a long history, and much experience, in organizing trade missions. In the past

Gathering here or there to m ake things happen

BY GREG WOLF

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several years, the Center has led groups to various parts of the world in pursuit of trade expansion. Th ese include three trade missions to China, a mission to Canada to learn about business oppor-tunities associated with development of the oil sands in Alberta, and a mission to India to introduce Alaska export ca-pabilities and to learn more about In-dia’s import needs. During the past de-cade, Center-conducted missions have also promoted Alaska trade opportuni-ties in Korea, Taiwan, Hong Kong and Singapore. A mission to Asia is planned for fall 2013.

Th ere are a number of benefi ts to be gained by participating in a trade mis-sion. While modern telecommunica-tions enables one to research global markets via the Internet and commu-nicate with potential customers via email, this does not replace the need, or reduce the importance, of face-to-face meetings. Nor, does it diminish the ad-vantage of having fi rst-hand experience in a market where you hope to do busi-ness. Experience also informs us that a preconceived view of a particular econ-omy or market may not always be what it is in actuality. Th is is another reason that a “boots-on-the ground” strategy is part of an eff ective overall trade pro-motion eff ort.

Export operations now bring more than $5 billion into the Alaskan econ-omy and are a major source of employ-ment for people across the state. As trade continues to fl ourish, we antici-pate that both inbound and outbound trade missions will occur in greater fre-quency. Th ese will serve the very useful function of introducing what Alaska has to off er the world in terms of com-modities, products and services—and, likewise benefi cial, enable Alaskans to gain a fi rst-hand perspective of op-portunities around the world and the one-on-one contacts necessary to make trade happen. R

Greg Wolf is the Executive Director for World Trade Center Alaska.

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special section World Trade

Trans-Pacific PartnershipTrans-Pacific PartnershipTrans-Pacific PartnershipFree trade agreement would dwarf NAFTA

BY AARON WEDDLE

The Trans-Pacifi c Partnership is an Asia-Pacifi c regional free trade agreement currently under ne-

gotiation between the United States and about a dozen countries surrounding the Pacifi c Ocean. If completed, this trade bloc would dwarf NAFTA in value of U.S. in-ternational trade. For Alaskans, this could be an important development because Alaska typically does about 70 percent of its annual overseas exports to Asia.

Th e TPP is designed to liberalize trade and investment among its partner na-tions, which currently consist of: Aus-tralia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam. It is anticipated that additional Asia-Pacifi c nations will join in once the agreement is fi nalized.

Japan and ChinaTwo principal Asian economies are not part of TPP negotiations: Japan and China.

Japan is undergoing strong domestic political debate on whether to join the TPP. Th e greatest opposition concerns protection of its heavily subsidized—and politically infl uential—agricultural sector. In the past, this tension has led Japan to require agricultural exceptions in its free trade agreements. Former Prime Minister Yoshihiko Noda was in favor of joining the TPP and had hoped to fi nalize Japan’s negotiations by the end of 2012. Japan was on track to join TPP negotiations but, in part because of the economic eff ects of the March 2011 earthquake, decided to delay member-ship. Japan recently held elections in which Noda’s Democratic Party of Japan lost power to the Liberal Democratic Party headed by Prime Minister Shinszo Abe. It remains to be seen whether Abe will have the domestic political support needed to move forward with joining the TPP. His support may rest on whether he can negotiate tariff exceptions to protect Japan’s agricultural sector. Japan is also

negotiating a trilateral free trade agree-ment with China and South Korea; how-ever, the escalating tensions with China over disputed Senkaku islands may shift Japanese political support toward a U.S. led trade agreement and away from one involving China.

China has thus far not been included in TPP negotiations. Th ere are a num-ber of reasons for China’s exclusion but several are worth noting here. China is concerned that some provisions of the agreement would adversely aff ect its state-owned companies, and that the TPP is part of U.S. eff orts to undermine China’s regional infl uence. Some Chi-nese analysts argue that the true U.S. motives behind promoting the TPP are to contain China’s growing economic in-fl uence in Asia and to create a U.S. dom-inated trade bloc that would compete with the Association of Southeast Asian Nations. Further complicating the mat-ter, China has its own free trade agree-ment with ASEAN called the ASEAN-China Free Trade Agreement, which is currently the third largest trade bloc in the world, behind the EU and NAFTA. A strong TPP trade agreement could give member countries, which make similar products to China, an economic com-petitive advantage in the region.

Evolved AgreementTh e TPP evolved from a series of free trade agreements among four Asia-Pa-cifi c nations—New Zealand, Chile, Sin-gapore, and Brunei—that entered into an earlier agreement in 2005 known as the Trans-Pacifi c Strategic Economic

Partnership. In 2008, President George W. Bush announced U.S. intentions to join TPP negotiations. U.S. participa-tion was initiated in part due to the col-lapse of the World Trade Organization Doha Round that year. In 2009, Presi-dent Barak Obama affi rmed U.S. inten-tions to continue these negotiations.

According to the President’s Offi ce of the Trade Representative: “With the addition of Mexico and Canada, the TPP countries will be by far the larg-est export market for the United States. U.S. goods exports to the broader Asia-Pacifi c totaled $895 billion in 2011, rep-resenting 60 percent of total U.S. goods exports. U.S. Exports of agricultural products to the region totaled $98 bil-lion in 2011, 72 percent of total U.S. ag-ricultural exports. U.S. private services exports totaled $205 billion in 2001 (latest data available), 39 percent of to-tal U.S. private services exports to the world. By comparison, NAFTA coun-tries (Canada and Mexico) were the top two purchasers of U.S. exports in 2010. (Canada $248.2 billion and Mexico $163.3 billion.)”

From the perspective of U.S. ex-ports, the TPP is likely to have more of a strategic and political importance rather than producing a dramatic ex-pansion of trade. Th e U.S. already has bilateral free trade agreements between Australia, Canada, Chile, Mexico and Singapore. However, U.S. involvement in the TPP adds signifi cant diplomatic weight to the success of negotiations and in infl uencing its fi nal architecture. American participation is also a signal

At this point in time, it is unclear how the TPP will ultimately affect Alaska, but WTCAK will keep Alaskans up to date as negotiations unfold. Some of Alaska’s top trade partners will likely be impacted by the TPP.

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of the Obama Administration’s eff orts to demonstrate a renewed emphasis on Asian aff airs. In 2009, during a speech in Tokyo, President Barack Obama stated that: “Th e growth of multilateral organizations can advance the security and prosperity of this region. I know that the United States has been disen-gaged from these organizations in re-cent years. So let me be clear: those days have passed. As an Asia-Pacifi c nation, the United States expects to be involved in the discussions that shape the future of this region and to participate fully in appropriate organizations as they are established and evolve.”

Easing Political ResitanceTh e fact that the U.S. already has free trade agreements with fi ve of the mem-ber states might ease political resistance in the U.S. Congress where a majority support of both houses will be neces-sary for fi nal passage. Unlike a treaty, which requires a two-thirds approval of the U.S. Senate, Congress permits entry into a trade agreement negotiated by the president with a simple majority vote of both the House and Senate. One crucial element to passage of the TPP is Trade Promotion Authority, also known as Fast Track. It allows a trade agreement to be voted on quickly without amend-ments that might otherwise slow down or stall its fi nal passage. In exchange, Congress is given an expanded role in the president’s trade negotiations. Th is authority expired in 2007 and has not yet been renewed.

Th e TPP’s draft language is cur-rently being negotiated confi dentially by member states, which held the 15th round of talks in Auckland, New Zea-land last December. Th e next round of negotiations will take place March of this year in Singapore. From informa-tion that is publicly available, it appears that the TPP both dramatically reduces duties and tariff s, as well as establishes among its members standards of: rules of origin, customs procedures, govern-ment procurement, intellectual proper-ty, labor and environmental standards, and investment and fi nancial services.

While the details of these provisions are in fl ux, the fi nal product will likely have a signifi cant impact on the econo-mies of some member states. Much of the controversy over TPP has to do with the

investment and fi nancial services por-tion of the agreement. For example, the TPP will create a framework by which a corporation can seek economic redress from a foreign government by appealing to a TPP member tribunal rather than suing within a national court.

Impact on AlaskaAt this point in time, it is unclear how the TPP will ultimately aff ect Alaska, but WTCAK will keep Alaskans up to date as negotiations unfold. Some of Alaska’s top trade partners will likely be impacted by the TPP. As Alaska con-templates liquefi ed natural gas exports to Asia, one issue merits attention. Ap-plications for LNG exports require ap-proval by the Department of Energy. Under federal law, licenses for LNG ex-ports to countries that share a free trade agreement with the U.S. go through an expedited process. Th is could have an impact on future eff orts to export Alas-ka LNG to Japan and other countries that become party to the TPP.

Our current focus on emerging mar-kets in Asia parallels the development of the TPP. We have been closely watch-ing Southeast Asian nations such as Singapore, Malaysia and Vietnam. In 2010, WTCAK organized and conduct-ed Alaska’s fi rst trade mission to the region, which included a stop in Sin-gapore. We will continue our work to identify opportunities as they emerge as a result of TPP negotiations. Sev-eral negotiating nations share common development trends including rapid urbanization, substantial infrastruc-ture expansion and a growing middle class. We foresee an increased demand for Alaskan resources and expertise as these development trends in the region continue to rise. R

Aaron Weddle is a Business Development Consultant to World Trade Center Alaska. He has a Master of Science in

Global Supply Chain Management from the University of Alaska Anchorage.

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special section World Trade

All the Right StuffAll the Right StuffAll the Right StuffAll the Right StuffAll the Right StuffAll the Right StuffAll the Right StuffAll the Right StuffAll the Right Stuff

Four ways Alaska is primed for export success

BY GREG WOLF

Alaska is in something of a “sweet spot” these days as we ben-efi t from what I call the “Th ree

Rights” of export success: We are in the Right Place, at the Right Time, with the Right Commodities.

Alaska has always been blessed by its geographic location. Our strategic location on the Pacifi c Rim has placed us along the “great circle” route for marine shipping between Asia and North America.

Location has also enabled Anchorage to become one of the most important air cargo hubs in the world, poised, as it is, equidistance between Asia, Europe and North America. Add to this, we are neighbors on the Pacifi c Rim with some of the world’s fastest growing econo-mies and most rapidly growing popu-lations. All of this puts us at the Right Place on the map.

Political and economic transforma-

tion during the past several decades has resulted in formerly centrally planned economies becoming more or less free market in nature, in some cases, now allowing private ownership of property, companies and resources. With this has come the establishment of commercial laws and recourse. Some countries are now permitting, if not encouraging, for-eign direct investment in their resources and industries. At the same time, major Asian countries with huge currency re-serves are scouring the world’s natural resource jurisdictions to secure vital sup-plies and, increasingly, to also invest in the projects that produce these supplies.

Asian DiasporaEconomic liberalization and moderniza-tion has led to the hundreds of millions of people migrating from the rural areas of their countries to the major cities, at-

tracted by jobs and other opportunities to raise their standard of living. Consider China and India, two Asian giants who are leading the wave of urban expansion: According to McKinsey and Company, by 2025, China will add 400 million people to its urban population and India will see 215 million new residents to its cities. Th is mass movement of people from the coun-tryside to the cities is unprecedented. Th e same report notes that never before in history have two of the largest nations (in terms of population) urbanized at the same time, and at such a rapid pace.

Th ese developments have lift ed many people out of poverty and, in the pro-cess, created billions of new consum-ers. Brookings Institution reports that between 2005 and 2010, sustained eco-nomic growth in emerging markets around the world has enabled nearly half a billion people to rise from poverty lev-

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reduced transit times and improved ac-cess to otherwise isolated locations.

We also heard commercial perspec-tives from government offi cials, includ-ing representatives from Alaska, Cana-da and Russia. Th e conference was well attended, and there was active dialogue between speakers and attendees. While tempered with the understanding that commercial development of the Arctic will certainly not occur overnight, there was clearly a sense of excitement about the possibilities and the future outlook.

It may turn out then that Alaska will have not three but four “Rights”

that drive our economic development and export growth. Th e ability to ac-cess our treasure trove of natural re-sources, and move them from here to customers around the world, will be further enhanced by shipping routes, traffi c and infrastructure resulting from development in the Arctic. So, we may need to add the fourth Right: we (and now the world) are heading North, the Right Direction! R

els. Th ey note that never before have so many people been lift ed out of poverty in such a brief period of time. Th e simulta-neous rural to urban migration, coupled with continuing economic growth and rising standards of living, is helping to drive staggering demand for the natu-ral resources that Alaska sells. Th is puts Alaska at the Right Time in history.

Helping Develop World Economies

Home to world-class reserves of natural resources, including energy, minerals, metals, forest products and seafood, Alas-ka has what so much of the world needs to fuel their economic expansion and to feed their growing populations. What Alaska has to off er the world are what I consider the building blocks of economic develop-ment: energy to generate power, minerals and metals for industrial production, for-est products for construction and manu-facturing, seafood to provide sustenance to people. In other words, we are provid-ing the necessities for modern life, rather than the latest technological gadget. So, we are selling the Right Commodities.

Th ese “Th ree Rights” help to explain the strength and growth of Alaska’s exports to overseas markets. In 2011, Alaska exports reached $5.2 billion, a new all-time high, coming off the pre-vious record of $4.2 billion set in 2010.

Unique PositionLooking to the future, geography may again prove to be a blessing for Alaska. I’m referring now to the commercial develop-ment of the Arctic. As America’s Arctic state, we are uniquely positioned to benefi t from opportunities that will arise from in-creased shipping along the Northern Sea Route as well as the development of roads, railroads and ports that will enable here-tofore “stranded” resources to be devel-oped and transported from source to port to customer in an effi cient manner.

Th ese were some of the ideas pre-sented and discussed at the fi rst Arctic Ambitions conference in Anchorage last May. Th e event was co-organized by World Trade Center Alaska and the Institute of the North. Shipping compa-nies from Norway, Finland and Russia made presentations having to do with current and future transportation op-portunities along the Northern Sea Route. Th ey talked about signifi cantly

Greg Wolf is the Executive Director for World Trade Center Alaska.

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special section World Trade

Alaska’s North Slope and Alaska’s North Slope and Alaska’s North Slope and LNGLNGLNGLNGLNGLNGNorth America’s energy bridge to Asia

BY SOURABH GUPTA AND ASHOK ROY

Th e views expressed herein are the authors’ own and not those of Samuel International and/or the University of Alaska.

When the fi rst modern shale well was drilled a couple of miles north of Fort Worth, Texas in

the late-1990s, few would have believed what a global energy market game-changer it would turn out to be barely a decade removed. At the time it was antici-pated the United States would be, during the fi rst half of the 21st century, one of the largest global importers of liquefi ed natural gas (LNG); today the U.S. domes-tic natural gas market is oversupplied and prices barely a fraction of that which they fetched just a couple of years earlier.

It is now foreseen that increased pro-duction of natural gas (and oil, as the U.S. is slated to dethrone Saudi Arabia soon as the largest producer of black gold) will make the U.S. energy self-suffi cient, on net, within 25 years. Along the way, it is expected to provide a foundation for a domestic manufacturing renaissance, supply billions of dollars in revenue to federal and state governments, lessen the pressures on the current U.S. account defi cit (via reduced oil and gas imports) and provide upward support to the value of the dollar. Broader geo-political ben-efi ts are also likely to accrue.

Meanwhile, on the global demand side, as per the International Energy Agency’s most recent World Energy Outlook 2012, natural gas is expected to be the only fos-sil fuel for which global demand is an-ticipated to persist—in fact, increase—in any-and-all policy scenarios and contin-gencies over the next 25 years. Unconven-tional gas (particularly shale gas) will ful-fi ll nearly half of this increase in demand, much of it arising from Asia’s seemingly unquenchable thirst for energy to fi re its unstoppable economic engine.

During 2000-2011, more than half the increase in demand for liquefi ed natural gas came from Asia with im-ports from China and India growing

as much as 30 percent and 52 percent, respectively, in 2011. Active policy support and regulatory reforms are expected to ensure that China’s con-sumption expands from its current 130 billion cubic meters (bcm) to 545 bcm in 2035. In the interim until 2020 though, Japan is expected to be Asia’s leading importer of LNG, due to its need to fi nd a quick and dependable substitute fuel source in the wake of the Fukushima disaster and the sub-sequent and continuing nuclear plant shutdowns.

Furthermore, a key driver of Asia’s de-mand dynamics arises from its need to secure diversifi ed fuel choices and sourc-es. Disproportionate amount of current Asian energy consumption is concen-trated in greenhouse gas-intensive coal and oil-based sources—an environmen-tally unsustainable proposition in the long run. Equally, Asia remains overly dependent on the Middle East for oil and on regional production (from Aus-tralia, Indonesia, Malaysia and the Rus-sian Sakhalin Peninsula) in the case of LNG. Contracts for LNG further tend to typically be of a long duration and price-infl exible variant. Th e appearance across of the horizon of seemingly inexhaustible North American shale oil resources thus embodies the latent potential for Asia to signifi cantly improve its energy security, even as it diversifi es supply sources, pric-ing formulas and contractual terms.

Clearly, a demand-supply “match-made-in-heaven” scenario between North American production and Asian consumption beckons on the near ho-rizon—one that is mutually stable, remunerative, and in the long run eco-nomically integrative. For Alaska, these developments could not have arrived at a more opportune time. Foremost among its continental peers, Alaska

stands poised at the forefront to become North America’s energy bridge to Asia and reap the profi ts of this reciprocally benefi cial trans-Pacifi c relationship.

In 2009, an updated study by the U.S. Department of Energy (DOE) assessed the discovered technically recoverable natural gas resources on Alaska’s North Slope to be to the tune of approximately 35 trillion cubic feet. Geological evidence suggests that gas fi elds of suffi cient size are available to support economically and environmentally viable extraction. Because a pipeline to carry the gas to (export) market had hitherto been miss-ing, in recent weeks, a consortium of en-ergy companies including Exxon Mobil Corp., ConocoPhillips Co. and BP PLC have signaled their intention to build an 800 mile-long such pipeline from Alas-ka’s North Slope to its coast. For good measure, a gas liquefaction plant is also envisaged at shore which will enable the consortium—and Alaska—to profi tably arbitrage the huge price diff erential that currently exists between the Asian and North American gas markets.

If this all sounds too good to be true, well, that is indeed the case in some ways. Issues ranging from land access to marine mammal protection, espe-cially the bowhead whale which is on the Endangered Species Act list, to wa-ter and gravel availability to construct roads and production facilities, have the potential to stymie the development of North Slope oil and gas resources. While some of these hindrances are amenable to solutions, including fur-ther advances in technology, an alto-gether more troubling stumbling block is the existence of an archaic and unnec-essarily retrograde federal law that has been on the books since the late-1930s. However, it is prudent to remember the somber uncertainties to Alaska’s pros-

Page 31: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 31 ■

pects of having its LNG in the market by 2023 also emanate from exogenous factors, such as: whether Japan restarts its nuclear plants and relies on LNG for power; Russia builds new pipelines to move gas from East Siberia to the Pa-cifi c; if effi cient LNG tankers costs less than the cost of building the 800 mile new pipeline from the North Slope; if shale gas can be exported as LNG; and if China expands its LNG imports.

As per the Natural Gas Act of 1938, all exports of natural gas from the United States require the Department of Energy (DOE) to make an affi rma-tive determination that the permit to export is consistent with the American “public interest.” As a practical matter, this “public interest” determination is limited to those countries with which the U.S. has not entered into a free trade agreement (FTA). Th e U.S. however has very few such FTAs in force—only 20 totally, many of them with minnows, and none with a large, dynamic Asian economy (save South Korea).

Such a discretionary, nonautomatic licensing authority is not only an invest-ment-chiller, it might also be noncom-

pliant with the U.S.’ international com-mitments. International trade lawyers and U.S. Chamber of Commerce offi cials alike have charged that the requirement to secure government approval to export LNG amounts to a possible export re-straint that violates the U.S.’ obligations under the 1994 General Agreement on Tariff s and Trade (GATT). Although GATT rules allow limited exceptions from this general prohibition on export restraints, such prohibitions or restric-tions need to be either:

(a) temporary(b) related to essential products that

are in short supply(c) applied in conjunction with other

conservationist objectives, or (d) made with an express national se-

curity objective in mind.

Discretionary nonautomatic export licensing authority (for LNG) interpret-ed under the guise of being in the “pub-lic interest” does not appear to comport to these above criteria—in turn, calling into question the U.S.’ fi delity to inter-national trade law and obligation on this matter.

Regardless of this consistency/incon-sistency, protectionist voices in Congress have latched onto this provision to lobby for denial of LNG exports abroad—both, to artifi cially benefi t domestic manufac-turing via the diff erential in (energy) in-put prices as well as to crimp the broader development of the U.S.’ onshore and off shore gas resources in the name of environmental considerations. How-ever, fully participating in global energy markets is the most appropriate way to reward domestic producers, incentiv-ize investments in economical domestic production, and keep costs low for con-sumers, while simultaneously encour-age the use of off -the-shelf technologies that enhance effi ciency and conservation goals. Ultimately, in the absence of devel-opment of the North Slope LNG bounty, it is in Alaska—and in lost revenues—where the price will be paid.

Going forward, the off ending provi-sion in the Natural Gas Act needs to be reinterpreted in such way that LNG ex-ports are denied to none but the most egregious few rogue state actors. Allies such as Japan, which currently have sig-nifi cantly reduced their intake of Iranian

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Page 32: February-2013-Alaska Business Monthly

■ 32 www.akbizmag.com•Alaska Business Monthly•February2013

crude in spite of the Fukushima disaster, ought not to be punished by such exclu-sions, which were written in an altogeth-er diff erent time and age. In passing, it bears noting that even at the height of the Cold War the U.S. conducted agricultural trade with the Soviet Union. Equally, the discretionary authority embedded in the Natural Gas Act needs to be stripped so that predictability and security of tenure to justify the large, capital-intensive in-vestment in a pipeline and gas liquefac-tion facility can be assured. Federal law ought to embrace such extraction, devel-opment, transport and export, so long as it is conducted in a market–friendly and environmentally responsible fashion.

In early December 2012, an ice-class LNG tanker chartered by the Russian oil and gas giant Gazprom traversed the Arc-tic route to Asia to deliver a cargo of Nor-wegian gas at the Japanese port of Kita-kyushu. Th e number of such crossings has been on the rise in recent times—the number of vessels making the Arctic pas-sage having risen steadily from four in 2010 to 34 in 2011 to 46 as of December 2012. Russian president Vladimir Putin has vowed to transform this route into a

future “international transport artery” in terms of fees, safety and quality. Th e seemingly unquenchable thirst for LNG on the Asian continent will, one way or the other, be sated. Th e question is: will it be U.S.—and Alaska-based—capital and producers at the head of this queue?

Or will this opportunity be fumbled by way of pious pronouncements that ca-ter—and serve as a cover—to the inter-est of more protectionist-minded lobbies in Washington, D.C. Th e road ahead for Alaska, in the years to come, has some detours and riddles. R

Sourabh Gupta is a Senior Research Associate at Samuels International Associates Inc., a strategic international

trade and political advisory fi rm based in Washington, D.C. He holds master’s degrees in international security studies and international relations from the Walsh School of Foreign Service at Georgetown University and the Maxwell School at Syracuse University, respectively. He is currently a 2012 East Asia Forum Distinguished Fellow.

Dr. Ashok K. Roy is the Vice President for Finance & Administration/Chief Financial Offi cer for the University of Alaska system.

Dr. Roy has signifi cant experience, at senior management levels, at three other large universities, local government, and in the private sector. Dr. Roy was educated in the USA and India, and holds six university degrees and fi ve professional certifi cations. He has authored 67 publications in academic and trade journals.

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Page 33: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 33 ■

Development of the Arctic is a hot topic around the world and is the subject of international con-

ferences—forums that take place each year. Last May in Anchorage, World Trade Center Alaska, along with the Institute of the North, conducted the inaugural Arctic Ambitions Confer-ence. Th e gathering concentrated on the theme of international trade and business opportunities that fl ow from development of the Arctic.

Working from a context of who stands to benefi t most—which regions, coun-tries, industries and companies—pre-senters addressed issues such as interna-tional supply chains, markets, commerce, marine transport and other subjects asso-ciated with Arctic development.

While policy and research informed the discussion, the conference concen-trated on global markets, international trade and decision-making. Discussion was framed by several key Arctic indus-tries. It addressed the two-way nature of exports and imports in the Arctic.

It’s not just a question of what Arctic nations can develop and export—equal-ly important is who has a market for those resources. Government offi cials and business executives from Canada, Finland, Japan, Korea, Norway, Russia and the United States participated in the conference and discussed their roles as development unfolds in the region.

With the accelerating rate of polar-ice melt, massive natural resources are becoming accessible in the Arctic. Ac-cording to the U.S. Geological Survey, one-quarter of the world’s undiscov-ered, technically recoverable oil and gas resources may be in the Arctic: oil (90 billion barrels); natural gas (1.7 trillion cubic feet); and natural gas liquids (44 billion barrels). Resource exploration in the Arctic requires signifi cant technical assistance. For example, Arctia Ship-ping, a Finnish operator of an icebreak-ing fl eet, provides service and support of off shore oil and gas exploration. Th e company’s icebreakers are capable of supporting off shore drilling rigs in Alas-ka and elsewhere in the Arctic. Th e pres-

ident of Arctia Shipping was one of the featured speakers at the inaugural Arctic Ambitions Conference in May last year.

At the same time, there was a sig-nifi cant increase in maritime cargo movements through the Arctic ship-ping routes. Th e summer season of 2011 showed a rise of commercial transit via the Northern Sea Route—34 ships carried 820,000 tons of cargo. By com-parison, in 2010, only 4 ships transited through the NSR and carried 111,000 tons. All but one of these vessels required an icebreaker escort. Rosatomfl ot, a Rus-sian company operating a fl eet of nucle-ar-powered icebreakers in the Arctic, provided these escorts. Rosatomfl ot also participated in Arctic Ambitions.

With the growth of Arctic maritime infrastructure, there exists a potential for usage of Alaska ports. Ships pass-ing through the Bering Strait could be served by ports such as Adak and Un-alaska. Th ese ports could become trans-shipping hubs for cargo as it passes from new Arctic shipping lanes to exist-ing commercial routes. Currently, the Norwegian port of Kirkenes serves this function on the European side of the Northern Sea Route. One of the opera-tors of this transshipping hub, Tschudi Shipping Co., came to Anchorage to present at Arctic Ambitions last year.

Th is year’s Arctic Ambitions II Confer-ence will provide an important update on commercial activities in the Arctic and a venue for Alaska companies to hear the latest news directly from government and business leaders in the region. Th e conference will take place at the Hotel Captain Cook in Anchorage on Feb. 19-20: for registration information visit wt-cak.org or call (907) 27-TRADE. R

Arctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II ConferenceArctic Ambitions II Conferencespecial section World Trade

Page 34: February-2013-Alaska Business Monthly

■ 34 www.akbizmag.com•Alaska Business Monthly•February2013

special section World Trade

New Realistic Russian OpportunitiesNew Realistic Russian OpportunitiesNew Realistic Russian Opportunities

With the events surrounding the fall of the Berlin Wall in 1989, Alaska and Russia began ex-

ploring economic and cultural relations. Businesspeople, students and cultural exchange groups visited their counter-parts and several organizations were es-tablished to promote bilateral relations. Sister-city relations were established be-tween Alaskan and Russian cities, such as Magadan, Vladivostok, Yakutsk, Pet-ropavlovsk-Kamchatsky and others.

Th e excitement grew with the an-nouncement of several Sakhalin oil and gas development projects in the 1990s. Since the Russian Far East is a resource-rich region, Alaska has not been a large exporter of commodities to the region. Rather, Alaska compa-nies have been exporting technical and professional expertise and services. Several fi rms have garnered contracts in transportation, construction and other fi elds. Some participated in joint development projects in Sakhalin and continue their operations in the re-gion to this day. For example, Lynden Inc. is a provider of transportation and logistics services in Sakhalin, and Alaska Interstate Construction LLC is involved in road construction, oil well pad installation, and other oilfi eld in-frastructure development projects.

In the same period, the University of Alaska established close ties with its counterparts in the Russian Far East. Many students from Magadan, Khabarovsk, Vladivostok, as well as other cities in the region, enjoy resi-dent tuition at the University of Alaska. At one point in time, the University of Alaska had more Russian students than any other university in the Unit-ed States. Also, the American-Russian Center at the University of Alaska An-chorage was one of the principal tech-nical assistance organizations between the U.S. and the Russian Far East. It

had branch offi ces in eight Russian cit-ies and several thousand Russians par-ticipated in its courses and educational exchange programs.

Both Aerofl ot and Alaska Airlines started direct service between Alaska and the Russian Far East in 1991. By the early 2000s direct fl ights stopped. Since then there have been a few unsuccessful attempts on both the U.S. and Russian sides to resume regular service. Last summer regional Russian air carrier Yakutia Air started seasonal service from Petropavlovsk-Kamchatsky to Anchorage and conducted 10 roundtrip fl ights. In 2013, Yakutia Air will expand service to 14 roundtrips and provide a direct connection from Petropavlovsk to Khabarovsk, which is served by sev-eral airlines connecting with other Rus-sian and Asian destinations. Successful operations could lead to a decision by the carrier to expand from seasonal to year-round service in the future.

In 2012, Russia acceded to the World Trade Organization. As a result of this accession, Russia’s average tariff rate will decline and conditions for foreign trade and investments will be liberal-ized. U.S. manufacturers and exporters will now have more favorable market access than in previous years. In addi-tion, WTO accession includes stronger intellectual property rights enforce-

ment and more transparency in trade-related legislation.

In September 2012 another develop-ment saw the entering into force of an historic visa agreement between the U.S. and Russia. Th anks to this agree-ment, three-year, multiple-entry visas will become the standard terms for U.S. citizens visiting Russia and Russian citizens visiting the United States. Th e agreement also eliminated offi cial let-ters of invitation and standardized visa processing time to 15 days. In previous decades, visa issuance and terms were inevitable obstacles for U.S.-Russia business travel and tourism.

On Feb. 19, World Trade Center Alaska will conduct the half-day con-ference entitled “A New Look at Alaska-Russian Far East Opportunities.” With this half-day event, the Trade Center will take a new, fresh look at potential business opportunities between Alaska and the Russian Far East region. It will feature six speakers, a mix of both U.S. and Russian trade specialists. Much has transpired since the 1990’s when Alaskans actively explored commer-cial opportunities in the Russian Far East. Considering the history of Alaska-Russian Far East relations and the new developments listed above, new market opportunities for Alaska companies may emerge in the near future. R

Promoting business with Alaska companies

BY ALEX SALOV AND AARON WEDDLE

Page 35: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 35 ■

special sectionWorld Trade

Export Partners & CommoditiesExport Partners & CommoditiesExport Partners & CommoditiesTotal U.S. Exports (Origin of Movement) via ALASKA

Top256-digitHSCommoditiesBasedon2011DollarValueU.S. Exports by Origin State (Origin of Movement Series). Values in millions of dollars. Percent Change is from 2010 - 2011.

Rank HS Code Description 2008 Value

2009 Value

2010 Value

2011 Value

2008 % Share

2009 % Share

2010 % Share

2011 % Share

% Change, 2010-2011

--- --- Total Alaska exports and % share of U.S. Total 3,542 3,270 4,155 5,325 0.3 0.3 0.3 0.4 28.2

--- --- Total, top 25 commodities and % share of state total 3,264 2,967 3,838 5,066 92.2 90.7 92.4 95.1 32

1 260800 Zinc ores and concentrates 443 610 877 972 12.5 18.7 21.1 18.3 10.8

2 30429 Fish fi llets, frozen, nesoi 317 308 280 519 9 9.4 6.7 9.8 85.8

3 260700 Lead ores and concentrates 145 160 402 495 4.1 4.9 9.7 9.3 23

4 30499 Fish meat, frozen, except steaks and fi llets nesoi 203 182 270 319 5.7 5.6 6.5 6 18

5 30319 Pacifi c salmon, nesoi, excl fi let, liver,roe, froz 153 148 218 293 4.3 4.5 5.3 5.5 34.2

6 30380 Fish livers and roes, frozen 293 209 152 269 8.3 6.4 3.6 5.1 77.5

7 710812 Gold, nonmonetary, unwrought nesoi 143 151 213 266 4 4.6 5.1 5 24.6

8 30379 Fish, nesoi, with bones, frozen 127 160 150 257 3.6 4.9 3.6 4.8 71.1

9 30352 Cod, frozen, excluding fi llets, livers and roes 155 92 153 247 4.4 2.8 3.7 4.6 61.1

10 271111 Natural gas, liquefi ed 305 257 366 210 8.6 7.8 8.8 3.9 -42.6

11 260300 Copper ores and concentrates 103 64 37 199 2.9 2 0.9 3.7 441.3

12 261690 Precious metal ores & concentrates, except silver 0 0 20 142 0 0 0.5 2.7 (Z)

13 30311 Sockeye salmon, excl fi llet, livers & roes, frozen 97 114 132 132 2.7 3.5 3.2 2.5 -0.5

14 271019 Oil (not crude) from petrol & bitum mineral etc. 144 38 27 125 4.1 1.2 0.6 2.4 370.4

15 440320 Coniferous wood in the rough, not treated 81 86 114 118 2.3 2.6 2.7 2.2 4.1

16 30614 Crabs, including in shell, frozen 82 82 73 113 2.3 2.5 1.7 2.1 56.3

17 30339 Flat fi sh nesoi except fi llets, livers, roes, frz 113 81 95 74 3.2 2.5 2.3 1.4 -22.1

18 271121 Natural gas, gaseous 0 0 0 67 0 0 0 1.3 0

19 230120 Flour meal & pellet of fi sh crustaceans etc inedib 28 30 46 62 0.8 0.9 1.1 1.2 35.6

20 30250 Cod except fi llets, livers & roes, fresh, chilled 24 53 44 39 0.7 1.6 1.1 0.7 -11.1

21 30351 Herrings, frozen, except fi llets, livers and roes 23 38 35 38 0.6 1.2 0.9 0.7 7.3

22 880000 Civilian aircraft, engines, and parts 196 29 49 33 5.5 0.9 1.2 0.6 -32.4

23 30221 Halibut/greenland turbot ex fi llet, lvr, roe fr/ch 51 40 47 30 1.4 1.2 1.1 0.6 -36.6

24 30212 Salmon, pac, atl & danube, with bones, fr or chill 17 13 19 24 0.5 0.4 0.5 0.4 25.9

25 30510 Flours, meals & pellts of fi sh, for human consumpt 22 20 18 22 0.6 0.6 0.4 0.4 22.9

‘(Z)’ indicates a percent change greater than 500. Updated 11JUL2012.

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Total U.S. Exports (Origin of Movement) via ALASKATop25CountriesBasedon2011DollarValue

U.S. Exports by Origin State (Origin of Movement Series). Values in millions of dollars. Percent Change is from 2010 - 2011.Rank Country 2008

Value2009 Value

2010 Value

2011 Value

2008 % Share

2009 % Share

2010 % Share

2011 % Share

% Change, 2010-2011

--- Total Alaska exports and % share of u.S. Total 3,542 3,270 4,155 5,325 0.3 0.3 0.3 0.4 28.2

--- Total, top 25 countries and % share of state total 3,480 3,188 4,090 5,262 98.3 97.5 98.5 98.8 28.6

1 China 733 586 921 1,477 20.7 20.7 22.2 27.7 60.3

2 Japan 1,051 992 1,218 1,086 29.7 29.7 29.3 20.4 -10.8

3 Korea, south 366 458 477 642 10.3 10.3 11.5 12.1 34.6

4 Canada 370 320 390 586 10.5 10.5 9.4 11 50.2

5 Germany 208 126 174 261 5.9 5.9 4.2 4.9 49.9

6 Switzerland 148 150 211 253 4.2 4.2 5.1 4.7 20

7 Spain 30 138 163 205 0.9 0.9 3.9 3.9 25.5

8 Netherlands 105 88 115 173 3 3 2.8 3.2 50.2

9 Australia 4 21 66 96 0.1 0.1 1.6 1.8 46.7

10 Mexico 30 8 13 79 0.8 0.8 0.3 1.5 488.2

11 Finland 25 27 41 60 0.7 0.7 1 1.1 46.6

12 Malaysia 0 2 1 49 0 0 0 0.9 (Z)

13 France 44 31 41 48 1.2 1.2 1 0.9 16.6

14 Thailand 22 18 21 35 0.6 0.6 0.5 0.7 64.8

15 Belgium 36 27 64 31 1 1 1.5 0.6 -50.9

16 Portugal 59 17 33 31 1.7 1.7 0.8 0.6 -6.2

17 Chile 10 15 23 21 0.3 0.3 0.6 0.4 -9.4

18 Taiwan 109 12 23 20 3.1 3.1 0.6 0.4 -10.8

19 Denmark 17 10 8 19 0.5 0.5 0.2 0.4 126.2

20 United kingdom 22 16 29 18 0.6 0.6 0.7 0.3 -38.8

21 Ukraine 17 5 9 18 0.5 0.5 0.2 0.3 86.8

22 Russia 19 11 11 16 0.5 0.5 0.3 0.3 35.6

23 Norway 25 15 17 15 0.7 0.7 0.4 0.3 -12

24 Hong kong 11 22 12 13 0.3 0.3 0.3 0.2 10.4

25 Singapore 18 74 8 11 0.5 0.5 0.2 0.2 41.2

‘(Z)’ indicates a percent change greater than 500. Updated 11JUL2012.

Rank

---

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Rank

---

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Description

Total Alaska exports and % share of U.S. Total

Total, top 25 commodities and % share of state total

Zinc ores and concentrates

Fish fi llets, frozen, nesoi

Lead ores and concentrates

Fish meat, frozen, except steaks and fi llets nesoi

Pacifi c salmon, nesoi, excl fi let, liver,roe, froz

Fish livers and roes, frozen

Gold, nonmonetary, unwrought nesoi

Fish, nesoi, with bones, frozen

Cod, frozen, excluding fi llets, livers and roes

Natural gas, liquefi ed

Copper ores and concentrates

Precious metal ores & concentrates, except silver

Sockeye salmon, excl fi llet, livers & roes, frozen

Oil (not crude) from petrol & bitum mineral etc.

Coniferous wood in the rough, not treated

Crabs, including in shell, frozen

Flat fi sh nesoi except fi llets, livers, roes, frz

Natural gas, gaseous

Flour meal & pellet of fi sh crustaceans etc inedib

Cod except fi llets, livers & roes, fresh, chilled

Herrings, frozen, except fi llets, livers and roes

Civilian aircraft, engines, and parts

Halibut/greenland turbot ex fi llet, lvr, roe fr/ch

Salmon, pac, atl & danube, with bones, fr or chill

Flours, meals & pellts of fi sh, for human consumpt

2009 Value

3,270

2,967

610

308

160

182

148

209

151

160

92

257

64

0

114

38

86

82

81

0

30

53

38

29

40

13

20

2011 Value

5,325

5,066

972

519

495

319

293

269

266

257

247

210

199

142

132

125

118

113

74

67

62

39

38

33

30

24

22

2009 % Share

0.3

90.7

18.7

9.4

4.9

5.6

4.5

6.4

4.6

4.9

2.8

7.8

2

0

3.5

1.2

2.6

2.5

2.5

0

0.9

1.6

1.2

0.9

1.2

0.4

0.6

2011 % Share

0.4

95.1

18.3

9.8

9.3

6

5.5

5.1

5

4.8

4.6

3.9

3.7

2.7

2.5

2.4

2.2

2.1

1.4

1.3

1.2

0.7

0.7

0.6

0.6

0.4

0.4

2008 Value

3,542

3,480

733

1,051

366

370

208

148

30

105

4

30

25

0

44

22

36

59

10

109

17

22

17

19

25

11

18

2010 Value

4,155

4,090

921

1,218

477

390

174

211

163

115

66

13

41

1

41

21

64

33

23

23

8

29

9

11

17

12

8

2008 % Share

0.3

98.3

20.7

29.7

10.3

10.5

5.9

4.2

0.9

3

0.1

0.8

0.7

0

1.2

0.6

1

1.7

0.3

3.1

0.5

0.6

0.5

0.5

0.7

0.3

0.5

2010 % Share

0.3

98.5

22.2

29.3

11.5

9.4

4.2

5.1

3.9

2.8

1.6

0.3

1

0

1

0.5

1.5

0.8

0.6

0.6

0.2

0.7

0.2

0.3

0.4

0.3

0.2

% Change, 2010-2011

28.2

28.6

60.3

-10.8

34.6

50.2

49.9

20

25.5

50.2

46.7

488.2

46.6

(Z)

16.6

64.8

-50.9

-6.2

-9.4

-10.8

126.2

-38.8

86.8

35.6

-12

10.4

41.2

Page 36: February-2013-Alaska Business Monthly

■ 36

Fisheries

Page 37: February-2013-Alaska Business Monthly

37 ■

Bering Sea Bounty

Bering Sea Bering Sea Bering Sea Bering Sea BountyBountyBountyBounty

Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea BountyBountyBountyBountyBountyBountyBountyBountyBountyBountyBounty

The bounty of the Bering Sea hits the dock in the Aleutian Islands. Th en it goes worldwide.

Dutch Harbor is the busiest fi shing port in the country, a title the rough-edged Aleutian community of Unalas-ka has held for the last 15 years. Aku-tan, a windblown hamlet 45 miles away, is home to the largest seafood plant in North America, owned by Trident Sea-food Corp., a massive operation that draws upwards of 1,000 people to the remote spot at peak processing times.

Between them, the ports of Dutch Harbor and Akutan bring in more val-ue and volume than any commercial fi shing port in the United States. Com-bined, the total volume of seafood land-ed at Dutch Harbor and Akutan topped 1.1 billion pounds in 2011.

Th ey also account for the majority of the state’s seafood exports, a commod-ity hitting new levels in recent years. Th en there’s the drier upside of taxes paid by the fi shing industry that make up the bulk of local budgets and even boost the state’s general fund.

“Overall, it’s our only game in town,” says Frank Kelty, a former Unalaska mayor who now works as a city resource analyst. “All our diff erent industries are tied to the health of the resource of the Bering Sea.”

‘This Town is Buzzing’ It’s hard to keep track of all the econom-ic impacts tied to commercial seafood in the Port of Dutch Harbor and City of Unalaska. Direct jobs in fi shing and processing in 2011 totaled 56 skippers and crew and more than 3,340 process-ing jobs worth $62 million, according to the Alaska Department of Labor and Workforce Development.

Numerous companies operate shore-based processing plants out of Unalaska-Dutch Harbor. Among them are: Aly-eska Seafoods Inc.; Unisea Inc.; Western Alaska Fisheries; APICDA Joint Venture Inc.; Quota Share Leasing LLC; Bering Fisheries; and EAG Quota LLC. Plants process nearly 50 diff erent species of fi sh and shellfi sh—several kinds of crab and salmon, fl ounder, rockfi sh and sablefi sh. Pollock alone brought in a wholesale val-ue of $523 million for Dutch Harbor and Akutan in 2011, according to an Alaska Department of Fish and Game tally. Pa-cifi c cod netted more than $93 million, and snow crab more than $90 million.

Commercial fi shing exports shore up

Dutch Harbor, Akutan economies

BY ZAZ HOLLANDER

Commercial crabbing fi shermen hauling crab traps

onboard in heavy seas in the Bering Sea, Southwest

Alaska.

©2013 Dan Parrett / AlaskaStock.com

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■ 38 www.akbizmag.com•Alaska Business Monthly•February2013

Long List of Indirect Jobs“Basically, the economic structure of this town has been built on the fi sheries,” says Peggy McLaughlin, the City of Unalaska’s port director. “Repair services, fueling services, grocery services, radar services, and then the big piece is the cargo and la-bor services that come with handling all the fi sh product and supplies.”

Two container ships a week call on the city’s dock. Private facilities handle con-tainer ships as well. Barge calls every year easily top 1,000, McLaughlin says.

Th e port’s revenue stream is directly linked to fi shing vessel vendor-support services, she says. Th e city dock hosts companies that provide cargo cranes and fueling at the main industrial dock. Unalaska also operates a light cargo dock designed for loading and unload-ing gear and crab pots. A small-boat harbor takes small fi shing and recre-ational vessels up to 70 feet.

A new harbor—Carl E. Moses Boat Harbor—opened in December 2012. Th e harbor boasts 65 slips and more than 5,400 feet of linear docking space and is totally full except for a handful of slots. Chalk that up to the economics of tran-

siting back to Seattle. It’s cheaper to stay in the Port of Dutch Harbor for repairs.

Unalaska has one of the largest long-shore groups in the state, with more than 100 members, according to Kelty. Th e fi shing industry underpins air service in and out of the community. It supports hotels, restaurant, grocers, electricians, fuel services and repair businesses. It also underpins the city’s heft y government roster of about 150 people to run everything from utilities to snow-clearing and security.

“When everybody’s gearing up for the fi sheries, this town is buzzing,” McLaughlin says. “You can’t consis-tently get cell service because the cell lines are using up the entire bandwidth. Getting a plane seat in and out of here is problematic. Of course, everybody ben-efi ts from that: the grocery stores, the bars, the restaurants.”

One Big Resident Only one processor operates in Akutan: Seattle-based Trident, with the plant ca-pacity to process 3 million pounds of fi sh and seafood every day. Akutan sits on the shoulders of steep volcanic terrain

where the infl ux of so many workers ev-ery year creates a community of its own.

While state population counters put the number of residents at 75, that number is really more like 750 if you count Trident employees who make semi-permanent or permanent homes there, according to Larry Cotter, executive director of the nonprofi t corporation the Aleutian Pribi-lof Island Community Development As-sociation. A video made in 2008 for the City of Akutan portrays the vibrancy of the processing industry in Akutan. Th e video shows workers sorting and freez-ing fi llets at the Trident Plant. Th ey make surimi—imitation crab formed from ground-up pollock, starches, sugar, and other additives. Th ey produce fi sh meal and oil for export to what looks like Ko-rea, to judge by the letters on outbound bags. Th ey process king and snow crab as well as halibut. Products head off in con-tainers for overseas markets.

City and Trident offi cials did not re-turn calls for comment about Akutan operations.

It’s clear that Trident, like the plants in Unalaska-Dutch Harbor, leverages money for infrastructure that wouldn’t

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www.akbizmag.com•Alaska Business Monthly•February2013 39 ■

be possible in such a small community without them, Cotter says.

Akutan has “incredible geothermal capacity,” he says. The community is see-ing positives on test wells, he says. “The fact Trident is there probably makes it feasible to bring that project on line.”

Export Mecca Gov. Sean Parnell in April 2012, an-nounced a major uptick in Alaska’s ex-ports. Dutch Harbor and Akutan were a big part of that news. The value of the state’s seafood exports was up 35 percent in a year between 2010 and 2011. The surge was part of a nearly 25 percent in-crease in Alaska’s exports overall year to year, for a value of more than $5 billion.

The country buying the state’s goods changed too: for the first time, China became the leading importer of Alaska’s products and resources, replacing Japan.

As processors grow larger, they are exporting partially processed product to China for finishing, state officials say. Then the product is shipped back to the United States for sale. So, for example, frozen headed and gutted salmon might get canned in China, shipped back to the

U.S., then sold as “Made in China” though the fish in the cans is wild Alaskan.

A marketing focus on exports helped push the seafood boom, but so did our relatively weak dollar, says Tyson Fick, communications director for the Alas-ka Seafood Marketing Institute. Japan bought more seafood—salmon, crab, pollock and other species—on a weaker dollar against the yen. The value of the dollar relative to competitors in Nor-way helped too, Fick says.

Dutch Harbor and Akutan were ma-jor players in the increase, industry watchers say. There’s no public data on exports from specific ports due to con-fidentiality protections, though value and volume in each is available.

Dutch Harbor and Akutan are key ports involved in the harvesting, processing and exporting of Alaska pollock, according to an email from Andy Wink, a McDow-ell Group researcher who works with the Alaska Seafood Marketing Institute.

Alaska’s seafood industry exported 521 million pounds of frozen pollock, fillets, surimi and roe in 2011, worth $665 million. The 2011 Alaska pollock harvest alone totaled 2.8 billion pounds.

Paying Back Just as significant as the export piece is the contribution these ports make to lo-cal and state tax bases.

Dutch Harbor-Unalaska gets $11 million to $13 million from fish taxes almost every year, according to Kelty. On top of that, the city charges a 3 per-cent sales tax. The money makes up close to half of the revenues headed for the general fund.

The city’s general fund runs around $20 to $25 million, about twice that if you include several city-run utilities.

“We have first-class school facilities, many new buildings—city hall, parks culture and recreation buildings, main-tenance buildings, museum, libraries. All are within 10 to 15 years old,” Kelty says. “They all got built with the start of the groundfish revenues.” There’s a 2 percent landing tax on all fish delivered, he says. There’s also a tax shared with the state—3 percent paid by shore processing plants based on the value of product. At-sea processors also pay the 3 percent tax if they operate within state waters.

The state and Dutch Harbor-Unalaska each received more than $6.7 million

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■ 40 www.akbizmag.com•Alaska Business Monthly•February2013

in fi shery business and landing taxes through the municipal tax-sharing pro-gram, according to a fact sheet compiled by United Fishermen of Alaska in Juneau.

“Th at’s big enough to make an impact on the state general fund,” says Mark Vinsel, executive director of United Fishermen.

It hasn’t always been this way.

The History Th e history of the Grand Aleutian Hotel is a history of the fi shing and processing boom that built Dutch Harbor-Unalaska as it is today. Redmond, Wash.-based processing powerhouse UniSea Inc. op-erates the 112-room hotel that also holds several restaurants—the Chart Room restaurant known for it Wednesday night seafood buff ets, a cafe, a sushi place and a bar.

About 80 percent of the guests staying at the Grand Aleutian are involved in some way with the fi shing industry, ac-cording to Tom Enlow, the hotel’s gen-eral manager and UniSea’s hospitality director. Th at includes state and federal government fi sh managers, workers on at-sea processing ships waiting on shift changes and industry representatives.

But back in the 1970s, visitors to Un-alaska-Dutch Harbor arrived to fi nd no lodging. Former UniSea president Dick Pace put them up on one of the compa-ny’s fl oating processing platforms.

Th e clear and rising need for lodging drove Pace’s decision to build the Uni-Sea Inn in the early 1980s, a 50-room establishment with restaurant, bar and liquor store that’s still used for employ-ee housing and lodging for the public.

Th e growth of the Bering Sea ground-fi sh industry in the 1990s drove the construction of the larger Grand Aleu-tian. Th e 1996 Magnuson-Stevens Fish-ery Conservation and Management Act phased out foreign fi shing, created regional fi shery management councils, and focused on rebuilding overfi shed stocks and reducing bycatch.

Most of the Bering’s fi sheries were ra-tionalized in the 1990s, “which has result-ed in signifi cant positive changes for the industry overall,” APICDA’s Cotter says.

“Dutch Harbor and Akutan, the Ber-ing Sea in general, has been the premier fi shery in the United States,” Cotter says. “Th e stocks are managed well ... We have embraced science and we have embraced

Zaz Hollander is a journalist living in Palmer.

data. We all understand it’s necessary to know what’s going on in the ocean.”

The Future Th e industry faces several challenges on the ocean front. For one, it’s likely that re-strictions based on weak halibut stocks will infl ict some pain on Bering Sea fi sheries, says Enlow, an Unalaska city councilor who serves as chair of the North Pacifi c Fishery Management Council advisory panel.

Managers are trying to get a handle on a sudden drop in the size of halibut landed, as well as a mushy texture that’s baffl ed the industry. Halibut is caught and processed in the Bering fi sheries, but it’s also caught incidentally as by-catch in groundfi sh fi sheries.

Enlow says the potential impact could be “across the board.”

“Halibut is really a driving resource in all the fi sheries we’re involved in,” he says. Other challenges to Bering Sea fi sheries include restrictions to reduce salmon by-catch and cutbacks in Aleutian fi sheries to address sea lion protections, Kelty says.

Still, the 2013 quota on pollock—a mainstay of Unalaska-Dutch Har-bor and Akutan processing—rose by 60,000 metric tons, he says. “Th e over-all state of aff airs with the strength of the resource is we’re in excellent shape.”

Th e ability of that fi shery to bounce back, biomass-wise, is astounding, state offi cials say.

In 2011, the industry reported more than 1 billion total pounds of processed pollock for a total wholesale value of $1.38 billion, according to Shellene Hut-ter, with the Alaska Department of Fish and Game. To put that in perspective, the industry statewide reported about 545,000 pounds of processed salmon for a value of $1.44 billion that year.

And there may be a new industry on the horizon: oil. Shell Oil used Dutch Har-bor as a staging area for it off shore Arctic drilling operations over the summer.

“Behind them is Statoil and Conoco Phillips,” Enlow says. “Th ey’re all in the permit process. If Shell is successful with its exploratory wells it could change a lot of the ports in western Alaska. Ours be-ing the northernmost ice-free port, it could mean big changes.” R

Page 41: February-2013-Alaska Business Monthly

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Page 42: February-2013-Alaska Business Monthly

■ 42 www.akbizmag.com•Alaska Business Monthly•February2013

Three years ago, one of Alaska’s most productive fi shing fl eets was in a state of shock.

Bering Sea longline vessels had ac-cidentally caught and killed two short-tailed albatross, a large and extremely rare seabird with a distinctive pink bill. Like many seabirds, the albatross has a penchant for diving at the strings of baited hooks deployed off fi shing vessels, hoping for free food. If caught, the birds can be pulled underwater and drown.

Catching even one short-tailed alba-tross is cause for alarm. Th e birds are listed under the Endangered Species Act, and incidental catches in fi sher-ies are strictly limited. Catches of more than four birds in a two-year period could lead to severe commercial fi shing restrictions.

And so, the demise of two short-tailed albatross in rapid succession in the summer of 2010 stunned longliners targeting Pacifi c cod off Alaska. It had been 12 years since the last albatross take.

“We were hopeful this day would never come,” a representative of the Freezer Longline Coalition said at the time. Th e Seattle-based trade associa-tion’s member boats catch, process and freeze cod at sea, generating up to $200 million in annual export revenue.

Since 2010, federal offi cials have re-ported only one additional catch of short-tailed albatross. And an inter-national scientifi c eff ort to recover the species is making signifi cant headway.

Feather hunters looking for pillow down and writing quills harvested mil-lions of short-tailed albatross, driving them to near extinction by the 1930s.

Today, the status of the surviving population is particularly precarious, not because of fi shery takes so much as its preferred habitat.

Th e world population of short-tailed albatross is about 3,000 birds, with 500 to 550 breeding pairs. Most breed on Torishima, a remote western Pacifi c island off Japan. Torishima is an active volcano. Under a worst-case scenario, it is believed that about 63 percent of the Torishima population could be killed in a catastrophic eruption.

To provide insurance for the birds, scientists have been translocating alba-tross chicks to Mukojima, a safe island about 200 miles away, in hopes of estab-lishing a new colony.

On Nov. 14, 2012, a pair of short-tailed albatross were observed breeding on Mu-kojima, the fi rst indication of successful translocation of a breeding population.

“It was quite a milestone,” says Judy Jacobs, who worked on the translo-cation project with the U.S. Fish and Wildlife Service.

Much work remains. As Jacobs says, “One pair does not a colony make.”

But any progress at Mukojima is good news for Alaska fi shermen.

Longliners have worked with federal regulators for years to develop ways to avoid albatross catches. One tactic is fl ying streamers off boat sterns as bait-ed hook lines are deployed. Th e stream-ers scare away the birds until the hooks can sink beyond their reach.

Th e ultimate solution, however, is creating more short-tailed albatross.

“We welcome the recent FWS report of initial breeding on the island and hope it signals a step forward for the health of the species,” says Chad See, Freezer Longline Coalition executive director. R

TOP: Short tailed albatross chicks during translocation to Mukojima. BOTTOM LEFT: A nesting pair of short tailed albatross. BOTTOM RIGHT: Short tailed albatross at the main Torishima colony, which is located on a steep, eroding alluvial slope where nests can easily be washed away or buried in a landslide.

Plight of the Albatross Plight of the Albatross Plight of the Albatross Plight of the Albatross Plight of the Albatross Plight of the Albatross ImprovesImprovesImprovesCheering an Alaska fi shing fl eet in the Bering Sea

BY WESLEY LOY

Fisheries

TOPalbatross chicks during translocation to Mukojima. BOTTOM LEFTnesting pair of short tailed albatross. BOTTOM RIGHTtailed albatross at the main Torishima colony, which is located on a steep, eroding alluvial slope where nests can easily be washed away or buried in a landslide.

© Hiroshi Hasegawa, Toho University

© Yamashina Institute for Ornithology

© U.S. Fish and Wildlife Service and Robert Suryan, Oregon State University

Wesley Loy is a journalist living in Anchorage.

Page 43: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 43 ■

telecom & technologY

Top priorities at pay off

BY ED ARTHUR

GCI may be best known as a cable and telephone company mani-fested physically by phone wires

or the coaxial cable that comes from a wall and attaches to a cable TV “box” or high speed cable Internet modem. Th e company, however, is also the provider of the largest medical network in the Pacifi c Northwest, connects more than 180 rural Alaska villages with wireless networking--and, according to the com-pany, brings voice, video and wireless service to more than 90 percent of Alas-kans, including video conferencing.

As part of a more than 1,700-employ-ee-strong parent company and with 120 employees spread between remote site work and three primary Network Op-erations Control Center locations, two in Alaska and one in Texas, GCI’s Industrial Telecom division may not be the largest employer in the state, but certainly ranks as one of the busiest and most important.

“Reliable, high quality commu-nications is critical to development.

Without being able to communicate as quickly and as oft en as you need, progress can slow; delays and even very expensive down time can result,” says Mark Johnson, GCI Industrial Telecom team spokesman.

Besides helping clients avoid costly delays, the GCI Industrial Telecom team is dedicated to achieving the high communications goal the division has set, according to Johnson. “Our goal is always to provide such good telecom-munications that you have the same speed and quality between a remote site and Anchorage that you’d expect between neighbors or with the busi-ness just blocks away in a major city,” he says.

PartnershipsTh e telecom team doesn’t just have client-provider relationships--they see their customers as their partners in problem solving and developing solutions to each client’s specifi c needs and wants.

“We’re with them from day one of planning, through the development and building phases of every project,” Johnson says. “Th en, we stay with them providing continuing telecommunica-tions support as they come on-line and become producers. Right now, there isn’t a producer on Alaska’s North Slope we don’t provide services to. We are a one-stop communications provider.”

Th rough video conferencing, GCI In-dustrial Telecom can help clients service multiple locations--no matter how re-mote--for employee training, meetings or project management. Where possible, video conferencing also enhances or creates the option of telecommuting, a growing and cost-eff ective means to get-ting more and more jobs accomplished.

Quality client service at the personal level turns into quality telecommuni-cations service. Starting from day one, GCI Industrial Telecom engineers and technicians work with clients to design systems unique to each client’s needs.

Satellite haul on the North Slope.

Photo courtesy of GCI Industrial Telecom

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And, in turn, quality communications can mean that small glitches are seen and corrected or eliminated before they become expensive problems. Monitor-ing sensors on equipment at remote sites can send warnings over the GCI Industrial Telecom network to one of the operations centers and actions can then be set in motion to remedy or re-place the aff ected equipment. Likewise, GCI Industrial Telecom provides the backbone for companies to monitor their own sites and performance.

Focused and Specialized“Th e Industrial Telecom team is a very focused and specialized group,” says Russ Doig, vice president of the Indus-trial Telecom team. “We continue to grow our team of over 100 professional telecom technicians, engineers, project managers, schedulers and documenta-tion specialists to support our Oil Patch Engineering, Procurement and Con-struction and operations eff orts. Th is ‘back offi ce’ support allows our fi eld personnel to perform their work fl aw-lessly and safely throughout the Arctic and Lower 48 states to support our oil

patch clients. We understand the oil and gas business because we are inte-grated into the oil and gas business.”

GCI Industrial Telecom works in some of the most dangerous and chal-lenging environments on the earth-- from remote testing and drilling sites on Alaska’s North Slope to the heavy seas of the Gulf of Mexico. “When you think about the physical environments we and our partners face, you realize reliable, high-quality telecommunica-tions is critical. It can actually be the diff erence between life and death,” Johnson says. “GCI Industrial Telecom has provided engineering, project man-agement and ‘feet-on-the-street’ techni-cal support to our clients during emer-gencies both in Alaska and the Gulf of Mexico. Whether it be a hurricane or a manmade disaster, quickly deployed, reliable communications are a critical part of any response. GCI has a strong track record of successfully providing these services for our partners.”

Array of NetworksGCI Industrial Telecom’s array of net-works in and supporting Alaska is com-

prised of air, land and sea resources con-necting locations all across Alaska and the Lower 48. Its mobile facility, called MERC, or Mobile Emergency Response Center, can be sent to any customer-specifi ed location on short notice to pro-vide satellite voice and Internet connec-tivity as backup during any emergency.

Fiber optic, microwave and satellite networks provide redundancy, reliabili-ty and security from Prudhoe Bay to the Gulf of Mexico. GCI-owned fi ber optic cable stretches from the North Slope through the state’s Interior region and south to Washington state and Oregon. Combined with terrestrial communica-tions, such as microwave links and sat-ellite links, it ensures redundancy and critical reliable communications.

GCI Industrial Telecom has opera-tions centers in Anchorage, Prudhoe Bay and Houston, Texas, serving indus-try clients across the country. “Right now, there are folks in Texas who, be-cause they trust GCI Telecom reliabili-ty, are able to control drill bits at remote sites in Alaska through our networks,” Johnson says. Even the operations cen-ters have back-ups. Anchorage is the

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www.akbizmag.com•Alaska Business Monthly•February2013 45 ■

back-up operations center for Hous-ton. According to GCI, the centers are operational 24 hours a day to support client needs.

Th at reliability also equates to dol-lars--and jobs--here in Alaska where down time at remote sites can cost more than a million dollars a day. Because GCI’s partner/customers include BP, Exxon Mobil, Conoco Phillips, the State of Alaska, the U.S. Defense Depart-ment and the U.S. Coast Guard among many others, reliability and the ability to reroute communications instantly is critical. Lives, safety, production and millions of dollars are at stake.

As a whole, GCI has invested more than $2.4 billion in Alaska communi-cations in the past 30 years, and plans to spend $555 million in Alaska over the next three years. Although a precise number for how much GCI Industrial Telecom will spend isn’t available, it is safe to say that it will be part of every new exploration, providing the next-door quality of communications other companies need to accomplish their ex-ploration and drilling missions.

Solid Safety Record“We’re expecting a very busy year in 2013,” Johnson says, adding: “While we’re on the subject of success, we’re working hard to keep our safety record solid. For having only 100 to 120 em-ployees, reaching more than 1.5 million accident-free hours is a very big deal. We’re proud of it. Very proud.”

Th at sentiment is echoed by a written comment from Doig: “Safety is a criti-cal part of our industrial business. Th is achievement is something we are very proud of as a team. It took a total team eff ort to get here, and we’re not done yet!”

When a businessperson calls a part-ner in Barrow or makes a successful sales pitch to someone in Prudhoe Bay, it is likely that the routes and connec-tions taken to accomplish that will probably include the work of the GCI Industrial Telecom team.

Th e GCI Telecom mission statement sums it up: “GCI Industrial Telecom provides customer-driven and safety-focused communication solutions for operations in the oil, gas and mining industries; leveraging proven, safe and cost-eff ective practices that support profi table results for our customer’s

projects.” Th e members of the Indus-trial Telecom team take pride in them-selves, their customers and contractors when that mission is accomplished.

Th e Internet that people use every day is a physical thing, not a concept: Th ere’s a physical world that sup-ports what many of us see and take for granted as cable television, high-speed electronic mail and Internet service. Part of that physical world for much of the business side of Alaska includes the telecommunications infrastructure that GCI Industrial Telecom is a part of.

Right now, success appears to be theirs,

as the dedicated GCI Industrial Telecom team is meeting their division’s guiding goals—its mission statement.

“In our business, trust is not given—it is earned,” Johnson says. “We work hard to continue to build our team with a focus on our mission, ‘best of class’ employees, and continued safe perfor-mance. By accomplishing those goals, we earn the trust of our clients and bring value to our projects.” R

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oil & gAs

Doyon Doyon Doyon Doyon Doyon Doyon Limited Limited Limited

Pioneers Pioneers Pioneers Frontier Frontier Frontier BasinsBasinsBasins

Middle Earth pushes oil

and gas exploration

in Alaska’s quiet corners

BY ZAZ HOLLANDER

The state’s latest oil and gas ex-ploration incentive program, dubbed Frontier Basins, is also

known as Middle Earth. Set aside fan-tastical images of J.R.R. Tolkien’s world of hobbits and elves. Th is Middle Earth earned the name for its general location between existing incentive programs for oil and gas production on the North Slope and Cook Inlet—and state offi -cials and potential oil and gas produc-ers hope this Middle Earth is very real.

Th e Frontier Basins/Middle Earth program, created by legislation dur-

ing the last session in Juneau, provides major incentives for companies drilling exploratory oil or gas wells or obtaining seismic data in six areas.

Th e state will pay up to 80 percent or $25 million in exploration costs and 75 percent or $7.5 million of seismic costs for qualify-ing work. Any production that results gets a tax break. In return, the state gets access to seismic data otherwise kept confi dential.

Th e statute limited eligibility to sedi-mentary basins in the state’s less-ex-plored and hard-to-reach regions: the Kotzebue and Selawik Basins; Nenana

and Yukon Flats; Emmonak; Glennallen and Copper River area; and the Alaska Peninsula near Egegik and Port Moller.

State offi cials and lawmakers want more seismic information and explora-tion in “frontier” plays otherwise too risky and expensive to work. But they also hope to provide new energy sourc-es for Fairbanks and rural communi-ties throughout the state.

“Around the state there’s all kinds of need for local-use energy,” says Paul Decker, a petroleum geologist with the Alaska Division of Oil & Gas and man-

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www.akbizmag.com•Alaska Business Monthly•February2013 47 ■

ager of the division’s resource evalua-tion section. “Let’s fi nd people willing to explore and take some of the risk out of this exploration.”

Public Player Doyon Limited, the Fairbanks-based Native regional corporation, is the only company so far to publicly announce planned seismic and exploration activ-ity under the new program. Th e com-pany plans to work in the Nenana Basin and Yukon Flats areas. Doyon other-wise wouldn’t be interested in seeking new oil and gas plays in the areas, says Jim Mery, Doyon’s vice president for lands and natural resources.

“Th ey’re very, very risky fi nancially. Th ey’re high-risk propositions,” Mery says. “Really, without the state partici-pation, we wouldn’t be pursuing these projects as aggressively as we are.”

Doyon is currently in the process of permitting a 12,000-foot exploratory well for next summer about 10 miles from the road system in Nenana. Th at well quali-fi es for the 80 percent credit. Th e corpo-ration is starting work on a seven-mile road to access the drill site. Doyon is also conducting a seismic program north of Stevens Village, which also has qualifi ed for the 75 percent credit.

Local geology in the areas is promis-ing, Mery says.

Doyon—with former partners Arctic Slope Regional Corp., Usibelli Energy, Cedar Creek Oil and Gas, and Rampart Energy Co.—already drilled a well on the other side of the long, narrow Nena-na Basin about six miles east of the ex-ploratory well Doyon plans to drill un-der the Frontier Basins program. Th at well wasn’t economic, but it did reveal a rich source rock—a geologic layer that produces hydrocarbons at conditions where the oil and gas can be retrieved.

“Based on seismic information, we know a lot of source rock should be bur-ied deeper where hydrocarbons would be expelled from that rock,” Mery says. “Th at’s a signifi cant motivating factor for us.” Doyon originally entered the Nenana Basin seeking natural gas, but

now considers it an oil and gas play. Th e corporation still expects to fi nd gas, but it’s the oil prospects that really moti-vated Doyon’s involvement, Mery says.

“We still expect to fi nd gas and do something very productive with it in the Interior, but the oil possibilities have really helped drive our decision-making forward,” he says.

‘A Game-Changer’ Th e Frontier Basins program was creat-ed by legislation last session. Rep. Steve Th ompson, R-Fairbanks, sponsored the original bill, House Bill 276, which was ultimately folded into a larger tax in-centive bill, Senate Bill 23. Th ompson’s interest grew out of the proximity of Nenana Basin—the largest area in the incentive program, where Doyon is a major landowner—to Fairbanks.

Th e idea for the incentives arose from Cook Inlet credits initiated by former state Sen. Tom Wagoner of Ke-nai. Wagoner approached Doyon early

“Really, without the state participation, we wouldn’t be pursuing these projects as aggressively as we are.”

—Jim Mery, Vice President for Lands and Natural Resources, Doyon

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Page 48: February-2013-Alaska Business Monthly

■ 48 www.akbizmag.com•Alaska Business Monthly•February2013

on, Thompson got involved, and Doyon worked with legislators to get the legis-lation passed, Mery says.

Thompson’s office also worked with Kotzebue’s Rep. Reggie Joule, says Jane Pierson, Thompson’s chief of staff. Sub-sequent talks with the state Depart-ment of Natural Resources led to the addition of the bill’s requirement that companies release seismic data after a two-year period, she says.

Cook Inlet incentives come with a provision where producers pay back the state once they commercialize wells, Pierson says. That provision did not get included in Thompson’s bill.

“This is more wildcatting. Really, it’s a wildcat bill,” she says. “The idea is the state gets the information too. That was the trade-off.” The pluses, as far as Thomp-son is concerned, are that state incentives should help companies snare investors and maybe also find new energy sources. “If we had an energy supply, whether it’s oil or gas, located this close to Fairbanks, it’s a game-changer,” Pierson says. “If Kot-zebue finds they can commercialize for their use, it’s a game-changer. Alaska’s pretty much an island. The more self-suf-ficient you can be, the better off you are.”

How It Works Doyon, and any other companies in-terested in taking advantage of the Frontier Basins incentives, must first pre-qualify with the Department of Natural Resources Commissioner’s of-fice. Among the considerations: well location and proximity to community in need of local energy; proximity of existing infrastructure to get any oil or gas to market; an operator’s experience and safety record; cost schedule projec-tions; and whether the planned well is designed to take full advantage of the oil or gas potential of the prospect or reach at least 12,000 feet down—either way, getting to the level of economic hy-drocarbon reservoirs. “The state’s not interested in paying the cost for a well

“If we had an energy supply, whether it’s oil or gas, located this close to Fairbanks, it’s a game-changer.”

—Jane Pierson, Rep. Steve Thompson, R-Fairbanks, chief of staff

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Page 49: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 49 ■

for public release within two years of getting the credit. Credits apply to work aft er June 2012 and before 2016.

Th at’s OK with Doyon.“If the state is going to fund 80 per-

cent of the well, they ought to be able to get the data and do with it as they choose,” Mery says.

Th e data requirement gives the state another public benefi t from the pro-gram, Decker says.

Th e two-year delay on seismic data gives explorers the right to operate without any competition knowing what they’re up to. When it’s past, Alaska—

and Alaskans—gets information that can add critical geological and geo-physical data and help draw additional activity in energy-starved regions.

“We get information and the right to make seismic data public to encourage follow-on exploration if the initial ex-plorer throws in the towel,” Decker says, adding that the we means “state govern-ment and other interested companies, but also local citizens in need of fuel.” R

Zaz Hollander is a journalist living in Palmer.

down to 1,500 feet. Th at hardly tells you more than a water well would,” the Oil & Gas Division’s Decker says. “If you’re going to spend this kind of money, back this kind of exploration, you’re going to want to extract some meaningful in-formation about these basins so we can understand the resources better.” Th e Frontier Basins/Middle Earth program provides 80 percent of the cost of total exploration expenditures or $25 mil-lion, whichever is less. It limits that to four wells within the six areas and no more than two wells in any one area.

A well must be more than three miles from a pre-existing well to make sure the program encourages new explora-tion rather than subsidizing existing operations. “Th is is very generous to get them through the highest risk part, which is always with the chance you drill a well and fi nd nothing,” Decker says. Companies doing seismic analy-sis get compensated by the state for 75 percent of total costs or $7.5 million. Seismic work is limited to four projects, with one in each of the six areas.

Companies conducting exploration get a 4 percent tax rate for any new pro-duction that results, for seven years.

Until January, the oil tax rate for Middle Earth was the same as the rate on the North Slope, according to Destin Greeley, with the state tax division. Un-der the new incentive, the tax cap is 4 percent on gross. Th e old tax was based off a net amount. Th ose minor diff er-ences add up quickly, offi cials say.

Potential producer Doyon says it’s the pairing of state incentives with future tax breaks that make the program so appealing.

Shhhh ... Other companies besides Doyon may be talking with the state about tak-ing advantage of the Frontier Basins incentives, but offi cials can’t say. Con-fi dentiality constraints bar the state from releasing any information about exploration or seismic activity. As of December 2012, DNR had heard from several diff erent companies about four diff erent areas. Th e new law, however, requires the state to release all informa-tion about the companies involved and what they’re fi nding during explora-tion. All data from drilling and seismic work must be turned over to the state

Page 50: February-2013-Alaska Business Monthly

■ 50 www.akbizmag.com•Alaska Business Monthly•February2013

Kasegalu

kLagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Beaufor t S ea

Teshekpuk Lake

River

Utukok River

Ivisaruk

Kuk

River

Colville River

River

CreekEast Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Ri

ver

2014

Mea

de

Rive

r

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Ri

ver

Fish

Cree

k

Avalik River

Etiv

luk

Utukok

River

Rive

r

Kaolak

River Inigok Creek

Kogosukruk

Kugrua

Kealok

Creek

Kikiakro

rak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

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1617 14

27

1026

131819211220

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41 4042

2922

39

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3124

33 3225

101314

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43

2 3

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38 37 36 35

4 5 6 7 8 9 10

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8

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66

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8 8

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11

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14

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32

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13

12 12

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16

16

20

31

12

12

34

3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W70

°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE

oil & gAs

Winter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaWinter Drilling in AlaskaAlmost shuttered by high state taxes and the feds

BY MIKE BRADNER

This year’s winter exploration season on the North Slope looks to be another modest one. Th ree rigs are contracted to

work on exploration drilling in areas west and northwest of the producing Prudhoe Bay and Kuparuk River fi elds. A fourth will be drilling far to the southwest, near Umiat.

Th ree of the rigs contracted are by one com-pany, Repsol. Th e fourth is by Linc Energy, an Australian independent. Exploration drilling in northern Alaska is typically done in winter when the tundra is frozen and drilling rigs and equipment can be moved overland.

Overall it is not a bad season compared to two years ago when only one rig worked on exploration drilling. Th ings may get better be-

cause two other companies may be drilling test wells. Th ey are Brooks Range Petroleum and Great Bear Petroleum, both Alaska-based in-dependent companies—but those plans aren’t certain yet.

Four rigs at work, besides those drilling pro-duction wells in the producing fi elds, is not a bad season. However, many feel there should be far more exploration activity on the North Slope given the high geologic potential of the region, the high level of crude oil prices, and particularly the generous state exploration in-centives that can pay as much as 50 percent to 70 percent of the cost of a well.

Most people in industry, however, blame the lack of more activity on the state’s high oil and

Kasegalu

kLagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Beaufor t S ea

Teshekpuk Lake

River

Utukok River

Ivisaruk

Kuk

River

Colville River

River

CreekEast Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Ri

ver

2014

Mea

de

Rive

r

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Ri

ver

Fish

Cree

k

Avalik River

Etiv

luk

Utukok

River

Rive

r

Kaolak

River Inigok Creek

Kogosukruk

Kugrua

Kealok

Creek

Kikiakro

rak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

11

1617 14

27

1026

131819211220

28

41 4042

2922

39

3423

3124

33 3225

101314

12

32

24 2313

27 2622

1425

12 1021

281920 18

29

17

31

16

43

2 3

5

38 37 36 35

4 5 6 7 8 9 10

88

8

4

4

55

9

5

9

9

77

7

33

3

2 2

6 6

6

66

6

22

2

33

3

7 7

7

99

9

55

5

4 4

4

8 8

8

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11

11 11

11

12

33

33

1313

17

13

21

10 10

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14

22

31

14

10

10

19

23

32

32

13

12 12

12

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16

20

31

12

12

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3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W

70°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE

Kasegalu

kLagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Beaufor t S ea

Teshekpuk Lake

River

Utukok River

Ivisaruk

Kuk

River

Colville River

River

CreekEast Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Ri

ver

2014

Mea

de

Rive

r

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Ri

ver

Fish

Cree

k

Avalik River

Etiv

luk

Utukok

River

Rive

r

Kaolak

River Inigok Creek

Kogosukruk

Kugrua

Kealok

Creek

Kikiakro

rak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

11

1617 14

27

1026

131819211220

28

41 4042

2922

39

3423

3124

33 3225

101314

12

32

24 2313

27 2622

1425

12 1021

281920 18

29

17

31

16

43

2 3

5

38 37 36 35

4 5 6 7 8 9 10

88

8

4

4

55

9

5

9

9

77

7

33

3

2 2

6 6

6

66

6

22

2

33

3

7 7

7

99

9

55

5

4 4

4

8 8

8

1111

11

11 11

11

12

33

33

1313

17

13

21

10 10

1414

14

22

31

14

10

10

19

23

32

32

13

12 12

12

16

16

20

31

12

12

34

3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W

70°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE

Kasegalu

kLagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Beaufor t S ea

Teshekpuk Lake

RiverUtukok River

Ivisaruk

Kuk

River

Colville River

River

CreekEast Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Ri

ver

2014

Mea

de

Rive

r

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Ri

ver

Fish

Cree

k

Avalik River

Etiv

luk

Utukok

River

Rive

r

Kaolak

River Inigok Creek

Kogosukruk

Kugrua

Kealok

Creek

Kikiakro

rak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

11

1617 14

27

1026

131819211220

28

41 4042

2922

39

3423

3124

33 3225

101314

12

32

24 2313

27 2622

1425

12 1021

281920 18

29

17

31

16

43

2 3

5

38 37 36 35

4 5 6 7 8 9 10

88

8

4

4

55

9

5

9

9

77

7

33

3

2 2

6 6

6

66

6

22

2

33

3

7 7

7

99

9

55

5

4 4

4

8 8

8

1111

11

11 11

11

12

33

33

1313

17

13

21

10 10

1414

14

22

31

14

10

10

19

23

32

32

13

12 12

12

16

16

20

31

12

12

34

3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W

70°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE

Kasegaluk Lagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Bea ufor t S ea

Teshekpuk Lake

River

Utukok River

Ivisaruk

Kuk

River

Colville River

River

Creek

East Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Rive

r

2014

Meade

R

iver

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Rive

r

Fish

Cree

k

Avalik River

Etivl

uk

Utukok

River

Rive

r

Kaolak Rive

r Inigok Creek

Kogosukruk

Kugrua

Kealok C

reek

Kikiakrorak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

11

1617 14

27

1026

131819211220

28

41 4042

2922

39

3423

3124

33 3225

101314

12

32

24 2313

27 2622

1425

12 1021

281920 18

29

17

31

16

43

2 3

5

38 37 36 35

4 5 6 7 8 9 10

88

8

4

4

55

9

5

9

9

77

7

33

3

2 2

6 6

6

66

6

22

2

33

3

7 7

7

99

9

55

5

4 4

4

8 8

8

1111

11

11 11

11

12

33

33

1313

17

13

21

10 10

1414

14

22

31

14

10

10

19

23

32

32

13

12 12

12

16

16

20

31

12

12

34

3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W

70°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE

Kasegalu

kLagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Beaufor t S ea

Teshekpuk Lake

River

Utukok River

Ivisaruk

Kuk

River

Colville River

River

CreekEast Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Ri

ver

2014

Mea

de

Rive

r

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Ri

ver

Fish

Cree

k

Avalik River

Etiv

luk

Utukok

River

Rive

r

Kaolak

River Inigok Creek

Kogosukruk

Kugrua

Kealok

Creek

Kikiakro

rak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

11

1617 14

27

1026

131819211220

28

41 4042

2922

39

3423

3124

33 3225

101314

12

32

24 2313

27 2622

1425

12 1021

281920 18

29

17

31

16

43

2 3

5

38 37 36 35

4 5 6 7 8 9 10

88

8

4

4

55

9

5

9

9

77

7

33

3

2 2

6 6

6

66

6

22

2

33

3

7 7

7

99

9

55

5

4 4

4

8 8

8

1111

11

11 11

11

12

33

33

1313

17

13

21

10 10

1414

14

22

31

14

10

10

19

23

32

32

13

12 12

12

16

16

20

31

12

12

34

3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W

70°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE

Kasegalu

kLagoon

Icy Cape

Point Belcher Peard Bay

Point Franklin

Point Barrow

Tangent Point

Cape SimpsonPitt Point

Cape Halkett

Atigaru Point

Harrison Bay

Smith BayAdmiralty

Bay

Dease

Inlet

Oliktok Point

A R C T I C O C E A N

Chukch i Sea

Beaufor t S ea

Teshekpuk Lake

River

Utukok River

Ivisaruk

Kuk

River

Colville River

River

CreekEast Fork

Etivluk River

Colville River

Rive

rRi

ver

Creek

Rive

rRi

ver

River

River

River

TESHEKPUK LAKESPECIAL AREA

UTUKOK RIVER UPLANDS SPECIAL AREA

COLVILLE RIVER SPECIAL AREA

Umiat

PEARD BAYSPECIAL AREA

KASEGALUK LAGOONSPECIAL AREA

Kilig

wa

Ri

ver

2014

Mea

de

Rive

r

Ikpi

kpuk

Awuna River

Judy

Inaru

Topa

goru

k

Ri

ver

Fish

Cree

k

Avalik River

Etiv

luk

Utukok

River

Rive

r

Kaolak

River Inigok Creek

Kogosukruk

Kugrua

Kealok

Creek

Kikiakro

rak

Otuk

Ublutuo

ch (T

ingmiaq

siugv

ik)

Alak

tak

Tunalik

432 527 389 46 56 7

489 7

3 262 53 4 7

6

49 8 2357 6

5

8

4 3 2

8

11

11

11

1617 14

27

1026

131819211220

28

41 4042

2922

39

3423

3124

33 3225

101314

12

32

24 2313

27 2622

1425

12 1021

281920 18

29

17

31

16

43

2 3

5

38 37 36 35

4 5 6 7 8 9 10

88

8

4

4

55

9

5

9

9

77

7

33

3

2 2

6 6

6

66

6

22

2

33

3

7 7

7

99

9

55

5

4 4

4

8 8

8

1111

11

11 11

11

12

33

33

1313

17

13

21

10 10

1414

14

22

31

14

10

10

19

23

32

32

13

12 12

12

16

16

20

31

12

12

34

3432

16

33

34

31

4

2

17

17

10

29

1N1E

1N1W

1S1W

15S1W

15S1E

1N15W

1N30W

15N15W

15N30W

1S15W

1S30W

1S1E

30N1W

30N1E

30N15W

Barrow

Nuiqsut

Atqasuk

150°W

155°W

155°W

160°W

160°W

70°N

70°N

68°N

No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data for individual use or aggregate use with other data, or for purposes not intended by BLM. Spatial information may not meet National Map Accuracy Standards. This information may be updated without notification. For official land status information refer to Cadastral Survey plats, Master Title Plats and land status case-files.

0 12 24 36 486Miles

Projection: Albers Conic Equal Area referencing NAD83

Bureau of Land Management - Alaska

B-2Preferred Alternative

Oil & Gas

Special AreasColville River

Teshekpuk Lake

Peard Bay

Kasegaluk Lagoon

Unavailable to Leasing and no new non-subsistenceinfrastructure

Utukok River Uplands

Land Status

Native Selected

NPR-A Boundary

Native Patent or IC

Deferral Area

Unavailable to Leasing

K-12 Western Arctic Herd Habitat Area

Additional Protections that Applyin Select Biologically Sensitive Areas

K-1 River: No permanent or temporary facilities in stream bedNo permanent facilities within listed distance from river exceptessential pipelines and road crossings

K-6 Coastal Area: Special restrictions on facilitydevelopment in coastal waters and within 1 mile of coast

National PetroleumReserve - Alaska

August 13, 2012

National PetroleumReserve - Alaska

Arctic National Wildlife Refuge

Fairbanks

Anchorage

A L A S K A

INSET MAP NOT TO SCALE Map

: U.S

. Dep

artm

ent

of t

he

Inte

rio

r, B

ure

au o

f Lan

d M

anag

emen

t

Page 51: February-2013-Alaska Business Monthly

www.akbizmag.com•Alaska Business Monthly•February2013 51 ■

gas production tax, which basically takes most of the profi t if an explorer is lucky enough to make a fi nd.

Th e state’s high tax rate wouldn’t be so bad if there were enormously profi t-able giant oilfi elds on the North Slope waiting to be discovered, but there aren’t. Th e outlook is instead for dis-coveries that are modest in size, as ac-knowledged by explorers like Repsol and Brooks Range Petroleum, although there is always hope for a larger fi nd.

Drilling FactorsWhen the modest expectation is com-bined with the high state tax rate—and with the North Slope’s notorious high costs, particularly for remote wells where temporary ice roads and ice pads are needed—there’s no wonder few com-panies are looking for oil on the slope.

Th e state’s exploration incentives are only one factor a company weighs when considering exploration. Most important is the resource potential and whether lands with potential are available. Even though the prospects are for only modest discoveries in the central North Slope area there is a good possibility that a number of discoveries can be made. If enough of these are made in a reasonably com-pact area that can be served by an extension of pipelines and road infra-structure, a signifi cant amount of oil production could occur.

Th e federal government has made lands off -limits to drilling in two places where the prospects for oil fi nds are ac-tually very inviting: the coastal plain of the Arctic National Wildlife Refuge in the east North Slope and coastal

areas of the northwest National Petro-leum Reserve-Alaska in the west. On ANWR, where some geologists believe giant fi elds could be discovered, Alas-kans have worked for years to open the coastal plain of the refuge. Congres-sional approval is required for this, but there has been no luck in getting it. Concerning NPR–A, in December 2012 the Department of the Interior fi nalized its long-range land management plan for the reserve that eff ectively put the coastal areas, considered to off er the best chances for signifi cant discoveries, into restricted areas.

To off set these challenges, the indus-try acknowledges, the State of Alaska has done a good job of making lands available for exploration on state lands in the central slope area, including the state-owned submerged lands off shore

Four rigs at work, besides those drilling production wells in the producing fields, is not a bad season. However, many feel there should be far more exploration activity on the North Slope given the high geologic potential of the region, the high level of crude oil prices, and particularly the generous state exploration incentives that can pay as much as 50 percent to 70 percent of the cost of a well.

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Page 52: February-2013-Alaska Business Monthly

■ 52 www.akbizmag.com•Alaska Business Monthly•February2013

to the three-mile limit. Th e Alaska Di-vision of Oil and Gas annual “areawide” lease sales are typically held in the late fall, and make all unleased state lands available for leasing. In recent years the U.S. Bureau of Land Management has matched the state’s initiative with its own areawide off erings of unleased federal lands in NPR–A, and usually on the same day as the state sale.

Having the state and federal NPR–A lands made available on a regular, de-pendable basis has greatly helped the industry in planning its exploration; the only hitch in the case of the national petroleum reserve is that the best lands are taken off the table.

Test Wells As for this winter, Repsol USA was to be drilling three test wells in January west of the producing Prudhoe Bay and Ku-paruk fi elds with rigs mobilized as soon as snow and ice roads to the remote sites were completed, according to Bill Hard-ham, the company’s Alaska manager.

Separately, the other test drilling program under way by Linc Energy, an Australian independent, is at Umiat, a remote site in the southeast corner of the NPR-A. Th e Umiat drilling is to evaluate a small oil deposit discovered but never developed in the 1950s by federal agencies exploring the reserve, Linc Energy has said in briefi ngs.

Umiat involves complex logistics, in-cluding a snow and ice road about 90 miles in length. “We’re in full mobilization now. Th e ice road is complete and we’re moving the rig to Umiat now,” says Paul Ludwig, spokesman for the company.

Th e known oil deposit at Umiat found years ago by the federal government is very shallow. Linc Energy and the pre-vious owners of federal leases at Umiat

believe the shallow oil can be tapped with horizontal wells.

More importantly, they believe there is more oil in reservoir intervals that are deeper and that were not tested in the earlier old wells. Th e purpose of this winter’s drilling is to further delineate the known shallow Umiat oil accumula-tion and to test for oil at deeper depths.

Two other independents, both Alas-ka-based, also hope to drill test wells this winter depending on their ability to secure suitable rigs.

Brooks Range Petroleum hopes to test a prospect west of the Kuparuk River fi eld near another well it drilled two years ago. Th e company had a rig lined up to test its prospect but the unit proved too heavy to move across a fro-zen river crossing. Th e company is now seeking a lighter-weight rig, but still hopes to drill the well this winter, says Jack Laasch, external aff airs vice presi-dent for Brooks Range.

Great Bear Petroleum, the second company, plans further drilling on two wells drilled last fall to test potential shale oil targets south of Prudhoe Bay. Great Bear has drilled vertical wells at both sites to extract shale core samples but needs to drill horizontal extensions to do fracturing and oil production tests, according to Pat Galvin, a com-

pany vice president.Great Bear believes the North Slope

shale rock formations, which are the source rocks for the large oil fi elds now producing, still hold a lot of oil. If that oil can be produced through hydraulic fracturing and the use of horizontal production wells, shale oil might be-come important for the North Slope just as it has in North Dakota and Texas.

However, it’s still a “science test,” Great Bear’s president, Ed Duncan, has said in past presentations. Key tech-nical questions need to be answered, mainly the quality of the North Slope shale rock and whether it can be frac-tured in a way that allows oil to fl ow to production wells.

Beyond that, there are questions

about cost. Th e North Slope is an ex-pensive place to operate and shale oil production would require many wells, production pads and surface facilities and utilities. Th e shale oil wells tend to produce at lower volumes, so once tech-nical issues are resolved the next ques-tion is whether the oil can be produced profi tably given the high costs.

Repsol’s PlanRepsol’s manager, Bill Hardham, says the company’s plan for this winter is to complete a fi ve-well program the compa-ny began last year to evaluate lease rights it acquired in a buy-in with Armstrong Oil and Gas, a Denver independent.

Repsol had planned to drill three wells last winter but drilling on one prospect, on the Colville River delta, was interrupted when drilling crews hit a shallow gas pocket that caused a gas blowout. Th ere were no injuries or seri-ous damage, but the well could not be completed, Hardham says.

Th e company will return to that pros-pect again this winter although the surface location of the rig will be moved slightly and the well is renamed, Hardham says.

Repsol’s exploration in Alaska is be-ing watched closely because it is the fi rst new major company in years to enter the North Slope with exploration pro-

grams. Shell has an aggressive off shore exploration in the federal Outer Conti-nental Shelf but onshore exploration has been at modest levels for several years.

Hardham says Repsol is encouraged by exploration results to date but would not give specifi cs. He acknowledges the prospects being tested are modest in size and not potential giant oil fi elds. “We are very confi dent we will fi nd oil. Previous drilling in these areas give us confi dence. Th e question is how well these deposits will produce,” he says. R

Mike Bradner is publisher of the Alaska Legislative Digest and is a former legislator and Speaker of the House.

Having the state and federal NPR–A lands made available on a regular, dependable basis has greatly helped the industry in planning its exploration; the only hitch in the case of the national petroleum reserve is that the best lands are taken off the table.

Repsol’s exploration in Alaska is being watched closely because it is the first new major company in years to enter the North Slope with exploration programs.

Page 53: February-2013-Alaska Business Monthly

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Page 54: February-2013-Alaska Business Monthly

■ 54 www.akbizmag.com•Alaska Business Monthly•February2013

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1337

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1259 1251

1243

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1170

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1130 1122

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1065 1057 1049 1041

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928 920 912 904

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865 857 849 841

834827

819 811 803

795 787

779 771

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660652644636628620612

604596588580572564

555

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434426418410402394386378

370362354346338330322

313305297289281273265257249

241233225217209201193185177

169161153145137129121113105

9790

827466585042342618102 5

7

14 22 30 38 46 54 62 70 78

86 93

100

102 109 117 125 133 141 149 157 165 173

181 189 197 205 213 221 229 237 245

253 261 269 277 285 293 301 309

317

319

326 334 342 350 358 366 374

382 390 398 406 414 422 430

438 446 454 462 470 478 486 494

502 510 518 526 534 542 550

552

559

561 568 576 584 592 600 608

616 624 632 640 648 656 664

672 680 688 696 704 712713

714

721 729 737

744

758

760

768

775

782

784

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807815823

830831

845853861869

870

876

878885

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940948956

963

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10121020

1028

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10451053106110691077

10851093

1101

1102

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11181126113411421150

11581166

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12061214

1222

12301240124712551263

12711279

1287

129513031316

1323 1324

13251334

13501351

13861387

1388

3 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80

84 88 91

103 107 111 115 119 123 127 131 135 139 143 147 151 155 159 163167 171

175 179 183 187 191 195 199 203 207 211 215 219 223 227 231 235 239243

247 251 255 259 263 267 271 275 279 283 287 291 295 299 303 307 311

314

320 324 328 332 336 340 344 348 352 356 360 364 368 372 376

380 384 388 392 396 400 404 408 412 416 420 424 428 432 436

440 444 448 452 456 460 464 468 472 476 480 484 488 492 496

500 504 508 512 516 520 524 528 532 536 540 544 548

556

562 566 570 574 578 582 586 590 594 598 602 606 610

614 618 622 626 630 634 638 642 646 650 654 658 662 666

670 674 678 682 686 690 694 698 702 706 710

719 723 727 731 735 739

742 746

756

761

763

769773

785789793797800

805809813817821

824

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843847851855859863867

879883887891895

902906910914918922926930934938942946950954958

965

97097497898298699099499810021006101010141018102210261030

1033

10391043104710511055105910631067107110751079108310871091109510991103

110811121116

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1168

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12281232

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12891293

12971300

1306

13111320

13291338

13521353

1383

1389

1

95

98

315

316

553554

557

558

757

764765

777

780781

801

836839

871

872

874

897 898

961

962966 967

11041105

1326

1327

1330

13311335 13361339 1340

1384

1385

4

6

8

9

11

13

15

17

19

21

23

25

27

29

31

33

35

37

39

41

43

45

47

49

51

53

55

57

59

61

63

65

67

69

71

73

75

77

79

81 83

85

87

89

92

94

96

99

101

104

106

108

110

112

114

116

118

120

122

124

126

128

130

132

134

136

138

140

142

144

146

148

150

152

154

156

158

160

162

164

166

168

170

172

174

176

178

180

182

184

186

188

190

192

194

196

198

200

202

204

206

208

210

212

214

216

218

220

222

224

226

228

230

232

234

236

238

240

242

244

246

248

250

252

254

256

258

260

262

264

266

268

270

272

274

276

278

280

282

284

286

288

290

292

294

296

298

300

302

304

306

308

310

312

318 321

323

325

327

329

331

333

335

337

339

341

343

345

347

349

351

353

355

357

359

361

363

365

367

369

371

373

375

377

379

381

383

385

387

389

391

393

395

397

399

401

403

405

407

409

411

413

415

417

419

421

423

425

427

429

431

433

435

437

439

441

443

445

447

449

451

453

455

457

459

461

463

465

467

469

471

473

475

477

479

481

483

485

487

489

491

493

495

497

499

501

503

505

507

509

511

513

515

517

519

521

523

525

527

529

531

533

535

537

539

541

543

545

547

549

551

560

563

565

567

569

571

573

575

577

579

581

583

585

587

589

591

593

595

597

599

601

603

605

607

609

611

613

615

617

619

621

623

625

627

629

631

633

635

637

639

641

643

645

647

649

651

653

655

657

659

661

663

665

667

669

671

673

675

677

679

681

683

685

687

689

691

693

695

697

699

701

703

705

707

709

711

715716

718

720

722

724

726

728

730

732

734

736

738

740 743

745

755 759

762

766767

770

772

774

776778

783786

788

790

792

794

796

798

802

804

806

808

810

812

814

816

818

820

822825 826828 829833837 838

840

842

844

846

848

850

852

854

856

858

860

862

864

866

868875

877

880

882

884

886

888

890

892

894

896

900901

903

905

907

909

911

913

915

917

919

921

923

925

927

929

931

933

935

937

939

941

943

945

947

949

951

953

955

957

959

969

971

973

975

977

979

981

983

985

987

989

991

993

995

997

999

1001

1003

1005

1007

1009

1011

1013

1015

1017

1019

1021

1023

1025

1027

1029

10311034 1035

10371040

1042

1044

1046

1048

1050

1052

1054

1056

1058

1060

1062

1064

1066

1068

1070

1072

1074

1076

1078

1080

1082

1084

1086

1088

1090

1092

1094

1096

1098

1100

1107

1109

1111

1113

1115

111711191121

1123

1125

1127

1129

1131

1133

1135

1137

1139

1141

1143

1145

1147

1149

1151

1153

1155

1157

1159

1161

1163

1165

1167

1169

1171

1173

1175

1177

1179

1181

1183

1185

1187

1189

1191

1193

1195

1197

1199

1201

1203

1205

1207

1209

1211

1213

1215

1217

1219

1221

1223

1225

1227

1229

1231

1233

12351237

1238

1239

1242124412461248

1250

1252

1254

1256

1258

1260

1262

1264

1266

1268

1270

1272

1274

1276

1278

1280

1282

1284

1286

1288

1290

12921294

1296

129813011302

1304

1305

1307 1308

1310

1312

13131314

1315

1317131813211322

1332

1333

1348134913541355

147°0'0"W

147°0'0"W

148°30'0"W

148°30'0"W

150°0'0"W

150°0'0"W

151°30'0"W

151°30'0"W

153°0'0"W

153°0'0"W

154°30'0"W

154°30'0"W

156°0'0"W

156°0'0"W

69°3

0'0"

N

69°3

0'0"

N

69°0

'0"N

69°0

'0"N

68°3

0'0"

N

68°3

0'0"

N

Oil and Gas Lease SaleNorth Slope Foothills Areawide 2012 Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

North Slope FoothillsRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

*Bidders are solely responsible for determining the availibility ofacreage prior to submitting a bid.

Arctic NationalWildlife Refuge

National PetroleumReserve-Alaska

Colville River

Gates of the ArcticNational Park

Trans-Alaska

Pipeline

Map Location 0 30 60 90 12015Kilometers

Leased Tracts

Available Tracts

Federal Land

Native Land

North Slope Foothills Apparent High BidderAnadarko Petroleum Corporation

0 20 40 60 8010Miles

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'0"N

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'0"N

69°3

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69°3

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N

Oil and Gas Lease SaleNorth Slope Areawide 2012W Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

North SlopeRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

0 20 40 60 8010Miles

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

Harrison Bay

National PetroleumReserve- Alaska

Arctic National Wildlife Refuge

TeshekpukLake

*Bidders are solely responsible for determining the availability ofacreage prior to submitting a bid.

Trans-Alaska Pipeline

Canning River

Saga

vani

rkto

k Ri

ver

Flaxman Island

Simpson Lagoon

Map Location

Colville River

Camden Bay

Cape Halkett

Leased Tracts

Available Tracts

NS-South (Available)

Deferred

ASRC Settlement Boundary

ANWR 1002 Area

Federal Land

Native Land

Alaska Seaward Boundary

Royalty Boundary

PrudhoeBay

0 30 60 90 12015Kilometers

1002 Area

North Slope Apparent High Bidders70 & 148, LLC

AVCG, LLC

Bachner/Forsgren

Conoco/BPXP/Chevron/ExxonMobilAK

ConocoPhillips Alaska, Inc.

Donkel/Cade

Great Bear Petroleum Ventures II, LLC

Paul M. Basinski

Repsol E & P USA, Inc.

Samuel Cade

Savant Alaska, LLC

Woodstone Resources, LLC

oil & gAs

!

!!

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KaktovikDeadhorse

Nuiqsut

140°0'0"W

142°0'0"W

142°0'0"W

144°0'0"W

144°0'0"W

146°0'0"W

146°0'0"W

148°0'0"W

148°0'0"W

150°0'0"W

150°0'0"W

152°0'0"W

152°0'0"W

154°0'0"W

154°0'0"W

156°0'0"W

156°0'0"W

71°0

'0"N

71°0

'0"N

70°0

'0"N

70°0

'0"N

Oil and Gas Lease SaleBeaufort Sea Areawide 2012W Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

Beaufort SeaRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

0 30 60 90 12015Miles

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

National PetroleumReserve- Alaska

Arctic NationalWildlife Refuge

TeshekpukLake

Admiralty Bay Smith

Bay

HarrisonBay

Prudhoe Bay

Alas

kaC

anad

a

State/ASRC Settlement Boundary

Leased Tracts

Available Tracts

Adjacent to Federal Lands (Available)

Deferred

Federal Land

Native Land

ASRC Settlement Boundary

ANWR 1002 Area

Alaska Seaward Boundary

Beaufort Sea

Tran

s-Al

aska

Pip

elin

e

DaltonHighway

Camden Bay

Beaufort Lagoon

Canning River

Colville

River

Sagavanirktok

River

Map Location0 40 80 120 16020

Kilometers

1002 Area

Beaufort Sea Apparent High BiddersDonkel/Cade

Donkel/Lowe

NordAq Energy, Inc.

Realeza Del Spear, LP

Repsol E & P USA, Inc.

Samuel Cade00 3030 6060 90901515

00 4040 8080 120120 1601602020KilometersKilometers

!

!!

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541 542545 546

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552553

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516517

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562564

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116

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02N009W 02N008W 02N007W 02N006W

03N009W 03N008W 03N007W 03N006W 03N005W

04N009W 04N008W 04N007W 04N006W 04N005W

03N004W 03N003W 03N002W 03N001W 03N001E 03N002E 03N003E 03N004E 03N005E

KaktovikDeadhorse

Nuiqsut

140°0'0"W

142°0'0"W

142°0'0"W

144°0'0"W

144°0'0"W

146°0'0"W

146°0'0"W

148°0'0"W

148°0'0"W

150°0'0"W

150°0'0"W

152°0'0"W

152°0'0"W

154°0'0"W

154°0'0"W

156°0'0"W

156°0'0"W

71°0

'0"N

71°0

'0"N

70°0

'0"N

70°0

'0"N

Oil and Gas Lease SaleBeaufort Sea Areawide 2012W Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

Beaufort SeaRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

0 30 60 90 12015Miles

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

National PetroleumReserve- Alaska

Arctic NationalWildlife Refuge

TeshekpukLake

Admiralty Bay Smith

Bay

HarrisonBay

Prudhoe Bay

Alas

kaC

anad

a

State/ASRC Settlement Boundary

Leased Tracts

Available Tracts

Adjacent to Federal Lands (Available)

Deferred

Federal Land

Native Land

ASRC Settlement Boundary

ANWR 1002 Area

Alaska Seaward Boundary

Beaufort Sea

Tran

s-Al

aska

Pip

elin

e

DaltonHighway

Camden Bay

Beaufort Lagoon

Canning River

Colville

River

Sagavanirktok

River

Map Location0 40 80 120 16020

Kilometers

1002 Area

Beaufort Sea Apparent High BiddersDonkel/Cade

Donkel/Lowe

NordAq Energy, Inc.

Realeza Del Spear, LP

Repsol E & P USA, Inc.

Samuel Cade

!

!!

514515

480

447448 422

408

401

389

375

361

348349 336

320321

322

307308

300301

279

267

268269

246247

240241

231

211

212

173174

175

160

155

156

141

130 115

117107 9798

87

8081

73

66

1

1920

21

353637

39404143

4647

48

53

57

59

63

67

68

74

78

798283

8694104

121

123124

133134

139140

147

150

165

172

185

192

196197198

204

205206

207

216

228

236237238

239

245

250

251252253

262

273

284285286

287

295

296

305

313

316

317

326

329

335

342354

357358

366

369370371

380

383384385

395411

414

415416

421

18

425

434

437

438

443444

451

454

458

461

465

475

477

488

489490

495496

499500501

502503505

506507508509510511

512513

520

531

533538

539

544

548

549

559560

563

571

9099110

118

129

135

144

161

168

178

179

188

199

208

213

219

256

263

270

280

297

302

303

309

339

345

350

362

376

392

398

429

455466

471

478

481

483

485

491

493

527

534

540

22

23

27

29

55

64

65

75

84

100101

102151152

153 154

157158

162

163164

176180181

182

200201

202

220

221

222 223

224

225

226

232

233

234

242243

248249

257258

259260

264

265266

275

281282283

288289

290291

304

310311

312

318319

324325

330331

332 333

351352

353

359

360

363364365

372373

374

377378379

386387388

402

403404405

417

418419

431

439440

445

446

449450462

467

468

472

484

486

487

497

521523

528

529

543

10

11

45

12

13

14151617

24

25

26

2830

3132333438

56

85159

227

274

334

430

58

606162

72

76

69

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114

95

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191 166167

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189190

193194

195

209210

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215217

218

235

229230

244

261

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278

271272292

276

277

293294

306

323

298299

314315327328

337338

340341

343

344346

347

355356

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381382

390391

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397399

400

406407409410

412413420

423

424

426427

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432433

435436

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457

452

453

456463459

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464469

494

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474

476

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504

536

561

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532535

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541 542545 546

547

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552553

554555

556

557558

565

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567 568

23678

9

4244

45

495051

52

54

516517

518

519

524

525526

530

562564

569570

572

573

116

122

125

126127128

119

11N018E

12N017E12N020E 12N021E

13N017E 13N018E 13N019E

14N017E

08N033E08N034E

08N035E08N036E

08N037E

09N033E09N034E

09N035E09N036E

10N032E10N033E

10N034E10N035E

10N036E

04N041E04N042E

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06N038E

05N044E

06N039E06N040E

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07N040E07N041E

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09N037E09N038E

07N017E 07N018E 07N019E 07N020E 07N021E

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09N017E 09N018E 09N019E 09N020E 09N021E

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07N024E

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08N030E

07N030E

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07N031E

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04N034E04N035E

04N036E04N037E

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07N032E07N033E

07N034E07N035E

07N036E07N037E

08N032E

01N041E01N042E

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06N017E

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04N030E

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02N030E

01S042E01S043E

01S044E01S045E

03N034E

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01N034E

03N035E

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01N035E

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21N014W21N015W

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24N016W24N017W

17N007W 17N006W 17N005W

18N008W18N009W

18N005W 18N004W

19N008W19N009W19N007W 19N006W 19N005W 19N004W

17N017W

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19N017W

20N017W

16N017W

17N016W

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16N016W

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20N013W

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21N012W

22N012W

17N012W

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19N012W

20N012W

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21N011W

17N011W

18N011W

19N011W

20N011W

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21N010W

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18N010W

19N010W

20N010W

16N010W

14N004W 14N003W 14N002W 14N001W 14N001E 14N002E

15N004W 15N003W 15N002W 15N001W 15N001E 15N002E

16N004W 16N003W 16N001W 16N001E

17N004W 17N003W 17N002W 17N001W 17N001E

18N001W

19N003W 19N002W 19N001W

20N003W 20N002W 20N001W

14N008W14N009W14N007W 14N006W 14N005W

15N008W15N009W15N007W 15N006W 15N005W

16N008W16N009W16N007W 16N006W 16N005W

13N014W13N015W

13N016W13N017W

14N014W14N015W

14N016W14N017W

15N014W15N015W

15N016W15N017W

12N006E 12N007E 12N008E 12N009E 12N010E 12N011E 12N012E

14N006E

15N007E 15N008E 15N009E 15N010E 15N011E 15N012E

09N014W09N015W

09N016W09N017W

10N014W10N015W

10N016W10N017W

11N014W11N015W

11N016W11N017W

12N014W12N015W12N016W

12N017W

13N013W

14N013W

15N013W

09N013W

10N013W

11N013W

12N013W

13N012W

14N012W

15N012W

09N012W

10N012W

11N012W

12N012W

13N011W

14N011W

15N011W

09N011W

10N011W

11N011W

12N011W

13N010W

14N010W

15N010W

09N010W

10N010W

11N010W

12N010W

08N008W08N009W08N007W 08N006W 08N005W

09N008W09N009W09N007W 09N006W 09N005W

10N008W10N009W10N007W 10N006W 10N005W

11N008W11N009W11N007W 11N006W 11N005W

12N008W12N009W12N007W 12N006W 12N005W

13N008W13N009W13N007W 13N006W 13N005W

14N013E

11N013E

08N013E

10N013E

07N013E

09N013E

14N014E

08N014E

10N014E

07N014E

09N014E

14N015E

08N015E

10N015E

07N015E

09N015E

14N016E

08N016E

10N016E

07N016E

09N016E

11N010E

08N010E

10N010E

07N010E

09N010E

11N011E

08N011E

10N011E

07N011E

09N011E

11N012E

08N012E

10N012E

07N012E

09N012E

11N006E

10N006E

08N006E

09N006E

11N007E

10N007E

08N007E

09N007E

07N007E

11N008E

08N008E

10N008E

07N008E

09N008E

11N009E

08N009E

10N009E

07N009E

09N009E

13N002E

12N002E

11N002E

10N002E

09N002E

08N002E

07N002E

14N003E

12N003E

11N003E

10N003E

09N003E

08N003E

07N003E

14N004E

11N004E

10N004E

08N004E

09N004E

07N004E

14N005E

12N005E

11N005E

10N005E

08N005E

09N005E

07N005E07N001E

08N004W 08N003W 08N002W 08N001W 08N001E

09N004W 09N003W 09N002W 09N001W 09N001E

10N004W 10N003W 10N002W 10N001W 10N001E

11N004W 11N003W 11N002W 11N001W 11N001E

12N004W 12N003W 12N002W 12N001W 12N001E

13N004W 13N003W 13N002W 13N001W

05N008W05N009W05N007W 05N006W 05N005W

06N008W06N009W06N007W 06N006W 06N005W

07N008W07N009W07N007W 07N006W 07N005W

04N004W 04N003W 04N002W 04N001W 04N001E 04N002E 04N003E 04N004E 04N005E

05N004W 05N003W 05N002W 05N001W 05N001E 05N002E 05N003E 05N004E 05N005E

06N004W 06N003W 06N002W 06N001W 06N001E 06N002E 06N003E 06N004E 06N005E

07N004W 07N003W 07N002W 07N001W07N006E

06N006E

04N006E

05N006E

03N006E

06N007E

04N007E

05N007E

03N007E

04N008E

06N008E

03N008E

05N008E

04N009E

06N009E

03N009E

05N009E

05N017W

06N017W

07N017W

08N017W

02N017W

03N017W

04N017W

05N016W

06N016W

07N016W

08N016W

02N016W

03N016W

04N016W

05N015W

06N015W

07N015W

08N015W

02N015W

03N015W

04N015W

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06N014W

07N014W

08N014W

02N014W

03N014W

04N014W

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07N013W

08N013W

02N013W

03N013W

04N013W

05N012W

06N012W

07N012W

08N012W

02N012W

03N012W

04N012W

05N011W

06N011W

07N011W

08N011W

02N011W

03N011W

04N011W

05N010W

06N010W

07N010W

08N010W

02N010W

03N010W

04N010W

04N013E

06N013E

03N013E

05N013E

04N014E

06N014E

03N014E

05N014E

04N015E

06N015E

03N015E

05N015E

04N016E

06N016E

03N016E

05N016E

04N010E

06N010E

03N010E

05N010E

04N011E

06N011E

03N011E

05N011E

04N012E

06N012E

03N012E

05N012E

02N009W 02N008W 02N007W 02N006W

03N009W 03N008W 03N007W 03N006W 03N005W

04N009W 04N008W 04N007W 04N006W 04N005W

03N004W 03N003W 03N002W 03N001W 03N001E 03N002E 03N003E 03N004E 03N005E

KaktovikDeadhorse

Nuiqsut

140°0'0"W

142°0'0"W

142°0'0"W

144°0'0"W

144°0'0"W

146°0'0"W

146°0'0"W

148°0'0"W

148°0'0"W

150°0'0"W

150°0'0"W

152°0'0"W

152°0'0"W

154°0'0"W

154°0'0"W

156°0'0"W

156°0'0"W

71°0

'0"N

71°0

'0"N

70°0

'0"N

70°0

'0"N

Oil and Gas Lease SaleBeaufort Sea Areawide 2012W Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

Beaufort SeaRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

0 30 60 90 12015Miles

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

National PetroleumReserve- Alaska

Arctic NationalWildlife Refuge

TeshekpukLake

Admiralty Bay Smith

Bay

HarrisonBay

Prudhoe Bay

Alas

kaC

anad

a

State/ASRC Settlement Boundary

Leased Tracts

Available Tracts

Adjacent to Federal Lands (Available)

Deferred

Federal Land

Native Land

ASRC Settlement Boundary

ANWR 1002 Area

Alaska Seaward Boundary

Beaufort Sea

Tran

s-Al

aska

Pip

elin

e

DaltonHighway

Camden Bay

Beaufort Lagoon

Canning River

Colville

River

Sagavanirktok

River

Map Location0 40 80 120 16020

Kilometers

1002 Area

Beaufort Sea Apparent High BiddersDonkel/Cade

Donkel/Lowe

NordAq Energy, Inc.

Realeza Del Spear, LP

Repsol E & P USA, Inc.

Samuel Cade

!

!!

514515

480

447448 422

408

401

389

375

361

348349 336

320321

322

307308

300301

279

267

268269

246247

240241

231

211

212

173174

175

160

155

156

141

130 115

117107 9798

87

8081

73

66

1

1920

21

353637

39404143

4647

48

53

57

59

63

67

68

74

78

798283

8694104

121

123124

133134

139140

147

150

165

172

185

192

196197198

204

205206

207

216

228

236237238

239

245

250

251252253

262

273

284285286

287

295

296

305

313

316

317

326

329

335

342354

357358

366

369370371

380

383384385

395411

414

415416

421

18

425

434

437

438

443444

451

454

458

461

465

475

477

488

489490

495496

499500501

502503505

506507508509510511

512513

520

531

533538

539

544

548

549

559560

563

571

9099110

118

129

135

144

161

168

178

179

188

199

208

213

219

256

263

270

280

297

302

303

309

339

345

350

362

376

392

398

429

455466

471

478

481

483

485

491

493

527

534

540

22

23

27

29

55

64

65

75

84

100101

102151152

153 154

157158

162

163164

176180181

182

200201

202

220

221

222 223

224

225

226

232

233

234

242243

248249

257258

259260

264

265266

275

281282283

288289

290291

304

310311

312

318319

324325

330331

332 333

351352

353

359

360

363364365

372373

374

377378379

386387388

402

403404405

417

418419

431

439440

445

446

449450462

467

468

472

484

486

487

497

521523

528

529

543

10

11

45

12

13

14151617

24

25

26

2830

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KaktovikDeadhorse

Nuiqsut

140°0'0"W

142°0'0"W

142°0'0"W

144°0'0"W

144°0'0"W

146°0'0"W

146°0'0"W

148°0'0"W

148°0'0"W

150°0'0"W

150°0'0"W

152°0'0"W

152°0'0"W

154°0'0"W

154°0'0"W

156°0'0"W

156°0'0"W

71°0

'0"N

71°0

'0"N

70°0

'0"N

70°0

'0"N

Oil and Gas Lease SaleBeaufort Sea Areawide 2012W Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

Beaufort SeaRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

0 30 60 90 12015Miles

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

National PetroleumReserve- Alaska

Arctic NationalWildlife Refuge

TeshekpukLake

Admiralty Bay Smith

Bay

HarrisonBay

Prudhoe Bay

Alas

kaC

anad

a

State/ASRC Settlement Boundary

Leased Tracts

Available Tracts

Adjacent to Federal Lands (Available)

Deferred

Federal Land

Native Land

ASRC Settlement Boundary

ANWR 1002 Area

Alaska Seaward Boundary

Beaufort Sea

Tran

s-Al

aska

Pip

elin

e

DaltonHighway

Camden Bay

Beaufort Lagoon

Canning River

Colville

River

Sagavanirktok

River

Map Location0 40 80 120 16020

Kilometers

1002 Area

Beaufort Sea Apparent High BiddersDonkel/Cade

Donkel/Lowe

NordAq Energy, Inc.

Realeza Del Spear, LP

Repsol E & P USA, Inc.

Samuel Cade

!

!!

514515

480

447448 422

408

401

389

375

361

348349 336

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279

267

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211

212

173174

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141

130 115

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73

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567 568

23678

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4244

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569570

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KaktovikDeadhorse

Nuiqsut

140°0'0"W

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Oil and Gas Lease SaleBeaufort Sea Areawide 2012W Lease Sale

State of AlaskaDepartment of Natural ResourcesDivision of Oil and Gas

Beaufort SeaRegional Tract Map

November 7, 2012

$

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The state of Alaska makes no expressed or implied warranties (including warranties of merchantability and fitness) with respect to the character, function, or capabilities of this product or its appropriateness for any user’s purposes. In no event will the State of Alaska be liable for any incidental, indirect, special, consequential or other damages suffered by the user or any other person or entity whether from use of the product, any failure thereof or otherwise, and in no event will the State of Alaska’s liability to you or anyone else exceed the fee for the product.

DATA SOURCES Base map data, including hydrologic data, village and town locations, land status and boundaries, etc. are from the State of Alaska Statewide Land Records Information Systems GIS database. Oil and gas wells are from the Alaska Division of Oil and Gas database as adapted from the Alaska Oil and Gas Conservation Commission dataset. Land status is derived from the Federal Bureau of Land Managements’ general land status dataset. Information on this map is depicted only at a township or section level resolution. For detailed information regarding any specific area, interested individuals may consult the land records of one or more of the following agencies: The State of Alaska, Dept of Natural Resources The Federal Bureau of Land Management The Federal Minerals Management Service Arctic Slope Regional Corporation Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources.

0 30 60 90 12015Miles

*Bidders are solely responsible for determining the availability of acreage prior to submitting a bid.

National PetroleumReserve- Alaska

Arctic NationalWildlife Refuge

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Map Location0 40 80 120 16020

Kilometers

1002 Area

Beaufort Sea Apparent High BiddersDonkel/Cade

Donkel/Lowe

NordAq Energy, Inc.

Realeza Del Spear, LP

Repsol E & P USA, Inc.

Samuel Cade

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Chukchi Sea

Beaufort Sea Pt. Barrow Arctic Ocean National Petroleum Reserve in Alaska

Sal

NPR-A is located within Umiat Meridian

e Map Tangent Pt.

2012 Lease Sale Tracts

Prelimenary Lease Sale Bid ResuWinning BiLease Sa

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Woodstone Resources LLC

Nordaq Energy Inc.

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Tracts Available but not Offered for 2012

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November 7, 2012 40

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.....Our customers depend on us for quality, consistency, and expertise. We expect the same from our shipping company – and Span delivers with flying colors.

– Michael Schreurs, Regional Director of Transportation, Sherwin-Williams

Matt Stabio, Zone Manager, Alaska, Sherwin-Williams

SPAN ALASKAhas our Alaska market covered.

promises made, promises delivered

SHIPPING TO ALASKA? CALL.1.800.257.7726

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oil & gAs

Alaska OCS ProgressAlaska OCS ProgressAlaska OCS ProgressAlaska OCS ProgressAlaska OCS ProgressAlaska OCS Progress

Crew members of the mobile drilling unit Kulluk arrive safely at Air Station Kodiak after being airlifted by a Coast Guard MH-60 Jayhawk helicopter crew from the vessel 80 miles southwest of Kodiak, Saturday, Dec. 29, 2012. A total of 18 crew members of the mobile drilling unit were airlifted to safety from the winter storm in the Gulf of Alaska while en route to a Seattle shipyard where the rig was headed for winter maintenance after a successful drilling season in the Arctic.

Achieving objectives in the Arctic

BY MIKE BRADNER

2012 was a tumultuous year for Shell in the Arctic. Th e company suff ered some major mishaps and

bad luck but also achieved important objectives by successfully starting two off shore exploration wells on its federal Outer Continental Shelf leases off Alas-ka’s northern coasts.

Alaskans are closely watching Shell’s progress because of the huge potential for new oil and gas discoveries in the OCS. Even though production from federally owned off shore areas would not benefi t the state treasury, because no state taxes or royalties would be paid, new oil fl ow-ing through the Trans Alaska Pipeline System would be hugely benefi cial.

However, Shell was not able to drill the two wells it started down to hydro-carbon-bearing zones because a spe-cialized spill cleanup barge required to be nearby was not available. It was one of Shell’s bad breaks: Th e barge was delayed in completion because of the complexity of its systems. Th en an un-dersea containment dome that was part of the system was damaged in testing. Given that, the barge could not make it to the Arctic in time.

Shell’s achievements were still no-table, though, in that the company was able to fi nally surmount years of law-suits and permit challenges to mobilize and get its small drill fl eet to the Arctic,

and then to safely conduct drilling. Th e curve balls from Lady Luck continued when a large ice fl oe came bearing down on Shell’s drillship Noble Discov-er just aft er drilling had fi nally started. Th e ship pulled off the well and away from the slowly moving fl ow, which cost Shell a week before work could re-sume. Th ere was a silver lining, though, in that the exercise demonstrated the fl exibility of the drill fl eet in dealing with Arctic hazards.

Fierce Winter StormDespite these achievements, the year ended on a sour note for Shell. A fi erce winter storm hit the second of its two

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Arctic drill vessels, the Kulluk, while that rig was being towed across the Gulf of Alaska to the Pacific Northwest to undergo winter maintenance. Cut loose from its tow lines, the Kulluk grounded on a small island near the south shore of Kodiak.

It was a tough way to end the year. On the last day of 2012, the rig was separated from tow lines connecting it to tugs and washed ashore on Sit-kalidak Island off Kodiak’s southern shore. The tug and drill crews were fighting ferocious weather, with seas at 30 feet and more and high winds. The lines from the tow vessel to the rig had first separated a few days earlier and were reattached, and then separated again several times, as the winter

storm worsened. Luckily the Kulluk grounded in shallow water off a gravel and sand beach—not a rocky coast—and no oil spill was apparent. Shell was quickly working on a salvage plan in the first few days of January.

The Kulluk was one of two drilling vessels Shell used in 2012. The other, the Noble Discoverer, is a conventional drill ship where the rig is built into a ship with its own propulsion system. The Kulluk, in contrast, is a conical-shaped mobile drill vessel that does not have its own power to self propel. It is a one-of-a-kind vessel—there is none other like it—and its unique de-sign is intended to withstand forces of ice in the Arctic offshore at a stationary drilling location. However, not having

a propulsion system means it must be towed when being moved, like a barge. That was the challenge when the Kulluk was being towed through heavy Gulf of Alaska seas in late December 2012 and tugs were unable to keep tow lines at-tached in the bad weather.

The Kulluk was built years earlier just for the Arctic and had drilled in the Alaskan and Canadian Beaufort Seas for other companies. It had been stored in the Canadian Beaufort Sea for some years and was purchased and refitted by Shell for use in the Alaska Beaufort Sea after the company acquired OCS leases in 2005. Meanwhile, the Noble Discoverer was also contracted by Shell and was assigned to drill in the Chuk-chi Sea in an area generally west of Bar-row where Shell had acquired leases in 2008. Several other companies also acquired OCS leases in the 2008 sale, including ConocoPhillips and StatOil, which plan exploration programs that are separate from Shell’s.

Improved Technology Both regions are not new to oil explor-ers, including Shell. In fact, Shell had

Alaskans are closely watching Shell’s progress because of the huge potential for new oil and gas discoveries in the OCS. Even though production from federally owned offshore areas would not benefit the state treasury, because no state taxes or royalties would be paid, new oil flowing through the Trans Alaska Pipeline System would be hugely beneficial.

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■ 58 www.akbizmag.com•Alaska Business Monthly•February2013

acquired leases in an earlier Chukchi Sea OCS sale and drilled several explo-ration wells in the early 1990s including the Burger prospect, its prime target in 2012. Burger was a signifi cant natural gas discovery with indications that oil was also present, but it was uncommer-cial in the early 1990s and Shell aban-doned the fi nd—and the leases. Ironi-cally, when Shell returned to the Arctic and the federal government held its Chukchi Sea sale Shell paid more than $2 billion to acquire leases, including reacquiring those at Burger that had been relinquished to the government in the 1990s.

Th e Beaufort Sea was a somewhat similar story. Shell had explored for years in the Beaufort along with other companies and several discoveries were made near shore. Among them was Seal Island, a small discovery six miles off shore the Prudhoe Bay fi eld where the reservoir straddles the fed-

eral-state boundary. Seal Island was eventually sold to BP, which developed it as the Northstar fi eld, which is now producing.

Th e eastern Beaufort region that is farther off shore, where Shell is now exploring, has long attracted industry interest. Amoco and Unocal drilled exploration wells with drillships in the 1980s. Unocal made an oil dis-covery at a prospect named Hammer-head, which is near the prospect Shell has now targeted. Arco Alaska drilled in the Camden Bay area, including a prospect named Kuvlum, where an oil discovery was also made. However, both Hammerhead and Kuvlum were considered uneconomic at the time given the remote locations, distances from infrastructure and the available technology.

What has changed the situation now is that improved technology, mainly in seismic 3-D imaging, has

allowed explorers to do a better as-sessment of potential resources in the areas of the previous discover-ies. Shell is now much more confi-dent that there is oil, and possibly a lot of it, along with natural gas at the Burger prospect. Similarly, the company believes there are substan-tial resources in the eastern Beaufort near Unocal’s Hammerhead find.

Infrastructure SituationIn the case of the eastern Beaufort the infrastructure situation has changed, and it is an important development. Since the early Unocal and Arco drilling, a pipeline has been built 25 miles east of Prudhoe Bay to the small Badami fi eld, which is now produc-ing. ExxonMobil now plans to com-plete the extension of this system all the way to Point Th omson, about 22 miles farther east. Th is winter and next ExxonMobil will be building

907.278.1877

What has changed the situation now is that improved technology, mainly in seismic 3-D imaging, has al-lowed explorers to do a better assessment of potential resources in the areas of the previous discoveries.

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new pipeline from the Point Th omson gas and condensate fi eld now under construction to the Badami fi eld. Th e new Point Th omson pipeline will be fi nished by 2015.

Point Th omson is south of where Shell is exploring in the Beaufort Sea. If there are oil and gas discoveries Shell would still have to build a pipeline to shore, a distance of about 15 to 20 miles—but by the time it will have oil available there will be an onshore pipe-line available that can carry the oil to TAPS. Th is will be a huge advance from the situation a few years ago.

Infrastructure is still a huge chal-lenge for oil and gas developers in the Chukchi Sea. Any oil or gas developed

in that remote area will have to be brought ashore by pipeline, a distance of 60 miles or more, and then shipped by a new onshore pipeline for several hundred miles across the National Pe-troleum Reserve-Alaska to the trans-Alaska oil pipeline. Th e huge costs of building that infrastructure mean that any discoveries in the Chukchi Sea will have to be very large. It will take years to develop them and build the pipelines needed.

One uncertainty with a pipeline from the Chukchi Sea is the regula-tory approvals needed for a pipeline to cross NPR-A. Th e U.S. Bureau of Land Management’s recently approved long-term land management program for

the petroleum reserve has numerous restricted areas along coasts, includ-ing the northwest coast and provisions for future wild and scenic rivers that fl ow south-north across a corridor for a west-east pipeline. BLM offi cials point out that the management plan does contain a corridor and that there is nothing in the coastal land restrictions that would impede a pipeline coming ashore from the Chukchi Sea. However, given the track record of federal agen-cies in permitting Alaska energy proj-ects, many people feel there are reasons to be concerned.

If the restrictions are too onerous, companies developing Chukchi Sea oil may opt to do direct loading of oil to tankers at sea, which can be done un-der terms of the federal leases. Loading oil at sea would mean the Chukchi Sea OCS oil would not fl ow through TAPS, although Beaufort Sea OCS oil would.

R

Mike Bradner is publisher of the Alaska Legislative Digest and is a former legislator and Speaker of the House.

One uncertainty with a pipeline from the Chukchi Sea is the regulato-ry approvals needed for a pipeline to cross NPR-A. The U.S. Bureau of Land Management’s recently approved long-term land manage-ment program for the petroleum reserve has numerous restricted areas along coasts, including the northwest coast and provisions for future wild and scenic rivers that fl ow south-north across a corridor for a west-east pipeline.

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trAnsPortAtion

Commercial industrial transpor-tation charter service is read-ily available at many levels in

Alaska from providers throughout the state. Sometimes charters are needed with little notice, perhaps in response to unexpected events. Sometimes char-ters are needed because transportation is not regularly scheduled to desired destinations. Sometimes charters are needed to transport giant steel I-beams to build a bridge across a river, as in the case of Carlile Transportation Systems moving progress along.

Crossing the Tanana RiverTh at progress is coming in stages. Th e Alaska Railroad’s Tanana River Cross-ing—a bridge and levee at Salcha—is the fi rst part of the Northern Rail Ex-tension, a four-phase project that will

extend the railroad 80 miles from North Pole to Delta Junction. Kiewit has been working year-round on the project since August 2011 and is planning sub-stantial completion of the work in May-June 2014, according to Alaska Railroad Corp. Project Manager Mark Peterbers.

Th e steel girders arrive by barge aft er a three-week journey across the Pacifi c Ocean to the Port of Valdez, and are then

trucked up the Richardson Highway some 300 miles to Salcha by Carlile—one by one. As commercial industrial char-ters go, this is a big one. “Th ere are three sets of trucks that Carlile owns that can transport these beams,” Peterbers says.

Special EquipmentCurtis Spencer, who works special projects, heavy haul, for Carlile ex-

Kiewit chartered Carlile to heavy haul 80 steel I-beams, each 165 feet long, from the Port of Valdez to the Tanana River Crossing at Salcha, where Kiewit is building a bridge for the Alaska Railroad Corp. as part of the Northern Rail Extension project.

Photo courtesy of Carlile Transportation Systems

Trucking steel from Valdez to Salcha

BY SUSAN HARRINGTON, MANAGING EDITOR

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“These are very big beams, probably some of the biggest beams that have ever been hauled in Alaska, but typically for us they aren’t that big, we do this all the time, large loads,”

—Curtis SpencerSpecial Projects, Heavy Haul, Carlile

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Page 62: February-2013-Alaska Business Monthly

■ 62 www.akbizmag.com•Alaska Business Monthly•February2013

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Once loaded, the 165-foot steel I-beams are tied down securely with chains for the journey north to the construction site.

Photo courtesy of Carlile Transportation Systems

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plains how these massive beams are transported on special rigs. “It’s not so much the truck itself, it’s the trailers and trailering equipment we’re utiliz-ing on it,” he says. “When we put them on part of a very large low boy without the deck sections and goosenecks in them—what we call dollies, steerable dollies, and they have turntables—and the beam sits on top of a bunk, and the bunk sits on top of the turntable, it al-lows us to be highly maneuverable.”

Th at’s a necessity considering the road from Valdez to the project site—there are a few twists and turns along the way—and the fact that each beam is 165-feet-long and weighs 70 tons.

Large Loads“These are very big beams, prob-ably some of the biggest beams that have ever been hauled in Alaska, but typically for us they aren’t that big, we do this all the time, large loads,” Spencer says. “For example, 100-ton, 80-foot-by-22-foot oilfield modules, very large mining equipment, wind towers—we did all the big wind tower projects in the state last year: Kodiak, Fire Island, Eva Creek. We’re using some of the same equipment we used on those projects.”

Carlile delivers the beams one at a time in a convoy of three of these rigs and it takes about 24 hours a load, staggered a few miles apart due to the length. “We have a lot of traffi c mainte-nance,” Spencer says. And a lot of loads: Th ere are 80 beams in all, 56 were deliv-ered to the Port of Valdez in November. Twenty-four more are coming.

“Basically, we’ll get two loads per truck and trailering equipment one

North Star Stevedores in Valdez used two cranes to load each steel I-beam onto Carlile’s trailer and trailering equipment used to transport the beams to Salcha from Valdez.

Photo courtesy of Carlile Transportation Systems

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week and three the next week,” Spencer says. “Each truck has a driver in a pull truck, and then we have three pilot cars per bridge beam—four people per load. We tie down when we pick the loads up and untie when we arrive, then Kiewit unloads at the location. North Star Ste-vedores loaded them at Valdez, they use two cranes per beam to load on the truck, and it takes two-and-a-half hours per beam to do that.”

Carlile started working with Kiewit in 2011 as part of the planning process for the project. Kiewit finished the levee last year.

Longest Bridge in Alaska“The bridge, when completed, will be 3,300 feet long—the longest bridge in Alaska, Peterbers says. “Four gird-ers span each pier … The beams were bolted together when fabricated, un-bolted for shipment, and marked and matched up. On site they are put into pairs, bolted together, and then cranes take them out and set them on the piers—20 sets of piers as we go across the river.”

First, they’ve got to get transported to the construction site.

“It’s an extremely high risk project, there are a lot of things mother nature has in store for us at any given time as well as traffic on the route,” Spen-cer says. “When you’re hauling those things you don’t just start and stop and turn whenever you want, there are only a couple of places you can pull off. It’s certainly a high visibility project and a high risk project.”

Safety FirstWhat do the companies involved do to mitigate those risks?

“A whole lot of safety programs,” Spencer says. “We have them at Carlile and Kiewit. Safety meetings before we load, safety meetings before we take off every day, as well as Kiewit’s safety programs. As you can imagine driving down the road with those girders is a little nerve wracking—typically, they’re travelling between 10 to 25 miles an hour.”

And the drivers?“Heavy haul drivers,” Spencer says.

“They are heavy haul drivers—it’s all they do—all the time.” R

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February

■ Alaska Forum on the EnvironmentFebruary 4-8— Dena’ina Civic and Convention Center, Anchorage: The forum offers training and information through keynote speakers in plenary sessions cover-ing: climate change, emergency response, environmental regulations, fish and wildlife populations, rural issues, energy, military issues, business issues, solid waste, con-taminants, contaminated site cleanup and coastal communities’ issues such as tsunami impacts, marine debris and coastal erosion. Registration required. [email protected]

■ Updates from Fire Island and Eva CreekFebruary 13—Anchorage Museum Audito-rium, Anchorage: Free monthly Renewable Energy Alaska Project Forum. Contact: Katie [email protected]

■ Alaska Miners Association ConventionFebruary 13-15—Centennial Hall, Juneau: Annual convention and trade show. Regis-tration required.alaskaminers.org

■ AkPhA ConventionFebruary 15-17—Anchorage Downtown Marriott, Anchorage: The Alaska Phar-macists Association convention includes various lectures, literature reviews and an awards reception. Registration required.alaskapharmacy.org

■ Engineers WeekFebruary 17-23anc-aspe.org/eweek.html

■ A New Look at Alaska-Russian Far East OpportunitiesFebruary 19—Hotel Captain Cook, Anchor-age: This half-day event takes a fresh look at potential business opportunities between Alaska and the Russian Far East region. It will feature six speakers, a mix of both U.S. and Russian trade specialists.907-278-7233 [email protected] www.wtcak.org

■ Arctic Ambitions IIFebruary 20-21—Hotel Captain Cook, Anchorage: This conference concentrates on the theme of international trade and business opportunities that flow from com-mercial development in the Arctic. Panel discussions address issues such as supply chains, innovation, markets, commerce, and transportation. 907-278-7233 [email protected] www.wtcak.org

■ SWAMC Annual Economic SummitFebruary 20-22—Hotel Captain Cook, Anchorage: This year’s conference will include a one-day regional energy workshop on Feb. 20th. Other topics on the program include a transportation carrier roundtable, a processor/community needs discus-sion, shipping and logistics in SW Alaska, a regional broadband report, CDQs and a debate on maximum benefit resource extraction featuring UAA’s award-winning debate team.www.swamc.org

■ ASTE ConferenceFebruary 23-26—Hotel Captain Cook, Anchorage: Join the Alaska Society for Tech-nology in Education at this year’s conference which will emphasize classroom practices that combine technology with educational standards. The theme this year is: Mobile Me, Mobile You, Mobile Us. Contact: Jill [email protected] www.aste.org

■ Southeast Conference 2013 Mid-Session SummitFebruary 25-March 1, 2103—Centennial Hall, Juneau: The Summit is an opportunity for Southeast leaders to discuss issues vital to the region including energy, resource development, transportation, tourism and economic development, and provides mem-bers a chance to meet with lawmakers.www.seconference.org

March 2013

■ 2013 AWRA Alaska Section Annual ConferenceMarch 4-7 —BP Energy Center, Anchorage: The agenda will include oral and poster pre-sentations on Alaska’s water management issues, the latest on scientific research and a hydrology workshop.awra.org

■ ANILCA SeminarMarch 6-7—BLM Campbell Creek Science Center, Anchorage: This seminar will provide a thorough review of the Alaska National Interest Lands Conservation Act of 1980 and provide an opportunity to exam-ine and discuss current and controversial ANILCA-related issues with several subject matter experts. Registration required.Contact Karlin [email protected]

■ Rural Alaska Landfill Operators (RALO) Training March 12-14—BP Energy Center, Anchor-age: The RALO course is for the designated landfill operator and administrator in a vil-lage with a Class III landfill or open dump, and focuses on the duties of the landfill op-

erator, their personal safety, and the safety of the village. There is no cost to attend this training. Limited travel scholarships of up to $500 may be available. Registration required.Contact: Peter [email protected]

■ Governor’s Safety and Health ConferenceMarch 18-20, 7 a.m. to 5 p.m.—Dena’ina Civic & Convention Center, Anchorage: This year’s theme is “$afety Pay$—at Work, Home and Play.” Registration required.Labor.alaska.gov/lss/asac.html

April 2013

■ Visit Anchorage Annual Seymour Awards BanquetApril 12, 6 p.m. to 9 p.m.—Dena’ina Civic and Convention Center, Anchorage: Celebrates the industry’s successes of the past year. Special award presentations will be made to Visit Anchorage partners whose exceptional efforts have made these achieve-ments possible. Registration required.events.anchorage.net/rsvp/

■ Alaska Rural Energy ConferenceApril 29-May 1—Sheraton Hotel, Anchor-age: This conference is a three-day event offering a large variety of technical sessions covering new and ongoing energy projects in Alaska, as well as new technologies and needs for Alaska’s remote communities. Registration Required.Contact: Amanda [email protected] akruralenergy.org

May 2013

■ Business of Clean Energy in AlaskaMay 2-3—Dena’ina Civic & Convention Center, Anchorage: Held annually, this conference brings together business, civic and government leaders from around the state, nation and the world in a strategic and educational forum to share information and ideas on moving Alaska toward a sustain-able energy future.alaskarenewableenergy.org

■ Private Sector Transportation Infrastructure and Assets: Response Capacity and Development in the Arctic WorkshopMay 29, 7 pm. to 9 p.m.; May 30-8 a.m. to 5 p.m.—World Trade Center, Seattle, Wash.: Follow-up discussion to the December 2012 Arctic Transportation Infrastructure work-shop in Reykjavik; will focus on the private sector and industry response capacity, with an emphasis on assets deployed and infra-structure developed in the Arctic. Opening reception May 29. Registration required.institutenorth.org

AGENDA Compiled By Tasha Anderson

Page 66: February-2013-Alaska Business Monthly

■ 66 www.akbizmag.com•Alaska Business Monthly•February2013

construction

Winter Construction in FairbanksWinter Construction in FairbanksWinter Construction in FairbanksWinter Construction in FairbanksWinter Construction in FairbanksWinter Construction in FairbanksWorking with the weather presents challenges

BY JULIE STRICKER

It’s high noon on a gloomy mid-winter’s day. Th e sun has just man-aged to clear the snowy peaks of the

mountains 100 miles to the south and cars navigate the icy streets through a sea of ice fog. It’s 40 below zero and the air is thick and bitter.

Welcome to a typical winter workday in Fairbanks, Alaska. While many Fair-banksans joke that there are only two seasons, winter and construction, the fact is that while winter disappears for a few months, it is always construction season.

Most exterior residential construc-tion stops in the colder months and res-idents focus on staying warm. Some use woodstoves, and some prefer oil stoves, while others rely on a full-fl edged fur-nace or boiler. Installing and keeping them going keeps dozens of businesses going around the clock, especially dur-ing cold snaps.

Th e Woodway specializes in wood-stoves and high-effi ciency oil-burning heaters, and has been a Fairbanks mainstay since 1978. General Manager Roy Ponder says their busiest times are

just before the fi rst real cold snap of the season. Th ey also see people whose heat source has broken or are looking for a backup source.

Th e Woodway sells only EPA-certifi ed wood stoves, a must given the Fairbanks and North Pole areas’ serious air quality issues. Th e stoves burn the particulates that normally would escape up the fl ue. Ponder says the store has been installing an average of one stove per day.

“People recognize they’re going to need the heat in the winter,” he says. “Most people come in in the fall. A re-spectable number wait until a cold snap hits and they know they’re going to need something to keep warm.”

Working OutsideSometimes, however, a construction project does require being outdoors, even in the most extreme weather.

Scott Bothwell, owner of Alcan Build-ers in Fairbanks, says they are oft en busier in the winter than the summer, depending on the project. And while the season’s extremes present some

challenges, businesses have learned how to cope.

“I’ve worked in numerous states and each state has its own particular is-sues,” says Bothwell, who has been in Alaska since 1978.

Fairbanks’ particular issues are ex-treme cold and short days, both of which can drive construction costs up. Both-well recalls a project he did a few years ago that involved building a hotel, be-ginning in mid-winter, that needed to be completed by the time tourists began arriving that spring. At the time, gas cost $1.80 per gallon in Fairbanks, but was closer to $3 at the Denali area jobsite.

“We spent $713,000 on gasoline and heating fuel on that job,” he says.

Alcan recently built a Holiday Sta-tionstore in northeast Fairbanks in temperatures that dipped well below zero, says John Kietzman, who super-vised the project.

“I know we saw 43 below one day,” Kietzman says. “Lots of 30 below and in between we had those two-and-a-half weeks of miserable cold.”

In cold climates, construction crews often use tents made of reinforced Visqueen to create work areas that stay above freezing even when temperatures fall well below zero.Forced air heaters keep the work area under the plastic “balloon” above freezing as workers build a new Holiday Station-store in East Fairbanks in November 2012 as temperatures fell as low as 43 below zero.

Photos courtesy of Interior Alaska Roofing, Inc.

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Despite the cold, the store was com-pleted in 121 days due to a carefully planned construction schedule and ex-perienced crews, Kietzman says.

One phase of the construction re-quired a huge tent made of three 40-foot by 100-foot sheets of reinforced Visqueen stitched together to cover key parts of the project to keep them warm and dry. Such tents are common on far north construc-tion sites. Th ey create a heated bubble that is kept aloft by heat and air pressure and allow crews to work comfortably in temperatures sometimes 80 degrees above the air temperature just outside.

“In today’s day and age, so many products are latex-based for green rea-sons, so we need to be above 32 de-grees,” Bothwell says. “In the old days, we could use oil-based paint and stuff that didn’t have to be above freezing.”

Kietzman laughs when asked if there was a certain technique or skill set needed to make giant tents.

“We’ve all done it so much that it’s apparently second nature,” he says.

Building tents in other parts of the In-terior such as Delta Junction and Healy, which are noted for being very windy, can be more of a challenge, Bothwell says. “It’s very diffi cult to build a tent that will last more than one week.”

“Sometimes wind is worse than cold,” he adds. “You can always put on more clothes.”

Careful planning was a key part of the project.

Because the Holiday Stationstore construction started only a few weeks before freezeup, Kietzman had to make sure all of the ground and foundation work was done before the ground froze. Th e asphalt also was laid in the fall.

“First time in Fairbanks that I know of that the asphalt was on the grounds be-

fore the building arrived,” Kietzman says.Th e 5,000-square-foot building ar-

rived in pre-made panels, which took four days to put up. Th e roof took an-other fi ve. By the time the extreme cold hit, most of the exterior work was done and the crews moved indoors.

“We both know how fast it needed to go early on to get everything in the ground,” Bothwell says. “We knew it was a tight schedule.”

Even the landscaping was done be-fore freezeup. Th e owner of the adjacent property gave them permission to take some of the trees and transplant them at the Holiday Stationstore.

“Th ey took a spade on a skidsteer and dug up the birch trees that are trans-

planted at the Holiday,” Bothwell says. “Th e spruce trees came the same way. All the plants at the Holiday are authen-tically Alaskan.”

SafetySafety is another key ingredient. “Safety is always our No. 1 concern with all our workers,” Kietzman says. In the win-ter, there are more slip hazards, such as frost, snow and ice, as well dealing with Visqueen and heating and lighting sources.

“Our company tries to do things right regardless of what the temperature is,” Bothwell says. He made sure a safety professional frequently visited the Holiday jobsite, just to keep an eye on

Because of high fuel costs, homeowners are demanding more effi cient boiler and furnace systems, according to Sandra Hembree of Alaska’s Best Plumbing and Heating in North Pole. This is a before and after collection of one such in-stallation.

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things. “In my opinion, we played it the way we’re supposed to play it.”

Home Heating SystemsGiven the length and severity of Fair-banks winters, something is bound to go wrong in any household. Th at’s where businesses like Alaska’s Best Plumbing and Heating come in.

Th e North Pole-based business has been owned by Sandra and Robbie Hembree since 2007. Th eir schedules are much diff erent in the summer than in the winter, Sandra Hembree says.

“Summer is more of the construction and boiler replacement jobs,” she says. “Winter is more repairs and dealing with the problems of winter in Alaska.”

In the summer and fall, the company does a lot of boiler cleaning and tune-ups, “but you can’t foresee what’s going to break when it gets cold,” she says.

“When we get that fi rst cold snap, everybody’s boiler kicks on and stuff starts breaking.”

During the weeks of extreme cold that settled over Interior Alaska last November and December, Hembree, who employs about 10 workers, says

her crews were kept running around the clock.

Dealing with frozen pipes is one of the biggest challenges the company deals with in the winter months, she says. If homeowners catch it quickly, damage is usually minimal. But if a person leaves on vacation and their boiler breaks and pipes freeze, the damage can be major.

Hembree recommends homeown-ers install temperature sensors. If the temperature in the home drops, an alarm is triggered and the homeowner is alerted. Th at gives Hembree and her crews enough time to get the boiler back online before the interior freezes and damage occurs.

She said such a case had happened just the day before. A homeowner was in California when she received an alert that the temperature had dropped too low in her house. She called Hembree, who got a crew over to the house before anything froze.

She also recommends carbon mon-oxide detectors, which can be a lifesaver if a chimney or duct becomes clogged.

Given the high cost of fuel oil, the

Hembrees are seeing a demand for more fuel-effi cient boilers. Boilers, es-pecially older models that may not be maintained well, can lose 40 percent or more of their effi ciency. Th at can cost homeowners thousands of dollars a year.

And while Hembree tries to adhere to a schedule so homeowners can plan on when workers will arrive to install or work on a heating system, cold spells oft en mean the schedule goes out of the window.

“All of our customers are very im-portant,” she says. “All of a sudden we get a cold snap and we get called for a heat emergency. We have to do a lot of shuffl ing and rescheduling to make that happen. You don’t plan for an emergency.”

Despite that, in all her years in busi-ness, Hembree said not one customer has ever complained when she has had to shuffl e appointments, adding “Fair-banks people are awesome.” R

Julie Stricker is a writer living near Fairbanks.

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Page 70: February-2013-Alaska Business Monthly

AECOMKristenAkershas joined the Anchorage office of AECOM as a Project Environmental Engineer. Akersreceived her Bachelor of Science and Master of Science in Environmental Engineering from Texas Tech University.

ArranForbeshas joined the Anchorage office of AECOM as an Environmental Scientist. Forbesreceived her Bachelor od Science in Environmental Science from Dartmouth College in 2010.

USKH Inc.USKH Inc. announces that MarcusGeisthas joined th e m ulti- disciplin e d firm as an Environmental Analyst in the Anchorage office. Geistis a graduate of the Davidson College, a n d h e r e c e i v e d h i s Master of Environmental Management from Duke University.

Freedom RealtyKevinLauverhas joined Fre e dom Realt y as a Sales Associate. Kevinwill be working at the Kenai branch with vacant land, residential, multi-family and commercial properties.

AHBANikkiGiordanohas been named the new Executive Director of Alaska Home Builders Association.

VickiPortwood, former Executive Director, retired Dec. 31, 2012. Portwoodhad served as the executive officer for the AHBA and the Alaska State Home Builders Association for more than 15 years.

Bezek Durst SeiserBezek Durst Seiser announces JenniferMidthunas one of its newest Licensed Architects. Midthunholds a Bachelor of Architecture with a minor in art

history from the University of Oregon. Midthunsuccessfully passed the architectural registration exam in November.

Hope Community ResourcesH o p e C o m m u n i t y Re sources Inc. announces the promotion of KathyTonsgard from Chief Financial Officer to Senior Deputy Director of Fiscal Services and Operations. Tonsgardholds a Bachelor of Business Administration in Accounting, a Master of Business Administration in Information Technology and her Juris Doctorate in Healthcare and Contract Law.

State of Alaska Department of Law

T h e St ate of A laska D epar tm ent of L aw announces that SharonMarshallwill be the new Anchorage District Attorney. Marshallhas worked in district attorneys’ offices in New Jersey, Ohio, Texas and Alaska.

SEARHCThe SouthEast Alaska R e g i o n a l H e a l t h Consortium Behavioral H e a l t h D i v i s i o n announces the hiring of TerryKinney, PA-C, CAQ-Psychiatr y, as a Mental Health Midlevel Practitioner at the Haa Toowóo Náakw Hít out-patient behavioral health clinic in Sitka. Kinneyearned his physician assistant credential through the University of Washington School of Medicine’s MEDEX program, a Bachelor of Clinical Health Services and a licensed prac-tical nurse credential from Clover Park Technical College in Lakewood, Wash.

SEARHC has also hired two new optometry assistants—VivianStuartand ChrissyHayes—to

help with eyeglass frame fitting at the new Prince of Wales optometry clinic.

Alaska Primary Care AssociationThe Alaska Primary Care Association board and staff announce the appointment of NancyE.Merrimanas their Executive Director. Merrimanattended college in California and Arizona and achieved a Bachelor of Arts in Community Nutrition summa cum laude; and a Mater of Public Health and Master of Business Administration, both magna cum laude.

KeyBank

MollieR.Kenthas been selected to manage KeyBank’s Kenai branch. Currently, she is pursuing a Bachelor of Business Administration from the University of Alaska Southeast.

KeyBank has selected AmandaLeDesmato manage its branch in Soldotna. She is currently completing a Bachelor of Business Administration at the University of Alaska Southeast.

Rep. Don Young MikeAndersonhas been hired to serve as Press Secretary in Rep. Don Young’s Washington, D.C. office. Originally from Anchorage, Andersonearned a degree in political science from the University of Alaska Fairbanks.

University of AlaskaThe University of Alaska announced Chief Human Resources Officer DonaldSmithis returning to the position of Executive Director of Labor and Employee Relations.

Associate Vice President of Budget Michelle

RIGHT MOVES Compiled by Mari Gallion

■ 70 www.akbizmag.com•Alaska Business Monthly•February2013

GeistGeist

Tonsgard Tonsgard

KinneyKinney

KentKent LeDesmaLeDesma

LauverLauver

OHMY!

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Rizkhas been appointed to the position of Interim Chief Human Resources Officer. Rizkis a graduate of North Pole High School and the University of Alaska Fairbanks, from which she earned a Bachelor of International Business and a Master of Business Administration in 2001.

UIC Construction ServicesGlendaHoganhas joined UIC Construction Services as a Marketing Specialist. Hoganhas more than 30 years of experience in management, cus-tomer service and graphic design.

Alaska DCCEDThe Department of Commerce, Community and Economic Development has selected Martin“Marty”Hesteras the new Deputy Director of the Division of Insurance. Hesteris a graduate of University of Alaska Anchorage.

Anchorage Chamber of CommerceThe Anchorage Chamber of Commerce selected AndrewHalcroof Anch-orage to serve as its new President. Halcrostudied at Willamette University in Oregon, and has par-ticipated in professional development programs at Harvard University’s K e n n e d y S c h o o l o f Government and the Harvard Business School.

Alaska DOT & PFGovernor Sean Parnell named PatKempas com-missioner of the Department of Transportation and Public Facilities. Kempearned a Bachelor of Science in civil engineering from the University of Washington and has been a registered profes-sional engineer in the State of Alaska for more than 30 years.

Century 21 North HomesCentury 21 North Homes announces the hire of RoxanneO’Connoras a Sales Associate. She will specialize in residential property sales in the Anchorage area.

FNBA

MilannaShearwas pro-moted to Branch Manager of the Kuskokwim Branch in Bethel. Shearhas more than 20 years of banking experience and joined First National as a Loan Officer this past summer.

HemantSisodiawas appointed Branch Manager of the Eastchester Branch. A veteran banker with more than eight years of expe-rience, Sisodiais an active member of the Fairview Business Association.

MattThonbrings his experience as a Personal Banker to the Cash Management Department. Away from the bank, Thonworks as assistant varsity basketball coach at Eagle River High School.

Denali Alaskan FCUBrit Bols inger, V i c e P r e s i d e n t o f R i s k Management at Denali Alaskan Federal Credit Union, has earned his Certified Fraud Examiner c r e d e n t i a l f r o m t h e Association of Certified Fraud Examiners

Sen. Mark BegichSen. Mark Begich named Anchorage resident RobertDoehlas his new Special Assistant for Military and Veterans Affairs. Doehlis replacing longtime Alaskan C.W. Floyd, who is retiring after more than eight

years of working for Begich, first in his capacity as mayor and later in the Senate office. A 14-year Alaska resident, Doehlrecently retired as a Colonel after serving as the Vice Wing Commander of the 176th Wing of the Alaska Air National Guard. Doehlorigi-nally joined the Army National Guard as an enlisted medic before being commissioned as an armor officer and his military career spanned more than 32 years.

SIKU CxAMichae l C ampbe l l , Manager of SIKU CxA, r e c e n t l y p a s s e d t h e Association of Energy Engineers examination and became a Certified Building Commissioning Professional. The certifi-cation covers all aspects of building commissioning, and the CBCP certification is one of the international building commissioning certifications recognized by the government to perform these services on government buildings.

Toghotthele Corp.To g h o t t h e l e C o r p . announces the hire of JacquieGossas Special Projects Manager. Gosswas previously with the U nive r sit y of A laska F a i r b a n k s a n d s h e comes to Toghotthele with a degree in Natural Resources.

Northwest StrategiesNorthwest Strategies has named TiffanyTutiakoffP re si d e n t . Tutiakof fserved as Vice President of Account Services at NWS for the past four years, overseeing much of the company’s day-to-day operations, account ser-vices and managing clients.

RIGHT MOVES Compiled by Mari Gallion

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HalcroHalcro

ShearShear SisodiaSisodia

ThonThon

BolsingerBolsinger

CampbellCampbell

GossGoss

TutiakoffTutiakoff

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insurAnce essentiAls

Self-Insured Health Benefit PlansSelf-Insured Health Benefit PlansSelf-Insured Health Benefit Plans

In our modern times, with the dawning of what will surely be a complicated transition into Th e Pa-

tient Protection and Aff ordable Care Act (also known as Obamacare) and many Americans feeling ultimately failed by the insurance industry, em-ployers are looking for viable solutions to what many feel is a fundamentally fl awed system.

In response to these sentiments, one potential solution has emerged: Self-in-sured health benefi ts plans—but what are they, and how do they work?

Ron McCurry, founder of Alaska Em-ployee Benefi t Specialists, is all too ea-ger to tell everything about self-insured benefi t plans. As a former electrical contractor who ran his own business for 10 years, McCurry has sat on the op-posite side of desks such as his.

“I have a clear understanding of cash fl ow,” he says, “and understand what happens when that seizes up. I under-stand that we need to keep employees happy, but we can’t break the bank to get that done.”

AEBS deals almost exclusively with employee health benefi t plans—mainly medical, dental, vision and disability—and McCurry emphasizes that it is his job to fi gure out the most cost-eff ective way to get these products into the hands of the client.

“Self-funding is simply the same type of coverage—medical, dental, vi-sion—unbundled from the fully-in-sured components, and set out there in component pieces,” McCurry explains. “Inside any given premium would be things known as margin—that’s the insurance company’s profi t—adminis-tration, retention and claims… In the self-funded world, I eliminate some of those. I don’t have margin and reten-

tion that I have to deal with. We simply have administrative costs,” which are handled by a third-party administra-tor of the client’s choice.

Th ere is, logically, an insurance com-ponent in self-insured plans: Specifi c stop-loss insurance, which equates to a deductible for the employer (the larger the employer, the larger the deductible can be), and aggregate stop-loss insur-

ance, which protects the employer and the plan in the event that there are huge “runs on the bank” in smaller claims over a 12-month period.

“We come up with what would be known in the self-funded world as a maximum liability: What is the most that this employer could pay for those benefi ts in a year if everything went re-ally, really bad? Th en we compare that to a fully insured rate.”

Th is naturally puts the company’s emphasis on the overall wellness of its employees.

“If you had a miracle year, where none of your employees had any claims, on the self-funded side, I would never have sent my money out the door, aside from administrative fees,” McCurry says. “To the fully-insured carrier, I would have sent them the full amount of money. Th e

carrier is not going to write me a big fat check and tell me what a great guy I am—they’re going to keep the money, probably raise the rates anyway, and move on.”

Th e end result, according to McCur-ry, is that the employer will consistently pay 25 to 30 percent less than a fully insured rate.

Sound too good to be true? McCurry goes on to explain how self-insured

benefi ts plans work well for some of his larger clients who operate globally with thousands of employees as well as small-er local companies with as few as 30.

What’s in it for Me?Self-insured benefi t plans boast many advantages for employers, including better customer service.

McCurry says that on average, self-insured benefi ts packages provide bet-ter customer service than fully insured carriers because the client deals with far fewer people, and deals with the third party administrators of their choosing.

Another boon to self-insured clients is the symbiotic combination of cus-tomization and control over the com-ponents as well as the “whole look” of their benefi ts plans in order to satisfy both employer and employee.

A new benefi ts solution shows promise for cutting costs and making employees happy

BY MARI GALLION

“If you had a miracle year, where none of your employees had any claims, on the self-funded side, I would never have sent my money out the door, aside from administrative fees. To the fully-insured carrier, I would have sent them the full amount of money. The car-rier is not going to write me a big fat check and tell me what a great guy I am—they’re going to keep the money, probably raise the rates anyway, and move on.”

—Ron McCurryFounder, Alaska Employee Benefit Specialists

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“In the self-funded world,” you can pick your partners,” McCurry says. “We get to pick fi rst in class manage-ment and utilization review companies. We can choose our own prescription benefi t manager. We can pick our own stop loss carriers. We can pick our own administrators. So you can go out and build your team that’s going to success-fully and soundly operate your plan.”

Furthermore, in a self-insured plan, the employer gets the data—and ac-cording to McCurry, data is power.

“You can analyze what’s going on in-side your own plan, and you can dissect that from any given direction and say what is working, what’s not working. Unless you have a couple hundred em-ployees, on most fully insured plans you will never get that kind of data. Th ey just will not disclose it,” McCurry says.

For example, “We can tell at a glance that only 2 percent of our population is using preventive care,” McCurry says. “So now we know that we have to go out with some educational pieces to say ‘look, we’re paying these claims at 100 percent. Why aren’t you using this? Why are we not detecting prob-lems early and fi xing them before they get to be a great big claim?’ And data would support that you would see that. From an operating point of view, hav-ing that data is critical: Now we can make decisions about our benefi ts plan that make sense.”

Last but not least, there is the advan-tage of not having to comply with state insurance policy mandates, which may be of particular interest to companies that operate in various states.

“Fully insured plans have to operate predominantly under state jurisdiction so they have to comply with state man-dates which can add costs: Th ey have state fi lings, lots of government regula-tion they have to operate with.”

Self-funded plans, however, need only comply with minimum standards for retirement, health and other benefi t welfare plans as mandated by Employee Retirement Income Security Act of 1974 (ERISA) and the encroaching Obam-acare. Th us, self-funded plans can “reduce cost by an average 2 percent premium tax that does not apply to self-funded plans,” McCurry says. “We can drop off most all state mandates across the country.”

What’s in it for Them?As expected, savings for the employer equates for savings to the employee. McCurry fi nds that employees who have a sense of control over how much they can save on their insurance pre-miums will use that to their advantage and that of their employers, and will of-ten work as a team to keep costs down. Wellness, prevention, fi tness programs, smoking cessation, chiropractic care, nutrition classes, weight loss programs and other incentives can all be written into a company’s self-insured plan.

“Fully-insured plans are not in the habit of doing weight loss programs, for example,” McCurry says, including gas-tric bypass and lap band procedures. “But we see self-funded plans where we are building those in because we un-derstand the long-term cost of not do-ing something with weight control. It’s going to lead to diabetes . It’s going to lead to heart problems. And so forward thinking employers have the ability to say ‘we will pay for these procedures.’”

Is a Self-Insured Plan Right for You?

According to McCurry, although the rule of thumb in the brokerage world says you can’t self-insure for less than 100 employees, he is writing plans down to 30 employees, with great success.

“It’s just a matter of fi nding stop-loss carriers that will write that deductible down to a smaller amount, so it’s got a

bigger insurance component than the larger employers—but they still get to take advantage of claims that were nev-er incurred, and that money stays in the bank as opposed to going to the insur-ance company.”

“In a self-funded plan, you’re go-ing to get data sent to you on a weekly basis that says how much your claims were that week, and you’re only going to send that much to the insurance car-rier, which in this case would be a third party administrator. But that’s the only amount you’re sending. Th en once a month you will get a bill from the TPA and for the administration and stop loss premiums. Th at’s it!”

Another consideration: According to McCurry, data shows that blue col-lar workers generate fewer claims than white collar workers. Although not cer-tain as to why, he admits that it may be due to physical activity level or less of an ability to leave work to go to a doc-tor, which may ultimately help compa-nies who employ either type of worker develop a plan that benefi ts both em-ployee and employer.

MCurry also admits that there is risk: “We’re not going to be able to stop the million dollar preemie baby, or prevent the heart attack in many cases. But with the stop-loss insurance component, we can mitigate and address that risk for each company.”

McCurry believes that this is the “Golden Era” of self-insured benefi t plans. His industry is seeing a shift towards self-insured plans because of fl exibility and cost-eff ectiveness, and is confi dent this trend will continue to extend down to smaller companies.

“Odds are, year aft er year you will run lower costs if you’re self-funded than if you’re fully insured,” McCurry says. “My question to a client is, why isn’t this your benefi t plan and not the insurance company’s plan?” R

Mari Gallion is Associate Editor at Alaska Business Monthly.

“In a self-funded plan, you’re go-ing to get data sent to you on a weekly basis that says how much your claims were that week, and you’re only going to send that much to the insurance carrier, which in this case would be a third party administrator. But that’s the only amount you’re sending. Then once a month you will get a bill from the TPA and for the administration and stop loss premiums. That’s it!”

—Ron McCurryFounder

Alaska Employee Benefit Specialists

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mining & enVironmentAl serVices

Understanding the Partnership’s efforts

BY PAULA COTTRELL

Mining and resource develop-ment projects in Alaska are facing increased scrutiny as

environmental concerns remain a focal point for federal, state and local gov-ernments as well as the people that they serve. Pebble Mine and the Bristol Bay region are no exception as the Pebble Partnership moves toward the permit-ting process for its mine operations.

“Pebble Mine will be among the most scrutinized projects to go through permit-ting on a state and federal level based on the nature of the way the conversation has progressed so far,” says Mike Heatwole, vice president of public aff airs for the Peb-ble Partnership. “We recognize that the regulators involved in the process live in our state and that with the bombardment of information so far about the project, it will be an intensively scrutinized process.”

Former ADEC Engineer Joins Team

Former Alaska Department of Envi-ronmental Conservation engineer, Dan Easton, joined the Pebble team as vice president of environmental aff airs in the fall of 2012. In his 20 years with the ADEC, Easton dedicated his eff orts to protecting the Alaska environment and

plans to continue to do so with his work at Pebble Mine.

“When I interviewed for this job, I dis-cussed at length with Pebble managers the extent that the environmental team would infl uence the design of the proj-ect,” says Easton. “I wanted to make sure that the vision for Pebble and the envi-ronmental concerns were at the forefront of the team’s mind and that it wasn’t just something that was tacked on at the end.”

According to Easton, it is an all too common practice for an environmental team to be handed a design and told to get the project permitted. However, this was not a business model he was comfortable with—and this was something that he and Pebble saw eye-to-eye on. “I think an evolution that we are seeing—not just for Pebble, but in other industries—is a more mature awareness toward environ-mental concerns,” Heatwole says.

Eight Years of ResearchPebble Partnership has spent the last eight years conducting research to better under-stand the environment of Bristol Bay and how they can operate successful mine op-erations with minimal impact to Alaska’s delicate ecosystem. “In order to design an environmentally responsible mine plan,

you have to have a lot of solid environmen-tal baseline data,” Heatwole says.

“Before I came to work at Pebble, I didn’t understand the level of eff ort to un-derstand the environment that was being put forth by the Pebble Partnership—I don’t just mean the natural environment, but the human, social and economic en-vironment as well,” Easton says.

In January 2012, a report more than 27,000 pages long was released providing an overview of the fi rst fi ve years of studies conducted by Pebble’s environmental team.

“I was struck by how exhaustive the work has been done to understand the cur-rent existing environmental condition,” Easton says. “Th at level eff ort has been maintained from 2008 to today and many more thousand pages of data are coming.”

While activities to date have been largely environmental baseline collec-tions, the Pebble environmental team is also working on predicting environ-mental impacts and addressing ways to mitigate them, according to Easton. “During the permitting process, you keep doing data collection, but the focus shift s to environmental impact and how to minimize those impacts,” he says.

For Pebble, attempting to predict envi-ronmental impacts requires the expertise

TOP: Piezometer devices are used to measure the pressure of groundwater at the point of installation. More than 14,000 groundwater level measure-ments have been taken from among hundreds of monitoring locations in and around the Pebble Deposit.RIGHT: Regardless of the winter harsh conditions, studies in several dis-ciplines continue year-round as part of Pebble’s efforts to collect base-line data within the region. P

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www.akbizmag.com•Alaska Business Monthly•February2013 75 ■

ting guidelines. Environmental Impact Statements are draft ed with a concur-rent state process where the large mining permitting team at the Department of Natural Resources coordinates the state’s

role. Th e process is extensive but by co-ordinating with all concerned agencies, it helps streamline the process and allows them to fi nd some effi ciencies.”

But even with a streamlined process, the completion of the permitting pro-cess is many years away. “We are all quite proud of the environmental per-formance of projects in Alaska,” Heat-wole says. “Pebble will go through what-ever processes are necessary to ensure we live up to those standards.” R

Paula Cottrell is an Alaskan author.

of a team comprised of world class consul-tants and scientists—many of them with Alaska experience. “I have been impressed by the work that has been done so far to pre-dict the impacts that the mine would have,” Easton says. “I don’t think the public under-stands how sophisticated the model is—the scientists that understand the impacts on the environment and how sophisticated the ideas are to mitigate the possible.”

Proposed FootprintTh e proposed footprint for the mine will occupy three watersheds which is less than 1 percent of the entire Bristol Bay Watershed, according to Easton. “Th e Bris-tol Bay Watershed is a huge place, about 42,000-square miles. When you hear about the Pebble project, it’s easy to conclude that it takes up most of the watershed, but the actual footprint is very small,” Easton says.

Regardless of the small size of that footprint, protecting the world’s largest sockeye salmon fi shery and the strong runs of silver salmon and king salmon is of critical concern to Alaskans. Pro-tecting the waters of Bristol Bay as well as preserving the sport fi shing, hunting and tourism industries in the area is a task that Pebble takes very seriously.

“From a technical challenge, it’s all about water balance and understanding the eff ects on water and water quality,” says Easton. “From a broader perspective, for me, the biggest challenge is that we have to get it right. Th e ray of scrutiny will be intense. We have to identify and man-age all environmental risks to an unprece-dented degree. Th ere is no room for error.”

Th e program forward for Pebble is more baseline environmental studies and a ramp up to permitting, which will be a pretty intensive exercise, according to Heatwole. “A development plan is be-ing put together with strategies for living up to a basic principal of co-existence with the fi shery and water quality and how all of the pieces fi t together,” he says.

Permitting is Years AwayPermitting for a mine like Pebble requires coordinating with a lot of government agencies. “A federal process is triggered under NEPA when you fi le for your fi rst permit, which in Alaska is likely with the ACOE (Army Corps of Engineers) for wetlands permits,” Heatwole says. “Other federal agencies then get pulled into that process—each with their own permit-

EastonEaston HeatwoleHeatwole

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mining

What it takes to keep the lights on and the cogs moving in remote operations

BY RINDI WHITE

In a resource-rich state, it’s oft en not a matter of whether enough of a re-source exists to warrant mining it,

but whether the mineral can be mined in a cost-eff ective way. Deposits might be hundreds of miles from a road, rail line or power supply.

Provision of power to mines can be a healthy chunk of an operation’s budget. Just ask the folks at Don-lin Gold LLC, who--after penciling out costs of shipping diesel to their mine in Western Alaska--have opted instead to build a 300-mile pipeline

to bring in natural gas to fuel their power plant.

Economical and EsteemedIt’s a roughly $900 million project, about 13 percent of the projected $6.7 billion total project cost, says Kurt Parkan, Donlin’s manager of external affairs.

Donlin just entered the permitting process, Parkan says. Scoping sessions were scheduled to begin in January, the start of a three- to four-year eff ort to obtain about 100 permits.

Building an natural gas pipeline from Cook Inlet to the mine, located about 10 miles north of the village of Crooked Creek on the Kuskokwim River, wasn’t Donlin Gold’s fi rst choice.

Asked if Donlin based their power model on other mines in operation, Parkan says each mine is a standalone process. Th e company’s engineers studied power supply options “from the ground up,” he says. Th ey con-sidered coal, diesel, nuclear, peat and even running a power line to the Rail-belt Intertie.

A mining camp is already in place at Donlin Gold’s lease in Western Alaska. The camp and exploration operations at the lease site are powered by diesel generators but Donlin offi cials plan to build a 300-mile pipeline from Cook Inlet to the site to bring in liquefi ed natural gas to power production at the mine.

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Parkan says company offi cials ini-tially planned to use diesel generators to supply the roughly 150 megawatts needed to operate the mine and nearby mine community.

Th e diesel would have to be barged up the Kuskokwim River from Bethel, Parkan says.

“We looked at that a little closer and there was concern expressed from folks in the region,” he says.

Residents were concerned about so much diesel being hauled on the river and through their communities. So

Photo courtesy of Donlin Gold

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Donlin Gold representatives considered running a natural gas line and found that option to be cheaper.

“It takes about 80 million gallons of diesel off the river per year if we do that,” Parkan says.

He says the pipeline will tap into the existing Enstar pipeline at Beluga, across Cook Inlet from Anchorage, and will run roughly parallel to the Iditarod Trail in some sections, crossing over the Alaska Range and veering west to the project site. It will be buried along most of its route, he says, but will jut above ground in two locations where it crosses earthquake faults.

Parkan says the pipeline will be built using temporary access roads.

Parkan says it might be possible for communities along the route to tap into the 14-inch pipeline, which is sized to carry more gas than the project will need. It’s not yet clear who will own and operate the pipeline, he says, and Donlin Gold won’t be in a position to assist com-munities that want to tap into the line.

At the mine, the fuel will fi re a dual-fuel turbine that can be switched to die-sel if necessary. Most of the power will be used to operate the grinding motors, which will grind the ore down into a powder-like consistency, Parkan says. Th e mine will also use autoclaves, which are used to oxidize the ore and make capture of the gold more effi cient. Addi-tional power will be needed for the com-munity, which will be set up a few miles from the mine site. As many as 3,000 workers are expected to be needed dur-ing construction, and up to 1,400 work-ers to run the mine at peak operations.

“Our size is similar to what Golden Valley Electric Association provides for the Fairbanks area,” Parkan says.

LivengoodRick Solie, manager of community and government relations for International Tower Hill Mines, says his company

“Our size is similar to what Golden Valley Electric Association provides for the Fairbanks area.”

—Kurt ParkanExternal Affairs Manager, Donlin Gold

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Buckets full of rocks undergo kinetic testing, one of many tests conducted for Tower Hill Mines’ Livengood Gold Project’s environmental baseline work.

Photo courtesy of Tower Hills Mines

hopes to tap into Golden Valley’s power line for the Livengood gold mine.

Th e mine is about 70 miles northwest of Fairbanks and Solie says ballpark esti-mates show the mine will likely need 80-100 megawatts of power. Th e mine would be similar in operation to Fort Knox, a surface mine where rock is ground to extract the gold, so the mills will be the largest power draw. Solie says the mine, estimated to operate more than 20 years, will likely employ 500 workers and about double that during construction.

Solie says the mine is still in the early phases; feasibility studies are expected to be complete by summer. So there’s a lot of work left to do before an agreement can be worked out with Golden Valley. He estimates it would cost between $30 and $50 million to build a line roughly 50 miles from Golden Valley’s existing line to the mine. A total project cost for the mine isn’t available yet, Solie says.

Tower Hill will analyze a range of power supply options, including pro-ducing its own power, when it begins its feasibility phase. But he says the com-pany prefers to purchase power from Golden Valley.

“If we end up in a self-generation sit-uation, we build (a power plant) on our site and have our own facilities … but you may end up with stranded power out there,” he says.

Th e challenge, according to Solie, will be whether Golden Valley can produce enough power to support the mine, and whether it can do so in a cost-eff ective way for the mine without impacting the community.

“Fairbanks is suff ering from high en-ergy costs,” Solie says. “Down the road, we see a potential opportunity to create Calista Corporation, 301 Calista Court, Ste. A, Anchorage, AK 99518

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■ 80 www.akbizmag.com•Alaska Business Monthly•February2013

some synergies with the community and with our project. A key driver for any kind of solution, for us and for the community, is to get a more cost-eff ec-tive source of power.”

Solie says Tower Hill supports the Fairbanks community’s eff orts to truck LNG from the North Slope as a source of power. Fairbanks leaders have asked the state to fund an LNG plant on the North Slope where gas could be con-verted to liquid for trucking the rough-ly 400 miles to Fairbanks. Th en the liq-uid would be converted back to gas at a plant and used to off set fuel oil now used to generate power.

In December, Gov. Sean Parnell pro-posed a $355 million fi nancial package to help the project move forward. Golden Valley and its partners are pushing to de-

liver the fi rst truck of gas in late 2015. Th e package must be approved by the Legisla-ture before funding will be available.

If the project moves ahead on sched-ule, it could be in place before Tower Hill’s Livengood Mine begins produc-tion. Solie says his company plans to submit permits in 2014 and begin con-struction in 2017. He says the company has characterized its timeline as “ag-gressive but achievable.”

Greens CreekIn Southeast Alaska, there’s a tradition of mines using hydroelectric to pro-vide power. Early owners of Juneau-based power provider Alaska Energy Light and Power were connected to mines in Juneau and set up its fi rst hydroelectric project to supply area

mines before 1900.Th e tradition continues today. Greens

Creek Mine spokesman Mike Satre says the mine is an interruptible customer of AEL&P, using hydroelectric power when the supply is abundant.

Greens Creek is a silver-gold-zinc-lead mine on Admiralty Mine south of Juneau.

Greens Creek has been a customer of AEL&P since 2006. Satre says it’s not a perfect situation; power to the mine is interrupted frequently and is unavail-able when water levels at Dorothy Lake and other AEL&P hydroelectric proj-ects drop.

Sometimes the power is unavailable for three to fi ve months, he says, and Greens Creek must generate its own power using costly diesel fuel. AEL&P gives the mine as much notice of disconnections as pos-sible, he says, so the company can pur-chase more diesel fuel for its generators.

“We burn 75 percent less diesel when we’re on hydroelectric power. It’s a sig-nifi cant savings, especially as diesel costs go up,” Satre says.

A statement from Hecla Mining Co. shows fuel costs spiked to 13 percent of Greens Creek Mine’s operations in 2011, when lower precipitation levels meant the cheaper hydroelectric power was not available.

“Diesel fuel expense at Greens Creek in-creased by $7.7 million in 2011 compared to the same period in 2010 … due to an increase in fuel consumption of 97 per-cent and 15 percent compared to 2010 and 2009, respectively, as well as an increase in the cost of diesel,” according to Hecla.

“From a mining perspective, the cost of power is one of the largest single cost items out there. Ultimately, it’s one we do have some control over,” Satre says.

To that end, the mine has implement-ed energy-saving measures aimed at re-ducing power demand, he says. It’s not clear how much hydroelectric power Greens Creek can count on in the fu-ture. According to Satre, power needs in Juneau are outpacing capacity.

“You can certainly do some conser-vation; the hope is that, once we do get back on power, we maintain those con-servation methods,” Satre says. R

Sarah Perman catalogues core samples in the Tower Hill Mines geologic shop. Sarah Perman catalogues core samples in the Tower Hill Mines geologic shop.

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Rindi White is a freelance journalist living in Palmer.

Page 81: February-2013-Alaska Business Monthly

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■ 82 www.akbizmag.com•Alaska Business Monthly•February2013

mining

Economic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningEconomic Impact of MiningA MESSAGE FROM DEANTHA CROCKETT

As I sat down to sketch out my ideas on “a message from Dean-tha Crockett,” I grabbed a piece

of paper from the recycle bin. When I reached the bottom of the page, I fl ipped it over to continue writing, and nearly laughed at what I saw.

I’m writing my notes for this article on the back of a mailed letter from ac-tor Robert Redford about how the Peb-ble Mine is going to single-handedly destroy this state and its fi sheries. His friends at the Natural Resource Defense Council call Pebble “the worst proj-ect they’ve ever seen” and claim it will spew toxic chemicals from a large dam in an active earthquake zone.

I personally take off ense to such ac-cusations, and like most Alaskans, I just don’t appreciate a celebrity that lives a

privileged life far from our state telling us what we can or can’t do on state-owned land. I also don’t appreciate him contact-ing millions of American households with false information about the mining industry in Alaska. It’s not just Pebble. I’ve seen letters he’s written about oil drilling in ANWR, claiming every last polar bear in Alaska is dying off , and so on.

My job, one I don’t have to act at, is to promote the mining industry in Alaska. I believe the best way to do this is to provide accurate information about what miners do here. We have much to be proud of.

As we like to say: Mining works for Alas-ka. We have seven large mines and hun-dreds of placer mines operating in Alaska. We have multiple exploration projects cropping up around the state and many more known prospects, attractive to inves-

tors around the world. All of these proper-ties operate under strict federal and state laws that require the utmost care for the environment, wildlife and human health.

Many of these mines have received awards for reclamation of the land, cre-ation of enhanced fi sh and wildlife habi-tat, unrivaled water treatment and more. Many of these practices were employed before it was required by law to do so. Mining technology has provided ways to operate more effi ciently, and companies have proactively bettered their environ-mental standards, oft en without being told to. Mines have also implemented a mission to perform at the highest level of safety, instilled in every single employee.

Alaska miners, whether their projects are locally or globally owned, do it right. And why? Because unlike Robert Red-

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www.bbnc.net

It’s Always Been.

Balance.

“Handing down our stewardship of the land and sea to our children is a responsibility we all share. Harvesting one resource must do no harm to another.”— Carla Harris, Subsistence Fisher and BBNC Shareholder

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Deantha Crockett is the Executive Director of the Alaska Miners Association, an industry support organization

with more than 1,300 members. The AMA represents all aspects of the mineral industry before state and federal agencies, the State Legislature and U.S. Congress. Contact her at 907-563-9229 or [email protected].

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ford, our miners are Alaskans fi rst. It’s easy for those who oppose our projects to criticize the ownership and profi tability of mines, but do they ever visit the mines (even when invited!) to meet the workers? How about the haul truck operator who is a third generation Alaskan, or the gener-al manager, who is responsible for every aspect of how the mine operates and lives nearby with his family? Do opponents think they don’t care about Alaska?

Alaska miners work with the highest level of integrity, and care about the en-vironmental impacts of their eff orts—because when they leave their mine at the end of a shift , they go enjoy the rest of what Alaska has to off er. Th ey fi sh, they hike and they enjoy the wonders of the Last Frontier. Th ey, more than any-one, want to keep it that way.

I ask that you please don’t ever hesi-tate to ask a miner about their job. We are excited to share, with anybody who will listen, all there is to know about where we work and what we do. We want the entire world to know that Rob-ert Redford and his friends at the NRDC are not the authority on Alaska and our state’s resource development industries. Th e real experts are the Alaskan work-ers, whose job it is to operate safely and responsibly each and every day.

I am proud of Alaska’s mining industry. As we march into 2013, I’ll continue to wave our fl ag and highlight our safe and environmentally responsible practices any chance I get. I hope you will too. With our excellent record, encouraging commodity prices and impressive mining opportuni-ties, I have high hopes that we’ll see more exciting projects heading our way. R

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IR-2013-1, Jan. 3, 2013—WASHING-TON — Th e Internal Revenue Service on Jan. 3 released updated income-

tax withholding tables for 2013 refl ecting the Jan. 1 changes by Congress.

Th e updated tables, issued Jan. 3 af-ter President Obama signed the changes into law, show the new rates in eff ect for 2013 and supersede the tables issued on December 31, 2012. Th e newly revised version of Notice 1036 contains the per-centage method income-tax withholding tables and related information that em-ployers need to implement these changes.

In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the tempo-rary two-percentage-point payroll tax cut in eff ect for 2011 and 2012. Th e pay-roll tax rates were not aff ected by the Jan. 1 legislation.

Employers should start using the re-vised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2013, but not later than Feb. 15, 2013. For any Social Security tax under-withheld before that date, employ-

ers should make the appropriate adjust-ment in workers’ pay as soon as possible, but not later than March 31, 2013.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as fi lling out a new W-4 withholding form.

As always, however, the IRS urges workers to review their withholding ev-ery year and, if necessary, fi ll out a new W-4 and give it to their employer. For ex-ample, individuals and couples with mul-tiple jobs, people who are having children, getting married, getting divorced or buy-ing a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

More information can be found on irs.gov. R

FinAnciAl serVices

IRS Provides Updated Withholding IRS Provides Updated Withholding IRS Provides Updated Withholding Guidance for 2013Guidance for 2013Guidance for 2013Editor’s note: At press time the Internal Revenue Service was reviewing the details

of the new tax legislation and assessing what impact it will have on this year’s fi ling season. Th e IRS expected to soon make available additional information on when taxpayers can start fi ling 2012 tax returns. At press time, a brief had been issued, which we’ve reprinted below, as well as a revised version of Notice 1036, which em-ployers will need for payroll and can download from the IRS website.

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Page 86: February-2013-Alaska Business Monthly

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Page 87: February-2013-Alaska Business Monthly

special sectionEngineering

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special section Engineering

2013 Engineer 2013 Engineer 2013 Engineer 2013 Engineer 2013 Engineer 2013 Engineer of the Year of the Year of the Year

NomineesNomineesNomineesNomineesNomineesNomineesCOMPLIED BY MIKAL HENDEE

Osama AbazaNominated by Institute of

Transportation Engineers (ITE)

Osama Abaza is a professor of civil engineering at the University of

Alaska Anchorage. He is currently serv-ing as the chair of the civil engineering department at UAA School of Engineer-ing. He is a graduate of Brigham Young University for his doctoral degree and University of Toledo/Ohio for his mas-ter’s and undergraduate degrees. He worked in the academic circles and in-dustry for the last 26 years in the fi eld of civil/transportation engineering as it re-

lates to pavement structures, pavement management, highway engineering and materials, and traffi c engineering. He has published more than 52 refereed publications in transportation engineer-ing. His current research is focused on cold region transportation issues like pedestrian walking speed under icy con-ditions, developing rubberized Portland cement concrete pavements for intersec-tion rutting mitigation and calibration of the National Highway Safety Manual for cold regions applications. He has been a member of Institute of Traffi c Engineers since 1985 and other national and inter-national professional organizations.

Mark Ayers, PE Nominated by Institute of Electrical

and Electronics Engineers (IEEE)

Mark Ayers, PE is manager of RF Engineering at GCI Communica-

tions Corp. headquartered in Anchor-age, Alaska. Mark has a broad range of telecommunications experience in-cluding work in fi ber optics, microwave radio and satellite network design. Signifi cantly, in 2012 Mark published a textbook through Wiley/IEEE press entitled Telecommunications System Reliability Engineering, Th eory and Practice. His primary interests are

Osama AbazaOsama Abaza Mark Ayers, PEMark Ayers, PE Theodore “Tad” DeanTheodore “Tad” Dean

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system engineering, design, modeling, and optimization.

In 2012 Mark received the IEEE Alaska Section “Outstanding Engineer of the Year” award and was elevated to the status of Senior Member within the IEEE. In 2011 he was the recipient of the Alaska Journal of Commerce Top Forty Under 40 award.

Mark holds a Bachelor of Science in Mathematics from UAA and a Master of Science in Electrical Engineering from the UAF. He is a registered Professional Electrical Engineer in the State of Alas-ka an adjunct faculty member in the UAA engineering department. Mark also serves as a member of the UAA EE program advisory board. Mark’s com-munity service contributions include local elementary school science fair judging, presentation to high school students as part of the community’s En-gineering Explorers program and pre-sentation to college students as part of the UAA Engineering program’s Intro-duction to Engineering course. Mark has given talks at professional confer-ences and to members of the public on engineering as a career and on a variety of engineering topics.

Theodore “Tad” DeanNominated by the Society

of American Military Engineers (SAME), Anchorage Post

Aft er growing up in east Anchorage, Th eodore “Tad” Dean earned his

mechanical engineering degree with a minor in applied mathematics from UAF in 1991. He embarked on a diverse department of defense career ranging from environmental remediation to facilities and infrastructure design and construction, mostly in Alaska.

He began his career as a project of-fi cer at McClellan Air Force Base, Cali-fornia as a pioneer in the use of soil vapor extraction technology to recover disposed products. Aft er returning to Alaska he played an instrumental role in the C-17 mission conversion at Joint Base Elmendorf-Richardson by leading an air space conversion study to con-vert the C-130 fl ight paths and train-ing areas to C-17 use. He made a career change in 2008 to the oil and gas sector by joining BP Exploration (Alaska) as a pipeline project engineer.

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His current work is focused on maxi-mizing oil production to stimulate Alaska’s economy and includes: a pipe-line technology study to reduce poten-tial construction and operational risks and improve asset performance; high-pressure gas injection pipeline network rehabilitation to support the gas cap in-jection strategy; and concept design of a 12-mile three-phase production pipeline network to sustain long-term oil produc-tion in the Prudhoe Bay east area.

He has been an active member of the Society of American Military Engi-neers since 1993 and has served on the Anchorage Post Board of Direction and as a web master since 2005. Dean most enjoys exploring the world around him by traveling abroad, exploring Alaska’s rugged coastline with his family, or by volunteering as a swimming deck offi -cial to better Alaska’s youth.

Bharat JaveriNominated by Society

of Petroleum Engineers

Dr. Bharat Jhaveri is a Senior Ad-visor, Reservoir Engineering at

BP Exploration in Anchorage, Alaska. He is currently working in the Alaska Reservoir Management Team, leading eff orts on a broad range of business ini-tiatives including depletion planning and application of Gas EOR technology for both light and viscous oil resource development. Dr. Jhaveri is also lead-ing a Project Team based in Sunbury responsible for development of research and technical capabilities for applica-tion of CO2/MI gas injection technol-ogy to BP’s world-wide resource.

Dr. Jhaveri received a Bachelor of Sci-ence in chemical engineering from IIT Kanpur, a Master of Science in chemi-cal engineering from IIT Chicago, and a Ph.D. in chemical engineering from Stanford University. Aft er working for two-and-a-half years as a Post-Doctoral Fellow at the Department of Physics at University of Utah, studying vapor transport crystal growth processes, he joined Arco Production Research Cen-ter in Plano, Texas in 1981. His technical work at Arco was instrumental in the design of the Prudhoe Bay miscible and gas cycling Projects, and settlement of the Gas Condensate Reserves for which he received the Corporate Outstanding

Technical Achievement Award. He left Arco in 1994 and joined BP Alaska in 1995, aft er a short assignment at the Department of Energy in Bartlesville, Okla., developing technology for vis-cous oil enhanced oil recovery pro-cesses. At BP, he played a lead role in the successful design and sanction of a large gas cap water injection project at Prudhoe Bay. He is an industry-wide expert in the area of phase behavior and compositional modeling, study of res-ervoir displacement mechanisms, and in the design, engineering and evalua-tion of large-scale EOR projects.

Colin Maynard, PENominated by American Society

of Civil Engineers

Colin Maynard, PE has 32 years of experience in structural analysis

and design. He has a Bachelor of Science in Civil Engineering from the Massa-chusetts Institute of Technology and a Master of Science in Civil Engineer-ing from the University of Colorado, Boulder. He has been licensed in Alaska since 1988. His career has aff orded him the opportunity to gain valuable expe-rience designing buildings in Alaska, fi nding new ways to meet the environ-mental challenges of Arctic and sub-Arctic engineering. Maynard excels at these unique challenges by providing award-winning structures that are safe, effi cient and creative. He is familiar with both civilian and military codes and was involved in the adoption of the Municipality of Anchorage’s amend-ments to the Uniform Building Code and the International Building Code since 1991.

Maynard’s involvement in profes-sional societies includes the American Society of Civil Engineers, Alaska Soci-ety of Professional Engineers, Structur-al Engineers Association of Alaska, and Alaska Professional Design Council. He served on the Anchorage Building Board and is currently serving on the State Board of Architects, Engineers, and Land Surveyors.

His recent projects include the Th ree Cedars Offi ce Building, Chefornak School Addition and Remodel, Kodiak Library, and Spy Island Drilling Mod-ules. He is vice president and principal in charge at BBFM Engineers Inc.

Bharat JaveriBharat Javeri

Colin Maynard, PEColin Maynard, PE

John A. Pepe, PEJohn A. Pepe, PE

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www.akbizmag.com•Alaska Business Monthly•February2013 91 ■

John A. Pepe, PENominated by Alaska Society

of Professional Engineers

John A. Pepe, PE is a 35 year Anchor-age resident with 20 years of profes-

sional electrical engineering experience in Alaska. In July 2008, he became a partner with EDC Inc., an Alaska firm for more than 30 years that specializes in electrical and mechanical facilities design. Pepe was previously a senior project manager for PDC Engineers and has worked on a wide range of facilities design projects throughout the state of Alaska.

As a principal with EDC, Pepe is re-sponsible for all aspects of project de-sign management, contract and con-struction administration as well as various office, financial, technical and managerial decision making.

In 2005, Pepe co-founded the South-central Alaska Professional Chapter of Engineers Without Borders, a humani-tarian community development orga-nization that focuses on infrastructure and capacity building in developing countries. He is past president and cur-rent project lead for a recently completed water treatment project at a rural high school in Malawi, East Africa. Through his volunteer work with EWB-USA, he has been active with infrastructure design and construction projects both internationally and in Alaska. Local projects include work with Camp Fire USA and the AWAIC Shelter in Anchor-age. He has also served as a mentor for the Student Chapter of EWB-USA for the University of Alaska Anchorage in their recent project at the Rhema Grace Orphanage in Cameroon, West Africa. He has also participated in the Gifted Mentorship Program through the An-chorage School District since 2003. R

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special section Engineering

Building Innovations in AlaskaBuilding Innovations in AlaskaBuilding Innovations in AlaskaReaching ultimate effi ciency

BY RINDI WHITE

2012 was an exciting year for Alaska on the building front. Old buildings are getting new

treatments that make them more ef-ficient and even, in at least one case, mostly independent of fossil fuel. Buildings are being built that are us-ing technology that is both new to Alaska and the United States, and ex-isting buildings are being reborn into jazzy new structures built with a nod to centuries-old traditions.

Old is New AgainOne way to be environmentally sus-tainable is by reusing what’s available. To that end, design-build team Pfeff er

Development, Criterion Construction and kbp architects worked with tenant NANA Regional Corp. to renovate the old Unocal building at 909 W. Ninth Ave. in downtown Anchorage.

Mike Prozeralik, president of kpb architects, says the building, built in 1969, was stripped down to concrete and steel. Th e design-build team col-laborated with the NANA Development leaders to design an offi ce building that meets their needs and work fl ow. NANA Development’s communications group provided design inspiration so the fi nishing, materials, furniture and details refl ect the Iñupiaq culture and the NANA brand.

“We sat down with a number of their building committee members and talk-ed about their organization and heri-tage,” Prozeralik says. “At kpb archi-tects, we listen fi rst before we start our design exploration. Connecting with a client’s culture helps move us to a de-sign that truly represents who they are.”

Prozeralik says his team studied gar-ments and traditional sewing patterns, called qupak, used for parka trim. Th ree parka trim designs are integrated as a pattern in a large zinc wall behind the main-fl oor reception area. Th e wall connects the cultural history, through the stitching pattern, with NANA’s present-day economic eff orts, which

The exterior of NANA Regional Corporation’s 909 W. 9th Ave. offi ce building in Anchorage includes blue glass, a nod to NANA’s corporate color, a cantilevered board room on the sixth fl oor that juts out like an enclosed balcony, and a mechani-cal penthouse wrapped in blue lights woven in a basket-weave-like pattern.

Photo courtesy of Kevin G. Smith Photography

Page 93: February-2013-Alaska Business Monthly

B U S I N E S S P R O F I L E

P A I D A D V E R T I S E M E N T

Transforming Challenges into SolutionsServing the Arctic for more than 50 years

PDC Inc. Engineers has Alaska roots that stretch back more than five decades. Last year was

a fantastic year for the full-service engi-neering and survey firm. In September, PDC established an employee stock ownership program (ESOP), creating a 100 percent employee-owned en-tity. The firm has 76 employee-owners located in Anchorage and Fairbanks.

PDC has gained national recogni-tion for its performance, being recog-nized as one of the country’s top 100 fastest-growing A/E firms by the Zweig Letter Hot Firm List rising from 127 in 2011 to 75 in 2012. It also made the list of top 100 MEP firms in the nation by the Consulting & Specifying Engineer Magazine’s MEP Giants program.

In 2012, a sampling of PDC’s proj-ects included the Eva Creek Wind Farm; the Doyon Utilities Fort Greely Central Plant Boiler Replacement; the Kodiak High School; and upgrades to the UAF Campus Electrical Distribu-tion infrastructure. Aviation and trans-portation projects included the Nome Airport Master Plan and the Fairbanks University Avenue Rehabilitation.

“We deliver the highest quality ser-vices and transform challenges into solutions for our clients,” says Anchor-age-based Principal Steve Theno.

As a multi-discipline firm, PDC offers civil, structural, mechanical, electrical and environmental engi-neering; as well as survey, fire pro-tection, commissioning, sustainabil-ity and GIS planning services. PDC’s three markets include a focus on the energy, facilities and transporta-tion sectors. “This focus enables us to gain an in-depth understanding of our clients’ methods, processes,

challenges, and constraints and to de-liver services structured to best meet their needs,” Theno explains.

For the energy sector, PDC designs power generation facilities, fuel storage facilities, pipelines and power distribu-tion systems. In the facility sector, it de-velops the civil, structural, mechanical and electrical elements of all types of facilities. In transportation, the com-pany designs rural and urban roads and highways, airports, railways, pe-destrian trails and pathways. “We offer our clients comprehensive, fully inte-grated services efficiently, seamlessly, and cost effectively,” Theno says.

PDC sets itself apart with its full-service capabilities in Arctic and cold regions design. The company is not only focused on delivering services in Alaska, but across the broader circum-polar Arctic region. It understands the environment, the drivers influencing change, and the challenges faced by communities, businesses and indus-tries in the North.

The changing Arctic provides unprecedented challenges — and unique opportunities. PDC is well positioned to provide innovative so-lutions to help those in the North achieve successful, responsible and sustainable advancements. “We have a vested interest in doing it right,” Theno says. “We are very excited about our role in helping clients meet the challenges ahead.”

Helping clients adapt to changing business environments is a major part of PDC’s competitive advantage.

They capitalize on strategic plan-ning and leading technologies such as Building Information Modeling (BIM) software, among other applications.

PDC is distinguished by its full-service capability, strategic geo-graphic locations, depth of experi-ence and long-term employee tenure. Its employee-owners are vested in the continued success and reputation of the company. As PDC’s President, Royce Conlon recently emphasized, “Our highest core value is meeting the needs and exceeding the expec-tations of our clients.”

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PDC Inc. Engineers

Transforming Challenges Into SolutionsServing the Arctic for more than 50 years

Royce Conlon, PE, President1028 Aurora Dr.

Fairbanks, Alaska 99709(907) 452-1414

Steve Theno, PE, Principal2700 Gamble St., Suite 500Anchorage, Alaska 99503

(907) 743-3200www.pdceng.com

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include operating Red Dog Mine, the world’s largest zinc mine.

One of the most noticeable new exte-rior features is the repeated use of the symbolic NANA arc, an umbrella which unifies NANA’s companies and people. That motif is visible atop the building, with blue LED lights on the mechanical equipment penthouse. The building cap-tures the 360-degree views of mountains, inlet and Anchorage skyline. A canti-levered section was added to the sixth-floor boardroom. It juts out from the rest of the building by a few feet, changing the architectural character of the building.

The glass exterior of the building was replaced with high-efficiency blue-tinted panels that reflect NANA’s corporate col-or and also help with solar performance. Along the interior walls, offices have full-height modular glass walls to allow day-light to penetrate the core of the building.

Every staff member has access to views and natural daylight, Prozeralik says.

Interior materials are neutral, al-lowing regional graphics, photography and branding to remain the focus. LED lighting and high-performance boilers were installed and the heating system was upgraded to increase efficiency.

“The project gives new life to a build-ing that had long been vacant. Renovat-ing an old building makes a positive impact in our community,” Prozera-lik says. “Instead of tearing a building down, you refurbish it … so you’re not taking all that waste and throwing it in a landfill to build a new structure.”

Pump It UpIf there’s a buzzword in the construc-tion field this year, it might be “heat pump.” In Southeast Alaska, the Na-tional Oceanic and Atmospheric Asso-

ciation installed a seawater heat pump at its Alaska Marine Research Institute last year, closing the loop to make the 66,000-square-foot facility completely green. NOAA was one of the first to make the step, but several other public buildings are in line behind it.

One of the most notable is the Alaska SeaLife Center in Seward. The 120,000-square foot facility needs building heat and energy and it must also keep aquarium and lab tempera-tures stable for the animals, fish and birds that live there. Prior to April 2009, the facility relied exclusively on large oil-fired boilers. Operations Manager Darryl Schaefermeyer says an efficient 500-kilowatt electrical boiler was in-stalled in 2009 to cut energy costs, but the biggest push to improve efficiency came more recently.

A former SeaLife Center employee read a report about sea water pumps be-ing used in Japan and suggested SeaLife Center officials consider tapping into the latent energy in Resurrection Bay as a power source. Schaefermeyer con-tacted Andy Baker, a clean energy con-sulting engineer who owns Your Clean

“Instead of tearing a building down, you refurbish it … so you’re not taking all that waste and throwing it in a landfill to build a new structure.”

—Mike Prozeralik, President, kpb architects

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Energy, in 2009 and secured funding to study the project. Th e study showed a potential savings, so SeaLife Cen-ter staff started applying for grants to make it happen.

“Th is is a very expensive building to run and operate. We’re a not-for-profi t,

so we don’t have beau coups bucks to operate. We were slammed with the high fuel costs in 2008; that’s why we went with the (new) electric boiler,” Schaefermeyer says.

Sea water is piped from Resurrec-tion Bay, which ranges from 37 to 52

degrees, to a titanium plate heat ex-changer, where it warms a mixture of glycol and water. Th e glycol mixture is piped to two 90-ton Trane chillers, where it comes into contact with a re-frigerant that boils at a low tempera-ture, turning it into a gas. Th e gas is then compressed, raising its tempera-ture. Th e compressed gas raises the temperature of another loop of wa-ter to 120 degrees. It’s then pumped throughout the facility to warm ven-tilation air, preheat domestic hot wa-ter and heat concrete slabs to keep ice from forming on pavement around walkways and animal enclosures.

Th e idea of using a renewable energy source was appealing, especially if it resulted in lower operating costs, Bak-er says. Th e oil boiler was ineffi cient, sending 12 to 15 percent of the heat energy generated up the exhaust stack. And while the electrical boiler has no waste heat, it’s not large enough to car-ry the whole building’s energy needs, especially in winter when more heat is needed for the building and to clear the 12,000 linear feet of heated concrete outside the building.

Alaska Sea Life Center operations manager Darryl Schaefermeyer, CEO Tara Jones, and Your Clean Energy engineer Andy Baker stand with new sea water heat pumps that have cut energy costs for the aquarium.

Alaska Sea Life Center operations manager Darryl Schaefermeyer, CEO Tara

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“We are an aquarium. We are try-ing to be a green facility—we want to improve things and be an example of a green economy,” Schaefermeyer says. “And I thought … we can establish this and show that it will work elsewhere.”

In 2010, the center secured $713,000 in grants from the Denali Commission and Alaska Energy Authority’s Renew-able Energy Fund and secured Your Clean Energy to design the heat pump system. It was enough, Baker says, to install two sea water heat pumps in 2011 and connect them to air handlers and domestic hot water heating. In

December 2012, with additional funds from the MJ Murdock Trust, the center added the sidewalk slab-heating loop to the system. The inefficient oil boilers were turned off in December, a cause for celebration. In the first year of oper-ation, the heat pumps saved the SeaLife Center $32,000 between May and Sep-tember. The savings will increase in the winter, Baker says, because heat loads are larger then and, since Resurrection Bay retains heat from the summer, that heat can be extracted more efficiently.

Schaefermeyer says with the slab heat connected, at least 60 percent of

the building’s heat is being provided by the sea water pumps. Additionally, the facility comes close to being carbon neutral by avoiding burning fuel oil and reducing the amount of electricity used by the electrical boiler.

Schaefermeyer is seeking funding for one more phase: installing a heat recovery system to capture heat from two large exhaust fans and other areas of the facility that waste heat.

“At that point it will reach ultimate efficiency,” Baker says.

Schaefermeyer says the new, efficient heating system is generating interest among people who visit the SeaLife Center. Around 100 people asked for more information or a tour of the new heat pumps, and he says it would likely be added to the behind-the-scenes tour.

More heat pump systems are on the way. Anchorage engineering and survey firm PDC Inc. Engineers was the lead engineering firm on the 11,000-square-foot Juneau Forestry Sciences Labora-tory at Auke Lake, which will be heated by a ground source heat pump system. The system works like the sea water heat pumps, except that the heat is being ex-tracted from the temperature of the soil.

PDC also designed a ground source heat pump system coupled with a so-lar hot water system that was installed at Weller Elementary School in Fair-banks. The Kodiak Fisheries Research Center is also installing a sea water heat pump, which is heating the building and providing chilled sea water for ex-periments, says Danny Rauchenstein, a senior associate with PDC, which is working on the project.

New UAF Building is a New Kind of Cool

Rauchenstein is the lead mechanical engineer on the new 100,000-square foot Margaret Murie Life Sciences Building on the University of Alaska Fairbanks campus.

The university generates its own power and uses excess steam to heat buildings on campus. In the summer, the steam heat isn’t needed; cooling is done through the ventilation system, which uses a lot of power. But Rauchen-stein says studies have shown cooling through ventilation requires more en-ergy than cooling with water. So the company proposed using the radiant

Page 97: February-2013-Alaska Business Monthly

SUPPORT“Caterpillar® makes a great product, but it’s the support of the local dealer that makes the difference. The bottom line is that N C Machinery product support is what keeps us in business.”

Dave Cruz, President,Cruz Construction

Several machines from Cruz Construction’s extensive Cat fleet hard at work in Grayling, AK.

Industry-Leading Customer ServiceIn Washington: 800-562-4735 In Alaska: 800-478-7000

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Freelance journalist Rindi White lives in Palmer.

fl oor heat to heat and cool the building as well—the fi rst radiant-fl oor cooling system in Alaska and one of the fi rst in the nation, PDC offi cials say.

“It’s hard to imagine a building in Alaska whose innovation is in the cool-ing system,” says Steve Th eno, PDC’s principal mechanical engineer.

Rauchenstein says the building also contains a steam absorption plant which uses the steam to generate chilled water for cooling the buildings on the upper campus.

Th e steam is generated as a byprod-uct of power generation needed to run the campus’ cooling systems. “Th e steam is essentially free,” he says.

Daylighting controls are another neat feature, says PDC senior associate Robert Posma Jr. Th e building has a lot of glass, so outside facing spaces incorporated photo sensors that automatically adjust to the light level needed. So fewer lights might be needed on a sunny day, but the lights will be brighter if it’s dreary outside.

Laboratory spaces vent directly out-side, which can be a source of a lot of waste heat. Rauchenstein says a heat pipe heat recovery system is being in-stalled in the exhaust streams that will harvest the heat for use in other places inside the building.

Th eno says other innovations were included, such as LED lighting and smart heating and light systems that sense when people are present in a room and can lower thermostats and turn off lights when people leave. Rauchenstein says clients are more frequently asking for these types of innovations but, ulti-mately, the project has to make mone-tary sense. Th e features included in the Life Sciences building, he says, will pay for themselves in fewer than 10 years.

Th e building will be complete in spring 2013 and in use in the fall.

Th eno says energy costs have almost always been at the forefront of discus-sions when they’ve worked with rural communities in the past 15-20 years simply because energy costs were so high. But as energy costs rise, more cli-ents in Southcentral Alaska are asking for buildings that are more effi cient or environmentally sustainable. R

An artist’s rendering shows the new Mar-garet Murie Life Sci-

ences Building that PDC Inc. Engineers

is working on. The building contains

several effi ciency measures, includ-

ing a radiant cooling system that is the

fi rst of its kind in Alaska and perhaps

the United States.

Image courtesy of PDC Inc. Engineers

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Company Top Executive Estab.AK

Empls. Services

Architects Alaska900 W. 5th Ave., Suite 403Anchorage, AK 99501Phone: 907-272-3567

Mark Kneedler, Pres.

[email protected]

1950 27 Architectural design, space planning, interior design, and master planning forcommercial, industrial, residential, medical, religious and educational facilities statewide.

Bettisworth North Architects & Planners212 Front St., Suite 200Fairbanks, AK 99701Phone: 907-456-5780

Charles Bettisworth, AIA/President

[email protected]

1976 26 Anchorage Office: 2600 Denali Street, Suite 710, Roy Rountree, AIA, Principal. Alaskaarchitecture, landscape architecture, interior design and planning for healthcare,education, military, housing, libraries, museums, public safety, civic buildings, seniorcare, and commercial development.

Bezek Durst Seiser3330 C St., Suite 200Anchorage, AK 99503Phone: 907-562-6076

Daniel Seiser, Pres.

[email protected]

1981 22 Master planning, space planning, concept development, design, grant assistance,project development, feasibility and development assistance.

Blue Sky Studio6771 Lauden Cir.Anchorage, AK 99502Phone: 907-677-9078

Catherine Call, Owner

[email protected]

2002 2 Architecture with a focus on residential and food service projects.

Design Alaska, Inc.601 College Rd.Fairbanks, AK 99701Phone: 907-452-1241

Jack Wilbur, Pres.

[email protected]

1957 61 Design Alaska provides architecture; civil, structural, mechanical, fire protection,electrical, and environmental engineering; landscape architecture; and surveying. Thefirm also offers planning, condition assessments, energy modeling, LEED, constructionadministration and commissioning.

ECI/Hyer Architecture & Interiors101 W. Benson Blvd., Suite 306Anchorage, AK 99503Phone: 907-561-5543

Mary Knopf, Principal/Interior Designer

[email protected]

1981 20 ECI/Hyer is an award-winning architecture, interior design, and planning firm based inAnchorage, Alaska. For over 30 years, our firm has been designing people places.

Ivy & Co. Architects/Mark A. Ivy Corp.3835 Spenard Rd.Anchorage, AK 99517Phone: 907-563-5656

Mark Ivy, Principal Architect

[email protected]

1984 5 Innovative residential and commercial designs for the Alaska environment.

Jensen Yorba Lott Inc.522 W. 10th St.Juneau, AK 99801Phone: 907-586-1070

Wayne Jensen, AIA/Pres.

www.jensenyorbalott.com

1935 14 Planning, programing, design and construction administration for architecture, interiordesign, space planning and construction management.

kpb architects425 G St., Ste. 800Anchorage, AK 99501Phone: 907-274-7443

Mike Prozeralik, Pres.

[email protected]

1981 20 Award winning full service cold climate/arctic design experts in architecture, planning,landscape architecture, interior design, design-build; Native, federal, housing,healthcare, K-12 schools, retail/commercial projects; client oriented pre-design andenergy efficient renovation/ expansion leader

Kumin Associates Inc.808 E. St., Suite 200Anchorage, AK 99501Phone: 907-272-8833

Charles Banister, Principal

[email protected]

1977 20 Kumin Associates provides planning and architectural and interior design for urban, ruraland remote facilities throughout Alaska and in Washington, Greenland, Antarctica, andthe Russian Far East.

Larsen Consulting Group Inc.3710 Woodland Dr., Suite 2100Anchorage, AK 99517Phone: 907-243-8985

Wallace Swanson, Pres./CEO

[email protected]

1993 22 LCG is a multi-disciplined firm providing architecture, structural, civil and sanitationengineering, land surveying and mapping services. Our staff specializes in ruralinfrastructure projects and is experienced with traditional, force account and design/buildproject delivery.

Livingston Slone Inc.3900 Arctic Blvd., Suite 301Anchorage, AK 99503Phone: 907-550-7400

Don Slone, PE

[email protected]

1975 23 Architecture (all phases), civil engineering, construction administration.

Martha Hanlon Architects Inc.PO Box 72292Fairbanks, AK 99707Phone: 907-458-7225

Martha Hanlon, AIA/Pres.

[email protected]

1998 3 Architectural design and project planning.

Michael L. Foster & Associates Inc.13135 Old Glenn Hwy., Suite 200Eagle River, AK 99577Phone: 907-696-6200

Michael Foster, PE/Owner

[email protected]

1998 20 Environmental planning documents (EA/EIS), and full-service A/E firm with design/build,construction management, and general contracting capabilities.

UMIAQ6700 Arctic Spur Rd.Anchorage, AK 99518Phone: 907-677-8220

Richard Reich, PE, Gen. Mgr.

[email protected]

1982 200 Regulatory planning, stakeholder relations, architecture, engineering, surveying,geospatial analysis, response planning and operations, civil construction, arctic sciencesupport and full-service camps.

USKH Inc.2515 A St.Anchorage, AK 99503Phone: 907-276-4245

Timothy Vig, Pres./Principal

[email protected]

1972 95 USKH is a full-service, multi-discipline architectural and engineering firm. Our servicesinclude: architecture; civil, structural, transportation, mechanical and electricalengineering; surveying; landscape architecture; planning; and environmental services.

WHPacific Inc.300 W. 31st Ave.Anchorage, AK 99503Phone: 907-339-6500

Robert Macomber, Pres.

[email protected]

1981 90 Architecture and multidiscipline engineering planning and design; survey and mapping;planning, GIS, permitting and grant writing; environmental site assessments and naturalresource services; geologists and environmental scientists; project management andconstruction administration services.

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Alaska Anvil Inc.509 W. Third Ave.Anchorage, AK 99501Phone: 907-771-1300

Cliff Freeman, Branch Manager

[email protected]

1984 30 Full service consulting engineering for the Petro chemical industry.

AMC Engineers701 E. Tudor Rd., Suite 250Anchorage, AK 99503-7457Phone: 907-257-9100

Pat Cusick, Pres.

[email protected]

1981 35 AMC Engineers is an award winning firm that specializes in mechanical, electrical,control and telecommunications engineering services in support of institutional, industrialand commercial projects. AMC also provides related services such as commissioning,life cycle cost analysis, energy modeling, and assistance with LEED accreditation.

ASRC Energy Services Inc.3900 C St., Suite 701Anchorage, AK 99503Phone: 907-339-6200

Jeff Kinneeveauk, Pres./CEO

[email protected]

1985 5,000 AES offers expertise from the earliest regulatory stage to exploration, drilling support,engineering, fabrication, construction, project management, operations and maintenanceand field abandonment.

BBFM Engineers Inc.510 L St., Suite 200Anchorage, AK 99501-1949Phone: 907-274-2236

Dennis Berry, Pres.

[email protected]

1996 16 Structural engineering design and construction administration for new buildings andadditions to existing buildings, analysis of existing buildings, including seismicevaluations and condition surveys, design of tanks and modules, and design of bridges(i.e. walkways and small trail bridges). Specialize in cold climates: Alaska and Antarctica.

Bezek Durst Seiser3330 C St., Suite 200Anchorage, AK 99503Phone: 907-562-6076

Daniel Seiser, Pres.

[email protected]

1981 22 Master planning, space planning, concept development, design, grant assistance,project development, feasibility and development assistance.

Bratslavsky Consulting Engineers, Inc.500 W. 27th Ave., Suite AAnchorage, AK 99503Phone: 907-272-5264

Tanya Bratslavsky, Pres.

[email protected]

1985 13 Bratslavsky Consulting Engineers, Inc. is a multi-discipline engineering and projectmanagement company specializing in full design, value engineering, tenantimprovements, facility condition and ADA assessments, permitting, energy upgrades andaudits, construction management and inspections, QA/QC, and other services.

Bristol Engineering Services Corporation111 W. 16th Ave., Third FloorAnchorage, AK 99501Phone: 907-563-0013

Travis Woods, Sr. Civil Engineer/CEO

[email protected]

1994 18 Civil engineering, permitting and planning; total project management encompassingplanning, design and construction.

CH2M HILL949 E. 36th Ave., Suite 500Anchorage, AK 99508Phone: 907-762-1500

Mark Lasswell, AK Pres./GM

[email protected]/alaska

1946 3,100 CH2M HILL offers consulting, engineering, procurement, logistics, fabrication,construction, construction management, operations and maintenance services that willsupport entire project life cycles.

CMH Consultants801 W. Fireweed Ln., Suite 201Anchorage, AK 99503-1866Phone: 907-277-3800

F. Bell, PE, LS/CEO

[email protected]

1956 8 CMH Consultants, Inc. (CMH) has a 40-year history in Alaska providing engineeringdesign, consultation, and construction support. Originally founded in 1956, as Crews,MacInnes, Hoffman, we are known as one of Alaska's oldest mechanical firms.

Combs Engineering503 Charteris St.Sitka, AK 99835-7042Phone: 907-747-5725

Chris Combs, PE 1994 1 Mechanical engineer providing HVAC and plumbing design services.

CRW Engineering Group, LLC3940 Arctic Blvd., Suite 300Anchorage, AK 99503Phone: 907-562-3252

D. Michael Rabe, Mng. Principal

[email protected]

1981 51 Engineering, surveying, planning, permitting, and construction management.

DAT/EM Systems International8240 Sandlewood Pl., Suite 101Anchorage, AK 99507-3122Phone: 907-522-3681

Jeff Yates, General Manager

[email protected]

1987 11 DAT/EM Systems International is an Alaska-based developer of world-classphotogrammetric software. Since 1987, DAT/EM has built human interface tools toefficiently extract and edit 3D vector features from stereo imagery and point clouds.

Del Norte Surveying Inc.PO Box 110553Anchorage, AK 99511Phone: 907-345-8003

Lisa Greer, Owner

[email protected]

1986 2 Professional land survey firm providing survey services to both the public and privatesectors. Our clients have been the AK St DOT, Fish & Wildlife, National Park Service,MOA, FAA, Cook Inlet Housing, engineering firms, oil companies and misc. generalcontractors. DNS is certified as a woman and minority business.

Design Alaska, Inc.601 College Rd.Fairbanks, AK 99701Phone: 907-452-1241

Jack Wilbur, Pres.

[email protected]

1957 61 Design Alaska provides architecture; civil, structural, mechanical, fire protection,electrical, and environmental engineering; landscape architecture; and surveying. Thefirm also offers planning, condition assessments, energy modeling, LEED, constructionadministration and commissioning.

DOWL HKM4041 B St.Anchorage, AK 99503Phone: 907-562-2000

Stewart Osgood, Pres.

[email protected]

1962 150 NEPA documentation, agency scoping and permitting and public involvement.

Doyon Emerald11500 C St., Suite 150Anchorage, AK 99515Phone: 907-258-8137

David Johnston, VP/Eng. Mgr.

[email protected]

1996 19 Provides health, safety, security and environmental consulting including developmentand integration of environmental management systems, project management,environmental site assessments, regulatory and permitting, NEPA support, SPCC,SWPPP, environmental planning, and community relations.

EDC Inc.213 W. Fireweed Ln.Anchorage, AK 99503Phone: 907-276-7933

John Faschan, P.E./Pres.

[email protected]

1980 8 Mechanical and electrical engineering services for municipal, industrial and commercialfacilities. Rural water and wastewater and energy systems.

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AKCompany Top Executive Estab. Empls. ServicesCompany Top Executive Estab.

AKEmpls. Services

EHS - Alaska Inc.11901 Business Blvd., Suite 208Eagle River, AK 99577Phone: 907-694-1383

Robert French, Principal in Charge

[email protected]

1986 9 Hazardous building materials identification and project design. Code compliance andplans review. Industrial hygiene and worker safety, health and safety plans, airmonitoring.

Electric Power Systems, Inc.3305 Arctic Blvd., Suite 201Anchorage, AK 99503Phone: 907-522-1953

David Burlingame, PE/Mng. Partner

[email protected]

2005 82 Electric Power Systems offers a wide range of experience and education in the area ofpower system operation, engineering, and administration. EPS provides a full range ofservices, from planning studies, design, construction, and start-up/commissioning toperiodic testing and maintenance.

EMC Engineering8301 Old Seward Hwy.Anchorage, AK 99518Phone: 907-644-3923

Ryan Bloom, Owner

[email protected]

2002 50 Provides construction administration, civil engineering, quality control management,materials testing and special inspection services.

Enterprise Engineering, Inc.2525 Gambell St., Suite 200Anchorage, AK 99503Phone: 907-563-3835

Kevin Murphy, Pres.

[email protected]

1991 36 Established in 1972, EEI provides multidiscipline consulting engineering and specialtyservices to public and private clients throughout Alaska and worldwide. Our Anchorageoffice is home to a thriving team of 36 engineers, surveyors, designers, and supportstaff. With every project and every client we work together to bring clarity to the complex.

Environmental Management Inc.206 E. Fireweed Ln., Suite 201Anchorage, AK 99503Phone: 907-272-9336

Larry Helgeson, Principal Eng.

[email protected]

1988 13 Environmental and civil engineering, consulting, plus related services and training. Ateam of dedicated professionals working to make Alaska cleaner and safer for tomorrow.

F. Robert Bell & Associates801 W. Fireweed Ln., Suite 201Anchorage, AK 99503-1801Phone: 907-274-5257

Bob Bell, PE/LS/CEO

[email protected]

1974 80 Engineering services and land surveying services.

Fred Walatka & Associates3107 W. 29th Ave.Anchorage, AK 99517-1704Phone: 907-248-1666

Fred Walatka, Owner

[email protected]

1967 4 We do plot plans, as builts, ALTA's and lot staking.

Fugro5761 SIlverado Way, Suite OAnchorage, AK 99518Phone: 907-561-3478

Scott Widness, Alaska Div. Mgr.

[email protected]

1994 8 Offshore: marine geophysics and seafloor mapping, metocean services, geotechnicalinvestigations. Onshore: aerial and satellite mapping, precise positioning, geotechnicalinvestigations, and regulatory and environmental assessments.

Golder Associates Inc.2121 Abbott Rd., Suite 100Anchorage, AK 99507Phone: 907-344-6001

Mark Musial, Principal/Mgr.

www.golder.com

1980 40 Arctic and geotechnical engineering, groundwater resource development, environmentalsciences and remedial investigation.

Haight & Associates, Inc.526 Main St.Juneau, AK 99801Phone: 907-586-9788

Benjamin Haight, Pres./CEO

[email protected]

1980 6 Consulting electrical engineers serving Southeast Alaska since 1980.

Hattenburg Dilley & Linnell3335 Arctic Blvd., Suite 100Anchorage, AK 99503Phone: 907-564-2120

Scott Hattenburg, Principal/Pres.

[email protected]

2000 52 Hattenburg Dilley & Linnell, LLC is an Alaskan consulting firm specializing in civil,geotechnical, transportation, and arctic engineering, environmental and earth science,surveying, and construction management for government and industry.

HDR Alaska Inc.2525 C St., Suite 305Anchorage, AK 99503Phone: 907-644-2000

Duane Hippe, Sr. VP/PE

[email protected]

1979 130 Engineering services cover civilstructural engineering for transportation, water/wastewater, solid waste, federal, military, and oil & gas infrastructure. Specialty servicesin design-build. Engineering supported by full range of environmental/planning staff. AKoffices supported by 8,000 HDR staff nationwide.

ICRC - a subsidiary of VSE Corporation421 W. First Ave., Suite 200Anchorage, AK 99501Phone: 907-561-4272

Carl Williams, CEO/Pres.

[email protected]

1983 30 Project management, project controls, quality inspections, SWPP plans, permitting, civiland environmental engineering, construction administration.

Langdon Engineering318 W. 10th Ave.Anchorage, AK 99501Phone: 907-272-1789

Albert Swank Jr., PE/Owner

[email protected]

1980 1 High technology nuclear physics research, nuclear medicine, biophysics, bioengineering,cryogenics, ultra high vacuum, thermal and other engineering and scientific areas toinclude high energy particle accelerators.

Lanning EngineeringPO Box 470Ester, AK 99725-0470Phone: 907-479-2444

David Lanning, PE/Principal

[email protected]

1991 2 Consulting civil and structural engineering.

Larsen Consulting Group Inc.3710 Woodland Dr., Suite 2100Anchorage, AK 99517Phone: 907-243-8985

Wallace Swanson, Pres./CEO

[email protected]

1993 22 LCG is a multi-disciplined firm providing architecture, structural, civil and sanitationengineering, land surveying and mapping services. Our staff specializes in ruralinfrastructure projects and is experienced with traditional, force account and design/buildproject delivery.

Little Susitna Construction Co.821 N. St., Suite 207Anchorage, AK 99501Phone: 907-274-7571

Tammie Smith, Gen. Mgr.

[email protected]

1980 1,020 General, mechanical and electrical contractor. Architects, civil, mechanical and electricalengineers, licensed in 11 states. Construction project management. Importer, exporterand global project consultation.

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Livingston Slone Inc.3900 Arctic Blvd., Suite 301Anchorage, AK 99503Phone: 907-550-7400

Don Slone, PE

[email protected]

1975 23 Architecture (all phases), civil engineering, construction administration.

Lounsbury & Associates5300 A St.Anchorage, AK 99518Phone: 907-272-5451

Jim Sawhill, Pres.

[email protected]

1949 79 Civil engineering, land surveying, planning, construction management. Servicing localand state government, oil and gas industry and more.

MBA Consulting Engineers Inc.3812 Spenard Rd., Suite 200Anchorage, AK 99517Phone: 907-274-2622

Bradley Sordahl, Principal

[email protected]

1989 16 MBA Consulting Engineers, Inc., established in 1989, is a full service mechanical andelectrical consulting engineering firm specializing in arctic, subarctic and northernmaritime design.

Michael Baker Jr. Inc.1400 W. Benson Blvd., Suite 200Anchorage, AK 99503Phone: 907-273-1600

Jeffrey Baker, AK Office Principal

www.mbakercorp.com

1942 46 Engineering - pipeline, H&H, geotechnical, mechanical, civil, structural; GIS and LiDARmapping; design; NEPA and permitting.

Michael L. Foster & Associates Inc.13135 Old Glenn Hwy., Suite 200Eagle River, AK 99577Phone: 907-696-6200

Michael Foster, PE/Owner

[email protected]

1998 20 Environmental planning documents (EA/EIS), and full-service A/E firm with design/build,construction management, and general contracting capabilities.

Monrean Engineering & AssociatesPO Box 9343Ketchikan, AK 99901-4343Phone: 907-247-5920

Fred Monrean, PE

[email protected]

1997 1 Civil engineering, surveying, wastewater design, subdivisions, structural engineering,storm drainage design, foundation engineering, inspections, engineering reports, marinestructures, permitting, etc.

MWH1835 S. Bragaw St., Suite 350Anchorage, AK 99508Phone: 907-248-8883

Chris Brown, Alaska Reg. Mgr.

[email protected]

1977 40 Water, wastewater, environmental remediation, permitting and power.

NANA WorleyParsonsPO Box 111100Anchorage, AK 99511Phone: 907-273-3900

Rock Hengen, Pres./Gen. Mgr.

[email protected]

1997 425 Project delivery company focused on multi-discipline engineering and design,procurement and construction management services for the hydrocarbons, power,minerals and metals, and infrastructure and environmental.

NORTECH Inc.2400 College Rd.Fairbanks, AK 99709-3754Phone: 907-452-5688

John Hargesheimer, Pres.

[email protected]

1979 32 Environment Energy, Health and Safety: A multidisciplined professional consulting firmwith registered engineers and certified industrial hygienists on staff providingenvironmental, engineering, energy auditing industrial hygiene and health and safetyprofessional services throughout Alaska.

Northern Latitude AssociatesPO Box 61201Fairbanks, AK 99706Phone: 907-479-6370

Wayne Larson, PE/Pres.

[email protected]

1977 1 Engineering services.

Northern Mechanical EngineeringPO Box 113076Anchorage, AK 99511-3076Phone: 907-243-7254

Jay Smith, PE/Pres.

[email protected]

1991 1 Automotive Engineering, accident reconstruction, failure analysis.

O'Neill Surveying & EngineeringPO Box 1849Sitka, AK 99835Phone: 907-747-6700

Patrick O'Neill, PE/RLS/Owner

[email protected]

1997 4 O'Neill Surveying & Engineering is a land surveying and civil engineering companyspecializing in land development, but active in all aspects of land surveying as well asroad and utility development and design.

PDC Inc. Engineers1028 Aurora Dr.Fairbanks, AK 99709Phone: 907-452-1414

Royce Conlon, Envr. Principal/Pres.

www.pdceng.com

1975 84 Supports highway, aviation, utility, and facility projects by providing environmentalexpertise for routes and site selection; assessing potential impacts to specificenvironmental categories such as wetlands and hazardous materials and developingdesigns to address identified environmental issues.

PM&E Services LLC123 E. 24th Ave. #11Anchorage, AK 99503Phone: 907-222-5059

Damien Stella, Principal

[email protected]

1999 1 Project management and civil engineering support to a broad range of clients frommunicipal utilities to commercial and light industrial facilities.

PND Engineers Inc.1506 W. 36th Ave.Anchorage, AK 99503Phone: 907-561-1011

John Pickering, Pres.

www.pndengineers.com

1979 77 General civil, structural, geotechnical, arctic, marine, and coastal engineering; survey;permitting; hydrology; inspection; Q/A; and value engineering, among others.

Price Gregory International301 W. Northern Lights Blvd., Suite 300Anchorage, AK 99503Phone: 907-278-4400

David Matthews, VP, AK Area Mgr.

[email protected]

1974 50 Pipeline, power, heavy industrial construction, EPC and consulting services.Infrastructure construction services provider.

Quest Engineering Inc.PO Box 210863Anchorage, AK 99521Phone: 907-561-6530

Marc Cottini, Pres./Owner

[email protected]

1996 3 Civil engineering, environmental compliance, and construction management services.

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AKEmpls. Services

R&M Consultants Inc.9101 Vanguard Dr.Anchorage, AK 99507-4447Phone: 907-522-1707

Bret Coburn, CEO

[email protected]

1969 125 NEPA documentation and compliance, initial site assessments, phase I and II ESAs,environmental assessments, soil and groundwater monitoring, remediation programs,UST removal/decommissioning, site selection, revegetation and restoration, erosioncontrol and more.

R&M Engineering Inc.6205 Glacier Hwy.Juneau, AK 99801-7906Phone: 907-780-6060

Michael Story, PE/Pres.

[email protected]

1968 18 R&M provides civil, structural and geotechnical engineering as well as land surveyingand materials testing and inspection in Southeast Alaska: Craig, Haines, Hoonah,Gustavus, Juneau, Ketchikan, Klawock, Sitka, Skagway, Wrangell and other SoutheastAlaska communities.

R&M Engineering-Ketchikan Inc.355 Carlanna Lake Rd.Ketchikan, AK 99901Phone: 907-225-7917

Trevor Sande, Pres.

[email protected]

1989 17 R&M Engineering-Ketchikan is a civil and soils engineering and surveying companyserving southern Southeast Alaska from offices in Ketchikan, Wrangell and Craig. Wealso specialize in materials testing and inspection and have an ADEC certifiedmicrobiology lab.

RBA Engineers, Inc.301 E. Fireweed Ln., Suite 100Anchorage, AK 99503Phone: 907-276-3768

Manju Bhargava, Pres.

[email protected]

1977 7 Provides mechanical & electrical engineering services statewide inclusive of enhancedcommissioning, specially for military construction. In 2012, the firm has embarked uponits 35th year with Fort Greely Missle Defense Chiller, Grizzly's Pizza & Wings, JBERCommissioning Projects, Flying Museum and Alaska Airlines Upgrade.

Reid Middleton Inc.4300 B St., Suite 302Anchorage, AK 99503Phone: 907-562-3439

Bob Galteland, Pres.

[email protected]

1953 6 We offer engineering, planning, and surveying through the disciplines of structural, civil,aviation, waterfront, and transportation to public and private sector clients throughout thePacific Northwest and Alaska. Our Anchorage office has grown to be one of the mostservice-oriented structural engineering firms in Alaska.

Rodney P. Kinney Associates Inc.16515 Centerfield Dr., Suite 101Eagle River, AK 99577Phone: 907-694-2332

Rodney Kinney, Jr. PE/Pres.

[email protected]

1980 23 Rodney P. Kinney Associates, Inc. (RPKA) is both a family-owned and Native Americancivil engineering and surveying firm which was founded in 1980. The firm is operated bythe three Kinney brothers who are tribal members of the Native Village of Savoonga.RPKA has the knowledge and expertise to assist with delivering transportation projects.

RSA Engineering Inc.2522 Arctic Blvd., Suite 200Anchorage, AK 99503Phone: 907-276-0521

Mack Bergstedt, Pres.

[email protected]

1983 46 Mechanical/electrical consulting engineering services. Notable projects: Kipnuk Schoolrenovation/addition, Boney Courthouse remodel, Eielson AFB Party Dorms, BethelNative Corporation store/theater, Kotzebue Magnet School renovation/addition, IDIQ A/Eservices & engineering for various NSF projects at Antarctica & New Zealand.

Schneider Structural Engineers8811 Toloff St.Anchorage, AK 99507Phone: 907-561-2135

Jeff Robertson, PE/Principal

[email protected]

2000 11 Engineering services.

Shannon & Wilson Inc.2355 Hill Rd.Fairbanks, AK 99709-5326Phone: 907-458-3103

Stafford Glashan, VP/Anch. Offc. Mgr.

[email protected]

1974 315 Shannon & Wilson is a nationally renowned engineering and applied earth sciences firmwith offices in Anchorage, Fairbanks, and the Lower 48. Our services includegeotechnical analysis and design; frozen ground engineering; environmentalcompliance, assessments, and remediation; earthquake analysis; and materials testing.

Shaw Alaska, Inc.2000 W. Int'l Airport Rd., Suite D-3Anchorage, AK 99502Phone: 907-243-6300

Kim Marcus, Dist. Mgr./Principal

[email protected]

2002 3 A vertically-integrated provider of technology, engineering, consulting, procurement, pipefabrication, construction and maintenance services for government and private-sectorclients in the energy, chemicals, environmental and infrastructure markets.

Stephl Engineering LLC3900 Arctic Blvd., Suite 204Anchorage, AK 99503Phone: 907-562-1468

Matt Stephl, PE

[email protected]

1996 6 Engineering firm specializing in trenchless technology engineering including horizontaldirectional drilling, cured in place pipe lining water sewer, closed circuit televisioninspection (CCTV), pipe condition assessment, sliplining, auger boring and structurerehabilitation.

UAF INEPO Box 755910Fairbanks, AK 99775Phone: 907-474-5457

Daniel White, Dir.

[email protected]

1982 85 The Institute of Northern Engineering provides research and engineering solutions forthe world's cold regions and beyond. INE conducts research in all areas of engineering,including, but not limited to: civil and environmental, petroleum, mining, geological,electrical, computer and mechanical engineering.

UMIAQ6700 Arctic Spur Rd.Anchorage, AK 99518Phone: 907-677-8220

Richard Reich, PE, Gen. Mgr.

[email protected]

1982 200 Regulatory planning, stakeholder relations, architecture, engineering, surveying,geospatial analysis, response planning and operations, civil construction, arctic sciencesupport and full-service camps.

URS700 G St., Suite 500Anchorage, AK 99501Phone: 907-562-3366

Joe Hegna, Alaska Ops Mgr./VP

www.urscorp.com

1904 100 Civil/structural/transportation engineering design services, analysis/response,containment sites, cultural/historical/archaeological/land use/noise & threatened/endangered species studies, fisheries/geology/soils expertise, GIS/AutoCAD, Section4fevaluations, wetland delineation, wildlife/vegetation/socioeconomic analyses.

USKH Inc.2515 A St.Anchorage, AK 99503Phone: 907-276-4245

Timothy Vig, Pres./Principal

[email protected]

1972 95 USKH is a full-service, multi-discipline architectural and engineering firm. Our servicesinclude: architecture; civil, structural, transportation, mechanical and electricalengineering; surveying; landscape architecture; planning; and environmental services.

VEI Consultants1345 Rudakof Cir., Suite 201Anchorage, AK 99508-6105Phone: 907-337-3330

Vern Roelfs, Pres.

[email protected]

1981 6 Civil and environmental engineering, land surveying.

WHPacific Inc.300 W. 31st Ave.Anchorage, AK 99503Phone: 907-339-6500

Robert Macomber, Pres.

[email protected]

1981 90 Architecture and multidiscipline engineering planning and design; survey and mapping;planning, GIS, permitting and grant writing; environmental site assessments and naturalresource services; geologists and environmental scientists; project management andconstruction administration services.

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dining

Table 6 Restaurant

ALASKA THIS MONTH

“There’s always a time in your life that you just feel

like having a fabulous cheese-burger,” says Lynn Perez, co-owner of Table 6 in midtown Anchorage with her husband, chef Alex Perez—and if a pa-tron applauds house-made buns, hand-pressed pat-ties and sauces made from scratch, they will fi nd that fabulous burger at Table 6.

“We make our own chicken stock, we make our own de-mi-glace, we make our own bread… we buy fruits and vegetables from Vanderweele farms in Palmer…we partner with Alaska Pasta to stuff our fi llings into our ravioli…anything we can make in-house, we do.”

Alex and Lynn were no strangers to the restaurant indus-try when they opened Table 6 in Midtown. Having domi-nated the upscale dining market in Eagle River for the last twelve years with their fi rst restaurant, Haute Quarter Grill, the Perez family had the know-how and the inspiration to give the people what they want: a come-as-you-are casual restaurant with high-quality, fun-type foods.

Th e restaurant’s most popular dishes are fi ner versions of everyman’s food: nachos, burgers, fries, soups, wings, rings and fresh artisanal pastas.

“Happy hour is from 4 p.m. to 6 p.m. and 9 p.m. to close, and features six dishes for six dollars each,” Lynn says.

Whether seeking a dinner, an aft er-work or pre-movie nosh, or a high-quality lunch in under an hour, Table 6 de-livers in price, quality and convenience. Table 6 is located at 3210 Denali Street in Anchorage.

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trAVel

WinterFest

ALASKA THIS MONTH

Many Alaskans have a love-hate relationship with our six month winter season, which is beautiful, dark, breathtaking and dangerous all at once. Th e Denali

National Park Service, in the spirit of loving winter and long-ing for its demise, sponsors Winterfest in partnership with the Denali Borough and the Denali Borough School District. In its twelft h year, Winterfest starts Friday, Feb. 22, and ends Sunday, Feb. 24.

While many Alaskan experiences are geared toward building an attractive tourism industry, Winterfest is really for those who call Alaska home. “It’s kind of an opportunity to thank the local community and people in the area who are here year-round,” says Naaman Horn, the Denali National park interpretive supervisor. “We certainly welcome tourists as well, but it’s more of a local, community event,” Horn ex-plains.

On Saturday, participants can enjoy and on-site ice carver or participate in the snow sculpting competition, with the park providing 3-foot-by-5-foot snow blocks. Th ere are also free dog sled rides intended for children, but “if there’s room, adults can ride as well,” Horn says. Th e festival also features a s’mores station, all day games and activities, and Saturday’s festivities usually end with a chili cook-off and talent compe-tition. All events are free to the public.

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A boy breaks from other activites to enjoy the s’mores sta-tion during Winterfest. A boy breaks from other activites to enjoy the s’mores sta-

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entertAinment

A Taste of Art—Puttin’ on the Ritz

ALASKA THIS MONTH

On Feb. 16 let your entertainment benefi t you and your community; join Fairbanks Counseling and Adoption at their 25th annual “A Taste of Art” fundraiser, which

this year is a spectacular event sporting the 1920’s inspired theme of “Puttin’ on the Ritz: A Gala Event for a Swell Cause,” complete with zuit suits and fl appers. Th e evening will include silent and live auctions, musical entertainment, a sit down din-ner with Hot Licks Homemade Ice Cream, and a photo booth.

Located in the Westmark Hotel Gold Room in Fairbanks, this year’s auctions will off er Alaskan artwork, unique craft s, travel packages, services, merchandise and more. In particular, Tam-my Phillips and Margaret Donat, this years featured artists, will present their works of watercolor and fused glass, respectively.

All proceeds from the event will fund the programs and services of FCA, which include adoption, individual and family counseling, homeless and at-risk youth services, among others. Th ese services are provided “to support the sanctity of all life by strengthening families, promoting healthy parenting and advocating for children. It is our mis-sion to help individuals and families to heal, with a special emphasis on helping children and adolescents,” according to Camille Connelly-Terhune, FCA’s executive director.

Th e doors will open at 6 p.m., dinner starts at 7 p.m. and the auction begins at 8 p.m.

For more information about the event, including ticket prices and availability, please contact Erin Chalstrom at 907-460-3547 or [email protected].

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An example of featured artist Tammy Phillips’s watercolor works.An example of featured artist Tammy Phillips’s watercolor

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AnchorAge6-10 Anchors Aweigh Boat ShowEvents include daily boat safety classes and education seminars. Information and booths cover river rafting, river boats and ocean going vessels. Participants include members of the Alaskan Marine Dealers Association, the Coast Guard, NOAA and others. Shuttle ser-vices available. Dena’ina Civic and Convention Center, various times. anchorsaweighboatshow.com

7-17 The Last of His KindThis is the world premiere of playwright and storyteller Jack Dalton’s fifth play. It is the story of the last indigenous person on Earth, locked in a labo-ratory dedicated to “saving his people”. Directed by Ed Bourgeois. Out North Contemporary Art House, 8 p.m.; Sunday matinee, 3 p.m. outnorth.org

15-17 Sitka Summer Music Festival: Winter ClassicsClassical music concert featuring violinist Philippe Quint, cellist Zuill Bailey, pianist Navah Perlman, and pianist Eduard Zilberkant. Sponsored by Alaska Airlines. Grant Hall, APU, Feb. 15 &16, 7:30 p.m.; Feb. 17, 4:30 p.m. sitkamusicfestival.org

15, 23 Honk!, Jr.Winner of the 2000 Olivier Award for best new musical, Honk!, Jr. is a contemporary retelling of Hans Christian Andersen’s The Ugly Duckling with a charming and whimsical musical score. Presented by the Alaska Theatre of Youth. Alaska Center for the Performing Arts, Feb. 15, 7 p.m.; Feb. 23, 2 p.m. and 7 p.m. myalaskacenter.com

16 The Alaska Marine GalaThis year’s event is an opportunity for the scientific, corporate and education communities to come together and celebrate Alaska’s seas and features guest speaker William Hurley, senior vice president and chief zoological officer of the Georgia Aquarium. Events include VIP reception, cocktails, and silent and live auctions. Dena’ina Civic and Convention Center, 5:30 p.m. alaskasealife.org

2/22-3-3 Anchorage Fur RondyMore than 15 events and 100 other activities are found at Alaska’s largest and oldest winter festival, known locally as Fur Rondy, including the Outhouse races, Running of the Reindeer, Rondy World Championship Sled Dog races and the Yukigassen, a team snowball fight tournament. Various locations and times. furrondy.net

FAirbAnks21-23 Festival of Native ArtsThe theme of this year’s festival, which promotes cultural education, is “Unity Through Cultures.” Events include dance and music performances, workshops, film screenings, and art and food vendors. UAF campus, various locations and times. fna.community.uaf.edu/about-festival

2/26-3/31 BP World Art Ice ChampionshipsThis month-long event involves more than 70 teams from all over the world and attracts more than 100 ice artists. The show features single and multi-block ice sculptures. The center of the park provides ample open space for all the Kids Park activities—highlighted by big slides and an ice skating rink. George Horner Ice Park, 10 a.m. to 10 p.m. daily. www.icealaska.com

girdwood15 Young DublinersCelebrate St. Patrick’s Day early this year with the Young Dubliners. The band considers themselves to be ambassadors of Celtic and American rock, and their dual Irish and American results in a distinctive and richly varied musical palette. Sitzmark Bar & Grill, 10 p.m. alyeskaresort.com

homer8-9 JazzlineDirected and choreographed by Jocelyn Shiro-Westphal, this perfor-

mance features Homer dancers from youth to adult performing dance in a variety of styles. Bunnell Street Arts Center, Friday, 7 p.m.; Saturday, 3 p.m. and 7 p.m. bunnellstreetgallery.org

JuneAu9-10 Wearable Arts Extravaganza: OrganixThe major fundraising event for the Juneau Arts & Humanities Council includes a fashion show and silent auctions both days. The annual Mayor’s Awards for the Arts will be presented at the Sunday Wearable Art show. Items valued at $300 or more will be posted on JAHC’s website for online pre-bidding. Juneau Arts & Humanities Council, Saturday, 7 p.m.; Sunday, 2 p.m. jahc.org

ketchikAn9 WISH: Women of Distinction BanquetThe fifth annual Women In Safe Homes dinner and awards ceremony honors and celebrates extraordinary women in the community who have improved the lives of women and children throughout Ketchikan and Southeast Alaska. Ketchikan High School youth manage the surveying and prepare the meal. This event also includes a silent auction. Ted Ferry Civic Center, 5:30 p.m. wishak.org

tAlkeetnA14-16 Complexities of Love Valentines Variety ShowThis is an open-call talent show catering to a mature audience. Community members present song, poetry, film, game or other stage-worthy performances. Check with local restaurants for dinner or wine specials in collaboration with this year’s show. Sheldon Community Arts Center, 8 p.m. talkeetnachamber.org

VAldez20 The Good LoveliesThis Canadian all-female trio known for sass and on-stage wit, perform folk music and promote their newly released album “Let the Rain Fall.” Valdez Civic Center, 7 p.m. valdezartscouncil.org

wAsillA16 Mat-Su PlungeProceeds raised go to local nonprofits in the form of grants. Many participants make the plunge into icy waters in costumes, but it’s not required. Wasilla Lake Resort, registration 10 a.m., jumping starts at noon. matsuplunge.org

wrAngell7-10 Tent City Days FestivalThis is an annual celebration of the Gold Rush days. Events include a fashion show, dog show, mini-carnival, games, bed races, performances, and cribbage, pool and darts tournaments. Various locations and times. wrangellchamber.org

EVENTS CALENDAR Compiled By Alaska Business Monthly Staff

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Visitor industrY

Fur Fur Fur Fur Fur Fur RondyRondyRondyRondyRondyRondyMore than just fun

and games

BY SUSAN SOMMER

As a young adult, Jen Harrington was always thrilled to pull the Rondy Guide from the Sunday

paper in mid-February. “Finally!” she’d say, “something fun to do!” Th at late-winter sentiment is echoed today every year across Alaska. Just when we’ve all had about enough of the cold snaps and icy roads, and the holidays are a distant memory, here comes Fur Rondy to the rescue! Featuring contests and culture, sled dog races and snow sculptures, fur auctions and fi reworks, Rondy has some-thing for everyone. And Harrington, who grew up in Anchorage, is more involved now than ever; last summer, she became the nonprofi t’s executive director.

Fur Rondy is the annual antidote to the winter blues. Named the best winter festival in 2011 in National Geographic Traveler magazine, Rondy gets us out-side to compete in goofy contests like the Running of the Reindeer, the Outhouse Races, Yukigassen and snowshoe soft ball. We bundle up and ride the Gravitron and Zipper on the carnival midway. We carve snow sculptures and throw popcorn at the Melodrama actors on stage. We fi nd treasures to last a lifetime at the Char-lotte Jensen Native Arts Market. We don themed costumes and dance the night away at the Miners and Trappers Char-ity Ball. We boldly wear our fur hats and coats and stroll through downtown shop-ping and eating and enjoying the crowds. And of course, Alaskans love the World Championship Sled Dog Races.

However, Rondy is more than just fun and games. Many events are fundraisers for nonprofi ts that share the proceeds with those in need. Event registration fees go toward good causes in the com-munity like Toys for Tots, the Lions Club, and university clubs that share the monies through a variety of projects.

Fur Rendezvous, dubbed “Rondy,” is now in its 78th year. Begun in 1935 as a three-day party to coincide with the arrival of miners and trappers selling their bounty in town, Rondy has blos-somed into a 10-day festival for kids of all ages. Its headquarters at 4th Avenue and D Street in downtown Anchorage is housed in the historical Wendler Building, moved from its original loca-tion where the Hotel Captain Cook now stands. Passersby today can still see the old Club 25 sign jutting from the sec-ond fl oor corner— the club was a popu-lar cafe and bar in the 1940s and ‘50s and only allowed women at fi rst. It was a much needed oasis in the middle of a male-dominated frontier town.

On the ground fl oor today is Th e Fur Rondy Shop, open year-round, and a new partner, Caff e D’arte. Rondy fans can get their collectors pins, booster buttons, belt buckles, t-shirts, hoodies, memberships and more here, and down-town businesspeople can stop in the cof-fee shop for a quick espresso or stay a while for a work meeting. Wi-Fi, snacks, and excellent coff ee are served. Partner-

ing with an established, Alaska-owned coff ee expert supports ongoing eff orts to make downtown Anchorage a vibrant destination for both locals and visitors.

New LeadershipHarrington has many years of experi-ence with nonprofi t management; she most recently worked with Providence Alaska Medical Center and the Univer-sity of Alaska. Her vision for Rondy is to revitalize the retail space and keep moving the festival on a positive tra-jectory as Alaska’s—and the nation’s—premier winter festival.

“I envision Rondy as a sustainable organization that produces the best winter festival in the world, with strong local partnerships,” Harrington says.

Despite decades of success, Rondy was having fi nancial woes in the mid-2000s; the festival almost went belly up. But a new executive director committed to keeping the tradition alive, along with hard work by many others, brought the organization back from the brink.

Th e Rondy board of directors in-cludes about 20 people from diverse backgrounds. Currently on it are retired Alaskans, business owners, media ma-vens, politicians and more. Some have been on the board a long time; others are brand new.

President-elect Ruth Williams says, “I’m thrilled to be on the board of di-rectors and part of this 78-year Anchor-

The Running of the Reindeer is a popular Rondy event.The Running of the Reindeer is a popular Rondy event.

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age tradition. It’s incredible to see the community work hand in hand for this event.” Built into the Rondy board is a system of mentorship and time to learn the ropes. Th ough she has plenty of expe-rience already with Fur Rondy, Williams will be president-elect for two years be-fore taking on the role of board president.

As a new Fur Rondy leader, Har-rington is all about transparent rela-tionships with festival partners, spon-sors and participants. She wants Rondy to be self-sustaining and give back as much to the community as possible through fundraising and good will.

Finding sponsors and volunteers can be diffi cult, but it’s “important to make sure it’s a good match,” says Har-rington. Rondy’s goal is for everyone to benefi t from partnerships.

Paying it Forward“Paying it forward” to community groups is one of the best things about Fur Rondy, according to Harrington. For example, Armed Services YMCA of Alaska and Toys for Tots are both fund-raising recipients of Rondy’s Running of the Reindeer.

Other events that raise money for local charities include the Miners and Trappers Charity Ball, organized by local area Lions Clubs, who in turn help Alaskans through a variety of programs and donations to nonprofi ts such as the Blood Bank of Alaska, ASP-CA, Covenant House and Alaska Center for the Blind and Visually Impaired. Money raised from registration for the outrageous Outhouse Races, organized by the University of Alaska Anchorage’s Architecture and Engineering Club, go to the club to support their eff orts with Habitat for Humanity; members have done more than 8,000 hours of com-munity service locally and nationally.

“Not many nonprofi ts are able to sup-port other nonprofi ts,” says Harrington. “We try to be very thoughtful in our business endeavors and to look for ways to continue this support. It’s important to Rondy, Alaska and Alaskans.”

Sales of Rondy pins and buttons by community groups like Kiwanis, An-chorage Family and Community Edu-cation, Anchorage Figure Skating Club, Midnight Sons Barbershop Chorus and high school sports teams help fund these groups’ activities and charitable

eff orts. Th e pins have become collec-tors’ items; some of the older ones are worth thousands of dollars.

Getting ReadyAs soon as Rondy ends, plans begin for the next year’s festival. A call for artists is put out for the Rondy collectors’ pin design. Assessments are made and bud-gets are tweaked. With Th e Fur Rondy Shop now a year-round destination, and with the addition of a coff ee shop and café, summertime is no longer the lull it used to be for the small Rondy staff .

When fall rolls around, the list of tasks builds: Pins and the booster but-tons arrive in bulk and sales skyrocket. Local clubs fl ock to the shop to pick up their pin orders, which they sell around town to support their activities and charities. At Th e Fur Rondy Shop the phone rings off the hook with pin orders and membership requests. Vol-unteers come in on Saturdays to help package pin orders. General festival and event sponsors must be found. Ad-vertising for the Offi cial Rondy Guide must be secured and the guide design, printer and distribution method deter-mined. Permits and insurance for vari-ous events need to be set in place. Meet-ings with event organizers happen all week every week, and sometimes fl ow into the evening, since most organizers are volunteering their own time aft er working day jobs. Event contracts are reviewed and signed, and venues, days and times are fi nalized. Last year’s mer-chandise is discounted to make room for the new goods. Radio and TV in-terviews are scheduled to get the word out about all that the festival off ers and how it impacts the community. Sprint mushers are scheduled to visit elemen-tary classrooms to demonstrate dog handling and race etiquette. Th e Rondy Board of Directors meets to hammer out details of Rondy royalty, the parade theme, retail strategy and more. Th e website is updated and a preliminary schedule of events published.

And still, there is more to do before the festival begins. An exclusive Rondy Brew beer is made and a fi rst tap event is scheduled. Brainstorming sessions creep past their allotted time. New part-nerships are formed and more ideas fl y around; some never land, others get written in stone. Signs and banners are

ordered. Photographers are hired. Plans for a new website are postponed un-til aft er the whirlwind of festival days. Applications for street vendors are pro-cessed. Bills get paid. Files get fi led.

Staff , board members, contractors and volunteers focus on a million little details to make each Rondy event the best it can be for their fellow Alaskans.

Closer to festival time, Rondy staff and organizers are pretty much camped out on scene making sure things run smoothly. Parking lots downtown are cleared for Golden Wheel Amusements to set up the carnival rides. Coordina-tion with municipal agencies ensues to have snow brought in to downtown streets for the World Championship Sled Dog Races the fi rst weekend. Staff is on hand for the Jim Beam Jam, Ron-dy’s kick-off party, for fun and to fi x any glitches that might occur. Up early the next morning to get the Frostbite Foot-race and Costume Fun Run off to a good start, staff , board and volunteers follow that with keeping an eye on—or a foot in—the Grand Parade. But wait! Th ere’s more! Th e GCI Snow Sculpture Com-petition, the Multi-tribal Gathering, the Outhouse Races, the AT&T Fire-works Extravaganza—and those are just four events of many from the fi rst Saturday—all have hours and hours of planning and execution behind them so that Rondy-goers can get out and enjoy themselves aft er a long, dark winter.

Rondy’s Impact on the Community

An economic impact study is being conducted this year on Fur Rondy, and although those numbers won’t be avail-able for some time yet, the general con-

Rondy is a showcase for Alaskans’ artwork.

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■ 110 www.akbizmag.com•Alaska Business Monthly•February2013

MarketMarketMarket SquaresSquaresSquaresFor Information About Advertising in Market Squares Call (907) 276-4373 or Toll Free (800) 770-4373

sensus among festival organizers is that it costs about a million dollars to hold Rondy, but it brings many times that back into Anchorage’s economy.

Besides what people spend on event registration and tickets, they make the rounds of Rondy events for hours and sometimes days, buying food, accom-modations, gift s and treats for them-selves and family members. Some come from out of state, and a few even come from other countries. Th e bulk of par-ticipants are Alaskans, but even many Alaskans arrive from outside Anchor-age and support the local economy.

Downtown businesses can attest that their stores, restaurants and bars are packed during Rondy. Th e infl ux of Rondy-goers spreads through the city, increasing income for other municipal areas as well.

Th e second weekend of Rondy also co-incides with the ceremonial start of the

Iditarod Trail Sled Dog Race in down-town Anchorage, bringing in thousands more people ready to have a little fun, do some shopping and eat out. Although the dog races during Rondy are sprint races and the Iditarod is a long-distance race, Rondy hopes to be able to partner more with the Iditarod Trail Committee for pre-race events such as musher and dog appearances, and bring even more fans of both events together.

Th ere’s another aspect of Rondy that’s hard to quantify—the sheer exuberance Alaskans feel at having something fun and active to do as a community and the satisfaction of continuing such a long tradition. And it is, aft er all, cheaper—and way more fun—than therapy. R

Rondy is infused with live music.

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Susan Sommer is a freelance writer and editor living in Eagle River.

We help good organizations, look great!

Design 907-562-4248800-478-4248 in AK

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ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

The recent housing boom and bust has led to increased interest in housing prices

for some Alaskans. Changes in prices for equivalent single family homes are provided by the Federal Housing Finance Agency using the Housing Price Index.. Th e HPI tracks changes in transactions of conventional loans on single fam-ily houses under $625,500 by re-cording sales of the same and sim-ilar property. Th e data consists of the loans purchased or securitized by Fannie Mae and Freddie Mac.

Th is representative data can be used to see past trends (up to the previous quarter) in the United States housing market. Th e HPI aids in appraising housing mar-kets, as well as helping people de-termine when a good time to buy or sell housing could be. Th e graph shows a correlation between changes in U.S. and Alaska housing prices using the HPI. Th e Alaska HPI shows a more favorable housing climate with a lag in price ballooning compared to the U.S. as whole and smaller

declines aft er the bubble burst. Th e HPI of the fi rst three quarters of 2012 has an average of -0.48 percent, and while this is below infl ation, it does not represent a steep decline, according to the U.S. Federal Housing Finance Adminis-tration and the U.S. Census Bureau. R

Source: U.S. Federal Housing Finance Administration, www.fhfa.gov; U.S. Census Bureau, www.census.gov

Change in Housing Price Index1992-2012

15%

10%

5%

0%

-5%

-10%

Alaska

United States

1992

2012

2010

2007

2004

2001

1998

1995

Alaska Housing More Stable than Lower 48

Alaska Trends, an outline of significant statewide

statistics, is provided by the University of Alaska Center for Economic Development.

ALASKA TRENDS By Paul Davidson

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GENERALPersonal Income – Alaska US $ 2nd Q12 34,271 33,971 32,862 4.29%Personal Income – United States US $ 2nd Q12 13,370,344 13,236,324 12,975,924 3.04%Consumer Prices – Anchorage 1982-1984 = 100 1st H12 205.22 202.58 200.28 2.47%Consumer Prices – United States 1982-1984 = 100 1st H12 228.85 226.28 223.60 2.35%Bankruptcies Alaska Total Number Filed October 69 58 98 -29.59% Anchorage Total Number Filed October 53 45 74 -28.38% Fairbanks Total Number Filed October 9 9 16 -43.75%

EMPLOYMENTAlaska Thousands October 339.99 342.67 341.49 -0.44%Anchorage & Mat-Su Thousands October 186.70 183.99 189.16 -1.30%Fairbanks Thousands October 45.30 44.86 44.92 0.85%Southeast Thousands October 37.01 39.71 39.66 -6.68%Gulf Coast Thousands October 36.47 38.00 37.46 -2.64%Sectorial Distribution – AlaskaTotal Nonfarm Thousands October 325.8 342.9 327.1 -0.40% Goods Producing Thousands October 41.2 46.5 43.8 -5.94% Services Providing Thousands October 284.6 296.4 283.3 0.46% Mining and Logging Thousands October 16.8 17.3 16.8 0.00% Mining Thousands October 16.7 17.0 16.3 2.45% Oil & Gas Thousands October 13.4 13.5 13.6 -1.47% Construction Thousands October 15.3 15.3 17.5 -12.57% Manufacturing Thousands October 9.1 13.9 9.5 -4.21% Seafood Processing Thousands October 6.8 11.8 4.8 41.67% Trade/Transportation/Utilities Thousands October 62.8 66.5 63.3 -0.79% Wholesale Trade Thousands October 6.6 3.9 6.1 8.20% Retail Trade Thousands October 35.1 35.9 35.8 -1.96% Food & Beverage Stores Thousands October 6.3 6.3 6.2 1.61% General Merchandise Stores Thousands October 9.9 9.9 10.6 -6.60% Trans/Warehouse/Utilities Thousands October 21.1 23.7 21.4 -1.40% Air Transportation Thousands October 5.8 6.2 5.7 1.75% Information Thousands October 6.3 6.4 6.5 -3.08% Telecommunications Thousands October 4.0 4.0 4.4 -9.09% Financial Activities Thousands October 14.7 15.2 15.1 -2.65% Professional & Business Services Thousands October 27.5 28.9 26.9 2.23% Educational & Health Services Thousands October 46.6 46.0 43.9 6.15% Health Care Thousands October 32.6 32.3 31.9 2.19% Leisure & Hospitality Thousands October 29.1 36.2 30.7 -5.21% Accommodation Thousands October 6.3 8.9 5.3 18.87% Food Services & Drinking Places Thousands October 18.6 21.6 20.2 -7.92% Other Services Thousands October 11.4 11.0 11.3 0.88% Government Thousands October 86.2 86.2 85.6 0.70% Federal Government Thousands October 15.8 16.4 16.2 -2.47% State Government Thousands October 26.7 26.7 26.6 0.38% State Education Thousands October 8.6 8.4 8.6 0.00% Local Government Thousands October 43.7 43.1 42.8 2.10% Local Education Thousands October 26.0 25.2 25.1 3.59% Tribal Government Thousands October 4.1 4.3 3.9 5.13%Labor Force Alaska Thousands October 361.59 365.86 366.67 -1.38% Anchorage & Mat-Su Thousands October 196.71 194.96 201.37 -2.31% Fairbanks Thousands October 47.68 47.40 47.79 -0.24% Southeast Thousands October 39.27 42.03 39.54 -0.68% Gulf Coast Thousands October 39.21 40.84 38.88 0.85%Unemployment Rate Alaska Percent October 6 6.3 6.9 -13.04% Anchorage & Mat-Su Percent October 5.1 5.6 6.1 -16.39% Fairbanks Percent October 5 5.4 6 -16.67%

Year Over Year

Change

YearAgo

Period

Previous ReportPeriod

(revised)Latest Report

PeriodPeriodUnitsIndicator

ALASKA TRENDS By Paul Davidson

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Southeast Percent October 5.8 5.5 6.8 -14.71% Gulf Coast Percent October 7 7 8.1 -13.58%United States Percent October 7.5 7.6 8.5 -11.76%

PETROLEUM/MININGCrude Oil Production – Alaska Millions of Barrels October 16.95 15.06 17.54 -3.38%Natural Gas Field Production – Alaska Billions of Cubic Ft. October 9.12 8.49 9.17 -0.50%ANS West Cost Average Spot Price $ per Barrel October 107.30 110.84 110.85 -3.20%Hughes Rig Count Alaska Active Rigs October 9 7 9 0.00% United States Active Rigs October 1834 1859 2017 -9.07%Gold Prices $ Per Troy Oz. October 1,746.68 1,743.19 1,666.55 4.81%Silver Prices $ Per Troy Oz. October 33.18 34.6 31.97 3.77%Zinc Prices Per Pound October 0.96 0.96 0.93 2.85%

REAL ESTATEAnchorage Building Permit Valuations Total Millions of $ October 24.96 28.16 17.41 43.36% Residential Millions of $ October 9.69 19.34 7.36 31.61% Commercial Millions of $ October 15.27 8.82 10.05 51.97%Deeds of Trust Recorded Anchorage–Recording District Total Deeds October No Data No Data 1059 N/A Fairbanks–Recording District Total Deeds October 386 398 No Data N/A

VISITOR INDUSTRYTotal Air Passenger Traffic – Anchorage Thousands October 346.63 409.40 363.12 -4.54%Total Air Passenger Traffic – Fairbanks Thousands October 71.46 85.34 66.04 8.21%

ALASKA PERMANENT FUNDEquity Millions of $ October 42,369.00 42,272.70 39,002.20 8.63%Assets Millions of $ October 42,994.90 42,978.00 39,513.90 8.81%Net Income Millions of $ October 127.5 312.9 87.3 46.05%Net Income – Year to Date Millions of $ October 34.8 762.0 1,962.4 -98.23%Marketable Debt Securities Millions of $ October 33.7 34.5 122.4 -72.47%Real Estate Investments Millions of $ October 35.90 0.20 71.5 -49.79%Preferred and Common Stock Millions of $ October (135.3) 585.5 1,677.3 -108.07%

BANKING (excludes interstate branches)Total Bank Assets – Alaska Millions of $ 3rd Q12 2,191.15 2,100.47 2,105.62 4.06% Cash & Balances Due Millions of $ 3rd Q12 61.20 56.74 49.64 23.30% Securities Millions of $ 3rd Q12 169.47 163.91 156.23 8.48% Net Loans and Leases Millions of $ 3rd Q12 1,137.65 1,129.26 1,097.05 3.70% Other Real Estate Owned Millions of $ 3rd Q12 8.01 8.21 7.05 13.69%Total Liabilities Millions of $ 3rd Q12 1,917.02 1,832.07 1,847.06 3.79% Total Bank Deposits – Alaska Millions of $ 3rd Q12 1,863.43 1,787.23 1,800.05 3.52% Noninterest-bearing deposits Millions of $ 3rd Q12 599.95 527.08 543.72 10.34% Interest- bearing deposits Millions of $ 3rd Q12 1,263.48 1,260.16 1,256.33 0.57%

FOREIGN TRADEValue of the Dollar In Japanese Yen Yen October 78.92 78.20 76.62 3.00% In Canadian Dollars Canadian $ October 0.99 0.98 1.02 -3.52% In British Pounds Pounds October 0.62 0.62 0.63 -2.04% In European Monetary Unit Euro October 0.77 0.78 0.73 5.61% In Chinese Yuan Yuan October 6.31 6.33 6.38 -1.14%

Year Over Year

Change

YearAgo

Period

Previous ReportPeriod

(revised)Latest Report

PeriodPeriodUnitsIndicator

ALASKA TRENDS By Paul Davidson

www.akbizmag.com•Alaska Business Monthly•February2013 113 ■

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Alaska Air Cargo.............................................62

Alaska Air Transit........................................105

Alaska Enterprise Solutions....................29

Alaska Media Directory..........................110

Alaska Miners Assoc...................................84

Alaska Public

Telecommunications Inc.....................45

Alaska Seafood Marketing Institute

(ASMI).............................................................41

Alaska Tobacco Control Alliance............3

Alaska Traffic Co.............................................67

Alaska USA Federal Credit Union.......69

Alyeska Resort.................................................32

American Marine / PENCO....................111

Anchorage Opera....................................... 106

Arctic Foundations Inc...............................94

Arctic Office Products ( Machines)....78

Beacon Occupational

Health & Safety Services....................47

Bering Shai Rock & Gravel ......................58

Boart Longyear................................................81

Bowhead Transport Co...............................61

Bristol Bay Native Corp. ...........................83

Calista Corp.......................................................79

Carlile Transportation Systems...........115

Chris Arend Photography.......................114

Clarion Suites Downtown/

Quality Suites

Near Convention Center................ 106

Construction Machinery

Industrial LLC................................................2

Crowley..................................................................15

Cruz Construction Inc.................................51

Design Alaska...................................................68

Dowland-Bach Corp....................................49

EDC Inc.................................................................96

Engineered Fire & Safety.........................48

ERA ALASKA....................................................25

Fairweather LLC..............................................17

First National Bank Alaska..........................5

GCI ...........................................................................11

Global Services Inc........................................ 77

Golder Associates Inc.................................98

Great Originals...............................................48

Hawk Consultants LLC...............................58

HG Heavy Industries................................... 77

Historic Anchorage Hotel......................105

Hotel Captain Cook......................................22

IMPLUS Footware LLC...............................27

JENNMAR............................................................75

Judy Patrick Photography........................64

Lifemed Alaska................................................84

Lounsbury and Assoc..................................91

Lynden Inc. ..........................................................19

Michael Baker Jr. Inc....................................89

Mikunda Cottrell & Co. .............................85

N C Machinery.................................................97

NALCO Energy Services...........................78

Northern Air Cargo.............................70, 71

Offshore Systems Inc.................................. 57

Oxford Assaying & Refining Inc........107

PacArctic Logistics........................................64

Pacific Alaska Freightways.......................33

Pacific Pile & Marine.......................8, 9, 10

Pacific Rim Media/ Smart Phone

Creative......................................................110

Paramount Supply......................................110

Parker, Smith & Feek.....................................13

PDC Inc. Engineers.......................................93

Pebble Partnership.......................................23

Pen Air ..................................................................63

Personnel Plus..............................................104

PND Engineers Inc........................................91

Procomm Alaska............................................44

R&M Consultants...........................................95

Rotary District 5010................................104

RSA Engineering Inc.....................................96

Seekins Ford Lincoln Fleet.......................89

Span Alaska Consolidators.......................55

Spenard Builders Supply...........................86

Stellar Designs Inc......................................110

Ted Stevens International Airport.......16

Tikchik Lodge...................................................40

UAF College of Engineering

& Mining.........................................................31

UMIAQ..................................................................59

Unisea....................................................................38

UAA University of Alaska Statewide.39

Usibelli Coal Mine Inc..................................78

Washington Crane & Hoist......................21

Waste Management .....................................53

Wells Fargo ......................................................116

A d V e r t i s e r s i n d e x

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