may - 2013 - alaska business monthly

SMALLBUSINESSSPECIALSECTION�BIRCHWOODINDUSTRIALPARK�MANAGINGRISK

May2013 $3.95

Oil & GasSpecial Section Page70

Busy with Qugruk Prospect Page94

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Celebrating 25 Years in Alaska

4 Alaska Business Monthly | May 2013� www.akbizmag.com

From the Editor . . . . . . . . . . . . . . . . . . . . . . . . . 7Inside Alaska Business . . . . . . . . . . . . . . . . . 8Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31Right Moves . . . . . . . . . . . . . . . . . . . . . . . . . . .52Alaska This Month . . . . . . . . . . . . . . . . . . 122Events Calendar . . . . . . . . . . . . . . . . . . . . . 125Market Squares . . . . . . . . . . . . . . . . . . . . . 126Alaska Trends. . . . . . . . . . . . . . . . . . . . . . . . 127Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

ABOUT THE COVERRobert Dorn works on the rig fl oor of Nabors 7ES rig, operating the pipe tongs while making a drill pipe con-nection at the Repsol E&P USA Qugruk No. 3 prospect in the Colville River Delta area on the North Slope. The Repsol photo essay begins on page 94 and it is part of the annual Oil & Gas Special Section, which begins on page 70.

Cover photo © 2013 Judy Patrick Photography

May 2 0 1 3

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

Articles

dePArtments

VIEW FROM THE TOP

12 | Meini Huser, President and CEO

Alaska Dreams Inc. Compiled by Mari Gallion

FINANCIAL SERVICES28 | Financing Start Ups & Acquisitions

Loan guarantee programs and business plans help

By Tracy Barbour

INSURANCE ESSENTIALS32 | How Safe Is Your Business?

Companies using risk management plans to protect bottom lines

By Vanessa Orr

ENERGY35 | Much Ado about Watana Dam

Hydroelectric project generates a growing workforce

By Zaz Hollander

TELECOM & TECHNOLOGY48 | Devices for Doing Business

Mobilizing offices with app savvy technology

By Mari Gallion

MINING54 | Gold Mines Lead in Price and Production

Mining projects throughout the state boost economy

By Julie Stricker

CONSTRUCTION 59 | Eklutna, Granite Move Epic Volumes of Gravel

Making way for Birchwood Industrial Park

By Wesley Loy

ENERGY38 | Blue Lake Dam Expansion Project

Sitka hopes to keep up with electrical demand

By Will Swagel

TRANSPORTATION40 | Alaska Marine Highway System Celebrates 50 Years

Vital transportation link also serves as visitor attraction

By Dimitra Lavrakas

HEALTH & MEDICINE44 | Innovations in Healthcare Delivery

Improving public health with advertisingBy Vanessa Orr

Blue Lake Dam spillway.

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Articles

corrections

CONSTRUCTION64 | Alaska Construction Academies: Building a Workforce

Empowering employers and students alike

By Mari Gallion

66 | Natural Gas Pipeline Construction Planning

Several variables keep an important project on hold

By Rindi White

In the April article Clean Energy Construction and Design, Igiugig was incorrectly spelled Igiagik. Igiugig is a village at the mouth of the Kvichak River, on Lake Iliamna in the Lake and Peninsula Borough. Igiagik is an alternate spelling of Egegik, another village in the Lake and Peninsula Borough.In pointing out the misspelling, ORPC also requested we relay to readers that their Maine Tidal Energy project has brought $21 million to the local economy rather than the more than $8 million published on their website at the time the article was written.


May 2 0 1 3

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

special section

Small Business

special section

Oil & Gas

70 | The Future is Already in the Field

Testing wells in the Arctic with new equipment

By Mari Gallion

74 | Royal Dutch Shell’s Bioacoustics Program: A Whale of a Study

Documenting effects on marine animals from offshore operations in Beaufort and Chukchi seas

By Vanessa Orr

78 | Alyeska’s Pipeline Overhaul

A troublesome project to upgrade pump stations lumbers toward finish line

By Wesley Loy

84 | Cook Inlet GasUncertainty in supply and demand

By Mike Bradner

90 | Alaska Oil PolicyUnderstanding investment

By Bradford G. Keithley

93 | Prudhoe Bay Oil Production Passes 12 Billion Barrels

By Frank E. Baker

94 | Repsol busy with Qugruk Prospect

Photo essay by Judy Patrick

98 | Alaska Business Monthly’s 2013 Oil & Gas Directory

14 | Young’s Gear: From Drivetrains to Distinction

Owners Doug Coon and Justin Herrin, SBA Small Business Persons of the Year

By Zaz Hollander

22 | Small Business LessonsGetting the basics down

By Sam Dickey

24 | Small Business Trends in Alaska

Entrepreneurs embrace technology, mobile food, social media

By Rindi White

14 | Young’s Gear: From

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Nabors Rig 7ES drilling at�Qugruk�3�on�an�ice�pad.

Photo © 2013 Judy Patrick Photography

94

www.akbizmag.com� May 2013 | Alaska Business Monthly� 7

Volume 29, Number 5Published 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, ©2013, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specifi c permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from £ omson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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FROMTHEEDITOR

Happy month of May, the time of year when Persephone, spring goddess of Greek mythology, has managed to hike up from the southern climes to bless our land. This is the month when the Alas-

ka landscape (fi nally) heralds the promise of spring with the scent of cot-tonwood buds and the fast transition of the birch trees from bare to light green, exhibiting their full foliage by month’s end. A month of such great change! Sun’s up, school’s out, central heating is turned down or com-pletely off, and the dogs are grilling on the barbecue. Welcome spring!

But as long-term Alaskans will tell you, we are advised not to plant our annuals until Memorial Day—that is, if you don’t have out of town plans like most Alaskans do. Many of us try to sneak those things in the ground the weekend before and cross our fi ngers. After all, the promise of spring does not include the promise that the temperatures won’t dip below freezing—or that it will not snow.

But it does include the promise of our annual Small Business special section—and this year we salute Doug Coon and Justin Herrin, SBA’s Alaska Small Business Persons of the Year and co-owners of Anchor-age-based Young’s Gear. Join us in congratulating these gentlemen for their drive and ambition—and drivetrains!

We also salute the oil and gas industry in our annual Oil & Gas special section—with several articles of interest, including reminding everyone the 12 billionth barrel of oil went down the trans-Alaska oil pipeline a few short months ago. We went to press not knowing the outcome of the fi rst session of the 28th Legislature, but there was change in the air at the Capitol in early April.

This issue, we have articles about the changing face of a gravel pit, new ways to change bad habits, and changes in the devices used to do business. Like we said earlier: A month of such great change! Next month we’re changing our style. Readers might notice in June a change in our editing when we stop using the ever-changing AP Style Manual and start using the more literary Chicago Manual of Style. Let us know what you think.

This month, don’t forget your fuchsias at the greenhouse; and on Me-morial Day, remember those who died in the service of our country—fl y the Flag, display fl owers, decorate the graves of soldiers, and observe the National Moment of Remembrance at 3 p.m. local time that day, wherev-er you are. Don’t know what that is? Join in the collective consciousness of the United States for the minute beginning at 3 p.m., and remember the men and women in service to the U.S. who gave their lives in the pur-suit of freedom and peace. That is what Memorial Day is all about.

Many people want Congress to change the observance of Memorial Day back to May 30, the date of the original 1868 General Order No. 11 pro-claimed by General John Logan, national commander of the Grand Army of the Republic, when the graves of both Confederate and Union soldiers were decorated with fl owers at Arlington National Cemetery. Keeping the three-day weekend, Congress instead promised to make people more aware of the true meaning with a commission and a moment. Spread the word.

Alas, if only those promises of Zeus (god of politics, amongst other things) and Hermes (god of business, as well as the technology that re-lays messages) were as reliable as Persephone’s annual release from the underworld, there would be little to talk about, wouldn’t there? Enjoy the May issue, the team has put together another really great magazine.

—Susan Harrington, Managing Editor

May: May: May: A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!A Month of Great Change!

INSIDEALASKABUSINESS� Compiled by Mari Gallion


Alaska�Communications

Alaska Communications has be-come the fi rst company in Alaska

and second in the U.S. to off er certi-fi ed Carrier Ethernet 2.0 services. Th e Metro Ethernet Forum, a global in-dustry alliance that defi nes Carrier-class Ethernet networks and services, recognized Alaska Communications as a CE 2.0 service provider following its achievement of CE 2.0 certifi cation. Alaska Communications is the third provider in the world to achieve CE 2.0 certifi cation.

Th e certifi cation means the company meets international standards for its business Ethernet services, making Alaska one of the best-connected busi-ness communities in the United States.

CE 2.0 services off er major industries in Alaska like oil and gas, fi nance, re-source development, healthcare, edu-cation and government the dedicated, reliable, secure networks needed to op-erate at peak performance.

CIRI�Alaska�Tourism�Corp.

CIRI Alaska Tourism Corp. has com-mitted to the construction of a new

150-passenger catamaran for Kenai Fjords Tours to add to its 12-vessel fl eet, with delivery anticipated in early 2014. Designed by Teknicraft of New Zealand and constructed by All American Ma-rine in Bellingham, Wash., the new ves-sel will join two sister ships, the Aialik and Orca Voyagers.

Th e ship’s design off ers stability, spacious seating, wrap-around view-ing decks, oversized, fog-free windows

and LCD video monitors. A hydrofoil wing helps lift the catamaran up out of the water, decreasing drag, increasing fuel economy and creating a smaller boat wake.

Th e investment in the KFT fl eet comes just weeks before spring construction resumes on the rebuild of Kenai Fjords Wilderness Lodge on Fox Island. Being built by Seward-based Harmon Con-struction, the lodge will be completed and available for guests beginning June 1. Th e new, 3,300-square-foot building boasts immense windows overlook-ing Resurrection Bay, a spacious din-ing area and lounge and a redesigned kitchen that will allow for a new culi-nary program.

Each stay at the lodge includes a wildlife cruise, which can be upgraded to a National Park Tour or Northwest-ern Fjord Tour.

Alaska�Railroad�Corp.

The Alaska Railroad Corp. has an-nounced the elimination of 54

positions as part of a major corporate restructuring eff ort. Th e restructur-ing results from the fact that ARRC has experienced a $45 million negative swing in fi nances from 2011 until now. Contributing factors include: a signifi -cant drop in revenue from key freight customers (coal and petroleum); mil-lions less in federal funding, along with a jump in required matching funds; and at least $15 million per year to implement a positive train control system as required by an unfunded federal mandate.

Because ARRC curbed hiring as the revenue picture became clear last year, 25 of the 54 eliminated positions are al-

ready vacant, thus lowering the number of actual layoff s to 29. Eliminated posi-tions represent an 8 percent reduction in the year-round and seasonal ARRC workforce which equates to an annual estimated cost savings of $4.5 million in wage, salary and benefi t costs.

In addition to personnel reductions, ARRC is implementing several other cost-cutting measures. Th ese include improving effi ciency through modi-fi ed asset use and service levels, right-sizing fl eets and improving mainte-nance practices for vehicles and heavy equipment, conserving fuel and other expense reductions, and improved pur-chasing procedures and controls. ARRC will also continue to seek opportunities for new and expanded revenue sources.

Alaska�Permanent�Fund�Corp.

The Alaska Permanent Fund reached a new high water mark on Feb. 19,

closing for the fi rst time with an unau-dited value of $45 billion.

“Signifi cant milestones in the Per-manent Fund’s value provide us with the opportunity to stop and refl ect on what has been a very successful pub-lic policy experiment,” says Alaska Permanent Fund Corp. Board Chair Bill Moran. “Th e total value is less im-portant than the fact that the Fund’s investments have turned a non-renew-able natural resource into a renewable fi nancial resource.”

CEO Mike Burns says, “In July 2007, shortly before the beginning of the recent recession, the Fund fi rst closed at $40 bil-lion. Reaching $45 billion is a welcome sign the Fund has not only regained lost

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ground, but is growing again.”Th e Alaska Permanent Fund was

created in 1976 by a vote of the people, and received its fi rst royalty deposit of $734,000 in early 1977. Since then the Fund has received more than $16.5 bil-lion in mineral royalties and general fund appropriations, and has paid out $19.8 billion in dividends.

USDA

Kotzebue Electric Association Inc. will receive $2.9 million from the USDA-

RD’s Rural Utilities Service to fund sys-tem improvements designed to reduce energy use in homes and businesses. Th e RUS loan will help KEA acquire a 1.4 megawatt diesel engine, which will supplement KEA’s increased wind power plant, increase voltage to the wind site, off er more capacity, and will reduce the cost of energy for the cooperative.

Alaska�Family�Sonograms

To upgrade its ultrasound exam ca-pabilities with the most advanced

and durable technology available, Alas-ka Family Sonograms installed three AplioTM 500 ultrasound systems from Toshiba America Medical Systems Inc., the fi rst Aplio 500 systems in Anchor-age. Alaska Family will use the Aplio 500 systems to care for patients from all over the state for general OB/GYN, as well as thyroid, abdominal and vascular exams.

Th e Aplio 500 off ers picture-perfect imaging with advanced visualization capabilities, including Fly Th ru, an industry-fi rst technology using 4D ul-trasound to “fl y through” interiors of ducts and vessels for better exploration of lesions and masses.

Alaska Family Sonograms has been using Toshiba equipment for 25 years.

Fairweather�LLC

Fairweather LLC, an Anchorage-based provider of remote medical,

meteorological and expediting services, has announced the opening of its new-est occupational medical clinic located at 7999 Jewel Lake Road in Anchorage.

Th e new Fairweather Anchorage Medical Clinic is designed to serve oil companies and contractors operating on Alaska’s North Slope. Complementing the services off ered at the multi�pur-pose Fairweather Deadhorse Medical Clinic in Prudhoe Bay, the new Anchor-age Clinic provides operators the con-venience to receive customized occupa-tional health services at either location.

Th e Anchorage and Deadhorse clin-ics are both equipped to perform ran-dom, pre-employment, post-incident and test-for-cause urine drug and breath alcohol collections and provide substance abuse training for both su-pervisors and employees. On-site col-lections are available to companies throughout the Anchorage area. Th e Fairweather Deadhorse Medical Clinic, an air ambulance staging facility, also provides a full spectrum of acute care, emergency services and medical treat-ment to operators on the North Slope.

Port�MacKenzie�Rail�Extension

Work has begun on $88 million in construction projects for three

segments of the Port MacKenzie Rail Extension. Contracts were recently

awarded to three construction compa-nies. Up to 200 jobs in the construction industry could be created this summer.

Bristol Construction will continue its work on Segment 1, the fi rst fi ve miles of the rail embankment. In October 2012, earthmoving was completed to the wetlands boundary.

Granite Construction was awarded the contract for Segment 6 near Hous-ton. Segment 6 is 1.8 miles long. It will create a new “Y” rail connection on the north-eastern end of the project as well as a new siding adjacent to the Alaska Railroad mainline to Fairbanks. Th e “Y” will enable freight service between Port MacKenzie and Fairbanks to the north and Anchorage/Kenai areas to the south.

Quality Asphalt Paving was awarded the contract for Segment 3. Th e segment is 6.5 miles long and will run from Ayr-shire Road to Papoose Twins Road near Susitna Parkway. Clearing of the rail extension right-of-way has begun.

Th e 32-mile rail project will connect the mainline of the Alaska Railroad near Houston to the deep draft dock at Port MacKenzie. Th e Borough has se-cured $116 million in State legislative appropriations, and state voters have approved $30 million for a General Ob-ligation bond for the project in Novem-ber 2012. To complete the entire proj-ect, this year the Borough is requesting $126 million in State appropriations. Th e project is expected to be completed by 2016.

Massage�Envy

Massage Envy—the pioneer and national leader of professional,

convenient and aff ordable massage and spa services—has announced its fi rst

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clinic in Alaska. Residents of Anchor-age can now de-stress and relax with a visit to the newest Massage Envy Spa now open at 1142 N. Muldoon Rd in the Tikahtnu Commons. Th e new clinic of-fers a variety of therapeutic massage treatments and Murad Healthy Skin facials to keep its members and guests on the path to wellness.

Stoel�Rives

The U.S. Supreme Court reversed a ruling from the U.S. Court of Ap-

peals for the Ninth Circuit that would have required Clean Water Act permits for stormwater running off logging roads for Alaska, Hawaii and the West. Th e earlier ruling in Decker v. North-west Environmental Defense Center had threatened to burden landowners and local governments with enormous compliance and permitting costs while opening the door for administrative challenges and litigation following ev-ery permit approval.

Th e longstanding regulatory practice of the EPA has been to treat runoff from logging roads via ditches and culverts as non-point source pollution to be addressed by state best management practices. Th e Ninth Circuit held that such discharges were “associated with industrial activity” and thus required permits under EPA’s industrial storm-water regulations. Millions of acres of forest land in the West, including thou-sands of miles of roads, would have been aff ected by the decision.

Timothy Bishop, Richard Bulger and Chad Clamage of Mayer Brown LLP and Per A. Ramfj ord, Leonard J. Feldman and Jason T. Morgan of Stoel Rives, along with William K. Sargent of Tilla-

mook County, prepared the petition for Supreme Court review. Bishop of Mayer Brown handled briefi ngs and oral argu-ment before the Supreme Court.

Davis�Wright�Tremaine�LLP

The law fi rm of Davis Wright Tre-maine LLP has moved to the 188

Building located in the heart of mid-town Anchorage at 188 West Northern Lights Blvd., Suite 1100.

Davis Wright Tremaine’s clients are businesses from the state’s leading indus-tries, including natural resources, energy, hospitality, transportation, fi nancial ser-vices, and real estate development. Da-vis Wright Tremaine regularly handles complex business transactions and high profi le litigation for companies active in the Alaska market. In particular, they are well known for their representation of many Alaska Native entities includ-ing ANCSA corporations throughout the state. Th e Anchorage offi ce currently has 13 attorneys in residence.

University�of�Alaska

University of Alaska Anchorage Chancellor Tom Case has an-

nounced that the new on-campus are-na, scheduled to open in fall 2014, will be named the Alaska Airlines Center in recognition of a newly forged 10-year agreement with the airline. Th e agree-ment, which begins July 1, includes $1 million to create a new scholarship en-dowment for UAA Seawolf student ath-letes, plus an enhanced athletics spon-sorship contract valued at $5.3 million. A large portion of this agreement will

provide travel sponsorship for athletic teams, the largest single expense for UAA’s athletic program.

Alaska Airlines is a longtime partner of the University of Alaska and has been a generous sponsor and supporter of UAA Athletics for more than 30 years. Th is new agreement ensures a continued partnership between UAA and Alaska Airlines for the next decade, with an op-tion to renew for another fi ve years.

UAA received $15 million from the Alaska Legislature in 2009 to begin planning for the new arena. In 2010, Alaska voters approved a bond mea-sure that provided $60 million for the arena and the Legislature provided the balance to complete the project. Th e 5,600-seat arena is expected to open in August 2014 and will host UAA athletic competitions, high school and college graduations, concerts, youth camps and other community events.

Alaska�Public�Telecommunications�Inc.

Alaska Public Telecommunications Inc., the Anchorage-based pub-

lic broadcasting outlet, is rebranding to become Alaska Public Media. Th e campaign launched on March 18, and the brand transition will be complete in late 2013.

Alaska Public Media is the parent company of KSKA FM91.1, KAKM TV and Alaskapublic.org. Th e company also operates the Alaska Public Radio Network and a shared television service with KTOO-Juneau and KYUK-Bethel. Alaska Public Media and its affi liates deliver content that reaches 96 percent of Alaskans.

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• General Contracting• Marine Infrastructure• Design Build

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ViewfromtheTop Compiled by Mari Gallion

Meini Huser, President and CEOAlaska Dreams Inc.

UNIQUEVISION:Th e main driving force in the design and engineering of our structures is always powered by our custom-er needs and requirements. Our main focus is to provide our customer with the best possible and most cost eff ective building solution. Th is approach has proven us as the leader in the sector of fabric covered structures not just in Alaska but nationwide.

A FAMILY AFFAIR:Th e key players in our company are mostly family members. My wife Anna (vice president and CFO) and I (CEO) are partners and owners of Alaska Dreams Inc. Our son Peter leads the estimating division. He returned to Alaska to work in the company aft er working in the Lower 48 for several years. Our daughter, Trista, the administrative assistant, assists with payroll and handles the event rental structure division, tracking reservations and scheduling the events. Brittany, our youngest daughter, also works as an ad-ministrative assistant. She is the primary point of contact and greets everybody walking into AKD’s offi ce with a great smile, and directs all the incoming phone calls. In addition we have other great people working for us: Homer Eggleston, project manager and safety coordinator/ trainer; Maria Muehlen-kamp, human resources coordinator; Chris Dibb, operations supervisor; and AKD’s fi eld foremen Dewayne Hailey and Taylor Th ompson, plus a great group of fi eld crew members.

FACING THE CHALLENGES: Doing business in Alaska brings its unique challenges, but also unique opportunities that are not available anywhere else. Of course some of the challenges turn into “lessons learned” and force us to quickly adapt for the next similar scenario.

Alaska’s unique challenges, such as logistics to remote lo-cations, the short construction season, adverse weather, high energy cost and limited worker pool, all make running a small business like ours an exciting venture.

AN EVOLVING DREAM: Our company has defi nitely evolved throughout the years. Specializing in the sale and construction of fabric covered structures—tents—as a busi-ness was a risky decision, and according to early critics bound to fail without a chance of success.My wife and I incorporated in 1993 and that two person company has been growing ever since. Today we are main-taining construction contracts with the biggest companies in the world, state and federal government and many private people as well. Since then we constructed more than 3.5 mil-lion square feet of structures in the state of Alaska and inter-national projects as well.

CUSTOMERAPPRECIATION:Our promise to our existing and future customers is that we will continue to provide the best possible customer service no matter how small or big the project. Th is has been our directive since we started almost 30 years ago and it has proven to be the winning business strategy any business could apply.

I thank all our customers personally and all of the Alaska Dreams Inc. employees. Only our customers’ support made it possible for Alaska Dreams Inc. to become what we represent today. Most of our business today is the direct result from repeat customers or word of mouth referrals. We appreciate them for choosing to “buy Alaska.”

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eini�Huser�was�born�and�raised�on�a�small�dairy�farm�in�a�ski�resort�town�in�the�Swiss�Alps.�As�a�child,�Huser�dreamed�about�Alaska,�reading�and�collecting�every�

written�article�or�book�about�Alaska�he�could�get�his�hands�on.�His�earlier�trips�to�the�remote�Alaska�mountains�proved�Alaska�to�be�everything�that�Huser�had�previously�dreamed�of.�In�1984,�Huser—a�mountain�and�skiing�guide�at�the�time�who�worked�as�a�steel�erector�in�the�snow-less�months—moved�to�Alaska�and�founded�Alaska�Dreams�Inc.,�which�specializes�in�selling�or�renting�and�constructing�advanced�fabric�covered�steel�buildings�and�pre-engineered�metal�buildings�for�oil�and�mining�industries;�city,�state�and�federal�government;�and�private�sectors�in�Alaska,�as�well�as�Europe,�Canada,�Russia�and�of�course�the�Lower�48.


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special section Small Business

Doug Coon, left, and Justin�Herrin�are�the�Alaska�SBA�Small�Business�

Persons�of�the�Year.�They�are�co-owners�of�Young’s�Gear�in�Anchorage.�

© Chris Arend Photography


Young’s Gear:Young’s Gear:Young’s Gear:Young’s Gear:Young’s Gear:Young’s Gear:Young’s Gear:Young’s Gear:Young’s Gear:From Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to DistinctionFrom Drivetrains to Distinction

Owners Doug Coon and Justin Herrin, SBA Small Business Persons of the Year

By�Zaz�Hollander

The 2013 Small Business Person of the Year for Alaska is actually two people: Doug Coon and Jus-

tin Herrin, co-owners of Young’s Gear LLC in Anchorage, which specializes in automotive drivetrain parts, sales and service.

Coon and Herrin oversee the thriving business on International Airport Road from side-by-side desks in an aging but tidy offi ce. Asked about their strategy, both answer quickly.

“Just winging it as it goes, on the fl y,” Herrin says.

“Common sense,” adds Coon.Don’t let that easygoing style fool you.

Th ese guys know how to run a business.Th e U.S. Small Business Adminis-

tration cited Coon and Herrin’s com-bination of business savvy, enticing employee perks, customer service and well-organized books.

“Th ey really care about doing the right thing—for their customers, for their employees,” says Tom Flanagan, a former Small Business Development Center adviser who nominated the pair for the award. “And making it better.”

Young’s Gear specializes in automo-tive drivetrains, the parts that connect the transmission to the axles in two- and four-wheel drive vehicles. Coon and Herrin bought the business from a for-mer boss ready to retire—maybe close up shop altogether—in October 2007.

Within months, they added 100 percent employer-paid health insur-ance coverage for workers and set up a simple IRA for their employees. Several years later, they purchased two addi-tional vehicle lift s—for a total of four—and more than doubled their workforce from six employees to 13, 10 of them full time.

It was only this year, aft er fi ve years in business, that the co-owners allowed themselves to take lunch breaks.

“Usually lunch was right here,” Her-rin says, patting the corner of his desk. “We kind of had to force ourselves. I’ll make sure he goes to lunch. He makes sure I go to lunch.”

‘ShiningStar’All those practices impressed Alaska representatives with the U.S. Small Business Administration.

Offi cials weighing the fi nal choice for Small Business Person of the Year evaluate many factors: a history as an established business; growth in em-ployee numbers; sales or unit volume increases; contributions to the commu-nity; and balance sheets.

Given the relative weakness of the economy, many older business owners are opting to close their doors rather than go through the trouble of selling, says Scott Swingle, SBA’s Fairbanks-based senior area manager.

Young’s Gear, which Swingle de-scribed as “a shining star” among other applicants, bucked that trend. Th ey took a business that could have closed in other circumstances, kept it open, and built from there to add employees and boost customer relations.

“Part of being a good part of the com-munity is being consistent and actually being around for a while, being sustain-able, having a good place to work, giv-ing folks a place they know is stable,” he says. “Th e owner sold out. He wanted to retire, basically. Th ey purchased the business. It was a big turning point for the business and the employees.”

Since 1963, the president has desig-nated a National Small Business Week.

Th e Young’s Gear award will be pre-sented at a luncheon on April 25.

Th e 2013 Alaska Small Business Person of the Year will attend the national cel-ebration in Washington, D.C. to compete for the National Small Business Person of the Year award, according to the SBA.

Swingle called Young’s Gear to share the good news in early March.

“I was surprised,” Coon says. “Got a little choked up.”

ABigFanTh is is the second year running that the owners of Young’s Gear received nomi-nation as Small Business Person of the Year. Anyone can nominate a business person; oft en friends or family or co-workers do.

Coon and Herrin, though, were nom-inated last year by Flanagan, the former advisor who now teaches logistics at the University of Alaska Anchorage.

Th e pair met Flanagan several years ago. Th ey approached him for help: what could they improve about the business?

Flanagan said he was immediately impressed with the team’s fi nancial acumen and persistence.

“How we came to meet is insightful to their nature,” he says. “Th ey always want to fi nd a way to be doing it better.”

Coon and Herrin told him they made use of an SBA loan and fi gured they’d see what kind of help they could get from

� For more information about Young’s Gear, go to youngsgear.net

� For more information about the U.S. Small Business Administration, go to sba.gov


the Small Business Development Center. He got a tour of the business. He looked for organization, neatness—did they know where everything was? Did they have accurate financial records? A good support team of lawyers, accountants, financial experts? How about their rela-tionship with the previous owner?

“It looked like it was working,” Flana-gan says. “It had a good feel to it. They said, ‘We’re just trying to see what you think we can do better.’”

A pallet of parts caught the advisor’s eye. It seemed like somebody overdid the order. Coon and Herrin had an answer: the supplier was about to stop making that model, popular with cus-tomers. Young’s Gear didn’t buy them in bulk just to get a better price, Flanagan says. “They were smart enough to know these parts were going to be in demand.”

Both owners knew they wanted to spend a little less time at work after put-ting in long hours building the business. Most business owners grapple with that balance; few make it a priority.

“When we applied this year, they highlighted the fact they were taking lunch breaks. They had their vacations scheduled,” Flanagan says.

BusyisGoodThe co-owners had to keep quiet about the award. They couldn’t tell their em-ployees until the official announcement at the April 25 banquet. They both looked a little pained about that during a March interview.

“We’ll plan to have some kind of in-house celebration, maybe have some-thing catered in, a thank-you party cel-ebration,” Coon says.

The place was buzzing. Three employ-ees helped customers at the counter. Boxes of parts filled shelves behind them. More inventory sat row by row on shelves in the open, two-floor shop dominated by four-wheel drive vehicles up on several lifts.

ThePhonesRingConstantlyYoung’s Gear does about half of its busi-ness with retail customers who buy parts

and service over the counter or get drive-train repairs done in-house. Wholesale sales account for the other half.

The company specializes in drive-trains only, not engine repair or body work. A heavy steel axle sheared in two sits on one shelf, one end twisted and sharp. How the heck does that happen? A commercial truck driver in Kodiak locked the differential for traction and forgot to release it before hitting the pavement. That’s not exactly typical, but it’s not unique either.

Coon and Herrin talk easily about the kind of repairs that Young’s Gear has made its niche: Rear differen-tial upgrades and traction upgrades. A lot of military coming home from deployments are getting big tires for their Jeeps—that means they need to get the gear ratios in the front and back changed.

A lack of maintenance coupled with driver “error-slash-abuse” accounts for most of the repairs they see, Coon and Herrin say.

Justin Herrin, left, and Dave�Frank�work�on�a�drivetrain�at�Young’s�Gear�in�Anchorage.



Coon gives an example: “When some-body mashes the throttle on a half-ton Chevy at a stoplight taking a right turn, lighting the right rear tire up, and the other side catches, the next thing you know you’ve got parts fl ying out the rear cover and shock load,” Coon says. “Th en you see a slide-back wrecker in the parking lot. Th e fi rst thing you ask the truck driver is, ‘Will the truck move under its own power?’”

“A lot of times it won’t,” Herrin says.

HowitallStartedYoung’s Gear began in Fairbanks in the late 1970s. Owner Ron Young later expanded to Anchorage in 1997, set-ting up shop in the current location on International Airport Road. Th e aging building, built in 1965, is well-worn but clean with a few brightly colored new additions: those newer red and yellow vehicle lift s in the bay.

Coon and Herrin bought the busi-ness from Young in 2007. Both knew the place inside and out.

Herrin, 38, started at the store when it opened in Anchorage in 1997. He worked as manager for two years, then left for a few years in 2005. A bio on the company website says Herrin’s “ability to recall part numbers from memory is extraordinary, making him a true tal-ent at the parts counter.” A nameplate on his desk reads “Boss of You.”

Coon, 48, came to the Anchorage busi-ness in 1999 aft er working in the Fair-banks location for more than a decade and served as manager for three years before moving on in 2003. His talent is “his abil-ity to communicate with customers by an-swering complex drivetrain questions as well as explaining how things work.”

Both returned to the company to make an off er to Young when he made it clear he was ready to get out of the Anchorage end of the business. Th ey adopted the business model already in place but made some crucial changes.

Coon says they crunched the num-bers but also started tracking appoint-ments with a computerized calendar and realized some customers were waiting up to two weeks for service.

“Looking at some of the numbers, we saw shop labor seemed to be doing well,” Herrin says. “With help from em-ployee suggestions, we decided to add a third lift and later a fourth to work on

Jubal Burkhart, left, points out�something�about�a�part�to�Justin�Herrin�at�Young’s�Gear�in�Anchorage.



Justin Herrin looks through a�drivetrain�part.



vehicles. Th at equated to two more peo-ple out in shop working. We just kind of refocused on where the money was.”

“We looked at monthly numbers aft er adding the third lift and another body. It’s like, ‘Hey, this is working! Let’s put a fourth in.’ Which is the reason revenues expanded and the employee count has gone up.”

Some challenges remain. Current em-ployees include a core group that stayed on aft er the business changed hands. But when new help is needed, Coon and Her-rin say, fi nding counter employees is tricky because Young’s Gear is more specialized than many auto industry businesses.

Herrin sighs when the subject of health insurance comes up. Young’s Gear covers their employees at 100 per-cent. Health insurance goes up every year at 14 to nearly 20 percent.

But perks like insurance—and that IRA—are important to keep employees happy, Coon says.

“We try to keep turnover low because that’s very unproductive,” Herrin says.

BookSmartTh e company accountant, Matt Makos with Coghill Group PC in Kenai, says Young’s Gear is a rare client.

“Th ey really make our job very easy,” Makos says. “Th ey’re very detail ori-ented and pay attention to what’s going into their system.”

Coon and Herrin are “very good at checking their data entry into the bookkeeping system, doing their bank reconciliations on their various ac-counts,” he says. “Th ey’re very meticu-lous on the detail that’s being posted to the general ledger.”

Th e owners pay attention to the num-bers every month but also compare them to the previous year’s fi gures.

“Th ey keep a very close eye on it. Th ey really do care about it. It’s not just making the money or picking up customers. Th ey’re paying attention to their fi nances as well as being owners and running the business.”

Flanagan, too, credited the duo’s “knowledge of not only the fi nancials but what it meant. Th ey have their ac-countants and advisers, but they know when it comes time to get capital, I have to tell a story and fi nance in these ways!”

He sounds almost as proud of Coon and Herrin’s award as they do. He re-

BringingAlaskansAlaskansAlaskansBringingAlaskansBringingAlaskansTogetherAlaskansTogetherAlaskansTogetherAlaskansAlaskansTogetherAlaskansTogetherAlaskansTogether

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so you can deliver on time.so you can deliver on time.

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ABOVE: Doug Coon, left, and�John�Enriquez�help�a�customer�at�the�counter.TOP: Doug Coon, left, and�Chris�Mikkelsen�working�in�the�shop�at�Young’s�Gear�in�Anchorage.


ceived a message from Swingle when the SBA chose the Young’s Gear own-ers. Almost immediately, Coon sent an email: “Got the great news from Scott this morning and we wanted to thank you ... It’s awesome!”

“Th e changes they made were very creative,” Flanagan says. “Th ey weren’t extraordinary but they were using the space they had and those types of things. It increased productivity a lot.”

Coon and Herrin are actively looking to purchase a building of their own—to buy instead of rent—in another marker of their relatively rapid success turning around the business. Th e co-owners say they don’t have any other big changes for Young’s Gear in their plans for the future.

Th ey just want to build on what they’ve got.

“Streamline, and be as effi cient as we can be,” Herrin says.

Zaz Hollander is a journalist living in Palmer.

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Small Business LessonsSmall Business LessonsSmall Business LessonsGetting the basics down

By�Sam�Dickey

The stock market is once again poking around in record high territories, credit seems a bit

freer, and new businesses seem to be popping up everywhere. Is the drought over? Is it back to business as usual or is this the new normal?

My grandmother used to say “Take care of your water, because sometimes it don’t rain.” I never quite understood what she was talking about—until now.

Th e last several years have taught many of us some diffi cult lessons. Zero interest credit cards, the lowest mort-gage rates in history, the free fl owing of capital for our businesses, and cus-tomers buying regularly were all parts of our lives prior to 2009. Suddenly our customers were not buying as much, credit lines that had been open some-times for years were cut drastically (if not closed), loans became more diffi cult to obtain, and suppliers were tightening their payment terms. In short, it had stopped raining.

LessonsIf you weathered our last drought, congratulations are in order. If you are still working to survive, or are just be-ginning your entrepreneurial journey, there are some important lessons the last few years have reinforced. Among the most important of those lessons is “don’t panic.” When a recession or other downturn hits, small busi-ness owners or managers have many reactions, and some are damaging. Oft en an initial reaction is to cut ev-erything—personnel, inventory, bud-gets and prices—all suff er. If you cut everything 10 to 40 percent, you are not just saving money, you are cutting money that supports mission critical areas, the very things that will help you not just survive but thrive.

If you cut your inventory to the bone, your customers and suppliers may see that and wonder if you are stable, if you are going to be around. Th ey will react as they see appropriate and your slow spiral down may pick up speed. Ideas of failure become a self-fulfi lling prophecy.

Advertising budgets are oft en among the fi rst things to go. Does it make sense that when you need more cus-tomers, so you cut the very area that brings in more customers? Make your cuts judiciously and explore other low cost ways to increase your visibility. So-cial Media may be an excellent option for you. Presence at community events is another great way to make yourself known at little to no cost.

Before making cuts be sure you un-derstand exactly what you are cutting and why. Programs such as “Profi t Mas-tery” off ered through Small Business Development Centers located through-out the state and across the country can help you understand both the what and the why.

PlanningBut what if you are just starting? Th e advice I give all nascent entrepreneurs is to “write the plan.” Business plan-ning is an important tool. By the time you have fi nished your plan, you will have thought through many of the is-sues you are likely to encounter. Why are you in business? Who are your cus-tomers? How will you reach them? How will you deal with fi nancial issues? By writing your plans down you will so-lidify your thoughts and likely become more committed to making things happen. When digging a well, you will want to know how deep you are willing to go to fi nd water before moving on. If you are ready to start your planning or

just want to make sure you have a good handle on it, you might want to con-tact the Women’s Economic Empower-ment program, a part of the YWCA in Anchorage, for guidance on common startup issues and business planning. Yes gentlemen, they would like to talk to you too.

But what if your questions are more industry specifi c? Fortunately there is help there too. SCORE is a nationwide cadre of more than 14,000 volunteer business counselors who have managed and/or owned their own businesses. In this group you can oft en fi nd a counsel-or with experience directly in your in-dustry—perhaps they have even expe-rienced an identical issue. Th ese folks have experienced fl oods and droughts of their own and may be able to help you get through yours.

It is said, “A rising tide fl oats all boats,” even the ones with small leaks. It is up to you to determine where those leaks are and get them patched. If you want your boat to be watertight you need to make several things a matter of your regular course.

TheBasicsGet the basics down cold. Proper plan-ning and accurate fi nancial report-ing are a must. Cut costs, but be sure you are cutting the right ones. Man-age your cash fl ow carefully. Spend on marketing—yes, sometimes you have to spend money to make money—but again, be judicious. You already have an important asset: your customers. Be sure to hold on to them and listen to their concerns. Diversify not just your products but your customer base. Delivery of your products and services must be on time and your customer service excellent.

Th ere are many more things that you


make rain. I would encourage you to go make some rain of your own.

I didn’t grow up on a farm and only now do I understand my grandmoth-

er’s wisdom. I will be taking care of my water a little better from here on out. I hope you will too.

could add to the above list and may want to consider—if not for the short term, then certainly for the long haul. Sim-plify your processes: this may include outsourcing non-essential functions or reducing product complexity. Invest in training: cross-train your staff and in-vest in skills that increase revenue such as telephone selling techniques or sales training for your staff . Be innovative: improve existing products sold to exist-ing markets.

WinningProofYoung’s Gear in Anchorage provides proof that good planning, careful ex-ecution and strong grasp of the basics can lead to growth even in diffi cult times. By off ering their customers best in class services at a fair and reason-able price they have dramatically in-creased sales, profi t and equity growth without requiring abnormal increas-es in assets required to support the growth. Health care, retirement ben-efi ts and a strong team are just a few of the things that help them attract top quality technicians in an otherwise tight skills market.

Young’s Gear employees are fully integrated into their business, and to-gether as a team they have worked to make Young’s successful time and time again with their intense “work smart” focus. Th e team suggested carts that made daily production more effi cient. Th e team installed equipment to im-prove productivity and safety at the same time. Th e team installed equip-ment that allowed heavy items to be moved by one person rather than three. Not once but twice they have reconfi g-ured to go from two production areas to three then four without increasing fl oor space required.

Young’s is also engaged in their com-munity, providing not only fi nancial support but habitually assisting profes-sional, service and recreational activi-ties as well. I would like to extend my congratulations to the Young’s Gear team on their selection as the Small Business Administration’s Alaska Small Business persons of the year.

Plan, obtain guidance, evaluate your course of action, re-plan, execute the plan and repeat. Th ese seemingly sim-ple instructions are part of the core of operations at Young’s gear: It’s how you

Sam J. Dickey is the deputy district director of the U.S. Small Business Administration Alaska District Offi ce. He has held this position since March 2006, and is responsible for the delivery of all SBA programs and services. He has been employed by the U.S. Small Business Administration since 1988. A resident of Alaska since 1966, Dickey lives with his wife of 25 years and has three children, all residing in Anchorage.

Sam J. Dickey is the deputy district director of the U.S. Small Business Administration Alaska District Offi ce. He has held this position since March 2006, and is responsible for the delivery of all SBA programs and services. He has been employed by the U.S. Small Business Administration since 1988. A resident of Alaska since 1966, Dickey lives with his wife of 25 years and has three children, all residing in Anchorage.

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Small Business Trends in AlaskaSmall Business Trends in AlaskaSmall Business Trends in AlaskaEntrepreneurs embrace technology, mobile food, social media

By�Rindi�White

What’s hot among Alaska’s small businesses? In short, technolo-gy. It’s one of the most bustling

centers of activity among small busi-nesses in the state. And with recent leg-islation aimed at giving small technology businesses a boost, chances are Alaska is just beginning its own tech boom.

Another niche business popping up around the state: mobile food vendors. And one of the largest recent trends among existing and new small busi-nesses is of entrepreneurs tapping into social media to keep in touch with cli-ents and reach out to new customers.

To take a bird’s eye view, Alaska has about 17,000 private-sector fi rms, ac-cording to information from state econo-mists reported in the September edition of Trends magazine published by the Alaska Department of Labor’s Research and Analysis Section. About 60 percent, or 10,000, of the employers in the state are businesses with fewer than fi ve employees.

Alaska’sTechnologyBoomTech-savvy readers might recognize Ty-ler Arnold’s name—he was profi led in Alaska Business Monthly last July and spoke about his business, SimplySocial. He and his partners were on the cover and SimplySocial has enjoyed wide-spread multi-platform coverage since.

Arnold’s business, which helps com-panies develop and manage a social media presence, was one of the fi rst to take advantage of House Bill 252, leg-islation passed last year that, accord-ing to its sponsor statement, encour-aged “the development of high-growth technology and research companies in Alaska” by exempting them from state corporate income tax.

“Alaska is the most competitive place, tax-wise, in the United States for open-ing a soft ware development company right now,” says Allan Johnston, self-titled chief encouragement offi cer of the Alaska TEAM (that’s Th e Entrepre-

neurs and Mentors Network), a grow-ing group of people working together to boost technology-related businesses.

“We saw a community that was will-ing to nurture young tech companies,” Arnold says.

A lifelong Alaskan, Arnold says the business climate in Alaska has helped make his company a success.

“Big companies are easy to work with in Alaska. And being an Alaskan counts for something,” he says.

Arnold’s company is just one of a hand-ful of relatively new tech companies mak-ing waves in Alaska. Another, Catapult Consulting, is an Anchorage-based mobile phone application development company. Catapult has several apps that have ranked as top sellers in numerous app stores, in-cluding a game app called Trenches II they recently developed for big-name gaming company EA, or Electronic Arts.

It’s hard to get a good read on how the technology sector is faring on a state-

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wide basis. Th e kinds of jobs most peo-ple would consider tech jobs straddle two of the 11 economic sectors used by the state to classify businesses: the in-formation sector and professional and business services.

“It’s extraordinarily hard to quan-tify,” says Jon Bittner, vice president of the state-run Alaska Economic De-velopment Corp. “We work with more than a dozen tech-based companies and every single one of them is hurt-ing for employees. What we’re seeing is, they’re all expanding and they’re all saying there’s more work out there than people to do it.”

Although the job numbers are fuzzy, Bittner says last year’s fi rst Anchorage Hackathon was an eye-opener. It’s an event slated that puts nonprofi t groups looking for ways to solve data problems together with information technology workers or techies who will crunch data and turn out information in surprising new ways. Th irty people participated in the three-day event, resulting in fi ve new data applications, he says. It was a win-dow into a larger reservoir of knowledge.

“We were surprised to fi nd there was a really vibrant community out there,” Bittner says. “Th ey just didn’t really have a nucleus to center around.”

A nucleus is forming, and Johnston speculated Alaska’s tech businesses would grow rapidly. A number of busi-nesses have been developed using the virtual incubator that TEAM devel-oped, and the annual Alaska Business Plan Competition.

Other events like the Hackathon have helped drive up interest in tech-nology and get people talking with each other about creating new busi-nesses, Bittner says.

“Everyone is working together on this. Th at’s never happened as well as it has this year,” Johnston says. “I think it’s going to be a geometric thing; we’ll get a few businesses going and then more will start popping up in Juneau and Fairbanks and other places in the state.”

“What I think you’re going to see is an explosion of a sort of small-scale niche manufacturing as well,” says Bittner. Not mass manufacturing like the U.S. used to be known for, but small-scale manufacturing using tools such as three-dimensional printers and laser etchers, he explains.

GourmetFoodonWheelsMobile food trucks are a trend sweep-ing the Lower 48 and they’re popping up more frequently in Alaska.

Wheel Good Food, a company that began operating last fall, has two trucks that off er gourmet bites like beef sliders and polenta fries—a meal runs around $10. On board, according to their web-site, are two recent UAA culinary school graduates. Urban Bamboo, a vivid green Asian fusion food truck, boasts three chefs whose resumes include hot Anchorage eateries. Th eir menu also aims for the $10 range. Eat Alaska of-fers inventive sandwiches for under $10 and soups to go. And proving not every business has to fi t the mold, Tiers From Heaven is a mobile cupcake truck that off ers sweet gourmet treats for $3 each.

Th ose are just a few of the mobile meal deals on off er around Anchorage—plen-ty are available elsewhere in the state as well. State Department of Environmental Conservation Environmental Health Of-fi cer Mike Solter says 105 mobile self-con-tained food facilities are currently per-mitted in Alaska. Of those, 43 were added just last year. Between 2010 and 2011, he says, 24 mobile food services were added.

Why? Grant Larsen, Anchorage busi-ness adviser at the Alaska Small Busi-ness Development Center in Anchorage, says mobile food trucks off er chefs a chance to run their own kitchen without the overhead of a brick-and-mortar loca-tion. His offi ce off ers classes on strarting a small business such as a mobile food

truck and says there’s been more interest in the classes recently.

“Chefs oft en like to get out on their own and there are a lot of good chefs here in Anchorage,” Larsen says. “To get start-ed (in a restaurant) is never inexpensive, especially if you’re talking about a com-mercial kitchen. People see mobile food service as a way to enter the restaurant industry with lower startup expenses.”

Jennie Carter, who operates Tiers From Heaven, says a mobile food truck is a good fi t for her because it allows her to be versatile.

“I didn’t want to get so big that I would have to hire employees and I didn’t want to get stuck with a store-front where I would feel forced to make my business bigger just to pay for the lease, utilities, etc.,” Carter says.

She says the mobility allows her to go where her customers are, or are likely to be. Carter drives to farmers’ markets, wed-dings, sporting events and city events—she can do her work wherever she goes.

It can be a challenge to get permis-sion to park and sell, she says. While business owners might be OK with her selling cupcakes in their parking lot, many landowners are not so pleased to have someone making extra dough from their real estate.

“Th ere are a handful of places that I favor, due to convenience for myself as well as customers, but I’m constantly looking for empty lots with ‘for lease’ signs or vacant buildings with a real es-tate sign,” she says.

Kaleidoscape Play Studio owner Jennifer�Stratton.�

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Asked if she saw the food truck as a stepping-stone to a brick-and-mortar shop, Carter says she’ll stay on the move.

“My long-term plan is to continue to operate as a mobile business. It gives me fl exibility both in my professional and my personal life,” she says.

SocialMediaKeyIt’s probably little surprise that busi-nesses like Carter’s, which have to keep customers apprised of where they are each day, are making use of social me-dia platforms. Carter and other mobile food vendors update customers via Twitter and Facebook in addition to having a website and sometimes mak-ing use of other media platforms.

“I think the majority of my customers know to fi nd me online,” Carter says.

Carter holds contests and referral competitions where customers refer friends to her business, and the cus-tomer with the most referrals wins a prize. Sometimes she sparks conversa-tion online by asking her followers their favorite cupcake fl avor. But her online presence is about more than just pro-motions, she says.

“I try to answer every question and every message that I receive. I try to let my personality show through when I post, rather than just the facts. I feel that helps people get to know me and it helps me stay in tune with what people want,” Carter says.

OnlineContactVitalTraditional brick-and-mortar business owners are sometimes paralyzed by all the options available online for reach-ing out to their customers. Which plat-form is best? Do I need a website? How can I get my website to come up at the top of search engine results?

“It scares people to think about keep-ing their website and Facebook and Twit-ter updated while also monitoring yel-lowpages.com, yelp.com and all the sites that allow the general public to comment on your business,” Larsen says.

Th e Small Business Development Center off ers social media classes an-swering an array of questions about what works, what doesn’t and how to identify what will best suit a business.

Lauren Riley coordinates the work-shops and says both the number of classes held each year and the atten-dance have increased dramatically. In 2009 the SBDC held two classes, with 21 attendees. In 2012 more than 100 people attended 9 classes. Riley says SBDC plans to continue holding social media classes through 2013, with one overview class each month and an addi-tional class each month focusing on one social media outlet at a time—Face-book, YouTube, Pinterest, for example.

“Th e reason people come to our workshops is, they’re confused by the choices. Th ey want to know what the biggest bang for their buck is and where to begin,” Larsen says.

SBDC also off ers clients a one-stop tool for managing social media and custom-er reviews called Brandify.com. Riley says it allows business owners to look at everything they have happening online at once and see what people are saying about the business. It also suggests ways to improve the business’s presence. And if someone leaves a bad review, Riley says, the business owner can personally respond and try to remedy the problem.

Although the SBDC works with Bran-dify.com, there are several other tools that help businesses reach out to and interact with clients—including Ar-nold’s SimplySocial.

Jennifer Stratton, owner of the recent-ly opened Kaleidoscape Play Studio, an indoor art and play space in the Univer-sity Center Mall in Anchorage, says so-cial media allowed her business to open with a ready-made customer base.

“As of right now (in March) I have 1,574 likes on Facebook and we’ve been open a month,” Stratton says. What’s more, she says, is their engagement rate—a way to measure how many followers are interact-ing with their page—is much higher than it is for most businesses on Facebook.

Why? Stratton says she updates her page daily and has a rotating schedule of things to post. She launched the page in August, before she even knew where her business was going to locate.

“My plan for doing that was: one, I couldn’t wait to get started; and, two, we wanted to build a community of fami-lies of people who would come to the play studio once it opened,” she says.

In addition to sharing details about her plans, she posed questions to the people following her progress. What snacks should be off ered in a snack bar? Th at one got 67 comments, she says.

“Ask questions that you, yourself, would answer. Th e key is fi nding the niche that your community responds to,” she says.

She shared site progress every Sat-urday. Mondays were “Mustache Mon-day,” and she’d post a picture of some-one, somewhere, with a mustache. Th ursdays were “Did you know?” with a fun kid-friendly fact. Th e schedule has changed now that she’s open, Stratton says, but she still keeps a schedule.

“It was something our community could look forward to every single week,” she says.

Business owners whose businesses aren’t currently online frequently voice fears that being online will take time—too much time for too little eff ect. Both Carter and Stratton says being active online does take time, but it’s worth it. It helps the community not only connect to but inter-act with their businesses, the women says.

“If you have not made the jump, you need to. It may be daunting at fi rst but the more you use it, the more friendly it will be. It is most defi nitely worth the time and eff ort,” Carter says. “For me, I think that I wouldn’t be as successful if I didn’t promote my business through social media. Rarely do I have people tell me that they were just walking or driving by and saw my truck. Most of the time, people are stopping by because they saw me on Facebook.”

Mia Grace Stratton in a�pod�chair� at�Kaleidoscape.

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Rindi White is a freelance journalist living in Palmer.


FinAnciAl services

Financing Startups and AcquisitionsFinancing Startups and AcquisitionsFinancing Startups and AcquisitionsLoan guarantee programs and business plans help

By�Tracy�Barbour

When Birchwood Montessori School opened in Anchorage on March 4, it was a dream

come true for Tere Obrachta. She had previously worked in social services, but she always wanted to start a business to provide child care and early education services. When she moved to Alaska from Alabama in 2008, she decided it was fi nally time to pursue her passion.

But Obrachta—who had a bachelor’s degree in psychology at the time—needed to enhance her expertise, expe-rience and credentials. So she worked at Anchorage Montessori School for near-ly four years, completed a master’s de-gree in early childhood education and

teaching, and earned a master’s level Montessori certifi cate. Th en she pushed forward with her business goals.

She presented a carefully craft ed busi-ness plan to Wells Fargo bank and garnered a $400,000 loan to open the school. “Th is is like a second start,” says 50-year-old Ob-rachta. “Th ings are going well.” Birchwood Montessori School, which operates on the belief that children have unlimited potential to learn, is currently enrolling children from 19 months to 5 years old.

GuaranteeProgramsFacilitateFinancing

Obrachta’s successful loan experience with Wells Fargo was largely due to

backing from the Small Business Ad-ministration. Her fi nancing was guar-anteed by the SBA 7(a) loan program. While the SBA doesn’t make loans di-rectly, it off ers several guarantee pro-grams that make it easier for banks to lend money to new and expanding businesses. “We reduce their risk and exposure,” explains Sam Dickey, acting director of the SBA’s Alaska district of-fi ce. “With a guarantee, a bank will be more comfortable making the loan.”

Th e SBA is a valuable resource with the goal of helping businesses start, grow and succeed. It can’t guarantee fi nancing for passive investments, a church daycare or any business that discriminates based on

Wells Fargo Anchorage Business Banking�Manager�Bond�Stewart�and�Birchwood�Montessori�Director�Tere�Obrochta�discuss�the�school’s�business�plan�and�fi�nancing�provided�through�the�U.S.�Small�Business�Administration.

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gender or sex. However, the SBA guarantee loans for just about any other business that falls into the “small” category. Th e defi nition of small, Dickey says, is based on the industry. For in-stance, the size of a services or retail business is determined by the number of employees. For other industries like construc-tion, it’s based on revenue. “Part of the trick is fi nding the right program that fi ts with your project,” Dickey says.

Many banks, credit unions and other fi nancial institutions in Alaska off er SBA 7(a) and Certifi ed Development Company 504 loan programs for bor-rowers who can’t quality for convention-al fi nancing. Th e 7(a) program can be used for everything from working capi-tal to purchasing construction materials to acquiring another business. Th e 504 program is designed to fi nance real es-tate and hard assets. It gives borrowers the advantage of extending payments over a longer time, such as 25 years instead of the standard 15-year term. “Th ese are typically ‘dirt’ deals,” Dickey says. “You’re buying land or a building for occupancy, not to lease out.”

Entrepreneurs who are interested in exploring an SBA program should start with their fi nancial institution. Th e lender will determine the best type of fi nancing for their project and recom-mend an SBA loan if traditional fund-ing isn’t feasible.

Loan guarantee programs are also available through the U.S. Department of Agriculture, Alaska Development Export Authority and Bureau of Indian Aff airs. Th e Anchorage Municipality’s new 49th State Angel Investor Fund also provides fi nancing for startups.

FinancingStartupsNew businesses typically start from scratch and need money for everything from equipment, furniture and fi xtures to leasehold improvements and work-ing capital. Equipment fi nancing can enable them to function in their busi-ness capacity, while leasehold improve-ments allow them to customize the space to meet the needs of their busi-ness. Working capital fi nancing, as the name implies, helps cover the overhead of the daily operations such as payroll, rent, marketing and other expense.

Th e needs of the borrower gener-ally determine the type of fi nancing involved. A monthly term loan, for instance, is generally used to fi nance equipment, according to First National Bank Alaska Vice President Jay Page. Short-term fi nancing, such as a line of credit, is ideal for making payroll, buying supplies and other recurring operating expenses, as well as covering accounts receivables. However, Page says, no two startups are alike. He adds: “Th ey’re like snowfl akes. Th ey have their own unique situation.”

Start-up business borrowers have to meet all the basic qualifi cations for fi -nancing. Th ey must have the capacity to repay the loan, capital to invest, suf-fi cient collateral and favorable econom-ic conditions. Character or personal credit worthiness is also a key require-ment. Lenders also consider what type of credit history the business owners have as individuals. “If they have good habits dealing with personal debt, they should also have good habits handling their business debt,” Page says.

Potential borrowers oft en think the process of securing fi nancing is easier than it actually is, according to Page. Th ey don’t understand everything a bank has to do to feel comfortable mak-ing the decision. Th ey also don’t under-stand that the bank is truly interested in their success. “If we don’t think they’ll be successful, we’re doing them an in-justice by making the loan,” Page says.

Wells Fargo’s Anchorage Business Banking Manager Bond Stewart agrees. His bank also ensures that borrowers substantiate adequate cash fl ow, collat-eral and secondary sources of payments to support their loan. Th e business needs to have a strong story as well as a great business plan that explains how they’re going to be successful. “We want to pro-vide loans that grow our economy and create jobs,” Stewart says. “We are inter-ested in helping businesses succeed.”

Insuffi cient collateral, capi-tal and planning are the three greatest stumbling blocks a new business must overcome, says David Hamilton, Alaska USA Federal Credit Union’s executive director of business and commercial services. He says it’s critical for borrowers to thoroughly understand the

cost of starting and maintaining a busi-ness, which requires extensive research by the business owner.

To properly prepare for the loan pro-cess, Hamilton says, borrowers need to do their homework and have the docu-mentation to support their loan request. Th is includes having a well-written busi-ness plan with fi nancial projections that can be supported by market analysis of the borrower’s industry. Th e plan should also include an explanation of the or-ganization and management structure of the business as well as the roles and responsibilities of key players. It should also include details about the company’s intended marketing and sales strategy, the competition and challenges that must be overcome. Hamilton adds: “It is also important for borrowers to have their personal fi nancial aff airs in order. Th is includes an advanced review of credit re-ports to ensure that they are current with all creditors and that any negative report-ing has been addressed and rectifi ed.”

Chris McGee, president and CEO of Alaska Growth Capital, fi nds that start-ups oft en fail to analyze the risks that can attack the future of their business. Th at’s why he encourages potential borrow-ers to carefully consider their business idea. Th ey should contemplate whether it makes sense, if it fi ts with the economic model they want to operate in, and if they have adequate management experience in the business they want to start.

Th ey can also solicit initial feedback from their lender. For example, McGee says, “When they call us we’re more than happy to talk about the business model—its strengths and weakness-es—to see how sound their idea is be-fore they complete the application.”

FinancingAcquisitionsBusiness acquisitions allow established companies to almost instantly grow their operations. Th ey off er a viable way to se-cure new assets, gain market share and

PagePage HamiltonHamilton StewartStewart

stay on top of changing industry trends.Th at’s exactly what happened with

Jim’s Equipment Repair LLC, which has operated a full-service heavy equipment repair and industrial ma-chine shop in Anchorage since 1994. Th e company acquired Wilkie’s Heavy Equipment Repair and Parts Inc. in 2010 for a purchase price of $510,000, plus an additional $73,150 for moving, professional and contingency costs. Alaska USA helped the business obtain an SBA 504 loan, which encompassed a $281,575 term loan from Alaska USA and a $225,260 term loan from the SBA, according to owner Jim Evridge.

Th e 504 loan program was advanta-geous because it off ered a lower cash down payment and a below-market, fi xed interest rate. Both loans have a 10-year amortization, although Alaska USA’s loan has a seven-year call. Evr-idge used a signifi cant amount of the loan proceeds to integrate Wilkie’s 10,000 square feet of assets and inven-tory into its 13,000-square-foot facility.

Jim’s Equipment Repair also acquired Alaska Diesel Rebuilders through a sep-arate transaction that was not part of its original expansion business plan. Th e acquisition involved a combination of cash out-of-pocket and owner fi nancing.

Th e acquisition fi nancing has enabled Jim’s Equipment Repair to signifi cantly increase its reach and footprint. “Th e purchase of Wilkie’s and Alaska Diesel Rebuilders has expanded our services, product off erings and client list, which has allowed us to gain more of the Alas-ka market share from the larger Lower 48 shops,” Evridge says. “Our revenues more than doubled, and as we continue to become more effi cient on the cost

side of the equation, our profi tability has exceeded our expectations.”

Financing the acquisition through Alaska USA was a positive experience for Evridge. “Th ey know exactly who the players are and what is going on in our industry,” he says. “Th e can-do, relaxed attitude over there has always been encouraging to us.”

When fi nancing acquisitions, Alaska USA generally requires the existing com-pany to provide at least three years of historical fi nancial data that refl ects pos-itive trends and profi tability, according to Hamilton. It analyzes the cash fl ow of both companies involved to ensure ad-equate debt service coverage is available for the new debt. Th e credit union also examines tangible assets to collateralize the loan amount and requires the busi-ness and principal owners to have good credit histories. Sometimes additional information is required to support the loan proposal. “Frequently, there is ‘blue sky’ that is part of acquiring any existing business; therefore, we may need to look at all available assets owned by the busi-ness and principals as options for secur-ing the loan,” Hamilton says.

At Alaska Growth Capital, the over-riding goal when fi nancing acquisi-tions is to put together a structure that best fi ts the buyer and seller. Th ere isn’t an industry that Alaska Growth Capi-tal won’t consider fi nancing. However, there is one major stipulation: Th e buyer has to be the primary operator of the business. Th is ensures the buyer has an awareness of the fi nancials of the market they’re getting into, according to McGee. Th at usually isn’t a problem because ac-quisitions typically involve expansions within the same industry. “Ninety-nine

percent of the time, there will be a lot of synergy with the companies,” he says.

When evaluating loan proposals for acquisitions, Alaska Growth Capital considers a number of factors, including whether the expansion makes sense and how it’s going to align with the great-er goal of the existing company and growth plan. McGee says, “We also want to make sure we’re looking at the down-side risks—that it’s (the acquisition) not threatening the core operation.”

At Wells Fargo, fi nancing acquisi-tions involves examining all of the fun-damentals. Th is involves determining the suffi ciency of the existing company’s revenues, whether the businesses comple-ment each other, and whether the acquisi-tion is feasible from a global perspective. “Are we comfortable with the risk, their ability to service their debt, and their abil-ity to cover their debt?” Stewart asks.

Acquisitions are like startups on steroids, according to Page of First Na-tional Bank Alaska. Th e acquiring com-pany is already established and typi-cally wants to expand horizontally into familiar territory. Th e business owner has developed a level of savvy and is ca-pable of doing due diligence. “Th ey’ve been down that road before.”

First National Bank Alaska strives to help business owners carefully evaluate the fi nancial feasibility of their expansion opportunity. “We’re going to do our due diligence and look at the fi nancial state-ments of the company being acquired,” Page says. “If we don’t think it’s a good ac-quisition, we’ll tell our customer why.”


Former Alaskan Tracy Barbour writes from Tennessee.

Wells Fargo’s Bond Stewart

(second�from�left),�with�Birchwood�

Montessori’s�Mikae�Gilbert,�Tere�Obrochta,�

Kayley�Sheldon�and�Ann�Obrochta.


May

� BusinessofCleanEnergyinAlaskaConferenceMay 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

� AlaskaBarConventionMay 15-17—Centennial Hall, Juneau: Includes CLE credit opportunities, retire-ment reception for Justice Carpeneti, dinner, dance and awards banquet with Keynote Speaker Peter Leyden. Registration required.alaskabar.org

� PrivateSectorTransportationInfrastructureandAssets:ResponseCapacityandDevelopmentintheArcticWorkshopMay 29-30—World Trade Center, Seattle: Follow up discussion to the Dec. 2012 Arctic Transportation Infrastructure workshop in Reykjavik; will focus on the private sector and industry response capacity, with an em-phasis on assets deployed and infrastructure developed in the Arctic. Opening reception on May 29. Registration required.institutenorth.org

June

� AmericanSocietyofCivilEngineers10thInternationalSymposiumonColdRegionsDevelopment:PlanningforSustainableColdRegionsJune 3-5—Dena’ina Civic & Convention Center, Anchorage: Th e program will include technical tracks and a timely panel discussion about Climate Change. Social events include an ice breaker reception, awards luncheon, and conference banquet. Field trips to sites that demonstrate successful applications to cold regions engineering will also be scheduled.asce.org

� AlaskaOil&GasInfrastructure&DevelopmentSummitJune 3-5—Hilton Anchorage, Anchorage: “Capitalize on new opportunities, new developments and new markets by meeting all the key stakeholders in one forum.” In-cludes pre-summit briefi ng: Alaska Off shore & Outer Continental Shelf Development: Prospects, Players, Plans and Predictions on June 3. Registration required. infocastinc.com/events/[email protected]

� ISOPEArcticMaterialsSymposiumJune 30-July 5—Egan Civic & Convention Center, Anchorage: Special symposium or-ganized to provide the scientifi c-industrial community an insight of new materials and technology development in the subject of Arctic Materials. arcus.org

July

� ASBOAnnualMeetingJuly 21-24—Hotel Captain Cook, Anchor-age: Th e National Association of State Budget Offi cers, hosted by the Alaska Offi ce of Management and Budget, meets to hear expert speakers on the economy, state revenues, healthcare reforms and more, as well as to network. Contact: Lauren Cummings [email protected], nasbo.org

� USAEE/IAEENorthAmericanConferenceJuly 28-31—Hotel Captain Cook, Anchor-age: Th e theme of the conference is Industry Meets Government: Impact on Energy Use and Development. Th is conference will ad-dress the issues, challenges, and opportuni-ties of industry-government relations as the stakeholders strive to meet their respective goals for commerce and society. Contact: Roger Marks [email protected]/USAEE2013/

August

� InstituteoftheNorth’sWeekoftheArcticAugust 12-18—Th e Institute has been convening Week of the Arctic since 2011 to help Alaskans understand the critical challenges and issues at stake in the Arctic. It culminates with the Robert O. Anderson Sustainable Arctic Award, which recognizes and individual or organization for long-time achievement in balancing de-velopment of Arctic resources with respect for the environment and local benefi t. institutenorth.org

September

� AlaskaOilandGasCongressSeptember 17-18—Anchorage: Th e An-nual Alaska Oil and Gas Congress brings together oil and gas professionals from across the US, Canada and abroad and is dedicated to updates on projects, policy, opportunities and challenges in the oil and gas industry in Alaska.alaskaoilandgascongress.com

� AlaskaFireConferenceSeptember 23-28—Anchorage: Th e theme is “Today’s Visions Tomorrow’s Reality.” In-cludes training and a fi refi ghter competition. facebook.com/AlaskaFireConference

� AARConventionSeptember 17-21—Hotel Captain Cook, Anchorage: Th e Alaska Association of Realtors 2013 Convention theme is “No Excuses.” It will be hosted by the Valley Board of Realtors. alaskarealtors.com/2011-convention/

October

� AlaskaBusinessMonthly’sTop49ersLuncheonOctober 2—Dena’ina Civic & Convention Center, Anchorage: Come honor the top ranked Alaska companies by revenue at our annual luncheon.Contact: Tasha Anderson [email protected], akbizmag.com

� AlaskaCoalitiononHousingandHomelessnessConferenceOctober 9-11—Anchorage Marriott Downtown, Anchorage: Events include keynote speakers and training sessions. Registration required.alaskahousing-homeless.org/conference

� NativeKnowledge:RespectingandOwningourLivingCultureOctober 21-23—Carlson Center, Fairbanks: Sponsored by the First Alaskans Institute, the conference stimulates dialogue between young people and elders, and encourages the maintenance of traditional Native values and practices in a modern world. Registration required.907-677-1700, fi rstalaskans.orginfo@fi rstalaskans.org

� AlaskaFederationofNativesAnnualConventionOctober 24-26—Fairbanks: Annual gather-ing of Alaska Native peoples to enhance and promote the cultural, economic and political voice of the entire Alaska Native community.907-263-1307, [email protected].

� NWPPA/APAAlaskaElectricUtilityConference&TradeshowOctober 28-30 —Dena’ina Civic & Conven-tion Center, Anchorage: Th is is the largest conference and trade show for public power utilities in Alaska, held every other year. It provides opportunities to learn about the lat-est practices, innovations, and technology in the electric utility industry through educa-tion sessions, a trade show, and networking.Contact: Gail Patterson 360-816-1450 [email protected], nwppa.org

November 2013

� AlaskaMinersAssociationAnnualConventionandTradeShowTBA—Sheraton Hotel, Anchorage: Includes luncheons, banquets, keynote speakers and short courses. Registration required.alaskaminers.org

� AssociatedGeneralContractorsofAlaskaAnnualConferenceNovember 13-16—Anchorage: AGC of Alaska is a nonprofi t construction trade as-sociation dedicated to improving the profes-sional standards of the construction industry. agcak.org

� ResourceDevelopmentCouncil’sAnnualConference:AlaskaResourcesNovember 20-21—Save the Date! More information in the fall.akrdc.org

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www.akbizmag.com� May 2013 | Alaska Business Monthly 31


For many businesses, risk man-agement is somewhat of an af-terthought. Until something bad

happens, company owners may not con-sider the idea of protecting the business from loss to be of primary importance.

“Risk management and loss control can have huge implications in protect-ing a business and its bottom line,” says Christopher S. Pobieglo, president of Business Insurance Associates. “Th e re-ality is that a business can get probably away for a few years without risk man-agement controls in place, but sooner or later, something is going to happen. A business owner can do everything right for 20 years, but one uninsured claim can run into the millions and wipe out 20 years of work.”

Risk management is generally de-fi ned as the process used to decrease exposure to, and provide protection from, risk. While some companies have their own in-house risk managers, oth-ers may look outside to hire profession-als to help them determine potential losses. “Th ere are many types of risk; anything from transportation and vehicle risks to the loss of key people, owners or customers,” explains Dan Crawford, president of Pippel Insurance Agency. “Th ere is also the potential of risk to real property, including build-ings, their contents and data. Business owners need to look at the big picture to determine what could cause physical or fi nancial risk to themselves, their lives and their businesses.”

CreatingaRiskManagementProgram

Th e fi rst step in any risk management

program is to identify the risks that a business faces. “If you don’t identify the risk, you can’t develop strategies to deal with it,” explains Pobieglo. “You don’t need to make judgments at this time about how severe or unlikely the risk is; you want to list anything and every-thing, no matter how remote.”

Businesses should then quantify each risk by its frequency and severity. “How oft en could this risk happen and what would be the consequences?” asks Po-bieglo. “Business owners should assign a value to each risk, and then determine strategies to address these risks.”

Strategies can take a number of forms from buying insurance to creating an employee safety plan to carefully scruti-nizing contracts before they are signed. “You want to set up ways to control what you can; for example, the owner of a tourism company can minimize his transportation risks by not fl ying clients in bad weather,” explains Crawford. “Aft er mitigating what risks they can, companies should then decide how to handle the risk that is left , and create a general plan for risk administration in order to monitor the results of the steps that they are taking to minimize loss.”

According to Parker Smith and Feek Principal and Vice President of Risk Management Consulting Lynne Seville, there are numerous ways that compa-nies can mitigate risk. “One option is to transfer risk to others, for example, though a contractual transfer. A build-ing contractor might choose to reduce their risk on a project by pushing it on to a subcontractor or choose to not accept certain risks from the owner. When making a contractual transfer, it’s important to make sure that the person assuming the risk has the re-sources to pay for the loss, however; the contract might indemnify you, but the indemnitee needs to have the where-withal to assume the risk and the fi nan-cial resources to pay for the loss.”

Another option available to busi-ness owners is to fi nance risk by setting aside money or buying insurance to deal with potential claims. “While you can elect to transfer a certain amount of risk to insurance, some risks can’t be transferred or are too expensive to transfer because the premium doesn’t justify the nature of the risk,” says Po-bieglo. “While some businesses feel that they are covered because they’ve pur-

insurAnce essentiAls

How Safe is Your Business?How Safe is Your Business?How Safe is Your Business?Companies using risk management plans to protect bottom lines

By�Vanessa�Orr


chased insurance, it is really just one of a number of diff er-ent strategies that they should be using.”

RiskManagementResources

One of the reasons that many businesses do not have a risk management program in place is because, frankly, it can seem overwhelming. Considering every worst-case scenario—and putting strategies in place to deal with each—can be time-con-suming and confusing. But what does it cost a business to ignore this issue?

“Th is is one of those things that is hard to quantify; how do we measure what we prevented? How do you mea-sure what didn’t happen?” she asks.

“A business can throw caution to the wind, but they will only be lucky for so long; they will have claims and losses over time,” she adds. “And these claims can range from a few dollars to millions of dollars.”

In addition to specifi c business losses, a company without a risk management

program in place can also be aff ected negatively when trying to buy insur-ance. “Th e market is hardening and pricing is increasing in Alaska,” says Seville. “A company with a track record of claims will fi nd that it drives their premiums up; even if they’ve managed risk on a basic level, they will have to step up what they’re doing to even get insurance providers to talk to them.

“Litigation is also a concern for busi-nesses that are not controlling their exposure to risk,” she adds. “Damage awards can be devastating to a busi-ness; a good risk management plan can

help a business avoid getting sued or at least provide some defense in litigation.”

Th e lack of a risk manage-ment program can even pre-vent a company from getting new business, according to Pobieglo. “If Contractor A is bidding for a job against Contractor B, and Contractor A has lost his workers’ comp carrier because of a poor loss history, it can threaten the very viability of his business,”

he explains. “By going through the state-run pool for workers’ comp, Con-tractor A has to pay a surcharge of 25 percent on all premiums over $3,000, which directly aff ects his overhead and in turn, his competitiveness and his ability to get new clients.”

Th ere are a number of resources to help business owners learn more about risk management. Certifi ed risk managers have completed additional schooling in this area in order to be able to provide professional counsel-ing on ways to cut down on loss. Dif-ferent industry professionals, such

Christopher S. Pobieglo

PresidentBusiness�Insurance�

Associates

Christopher Dan CrawfordPresident

Pippel�Insurance�Agency

Dan Crawford Lynne SevillePrincipal, V.P. of

Risk Management ConsultingParker,�Smith�and�Feek

Lynne Seville


as insurance brokers and insurance carriers, have years of experience in claims and loss management, and fi -nancial advisers and CPAs can oft en provide insight into risks that can af-fect a business’s cash fl ow and bottom line. “Some industries have special-ized risk management certifi cations, like those in the banking, health care and hospitality industries,” says Se-ville. “Other businesses can also take advantage of governmental off erings, like counseling provided by the Small Business Administration.”

Businesses might also be able to get access to pre-made risk profi les that have been put together by experts in diff erent industries. “Insurance brokers have access to risk management check-lists and loss control ideas that have been generated for very specifi c types of

businesses as a result of years and years of insurance claims,” Pobieglo explains.

“Typically speaking, a business does want to work with someone who has a certain level of expertise in this area; some companies, like ours, specialize in certain niches like construction, ar-chitecture and engineering, nonprofi ts and Native corporations,” he continues. “Check with trade associations or gath-er word-of-mouth recommendations from within your industry, and don’t be afraid to interview diff erent brokers.”

Having the right risk manager in your corner can make a big diff erence to a business’s success. “One of our cli-ents was having workers’ comp issues that were driving up his costs,” says Crawford. “We sat down with him and talked about being more careful in hir-ing, having safety meetings and mak-

ing sure to address the diff erent issues that the company was having during these meetings. Once he started doing this, the client was able to bring his workers’ comp pricing back down to where it should be for a savings of more than 40 percent.

“Even small changes can make a dif-ference—incidental things like putting rubber mats down where restaurant workers do food prep can prevent back issues, which cuts down on workers’ comp claims,” he adds.

While some companies may avoid looking at the risks that their business-es face, that type of mindset may be the biggest risk of all. “Risk management is really the art of looking at the big pic-ture to see what you can do to minimize any type of loss—it’s something that most people do every day,” Crawford surmises. “Th ings like checking the furnace or making sure the stove burn-ers are off to prevent a possible fi re—that’s risk management.”

Vanessa Orr is the former editor of the Capital City Weekly in Juneau.

“A� business� can� throw� caution� to� the�wind,� but� they�will� only� be�lucky� for� so� long;� they�will�have�claims�and� losses�over� time.�And�these�claims�can�range�from�a�few�dollars�to�millions�of�dollars.”

—Lynne SevillePrincipal�and�Vice�President�of�Risk�Management�Consulting,�Parker�Smith�and�Feek

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energY

Hydroelectric project generates a growing workforce

By�Zaz�Hollander

A massive dam proposed for the Susitna River is still a decade and many layers of government

permits away from producing power for the Railbelt. But already the state’s Susitna-Watana Hydroelectric Project is cranking out jobs.

As of March, there were 385 people contracted to work on Susitna-Wata-na Hydro, according to Emily Ford, spokeswoman for the Alaska Energy Authority. Th at doesn’t include local offi cials, Alaska Native Corporation staff , state agency workers and federal government employees devoting time to the project.

Alaskans hold 50 to 60 percent of those jobs, Ford says.

Th e Energy Authority is the state public corporation tasked by the Legis-lature with getting a dam built on the Susitna. Th e Legislature approved $75 million for Susitna-Watana in 2010. Th e Authority is asking for another $95 million this year.

Project managers asked vendors to track Alaska-based hiring and spending.

“We know that this issue of work-force development, whether or not

Alaska has the workforce to make this happen, are discussions that are hap-pening, especially with the Legislature when you’re talking about a state-fund-ed project,” Ford says.

Th e Susitna-Watana dam would rise 730 feet about 90 miles upriver from Talkeetna, creating a broad, 42-mile-long reservoir up the remote Susitna Valley, a swath of wildlife-rich terrain popular for subsistence and sport hunt-ing and fi shing.

Th e reservoir would fi ll with rain-fall and snow melt during the spring and fall. Plans call for three turbines to generate electricity to meet Railbelt demand. Th e reservoir could drop by as much as 200 feet at peak demand times.

As Alaskans weigh the state’s un-certain energy future, backers say the Susitna-Watana project would supply about half the electrical power needs of the Railbelt’s residents, three-quarters of the state’s population.

Th e whole thing is currently expect-ed to cost nearly $5.2 billion with an as-yet unknown share from the state. Th e project price tag is a moving target. Th at $5.2 billion estimate is accurate

within 25 percent, according to an AEA report to the Legislature last year.

Th e earliest this hydroelectric project could start making power is 2024. Until then, project managers say, more jobs are in the works.

MovingaRiverTo build the dam the state needs a li-cense from the Federal Energy Regula-tory Commission, a six-year process. Th e Authority also needs a Clean Water Act permit from the U.S. Army Corps of Engineers for project construction.

Th is year, plans call for more than 58 environmental studies in addition to 20 studies conducted last year. Some studies update work done in the 1980s, when an earlier, two-dam project was ultimately mothballed.

Th e Authority plans to submit a li-cense application in 2015 and hopes to obtain a FERC license and USACE per-mit by 2017. Th at’s when construction would start. If that timeline stays on track, the dam at Watana could come on line in 2024.

Project engineers plan to use roller-compacted concrete to dam the steep

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Photo courtesy of Alaska Energy Authority

Field work on the Susitna-Watana�Hydroelectric�Project�began�last�year�with�12�early�studies.�


Susitna canyon. Concrete would be ap-plied in thin layers, one over the other, like a cake. Th e dam would be built into bedrock at river bottom, then anchored into the canyon walls.

Previously constructed roller-com-pacted concrete dams have used either conveyor belts or trucks to move the

concrete layers. Typically, the top of the dam is wide enough for two “lanes” of traffi c with enough room on the sides so there isn’t a need for scaff olding or any other structures.

Along with the dam and power-house, the project would include an access road, transmission line, airstrip

and temporary work camp to house as many as 1,000 workers.

Th e entire river would need to be di-verted to give dam construction crews access to bedrock. To accomplish that, the project calls for a 35-foot diversion tunnel to be blasted into the north wall of the Susitna canyon. Coff er dams on either side of the construction site would reroute the river’s water through the tunnel.

Once the dam is fi nished, the river’s original course would be restored.

Unlike the big dams of the desert Southwest, tourists wouldn’t be allowed to stroll or drive the top of this massive concrete wall. Th e Susitna-Watana dam would be considered critical energy in-frastructure and off -limits to the public.

PermitsandPushbackTh e dam represents the state’s preferred route to meet a state goal to use alter-native or renewable energy to generate half of statewide electricity needs by 2025. Project proponents say it’s the only way. Others say developing a great-er number of smaller renewable and alternative energy projects could also

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Investing $459 million through 2017 in clean, efficient energy.Providing safe, reliable & affordable power into the next generation.

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meet that goal. Twenty-fi ve percent of statewide electricity was already being generated by alternative and renewable means in 2010 when the Legislature passed the 50 percent goal.

Th e project also raises concerns about what critics call the rushed pace of studies weighing the dam’s eff ect on the Susitna River’s world-class salmon stocks. Recently released data from 2012 indicates that only 10 chinook salmon migrated through the raging whitewater of Devils Canyon, accord-ing to an AEA report.

However, some state and federal sci-entists have said more research is need-ed on the dam’s downriver eff ects on temperature, water clarity and winter ice, which could have still far-reaching consequences for kings as well as other salmon species. It’s also unclear which agency, if any, will be given authority to address the eff ect climate change could have on the project’s glacier-fed water supply.

Several Native corporations own large parcels around the project area, including the spot where the dam will be built. Some regional Native lead-ers last year said the state was slow in reaching out to address access issues.

State project managers are involved in ongoing talks with several village and Native corporations on that issue. Th e Authority has developed a new working group to facilitate those talks, Ford says. Th e state is also working through the permitting process to en-sure land access during construction.

“Th e information we’re gathering is extremely important to Alaska Native Corporations as well,” she says. “We’re doing a signifi cant amount of work in cultural resources and subsistence. Working with communities and elders will be a signifi cant part of our work.”

ChangingWorkforceDiff erent phases of the project will re-quire contractors with diff erent kinds of expertise.

Right now, the Authority is fi ne-tuning which environmental studies to do and how to conduct them this summer.

Federal licensing offi cials in January approved 44 of the 58 studies proposed by the Authority. FERC asked the state for more detail on the remaining 14,

mostly focused on aquatic resources and fi sheries. A determination on those was scheduled for April.

Once the study plan gains approval, project focus will shift to the summer fi eld work season.

AEAisusingfiveprimecontractors

Th e Authority’s engineering contrac-tor is MWH Americas Inc., with of-fi ces in Alaska. MWH is a global company with international experi-ence, including the Panama Canal and several large dams. Th at contract also includes eight subcontractors. MWH President and CEO Alan J. Krause is a native Alaskan, having been born in Denali National Park and raised in Alaska.

Four companies hold environmental services contracts: HDR Alaska, with fi ve subcontractors; DOWL HKM Alas-ka, with seven subcontractors; URS Alaska, with 17 subcontractors; and ABR Inc., with eight subcontractors.

Th e numerous subs handle every-thing from helicopter pilots to ferry researchers to the remote dam site to lodging for them, Ford says. About 180 people are expected to be working in the fi eld this summer, necessitating fi eld camps and fi eld camp services.

State managers are in the midst of project licensing and design, Ford wrote in an email, so the state is “capi-talizing on the hydropower licensing expertise” found in the Pacifi c North-west, home to many of the country’s big hydro projects. A board of international consultants is advising the Authority on seismic, climate, engineering and other aspects of design.

Th e start of dam construction, how-ever, will make use of some of Alaska’s workforce strengths: road building, transmission line construction and camp services. CH2M HILL has ex-pressed interest, Ford says—and Native and village corporations would also be a good fi t.

“As we move into construction and fi eld work,” Ford says, “there’s a trained workforce here in Alaska that we will be utilizing.”

Zaz Hollander is a journalist living in Palmer.


When Sitka Electric Utility Director Chris Brewton fi rst got to town in 2008, he was

shocked to see “piles of plug-in elec-tric heaters” being unloaded outside a local hardware store. In Sitka to head the municipally-owned electric utility, Brewton was interested and asked the guys doing the unloading what was go-ing on. He was told that scores of Sit-kans were coming in and scooping up the electric heaters for their homes.

So Brewton checked the books and saw that the demand for electricity had increased along with the price of heat-ing fuel, which had more than qua-drupled—rising from 71 cents a gallon

in 2002 to $3.24 per gallon in 2008. (At this writing, in April, No. 2 heating fuel is selling for $3.96 to $4.18/gal. in Sitka.) During that period, Sitka also experi-enced a signifi cant increase in seafood processing capacity, spurring another large increase in electrical demand. Home builders were using electric heat in new construction. At $2.85 per gal-lon, offi cials estimated that electric heating had become cheaper than oil.

Sitka is blessed with excellent hydro-power resources. For nearly 20 years, plenty of electricity was supplied by two dams—one at Blue Lake (built in the 1950s) and one at Green Lake (built in the 1980s). But in the last fi ve years or

so, a combination of the increased de-mand and low rainfall has led to more and more reliance on expensive diesel generators to fi ll the gap.

SolvingtheShortageConstruction on the solution to Sitka’s power “shortage” began late last year. Sitka plans to raise the 210-foot-high Blue Lake Dam. Luckily, the dam was originally built to be strong enough so that it could be raised in the future.

“Somebody had some foresight,” says Richard Linden of McMillan LLC, the construction manager on the job, who has more than 30 years experience building dams. “Normally, you would

energY

Blue Lake Dam Expansion Project Blue Lake Dam Expansion Project Blue Lake Dam Expansion Project Sitka hopes to keep up with electrical demand

By�Will�Swagel

Photo courtesy of McMillen LLC

The Liebherr LR 1600/2 with�a�660-ton�capacity�and�360�feet�of�boom�is�being�used�on�the�project.�It�is�the�largest�con-struction�crane�in�North�America�and�belongs�to�Alaska�Crane�Ltd.�based�in�Anchorage.�The�giant�crane�is�being�used�to�ferry�people�and�construction�materials�to�the�far�side�of�Sitka�Electric’s�Blue�Lake�Dam,�since�no�roads�can�be�built�in�that�section�of�U.S.�Forest�Service�land�in�the�Tongass�National�Forest�on�Baranof�Island.


materials from the barge landing to the project staging area have been rumbling through downtown Sitka for months. Most of the short-term rentals are full.

Sitkans may notice something during 61 days in the summer of 2014 when the switch takes place from the old power sys-tem to the new, and Blue Lake power will not be available. During that period, Sitka will have to rely on Green Lake and the backup diesel generators for electricity.

But Blue Lake also supplies the city

with drinking water and that, too, will be shut off for 61 days. During those two months, Sitka will get its water from Indian River, which it did before the Blue Lake dam was built. Th e city is returning temporarily to a water source of the past, in order to provide enough power for Sitka’s future.

Alaskan author Will Swagel writes from Sitka.

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not be able to raise a dam without going down to the bottom and reinforcing it from the bottom up. Not to say it hasn’t been done before, but it’s unusual.”

Th e Blue Lake Expansion project is pegged at $145 million, to be paid with a combination of state grants and the sale of municipal utility bonds.

Th e plan is to raise the concrete arch dam by 83 feet to an elevation of 425 feet, in order to collect that much more water, bring the fl ow down the moun-tainside to a newly built powerhouse, and then use the increased water fl ow to run up to three generators. Th e proj-ect is expected to generate an average of 94,000 megawatt hours per year, raising the city’s generating capacity to 154,000 megawatt hours per year—a 54 percent increase for Blue Lake and a 27 percent increase city-wide.

Multi-YearProjectBarnard Construction Company Inc. is the general contractor. “Over the next two years,” they state, “our team will be plac-ing roughly 12,000 cubic yards of concrete to raise the dam, constructing a new 15 megawatt hydroelectric powerhouse that will be equipped with three 5.3 megawatt horizontal Francis turbine generators, and constructing 900 linear feet of new intake tunnel as well as a new concrete intake structure. Th e project also entails constructing a 360-vertical-foot, 10-foot-diameter surge shaft and 500 linear feet of new 8-foot-diameter steel penstock.”

Workers for subcontractor Blue Lake Tunnelers this spring were boring and blasting more than a mile of rock-lined intake tunnels through the grayish sand-stone known as greywacke. Being used on the project is the largest construction crane in North America, a 660-ton behe-moth with a 360-foot-long reach.

“We’re building in (USDA) Forest Service land, so we can’t build a road on the other side of the dam,” Linden says. “Th at’s why the crane is so long, so we can get people and construction mate-rial to the other side.”

Th e building of the dam has given a boost to the city economy, which is strug-gling with state and federal cutbacks and a decrease in cruise ship passengers. Heavy trucks hauling equipment and

Keep up with construction updates on facebook.com/bluelakeexpansion


trAnsPortAtion

Alaska Marine Highway System Alaska Marine Highway System Alaska Marine Highway System Celebrates 50 YearsCelebrates 50 YearsCelebrates 50 Years

Vital transportation link also serves as visitor attraction

By�Dimitra�Lavrakas

This year, for half of a century, the Alaska Marine Highway has been the backbone of transporta-

tion for 33 mostly land-locked commu-nities in Alaska, plus several others on the road system.

A means of personal transportation, a safe way to transport students to and from tournaments and competitions, a back-up to deliver the U.S. mail when planes don’t fl y, a dependable freight-hauler and a uniquely Alaska way to see the state, the

ferry system’s blue boats are a welcome sight in the cities and villages they serve.

Eleven vessels of varying size have runs that cover more than 3,500 miles of the state’s Pacifi c Coast from South-central in Whittier; down the Aleutian chain to Unalaska; or north from to Bellingham, Wash., or Prince Rupert, British Columbia, Canada, sailing the original Inside Passage—the one cruise ships can’t use because of their size and the narrowness of several passages.

It’s a real road and was recognized as such in 2002 when it was named a National Scenic Byway, and in 2005 as an All-American Road by the Federal Highway Administration.

JustTwoGuysandaBoatLike most big ideas in Alaska, this one started out small with two guys looking at a piece of equipment and scratch-ing their heads. Seeing a need for wa-ter transport in the upper Lynn Canal

The dining room on the�M/V�Columbia�boasts�classier�fare,�elegance�and�a�more�panoramic�view�than�its�cafeteria.

© 2013 Dimitra Lavrakas


north of Juneau, and with a road con-necting Haines to the Alaska Highway a distant dream, in 1948, Haines resi-dents Steve Homer and Ray Gelotte took a Landing Craft Tank-Mark VI landing craft like the ones used in World War II and converted it for ferry use between Juneau, Haines and Skagway.

Such landing crafts had been towed across the Pacific from Pearl Harbor, weathering a typhoon’s 50-foot swells and hurricane force winds but needing to have bolts and welds redone before sailing for their final destination.

SoundedPerfectforLynnCanalConditions

They called it the M/V Chilkoot, begin-ning a long history of naming ferries after Alaska’s natural wonders. These days they are named after glaciers, and with thousands of those, they’ll never run out of names.

In 1951, the Alaska Territorial govern-ment bought the Haines business, and after gaining statehood in 1959, it was renamed the Alaska Marine Highway System in 1963. The Haines route was ex-tended to Prince Rupert—still a port on Southeast Alaska’s Inside Passage Route.

In the years following, one route was extended farther south to Seattle, but later moved to Bellingham.

VisitorsLovetheExperienceTake a look at any of the online travel sites like TripAdvisor or Yelp, and the vast majority of travelers using the ferry system rave about their experi-ence on the ferries. Positive comments about the helpfulness and hospitality of AMHS crews, the food, accommoda-tions and the scenery and wildlife view-ing reflect their experience.

To see the real Alaska, away from com-mercialization and crowds, the ferries are the way to go—and it’s possible to meet real Alaskans doing real Alaska activities.

“AMHS provides a unique travel option for visitors,” says Danielle Adkins, AMHS marketing manager. “Visitors interested in driving to the state can take vehicles onboard, access remote communities, or make the experience of traveling an inte-gral part of their Alaska vacation. Ferries are fantastic sightseeing vehicles.”

While it may seem kind of crazy to be cooped up with complete strangers for days on some runs like the Inside

Passage from Skagway to Bellingham, more than a three-day ride, or the trip from Kodiak to Unalaska, a 47-hour ride, there are a lot of activities.

In the summer, the AMHS hosts on-board talks by U.S. Forest Service and U.S. Fish and Wildlife interpreters. On most ferries there are family friendly films in one lounge, a forward lounge, a computer room, a video game room, a playroom for children and of course a bar—some com-plete with a piano and dance floor.

All ferries have walls covered with work created by Alaskan artists: Tsim-

sian masks, starfish photographs, ship paintings are a few examples.

Dining facilities on the fast ferries M/V Chenega and M/V Fairweather are limited to snack bars, but on most there is a full-service cafeteria. The M/V Columbia, one of the fanciest, has a white linen-tabled dining room in the bow with a 180-degree view that at times makes a person incapable of eat-ing, it’s so awesome—particularly go-ing through the Wrangell or Tongass narrows where the passage is so tight it feels as if one could stretch their arms

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out and reach both hands deep into the lush rainforest.

In 1992, ferry use in Skagway was at an all-time high of 37,216 passengers from May to September, according to statistics from the Skagway Convention and Visitors Bureau. Last summer’s sta-tistic is 17,410 passengers.

Usage may have ebbed and fl owed over the years, but come the beginning and end of the summer season, the boats and car decks are fi lled to capac-ity with out-of-state seasonal workers.

Yearly events that draw more travel-ers—like the Klondike International Road Relay from Skagway to White-horse, Yukon Territory, Canada, or a special meeting like the recent Salvation Army Convention in Petersburg that re-quired an extra stop in Kake so people could attend—are accommodated by AMHS. And there’s Celebration in Ju-neau, a biennial festival of Tlingit, Haida and Tsimshian tribal members orga-nized every two years by Sealaska Heri-tage Institute that practically empties Southeast villages along the ferry route.

Neighbors in the Yukon with their newfound exchange rate wealth have begun to take the ferry in greater num-bers from Skagway or Haines to Juneau to shop at Fred Myer, Costco, Home De-pot or other big box stores.

Th e ferry system reaches out to as many potential users as possible.

“A large portion of our marketing bud-get is focused on raising awareness local-ly—providing residents with reminders about reasons to ride the ferry, promot-

ing local events and activities,” Adkins says. “We also market to visitors on a na-tionwide basis, promoting the system as a unique travel experience and a way that travelers can stop and stay in our com-munities and experience our culture.”

Culture and wildlife. For birders, Alas-ka off ers a mind-blowing assortment of bird sightings, especially in the spring and fall when the major migrations occur.

Th e latest ad encourages riders to travel to Wrangell for its Stikine River Birding Festival, Cordova for the an-nual Copper River Delta Shorebird Fes-tival, to Homer for the Kachemak Bay Shorebird Festival, or to Yakutat for the Yakutat Tern Festival. Th ese can be ex-perienced by booking a trip on one of the aff ectionately called “Big Blue Ca-noes” and with Alaska Airlines kicking in discounted fl ights to boot.

MorethanJustSightseeingShips in the Alaska Marine Highway fl eet routinely assist in search and res-cues or report ships in distress, accord-ing to the U.S. Coast Guard.

In 2010, the Alaska Marine Highway System received a U.S. Coast Guard Partner in Search and Rescue award during a ceremony in Juneau for its long history of assistance to mariners.

In 2006, the M/V Malaspina launched a rescue boat and stood by four fi sher-men on the stranded F/V Alaska Queen near Prince Rupert while on a run from Ketchikan to Bellingham.

Again that year, the crew of the M/V Taku rescued the crew off a life raft from

the fi shing tender F/V Stella that had grounded on Gull Island in Lynn Canal.

In 2009, the crew and command of the Taku were awarded the Honored Seafar-er Award for the rescue of two men from the fi shing vessel Alaskan Pride as it burned in Chatham Strait Oct. 13, 2009.

During 2009, AMHS crews and vessels joined hundreds of other nations in pro-viding a safety network to assist search and rescue coordinators in responding to emergencies at sea: Th e Automated Mu-tual-Assistance Vessel Rescue System, a worldwide voluntary reporting system used by search and rescue authorities, sponsored by the U.S. Coast Guard.

Alaska ferries can be tracked online at dot.state.ak.us/amhs/map.shtml.

Th e newest mainliner, M/V Kenn-icott, the fi rst large ocean-going passen-ger vessel designed and built in the U.S. since 1952, is not only a ferry but also an oil-spill response vessel. With a satellite communication system and a helipad, it is capable of responding to medical or oil industry disasters. On the cross gulf run it stops in Bellingham, Ketchikan, Juneau, Yakutat, Whittier, Chenega Bay, Kodiak and Homer. It has 85 staterooms that contain 266 berths and 24 room-ettes—essentially small, less-costly pri-vate rooms for walk-on passengers.

Furthermore, the ferry system pro-vides a number of jobs year-round and during the summer tourist season. “Th is varies seasonally,” Adkins says, “but at the peak of the summer season it’s right around 1,100.”

It’saCelebrationContests and community events mark the Alaska Marine Highway System’s 50th anniversary.

Th e M/V Malaspina’s Golden Voy-age, May 1-5, was inspired by the ship’s maiden trip and begins the AMHS 50-year anniversary celebrations. Stops will be in Ketchikan, Wrangell, Peters-burg, Juneau, Haines and Skagway with special side trips in Juneau to Tracy Arm Fjord and from Ketchikan around Revillagigedo Island through Misty Fjords National Monument.

During the cruise to Tracy Arm, the New Archangel Dancers and the Naa Kahidi Dancers of Sitka will perform the White Sail story, which tells the tale of one of the fi rst meetings between the Russians and Tlingit in Alaska.

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Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

Th e ship will be open to the public in each town for community events that include activities for children and rec-ognition of a town’s unique heritage, like Petersburg’s Norwegian infl uence, or Alaska Native culture, where in Wrangell there will be a rededication of the Tribal House on Chief Shakes Island.

WinaGoldenTicketPick up an entry postcard at ferry termi-nals or community events, or go online to the website at dot.state.ak.us/amhs to register to win a Golden Ticket worth $500 in passenger travel for one or more passengers on a one-way or round-trip voyage on a single itinerary. Th e Golden Ticket is only valid for passenger travel and doesn’t include vehicles, cabins, pets, bicycles, kayaks, food, beverages, gift shop items, or any other service that AMHS off ers onboard, according to the contest rules. Contestants may enter once a month through the end of the year. Up to 150 winners will be chosen randomly in drawings as part of the 50-year anniversary celebration.

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In Unalalaska on the Aleutian� Chain�and�the�southernmost�terminus�of�the�ferry�system,�built�in�1896�the�Russian�Orthodox� Holy� Ascension� Church� of�Our� Lord� Cathedral� is� well� known.�There�has�been�a�Russian�church�there�since�1808.

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heAlth & medicine

Innovations in Innovations in Innovations in Healthcare DeliveryHealthcare DeliveryHealthcare DeliveryHealthcare DeliveryHealthcare DeliveryHealthcare Delivery

Improving public health with advertising

By�Vanessa�Orr

When it comes to public health, changing people’s opin-ions—and behaviors—isn’t

always easy to do. How do you convince someone to quit smoking or to never start? How do you provide them with the knowledge and the means to live a healthier life?

Th e State of Alaska Tobacco Preven-tion and Control Program has found a way. Over the past 10 years, cigarette sales have declined by more than 50 percent; adult smoking prevalence has decreased by 25 percent and high school students’ smoking prevalence has dropped by more than 60 percent over the same time period. As a result, Alaska has saved almost $400 mil-lion in health care costs and prevented 8,900 premature deaths.

But the battle is not yet over. Work-ing in conjunction with Anchorage-based advertising agency Northwest Strategies, the TPC is continuing to reach out to high-risk groups while countering the eff ects of pro-tobacco advertising.

TheProblemTobacco use costs Alaska $579 million annually in direct medical costs and lost productivity due to tobacco-related deaths. Each year, 31 million packs of cigarettes are sold in the state; for every $9 pack of cigarettes purchased, it costs

Alaskans an additional $19 per pack in costs associated with smoking.

“Th e Tobacco Prevention and Con-trol Program has done a lot of incred-ible work over the last 10 years in com-bating smoking prevalence in Alaska adults, but we are still working to move the needle in other groups,” explains Tiff any Tutiakoff , president, Northwest Strategies. “Th ere are several disparate populations that we’re addressing that range across a variety of tobacco use. Th is includes rural and Alaska Natives who have a high prevalence of chewing tobacco use and youth ages 18 to 25, who have fl at-lined in prevalence. Th ere is concern that those numbers are not going down.”

Th e TPC’s comprehensive tobacco prevention and control program, which is based on best practices and strategies identifi ed by the Centers for Disease Control, is based on four goals: to pre-vent youth from starting tobacco use; to promote cessation of tobacco use among youth and adults; to protect the public from exposure to secondhand smoke; and to identify and eliminate tobacco-related disparities and achieve health equity. One of the ways in which the TPC does this is by creating mar-keting campaigns to educate the pub-lic and to counter the epic amounts of money being spent by the tobacco in-dustry pushing its products.

“Tobacco companies spend more than $1 million an hour marketing their prod-ucts in the U.S., which is a crazy amount of money,” explains Alexandria Hicks, program manager, State of Alaska To-bacco Prevention and Control Program. “We have to counter this investment. A health communications/intervention campaign is one of the most important components of our program in terms of sustainability because it has been shown that messages of longer duration and higher intensity are associated with greater declines in smoking rates.”

DeliveringtheMessageFortunately for Alaskans, the state has chosen to fund the TPC at the level rec-ommended by the CDC. While there has been a trend in recent years to cut fund-ing from state tobacco programs nation-wide, the TPC spends approximately $800,000 on paid media annually with approximately 35 percent of that money going toward specifi c cessation or stop-smoking health communications.

A young man contemplates a� call� to�Alaska’s�Tobacco�Quit�Line.�Quit�Line�enrollees�are�39�percent�more�likely�to�quit�for�good�than�those�who�try�cold�turkey.

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“We’ve been working with the TPC for three-and-a-half years, and for the fi rst two years, our message focused on cessation and stimulating quit at-tempts,” says Tutiakoff . “Our goal was to make an emotional connection with tobacco users, and then provide re-sources, which is why TV spots were tagged with Alaska’s Tobacco Quit Line. In 2012, the CDC began funding a campaign called, ‘Tips from a Former Smoker,’ which provided the state with an additional layer of communication.”

“Up until recently we did not focus cessation media communications ef-forts on the quit line; however, we ag-gressively promoted its existence and availability to Alaskans, statewide. Our quit line is considered the plati-num standard of state quit lines,” adds Hicks. “Currently we’re investing in promotion of quit line services—show-ing how it works for the caller and the incredible host of benefi ts that it off ers.”

Th rough a statewide multimedia cam-paign, which includes print, radio, TV and online components, Northwest Strategies and the TPC are informing tobacco users about the nicotine replacement therapy

and counseling support provided by the quit line. “We’ve created four unique spots that will run this year: one features a woman dealing with relapse, which is quite common—it takes an average of 11 attempts before a person successfully quits,” says Tutiakoff . “Th e second spot highlights real ‘quit coaches’ as a way to establish trust, and to encourage smokers to pick up the phone and call.”

Another spot features a young Alaska Native male going through the quit line process, and the last profi les a couple who quit smoking together. “We used real people who actu-ally called the quit line; they’re not actors,” adds Tutiakoff .

And the message is getting through: Th e campaign started on New Year’s Day and January 2013 reports show a 55 percent increase in call volume over the same time frame last year, with enrollees citing the TV commercial as the No. 1 reason why they called.

StretchingAdDollarsBy coordinating the campaign with the spots being run by the CDC, the state is

Native male going through the quit line process, and the last profi les a couple

New Year’s Day and January 2013 reports show a 55 percent increase in call volume over the same time frame last year, with enrollees citing the TV commercial as the No. 1 reason

By coordinating the campaign with the spots being run by the CDC, the state is

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decrease business costs for insurance, cleaning and

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making its money go further. “Th e CDC sets up their plans and we work around those plans,” explains Tutiakoff . “We stretch our dollars by piggybacking on what they’re doing. Our quit line cam-paign is primarily a cable-dominant buy, but in places where there is no TV coverage or radio stations, we fi ll in the holes with other components.”

Northwest Strategies and the TPC re-view campaigns on a weekly, monthly


and quarterly basis and also invest in both qualitative and quantitative re-search and testing, such as focus groups and surveys, at the beginning and end of each campaign. “We also perform a recall survey to ensure campaigns are working and that we are getting a good return on our investment,” says Hicks.

Because what works with diff er-ent audiences can change over time, Northwest Strategies and the TPC con-tinually revisit messaging strategies. “People were not responding to scare tactics before, but now we’re starting to see these tactics working in the CDC’s ‘Tips from a Former Smoker’ campaign that shows a man with his legs ampu-tated and a woman with a tracheoto-my,” says Tutiakoff .

“We found that our ‘Dear Me’ cam-paign, in which smokers shared a let-ter to themselves about smoking, really resonated with Alaskans,” she adds. “Smokers identifi ed with those fea-tured because they are facing the same battle with addiction; in fact, they of-ten used the tag line when calling the quit line, which was ‘No one can make me quit but me.’ It was a highly eff ec-tive campaign.”

Northwest Strategies also came up with the “Great for Business” campaign as a way to protect the public from ex-posure to secondhand smoke. TV spots, which ran for 18 months, featured tes-timonials from business owners about how their businesses had gotten better since they went smoke-free.

“Typically, when smoke-free policies come to pass, the hospitality industry is the sticking point,” says Tutiakoff . “But bars and restaurants are work-places, too, where patrons and servers are breathing second-hand smoke.” To this end, TV spots featured well-known business owners, such as Mike Gordon of Chilkoot Charlie’s and Cheryl Bren-dell of Th e Food Factory, talking about the benefi ts of running a smoke-free business, including decreased insur-ance costs, less cleaning and mainte-nance costs and happier employees.

Northwest Strategies’ current smoke-free workplace policy media campaign is called “Th e Real Cost,” geared to ur-ban residents ages 25 to 54 who typi-cally do not smoke and who are not aff ected by secondhand smoke. While their health may not be compromised,

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the multimedia campaign points out that their wallets are—to the tune of $579 million every year in direct medi-cal expenditures and lost productivity due to tobacco-related deaths.

NextUpWhile Alaska is not yet 100 percent to-bacco-free, huge strides have been made in communicating the health benefi ts of quitting, or never starting, smok-ing. Northwest Strategies has used its experiences in social marketing to cre-ate other campaigns focused on behav-ior change for clients as diverse as the Alaska Network on Domestic Violence and Sexual Assault; the American Lung Association Alaska; the Municipality of Anchorage’s Air Quality Public Aware-ness Program, and the State of Alaska’s Department of Environmental Conser-vation Air Quality Program.

Th e agency is currently using this success as a springboard to help the State of Alaska Obesity Prevention and Control Program with formative re-search and direction to support their launch of a new public health campaign addressing childhood obesity. “We’re presently working on a research and communications plan that involves message testing and analysis of similar campaigns in an eff ort to identify what is working, so it is still in the early stag-es,” says Tutiakoff . “But soon I expect that we’ll see a national trend of diff er-ent obesity initiatives looking at what tobacco programs have done in the area of public health messaging and model-ing their strategies aft er that success.”


A young man calls Alaska’s�Tobacco�Quit�Line,�increasing�his�likelihood�to�quit�for�good.

Photo courtesy of Northwest Strategies

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Devices for Devices for Devices for Doing BusinessDoing BusinessDoing Business

Mobilizing offi ces with app savvy technology

By�Mari�Gallion�

Whether you’re using BlackBerry, Apple or Android technology, or a combination of the three, devices for doing business have scaled down from the bulky

power consuming desktop computers. Mobile is mainstream. Various mobile devices are being embraced by business peo-ple across all industries.

First the BlackBerry enabled people to go mobile with email. It was the beginning of a revolution in the way business was done. People no longer were confi ned to their desks in order to conduct business or communicate with associates, colleagues and clients. Th en came the iPhone, going beyond email and introducing apps. And then the Android, combining and some say, stealing, BlackBerry and iPhone technology.

April 3, 2010, the iPad was introduced: a larger version of the iPhone (without calling capabilities), and better suited to conduct business because of its size. Th is year, the iPad Mini was introduced. All these devices need apps to operate, and apps have proliferated the market.

Mobile app downloads haven’t slowed much since the fl urry of downloads we saw at the close of 2012. In fact, the latest data from Canalys shows that app downloads climbed 11 per-cent in Q1 of 2013 (versus Q4 of 2012). According to published reports April 8, the world’s four leading app stores generated $2.2 billion in total revenue from 13.4 billion downloads in the fi rst quarter of 2013,” according to Mobile Marketing Watch.

MobileDevicesAccording to Greg Schlabaugh, GCI commercial applications consultant, their relatively low cost combined with their mo-bility has made them the preferred option for many business-es. “In some cases, tablets and smartphones have replaced the PC as the primary tool for conducting business.”

“Mobile devices have completely changed the business en-vironment, and smart companies are evolving to take full ad-vantage of the level playing fi eld they provide,” Schlaubaugh says. “A small tourism company can take credit card pay-ments via a smartphone, a sales rep can present product in-formation to their customer on a tablet, a mechanic can get access to repair guide while in the fi eld, and work groups can collaborate on projects no matter where they are.”

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Cody Keim, an agent with Re/Max Dynamic Properties, off ers several ex-amples of how his devices enable him to do business effi ciently.

“Mobile devices are invaluable to me as a real estate professional,” he says. “Th e 4G equipped Apple iPad allows me to show properties without a shred of paper. I have access to associated listing documents and MLS property history data on site and on demand, all the time. Th e mapping functions are fantastic; directing me to my next showing quickly and easily, allowing me to keep my focus where it belongs: on my clients.”

“Apple’s iPhone 5 allows me to stay in touch with my clients wherever I may be and off ers an incredibly high degree of functionality,” Keim adds. “Google’s calendar and e-mail apps make email and scheduling ‘on the go’ a breeze. Th e panoramic photo option on the iPhone’s camera allows me to take a picture of an entire room, easily messaging the image to a waiting client. Notes, voice memos and video functionality come in handy as well as I accomplish a wide range of tasks daily.”

Re/Max Dynamic Properties recent-ly got what Keim calls a “much needed upgrade” with their implementation of a lock box access system called Sentrilock, which generates lock box codes to allow or disallow access to a client’s house.

“Sentrilock off ers a high degree of remote functionality by utilizing the cellular network,” Keim says. “I can connect to a lockbox from my mobile phone or desktop PC, granting access to a Realtor, contractor or appraiser on the spot. I can use the ‘do not disturb’ function to avoid unwanted access and showings aft er a certain hour or view the lockbox’s access log allowing me to provide feedback to my seller almost immediately aft er a showing.”

BenefitsofModernDevicesAmong the benefi ts of today’s devices are reduced energy use. Compared to the 300 to 400 watt power supply for a desktop computer, mobile devices use very little power.

The most obvious benefit, of course, is their relative portability. Not so long ago, the average profes-

sional was certain to have one desk-top computer at home (and probably a desk specially designed to fit all its components) and one at work. At this time, it seems, even the laptop is cer-tain to see its denouement within the next five years.

It seems that the latest and greatest device is what’s currently being called a phablet (of which iPad Mini is one), or a miniature tablet, the nickname be-ing a portmanteau of the words phone and tablet.

Viewed by some as the best of both worlds and others as “just a phad,” many phablets, measuring approxi-mately 7 by 5 inches, are small enough to carry in a purse or pocket and are easier to read than a smartphone. Like a tablet, they can be used as a phone with the purchase of a data plan, but the main shortcoming of a phablet is that the keyboard remains a bit cramped.

AnOfficeinYourHandsTh ese days, most professionals attest that they could not live without con-stant access to their email and the con-venience of being able to add an event


to their calendar and getting a remind-er—or two reminders—at selected times before the event occurs.

According to Eric Lazo, vice presi-dent of marketing and product man-agement at Alaska Communications, more than 95 percent of small busi-nesses use mobility applications and technology to conduct their business, and what a businessperson can do on the go is growing exponentially.

“It’s not just phone calls, email or web anymore,” Lazo says. “It’s the ability to set up a truly mobile offi ce, or equip mobile workers with all of the capabili-ties and tools of their home offi ce while in the fi eld.”

No matter what line of business you are in, the following types of apps can prove invaluable to you.

� Accept Credit Cards There are several apps for every

device that can enable you to take credit cards from your tablet or smartphone, so long as you are connected to a 4G network or Wi-Fi. This can prove invalu-able if you have any sort of business that involves traveling from site to site, or a nonprofi t corporation where you need to get that donation immediately.

� Scan Documents There are also many apps that

now allow you to scan documents from your phone or tablet and save them to PDF or JPG fi les. When you search for an appropriate app, make sure to search for “scan document,” otherwise you may purchase an app that is meant to scan QR codes for items at stores to fi nd where else they are sold and compare prices. Of course, depending on your business, that may be useful as well.

� Track Time & Expenses By performing a simple search,

one can find a variety of apps that track time, expenses and mileage, and generate reports. They all differ in features, and it may take some ex-perimentation to decide which is best for your business. Although there are free options, the more tried and true of these apps, some costing up to $10, are a bit more expensive than others. However, most businesspeople agree that $10 s a small price to pay for that convenience.

� Calculate Mortgage Payments Although the more profi cient

loan offi cers and real estate agents may still prefer to prequalify clients or cal-culate mortgage payments by using the do-anything-if-you-know-the-formula HP calculator, others are glad that in this fast-paced world, they can simply use an app to get the same results. After all, not everybody wants to dedicate them-selves to the art of dressage when you can get the same results from a quick pony ride.

� Control your Desktop from your Device

Remote control has a new modern meaning: Businesspeople can now con-nect to their Mac or PC—even their desk phones—from their devices. With these apps, you need not worry about what you may have left on your com-puter at home or at the offi ce. Happily, the days of forgetting to load something on your jump drive before getting to the offi ce or meeting a client may be a thing of the past.

� Making Travel Easy No more printing up each and

every confi rmation for each leg of your fl ights on various airlines, hotel, car rental (which company did I choose this time?), and all those pesky onboard, online maps—let alone trying to drive and read them at the same time. Now you can fi nd an app that makes travel seamless, generating one itinerary for your entire trip. And rather than strug-gling with maps or sheets of paper with directions while you’re driving, you can opt for a pleasant-sounding guide tell-ing you exactly where to turn and when, and even how to get back on course if you happen to make a wrong turn. This can be extremely benefi cial to anyone who has ever missed the third exit on a six-exit roundabout, or who relies on arm length and reading glasses in order to read.

� Password Storage So, you’re expected to have a dif-

ferent strong password of at least eight numbers with at least one capital letter and two numbers for every secure site you visit—and not write them down? Yeah, right. Let’s be honest: that doesn’t happen. We either have them written

down somewhere (possibly in a pass-word book with cryptic names for each site in case of the devastating event that we lose it), or we use the same three strong passwords for everything.

Now we only need to remember one password: The password to access our devices (note: the lock feature highly recommended for those who use a password storage app). At this time, all our passwords can be stored within our phones for easy access to our accounts anytime and anywhere, except while fl ying in an airplane.

� Create Spreadsheets Let’s face it: What better things

do you have to do on that long fl ight than get down to every detail? You can now create a spreadsheet—on practi-cally any device—that can be opened by spreadsheet apps like Microsoft Excel on your PC or Mac at home or at work.

� More Specialized Business Functions

While the abovementioned apps are likely useful in practically all lines of business, more specialized apps of in-terest include: Odesk, for managing and possibly outsourcing contractors for web development, translation and other business services; Dragon Dicta-tion, for when your thoughts are too fast and too important to wait for access to a keyboard; and Bump, an app that lets you share contact information and fi les by bumping phones together (both phones must have the app installed and be ready—this prevents bumping with-out consent). There is even an app called Glassboard, in which you can create a private social network to discuss that top secret project while colleagues are spread all over the country or world, or a team can plan an elaborate event in record time (I’ve got confi rmation on a venue—have we found a caterer?).

No matter the size of your business or the plans you need to make in order to stay in business, and regardless of what brand you prefer, you and your busi-ness can clearly benefi t from the conve-nience of mobile devices.

Mari Gallion is Associate Editor at Alaska Business Monthly.

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U.S. Senator Mark Begich U.S. Senator Mark Begich announced the hiring of Heather Handyside as his new press secretary. Handyside will be based in his Anchorage, Alaska office. Handyside graduated from The American University in Washington D.C. with a bachelor’s degree in international policy and a minor in com-munications.

Anchorage Economic Development Corp.

The Anchorage Economic Development Corporation recently promoted Will Kyzer to business and eco-nomic development director and hired Archana Mishra as communications coordinator.

Prior to AEDC, Kyzer served as a prospect manager with the Iowa Economic Development Authority where he worked closely with both the local and out-of-state business communities to build relationships and implement development campaigns.

Mishra brings more than 12 years of experience working in advocacy, external relations, communi-cation and policy to the AEDC team.

Landye Bennett Blumstein The law firm of Landye Bennett Blumstein LLP announced that Leslie R. Need has joined the firm’s Anchorage office as an associate attorney. Need will focus her practice on Alaska Native Law, Civil Litigation, Corporate Law and Municipal Law. Need received her Bachelor of Science from Kansas State University and her Juris Doctor from the University of Tulsa College of Law.

Perkins CoiePerkins Coie announces Cameron (“Cam”) M . Leonard has joined the firm’s Anchorage office in the firm’s Environment, En e r g y & Re s o u rc e s practice group.

Leonard earned his Juris Doc torate from Boalt Hall, University of California Berkeley

School of Law. He received his Bachelor of Arts in History from Cornell University.

Alaska Community Foundation

Alaska Community Foundation announces the hire of four new members of their Board of Directors: Penny Pedersen, Kate Slyker, Andy Teuber, and Bill Sheffield.

In Ketchikan, Pedersen is the Executive Director for PeaceHealth Medical Center. In Anchorage, Slyker is the Executive Vice President of Client Services with the Nerland Agency, a full-service advertising agency located in Anchorage. She received her BS in marketing and English from the Carroll School of Management at Boston College.

In Kodiak, Teuber serves as the President and Chairman of the Alaska Native Tribal Health Consortium. He holds an MBA from the University of Washington.

In Anchorage, Sheffield has been a leader in business, government and public policy for most of the 56 years he has lived in Alaska. He served as Governor of the State of Alaska from 1982 to 1986.

GraniteJoe Spink has been promoted from Alaska Region Manager to the new role of Northwest Operating

Group Business Development Manager. Spink is a graduate of the University of Washington and holds a Bachelor of Science in Civil Engineering.

Derek Betts became the new Alaska Region Manager. Betts is a graduate of Oregon State University and holds a degree in Construction Engineering Management.

R&M Consultants Inc.

Clark Rosencrans has joined R&M as a Special Inspector. Rosencrans has more than seven years of experience in the construction industry, serving as a laboratory technician and special inspector for a variety of Colorado firms.

Gene LeQuire, PLS has joined R&M’s Surveying and Mapping Department as a Senior Land Surveyor. LeQuire has an Associate of Science in Survey Technology from the University of Alaska Anchorage and is a Professional Land Surveyor registered in Alaska.

Alaska Marine Stewardship Foundation

Dave Gaudet has been hired as the Director for the Alaska Marine Stewardship Foundation. As a former biologist with the Alaska Department of Fish and Game and a Bristol Bay fisherman, he brings his experience and knowledge of rural Alaska to bear on the economic and environmental effects of marine debris on coastal communities and Alaskan fisheries.

First National Bank AlaskaPerry Eaton and Lucy Mahan have joined First National Bank Alaska’s Board of Directors.

Eaton worked as a commercial lender for First National Bank Alaska early in his professional career, which included serving as founder and

RIGHTMOVES� Compiled by Mari Gallion


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CEO of the Alaska Native Heritage Center, and as an officer in various capacities at Alyeska Pipeline Service Company.

Mahan graduated from Anchorage’s West High and earned degrees from the University of Colorado and Alaska Pacific University. Mahan owns and facilitates Transitional Counseling LLC.

Anchorage Youth OrchestrasA n c h o r a g e Y o u t h Orchestras has named Guadalupe Marroquin as Executive Director. M a r ro q u in sp e nt 24 years in public finance for the State of Alaska and six years in charge of running elections for the Municipality of Anchorage.

Ahtna Netiye’ Inc.B e l i n d a N o r t h w a y -Thomas has joined the Ahtna management team as Vice President of Human Resources. Northway-Thomas has a Bachelor of Business Administration from Wayland Baptist University.

Alaska Family Wellness CenterPhysician’s A ssis tant Clara Scott has joined the medical practice at Alaska Family Wellness Center. Scott holds a Master of Health Science and grad-uated from the Physician Assistant Program at Duke University in 2001 with honors and is a certified Physician’s Assistant.

Alaska Native Medical CenterPaul Franke, M.D ., has been appointed as Chief Medical Officer at Alaska Native Medical Center.

Dr. Franke received his bachelor’s degree in phi-losophy from the University of Louisville, com-pleted graduate studies at the Emory University School of Public Health, and earned a Medical Degree at the Medical College of Georgia. He com-pleted his residency at the University of Pittsburgh Medical Center and a Business of Health Care cer-tificate program at Johns Hopkins University.

Alaska Railroad Corp.

Alaska Railroad Chief Engineer / Vice President of Engineering Tom Brooks will retire this month, and 25-year railroad project and engineering veteran Clark Hopp will succeed Brooks as head of ARRC’s Engineering Department.

Hopp earned a degree in Construction Engineering Technology from Iowa Western College and completed additional engineering coursework at the University of Nebraska.

Key BankColby J. Swenor has joined KeyBank in Alaska as a retail relationship manager at the South Anchorage branch. Swenor joined Key in 2011 and has more than seven years of financial industry knowledge and experience.

Office of Gov. Sean ParnellGovernor Parnell appointed Michael West to the Alaska Seismic Hazards Safety Commission. West holds a Ph.D. with distinction and a Master of Science from Lamont-Doherty Earth Observatory of Columbia University.

Governor Parnell appointed Andrew Craig to the Prince William Sound Oil Spill Recovery Institute Advisory Board. He holds a bachelor’s degree in natural resources-fisheries from Cornell University.

Governor Parnell reappointed Margaret Holm and Arthur Walters to the Advisory Council on Libraries.

Governor Parnell reappointed Charles Lean and appointed Kathleen Liska to the Citizens’ Advisory Commission on Federal Areas in Alaska.

G overnor Parnell reapp ointed Ronald Bressette, Gerry Hope, Joshua Howes and Daniel Kelly to the Marine Transportation Advisory Board.

Anchorage School DistrictSuperintendent Jim Browder notified the Anchorage School Board that he will retire, effective June 14, 2013. Ed Graff, the district’s Chief Academic Officer, will be the new superintendent of ASD.

The Institute of the NorthInstitute of the North welcomes Northwest Arctic Borough Mayor Reggie Joule to the Board of Directors. Mayor Reggie Joule was elected to serve as Northwest Arctic Borough Mayor in 2012. Immediately prior, Joule served eight terms in the Alaska State House of Representatives.

Chugiak-Eagle River Neighborhood Library

N a n c y C l a r k i s t h e n e w m a n a ge r of t h e C h u g ia k- E a g l e R i v e r Neighborhood Library. A life-long Alaskan, Clark has worked in a numbers of libraries in the state since receiving her MLS from Indiana University-Bloomington in 1991.

Koniag Inc.Tom Panamaroff will serve as interim President of Koniag Inc. with Ron Unger, Koniag’s Chairman, serving as Interim CEO. Panamaroff has been with Koniag for several years, most recently as President and CEO of Koniag Development Corp. Unger has served on Koniag’s Board for the past nine years and as its Chairman since October 2012.

RIGHTMOVES� Compiled by Mari Gallion


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mining

Mining projects throughout the state boost economy

By�Julie�Stricker

With gold prices continuing to hover around $1,600 per ounce, 2013 is shaping up to

be a stellar year for Alaska gold miners. It could be one of the biggest years in terms of production since 1916, with output forecast to top 1 million ounces.

In Alaska, gold traditionally has made the headlines, but the state also has large reserves of base metals such as copper, lead and zinc, as well as rare earth min-erals, according to Tom Craff ord, large mine coordinator for the Alaska De-partment of Natural Resources.

Trends overall show a slowing in-

vestment climate in mining explora-tion, he says.

“I think in general, the investment cli-mate or the availability of investment dol-lars has declined with the slowing of Asian economies, or at least the pace of growth of those economies,” Craff ord says. “Th e amount of money that was fl owing into the exploration eff orts has waned so it’s more diffi cult to raise money now than it had been two years ago. Th at translates into a reduced level of exploration.

“Nevertheless, things are good, gen-erally speaking,” he adds. “Commodity prices aren’t bad, they’re good, but they’re

not as great as they have been for awhile.” Except for gold, which is still at near-re-cord levels. Production is also rising.

BusyGoldMinesIn 2012, the state’s fi ve large gold mines produced about 870,000 ounces of gold, the bulk of which came from the huge open pit Fort Knox mine near Fairbanks and the underground Pogo gold mine 38 miles northeast of Delta Junction.

Fort Knox, a subsidiary of Kinross Gold, produced almost 360,000 ounces of gold in 2012. It expects to produce 425,000 ounces of gold in 2013, with much of the

©Judy Patrick Photography

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increase coming from its expanded Wal-ter Creek Heap Leach Facility.

It’s one example of how high gold pric-es benefi t the producers, Craff ord says.

Th e heap leach is a system in which lower grade ore is stacked and bathed in a cyanide solution that binds the gold, which is later extracted. Th e cyanide solution is then re-used on the closed-circuit system.

Th e heap leach facility was construct-ed in 2009 and has undergone several expansions. Th e mill at Fort Knox is ex-pected to continue operations through 2017, with the heap leach adding an-other few years of production.

“Mining projects—they’re constantly looking at their economics and how they can shave pennies a ton off their hauling and transportation costs,” Craf-ford says. “Th e more you can cut your costs, it lowers the cut-even grade. If you can mine or process more cheaply, what hasn’t been ore can become ore.”

Of course, fi nding another big ore body is another way to lengthen mine life, which is what happened at the Pogo, owned by Sumitomo Metal Mining. In 2012, Pogo announced the discovery of a new deposit, called Deep East, about 1,000 feet northeast of the main ore body. Deep East contains an estimated 1.2 million ounces of gold, but workers are still mapping to fi nd the true extent of the ore body, and mine offi cials are optimistic they will fi nd more. Th e dis-covery adds at least two years to the life of the mine, which had been expected to close in 2017.

Exploration of Deep East is continu-ing in 2013, with associated construc-tion projects such as a road to the deposit and upgrades to facilities and infrastructure.

Two large mines in Southeast Alaska are also upgrading facilities and plan-ning for future expansion.

Kensington Mine, owned and oper-ated by Coeur Alaska Inc., a wholly owned subsidiary of Coeur D’Alene Mines Corp., is the new big kid on the block with about 11 million ounces of gold reserves identifi ed. It is an under-ground mine that began production in 2010. Signifi cant upgrades both under-ground and on the surface, including new administration buildings, dormi-tories and kitchen facilities, were com-pleted in 2012.

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Coeur Alaska plans to spend $9.4 mil-lion on exploration drilling in 2013 and produce about 110,000 ounces of gold.

Greens Creek Mine on Admiralty Is-land is continuing exploration eff orts to add to its resource reserves. Greens Creek, operated by Hecla Mining Co., is an underground polymetallic deposit comprised of silver, zinc, gold and lead. It is one of the largest silver producers in the world; gold is a byproduct of the silver extraction process.

Hecla is in the process of expanding the tailings facility at Greens Creek, Craff ord says. Th e expansion is in the permitting process. Once completed, it would give the mine another 30 years of tailings disposal.

Th e most recent gold mine to begin production is the Nixon Fork mine, near McGrath. Th e mine operated on and off for decades and reopened in 2011 under the umbrella of Fire River Gold Corp., which operates Nixon Fork through its wholly owned subsidiary, Mystery Creek Resources.

It has a defi ned resource of about 131,500 ounces of gold, as well as cop-per. Drilling has uncovered very high-grade gold deposits, some as high as 219 grams per ton, according to Fire River Gold’s website. Work is progressing on getting the mine’s mill up to full work-ing order, Craff ord says.

ReadyingFutureMinesIn the meantime, work is progress-ing on two mines that each have the

potential to outshine the current gold-producing mines combined.

For the past several years, Internation-al Tower Hill Mines has been exploring the Livengood area 70 miles north of Fairbanks, which has already produced 500,000 ounces of gold in the past cen-tury. Th ey found more, much more.

Livengood contains more than 16.4 million ounces of potentially recover-able gold, and the exploration zones are still open, according to Rick Solie, community and government relations manager. But further exploration of the deposit will have to wait, Solie says.

“Th e gold will be there,” Solie says. Th e priority is to fi gure out how to pro-duce that fi rst ounce of gold, not to fi nd gold to produce in 25 years.

Th e project is in its fi ft h year of en-vironmental baseline studies and mine design/production schedule alterna-tives have been completed.

Little fi eldwork is scheduled for this summer, Solie says, as International Tower Hill is working on optimizing the project and preparing a feasibility study, which is due out this summer.

“We’re in that stage internally where we’re looking at the best mine design to put forward,” Solie says.

Mine offi cials say a producing mine could easily be twice the size of Fort Knox. It is one of the largest gold dis-coveries in the past 20 years.

An even larger gold prospect is lo-cated in Southwest Alaska. If all goes as planned, the Donlin Gold project, with

reserves of 33 million ounces of gold, is expected to produce 1.3 million ounces of gold annually during operations, which would make it one of the world’s largest gold mines.

Th e project is several years away from any production, but reached a milestone in 2012 aft er 16 years of plan-ning, exploration and studies when it offi cially submitted its permit appli-cations. It is owned by NovaGold Re-sources with Barrick Gold Corp. as its operating partner. Craff ord noted that Barrick was proceeding with the per-mitting process but had not yet made a commitment to development.

Th e huge, and controversial, Peb-ble project continues to work toward completion of its prefeasibility study in 2013. Th e project, jointly managed by Anglo American and Northern Dynas-ty Minerals, has the potential to pro-vide up to a quarter of the United States’ copper supply for more than 50 years.

More than 1 million feet have been drilled to delineate the ore body, which includes an estimated 55 billion pounds of copper, 67 million ounces of gold and 3.3 billion pounds of molybdenum. Peb-ble’s location near the headwaters of riv-ers feeding salmon-rich Bristol Bay has made it a target for environmentalists, as well as fi shermen and other groups.

On a much smaller scale, a gold project in the Alaska Range about 125 northwest of Anchorage is progressing. Th e Terra prospect, under development by West-Mountain Gold of Denver, could yield as much as 1 million ounces, WestMoun-tain CEO Greg Schifrin noted in an Octo-ber release. Environmental and baseline studies of the project are under way.

“Th e Terra project continues to pro-duce bonanza gold intercepts and we are confi dent that the resource will reach 1 million ounces,” Schifrin stated.

ProspectstoWatchWhile gold is making headlines, other minerals are abundant in Alaska, and Craff ord says several prospects are worth watching.

Graphite One Resources is explor-ing a potentially world-class deposit of graphite in the Kigluaik Mountains of the Seward Peninsula, about 40 miles north of Nome.

“Some of the initial things that I’ve seen are pretty interesting,” Craff ord says.

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The project is being explored by Graph-ite One Resources, formerly Cedar Moun-tain Exploration Inc. based in Vancouver, British Columbia. The Graphite Creek deposit is made up of large flakes, visible on the surface. A preliminary assessment estimates the deposit contains 164.5 mil-lion tonnes at 4.61 percent graphite.

“Based on the size of the inferred and potential resource, we believe this to be the largest reported flake graphite de-posit in the world, and look to take an aggressive approach to advancing the project towards production in the near future,” Anthony Huston, president of Graphite One, wrote in news release.

The company is planning a compre-hensive exploration program for 2013.

Graphite is used to make lithium ion batteries, which are more powerful than traditional batteries and are used in elec-tric and hybrid automobile batteries.

Farther north, NovaCopper and NANA Regional Corp. are continuing to explore the Arctic and Bornite de-posits in the Ambler District. The two formed a partnership in 2011 to expe-dite exploration.

The Upper Kobuk Mineral Projects are located in a region with known high-grade deposits of copper, zinc, lead, silver and gold. Exploration is continuing in 2013, but a report re-leased by NovaCopper earlier this year shows the combined sites have an estimated 3.3 billion pounds of ore, mostly copper, with another 1.6 billion pounds inferred. At Arctic, the aver-age ore grade is over 7 percent “copper equivalent.” The ore also includes sil-ver, lead and gold.

It is one of the richest copper finds in the world in the past decade, NovaCop-per says.

While the average grade at Bornite is lower on average, it also is a large re-source with two distinct zones, South Reef and Ruby Creek. South Reef is estimated to hold 2.4 billion pounds of contained copper at grades of 2.54 per-cent. It also holds 1.9 billion pounds of copper at grades of 3.44 percent.

Ruby Creek holds an estimated 179 million pounds of copper at 1.19 per-cent grade and another 883 million pounds at a grade of 0.5 percent.

“We are well under way to achiev-ing our objective of defining 10 billion pounds of high-grade copper in the

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Upper Kobuk, which has the potential to evolve into one of the world’s ma-jor copper mining districts,” Rick Van Nieuwenhuyse, NovaCopper’s president and CEO, wrote in the release.

Another interesting prospect Craf-ford has been watching is the Niblack project on Prince of Wales Island about 30 miles southwest of Ketchi-kan. Niblack is a copper-zinc-gold-silver deposit under advanced ex-ploration. Drilling is continuing via underground tunnels to pinpoint the extent of the deposit.

Owner Heatherdale Resources hopes to begin mine construction as early as 2015. It is currently looking for tail-ing and mill sites and plans to begin the feasibility process by late 2013. Heatherdale is looking at barging ore to Gravina Island for processing, Craf-ford says, which could have some real advantages in lowering the amount of energy needed at the mine site.

Based on the current resource esti-mate, a mine would have an estimated life of 10-12 years and employ up to 130 people.

Th e Dotson Ridge rare earth deposit is also on Prince of Wales Island south-west of Ketchikan. Th e deposit, under development by UCore Rare Metals, contains the heavy rare earth elements dysprosium, terbium and yttrium. Th ose elements are used in high-tech manufacturing such as nuclear control rods, lasers and fuel cells and have in the past been supplied mainly by China.

Rare earths are a diff erent kind of commodity than iron or copper in terms of scale, Craff ord says. While hundreds of tons of rare earths may be mined annually, the more common ores are mined and sold by the thou-sands, if not millions of tons per year. Th at makes the market more suscep-tible to dramatic swings.

“Rare earths are more of a niche market kind of thing and while in-creasingly important, the amounts of them that are used are relatively small,” Craff ord says.

Ucore says the Bokan Mountain deposits could support an entire rare earths industry in Alaska and provide a stable source for the United States.

Th e heavy metals are found not far from UCore’s Bokan Mountain ura-nium project, which contains uranium and thorium. Recognizing the potential of the rare earths, UCore split the two projects and is focusing on a fast-track production schedule for the heavy met-als, according to Jim McKenzie, presi-dent and CEO of Ucore.

UCore released its preliminary eco-nomic assessment for the project in Janu-ary, anticipating a mine startup by 2016.

“Remarkably, the PEA supports a very straight-forward mine develop-ment plan in combination with a near term production horizon at Bokan,” McKenzie says in the release. “What’s more, this aff ordable, high-return fa-cility will generate product that the US critically requires to sustain com-petitiveness in multiple high growth fi elds, including high tech, renewable energy, medical science and defense systems.”

Photo by Judy Patrick Photography

An aerial view of Pogo�Mine�shows�the�Goodpaster�River�in�the�background,�the�mill�and�processing�facilities�with�the�“blue�tube”�conveyor�belt�that�travels�up�from�the�underground�mine,�and�the�camp,�administration�and�maintenance�fa-cilities�in�the�foreground.

Julie Stricker is a writer living near Fairbanks.


construction

Eklutna, Granite Move Epic Volume of GravelEklutna, Granite Move Epic Volume of GravelEklutna, Granite Move Epic Volume of GravelMaking way for Birchwood Industrial Park

By�Wesley�Loy

The Dena’ina people are quiet by nature, says Curtis McQueen, chief executive of Eklutna Inc.

But Eklutna’s shareholders and man-agers are planning to make plenty of noise about an emerging new project, the Birchwood Industrial Park.

It’s a concept that’s been moving to-ward its debut for several years and is expected to fi ll a critical need for the greater Anchorage area. Th e need is land—ready industrial land—some-thing in very short supply.

“Th ere’s virtually no industrial land of this size in Anchorage,” McQueen says.

Th e project is in the Birchwood com-munity north of the city, situated stra-tegically between the Alaska Railroad and the Glenn Highway. Th e state-owned Birchwood Airport is adjacent to the site.

To pursue the project, Eklutna as-sembled what has proven to be an eff ec-tive partnership involving Granite Con-struction Inc., Cook Inlet Region Inc.

and the railroad. What the partnership has achieved so far is impressive.

MultipleAssetsIf you had fl own over the site in 2008 and looked down, you would have seen a gentle slope covered with trees. Beneath the trees was a thick gravel bed, depos-ited long ago by glacial action. One might have reasonably thought, on fi rst impres-sion, that the site wasn’t suitable for de-velopment with all that rock in the way.

But Eklutna and its partners saw it diff erently. In fact, the gravel is proving a valuable asset, helping to pay the cost of developing a “nice and fl at” 130-acre industrial space in a great location along one of Alaska’s most important trans-portation corridors, McQueen says.

A Herculean gravel extraction cam-paign is expected to wrap up this sum-mer—and Eklutna is gearing up to market the tract to potential tenants.

When it comes to land, Eklutna is a go-to player locally. It’s the largest

private landowner in Anchorage with 90,000 acres within the municipality, including Eagle River, Birchwood, Chu-giak, Peters Creek and Eklutna.

Eklutna is one of the many Native village corporations formed under the Alaska Native Land Claims Settle-ment Act of 1971. Incorporated in 1972, Eklutna today has 178 shareholders.

Th e Birchwood site is actually a split estate. Eklutna owns the surface, while CIRI owns the subsurface, including the gravel.

In 2009, Eklutna, CIRI and Wilder Construction, then a subsidiary of Granite, signed agreements to mine the Birchwood gravel with an eye toward preparing the site as an industrial park.

SuccessfulPartnershipIn Granite, Eklutna found a partner with the brawn and know-how to effi -ciently remove the immense volume of rock on the site. Further, the company really knew the aggregate business and

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all the products that could be made from the raw gravel.

Based in Watsonville, Calif., and publicly traded on the New York Stock Exchange, Granite has operated other gravel pits in Alaska, including at Chu-giak and Palmer.

For the Birchwood site, the plan was to mine the gravel and load it by con-veyor onto trains for transport south into Anchorage.

Right out of the ground, the Birch-wood gravel doesn’t look like the crush-er-run stuff you might see in a drive-way. It’s more like cobblestones of all sizes plus sand.

Th e mining and hauling has proceed-ed smoothly each summer since 2009, and the job is nearly done.

Th e amount of gravel removed so far is truly staggering, about 3 mil-lion tons, say Matt Ketchum and David Laster, two Anchorage-based managers for Granite.

How much is 3 million tons?Enough to fi ll 349 trains, with 86

cars in each train. Enough to pave more than 1,900 miles of two-lane highway.

Ketchum and Laster believe Gran-ite has delivered top performance on a tough job involving a lot of partners and complexity.

McQueen concurs.“Th ese guys have hit every mile-

stone,” he says.Gravel plays a vital role in Alaska

construction, and the Birchwood gravel is going to good use. During an inter-view with Ketchum and Laster, they learned by smartphone that Granite had won a street resurfacing contract in South Anchorage.

“Eklutna rock will be on Dimond Boulevard this summer,” Ketchum says.

GoodNeighborsA priority on the gravel mining opera-tion has been showing consideration for Birchwood residents.

“It’s a little bit of an oxymoron to say a gravel pit can be a good neighbor, but you can with monitoring,” Ketchum says.

Granite’s heavy equipment fl eet, lined�up,�ready�to�work.

Photo courtesy of Granite Construction Co. Inc.

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In 2010, the Resource Development Council for Alaska and the Alaska Con-servation Alliance gave Granite an award for “doing it right.” The organizations said Granite “took several extra steps to mitigate noise issues and installed water testing wells to detect any unexpected changes to water quality in the area.”

Randy McCain, a Birchwood resident active in the local community council, says residents had concerns such as how many hours per day the gravel loading would run. Generally, the project hasn’t been a problem, he says, and Eklutna is quite engaged and responsive.

“They would get a very high score as far as addressing community con-cerns,” McCain says.

TheBusinessModelFar from being an unwanted obstacle, the Birchwood gravel actually has proven key to developing the indus-trial park. The way it works is, Granite mines and markets the gravel and pays Eklutna and CIRI a royalty.

Eklutna gets its land cleared and lev-eled at no cost, with the royalty provid-ing seed money to further advance the development, McQueen says.

Exactly what configuration the site will take once the gravel is gone re-mains unclear. Will it be divided into industrial lots? Or will one or two major tenants occupy all the space?

McQueen says Eklutna won’t try to guess what users want.

“It’s market-driven,” he says. “Some-one could bring an idea to you that you never thought about.”

He doesn’t believe the site will remain an open space. He sees buildings going up on most of the acreage. Eklutna isn’t planning to target any one industry. Rather, it hopes to attract interest from the oil and gas sector, manufacturing, logistics and maybe even the military.

Certain parties already have ap-proached Eklutna, but McQueen de-clined to name names. He did say that in 2010, people with a venture known as Denali talked of using the site as a lay-

down yard for pipe. Now defunct, De-nali was a short-lived partnership of BP and ConocoPhillips created to pursue an Alaska natural gas pipeline.

Wide-OpenSpaceOne selling point is that the industrial park is expected to be covered under An-chorage’s U.S. Foreign-Trade Zone desig-nation. A foreign-trade zone is a place where companies can enjoy delayed or reduced duties on foreign merchandise.

McQueen wouldn’t venture an esti-mate of what it will cost to fully develop Birchwood Industrial Park. Eklutna will expect tenant companies to share certain development costs, he says.

Eklutna hasn’t yet chosen a contrac-tor to finish development of the site.

The corporation is looking to the Alaska Railroad to help promote the in-dustrial park.

“We’re very excited about working with Eklutna on this,” says Jim Kubitz, the railroad’s vice president for corpo-rate planning and real estate.

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It would be wonderful, he says, to have such a spacious site in downtown Anchorage, home base for the railroad and the Port of Anchorage.

Th e railroad plans to make a brochure to tout the Birchwood park, Kubitz says.

Th e site has a lot going for it, he says. First, the land already is zoned indus-trial. Th at’s big, Kubitz says. Th e site also is easily accessible via Birchwood Loop Road, which runs off the Glenn Highway at the North Birchwood exit.

Another plus is the close proximity of the railroad’s Birchwood yard, which has several sidings, or extra tracks, where rail cars can sit. A rail spur long enough to accommodate 43 cars also has been built alongside the industrial park tract. Th e spur could be of great use for park users.

Overall, the Birchwood tract is “such a good location for a customer who needs rail service,” Kubitz says. He believes the site could hold appeal for warehousing, or for managing raw ma-terials or large equipment.

Th e railroad’s own customers obvi-ously are candidates for the Birchwood

site, as are companies in Anchorage in need of more elbow room.

“I’ve actually already spoken to po-tential customers,” Kubitz says.

Eklutna preferred not to say much about its project until the gravel removal was well along, McQueen says. Now he’s thinking the company might hold a spe-

cial event toward the end of summer to showcase the Birchwood Industrial Park.

“We’re ready to tell the world we’re open for business,” he says.

Wesley Loy is a journalist living in Anchorage.

The Birchwood Industrial Park is�across�the�railroad�tracks�from�the�Birchwood�Airport.�The�last�section�to�be�cleared�is�the�few�acres�in�the�center�of�the�photo�to�the�right�of�the�largest�gravel�pile�waiting�to�be�loaded�into�railcars.

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Inc.

P A I D A D V E R T I S E M E N T

Meridian Management Inc. has been providing construction and project management services for

owners in Alaska since 1998. The com-pany customizes its services to meet the individual needs of clients, whether they have a multi-project program, stand-alone project, or a specific task within the proj-ect life cycle.

Whatever the case, Meridian provides unbiased representation to owners for man-aging their capital projects, focusing on protecting the owner’s interests and ensur-protecting the owner’s interests and ensur-protecting the owner’s interests and ensuring they are getting the value they are pay-ing for. In addition to construction phase management, Meridian handles a wide variety of preconstruction tasks, including determining the most effective delivery method, equipment planning and manag-ing solicitations for design teams and con-tractors. “We are very experienced at man-aging the critical planning phases, and we like to maintain continuity throughout the project,” said Project Manager Johnathon Storter. “Some firms substitute less-expe-rienced staff once construction starts. We don’t subscribe to that approach.”

There When You Need UsEssentially, Meridian serves as the inter-Essentially, Meridian serves as the inter-Essentially, Meridian serves as the interface for project owners who may lack the time, expertise or in-house resources to effectively manage their projects. “We’re there when you need us,” President Erik Fredeen said.

While some architectural and engineer-While some architectural and engineer-While some architectural and engineering firms provide construction management services as a sideline to their primary busi-ness, Meridian specializes in construction management. “This is what we do,” Storter explained. “You wouldn’t hire a doctor to install roofing.”

Meridian offers expertise in a diversity of Alaska industries. Its project managers have a strong grasp of technology, engineering and construction, including electrical and mechanical systems. “Although we are not the designer of record, you have to have a technical understanding of what you’re man-aging,” Fredeen said.

100 Percent AlaskanAn employee-owned corporation, Merid-ian was founded in Alaska and only works in Alaska. That’s a major benefit to clients, given the uniqueness of construction in Alaska. “Our project managers understand the unique challenges of Alaskan construc-tion, whether in rural or urban Alaska,” Fredeen said.

Meridian also has experience represent-Meridian also has experience represent-Meridian also has experience representing owners in a variety of industries and areas of government. Having extensive experience in multiple industries—includ-ing health care, telecommunications, com-mercial construction and transportation—allows the company to cater to a broad base of private and public clients. “We can man-age all types of projects,” Storter said.

Meridian recently completed work on GCI’s $88 million TERRA-Southwest project and continues to work on TERRA-Northwest, bringing terrestrial broadband to western and northwestern Alaska. It is also working on the remodel of the old Veterans Administration clinic building in Anchorage and a design|build dormitory in Bethel for Yuut Elitnaurviat. Meridian was recently notified of being the successful proposer to provide construction manage-ment services to the Matanuska-Susitna Borough on its $214 million school bond program.

Fredeen says Meridian plans to con-tinue focusing on successfully delivering projects to Alaskan clients. “Unlike most of our competition, we can honestly say we are a 100 percent Alaskan project and construction management firm,” he said.Storter adds: “We have really enjoyed our 15-year tenure in the industry. We don’t plan to dilute our focus with branch of-plan to dilute our focus with branch of-plan to dilute our focus with branch offices outside of Alaska.”

907-677-2601meridianak.com • [email protected] LinkedIn: Meridian Management Alaska

Meridian Management Inc.3940 Arctic Boulevard, Suite 102Anchorage, Alaska 99503

Alaska Project Management Firm Turns 15

Meridian Management Inc.BusinessPROFILE


Kipnuk in Western Alaska. Three-and-a-half�miles�of�the�Kipnuk�boardwalk�will�be�replaced�this�summer—anticipated�labor�will�be�resident�hires�trained�by�the�Bethel�Regional�Construction�Academy.�

© Nichelle Seely

construction

Alaska Construction Academies: Alaska Construction Academies: Alaska Construction Academies: Building a WorkforceBuilding a WorkforceBuilding a WorkforceBuilding a WorkforceBuilding a WorkforceBuilding a Workforce

Empowering employers and students alike

By�Mari�Gallion

Most people don’t need a statis-tician to show them that our prevailing economic climate is

changing. While 25 years ago it was be-lieved that a bachelor’s degree was a tick-et to fi nancial stability and a graduate degree guaranteed riches, the parents of today’s students have seen enough fl uc-tuations in the economy to know that to stay above water in changing times re-quires diversifying one’s skill sets.

Along those lines, employers are see-ing that many people entering the work-

force, including college graduates, are lacking work skills as basic as punctu-ality, communication, and assuming a subordinate role in a chain of command.

Alaska Construction Academies is a benefi cial resource for students who would like a career in the trades as well as employers who are seeking trained and qualifi ed local workers. Th e pur-pose of the Academies is for agencies to combine resources to attract and thor-oughly train both young people and adults and connect them to fi rst jobs in

construction and trade apprenticeship programs.

According to Kathleen Castle, ex-ecutive director of AkCA, labor mar-ket data shows that more than 1,000 new construction workers are needed in Alaska each year for several years to meet construction job growth and to replace retiring workers, and AkCA has designed programs to help ensure that their graduates are labor-ready.

Data from a 2010 survey conducted by the Construction Education Foun-


dation shows exactly what qualifi ca-tions Alaskan construction companies are looking for in their employees that go beyond constructions skills: Math skills (including math that directly relates to the construction industry), reading comprehension, blueprint reading, punctuality, work ethic, clean driving record, great professional com-munication skills and the importance of a good attitude—attributes that have become part of the AkCA curriculum.

Best of all, pending application, in-terview, selection and drug screen, the classes at AkCA are off ered at no cost to the student. As space is limited, only the best applicants are accepted and graduated. Employers who hire gradu-ates of the AkCA can know they are get-ting the cream of the crop.

What?How?According to the AkCA website, “In 2006 the Legislature awarded a $1M grant to the Anchorage School District and the Alaska Works Partnerships Inc. to imple-ment the project, with the goal of serving 200 youth and adults within the year.”

Th us, Alaska Construction Academy was the result of the combined eff orts of ASD and AKWP, as well as Associ-ated General Contractors of Alaska, Anchorage Home Builders Associa-tion, Alaska Department of Labor and Workforce Development, and Cook In-let Tribal Council.

Within six months of their 2006 founding, the program surpassed their original goals, with more than 450 stu-dents taking construction vocational courses, and more than 150 adults tak-ing basic skills courses for a specifi c trade, including carpentry, electrical, plumbing, drywall fi nishing and weld-ing. AkCA earned various grants to keep this extremely successful program going and expanding. In fall 2007, a second academy was established in Fairbanks—and subsequent years saw academies established in Juneau, Ke-nai, Ketchikan, and the Mat-Su Valley. At this time, AkCA is in eleven loca-tions across the state, now including the Bethel region, Kodiak, Nome re-gion, Bristol Bay and Kotzebue.

Signifi cant partners of local acad-emies are the school districts and Uni-versity of Alaska campuses in the re-spective academy locations.

MeetingEmployers’NeedsAccording to the 2010 CEF survey, 44 Alaska construction respondents were planning for a signifi cant workforce expansion, and nine were planning for a facilities expansion in the next year. Skills cited as needed by these compa-nies for full-time employees were con-struction laborers, carpenters, equip-ment operators, painters, plumbers, electricians, HVAC installers, dispatch-ers, roofers, insulators and certifi ed as-bestos and abatement workers.

In Alaska, the majority of new hires traditionally occur in April, May, and June—but the Alaska Construction Academy takes applications year-round.

According to Castle, the market is currently in need of diesel mechan-ics and heavy equipment operators, and there has been an uptick in vari-ous renewable energy projects, includ-ing wind turbine installation. AkCA is modifying its curriculum to meet the new job market needs.

“We’re going to be doing a pretty ex-citing pilot program housed at the Fair-banks Pipeline Training Center,” Castle says, “and it will include some heavy equipment operation, and also some maintenance and repair.”

Josh Sundstrom, president of Willow-Ridge Construction LLC in Anchorage, has hired a total of nine people from the AkCA, and describes his experience with the graduates as “positive across the board.”

“Th ey have all been eager, and ready to work,” Sundstrom says, “which is more than I can say for some of the people I’ve hired over the years.”

“In general, the graduates are young people who have a desire to pursue a ca-reer in the construction trades,” he con-tinues. “Th is tends to foster a healthier than average attitude toward their job, which results in higher productivity, reliability and job site morale.”

“Th e best evidence of that is the fact that my current shop foreman is a young man named Justin Rhoades,” Sundstrom says. “He was my very fi rst KCC hire, and also happens to be the longest standing employee of Willow-Ridge Construction. As they say, ‘the proof is in the pudding!’”

Early in May, the Bethel Regional Construction Academy will be con-

ducting a training for fl agging and OSHA 10, and Castle is confi dent that their students will be selected by an Oregon contractor for a 3.5 mile board-walk installation project in Kipnuk.

AbouttheStudents“At high school level, more than 4,000 students go through classes,” Castle says. Popular classes include weld-ing, carpentry, electrical, masonry or weatherization. “Th e high school classes are a semester long, and we of-fer classes aft er the regular school day, which is very popular.” About 20 per-cent of those students are seniors ready to enter the workforce.

Th e Academy also off ers intensive aft er-school and weekend courses. “It’s great,” Castle says, “that we have so many enthusiastic kids who are willing to give up their free time to take an in-tensive class.”

“We have about 400 adults who take classes each year, and the huge major-ity of them are looking for work,” Castle says. “Th ey might be looking at con-struction for the fi rst time, they may be looking at re-training—they might be someone looking for something to do right now.”

UserFriendlyforStudentsandContractors

For prospective students interested in taking classes at one of the academies, the application process is simple: Find the academy location nearest you, click on your location, click whether you are an adult or a student, and fi ll out the application materials. Applications are accepted year-round on the website, alaskaca.org.

Employers are encouraged to contact the regional academies or Castle at 907-770-1826, or [email protected] for access to hundreds of entry level Alaskan construction workers.



construction

Natural Gas Pipeline Construction Planning Natural Gas Pipeline Construction Planning Natural Gas Pipeline Construction Planning Several variables keep an important project on hold

By�Rindi�White�

Fairbanks residents pay more than twice what Southcentral natural gas consumers pay to heat their

homes. Southcentral Alaska consumers are poised to get a shocking price in-crease when Cook Inlet natural gas sup-plies are no longer able to meet demand and gas must be imported to Alaska, an event predicted to happen in 2015. Bush communities are forced to pay even more—sometimes up to 70 percent of their income—for energy than almost anywhere in the nation.

In short, many Alaskans are facing an energy crisis or are already in the mid-dle of one. And although a commercial gas line to export natural gas being pro-duced but reinjected on the North Slope has been in the works for several years,

it doesn’t appear the line is any closer to reality—and even if built, it’s question-able whether communities could tap into the line for their own use.

Enter the Alaska Gasline Development Corp. Created in 2010, AGDC is a state cor-poration tasked with developing a natural gas pipeline that will deliver North Slope gas to as many communities in Southcen-tral and Interior Alaska as possible.

“We report to the Legislature and to the governor’s offi ce,” says Leslye Langla, public aff airs director for the corpora-tion. To date, AGDC has received $72 mil-lion from the Legislature, money Langla says has been used to study whether the project is feasible and to begin work on permitting and environmental testing. Langla says the corporation estimates it

will take about $400 million to get the project to the construction phase.

Th e project would build a natural gas pipeline from the Prudhoe Bay to the EN-STAR distribution system located near Point MacKenzie in the Mat-Su Borough. Langla said “lean gas” or gas ready for consumer use and propane is included in the latest pipeline model. Th e natural gas liquids, or chemicals such as meth-ane, ethane, propane and butane that frequently are produced along with pure natural gas, will have been removed be-fore entering the pipeline at a $1.7 billion gas treatment facility. AGDC determined the natural gas liquids are not economi-cal to ship, as there is a glut on the market due to the Lower 48 shale gas boom. Pro-cessing upfront, Langla says, will allow

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communities access to natural gas with-out having to pay high costs associated with extraction plants along the pipeline.

“Communities won’t need expensive straddle plants anymore,” she says. “Nenana and Talkeetna could get gas—as could any community that wants to build out an infrastructure.”

And while residents in Fairbanks are currently paying about $26 per million British thermal units or btu for heat-ing fuel, Langla said AGDC’s studies estimate gas could be delivered to Fair-banks for between $8.25 and $10 per million btu. In Anchorage, where prices are low due to existing Cook Inlet natu-ral gas supplies, consumers pay about $9.50 per million btu.

“We believe we can get it there for be-tween $9 and $11.25 per million Btu. Th e tariff numbers are certainly reasonable and for a long-term energy solution, we believe it’s a good scenario,” Langla says.

Can’tBuilditQuicklyEnoughAt press time, Th e Alaska Legislature was considering House Bill 4 that relates to the pipeline. If passed, the bill would do three critical things: it would ensure on-

going funding for the Alaska Gasline De-velopment Corp.; would establish AGDC as a standalone public corporation so it can enter ownership and operating part-nerships and could issue revenue bonds; and would give the state contract carrier status so project fi nancing and other as-pects of the project can move forward.

If that bill passed and AGDC is able to proceed along its established timeline, North Slope gas could be piped into Fair-banks and Southcentral Alaska by 2019.

Th at might not be soon enough for some Fairbanks businesses, which are al-ready feeling the crunch of a limited nat-ural gas supply and steep energy costs.


“For fi ve years we’ve been suff ering from high energy prices. Th is town is at a break-ing point,” says Jon Cook, chief fi nancial offi cer for Airport Equipment Rental, a company based in Fairbanks with offi ces in four other Alaska communities. AER has about 125 employees, Cook says.

Cook says high energy prices in Fair-banks make it diffi cult to retain good employees. A few employees that work with the company on the North Slope have relocated to out-of-state homes during their off periods, he says.

“We haven’t lost them as employees, but the state has lost them as residents,” he says.

But there’s an even more pressing reason Cook supports the in-state gas line. His company has a real estate de-velopment side that is working to close a deal to bring in three large retailers—but the project is being delayed because of the limited natural gas supply.

Retail box stores generally use gas-fi red rooft op units to heat and cool their build-ings, he explains. His company is cur-rently negotiating with three stores, which would build more than 250,000 square feet of new retail space in Fairbanks. Th e proj-ect would mean 300 construction jobs and

nearly that many long-term retail jobs. But the project can’t move forward unless his company can prove enough natural gas is available to supply the new stores.

“If we don’t have something within the next two to three years, these projects are going to go away. Th at’s really the corner we’re backed into here; we have dozens of acres of raw land whose highest and best use is retail development, and that development, one of its contingencies, is the supply of natural gas,” he says.

While the in-state pipeline is too far off to meet Cook’s timeline, he and other Fairbanks residents hope another project will provide a stop-gap solution: trucking liquefi ed natural gas from the North Slope to Fairbanks. As part of that $355 million project, natural gas would be liquefi ed in a to-be-built facil-ity on the North Slope, and then carried in tanker trucks to a distribution system serving Fairbanks and the surrounding communities. If Senate Bill 23, the mea-sure allowing Alaska Industrial Devel-opment and Export Authority funding for the project, moves forward, trucking could begin as early as mid-2015.

“Th e trucking solution is not a long-

term solution but a stop-gap,” Cook says. “It’s a bridge to HB 4.”

In-StatePipelinevs.CommercialPipeline

A commercial natural gas pipeline has been promoted since the federal Alaska Natural Gas Transportation Act was passed in 1977. A pipeline through Canada was seen as the best use for North Slope produced natural gas.

Although the project languished for several years, the Alaska Gasline In-ducement Act, or AGIA, reenergized it in 2007. A proposal by TransCanada and ExxonMobil was selected in 2008 that would build a pipeline down the Alaska Highway to connect with the existing pipeline grid.

Th e project, according to the Offi ce of the Federal Coordinator for Alaska Nat-ural Gas Transportation Projects, is on hold following “an unsuccessful open season that began in 2010 and sought shipper commitments to use the pipe-line.” According to the offi ce, Trans-Canada and ExxonMobil teamed with ConocoPhillips and BP to study a natu-ral gas export project that would fi rst

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Photos courtesy of Alaska Gasline Development Corp.


Rindi White is a freelance journalist living in Palmer.

liquefy the gas before shipping it. Fur-ther plans have not yet been announced.

Rep. Mike Hawker, a Republican law-maker who represents Anchorage in the Alaska Legislature and is a primary sponsor of House Bill 4, says the bill aims to get gas moving to Alaska communi-ties that need it, but it doesn’t rule out a commercial pipeline through AGIA.

“HB 4 is not about AGIA, it’s not about competing with the AGIA lan-guage. It’s all about how we get a pipe-line moving,” Hawker says. “It’s a com-plete framework for the State of Alaska to have a strong seat at the table for any project that is developed, and moving forward—including AGIA.”

Valdez city manager John Hozey calls the idea that the two projects could be rolled together “disingenuous.”

“Th at’s not what’s being debated on the fl oor of the Alaska Legislature right now,” Hozey said in March.

Hozey and the city of Valdez are be-hind an eff ort to kill House Bill 4. Th e city plans to spend between $700,000 and $900,000 in an advertising cam-paign to kill the bill and, if possible, push for a commercial pipeline instead. He called the in-state pipeline aimed at sup-plying gas to Alaskans “a dangerous proj-ect” that will cut potential future revenue from a commercial North Slope gas line.

“How many pipelines is Alaska going to build?” Hozey asks. “If this low-vol-ume line goes forward under AGDC, it’ll rip away any chance we have of building the right pipeline in the future.”

Hawker says he believes in the bill be-cause it provides a framework to get a gas pipeline from the North Slope to the population centers of Alaska, whether or not that happens in conjunction with the producers affi liated with AGIA. Th is bill is focused on getting natural gas to Alaska residents who need it in the near term, but it could grow from there.

“(HB 4) empowers AGDC to not only pursue the backbone project, which gets the main pipe from the North Slope to the southern communities—as importantly, it empowers AGDC to pursue other options and expansion-type projects that would connect Alaskans wherever they are in the state with that gas,” Hawker says.

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Testing wells in the Arctic with new equipment

By�Mari�Gallion

special section Oil & Gas

Last December, Expro, a leading international oilfi eld services company, unveiled their new Arc-

tic Mobile Well Test Units, three fully portable and self-contained production facilities that are capable of well test and cleanup operations, at an event at the Dena’ina Civic and Convention Center in Anchorage. Th e future has arrived.

Although they may not be extremely visible to people not in the oil and gas industry, the company is no newcomer to the scene: Expro has been a leading provider of well testing services and completion fl owbacks—both onshore and off shore—for more than 30 years, with signifi cant strengths in subsea wells and high fl ow rate gas wells.

Pioneer Natural Resources Alaska Inc. currently has one of the units in

use. According to Tim Crumrine, se-nior staff completions engineer for Pio-neer Alaska, “While a trailer mounted unit is really nothing new and has been used on the North Slope for years, Ex-pro local shop custom built the trailer mounted well testing unit to Pioneer’s specifi cations and we have been more than pleased with the quality and ser-vice around this particular unit.”

Th e new well test units are designed to simplify and streamline the pro-cess of well testing by diminishing or eliminating the need to mobilize sev-eral pieces of equipment that are tradi-tionally transported to the well site in multiple pieces on several trucks and require extensive rig up times.

According to Otto Jaschke, Expro’s product line manager for North Amer-

ica, with these units performing well testing, “Th e rig up and rig down time is reduced radically, because all the dif-ferent components that are required to perform a fl owback or a well test, with the exception of just one or two things, are all inside that unit. So you don’t have to go out with multiple pieces of kit and then connect them all with pip-ing. Everything is in that one unit and is already made up and tested, so the rig up and rig down occurs very rapidly compared to the other scenario.”

Th is also reduces the need for client provided well support. Th e mobile units are designed to save money and time, especially for exploratory wells—and the people at Expro are quite optimistic that their new units will one day be a common sight on the North Slope.

Expro provides qualifi ed well testing�staff�to�operate�the�mobile�well�test�units.

Photo courtesy of Expro

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TheDesignTh e mobile unit is a single trailer with a high pressure manifold, separator, data acquisition lab and utilities onboard, and is accompanied by a small pipe-work trailer that allows for an effi cient rig up by minimizing the movement of large equipment and post rig up in-strumentation checks. Additional items specifi c to a project, such as fi restack, tanks, scrubbers or heaters, can be made available upon request.

According to Jaschke, “If our clientele has specifi c desires in terms of what we provide that are not possible with the unit as they stand today, then they are designed such that very rapid simplistic retrofi ts would meet any client’s request that was reasonable at all. Th at was part of our design criteria.”

According to its website, “Expro has operational bases across the world and has developed an unparalleled track record for delivering tailor-made solu-tions to meet the challenges faced by our customers.” With Alaska’s harsh conditions and hard-to-reach areas, it does indeed seem that the Arctic Trail-er Mounted Well Test Package is tailor made for Alaska.

One characteristic that makes these units particularly suited for Alaska’s con-ditions is that they provide a warm en-vironment for the work to be performed.

According to Jaschke, the units are “Arctic enclosed, which is to say that the vast majority of any work that a human being would be doing would be inside in an enclosed, contained environment that is insulated from the outside. So they are able to work in very comfort-able conditions—they don’t have to go in and out to perform the work.”

Since the units are trailer-mounted, there are some limitations to their use: Naturally, they can only be used for on-shore operations that are relatively eas-ily accessible by road.

“Th ey are light enough that they are substantially under the minimum ice road weight limit,” Jaschke says. “As long as you have a road to take them to where they need to be then you can get them there.” But as Jaschke warns, you can’t go off -roading in them.

Despite this limitation, they are more than ideal for certain scenarios: for com-panies that have “repetitive work,” that is, multiple wells to test that would re-

Expro’s Arctic Mobile Well Test�Units�were�unveiled�at�an�event�at�Anchorage’s�Dena’ina�Center�in�December.�

Photo by Mari Gallion

DELIVERING EXCELLENCE

alyeska-pipe.com

Alyeska has safely and successfully moved more than 16 billion barrels of oil through the Trans Alaska Pipeline System.

It’s an accomplishment that is not only meaningful to our employees, but to all Alaskans.

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Since 1977


quire several rig ups and rig downs; and in situations where the client wants or needs to have a smaller footprint at their site, such as the Oooguruk Drill Site. In such a situation, Jaschke says, this unit would be of interest because everything that is needed is all in one place, rather than scattered around the site.

Two of the three units are currently being used year-round on the North Slope, and Jaschke surmises that all three units will be busy with work on the North Slope within a year.

ACultureofQualityExpro provides all the staff to operate the units, which makes for an easy in-and-out service.

“We say to the client, please make it clear to us exactly what you want us to do on your site,” Jaschke says. “Then we make a proposal of what, if anything else, might be needed in addition to the unit, (such as) how many people to safely conduct the operation. We’ll give them a quote and then we’re off and running. Upon completion of the job, we break down and we give the client the answer product, which is the infor-mation about the flow of their well.”

In order to fulfill Jaschke’s expectation that all three of the current units will have year-round production mode work on the North Slope, the units need to be staffed with qualified and committed individu-als, preferably Alaska residents, who are mechanically or electrically inclined.

“Well testing is a bit like being a fire-man,” Jaschke says. “When the alarm sounds and it’s go-time, we suit up and we’re down the pole, so to speak.” With the units being on-site year-round, they will naturally have a rotating staff so the company’s valued employees will enjoy a balance of work and life—and it is easier to respond quickly to the clients’ needs with a staff that lives in-state rather than the Lower 48.

The top tier of these employees will have experience in well testing, or will have degrees in engineering or petro-leum technology. However, Expro will be seeking trainable staff for various duties.

According to Jaschke, Expro is par-ticularly fond of hiring ex-military. “They have a knowledge and respect for the chain of command, are well-man-nered and understand the necessity of getting the job done,” he says.


“We prefer to promote from within,” Jaschke says, “because we put a heavy value on training and safety.”

Exactly what these employees do can be explained in four steps: First, they contain the well. Second, they separate the well’s effl uent into its component parts: oil, gas and water, while removing the solids. Th e third step is to measure the fl ow rate of those component parts, taking samples of what’s fl owing so that a pressure volume temperature analysis can be performed. Finally, the team has to dispose of these component parts in an environmentally responsible man-ner. Th e answer product, that which the client seeks, is the data from these tests.

“A lot of people have to be doing the right thing at the right time for all of this to happen,” Jaschke says, stressing the importance of committed, safe and well-trained employees as part of Ex-pro’s corporate culture.

“At Expro, we also off er engineering support services. So we can take that data and give the client the only opin-ion they choose to seek, if they are a smaller client—or a very special second opinion if they are a larger company.”

Whether more similar units will be built is of course driven by the market, but Expro is ready to make sure that these or any future units will be exactly what the client wants.

“We see the units to be the technol-ogy of today,” Jaschke says. “Th e way they are designed, as tomorrow’s tech-nology evolves, those units will evolve in like fashion.”


The Arctic Mobile Well Test�Unit�can�be�transported�from�site�to�site.

Photo courtesy of Expro

The source of great accomplishments.

BP salutes the dynamic spirit of the

people of Alaska.

Alaska Energy

alaska.bp.com


Royal Dutch Shell’s Bioacoustics Program: Royal Dutch Shell’s Bioacoustics Program: Royal Dutch Shell’s Bioacoustics Program: Royal Dutch Shell’s Bioacoustics Program: Royal Dutch Shell’s Bioacoustics Program: Royal Dutch Shell’s Bioacoustics Program: A Whale of a Study A Whale of a Study A Whale of a Study A Whale of a Study A Whale of a Study A Whale of a Study

Documenting effects on marine animals from offshore operations in Beaufort and Chukchi seas

By�Vanessa�Orr


According to a 2008 study by the U.S. Geological Survey, approxi-mately 90 billion barrels of re-

coverable oil and one-third of the world’s natural gas may be found in the Arctic. With estimates like this, it is no wonder that the oil and gas industry has been in-creasing its activities and investment in this remote region at a very rapid pace.

However, as interest in the area grows, so does the concern for its fragile ecosys-tem. In addition to the need to protect a diverse number of marine mammals ranging from bowhead whales to harbor

porpoises to Pacifi c walruses and spotted seals, it is also imperative that explora-tion and drilling activities not adversely aff ect the In~upiat and Siberian Yupik Eskimos who depend on these species to support their subsistence lifestyles.

To this end, Royal Dutch Shell has implemented one of the most compre-hensive marine mammal monitoring and mitigation programs ever attempt-ed, unmatched in its scope and its mix of diff erent technologies. Th e program, which is taking place in both the Beau-fort and Chukchi seas, is designed to

collect baseline information on the distribution of marine mammals and to help the industry understand the cumulative impacts of operations con-ducted in the region by multiple opera-tors. Data collected also allows the in-dustry to mitigate impacts in real time.

“Th rough this program, we are gaining a lot of very useful insights into the details of sounds generated by industry activi-ties,” explains Michael Macrander, Shell Alaska environmental lead. “A pleasant surprise that we found this year is that active drilling itself is pretty quiet relative

Deploying a DASAR from the�deck�of�the�R/V�Norseman�II.

© Sheyna Wisdom, courtesy of Olgoonik Fairweather LLC


to other things; however, some things that we had not thought of as loud were a bit louder than originally thought.”

According to Macrander, this infor-mation is used to promote dialog with-in the industry and with local commu-nities so that oil and gas companies can better target their activities. “It shows the industry what to focus on in terms of mitigation measures; for example, it doesn’t make sense to invest in quieting technologies for drilling if that doesn’t provide the biggest payoff ,” he explains.

“It also allows the industry to fi ne-tune mitigation measures with respect to those who live the subsistence cul-ture,” Macrander continues. “We can address their concerns about noise and what they believe needs to be quieter. Th ese informed discussions can help us better focus our eff orts.”

BeneficialStewardshipAccording to Christopher W. Clark, direc-tor of the bioacoustics research program at Cornell University, who has been actively involved in charting bowhead whale mi-gration in the Arctic since the 1980s, this increased stewardship of the environment is benefi cial to everyone involved. “In ear-lier years, it was sort of like the Wild West in that the search for hydrocarbons and resources drove everything, as opposed to gaining a better understanding of what the impacts of these activities were on the health of the Arctic ecosystem,” he says. “Now, there is a consortium of industry people trying to get answers based on the science of the Arctic. Th ey are using the same world-class standards that they use in business planning, technology and risk assessment when looking at questions of environmental impact.”

According to Clark, the benefi ts of this scientifi c data may extend not only to the Arctic, but beyond Alaska’s shores. “It’s a phenomenal piece of work; the kind of work that opens up a whole new vista into the dynamics of the Arc-tic Ocean,” he says. “Th ings in the Arctic are changing so fast; faster than we can measure. In the last 13 or 14 years, there has been a huge increase in industry in-terest and investment in exploring for and extracting hydrocarbon resources. And we need to know what it means to have an increase in the background noise level by 100-fold, or what eff ect a certain number of decibels has on ani-

Preparing a DASAR prior to�deployment.


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mals over a certain period of time. Th is study can not only determine what this means for life in the Arctic, but in other places like the Gulf of Mexico. What are the potential risks imposed by the things that humans do?”

Three-ProngedApproachScientists are taking a three-pronged approach to accumulate the most accu-rate data. Information is gathered from seismic source vessels and other support vessels by teams of marine mammal ob-servers that include both biologists and Inupiat personnel who perform round-the-clock visual monitoring. Th ere are also aerial overfl ights that document the species and number of marine mam-mals as well as record environmental observations such as cloud cover, wind speed and outside air temperature.

Th e last leg of the study is the acoustic portion. In the Beaufort Sea, directional autonomous seafl oor acoustic recorders are used to triangulate on bowhead whale calls specifi cally by giving bearings to bowhead vocalizations; the location of the vocalizations is computed when the same vocalization is detected by multiple DASARs in the array. Th is information is then used to create maps that provide animated pictures of how the whales are moving during the fall migration.

In the Chukchi Sea, Shell and its col-laborators have been deploying a broad network of seafl oor recorders since 2006. Th is array is focused more broadly than the DASARs in the Beaufort Sea to detect and collect distribution and area usage data on multiple species including bowhead whales, beluga whales, Pacifi c walrus and bearded seals.

Th is three-pronged approach is impor-tant for a number of reasons. “Th e three legs of the stool are all important because multiple sources of information help to fi ll in the gaps; you’re not relying on just one set of senses,” says Macrander. “Each approach has its own strengths and weaknesses. In acoustics, for exam-ple, one weakness is that sounds can be masked. If there’s another noise source, like a big storm or industry activity, it can make marine mammal vocalizations harder to hear, which changes the base-line. Similarly, if there is glare on the wa-ter or a sea state comes up, it is harder for observers to see what is going on.”

ChangingTimes,ChangingTechnology

While this particular bioacoustics study began in 2006, it was built on years of scientifi c experience in the Arctic. And as times have changed, so has the technol-ogy. “Hydrophones, which are basically microphones working underwater, have been around since the Second World War,” says Macrander. “Th e data capture format used to be tape, then in the mid-2000s, investigators started to use hard drives, but we had issues with them crashing. Now we use something similar to a whole bunch of thumb drives, which are better because there are less moving parts.”

Instead of having the data analyzed by individual scientists, Shell also chose to invest heavily in computer-assisted analysis and call detection to analyze the up to 15 terabytes of data collected each year. To date, Shell has collected between 100 and 150 terabytes of acous-tic data, which are being shared with the Alaska Ocean Observing System.

“Th us far, the environmental studies data is an approximately $72 million dataset that will now be available to the broader scientifi c community,” ex-plains Molly McCammon, executive di-rector, AOOS. “Anyone who would like access to the data can request it, and AOOS will grant them access. Th is way, we can track who has interest in the data and provide assistance as needed.”

AOOS is currently working with the National Oceanic and Atmospheric Ad-ministration’s National Oceanographic Data Center to establish formal proce-dures for additional federal archiving. “With this environmental science data, NOAA will be better equipped to provide

Deploying a DASAR near the�ice�edge�in�the�

Beaufort�Sea.




energy companies, mariners and Alaskan coastal communities with an enhanced scientifi c foundation to better support eff ective decisions and safe economic op-portunities in a fragile and rapidly chang-ing area,” says Scott Smullen, NOAA spokesperson. “Th is data will better allow NOAA to model physical oceanographic processes that infl uence sea ice formation and retreat, as well as how ocean temper-ature and mixing can force changes in the food web between predators and prey in the marine environment.”

DifferencesinFocusShell’s ongoing bioacoustics program was initiated in 2006 and became year-round in 2007. In the Beaufort Sea, the study is predominantly run by Shell, the primary leaseholder in the area. In the Chukchi Sea, the study is led by Shell in collaboration with ConocoPhil-lips, GXT (now ION) and Statoil, among others. Diff erent vendors and contrac-tors are employed in each area with a subtly diff erent focus of investigation.

“In the Beaufort Sea, our primary focus is on the bowhead whale and the fall bowhead migration,” explains Macrander. “In late August, September and October, a parade of approximate-ly 10,000 to 13,000 bowhead whales migrate westward at distances 15 to 20 miles off shore, drawing subsistence hunters from Kaktovik, Nuiqsut and Barrow. Th ere is concern that industri-al activities may displace these whales or change their migration route, mak-ing them less available to subsistence hunters. Investigating this possibil-ity is a primary focus of our Beaufort study program.”

In the Chukchi Sea, the study includes bowhead whales but is also focused on the other marine mammal species that occur there, including Pacifi c walruses, beluga whales and four diff erent types of seals. “In the Chukchi, there are more species in a larger area, so we are less focused on the migration pattern,” says Macrander. “We are looking for a more broad scale understanding of where these animals are, the ‘sound’ footprint of the industry, and how the animals are reacting to that.”

AN ALASKA MINING PROJECT COMMITTED TO: • LOCAL HIRE

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Alyeska’s Pipeline OverhaulAlyeska’s Pipeline OverhaulAlyeska’s Pipeline OverhaulAlyeska’s Pipeline OverhaulAlyeska’s Pipeline OverhaulAlyeska’s Pipeline OverhaulA troublesome project to upgrade pump stations lumbers toward fi nish line

By�Wesley�Loy


For several years now, the owners of the trans-Alaska oil pipeline have been working to transform

the state’s most valuable asset.Known as “strategic reconfi gura-

tion,” the project involves rebuilding the pipeline’s main pump stations to make them more effi cient and less labor-intensive.

It’s been an incredible challenge for Alyeska Pipeline Service Co., the An-chorage-based oil company consortium that runs the 800-mile line.

Th at’s because the work had to pro-ceed while keeping millions of barrels of North Slope crude oil fl owing.

“It’s like trying to repair the engine while you’re fl ying the plane,” says Mike Joynor, Alyeska’s senior vice president of operations and maintenance.

While major elements of the project are now done, strategic reconfi guration has been a troublesome undertaking.

Th e project has cost far more, and taken far longer, than the pipeline owners ever intended.

Th e state, as part of a regu-latory fi ght with the owners, argues Alyeska simply went about strategic reconfi gura-tion the wrong way, and that the project “remains a work in progress and is not sched-uled to be completed until December 2014, at the earliest.”

Alyeska points out that strategic reconfi guration is the largest project along the pipeline since its original construction in the 1970s.

“Th at is not to say that everything went as planned,” the company says. “Among other things, labor and ma-terials shortages led to delays and es-calating costs; a signifi cantly greater amount of work needed to be done in a ‘brownfi eld’ operating environment

than had been anticipated; and the lead contractor failed to deliver the leadership per-sonnel and engineering staff -ing it had promised. Th e re-sult, simply stated, was that the project cost more than originally projected and took longer to complete.”

PipelineisLifelineIt’s hard to overstate the importance of the pipeline to Alaska’s economy.

Since startup on June 20, 1977, more than 16 billion barrels of oil have fl owed down the line, enriching the state far beyond what gold or fi sh or furs ever did. And the pipeline fi gures to carry prosperity for some time yet.

Th e owners include the major oil pro-ducers on the North Slope: ConocoPhil-lips, BP and ExxonMobil. Chevron also owns a small share.

An aerial view of Pump�Station�

1�in�the�dim�winter�light�of�

the�North�Slope.

Photo courtesy of Alaska Department

of Environmental Conservation

Mike JoynorMike Joynor


Natural resources continue to be the cornerstone of Alaska’s economic

development and diversification. AIC is proud to provide our Alaska-based

construction expertise to the resource development industries.

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A L AS K AI N T E R S TAT EC O N S T R U C T I O N

Original pipeline construction be-gan in April 1974 and was completed in June 1977 at a cost of about $8 billion. At the time, it was the largest privately funded construction project in history.

Even today, the pipeline stands as a marvel of engineering. Th e pipe, 48 inches in diameter, crosses three mountain ranges, dozens of rivers and streams, and lands that can shake vio-lently with seismic activity.

Nearly a dozen pump stations were built along the line to push the crude toward the tanker port at Valdez. Over the years, several pump stations have been taken out of service as the volume of oil has declined. Th roughput peaked at more than 2 million barrels per day in 1988, but today averages under 600,000 barrels.

By the late 1990s, Alyeska saw issues it needed to address, such as aging equip-ment, the declining throughput and ris-ing per-barrel costs. Th ese costs were “among the highest in the industry.”

RetoolandAutomateOne of the biggest opportunities for cost cutting was operations staffi ng.

Many North American pipelines op-erate by remote control, but the pump stations on the Alaska pipeline required staffi ng around the clock. Most stations needed from 40 to 130 people.

In early 2004, the pipeline owners sanctioned, or approved, the $242 mil-lion strategic reconfi guration project.

Th e plan involved retooling and auto-mating pump stations 1, 3, 4 and 9.

Th e “legacy” equipment installed in the pump stations during original construc-tion would be replaced. New, smaller pumps driven by electric motors would be installed. Electricity was to be generat-ed with new turbine generators running on natural gas. Th e exception would be Pump Station 9, near Delta Junction. Th at station could draw power from Golden Valley Electric Association grid.

Th e new strategic reconfi guration equipment would be modular and ex-pandable, in case North Slope oil pro-duction increased.

And the equipment would be de-signed for remote operation, meaning attended local control rooms at each pump station would no longer be neces-sary. Alyeska’s main pipeline operations

StrategicReconfigurationTimeline

The project to overhaul pump sta-tions along the 800-mile trans-Alaska OIL pipeline is far behind schedule, and way over budget.

� June 20, 1977—Pipeline begins service

� Early 2004—Owners sanction, or approve, $242 million “strategic reconfi guration” project

� Feb. 9, 2007—First forward fl ow of oil through reconfi gured Pump Station 9

� Dec. 11, 2007—First forward fl ow of oil through reconfi gured Pump Station 3

� May 21, 2009—First forward fl ow of oil through reconfi gured Pump Station 4

� March 2011—Strategic reconfi gu-ration expenditures exceed $700 million

� Late 2014—Project scheduled to end with completed Pump Station 1 overhaul

SOURCE: Filings with the Federal Energy Regulatory Commission and the Regulatory Commission of Alaska


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center is housed in a building on Gov-ernment Hill in downtown Anchorage.

OwnersPressedOnStrategic reconfi guration, the owners felt, could tame the “ever-escalating costs” of operation, and position the pipeline for many more years of service.

Th e project, however, did not play out as hoped. Th e budget swelled, and the schedule slipped.

Documents fi led with state and fed-eral pipeline regulators reveal extensive internal debate within Alyeska, and among the pipeline owners, about the course of the project.

Th e documents are the product of an intense battle over tariff s, or rates, the owners charge to move oil on the pipeline. Th e owners want to roll their strategic reconfi guration spending into their rate bases. But the state is seeking to disallow some portion of these costs, as higher tariff s could have the eff ect of reducing its oil tax and royalty collec-tions by hundreds of millions of dollars.

Th e state, in fi lings with the Federal Energy Regulatory Commission and the Regulatory Commission of Alaska,

argues much of the strategic reconfi gu-ration spending was “not reasonable, it was not necessary, it was not justifi ed, and it was imprudent.”

Th e state was able to obtain internal company documents, such as email, showing the trouble Alyeska and the owners experienced with the project.

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Journalist Wesley Loy lives in Anchorage.

One BP employee, in a late 2006 email, urged the owners to stop and regroup. Th e project, he wrote, would qualify as a “train wreck” with respect to cost and schedule performance.

Th e owners ultimately elected to press on with strategic reconfi guration.

A major milestone came on Feb. 9, 2007, when the fi rst forward fl ow of oil through the reconfi gured Pump Station 9 was achieved.

By the end of 2007, the upgraded Pump Station 3 also was moving oil. Pump Sta-tion 4 came online in May 2009.

Now only Pump Station 1, at Prudhoe Bay, remains to be overhauled. Work there is well under way.

New turbine generators, electric mo-tors and pumps will be installed at Pump Station 1, just as with stations 3 and 4.

Th e state, in a December 2012 fi ling with FERC and the RCA, says “the origi-nal $242 million projected budget has bal-looned to approximately $786 million.”

ARemarkableAchievementThe owners, in their own filings, agree that expenditures have exceed-ed $700 million. They say they elect-ed to approve supplemental funding because strategic reconfiguration “continued to be a viable and prudent project even with a cost and timeline considerably less favorable than orig-inally projected.”

Alyeska’s Joynor has been at pipeline work his whole career. From his cow-boy accent, it’s no surprise to learn he was born in Beaumont, Texas.

“I’ve been moving oil for 37 years,” Joynor says. “It’s the only thing I know how to do.”

Strategic reconfi guration has been a daunting project, he acknowledges. But he believes it has been worthwhile. While upgraded pump stations contin-ue to be manned to some degree, doz-ens of pump station operator positions have been eliminated, Joynor says.

He believes the pump station up-grades have been a remarkable achieve-ment considering the complex work has been done without serious mishaps, in remote locations, all while keeping the oil fl owing.

Alyeska’s strategic reconfi guration project is�the�largest�undertaking�on�the�trans-Alaska�oil�pipeline�since�original�construction�in�the�1970s.

Photo courtesy of Alyeska Pipeline Service Co.


Corporation and Community

Supporting Responsible Resource Development

Empowered by Change

Shouts of Aġvaaq aŋŋuuq! fill the frosty air as villagers waiting on the shore-fast ice catch sight of

their whaling crews returning from open water. The small boats move slowly under the drag of a spring catch, a 30-foot bowhead whale.

Working together, the Wainwright community extracts from the Chukchi Sea what they need to feed and fuel their village and their culture. “The way we do things has had to change with the times,” said Edgar Kagak, as aluminum boats are pulled from the water, “but not why we do them.” Like his father and grand-father, Edgar is a member of a whaling crew, but he also serves on the board of Wainwright’s village corporation. “In the Arctic, we have to take advantage of ev-ery opportunity and resource available—and our Corporation is a valuable com-munity resource,” said Edgar.

Olgoonik Corporation: A Community Resource

The 1971 Alaska Native Claims Settle-ment Act, formation of regional and vil-lage corporations, and subsequent feder-al contracting preferences were critical in helping Alaska Natives find new ways to adapt to a cash-based economy and compete in western business.

Under ANCSA, Wainwright’s village corporation was established in 1973. Olgoonik Corporation (ooh-lu-goo-nik) is owned by more than 1,100 Native shareholders, almost half of whom live in the village. The corporation’s Iñupiat board of directors is guided by a two-fold company mission: gain financial success in order to create shareholder opportu-nity, and nurture and protect the com-munity and its heritage.

An Advantage: Government Contracting

Olgoonik formed its first for-profit sub-

sidiaries in 1997. Its participation in the U.S. Small Business Administration’s 8(a) Program was crucial to its early efforts to access the competitive gov-ernment contracting market. Through high-quality operations, strategic plan-ning and internal investments, Olgoon-ik established a stable portfolio of as-sets and capabilities.

Today, Olgoonik’s mature, success-ful companies deliver construction, logistics, environmental, oilfield, and security services around the world. The corporation is proud of its record of providing first-rate service to federal customers as well as to state and com-mercial clients in Alaska.

Alaska’s Oilfield Industry: A Commercial Opportunity

In response to increasing oil and gas in-dustry activity in the Arctic, Olgoonik expanded its capabilities with a full range of oilfield support services.

“We will continue to invest in our commercial capabilities because as our interaction with industry increases, so does our access to new profit sources and new shareholder opportunities through jobs and training, which are key elements of our mission,” said Howard Patkotak, board president and Wain-wright resident.

Olgoonik’s commercial companies provide essential services and products for exploration and production, includ-ing marine, air and land logistics; envi-ronmental compliance; civil engineer-ing and construction; downhole tools and consulting; and management of marine science studies in the Chukchi and Beaufort Seas. Joint ventures with Alaska experts Lynden and Fairweather further expand Olgoonik’s oilfield ser-vice options to meet a wide variety of support requirements.

Located along the coast of the Chukchi Sea, Wainwright, Alaska is the home of Sea, Wainwright, Alaska is the home of Sea, Wainwright, Alaska

Olgoonik Corporation.

A Wainwright whaling crew returning from a successful spring hunt.

Providing jobs and shareholderProviding jobs and shareholder opportunities is a key element of Olgoonik Corporation’s mission.

Near the village, Olgoonik performs Near the village, Olgoonik performs demolition and remediation work at a U. S.

Air Force abandoned military radar site.

Olgoonik Corporation

BusinessPROFILE BusinessPROFILE“The way we do things has had to change

with the times, but not why we do them.” — Edgar Kagak


3201 C Street, Suite 700Anchorage, AK 99503Phone: 907.562.8728Web: www.olgoonik.com

Corporation and CommunityWainwright sits on a narrow peninsula separating it from the Chukchi Sea. The 175,000 acres of Olgoonik-owned land surrounding the village is a precious community resource with immeasurable historical and subsistence significance. The corporation carefully regulates land use through policies and permit require-ments.

“While the land and waters provide many traditional foods, we must also rely on local jobs in addition to subsistence,” stated Chairman Hugh Patkotak, Sr.

Principal employers in the village are the corporation and the North Slope Borough with Olgoonik subsidiaries training and hiring residents for local projects. Olgoonik also manages four businesses in Wainwright.

“Our households are transitioning between the old and the new…holding strong to traditional Iñupiat values while acknowledging the need for more jobs in the village,” Chairman Patkotak said.

Supporting Responsible Resource Development

Wainwright is located inside the National Petroleum Reserve-Alaska and is the clos-est community to the offshore leases in the Chukchi Sea.

To date, Olgoonik has invested millions of dollars developing its oilfield support services, upgrading village infrastructure, purchasing heavy machinery and train-ing residents in job categories required by oilfield operations. It is also finalizing con-struction of a full-service support base,

which is located outside of the village to minimize impact on the community.

“We understand that industry activity in the area will bring significant challeng-es, but we believe that our traditional way of life can be balanced with responsible development,” said Chairman Patkotak.

Olgoonik works closely with Wain-wright City and Tribal Councils to devel-op a unified approach to industry contact, development opportunities and environ-mental protection. “Together with village leadership, the Board will take every ac-tion necessary to safeguard the environ-ment and ensure resources are developed in a way that reflects and preserves our Iñupiat values,” stated Chairman Patkotak.

Empowered by ChangeAs a village corporation, Olgoonik has the unique task of preserving balance be-tween Wainwright’s cultural well-being and economic objectives.

Diversifying government contracting with commercial services was an impor-tant part of Olgoonik’s plan for growth. By molding change to its advantage, the corporation is positioned to explore emerging opportunities, including the benefits of safe resource development, while it maintains a strong position on environmental protection.

As Edgar Kagak said, “The way we do things has had to change with the times, but not why do them.” Olgoonik’s “why,” its vision, has remained constant for the past 40 years: to foster sustain-able growth and build a corporation that will empower its community and future generations.

S

Olgoonik Corporation: A Community Resource

An Advantage: Government Contracting

Alaska’s Oilfield Industry: A Commercial Opportunity

Olgoonik supports clients with onshore and offshore services, such as crew

changes in the Chukchi Sea.

Road construction and other infrastruc-ture improvements in the village serve

Wainwright residents as well as Olgoonik’s commercial customers.

One of Olgoonik’s personnel camps in the village—a valuable addition to its industry

support capabilities.

Olgoonik’s mission and vision focus on building a strong shareholder-managed

company for future generations.

Olgoonik’s mission and vision focus on

Olgoonik Corporation

BusinessPROFILE BusinessPROFILE“The way we do things has had to change

with the times, but not why we do them.” — Edgar Kagak


Cook Inlet GasCook Inlet GasCook Inlet Gas

The new Cook Inlet Natural�Gas�Storage�Alaska�facility�in�Kenai�is�now�operating�to�store�surplus�natural�gas�in�summer�for�peak�demand�periods�in�winter,�when�gas�supplies�are�low.�CINGSA�is�critical�new�infrastructure�adding�security�to�Southcentral�Alaska’s�energy�supply.

Photo courtesy of ENSTAR Natural Gas

Uncertainty in supply and demand

By�Mike�Bradner


There are concerns about natural gas supply in South-central Alaska. Gas fi elds in the region, discovered in the 1960s and 1970s, are being depleted. South-

central utilities have estimated that annual gas supply may fall short of demand by 2014 or 2015 and are working on plans to import liquefi ed natural gas or compressed natu-ral gas as a contingency.

Meanwhile, citing the gas shortage, ConocoPhillips has opted not to renew the liquefi ed natural gas export license for the company’s LNG plant at Nikiski, near Kenai. Th e North Cook Inlet gas fi eld, which supplied the plant, still operates and now supplies the utilities. Th e plant is moth-balled; however, it is being maintained in a state to restart

“Cook� Inlet� is� a� maturing� oil� and�gas� basin.� While� there� are� legiti-mate� concerns� about� contractual�shortfalls�of�natural�gas�in�2014�and�2015,�there�are�still�large�volumes�of�gas�to�be�discovered�and�developed�in�small�to�intermediate-size�fi�elds.”

—Dan SullivanCommissioner,�Department�of�Natural�Resources


if there are new gas discoveries or the plant can be used in some other way, such as an LNG import facility.

Despite the apparent shortages, the state of Alaska believes there are sub-stantial undiscovered gas resources in Cook Inlet. Department of Natural Resources Commissioner Dan Sullivan (no relation to Anchorage Mayor Dan Sullivan) acknowledges the utilities’ concerns, but says that with additional drilling and investment in the existing fi elds, there could be new gas reserves and production.

“Cook Inlet is a maturing oil and gas basin. While there are legitimate con-cerns about contractual shortfalls of natural gas in 2014 and 2015, there are still large volumes of gas to be discov-ered and developed in small to interme-diate-size fi elds,” Sullivan told Anchor-age Mayor Dan Sullivan’s Energy Task Force March 14.

UncertaintiesTh ere are uncertainties, however. “Cook Inlet is currently witnessing a transi-tion from larger producers like Chevron and Marathon to mid-size and smaller companies, like Hilcorp, Apache and NordAq,” the commissioner said.

“Generally, we see this as a positive trend, but transitions can slow actions and increase uncertainty,” particularly in a small market like Cook Inlet where there are a number of stakeholders, in-cluding utilities, producers, explorers, regulators and the state and federal governments, Sullivan said.

In their studies of gas remaining in the producing fi elds, the utilities have used a very conservative method, a “decline curve analysis.” Th is is ap-propriate for utilities, due to the legal requirement to assure their customers of service. “Utilities have a laser fo-cus on the volume of gas available for contracts,” to supply gas, the commis-sioner said.

However, to get a bigger picture the DNR can use other methods, such as a “material balance analysis,” which the DNR used in addition to decline curve analysis; the agency estimates that there could be as much as 32 percent more gas in the existing fi elds than is assumed by the utilities in their study.

Th e state now estimates there is 1.1 trillion cubic feet of gas in remain-

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ing producible reserves in 28 fi elds in Cook Inlet. Using the material bal-ance method of analysis, the Division of Oil and Gas estimates there is 355 billion cubic feet of undeveloped gas resources in three large fi elds. Th is in-cludes 233 billion cubic feet of unde-veloped gas in the Beluga gas fi eld, on the west side of Cook Inlet; 72 billion cubic feet in the Trading Bay Unit and Grayling gas sands, an off shore fi eld in the Inlet; and 50 billion cubic feet in the North Cook Inlet fi eld, also an off shore fi eld.

UnavailableDataLowersEstimates

Th ese estimates of undeveloped re-sources are undoubtedly low because two large Cook Inlet gas fi elds were left out of this analysis by the division: the Kenai gas fi eld, one of the largest in Southcentral Alaska, and the Ninilchik gas fi eld. Both are on the Kenai Penin-sula. Th ey were not included because the division did not have the same amount of data that was available for the three fi elds that were included.

Th ere are, in addition, other re-sources in all the fi elds that are “be-hind the pipe,” in geologically isolated portions of the reservoirs that cannot be observed using either the decline curve or material balance analyses.

Th at is because those methods of analysis are based on production data, but non-producing reservoir segments that can be inferred in various ways are not included.

Tapping those additional reserves seen in the material balance analysis or that exist behind the pipe will require additional drilling and investment in the fi elds, and Commissioner Sullivan acknowledges that there is not enough new drilling in the Inlet.

Th e utilities’ conservative decline curve analysis assumes little new drill-ing and estimates that to meet the pro-jected gas supply gap the number of new producing wells will have to double from what is currently being drilled.

InvestmentOpportunityA critical question is whether that in-vestment will be made. Th ere is some reason for optimism that more invest-ments are coming because of the entry of Hilcorp LLC into Cook Inlet and the completion, eff ective Jan. 31, of former gas-producing wells owned by Mara-thon Oil Co. Hilcorp had purchased Chevon Corp. producing properties in 2012 but most of those, such as the off shore producing platforms in Cook Inlet, are dedicated to oil.

Taking over ownership of the Mara-thon gas fi elds now gives Hilcorp con-

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trol of about 70 percent of the Cook Inlet gas production, and the company has a reputation for aggressively rejuve-nating old wells and fi elds, based on a long record in the U.S. Gulf States.

Since taking over in February, Hil-corp has in fact reworked and also simply “turned on” many gas wells that Marathon had not worked with—or had shut off —in the fi nal year of its ownership. Th is move by Hilcorp in February quickly made more gas available to utilities like Enstar Natu-ral Gas Co., which was very concerned about its gas supply during cold weather in December.

Hilcorp won’t comment on how much new gas it is now producing or how much gas is remaining in the Marathon fi elds it acquired. Th e com-pany says it must do its own assessment of the remaining reserves. However, the company’s actions, for example its decision to bring two new land rigs to Cook Inlet, one of which will be work-ing on gas wells, signals that it intends to invest. Hilcorp is also bringing two smaller “workover” rigs to rework old wells on the off shore Inlet platforms, but much of this is aimed at increasing oil production.

Apache Corp., another new com-pany to the region, has an aggressive long-term plan and has drilled its fi rst exploration well. While Apache is fo-cused mainly on oil it will likely fi nd some gas when it fi nds oil—and if there are gas prospects near its areas of interest, Apache may drill those, the company has said.

Explorers like NordAq and Furie Operating Alaska, two small inde-pendents, have reported gas discov-eries, although it’s too early to know the amount or when or if it might be produced. Buccaneer Energy, another independent, is developing new gas production from discoveries on the Kenai Peninsula, although the quanti-ties are small.

UtilitiesPlantoImportGasDespite this encouragement, the utili-ties say there is not yet enough informa-tion on committed drilling and signed new gas contracts to allay their con-cerns. For example, there are concerns that much of Hilcorp’s investment is aimed at new oil production rather

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Mike Bradner is publisher of the Alaska Legislative Digest.

than gas. Cook Inlet region gas prices are among the highest in the nation, at $6 to $8 per thousand cubic feet, but crude oil prices are higher on an equiv-alent energy-value basis, so investing in oil is more profi table. Until there is more assurance, planning for the LNG or compressed natural gas imports is continuing, the utilities say.

Despite the current apparent short-age of gas, the major challenge Cook Inlet producers and explorers have is the nature of the small regional gas market, which consists of Enstar and the electric utilities now that the Con-ocoPhillips plant is no longer export-ing gas.

Th is means that if an explorer is lucky and fi nds a lot of gas, there may not be a market for it, ironically. Open-ings for the utilities come only at cer-tain intervals.

A new industrial gas customer, however, may be the Donlin Creek gold mine that is planned to be built in the mid-Kuskokwim River region west of Anchorage. Donlin Gold, the joint-venture that is developing the mine, is planning a 14-inch gas pipe-line from Cook Inlet to Donlin Gold that would be built to supply energy to the mine if it is built. Donlin Gold could be a signifi cant industrial cus-tomer that would require a steady, year-round supply.

While it does not require new gas supply, the Cook Inlet Natural Gas Stor-age Alaska project now in operation near Kenai is a signifi cant addition to the local energy infrastructure.

Previously the utilities had to pur-chase more gas in the winter when demand peaked, but summer demand was low, leaving producers with huge seasonal swings in demand. Th e new gas storage facility allows the utilities to purchase gas year-round, storing the gas in summer and withdrawing it to meet peak demands in winter.

Because the utilities that are con-tracted to store gas in CINGSA can now buy in the summer, producers are able to even out their production and not have to throttle wells back in summer, which can damage the wells.


Alaska Oil PolicyAlaska Oil PolicyAlaska Oil PolicyUnderstanding investment

By�Bradford�G.�Keithley


Alaskans heard the word “invest-ment” a great deal during the re-cent legislative session. Th ey likely

will hear more of the word in the months and years ahead as the state continues ef-forts to bring increased investment to the North Slope, and others evaluate whether those eff orts are successful.

In that context I thought it would be useful to write a column on oil investment.

TheChartTo do that, I have borrowed a chart from a company called Petoro. Th ose who read my January column (“Alaska Oil Policy: Achieving Alignment,” Alaska Business Monthly, January 2013), will recognize Petoro as the arm of the Norwegian government engaged in co-investment with industry in the development of that country’s oil and gas resources. I chose to use a chart from Petoro because it is viewed largely as a neutral entity, not likely to tilt the information playing fi eld one direction or another.

Th e chart shows the relationship over time between investment and produc-tion in the development of a typical oil fi eld. Th e bars are investment levels, by year. Th e higher the bar, the greater the investment made in that year.

Th e blue line is production level, again by year. Th e higher the line, the greater the production level for that year. Th e bars and production line go out 26 years, a useful proxy for a sig-nifi cantly sized fi eld.

Th e bump in the line beginning about the 18th year represents the application of improved oil recovery (IOR) methods that oft en are employed in mature and aging fi elds. Depending on the charac-teristics of the fi eld, the application of such methods can boost both then-cur-rent production levels and the ultimate recovery of oil from the fi eld.

As also shown on the chart, however, such increased production and recovery rates require added investment. Th e sub-stantial increases in investment levels shown in years 17, 18 and 19 are directly tied to the increased production and re-covery rates depicted by the bump in the line. Th ose increases would not occur but for the increase in investment.

As complete as the chart is, there are two additional events that are useful to visualize to help understand oil invest-ment in Alaska. One comes before this chart begins. A producer must fi nd a fi eld to produce before bringing it into development.

Th is chart only depicts the develop-ment phase. Th ere are several years be-fore this chart begins that are involved in the exploration phase. All that oc-curs in those earlier years is invest-ment; there is no production.

Th e second is in the later years of the development phase. Th is chart shows one cycle of improved recovery. Actu-ally, some major fi elds, like Prudhoe, go through a number of such cycles as techniques and technology are devel-oped that off er the potential to increase ultimate recovery rates even further.

Indeed, Prudhoe is something of the global poster child for such eff orts.

When fi rst discovered, the owners es-timated that they ultimately would recover 40 percent of the oil contained in the Prudhoe Bay Field. With the ap-plication of the initial set of improved recovery techniques, the estimated re-covery rate grew to 50 percent. As the owners came to understand the fi eld better—and continued to make invest-ments—they have developed additional techniques, equipment and tools which lead them now to estimate ultimately recovering 60 percent of the oil con-tained in the Prudhoe Bay fi eld.

And there remain other ideas which, with timely investment, may push the ultimate recovery rate even higher.

Th is chart helps in several ways to bet-ter understand oil investment in Alaska. Th e following will point out three.

UnderstandingtheImportanceofPredictableTaxLevels

First, the chart helps explain why inves-tors are focused on the predictability and certainty of tax and other so-called government take levels.

Following the chart from the left it is clear that a producer commits a large part of the money required for a ma-jor project in the fi rst few years. Most production—and revenue—come lat-

Chart courtesy of Petoro


er. Despite the fact that it comes later, however, it is that anticipated revenue stream on which the investment is based in the first place.

Generally speaking, the producer es-timates the return it anticipates earning from the revenue stream, compares that with other opportunities, and then in-vests in those providing the best return.

Because the revenue stream is still several years into the future at the time the investments are made, the investor must make projections about what the revenue stream will look like, and what deductions will apply. One of the factors in making that projection—indeed, of-ten the largest factor other than the price of oil—is the amount the applicable gov-ernments will deduct from the stream in royalty, taxes and other assessments over the first 15 years or so of the project.

In making that projection, the in-vestor necessarily will assess the rela-tive certainty of what the government take level will be over the period. Some countries provide for government take by contract, backed up with various ar-bitration provisions. Others essentially negotiate take levels on a case by case basis with the investor during its evalu-ation of the project and, while not set by contract, nevertheless respect the terms of the negotiated results once the investment is made.

Alaska and others, on the other hand, set take levels in large part by statute, reserving the right to change the level during the life of the project.

Projects where the government re-serves the right to change the take level during the life of the project present special problems in projecting the level of the anticipated return. Usually, the investor will include a risk factor to ac-count for the potential that the level of government take will increase during the life of the project.

In areas where the government has demonstrated a propensity to exercise that ability, the investor usually will assume in its economics some upward change in government take levels dur-ing the term. That also is the case where the current take levels include a “sun-set” or similar provision, automatically adjusting the levels in certain situa-tions. Investors generally will be cau-tious and assume it is more likely that the events will occur than not.


Th e result is to put major, long-term investments in those areas, like Alaska, where the take levels may be changed at a competitive disadvantage. Even if the actual government take level at the time the investment is being evaluated is lower than competing alternatives, the project may still go unfunded if there is concern that government take levels may increase sometime during the life of the revenue stream.

TheDifferencebetweenLong-TermandShort-Term

InvestmentSecond, the chart helps explain the dif-ference between long-term and short-term investment.

Following the chart from the left , it is clear that the fi rst set of investment, made in the early years of the project, is signifi cant and produces a long rev-enue stream. On the other hand, the second set of investment, made in the later years for improved recovery, is smaller and produces a relatively short revenue stream.

Th is diff erence between long-term and short-term investment is signifi -cant. Because they have a limited time horizon, short-term investment proj-ects are subject to somewhat less risk than long-term projects.

For example, in evaluating a short-term project, the period over which an investor is required to project the anticipated level of government take is much more compact. Investors need to assess the likely level of government take only over a fi ve to eight year pe-riod, roughly half that appropriate to a long-term investment.

Because the likely outcomes tend to be more predictable over shorter pe-riods, the risk factors associated with short-term projects usually are lower and enable those projects to compete better for capital than long-term proj-ects in the same area.

For this reason, Alaska tends to com-pete better for short-term investment than it does for long-term investment. Adoption of tax reform likely improves that position. Investors will assume that the changes will remain in place for some period of time.

Even with tax reform, however, Alas-ka remains at a competitive disadvan-tage for long-term investment because

of continued uncertainty around its long-term tax structure.

As the chart makes clear, the down-side of shorter-term projects is that they involve much less investment, result in much lower production, and last over a much shorter time frame.

WhyCapitalCreditsSeldomWorkWell

Th ird, the chart helps explain why tax credits tied to capital spending gener-ally fail to encourage signifi cant new oil investment, as happened under Alas-ka’s Clear and Equitable Share (ACES).

In the oil industry, taxes usually are tied to production, once investors have income. Sometimes, as Alaska tried under ACES, the tax structure also will permit investors to reduce their taxes through credits tied to capital spending.

Th e idea behind such credits is to encourage investors to pursue projects by reducing the eff ective cost of their investment. Th at approach seldom at-tracts major projects, however.

As the chart demonstrates, capital spending on major oil projects usually occurs ahead of production. Investment is heavy at the front end, then tapers off as production begins to ramp up.

As a result, tax credits tied to capital spending largely are only available ear-ly in the life of the project, before pro-duction—and thus, production taxes—begin. Unless the time period for which the tax credits can be used is extended, they largely expire before any taxable income occurs.

Of course, some tax schemes permit the credits to be carried forward or, as ACES did for some taxpayers, permits the credits to be turned into cash pay-ments to the investors. Even then, how-ever, the use of tax credits seldom sig-nifi cantly help a major project.

Even if carried forward, all that the tax credits do is reduce the eff ective tax rate of the project. Th e investor still pays taxes, but the rate is lower than the identifi ed rate because the taxpayer is able to apply credits.

But the resulting eff ective rate largely is unknowable at the front end of the project, when the decision whether to make the investments is made. Th at is because the production level—which generates the tax obligation—is uncer-

tain. Investors generally will have some estimate of the anticipated production level, but most investors believe, once they gain experience in a fi eld, they likely will be able to increase produc-tion levels signifi cantly. As the investor is successful in doing that, the benefi t of the earlier tax credits, which is not tied to production, will diminish.

As a result, few major investors are signifi cantly incentivized to undertake a major project by capital tax cred-its. Instead, their decisions are driven much more by the levels of government take that will apply to production, once it begins.

AttractingInvestmentisnotRocketScience

Th e characteristics that attract long-term investment to a region that other-wise has signifi cant resource potential are not diffi cult to identify. Investors look for good returns, but as important is predictability of the factors that aff ect their returns.

Major investments are rarely mo-tivated by artifi cial tax measures de-signed to provide credits for specifi c types of investments. Th ose measures can be changed and seldom are sig-nifi cant enough to justify a long-term investment.

Alaska is positioned to compete for short-term investment projects. Whether it is positioned to compete for long-term investment, however, will depend on whether investors are com-fortable predicting that they will be able to earn competitive returns over an extended time horizon. Under Alaska’s current approach to establishing gov-ernment take levels, that is a question that remains to be answered.

Bradford G. Keithley is a Partner and Co-Head of the Oil & Gas Practice at Perkins Coie LLP. He maintains offi ces in both

Anchorage and Washington, D.C., and is the publisher of the blog “Thoughts on Alaska Oil & Gas” bgkeithley.com.

Bradford G. Keithley is a Partner and Co-Head of the Oil & Gas Practice at Perkins Coie LLP. He maintains offi ces in both


By�Frank�E.�Baker

When valves were opened to allow the fi rst Prudhoe Bay crude oil to fl ow into the

800-mile-long trans-Alaska oil pipeline on the morning of June 20, 1977, every-one, including industry experts, didn’t expect that North America’s largest oil fi eld would yield more than 9.6 billion barrels. Today, 35 years aft er startup, more than 12 billion barrels have been produced. Th is is about 53 percent of the estimated 22.6 billion barrels in place—and it’s believed up to 2 billion more barrels are recoverable.

In cumulative production, the Prud-hoe Bay fi eld is now ranked No. 1 in the United States and 20th in the world.

In technical terms, the 12 billion bar-rel fi gure includes only the Prudhoe Bay Ivishak production from the Initial Participating Area (IPA), and includes all liquids such as black oil, separator liquids and natural gas liquids.

“Th e 12 billion barrels fi gure that we reached in October 2012 is consistent with the fi gures used initially to de-scribe the original Prudhoe discovery and development,” says Scott Digert, BP Alaska’s reservoir management team lead. “It does not include the West End satellites (Aurora, Borealis, Orion and Polaris), nor does it include the GPB fi elds that come in through the Lis-burne Production Center (LPC) such as Lisburne, Greater Point McIntyre Area, (GPMA) and Niakuk.”

BoostingProductionDigert says that during the last three decades Prudhoe Bay has been a prov-ing ground for oil fi eld technology that has helped BP Alaska and other compa-

nies go beyond what was ever thought possible in maxi-mizing production from the super-giant fi eld.

“Advances in enhanced oil recovery (EOR) techniques boosted our overall oil recov-ery by about 3 billion bar-rels,” says Digert. “Large-scale gas cycling, water fl ooding around the periphery of the fi eld, mis-cible gas injection (MI) and a technique called water-alternating gas (WAG) were eff ectively used. Improved reservoir analysis and delineation; advanced drill-ing techniques, such as horizontal and multi-lateral drilling; and advanced well completion methods, also made signifi -cant contributions.”

To date, more than 1,000 wells and sidetracks have been drilled in the IPA, and with seven drilling rigs currently operating, BP Alaska plans to sustain its active drilling and sidetrack pro-gram in upcoming years.

“We’re now aggressively going aft er light oil in known accumulations,” says Digert. “We are using advance seismic imaging, reservoir simulation, and ex-tensive surveillance and analysis of our current wells to identify further drilling targets. We are continuing to deploy in-novative methods such as Gas Cap Wa-ter Injection to support the reservoir pressure. We are applying new technol-ogies such as BrightWater to improve the sweep effi ciency of our water injec-tion, and pursuing new technologies that could similarly improve MI sweep.”

Digert adds that BP Alaska has in-creased its rig fl eet capacity in 2013 to add more drilling and workover capa-

bility to refresh and main-tain well stock. He says the company is also working with other working interest own-ers, contractors, suppliers and with the State of Alaska to sustain the fi nancial health of BP Alaska’s base oil business.

“Th is will be needed to ei-ther maximize oil recovery as

we head into the next 35 years of pro-duction, or to underpin future major gas sales,” he says.

FastFactsaboutthePrudhoeBayField

� Accounted for about 15 to 20 percent of America’s oil production for almost three decades; but is less than 10 percent today

� Because of Prudhoe Bay, there are now 24 separate oil fi elds producing on the North Slope

� Mostly because of Prudhoe Bay, Alaska’s Permanent Fund Savings Ac-count balance is more than $42 billion

� According to the University of Alaska’s Institute for Social and Economic Research (ISER), Alaska’s petroleum wealth (money in the bank and petroleum in the ground) is valued at $160 billion

� Has accounted for about 126,000 jobs� Continues to provide about 85 to 90

percent of the state’s annual revenues� Imported technology to other BP

assets across the world

This brief originally appeared in an internal BP publication. Reprinted with permission.

Scott DigertScott Digert

Drilling rig, winter, Prudhoe Bay.�

© BP

Oil & Gas special section


Repsol Busy Repsol Busy Repsol Busy Repsol Busy Repsol Busy Repsol Busy with Qugruk with Qugruk with Qugruk ProspectProspectProspect


Above: Alaska Frontier Construction employee�measuring� the� ice�depth�of�the�ice�road�to�the�drilling�sites.Right: Ice road leading to�the�Qugruk�No.� 6� drilling� location� in� the� early�morning�light.

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Anchorage +1 907 344 6001Canada +1 800 414 [email protected]

www.golder.com

Golder Associates has been part of the offshore oil and gas industry in Alaska

and the arctic for more than 30 years. We provide integrated services that

include geotechnical-permafrost engineering, marine sciences, met-ocean

data collection and analysis, along with a passion for sustainable solutions to

arctic development.

Engineering Earth’s Development, Preserving Earth’s Integrity.

How Do You Develop Arctic Offshore Resources? Just Ask Golder.

Oil & Gas


The company built a 4,000�foot�lighted�runway�on�a�frozen�lake�near�the�drilling�locations�and�chartered�with�Era�Aviation�to�make�fi�ve�fl� ights�per�week�direct�from�Anchorage�for�crew�change�outs.

Pulling the slips out, tripping�in�the�hole.�There�are�a�total�of�approximately�350�people�working�on�the�project�this�season�including�construction,�drilling,�camps�and�other�personnel.

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ExpErt Support from

AlASkA’S truStEd Shipbuilding And

rEpAir lEAdEr

ASD is proud to support the growing needs of Alaska’s

offshore oil and gas exploration. As the largest

shipbuilding and repair facility in Alaska, our expert

teams provide mobile repair support from Cook Inlet to

the Beaufort and Chukchi seas. Our Ketchikan shipyard

specializes in full-service shipbuilding and repair.

907.225.7199 AkShip.com [email protected]

© Scott Dickerson

ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S ALASKA BUSINESS MONTHLY’S

2013 2013 2013 2013 2013 2013 OIL&GASOIL&GASOIL&GASDIRECTORYDIRECTORYDIRECTORYEXPLORATION & PRODUCTION AKCompany Top Executive Estab. Empls. Services


CompanyTop Executive Estab.

AKEmpls. Business Activity

Apache Corporation510 L St., Suite 310Anchorage, AK 99501Phone: 907-272-2722 Fax: 907-277-0005

John L. Hendrix, Gen. Mgr.

[email protected]

1954 0 Oil and gas exploration and development.

Aurora Gas LLC1400 W. Benson Blvd.Anchorage, AK 99503Phone: 907-277-1003 Fax: 907-277-1006

Ed Jones, Pres.

[email protected]

1999 11 Oil and gas exploration and production.

BP Exploration (Alaska) Inc.PO Box 196612Anchorage, AK 99515-6612Phone: 907-561-5111 Fax: 907-564-4124

Janet Weiss, Pres.

alaska.bp.com

1959 2,300 BP operates 13 North Slope oil fields, four North Slope pipelines, and owns a significantinterest in six other producing fields.

Buccaneer Energy952 Echo Lane, Ste. 420Houston, TX 77024Phone: 713-468-1678 Fax: 713-468-3717

Curtis Burton, CEO

[email protected]


Chevron1029 W. Third Ave., Suite 150Anchorage, AK 99501Phone: 907-276-7600 Fax: 907-263-7607

Kevin Donley, Senior Counsel

chevron.com

2011 6 Oil and gas exploration and production. Presence in Cook Inlet since 1957.

ConocoPhillips Alaska Inc.PO Box 100360Anchorage, AK 99510Phone: 907-276-1215 Fax: 907-265-1410

Trond-Erik Johansen, Pres.

[email protected]

1952 1,100 Largest producer of oil and gas in Alaska, with major operations on Alaska's North Slopeand in Cook Inlet.

Cook Inlet Energy LLC601 W. Fifth Ave., Suite 310Anchorage, AK 99501Phone: 907-334-6745 Fax: 907-334-6735

David Hall, CEO

millerenergyresources.com


Denali Drilling8240 Petersburg St.Anchorage, AK 99507Phone: 907-562-2312 Fax: 907-562-5971

Ron Pichler, Pres.

[email protected] or [email protected]

1970 20 DDI provides geotechnical, environmental, mineral exploration, commercial water welland large diameter (8') shaft drilling. We also drill, install tie-backs and constructretaining walls. We have provided these services throughout Alaska since 1970. Wehave specialized equipment for on/offshore and heli-poratable drilling.

Doyon Drilling Inc.11500 C St., Suite 200Anchorage, AK 99515Phone: 907-563-5530 Fax: 907-561-8986

Aaron Schutt, Pres.

[email protected]

1982 430 Doyon Drilling operates on the North Slope of Alaska with rigs designed to drill innorthern Alaska conditions. The company consistently strives to improve its operationsand has some of the most technologically advanced land drilling rigs in the world.

Eni Petroleum3800 Centerpoint Dr., Suite 300Anchorage, AK 99503Phone: 907-865-3300 Fax: 907-865-3384

Steve Massey, AK eni Rep/Ops Mgr.

eni.com

1926 60 Eni is an integrated energy company. Active in 77 countries, with a staff of 78,400employees, it operates in oil and gas exploration, production, transportation,transformation and marketing, in petrochemicals, oilfield services construction andengineering.

ExxonMobilPO Box 196601Anchorage, AK 99519Phone: 907-561-5331 Fax: 907-564-3719

Karen Hagedorn, AK Production Mgr.

exxonmobil.com

1870 100 Conducting business in Alaska for 50 years, investing billions into local economics. Asone of the largest oil producers in Alaska, Exxon Mobil has explored most major Alaskabasins over the years.

Furie Operating Alaska LLC1029 W. Third Ave., Suite 500Anchorage, AK 99501Phone: 907-277-3726 Fax: 907-277-3796

Damon Kade, Pres. 2011 9 Exploration in the Kitchen Lights Unit located in the Cook Inlet of Alaska.

Great Bear Petroleum Operating LLC601 W. 5th Ave., Suite 505Anchorage, AK 99501Phone: 907-868-8070 Fax: 907-868-3887

Ed Duncan, Pres./CEO

greatbearpetro.com

2010 7 Focused on the exploration, sustainable development and production of unconventionalresources on the North Slope of Alaska, with a particular focus on shale-based oil. GreatBear also intends to exploit the shale-based natural gas on its leases as well asconventional prospects as they arise.

Hillcorp Alaska LLCPO Box 244027Anchorage, AK 99524Phone: 907-777-8300 Fax: 907-777-8310

John Barnes, Sr. VP

hilcorp.com

2012 300 Hilcorp is the third-largest, privately-held exploration and production company in theUnited States. Our success is a direct result of hard work and dedication to doing theright thing. Protecting the environment and ensuring a safe, healthy workplace arepriority one for Hilcorp.

Linc Energy Ltd.3000 C St., Suite #103Anchorage, AK 99503Phone: 907-868-8660 Fax: 907-868-8881

Corri Feige, GM Alaska

[email protected]

1996 20 Oil and gas exploration and production, Underground Coal Gasification (UCG), Gas toLiquids (GTL), Enhanced Oil Recovery (EOR).

ALASKA BUSINESS MONTHLY’S 2013 OIL&GASDIRECTORY

EXPLORATION & PRODUCTION

SUPPORT SERVICES, SUPPLIES & EQUIPMENT

AKCompany Top Executive Estab. Empls. Services

AKCompany Top Executive Estab. Empls. Services


Company

Top ExecutiveEstab.

AKEmpls. Services

3M Alaska11151 Calaska Cir.Anchorage, AK 99515Phone: 907-522-5200 Fax: 907-522-1645

Julie Morman, Gen. Mgr.

[email protected]

1976 12 3M manufactures a wide range of products covering many markets in Alaska. In the areaof natural resources, we provide products and services which support the oil/gas andmining industries in worker safety, electrical and communications, welding protection,fire and corrosion protection, cementing density control, filtration and spill control.

Acuren USA600 E. 57th Pl., Suite BAnchorage, AK 99518Phone: 907-569-5000 Fax: 907-569-5005

Dennis Lee, Managing Dir.

acuren.com

2002 240 Materials engineering, nondestructive examination and integrity management for the oiland gas, power, mining, transportation and construction industries.

Advanced Supply Chain International LLC3201 C St., Suite 308Anchorage, AK 99503Phone: 907-345-2724 Fax: 907-345-8621

Scott Hawkins, Pres.

[email protected]

1999 230 Supply chain management specializing in asset intensive resource industries.

AIMM TechnologiesPO Box 1086Kenai, AK 99611Phone: 907-283-7330 Fax: 907-335-5099

Brooks Bradford Sr., CEO

aimmtechnologies.com

1996 20 Specializing in tank cleaning & Hydrokinetic pipe cleaning. Onshore & offshore oilfield &rig support. Hydroblasting & pressure washing, Fin-Fan & heat exchanger cleaning.Onshore, offshore oilfield & rig support. Drill waste processing, management & disposal.Environmental waste cleaning, management & disposal. Vacuum truck service.

Air Liquide America L.P.6415 Arctic Blvd.Anchorage, AK 99518Phone: 907-562-2080 Fax: 907-564-9452

Robert Cook, Gen. Mgr.

airliquide.com

1905 73 Providing packaged and bulk gas, scientific and calibration gases, welding tools, fillermetals, hardgoods and machines to oilfield and pipeline constructors. Full line of rentalwelders and plasma equipment and repair (warranty and other) for all major weldingequipment and tool manufacturers.

Airgas USA LLC6350 Arctic Blvd.Anchorage, AK 99518Phone: 907-563-6644 Fax: 907-562-2090

William Sanborn, Reg. Pres., NorPac

airgas.com

1982 19 Airgas is the largest U.S. distributor of industrial, medical and specialty gases andwelding equipment and supplies. Airgas is also one of the largest distributors of safetyproducts in the U.S.

AK Supply Inc.8000 King St.Anchorage, AK 99518Phone: 907-562-3422 Fax: 907-562-3423

Ronald Smith, CEO

[email protected]

1992 21 Engineered flow products, valves, actuators, flanges, piping, pipeline saddles/supports,corrosion mitigation, control valves, valve lubricants/equipment, RedWing FRC clothing.Poly coatings, composite docks, road mats, structures, towers, buildings and foundationsystems, rig mats, Blast Proof / Fire Proof structural panels and off-site storage.

Alaska Air Cargo4100 Old Int'l Airport Rd.Anchorage, AK 99502Phone: 800-225-2752 Fax: 907-266-7808

Marilyn Romano, Reg. VP, Alaska

alaskacargo.com

1932 148 Goldstreak small package express, Petstreak animal express, priority and general airfreight services. Full ULD and charter services also available.

Alaska Airlines4750 Old Int'l Airport Rd.Anchorage, AK 99502Phone: 907-266-7230 Fax: 907-266-7229

Marilyn Romano, Reg. VP Alaska

alaskaair.com

1932 1,605 Alaska Airlines and its sister carrier, Horizon Air, together provide passenger and cargoservice to more than 90 cities in Alaska, Canada, Mexico, Hawaii and the Lower 48.

Alaska Analytical Laboratory1956 Richardson Hwy.North Pole, AK 99705Phone: 907-488-1271 Fax: 907-488-0772

Stefan Mack, PE/Pres.

[email protected]

2008 3 Environmental testing laboratory. Soil and water analysis for methods 8021B, AK101,AK102, AK103 and ADEC certified.

Alaska Commercial Development Group1246 Nobel St.Fairbanks, AK 99701Phone: 907-457-1861 Fax: 907-457-2781

Matthew L Greer, Pres. 1997 4 General contractor located in Fairbanks, Alaska who design/builds from the ground upwood framed industrial buildings. Has space for lease for oil/gas semi-truckers lookingfor affordable/secure/clean warehouse.

CompanyTop Executive Estab.

AKEmpls. Business Activity

Nabors Alaska Drilling Inc.2525 C St., Ste. 200Anchorage, AK 99503Phone: 907-263-6000

David Hebert, Gen. Mgr.

nabors.com

1962 350 Nabors Alaska conducts Arctic drilling operations on the North Slope of the BrooksRange, as well as in southern Alaska and the Cook Inlet. The company was involved inthe state's first commercial drilling operation in 1962 and is routinely selected to drill themost challenging and difficult wells.

NordAq Energy Inc.3000 A St., Suite 410Anchorage, AK 99503Phone: 907-646-9315 Fax: 907-646-9317

Robert Warthen, Pres.

[email protected]

2009 8 Natural gas exploration, Cook Inlet Basin & The North Slope. The Shadura find on northend of Kenai Peninsula expected to last 30 years. Offices in Anchorage and Kenai.nordaqenergy.com

Parker Drilling1420 E. Tudor Rd.Anchorage, AK 99507Phone: 907-339-4032 Fax: 907-339-4001

Richard Bohon, Gen. Mgr.

parkerdrilling.com

1934 134 Contract drilling, drilling and production rental tools, advanced rig design, engineering,rig construction, extended-reach drilling, drilling in environmentally sensitive and harsh/remote climates, training and HSE programs.

Pioneer Natural Resources Alaska Inc.700 G St.Anchorage, AK 99501Phone: 907-277-2700 Fax: 907-343-2193

Pat Foley, Pres.

[email protected]

2003 75 Pioneer is an independent oil and gas exploration and production companyheadquartered in Dallas, Texas. In Alaska, Pioneer operates the Oooguruk Unit on theNorth Slope.


SUPPORT SERVICES, SUPPLIES & EQUIPMENT AKCompany Top Executive Estab. Empls. Business Activities


Company

Top ExecutiveEstab.

AKEmpls. Services

Alaska Dreams Inc.2081 Van Horn Rd., #2Fairbanks, AK 99701Phone: 907-455-7712 Fax: 907-455-7713

Meini Huser, Pres./CEO

[email protected]

1994 25 Design, sales and construction for fabric covered steel buildings and pre-engineeredmetal buildings.

Alaska Hydraulics Inc.166 E. Potter Dr., Suite #1Anchorage, AK 99518Phone: 907-562-2217 Fax: 907-561-1262

Thomas Loran, VP

[email protected]

1976 25 Hydraulic repair and design, sales and service.

Alaska Investigation Agency LLC1064 S. Settlers Cir.Palmer, AK 99645Phone: 907-745-1133 Fax: 866-331-3617

Donna L. Anthony, Pres./CEO

[email protected]

2011 15 Workman's Comp Investigations, oilfield investigations, accident reconstruction,insurance investigations, pre-employment background checks, executive protection/bodyguard, surveillance, uncover investigations, school security, cell phone & towerextraction, criminal & civil investigations, and security consulting.

Alaska Marine Lines100 Mt. Roberts St., Suite 200Juneau, AK 99801Phone: 907-586-3790 Fax: 907-463-3298

Kevin Anderson, Pres.

[email protected]

1980 12 Twice weekly barge service to Southeast Alaska and weekly barge service to CentralAlaska. Charter and nonscheduled barge services.

Alaska Rubber Group5811 Old Seward Hwy.Anchorage, AK 99518-1479Phone: 907-562-2200 Fax: 907-561-7600

Janeece Higgins, Pres.

[email protected]

1981 54 Industrial and hydraulic hose and fittings, pumps, kamloks, belting, Enerpac and Landa.Hydraulic sales and repair. Certified wire rope and nylon slings with InfoChip Trackingtechnology. Anchorage, Fairbanks and Wasilla locations.

Alaska Sales and Service1300 E. Fifth Ave.Anchorage, AK 99501Phone: 907-265-7535 Fax: 907-265-7507

Diana Pfeiffer, Pres.

[email protected]

1944 223 Commercial and fleet, GM commercial vehicles, new and used vehicle sales, serviceand parts.

Alaska Ship & Drydock3801 Tongass Ave.Ketchikan, AK 99901Phone: 907-228-5302 Fax: 907-247-7200

Adam Beck, Pres.

[email protected]

1994 157 Shipbuilding and repair; advanced manufacturing.

Alaska Support Industry Alliance3301 C St., Suite 205Anchorage, AK 99503Phone: 907-563-2226 Fax: 907-561-8870

Rebecca Logan, Gen. Mgr.

[email protected]

1979 5 More than 500 statewide businesses, organizations and individuals that derive theirlivelihood from providing products and services to Alaska's oil and gas and miningindustries. Our membership currently employs more than 30,000 Alaskans.

Alaska Valve & Fitting Co.PO Box 230127Anchorage, AK 99523Phone: 907-563-5630 Fax: 907-563-4721

Jim Trolinger, Pres.

[email protected]/Nwus.aspx

1965 10 Instrumentation and fluid control, Swagelok Distributor of Alaska.

Alaska West Express1048 Whitney Rd.Anchorage, AK 99501Phone: 907-339-5100 Fax: 907-339-5117

Scott Hicks, Pres.

[email protected]/awe

1978 129 Alaska West Express provides truckload transportation throughout the United States andCanada, specializing in your shipment to and from Alaska, where we are the leader intransporting liquid- and dry-bulk products, hazardous and non-hazardous chemicals andpetroleum products.

Allied GIS Inc.8600 Spendlove Dr.Anchorage, AK 99516Phone: 907-333-2750 Fax: 907-333-2751

Gail Morrison, Pres.

[email protected]

2002 2 GIS, mapping for: oil & gas industry, spill response, environmental, land ownership,permitting, utility, programming, web services, ArcGIS Online, mobile apps, applicationdevelopment, software sales, training, CMMS, asset & facility management software/implementation, ESRI Business Partner, Adapx and VUEWork software resellers.

Alutiiq Oilfield Solutions LLC3452 Trailer St.Fairbanks, AK 99709Phone: 907-456-4433 Fax: 907-456-4439

Jeff Allison, Sr. VP of Operations

alutiiq.com

2001 20 We provide industrial coatings for the oil and gas industries as well as tundra andportable road matting.

Alyeska Pipeline Service Co.PO Box 196660, MS 542Anchorage, AK 99519-6660Phone: 907-787-8700 Fax: 907-787-8240

Thomas Barrett, Pres.

facebook.com/alyeskapipelinealyeska-pipe.com

1970 800 Alyeska Pipeline designed and built the 800-mile Trans Alaska Pipeline System; today itoperates and maintains the pipeline, its pump stations and the Valdez Marine Terminal.Alyeska has offices in Anchorage, Fairbanks and Valdez, and employees stationed allalong the line. In 2012 it celebrated 35 years of safe, reliable operations.

American Fast Freight Inc.5025 Van Buren St.Anchorage, AK 99517Phone: 907-248-5548 Fax: 907-243-7353

Zach Jacobson, Alaska Sales Mgr.

youtube.com/americanfastfreightamericanfast.com

1984 60 Ocean freight forwarding, freight consolidation, full loads, short- and long-termwarehousing, temperature protected, bypass mail and air freight, specialized equipment,heavy haul, project logistics, intra-state trucking, Alcan express, barge, distribution,military shipments, household goods.

Analytica Environmental Laboratories4307 Arctic Blvd.Anchorage, AK 99503Phone: 907-375-8977 Fax: 907-258-6634

Elizabeth Rensch, Business Dev. Mgr.

[email protected]

1991 20 Analytica is the largest state certified laboratory in Alaska, specializing in drinking water,wastewater and general water quality testing. Locations in Anchorage, Fairbanks, andWasilla, Alaska. Analytica is a wholly owned subsidiary of The Aleut Corporation.aleutcorp.com

APICC2600 Cordova St., Suite 105Anchorage, AK 99503Phone: 907-770-5250 Fax: 907-770-5251

Todd Bergman, Exec. Dir.

[email protected]

1998 6 Workforce development and career pathways for Alaska's oil, gas and mining industries,North Slope Training Cooperative (HSE), industry priority occupations report, mobileprocess and energy industry career briefcase, Alaska Engineering Academies andTeacher Industry Externships (TIE).

When Doyon needed to deliver an 8 million-pound drilling rig to a remote, man-made island in the Arctic, they called on Crowley to deliver.

Our solutions team designed, engineered and installed a temporary dock and causeway to safely deliver the rig to the island – and then removed all traces of the temporary facility to comply with permitting requirements after the successful rig delivery.

When you have a tough job that needs to be done right, you can count on Crowley – from concept through completion.







Crowley Delivers ProjeCt solutions

www.CrowleyAlaska.com 800-231-0272


SUPPORT SERVICES, SUPPLIES & EQUIPMENT AKCompany Top Executive Estab. Empls. Services


Company

Top ExecutiveEstab.

AKEmpls. Services

Arctic Controls Inc.1120 E. Fifth Ave.Anchorage, AK 99501Phone: 907-277-7555 Fax: 907-277-9295

Scott Allan Stewart, Pres.

[email protected]

1985 4 Arctic Controls Inc. is Alaska's leading expert in valves, flow meters, actuators,instrumentation, and process controls for commercial oil, gas, and water management.Providing professional expertise for all commercial applications and can assist you withestimates and recommendations.

Arctic Foundations Inc.5621 Arctic Blvd.Anchorage, AK 99518Phone: 907-562-2741 Fax: 907-562-0153

Edward Yarmak, Pres.

[email protected]

1972 15 Two-phase thermosyphons for long-term ground freezing - used for permafroststabilization, frozen dams, containment, etc.

ARCTOS LLC130 W. Int'l Airport Rd., Suite RAnchorage, AK 99518Phone: 907-632-1006 Fax: 866-532-3915

Kirsten K. Ballard, CEO

[email protected]

2007 6 ARCTOS specializes in ODPCP "C" Plans, full range spill prevention and responseplanning services, response management and support, project permitting, complianceassistance with state and federal oil pollution regulations. Project engineering, APIcertified tank, piping and AWS welding inspections, HSE and waste management plans.

ASRC Energy Services Inc.3900 C St., Suite 701Anchorage, AK 99503Phone: 907-339-6200 Fax: 907-339-6212

Jeff Kinneeveauk, Pres./CEO

[email protected]

1985 3,305 AES offers expertise from the earliest regulatory stage to exploration, drilling support,engineering, fabrication, construction, project management, operations and maintenanceand field abandonment.

ATCO Structures & Logistics Ltd.425 G St.Anchorage, AK 99501Phone: 907-677-6983 Fax: 907-677-6984

Harry Wilmot, Pres./COO

[email protected]

1947 2 ATCO Structures & Logistics offers complete infrastructure solutions to customersworldwide, including remote work force housing, portable offices and trailers, innovativemodular facilities, construction, site support services, operations support, catering andnoise reduction technologies.

Baker Hughes Inc.795 E. 94th Ave.Anchorage, AK 99515Phone: 907-267-3409 Fax: 907-267-3401

Ian Paterson, Dir., Alaska Ops

bakerhughes.com

1910 300 An international engineering firm, delivering technical solutions to the oil industry for over100 years. Reservoir services to drill bits, directional drilling, pumping services andcompletion equipment.

Bald Mountain AirPO Box 3134Homer, AK 99603Phone: 907-235-7969 Fax: 907-235-6602

Gary Porter, Dir. of Ops

[email protected]

1993 30 Single and multi-engine; 19 passenger, cargo and fuel delivery; VFR and IFR capable;turbine fleet for reliability; off-airport and arctic operations; FlightSafety trained crews;services on wheels, floats and skis; aerial scientific platforms; 100NM+ off shore surveycapability.

Beacon Occupational Health and Safety800 Cordova St.Anchorage, AK 99501Phone: 907-222-7612 Fax: 907-222-6976

Holly Hylen, Pres./CEO

[email protected]

1999 250 On-site medical staffing, safety staffing, full service third party administration drug andalcohol testing, occupational medicine, and work related injury and illness management.

Beaded StreamPO Box 190311Anchorage, AK 99519-0311Phone: 907-227-9421 Fax: 214-445-0420

Brian R. Shumaker, Owner/Dir. Eng.

[email protected]

2004 5 Through the manufacture and installation of patented multi-point TemperatureAcquisition Cables and satellite data loggers, BeadedStream LLC monitors and profilesground, snow, air, and water temperature data in real-time via the web.

Bering Marine6441 S. Airpark Pl.Anchorage, AK 99502Phone: 907-248-7646 Fax: 907-245-1744

Rick Gray, Pres.

[email protected]

1985 29 Bering Marine Corporation provides highly specialized, contracted marine services toreach water-locked villages and other remote Alaska locations. Bering Marine getsbuilding materials, equipment and gravel to some of Alaska's most isolated spots.

Bristol Engineering Services Corporation111 W. 16th Ave., Third FloorAnchorage, AK 99501Phone: 907-563-0013 Fax: 907-563-6713

Travis Woods, Sr. Civil Engineer/CEO

[email protected]

1994 17 Civil engineering, permitting and planning; total project management encompassingplanning, design and construction.

Bristow Alaska Inc1915 Donald Ave.Fairbanks, AK 99701Phone: 907-452-1197 Fax: 907-452-4539

Danny Holder, North America BU Dir.

[email protected]

1977 75 Helicopter transportation services.

Brooks Range Supply Inc.Pouch 340008Prudhoe Bay, AK 99734Phone: 907-659-2550 Fax: 907-659-2650

Eric Helzer, Pres./CEO

[email protected]

1982 40 Diverse range of automotive and heavy equipment parts, industrial and hydraulic hose,hardware, welding equipment, safety and MRO supplies, propane refilling, oil spillmaterials, lubricants, WSB fuel and oil enhancement products, hand and power tools,NAPA, True Value, VIPAR, IWDC Welding.

C2 North LLC4141 B St., Suite 200Anchorage, AK 99503Phone: 907-569-9122 Fax: 603-388-0793

Melanie Roller, Owner/Principal

[email protected]

2001 2 Small business certifications with an emphasis on Alaska Native corporations. Projectmanagement, technical writing and business solutions for the oil and gas industry.

Canrig Drilling Technology Ltd.301 E. 92nd Ave.Anchorage, AK 99515Phone: 907-561-2465 Fax: 907-561-2474

Jim Carson, Alaska District Mgr.

canrig.com

1989 12 Canrig provides capital equipment sales, services and rentals and enterprise solutions tothe upstream oil and gas industry.

Cardno ENTRIX1600 A St., Suite 304Anchorage, AK 99501Phone: 907-563-0438 Fax: 907-563-0439

Suzanne Ban, Anchorage Ops Mgr.

[email protected]

1984 12 Full-service, nationwide environmental consulting firm providing specialized technicalservices by more than 450 environmental professionals in environmental impactassessments (NEPA); environmental planning, permitting and compliance.

WM Energy Services

Waste Management Energy Services offers a variety of oilfield related services and solutions including on-site and off-site water and solids management, materials tracking and reporting, along with permitting and compliance assistance. We leverage our vast experience and resources to offer solutions that reduce cost, mitigate risks, build a better brand, and protect the planet.

We provide a single point of contact for all our customers so we can maintain effective communication, better understand the unique needs of each client, and develop new and proactive ways to minimize waste, maximize efficiencies and uncover resource value along your entire supply chain.

• Turnkeyremediation/siteservices

• Recyclingsolutions

• Wastetreatmentanddisposal

• Bioremediation

• Permittingandcompliance

• Resourcereuseandrecycling

For more information, please contact a WM Energy Services Representative at 8559733949 or [email protected]

Environmentallyresponsiblesolutionsthatmeetyourscheduleandhelpminimizerisks.

• Hazardousandnon-hazardouswastedisposal

• DeepWellInjection

• Transportationservices

• Drummanagement

• ISO9001and14001compliance

• GreenhouseGasReduction(GHG)strategies

A Complete Solutions Provider for the Oil and Gas Industry

NewAlaskaOffice:1519 Ship Avenue, Anchorage, Alaska 99501




Company

Top ExecutiveEstab.

AKEmpls. Services

Caribou Construction Inc.5100 Cordova St., Suite 206Anchorage, AK 99503Phone: 907-563-5444 Fax: 907-562-6448

Donald E. Pearson, Gen. Mgr.

[email protected]

1987 10 General oilfield support, heavy equipment, rubber track equipment, remote site camps,fuel containments, survival units, exploration and remote site cleanup.

Carlile Transportation Systems1800 E. First Ave.Anchorage, AK 99501-1833Phone: 907-276-7797 Fax: 907-278-7301

Linda Leary, Pres.

[email protected]

1980 500 Full-service transportation company.

CCI Industrial Services LLC560 E. 34th Ave., Suite 200Anchorage, AK 99503-4161Phone: 907-258-5755 Fax: 907-770-9452

A. Ben Schoffmann, Pres./CEO

[email protected]

1989 377 Corrosion-under-insulation refurbishment; asbestos and lead surveys and abatement;specialty coatings; sandblasting; tank and vessel cleaning; fire proofing; demolition andhazardous waste removal; operations, maintenance and construction; oil spill response;heat treat services.

CH2M HILL949 E. 36th Ave., Suite 500Anchorage, AK 99508Phone: 907-762-1500 Fax: 907-762-1595

Mark Lasswell, AK Bus. Grp. Pres./GM

[email protected]/alaska

1946 2,709 We offer consulting, engineering, procurement, logistics, fabrication, construction,construction management, operations and maintenance services all under one roof,supporting entire project life cycles. We support oil and gas, mining, environmental,water, power, transportation and government.

City Electric Inc.819 Orca St.Anchorage, AK 99501Phone: 907-272-4531 Fax: 907-264-6491

Gabriel Marian, Pres.

[email protected]

1946 125 Electrical and communications contracting NAICS; 237130, 238210.

Colville Inc.Pouch 340012Prudhoe Bay, AK 99734Phone: 907-659-3198 Fax: 907-659-3190

Eric Helzer, Pres./CEO

[email protected]

1981 45 Arctic fuel logistics contractor, solid waste services, industrial supply.

CONAM Construction Co.301 W. Northern Lights Blvd., Suite 300Anchorage, AK 99503Phone: 907-278-6600 Fax: 907-278-4401

Robert Stinson, Pres.

conamco.com

1984 100 General construction contractor specializing in design and construction of oil and gasfacilities and pipelines, mining facilities, water and sewer facilities, and other remoteinfrastructure projects.

Construction Machinery Industrial5400 Homer Dr.Anchorage, AK 99518Phone: 907-563-3822 Fax: 907-563-1381

Ken Gerondale, Pres./CEO

[email protected]

1985 108 CMI sells, rents and services heavy equipment.

CPD Alaska LLC (Crowley)201 Arctic Slope Ave.Anchorage, AK 99518Phone: 907-777-5505 Fax: 907-777-5550

Bob Cox, VP

[email protected]

1892 500 CPD operates fuel terminals in 20 locations in the railbelt and western Alaska, providinghome heating oil, jet fuel, diesel, gasoline and propane. During the summer, our bargesmake direct deliveries to over 200 western Alaska communities. Crowley proudlycelebrates 60 years of service to Alaska.

Craig Taylor Equipment733 E. Whitney Rd.Anchorage, AK 99501Phone: 907-276-5050 Fax: 907-276-0889

Lonnie G Parker, Pres.

[email protected]

1954 55 Factory authorized dealer for: Komatsu construction and mining, Bobcat loaders andexcavators, John Deere commercial and lawn tractors, Dynapac compaction rollers,Fecom land clearing attachments and carriers. Providing sales, parts and service.

Crowley Solutions201 Arctic Slope Ave.Anchorage, AK 99518Phone: 907-777-5464 Fax: 907-777-5550

Bruce Harland, VP

crowley.com

1892 500 Crowley Solutions was formed in 2010 to provide increased support services to the oiland gas industry including turnkey project management solutions, ocean towing, heavylift transportation services, spill response services, tanker escort and docking services inValdez.

Cruz Construction7000 E. Palmer Wasilla Hwy.Palmer , AK 99645Phone: 907-746-3144 Fax: 907-746-5557

Dave Cruz, Pres.

[email protected]

1990 65 Specializing in heavy civil construction and remote work locations throughout the state ofAlaska. Oilfield services and support, ice roads, ice pads, transportation and rig support.

Cruz Marine LLC7000 E. Palmer-Wasilla Hwy.Palmer, AK 99645Phone: 907-746-3144 Fax: 907-746-5557

Kevin Weiss, Sr. Marine Dir.

[email protected]

2008 10 Marine support for all Alaskan construction projects. Eco friendly tugs and barges tow inrivers, hard to reach coastal delta areas, and oceans. ABS Load line Vessels withdouble bottom fuel tanks.

DAT/EM Systems International8240 Sandlewood Pl., Suite 101Anchorage, AK 99507-3122Phone: 907-522-3681 Fax: 907-522-3688

Jeff F. Yates, Gen. Mgr.

[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.

Deadhorse Aviation Center LLC500 First St.Deadhorse, AK 99734Phone: 907-346-3247 Fax: 907-349-1920

Sherron Perry, Mgr.

[email protected]

1976 120 A multimodal aviation facility designed to meet the needs of both onshore and offshoreoil and gas development on the North Slope. The DAC has 2 large hangars, officespace, terminal, full-service medical facility, bedrooms and a full dining facility. The DACowns a gravel laydown yard with 10.4 acres of new gravel.

Delta Leasing LLC8101 Dimond Hook Dr.Anchorage, AK 99507Phone: 907-771-1300 Fax: 907-771-1380

Rudi von Imhof, Pres.

[email protected]

2002 22 Leasing and rentals of fleet trucks, SUV's, vans, and shuttle busses, construction andmining equipment, oil and gas equipment. Remote GM and Chrysler warranty repaircenters. Alaskan-owned. Deadline driven. Results oriented. Anchorage/Kenai/PrudhoeBay/Remote Alaska.




Company

Top ExecutiveEstab.

AKEmpls. Services

Delta Western Inc.420 L St., Suite 101Anchorage, AK 99501Phone: 800-478-2688 Fax: 206-213-0103

Kirk Payne, Pres.

deltawestern.com

1985 80 Fueling Alaska safely for over 25 years.

Denali Drilling8240 Petersburg St.Anchorage, AK 99507Phone: 907-562-2312 Fax: 907-562-5971

Ron Pichler, Pres.

[email protected] or [email protected]

1970 20 DDI provides geotechnical, environmental, mineral exploration, commercial water welland large diameter (8') shaft drilling. We also drill, install tie-backs and constructretaining walls. We have provided these services throughout Alaska since 1970. Wehave specialized equipment for on/offshore and heli-poratable drilling.

DHL Global Forwarding2000 W. Int'l Airport Rd.Anchorage, AK 99502Phone: 907-243-4301 Fax: 907-677-0900

John Witte, Reg. Mgr.

[email protected]

1970 10 Worldwide freight services featuring total Alaska coverage. Specializing in air cargo,trucking, express services, warehousing, storage solutions, supply chain and rail freight.

Dowland-Bach Corp.PO Box 230126Anchorage, AK 99523-0126Phone: 907-562-5818 Fax: 907-562-5816

Lynn C. Johnson, Pres.

[email protected]

1975 29 Wellhead control panels, NRTL listed electrical industrial control panels, chemicalinjection systems and custom stainless fabrication. Stocking distributor of stainless steeltubing, pipe, fittings and flanges. Design/build capability. Part of the Koniag family ofcompanies.

Doyon Universal Services LLC11500 C St., Suite 100Anchorage, AK 99515Phone: 907-522-1300 Fax: 907-522-3531

Thomas (Bob) Kean, Pres.

doyonuniversal.com

1946 900 Operational support including catering, housekeeping, facility maintenance and security.

Engineered Fire and Safety3138 Commercial Dr.Anchorage, AK 99501Phone: 907-274-7973 Fax: 907-274-6265

Matt Atkins, Gen. Mgr.

[email protected]

1986 20 Fire and gas detection and suppression system design, supply, installation and service.Alaska's only representative of Detector Electronics, Kidde Fire Systems, FenwalProtection Systems, Chemetron Fire Systems, EST/Edwards fire alarm, and Siemensfire alarm.

Era Helicopters LLC6160 Carl Brady Dr., Hangar 2Anchorage, AK 99502Phone: 907-550-8600 Fax: 907-550-8608

W. Randy Orr, VP

[email protected]

1948 175 Alaska's original helicopter company, safely flying customers since 1948. Offeringcharter services, O&G, mining, and flightseeing in Juneau and Denali National Park.

ESS Support Services Worldwide201 Post Rd.Anchorage, AK 99501Phone: 907-344-1207 Fax: 907-865-9850

Larry Weihs, COO

[email protected]

1986 300 Restaurants, lounges and espresso operations. Catering services: small to large remotesite facilities for short- or long-term projects, including offshore drilling platforms,employee staffing and leasing, in-flight services, governmental agency support servicesand Impressions Catering.

Everts Air CargoPO Box 61680Fairbanks, AK 99706Phone: 907-450-2300 Fax: 907-450-2320

Robert W. Everts, Pres./CEO

[email protected]

1995 250 An Alaskan owned and operated air carrier that provides scheduled freight service to 12rural communities and charter service to anywhere in Alaska with suitable runwayconditions. Cargo Charters, HAZMAT, bulk fuel, small package and oversize. Based inAnchorage and Fairbanks.

Fairweather LLC9525 King St.Anchorage, AK 99515Phone: 907-346-3247 Fax: 907-349-1920

Sherron Perry, Pres.

fairweather.com

1977 120 Fairweather is an Alaska-based company specializing in remote medical services,weather forecasting, airport equipment, bear guards and expediting for the naturalresources industry. Our experienced professionals and our comprehensive logisticsprogram enable us to accommodate your project needs.

Fircroft Inc.2550 Denali St., Suite 1202Anchorage, AK 99503Phone: 907-569-8100 Fax: 907-569-8099

Sherill Lumba, Branch Mgr.

[email protected]

2009 50 Fircroft is a leading provider of technical recruitment solutions to a number of specialistindustries, active in over 30 countries worldwide. Our key sectors include: oil & gas,petrochemicals & process, automotive & aerospace, nuclear & power, mining & mineralsand general engineering.

Flint Hills Resources Alaska LLC1100 H&H Ln.North Pole, AK 99705Phone: 907-488-2741 Fax: 907-488-0074

Mike Brose, VP

[email protected]

1977 132 Refiner and distributor of gasoline, diesel, jet fuel and asphalt.

Foundex Pacific Inc.2261 Cinnabar Lp.Anchorage, AK 99507Phone: 907-522-8263 Fax: 907-522-8262

Howard J. Grey, Mgr.

[email protected]

1983 20 Provide geotechnical and environmental drilling services. Equipped for drilling with airand mud rotary, sonic, coring and auger tools. Some of our equipment is speciallydesigned for helicopter support.

Fugro5761 SIlverado Way, Suite OAnchorage, AK 99518Phone: 907-561-3478 Fax: 907-561-5123

Scott Widness, Alaska Div. Mgr.

[email protected]

1994 11 Offshore: marine geophysics and seafloor mapping, metocean services andgeotechnical investigations. Onshore: aerial and satellite mapping, precise positioning,geotechnical investigations, and regulatory and environmental assessments.

GeoTek Alaska Inc.PO Box 11-1155Anchorage, AK 99511-1155Phone: 907-569-5900 Fax: 907-929-5762

Christopher Nettels, Pres.

[email protected]

2002 15 We specialize in the acquisition of subsurface data for both the environmental andgeotechnical professional communities. If your needs involve the characterization of thesubsurface for either environmental assessments or geotechnical data acquisition, weprovide drilling and geophysical services.

Global Diving & Salvage Inc.5304 Eielson St.Anchorage, AK 99518Phone: 907-563-9060 Fax: 907-563-9061

Devon Grennan, Pres.

[email protected]

1979 23 We specialize in portable mixed gas and saturation diving with capabilities to 1,000 feetand are able to provide a variety of underwater maintenance, repair, installations andinspections. Full project management services and engineering support for undertakingsthat require technical underwater services.




Company

Top ExecutiveEstab.

AKEmpls. Services

Global Services Inc.1701 E. 84th Ave.Anchorage, AK 99507Phone: 907-349-3342 Fax: 907-349-2015

Kurt Winkler, Pres.

facebook.com/globalsrvcglobalsrvc.com

1982 15 Remote camps, industrial catering, and facilities management.

Golder Associates Inc.2121 Abbott Rd., Suite 100Anchorage, AK 99507Phone: 907-344-6001 Fax: 907-344-6011

Mark Musial, Principal/Mgr.

golder.com

1980 40 Arctic and geotechnical engineering, groundwater resource development, environmentalsciences and remedial investigation.

Granite Construction Company11471 Lang St.Anchorage, AK 99515Phone: 907-344-2593 Fax: 907-344-1562

Derek Betts, Region Mgr.

[email protected]

1922 55 Public and private heavy civil construction, design-build, construction aggregates,recycled base, warm and hot mix asphalt, road construction, bridges, piling, mineinfrastructure and reclamation and sitework.

Great Northwest Inc.PO Box 74646Fairbanks, AK 99707Phone: 907-452-5617 Fax: 907-456-7779

John Minder, CEO

[email protected]

1976 250 Heavy highway construction, aggregate production, paving, underground utilities.

Halliburton Energy Services6900 Arctic Blvd.Anchorage, AK 99518Phone: 907-275-2600 Fax: 907-275-2650

Chris Schafer, District Mgr.

halliburton.com

1966 500 Halliburton offers a broad array of oilfield technologies and services to upstream oil andgas customers worldwide.

Hawk Consultants LLC670 W. Fireweed Ln., Suite 201Anchorage, AK 99503Phone: 907-278-1877 Fax: 907-278-1889

Maynard Tapp, Managing Member

[email protected]

1985 70 Consulting services, project control, management, cost engineers, QA/QC consultants,maintenance coordinators, supervision/project coordinators.

Hector's Welding Inc.2473 Old Richardson Hwy.North Pole, AK 99705Phone: 907-488-6432 Fax: 907-488-8385

Ken Therriault, VP/Gen. Mgr.

[email protected]

1956 6 Steel sales, iron fabrication: shear, brake, roll, Iron Worker and 10' X 24' plasma table.

High Tide Exploration2775 N. Hematite Dr.Wasilla, AK 99654Phone: 907-354-3132 Fax: 907-354-3132

Chris Hoffman, Owner

[email protected]

2010 2 We gather underwater video to depths of 1,000 ft using our Remotely Operated Vehiclethroughout Alaska and locations worldwide. The ROV can be deployed quickly and canwork from a variety of platforms. As biologists, we are well suited to describe underwaterhabitat or can team with engineers to assess underwater infrastructure.

Independent Lift Truck of Alaska1200 E. 70th Ave.Anchorage, AK 99518Phone: 907-344-3383 Fax: 907-344-8366

Wayne Dick, Pres.

[email protected]

1982 22 Dealers for CAT, Mitsubishi, Manitou, Maximal and Bendi forklifts; GEHL constructionequipment, skid steer loaders, telehandlers and mini excavators; Skytrack manlifts,scissor lifts and zoom booms; Wacker construction equipment; as well as parts, salesand service for most all makes and types of equipment, new and used.

Inlet Petroleum Co.459 W. Bluff Dr.Anchorage, AK 99501Phone: 907-274-3835 Fax: 907-272-8151

Joel Lawrence, Pres.

[email protected]

1986 42 For 25 years, Inlet Petroleum Company has supplied fuels, lubricants and relatedpetroleum products to a wide array of industries and businesses.

Intertek Testing Service NA Inc.22887 NE Townsend WayFairview, OR 97024Phone: 907-561-1077 Fax: 907-561-1679

Greg Tiemann, Exec. VP

[email protected]

1896 1 Third party testing laboratory for product safety testing of electrical, mechanical, buildingproducts, sanitation and wood or gas fired appliances. This includes the oil and gasindustries and seafood processing plants throughout Alaska.

Jacobs4300 B St., Suite 600Anchorage, AK 99503Phone: 907-563-3322 Fax: 907-563-3320

Terry Heikkila, Dir. Pacific Rim

jacobs.com

1947 90 Professional services supporting federal & energy clients. AK expertise includesenvironmental planning, permitting, compliance, investigation, remediation & emergencyresponse; energy conservation (retro-commissioning); remote logistics; design; planning;risk & construction management.

Judy Patrick Photography511 W. 41st Ave., Suite 101Anchorage, AK 99503Phone: 907-258-4704 Fax: 907-258-4706

Judy Patrick, Owner

[email protected]

1984 1 Creative photography for oil and gas, mining, construction and transportation industriesin North America.

Kakivik Asset Management LLC560 E. 34th Ave., Suite 200Anchorage, AK 99503-4161Phone: 907-770-9400 Fax: 907-770-9450

A. Ben Schoffmann, Pres./CEO

[email protected]

1999 185 Nondestructive testing, internal and external corrosion investigations, quality programmanagement, integrity program management, field chemical/corrosion inhibitionmanagement, heat treat, corrosion-under-insulation investigation, infrared thermography,rope access technology, and in-line inspection data interpretation.

Kiewit Infrastructure West Co.2000 W. Int'l Airport Rd., #C6Anchorage, AK 99502Phone: 907-222-9350 Fax: 907-222-9380

Pat Harrison, Pacific NW Area Mgr.

[email protected]/northwest

1947 50 Heavy civil construction including transportation, marine, dams and resourcedevelopment.

Little Red Services Inc.3700 Center Point Dr., Suite 1300Anchorage, AK 99503-5393Phone: 907-349-2931 Fax: 907-349-2750

Douglas Smith, Pres./CEO

[email protected]

1983 148 Hot oil, fluid heating, and pumping services throughout Alaska.

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 Service In Alaska: 800-478-7000In Washington: 800-562-4735


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Lounsbury & Associates5300 A St.Anchorage, AK 99518Phone: 907-272-5451 Fax: 907-272-9065

Jim Sawhill, Pres.

[email protected]

1949 70 Civil engineering, land surveying, planning, construction management. Servicing localand state government, oil and gas industry and more.

Lynden Air Cargo6441 S. Airpark Pl.Anchorage, AK 99502Phone: 907-243-7248 Fax: 907-257-5124

Judy McKenzie, Pres.

[email protected]

1996 144 Charter air cargo service. Scheduled air cargo and express package service.

Lynden International6441 S. Airpark Pl.Anchorage, AK 99502Phone: 907-243-6150 Fax: 907-243-2143

David Richardson, Pres.

[email protected]/lint

1980 42 Air cargo and express-package services, nonscheduled and scheduled airtransportation, air courier services, freight transportation services and local deliveryservices.

Lynden Logistics6441 S. Airpark Pl.Anchorage, AK 99502Phone: 907-245-1544 Fax: 907-245-1744

Alex McKallor, Pres.

[email protected]

1984 3 Arrangement of freight transportation, information management and logistical services.

Lynden Transport Inc.3027 Rampart Dr.Anchorage, AK 99501Phone: 907-276-4800 Fax: 907-257-5155

Paul Grimaldi, Pres.

[email protected]/ltia/

1954 148 Full-service, multi-mode freight transportation to, from and within Alaska.

M-I SWACO, A Schlumberger Company721 W. First Ave.Anchorage, AK 99501Phone: 907-646-3200 Fax: 907-279-6729

Wynn Fontenot, Regional VP

[email protected]

1934 209 Oilfield services and drilling mud products.

MagTec Alaska LLC43385 Kenai Spur Hwy.Kenai, AK 99611Phone: 907-394-6305 Fax: 907-335-6313

Ryan Andrew Peterkin, Pres.

[email protected]

2008 100 Oilfield equipment rental and project support. Logistic service, North Slope camps,equipment sales and service. Generators 20KW to 2meg, heaters, trucks, vans andflatbeds. Based in Kenai with a camp and service center in Deadhorse.

Maritime Helicopters3520 FAA Rd.Homer, AK 99603Phone: 907-235-7771 Fax: 907-235-7773

Bob Fell, Dir. of Ops.

[email protected]

1973 40 Maritime Helicopters supports marine, petroleum and construction industries as well asstate and federal agencies. Maritime owns the Maritime Maid, an 86' vessel equipped forhelicopter operations. We own and operate 6-passenger Bell 407, Bell Long Rangersand 4-passenger Bell Jet Ranger helicopters.

D o i n g o u r p a r tto ke e p th ing s mov ing

i n A l a s k a .

Alaska

Every day our North Pole refi nery processes North

Slope crude oil that ends up as jet fuel, gasoline, home

heating oil or asphalt. Each is integral in the day-to-day

life of just about every Alaskan. We’re optimistic about

Alaska’s future and look forward to continuing to do our

part to help keep the state’s economic engines turning.

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Marsh Creek LLC2000 E. 88th Ave.Anchorage, AK 99507Phone: 907-258-0050 Fax: 907-279-5710

Mick McKay, CEO

[email protected]

2004 140 Energy systems, environmental, construction, telecommunications.

Michael Baker Jr. Inc.1400 W. Benson Blvd., Suite 200Anchorage, AK 99503Phone: 907-273-1600 Fax: 907-273-1699

Jeffrey Baker, AK Office Principal

mbakercorp.com

1942 45 Engineering - pipeline, H&H, geotechnical, mechanical, civil, structural; GIS and LiDARmapping; design; NEPA and permitting.

Million Air Anchorage6160 Carl Brady Dr.Anchorage, AK 99502Phone: 907-550-8500 Fax: 907-550-8502

Randy Orr, Pres./Gen. Mgr.

[email protected]/FBO/anc.aspx

1979 35 Corporate and general aviation, fixed based operation: Provide VIP services to privateaircraft. Facilities consist of more than 10 acres of paved secure ramp space, fourexecutive hangars and office space. FBO services, 24 hour operations.

Motion Industries Inc. (Anchorage)611 E. Int'l Airport Rd.Anchorage, AK 99518Phone: 907-563-5565 Fax: 907-563-5536

Chris Ransom, Anch. Branch Mgr.

motionindustries.com

2007 7 A leading distributor of industrial maintenance, repair and operation (MRO) replacementparts (over 5.2 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies,seals, process pumps and material handling.

Motion Industries Inc. (Fairbanks)1895 Van Horn Rd., Unit AFairbanks, AK 99701Phone: 907-452-4488 Fax: 907-456-8840

Brad Deweese, Fairbanks Branch Mgr.

motionindustries.com

1970 5 A leading distributor of industrial maintenance, repair and operations (MRO)replacement parts (over 5.2 million parts), including bearings, power transmission,hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial and safetysupplies, process pumps, seals and material handling.

MWH1835 S. Bragaw St., Suite 350Anchorage, AK 99508Phone: 907-248-8883 Fax: 907-248-8884

Chris Brown, Alaska Reg. Mgr.

[email protected]

1977 40 Water, wastewater, environmental remediation, permitting and power.

N C Machinery6450 Arctic Blvd.Anchorage, AK 99518Phone: 907-786-7500 Fax: 907-786-7580

John J. Harnish, Pres./CEO

[email protected]

1926 248 Caterpillar machine sales, parts, service and rental. Caterpillar engines for marine,power generation, truck, petroleum and industrial applications. Sales and rental ofCaterpillar and other preferred brands of rental equipment and construction supplies.

Nalco Company3000 C St., Suite 204Anchorage, AK 99503Phone: 907-563-9866 Fax: 907-563-9867

Derek Lewis

[email protected]

1928 17 Nalco Company is the world's leading water treatment and process improvementcompany. Helping customers reduce energy, water and other natural resourceconsumption, minimizing environmental releases while boosting the bottom line throughinnovative chemistry and dedicated personnel in Alaska.

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NANA Construction LLC1800 W. 48th Ave., Suite GAnchorage, AK 99517Phone: 907-265-3600 Fax: 907-265-3699

Ralph McKee, Pres.

[email protected]

2008 205 Full service oilfield construction, fabrication, operations and maintenance capabilities.Truckable modules, blast resistant walls and modules, remote worker' camps, officesand office complexes, Envirovacs, Tool Cribs, pipe and steel fabrication, fieldconstruction, project and construction management.

NANA WorleyParsonsPO Box 111100Anchorage, AK 99511Phone: 907-273-3900 Fax: 907-273-3990

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.

Naniq Global LogisticsPO Box 240825Anchorage, AK 99524Phone: 907-345-6122 Fax: 907-345-6125

Paull Gillett , COO

[email protected]

2005 10 Worldwide logistics, including ground, air, and ocean.

NMS5600 B St.Anchorage, AK 99518Phone: 907-273-2400 Fax: 907-273-2424

Mary P. Quin, Pres.

[email protected]

1974 2,200 Camp services, food and facilities management, security, hotel management andstaffing.

NMS Security5600 B St.Anchorage, AK 99518Phone: 907-273-2400 Fax: 907-273-2424

Ron Otte, VP Ops, Security

nmssecurity.com

1974 2,200 Providing security services in Alaska since 1974, we serve a wide variety of clientsincluding federal, state and local governments, corporate facilities, health care providers,manufacturing centers, the telecommunications industry and museums with anexpansive array of security services.

NMS Staffing341 W. Tudor Rd., Suite 202Anchorage, AK 99503Phone: 907-729-5570 Fax: 907-729-5579

Tom Gilbert, VP Ops

[email protected]

1991 2,200 Dedicated to finding and placing the most qualified employees in various types of skilledand technical positions. We partner with each client, getting to know exactly what yourstaffing needs are so we can find that perfect match. Our highly trained and skilledrecruiters seek out the best talent.

NORCON Inc.949 E. 36th Ave., Suite 143Anchorage, AK 99508Phone: 907-349-0821 Fax: 907-275-6300

Thomas Arnold, Pres.

[email protected]

1974 317 Full service general contractor specializing in multi-craft services to the oil and gasindustry and inside/outside electrical and communication services to the powergeneration/distribution and communication industries.

Nordic-Calista Services219 E. Int'l Airport Rd., Suite 200Anchorage, AK 99518Phone: 907-561-7458 Fax: 907-563-8347

Noel Therrien, Ops. Mgr.

[email protected]

1986 123 Workovers, completions, coiled tubing drilling, rotary drilling, remote camp leasing andcatering services.

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North Star Terminal & Stevedore Co.790 Ocean Dock Rd.Anchorage, AK 99501Phone: 907-263-0120 Fax: 907-272-8927

Jeff Bentz, Pres.

[email protected]

1950 50,150 Stevedore, marine logistics and operated crane services. We are also providing state ofthe art driven foundations with our ABI Mobile Ram Machines.

Northern Air Cargo3900 Old International Airport Rd.Anchorage, AK 99502Phone: 907-243-3331 Fax: 907-249-5191

David W. Karp, Pres./CEO

[email protected]

1956 350 The Northern Air Cargo family of companies offer scheduled and charter cargo servicesthroughout Alaska, the Lower 48 and North America as well as aircraft maintenance andground handling services.

Northern Land Use Research Alaska LLC234 Front St.Fairbanks, AK 99701Phone: 907-474-9684 Fax: 907-474-8370

Burr J. Neely, Gen. Mgr.

[email protected]

1991 18 National Historic Preservation Act Section 106 assessments; identification, evaluation,mitigation services-prehistoric and historic archaeology, historic architecture, culturallandscapes, and subsistence investigations; documents to satisfy NEPA and permittingrequirements. Statewide services-cultural resource regulatory compliance; consultation.

Nu Flow AK1301 E. 71st Ave.Anchorage, AK 99518Phone: 907-677-2144 Fax: 907-677-2566

Joe Jaime, Pres.

nuflowak.com

1987 10 Nu Flow installs blown-in epoxy coatings & pull-in-place structural liners to failing smalldiameter pipe systems & rehabilitates several types of potable, drain & mechanical pipesystems in residential or commercial buildings. Our patented & unique green repipealternatives tech. saves time, hassle and money v. traditional pipe replacement.

Offshore Systems Inc. (Anchorage)3301 C St., Suite 201Anchorage , AK 99503Phone: 907-646-4680 Fax: 907-646-1430

Rick Wilson, Bus. Mgr.

offshoresystemsinc.com

1982 20 OMSI oil and gas production platforms, back up oil spill response efforts, dock facility inWestern Alaska with 1,500 linear feet dock space, stevedoring, warehousing, coldstorage, material handling. Statewide service.

Offshore Systems Inc. (Dutch Harbor)Mile 4 Captains Bay Rd.Dutch Harbor , AK 99692Phone: 907-581-1827 Fax: 907-581-1630

Rick Wilson, Bus. Mgr.

offshoresystemsinc.com

1982 40 Since 1983, Offshore Systems, Inc. (OSI) has been the premiere fuel and dock facility inWestern Alaska. 1,500 linear feet of dock space, around-the-clock stevedoring services,secure, dry warehousing and cold storage, and material handling equipment.

Oil & Gas Supply Co.6160 Tuttle Pl.Anchorage, AK 99507Phone: 907-344-2512 Fax: 907-349-7433

Jackie Brunton, Pres.

[email protected]

1995 9 Premier Aeroquip hydraulic distributor. Fabricator of industrial and hydraulic hoseassemblies. Sales and repair of hydraulic motors,pumps,valves and cylinders. StockingSwagelok stainless tube, fittings and valves in Kenai warehouse.

Olgoonik Oilfield Services3201 C St., Suite 700Anchorage, AK 99503Phone: 907-868-5112 Fax: 907-562-8751

Kevin Hand, Pres.

[email protected]

2009 26 Marine, air and land logistics support (offshore vessel support, supply chainmanagement). Downhole tooling, drilling and work-over consultation (well plug andabandonment, site preparation and remediation, on-site supervision). Land basedinfrastructure and support personnel (facilities, aviation, exploration support).

Stay connected & sign up for

email alerts at www.PenAir.com

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PacArctic Logistics LLC4300 B St., Suite 407Anchorage, AK 99503Phone: 907-887-4252 Fax: 907-562-5258

King Hufford, Pres.

[email protected]

2010 25 Full service logistics and transportation. Scheduled barge service from Olympia, WA toPort MacKenzie, AK.

Pacific Alaska Freightways Inc.431 E. 104th Ave.Anchorage, AK 99515Phone: 907-336-2567 Fax: 907-336-1567

Ed Fitzgerald, CEO

[email protected]

1961 55 Transports freight between the Lower 48 and Alaska. Trucking services in Alaska. Assetbased, PAF terminals located in Tacoma, WA and Anchorage. Terminals in Fairbanks,Soldotna and Kodiak. Consolidation center in Chicago, Il.

Paramount Supply Company7928 King St.Anchorage, AK 99518Phone: 907-349-0280 Fax: 907-349-0281

Jay Goold, Branch Mgr.

[email protected]

1982 5 Paramount Supply Company is an industrial wholesaler, founded in 1954 by JohnHagen. Paramount quickly built its reputation with quality products and exceptionalservice. That tradition which literally began out of the trunk of the founders car, continuestoday. Now serving Southeast Alaska with a sales office in Ketchikan!

Peak Oilfield Service Co. LLC2525 C St., Suite 201Anchorage, AK 99503Phone: 907-263-7000 Fax: 907-263-7070

Mike O'Connor, Pres.

[email protected]

1987 553 Oilfield general contracting, heavy civil construction, ice-road construction, heavy cranesupport, drilling support, all-terrain vehicle transportation and remote camps, powergeneration and communication facility fabrication.

Petro Marine Services3201 C St., Suite 302Anchorage, AK 99503Phone: 907-562-5000 Fax: 907-273-8242

Carol Ann Lindsey, CEO

[email protected]

1959 110 Serving the unique petroleum needs of a broad range of Alaskan industries, includingfishing, home fuel sales, power generation, tourism, timber, transportation, construction,mining, and retail gasoline.

Petroleum Equipment & Service Inc.5631 Silverado WayAnchorage, AK 99518Phone: 907-248-0066 Fax: 907-248-4429

Kevin Durling, Pres.

[email protected]

1983 22 We are in the business of supplying special products in the Alaska oil and gas market.Representing the following industry leaders: TESCO, Halliburton drill bits, Weatherfordcementation products and Tam packers.

Petrotechnical Resources of Alaska LLC3601 C St., Suite 1424Anchorage, AK 99503Phone: 907-272-1232 Fax: 907-272-1344

Tom Walsh, Managing Partner

[email protected]

1997 90 Alaska's oil and gas consultants specializing in geoscience, engineering, projectmanagement, seismic and well data.

Pinnacle Mechanical Inc.5821 Arctic Blvd., Unit DAnchorage , AK 99518Phone: 907-336-4328 Fax: 907-376-4329

Janice Kittoe, Pres.

Facebook.compinnaclemechanicalinc.com

1999 14 Specializing in providing quality commercial and industrial plumbing, heating and airconditioning for new construction, remodels, and tenant improvements. facebook.com/#!/PinnacleMechanicalIncorporated

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PND Engineers Inc.1506 W. 36th Ave.Anchorage, AK 99503Phone: 907-561-1011 Fax: 907-563-4220

John Pickering, Pres.

pndengineers.com

1979 80 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 Fax: 907-278-3255

David Matthews, VP/AK Area Mgr.

[email protected]

1974 200 Pipeline, power, heavy industrial construction, EPC and consulting services.Infrastructure construction services provider.

Production Testing Service440 E. 100th Ave.Anchorage, AK 99515-2603Phone: 907-344-2024 Fax: 907-344-2022

Robert Hoff, Pres.

[email protected]

1988 9 Well testing, equipment rental and engineering.

Professional Business Services Inc.807 G St., Suite 200Anchorage, AK 99501Phone: 907-279-2679 Fax: 907-276-5758

Joan Stolle, Pres.

[email protected]

1978 50 Providing people for professional, technical, and administrative positions for oil and gasindustry clients on a preferred and sole source contact basis. Staffing services includeboth contract and permanent positions.

Puget Sound Pipe & Supply Co.2120 Spar Ave.Anchorage, AK 99501Phone: 907-277-7473 Fax: 907-277-9656

Scott English, Alaska Div. Mgr.

[email protected]

1984 30 Alaska's largest supplier of pipe, valves and fittings to Alaska oilfields. Two locations inAlaska: Anchorage and Kenai.

Quality Equipment Sales & Services11801 S. Gambell St.Anchorage, AK 99515Phone: 907-349-6215 Fax: 907-349-2332

Ray Belanger, Pres.

[email protected]

1982 11 Wholesale motor vehicle merchant. Thomas-Built buses, American La France Fireapparatus, Unimog all-terrain truck, snow and ice control equipment, highwaymaintenance equipment, street sweepers and scrubbers. Automotive/truck up fitter andrepair facility.

Schlumberger Oilfield Services2525 Gambell St., Suite 400Anchorage, AK 99503Phone: 907-273-1700 Fax: 907-561-8317

Lees Rodionov, Gen. Mgr.

schlumberger.com

1956 866 Provides people and technology, working together to offer exploration and productionservices during the life cycle of the oil and gas reservoir.

Security Aviation6121 S. Airpark Pl.Anchorage, AK 99502Phone: 907-248-2677 Fax: 907-248-6911

Stephen "Joe" Kapper, Pres.

[email protected]

1985 25 24/7 on-demand aircraft charter services: express package service, passenger, freightand medical transportation.

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Seekins Ford Lincoln Inc.1625 Seekins Ford Dr.Fairbanks, AK 99701Phone: 907-459-4000 Fax: 907-459-4057

Ralph Seekins, Pres.

[email protected]

1977 119 Auto dealership providing services to purchase, finance, or service a new or pre-ownedLincoln.

Shoreside Petroleum Inc.6401 Lake Otis Pkwy.Anchorage, AK 99507Phone: 907-344-4571 Fax: 907-349-9814

Kurt Lindsey, Pres.

[email protected]

1981 95 Fuel and lubricant distributor specializing in customer service while supplying Alaskaindustry: oil and gas, construction, commercial fishing, marine, aviation, trucking andretail/commercial petroleum fueling sites.

Siemens Industry Inc.5333 Fairbanks St., Unit BAnchorage, AK 99518Phone: 907-563-2242 Fax: 907-563-6139

Leverette Hoover, Gen. Mgr. AK

[email protected]

1982 100 Energy Services Company (ESCO)/Total Building Integrator: to include BuildingAutomation/Energy Management control systems, fire alarm, HVAC mechanicalsystems, security (card access, CCTV, intrusion, etc.), audio and video solutions andmass notification systems.

SLR International Corporation2700 Gambell St., Suite 200Anchorage, AK 99503Phone: 907-222-1112 Fax: 907-222-1113

Brian G. Hoefler, Alaska Mgr.

[email protected]

2000 88 Air permitting, air measurements, project permitting, environmental compliance, siteinvestigation, remediation, risk assessment and oil spill contingency planning.

SolstenXP Inc.310 K St., Suite 700Anchorage, AK 99501Phone: 907-279-6900 Fax: 907-264-6190

Jesse Mohrbacher, Pres./CEO

[email protected]

1993 90 SolstenXP is an EPCM project life cycle petroleum and natural resource servicescompany headquartered in Anchorage, Alaska. We provide project management andcontracting services for exploration and production operations, including permitting andregulatory coordination, drilling and more.

Span Alaska Transportation Inc.PO Box 878Auburn, WA 98071Phone: 253-395-7726 Fax: 253-395-7986

Mike Landry, Pres.

[email protected]

1978 57 Freight transportation services to and from Alaska, less-than-truckload and truckload.Steamship and barge service to Railbelt area of Alaska. Barge service to Juneau andSoutheast Alaska. Overnight service from Anchorage to Fairbanks and the KenaiPeninsula.

Spill Shield Inc.5610 Silverado Way, Suite A10Anchorage, AK 99518Phone: 907-561-6033 Fax: 907-561-4504

Ken Bauer, Sales Mgr.

[email protected]

1992 2 Supplier for Smart Ash, Oil Away, Drug Terminator and MediBurn incinerators.Absorbents, water scrubbers, oil spill response kits and related oil spill cleanup products.We also supply the Titan fluid recycler that will clean diesel fuel or low viscosity hydraulicoil at 3 or 6 gallons per minute. We are also supplier of Super Sacks.

Statewide Petroleum Service6108 Petersburg St.Anchorage, AK 99507Phone: 907-562-3344 Fax: 907-562-9044

John Hillborn, Pres.

statewidepetroleum.com

1983 6 Fuel system installation and maintenance throughout the state of Alaska and beyond.

.....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

www.spanalaska.com

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Steelfab2132 Railroad Ave.Anchorage, AK 99501Phone: 907-276-4303 Fax: 907-276-3448

Richard Faulkner, Pres.

steelfabak.com

1988 55 Alaska steel source.

Superior Machine & Welding Inc.1745 Ship Ave.Anchorage, AK 99501Phone: 907-278-3944 Fax: 907-277-4999

Jantina Lunsford, Pres.

[email protected]

1950 10 Full service machining shop and oilfield servicing company.

Surveyors Exchange Co.3695 Springer St.Anchorage, AK 99503Phone: 907-561-6501 Fax: 907-561-6525

David Larry Wilmarth, Owner

[email protected]

1969 20 Satellite phone and two-way radio specialists, auto-desk software, surveyinginstruments, sales, rentals and service.

Swagelok Northwest (US)6160 Tuttle Place, Suite AAnchorage, AK 99507Phone: 907-563-5630 Fax: 503-288-7919

Jim Trolinger, Pres.

[email protected]/nwus

2003 8 We are a high-end fluid system products and solutions provider. We offer energymanagement, industrial products and services, fluid system assemblies, training andrentals.

Swift Worldwide Resources3111 Denali St., Suite 102Anchorage, AK 99503Phone: 907-222-4100 Fax: 907-222-4101

Leslie Lockhart, Regional Mgr.

SwiftWWR.com/Alaska

2009 8 Swift Worldwide Resources specializes in providing manpower exclusively for the globaloil & gas industry. For over 30 years, our proven process has matched qualifiedcandidates with many of the world's largest oil & gas companies, including majoroperators, independent operators, oil & gas service companies, and EPC companies.

Taiga Ventures2700 S. Cushman St.Fairbanks, AK 99701Phone: 907-452-6631 Fax: 907-451-8632

Mike Tolbert, Pres.

[email protected]

1979 20 Provides all supplies necessary for remote work. Provides logistical support (portablecamp, food and vehicles) for environmental cleanups statewide. Full-scale expeditingservice to include well and water monitoring pipe and supplies. Also in Anchorage at 351E. 92nd., 245-3123.

TecPro Ltd.816 E. Whitney Rd.Anchorage, AK 99501Phone: 907-348-1800 Fax: 855-348-1830

Cynthia Saunders, Pres.

[email protected]

1997 20 TecPro offers electrical contracting services, UL Listed industrial control systemintegration, and security integration services (video, access, alarm). Specialties includeSCADA and PLC design, fabrication, installation and programming.

Tesoro Alaska Co.1601 TidewaterAnchorage, AK 99501Phone: 907-261-7221 Fax: 866-421-8306

James Tangaro, VP

tsocorp.com

1969 750 Refining and marketing of petroleum products, including gasoline, diesel and jet fuel.

Anywhere you need it. Any season of the year.

Our crews have decades of experience, and the skilled manpower to take on any task.

With our tundra-approved vehicles, we can get your drill rig and project materials to any remote location, and build ice pads and ice roads. And our range of logistics support – hauling fuel and freight – has been broadened with the addition of our new marine services division.

From start to finish, we are a partner who can deliver what you need.

Where the road ends…

Our Work Begins

tundra transport • rig moves • rig support • remote camps • ice roads • ice pads • well site trailer units • marine services

cruzconstruct.comMain Office (907) 746-3144North Slope (907) 659-2866

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Testing Institute of Alaska3910 Alitak Bay Cir.Anchorage, AK 99515-2366Phone: 907-276-3440 Fax: 907-770-7093

Steven Olaf Lockman, Owner

[email protected]

1979/2010 15 Welding: consulting, welder testing, certifications & procedure qualifications. Inspection:Mechanical Quality Assurance, AWS Structural Steel & Welding , API 653 Tanks/570Piping/510 Pressure Vessels, NACE Coating. Testing: NDT tests & Level III Serves,DOT tanker inpections, ABS/USCG hull tests. Training:NDT, AWS/API & Film Interp.

TrailerCraft | Freightliner of Alaska1301 E. 64th Ave.Anchorage, AK 99518-1908Phone: 907-563-3238 Fax: 907-562-6963

Lee McKenzie, Pres./Owner

[email protected]

1969 43 Parts, sales and service for trucks, tractors, trailers and transport equipment.

Tri-Jet Manufacturing Services1960 S. Eklutna St.Palmer, AK 99645Phone: 866-607-1653 Fax: 907-268-2086

Ehren Wiener, Ops Mgr.

[email protected]

2004 12 Waterjet cutting, powder coating, ceramic coating, welding and fabrication, machining-including 5-axis, 3D modeling, and drafting.

TTT Environmental Instruments & Supplies4201 B St.Anchorage, AK 99503Phone: 907-770-9041 Fax: 907-770-9046

Deborah Tompkins, Owner

[email protected]

2003 9 Portable gas detection, health and safety monitoring, environmental equipment. Rentals,sales, service and supplies. Warranty center. Alaskan owned small business.

Tutka LLC (Anchorage)620 E. Whitney Rd., Suite BAnchorage, AK 99501Phone: 907-272-8010 Fax: 907-272-9005

Keith Guyer, Ops Mgr.

[email protected]

1999 1,050 WBE/DBE (DOT & PF, MOA), EDWOSB, HUBZone, CCR/ORCA registered. GeneralContractor, heavy civil construction, environmental cleanup and consulting, wastewaterpre-treatment systems operations and maintenance services.

Tutka LLC (Wasilla)5825 E. Mayflower Ct., Suite BWasilla, AK 99654Phone: 907-357-2238 Fax: 907-357-2215

Amie Sommer, Member

[email protected]

1999 1,050 Certified DBE/WBE (ADOT&PF, MOA),EDWOSB/WOSB, HUBZone, CCR/ORCAregistered. General contractor, heavy civil construction, environmental cleanup andconsulting, wastewater pre-treatment systems operations and maintenance services.

Udelhoven Oilfield System Service184 E. 53rd Ave.Anchorage, AK 99518-1222Phone: 907-344-1577 Fax: 907-344-5817

Jim Udelhoven, CEO

[email protected]

1970 591 Oilfield services, construction management, electrical and mechanical systeminstallation.

UMIAQ6700 Arctic Spur Rd.Anchorage, AK 99518Phone: 907-677-8220 Fax: 907-677-8286

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.

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Unique Machine LLC8875 King St.Anchorage, AK 99515Phone: 907-563-3012 Fax: 907-562-1376

Patrick M. Hanley, VP/Gen. Mgr.

[email protected]

1974 56 The design, development, manufacture and distribution of oilfield, construction, mining,fishing, and government parts to industry quality standards.

Unitech of Alaska7600 King St.Anchorage, AK 99518Phone: 907-349-5142 Fax: 907-349-2733

Karl "Curly" Arndt, Sales

[email protected]

1985 6 Full-service oil spill remediation/environmental/industrial/safety supplies. Sorbents/drums-steel-poly and fiber/portable tanker/boom/berms and incinerators.

URS700 G St., Suite 500Anchorage, AK 99501Phone: 907-562-3366 Fax: 907-562-1297

Joe Hegna, Alaska Ops Mgr./VP

urs.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.

Volant Products Inc.4110-56 Ave.Edmonton, AB T6B 3R8Phone: 780-490-5185 Fax: 780-437-2187

[email protected]

2001 0 Volant designs, tests and manufactures CRTs, HydroFORM Centralizers and MLTRings. Our CRTs enable makeup, break out, reciprocate, rotate, fill/circulate and cementcasing/liner strings. Centralizers are designed as a smooth unit-body perfectly suited tocomplex well designs. MLT Rings enable increased torque and short lead time.

Washington Crane & Hoist1200 E. 76th Ave., Suite 1202Anchorage, AK 99518Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

washingtoncrane.com

1975 7 Crane builders, crane design, new crane sales, new hoist sales, lifting equipment designand sales. Material handling solutions for industry, hoists, job cranes, work stations,chain falls, lever hoists, crane upgrades, crane maintenance, crane inspection, cranerepair, hoist repair and crane parts.

Waste Management of Alaska Inc.1519 Ship Ave.Anchorage, AK 99501Phone: 855-973-3949 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

[email protected]

1969 4 Hazardous and nonhazardous waste disposal, project management, complete logisticaloversight, complete U.S. and Canadian manifesting, rail transportation, over-the-roadtransportation, marine transportation and turnkey remedial services.

West-Mark Fairbanks Service Center3050 Van Horn Rd.Fairbanks, AK 99709Phone: 907-451-8265 Fax: 907-451-8273

Grant Smith, CEO

[email protected]

2009 1,012 Liquid transportation tank trailer repair.

Weston Solutions Inc.425 G St., Suite 300Anchorage, AK 99501Phone: 907-276-6610 Fax: 907-276-6694

Patrick Flynn, Alaska Business Mgr.

[email protected]

1957 60 WESTON delivers sustainable environmental, property redevelopment, energy, &construction solutions. WESTON Alaska supports oil & gas project management,permitting, construction, incident response, & environmental remediation. Worldwide,1,800 staff build stakeholder relationships & help solve our clients' toughest problems.


Compiled By Tasha Anderson

dining

Let’sCookAlaska

ALASKATHISMONTH

Many plan to eat out; but aft er even just one class with Let’s Cook Alaska, some may fi nd themselves planning to eat in.

Let’s Cook Alaska is a family run business owned by Josie McKinney, a fi ft h generation Alaskan. She was inspired to found it as a way to combine her passions for cooking and teaching. “I have always loved to cook,” she says. “Teach-ing is another passion of mine and the two just naturally came together.”

McKinney fi nds support through her teens and husband; her children help as assistants in her “Mom (or Dad) and Me” classes, while her husband Mark hosts, works on paper-work and helps with other odds and ends.

If you want to learn to cook, Let’s Cook Alaska can help, as it off ers the gamut of classes: “I have four-hour intensive (classes) where I teach things that I can’t in my typical two-hour classes, like making bread, cakes from scratch or com-plete holiday meal preparation. My two-hour classes cover everything from ‘Back to Basics’ classes to international classes covering authentic cuisine from all over the world,” McKinney says.

Everyone is welcome to sign up for classes, and McKinney is happy to work around unique needs or special situations. “We have a legally blind student, corporate groups that come in and want to compete, teens who just want to use the mi-crowave at fi rst, and all kinds of interesting class dynamics.”

Whoever comes to learn, McKinney is excited to teach them. “Let’s Cook Alaska is all about teaching the love of cooking. I love what I do and I can’t wait for each class.”

letscookalaska.com

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trAvel

Reykjavik

ALASKATHISMONTH

For those Alaskans look-ing for new travel ideas this year, starting mid-

May Icelandair will have a direct fl ight from Anchorage to Reykjavik, the capitol city of Iceland. Th e fl ight is ap-proximately seven hours, and fl ights are planned twice a week through the summer.

According to Icelandair’s Senior Vice President of Mar-keting and Sales Helgi Már Björgvinsson, “Anchorage is an underserved market with con-venient connections that will allow Icelandair to grow on the west coast of North America. Outbound travelers will have a refreshing alternative when traveling non-stop to Iceland with connections to more than 20 destinations in Europe, while Eu-ropean travelers will be enticed by incredible wildlife, skiing, cruises, or the ability to experience the Last Frontier of Alaska.”

Flights start on May 15 and will operate seasonally through September. “We look forward to serving the Alas-kan market and hope this will open up future possibilities,” Björgvinsson says.

In addition to being a traveling hub, Reykjavik itself is a unique destination. Visitors can enjoy a rich mix of nature and city life day or night with museums, cafes, bars, live music, and shopping opportunities. One unique attraction is the geother-mal beach in Nauthólsvík, where a lagoon was formed in which cold sea and hot geothermal water fuse together, with an aver-age temperature of 59-67 F in the summer. Another noteworthy site is Hallgrimskirkja church: At approximately 240 feet tall, this landmark off ers stunning panoramic views of Reykjavik.

icelandair.us; visitreykjavik.is.

Strokkur, a fountain geyser east�of�Reykjavik.Strokkur, a fountain geyser

Hallgrimskirkja, the tallest church in� Iceland,� illumi-nated�at�night.

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entertAinment

KodiakCrabFestival

ALASKATHISMONTH

“Everyone shows up for the Kodiak Crab Fes-tival,” says Summer

Wood, community relations director for the Kodiak Cham-ber of Commerce and manager for the Kodiak Crab fest. And it makes sense, as the crab festival is a premier end of winter event.

Celebrating its 55th an-niversary this year, the Crab Festival started in 1958 as a marketing event to promote the then-new market for Alaska king crab. Since then, it has evolved: “It’s a fun recreational outlet aft er the gloom of win-ter,” Wood says. “It’s like a homecoming for the community.”

And the community doesn’t just benefi t from the mix of Alaska seafood, arts, craft s and entertainment; “A lot of the vendors use this is as their fundraiser for the year,” Wood explains, donating some or all of the profi ts to charity or non-profi ts organizations in- and outside of the community.

Th is year’s festival will include many of its annual signa-ture events, including the Survival Suit Race, where contes-tants race dressed up head-to-toe in survival gear; Crab Fes-tival poster sale and signing; In Da Mixx On Da Mall with DJ Marc “Island Style” Entertainment, which includes music games, a dance contest and guest performances; the Grand and Shrimp Parades; the Pillar Mountain Race; a local sea-food tasting; and many other arts and craft s vendors, live musical performers, good food and Kodiak fl are. Th e Golden Wheel Amusement rides and games are located on the mid-way for the length of the event.

Th is year’s festival takes place May 23 to 27, with events starting running all day. “It’s a big thing for the community,” Wood says, and there’s plenty to go around.

facebook.com/kodiakcrabfestival

Aerial view of Kodiak midway.Aerial view of Kodiak midway.

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Kodiak Crab Festival mas-cot and�friend.�Kodiak Crab Festival mas-


AnchorAge1 AnchorageMuseumThe Anchorage Museum has two exhibits that will be on display for the summer season. Arctic Flight: A Century of Alaska Aviation, will be on view through Aug. 11. Portrait Alaska: Clark James Mishler, will be on view through Sept. 28. These are in addition to its permanent exhibits the Alaska Gallery, Art of the North and the Smithsonian Arctic Studies Center. Anchorage Museum, 9 a.m. to 6 p.m. Daily. anchoragemuseum.org

11 TheLostFingersThe Lost Fingers is an acoustic trio from Canada performing jazzed-up, high energy renditions of French pop songs and nostalgic hits by AC/DC, Michael Jackson and Stevie Wonder, to name a few Alaska Center for the Peforming Arts, 7:30 p.m. myalaskacenter.org

cordovA2-5 ShorebirdFestivalThis years festival includes keynote speaker Mr. Whitekeys; a photo workshop with Michael Quinton; early morning, USFS-guided walks; guided field trips; high tide shuttles to Hartney Bay; a migration maze, arts workshop and other activities for children and young adults; and the Birders Bash dinner. Various locations and times. cordovachamber.com

FAirbAnks4 ResilientFairbanksConferenceThis conference is a collection of speakers, vendors, and presen-tations on how the community can come together and build a stronger, resilient and more prosperous Fairbanks. Alpine Lodge, 8 a.m. explorefairbanks.com

10 BreastCancerFocusAnnualLuncheonThe mission of Breast Cancer Focus Inc. is to obtain funds to support advocacy, education, research and compassionate giving and to help eradicate breast cancer. Luncheon features speaker Dr. Lyn Freeman and a silent auction and is followed by free educational seminar. Dena’ina Civic & Convnetion Center, silent auction begins 11 a.m., lunch begins at 12 p.m. breastcancerfocus.org

homer9-12 KachemakBayShorebirdFestivalEvery spring more than 236 species of birds are celebrated in this festival that includes talks, presentations and other events throughout the community. Various locations and times. homeralaska.org

JuneAu3-18 JuneauJazz&ClassicsFestivalThis festival offers a spectacular mix of blues, jazz and classical performances; workshops; and family entertainment including performances aboard boats for the popular classical and blues cruises. This year’s event will bring more than thirty artists to Juneau, with a kick-off concert featuring Arlo Guthrie. Various locations and times. jazzandclassics.org

3-26 TheRoadWeeps,TheWellRunsDrySurviving centuries of slavery, revolts, and The Trail of Tears, a com-munity of self-proclaimed Freemen (Black Seminoles and people of mixed origins) incorporate the first all-black town in Wewoka, Oklahoma– but the very foundations of the town are rocked when a new religion and the old way come head to head. Perseverance Theatre, 7:30 p.m. perseverancetheatre.org

18-19 UsedBoat&RVShowandOutdoorGearSaleThis event is an opportunity to buy, sell or browse a boat or RV. Space is also available for fishing, hunting, camping, skiing and

hiking gear. No firearms allowed. All day event, Nugget Mall. nuggetmalljuneau.com

ketchkikAn23 TheBellamyBrothersHoward and David Bellamy have enjoyed enormous success throughout their career with No. 1 hits on Pop and Country charts. Ketchikan High School Auditorium, 7:30 p.m. bellamybrothers.com

kodiAk24 MarianCallMarian Call is a trained composer and self-taught singer based in Juneau. Harbor Bay Convention Center, 8 p.m. kodiakartscouncil.org

PAlmer5/24-8/30 FridayFlingEvery Friday from the end of May through August, downtown Palmer is transformed with food vendors, local artists, live music and a fresh farmers market. Downtown Palmer, 10 a.m. to 5 p.m. palmerchamber.org

Petersburg16-19 LittleNorwayFestivalThis festival celebrates Norway’s Constitution, the coming of spring and beginning of the fishing season. Participants dress up in traditional folk costumes, and events include indoor and outdoor dances, the Mitkof Mummer’s Melodrama, artist receptions, rose-maling classes, an arts and crafts share, traditional Alaskan and Norwegian foods, parade, pageant, style shows and music. Various locations and times. petersburg.org

seldoviA24-26 WoodcarvingContestThis annual events attracts chain saw artists from around Alaska. Different prices are awarded each year, including a People’s Choice. The carvings are kept in Seldovia to add points of interest to the village, though occasionally they are given to the artists to keep or sell. Downtown Seldovia, 12 p.m. seldoviachamber.org

tAlkeetnA18-19 CliffHudsonMemorialFly-InThis event honors the aviation legacy of Cliff Hudson and the Hudson Aviation family. Activities include a poker run, aircraft performance demonstrations, fly-over, silent auction, pancake feed and Young Eagles flights. Talkeetna Airport and other locations, various times. talkeetnachamber.org

vAldez10-12 MayDayFly-InandAirShowBush pilots from Alaska and the rest of the world compete in events such as flour bombing, short takeoffs and landings, and a poker fun run. Valdez Airport, various times. valdezalaska.org

14 VACAnnualPicnicFeaturing:YourBurnableArtThe Valdez Arts Council sponsors this event, which includes a barbecue, entertainment by 2twice as Good, a bonfire and Your Burnable art, where participants throw art or other items onto the burn pile to symbolize release and letting go. Dock Point Pavillion, 6 p.m. valdezartscouncil.org

YAkutAt5/30-6/2 YakutatTernFestivalThis festival supports, unifies, and educates the community while celebrating Aleutian terns. Activities include field trips, children’s activities, Native cultural events including dancing and story-telling, art shows and exhibits, and speakers and seminars. Various locations and times. yakutatternfestival.org

EVENTSCALENDAR Compiled By Alaska Business Monthly Staff


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ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

Government employment plays a big role in Alaska. Between 2001 and 2012

about one in four people working in Alaska had government jobs. Th e proportion of government jobs to total jobs is much higher in Alaska than the United States as a whole. According to data from the federal Bureau of Labor Statistics, U.S. government jobs make up 16.21 percent of total U.S. employ-ment for the period 2002 to 2011. Government jobs make up 26.27 percent of Alaska employment ac-cording to the State of Alaska for the same period.

Th e State of Alaska Department of Labor and Workforce Develop-ment’s Research and Analysis Di-vision publishes local, state and Federal government employment data. Th e chart shows a peak in federal employment in 1993 without much subse-quent growth. Local government employment data shows 36.37 percent growth from 1990, while state government jobs increase by 20.1 percent over the same 22 years. Th e

dataset shows Alaska’s government employment growth as 0.65 percent on average between 2002 and 2012. Alaska’s total job growth is 1.19 percent during the same period, showing a trend of private job growth of near double that of government job growth.

SOURCES: U.S. Bureau of Labor Statistics: www.BLS.gov • State of Alaska Department of Labor and Workforce Development: http://laborstats.alaska.gov

50,00045,00040,00035,00030,00025,00020,00015,00010,0005,000

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Local

State

Federal1990

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Government Employment in Alaska1990-2012

GovernmentEmploymentinAlaskaA shrinking giant

Alaska Trends, an outline of significant statewide

statistics, is provided by the University of Alaska Center for Economic Development.

ALASKATRENDS� By Paul Davidson


GENERALPersonal Income–Alaska US $ 3rd Q12 34,050 33,918 33,785 0.78%Personal Income–United States US $ 3rd Q12 13,397,827 13,327,797 13,229,347 1.27%Consumer Prices–Anchorage 1982-1984 = 100 2nd H12 206.62 205.22 202.58 1.99%Consumer Prices–United States 1982-1984 = 100 2nd H12 230.34 228.85 226.28 1.79%Bankruptcies Alaska Total Number Filed January 59 30 56 5.36% Anchorage Total Number Filed January 44 26 40 10.00% Fairbanks Total Number Filed January 8 3 5 60.00%

EMPLOYMENTAlaska Thousands January 333.49 337.73 332.76 0.22%Anchorage & Mat-Su Thousands January 188.80 192.30 186.90 1.01%Fairbanks Thousands January 42.23 54.04 42.27 -0.11%Southeast Thousands January 34.34 34.67 34.74 -1.16%Gulf Coast Thousands January 34.26 34.00 34.83 -1.63%Sectorial Distribution–AlaskaTotal Nonfarm Thousands January 314 319 308.5 1.85% Goods Producing Thousands January 40.1 37.8 36.8 8.97% Services Providing Thousands January 374.1 281.4 271.7 37.69% Mining and Logging Thousands January 16.6 17.2 15.4 7.79% Mining Thousands January 16.4 16.8 15.3 7.19% Oil & Gas Thousands January 13.6 13.7 12.8 6.25% Construction Thousands January 14.3 15.2 11.6 23.28% Manufacturing Thousands January 9.2 5.4 9.8 -6.12% Seafood Processing Thousands January 7.2 2.6 7.0 2.86% Trade/Transportation/Utilities Thousands January 61.0 62.8 59.3 2.87% Wholesale Trade Thousands January 5.9 6.0 5.9 0.00% Retail Trade Thousands January 34.8 35.9 34.0 2.35% Food & Beverage Stores Thousands January 6.1 6.2 6.1 0.00% General Merchandise Stores Thousands January 9.8 10.2 9.8 0.00% Trans/Warehouse/Utilities Thousands January 20.3 20.9 19.6 3.57% Air Transportation Thousands January 5.5 5.6 5.5 0.00% Information Thousands January 6.0 6.1 6.3 -4.76% Telecommunications Thousands January 3.9 4.0 4.1 -4.88% Financial Activities Thousands January 12.9 13.0 14.5 -11.03% Professional & Business Services Thousands January 27.0 27.3 25.6 5.47% Educational & Health Services Thousands January 47.0 47.2 45.4 3.52% Health Care Thousands January 33.4 33.4 31.7 5.36% Leisure & Hospitality Thousands January 27.8 28.6 27.8 0.00% Accommodation Thousands January 6.5 6.7 5.6 16.07% Food Services & Drinking Places Thousands January 17.6 18.0 18.2 -3.30% Other Services Thousands January 11.2 11.5 10.6 5.66% Government Thousands January 81.2 84.9 82.2 -1.22% Federal Government Thousands January 14.8 15.5 15.9 -6.92% State Government Thousands January 24.5 26.5 24.1 1.66% State Education Thousands January 6.6 8.6 6.5 1.54% Local Government Thousands January 41.9 42.9 42.2 -0.71% Local Education Thousands January 23.6 24.4 25.2 -6.35% Tribal Government Thousands January 3.4 3.5 3.7 -8.11%Labor Force Alaska Thousands January 361.58 363.05 361.99 -0.11% Anchorage & Mat-Su Thousands January 201.62 203.76 200.55 0.53% Fairbanks Thousands January 45.48 56.92 45.69 -0.46% Southeast Thousands January 37.57 37.44 38.06 -1.30% Gulf Coast Thousands January 37.89 37.38 38.64 -1.94%Unemployment Rate Alaska Percent January 7.8 7 8.1 -3.70% Anchorage & Mat-Su Percent January 6.4 5.6 6.8 -5.88% Fairbanks Percent January 7.2 6.1 7.5 -4.00%

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Southeast Percent January 8.6 7.4 9 -4.44% Gulf Coast Percent January 9.6 9 10.1 -4.95%United States Percent January 8.5 7.6 8.8 -3.41%

PETROLEUM/MININGCrude Oil Production–Alaska Millions of Barrels January 17.01 17.21 18.36 -7.34%Natural Gas Field Production–Alaska Billions of Cubic Ft. January 9.40 9.46 10.07 -6.61%ANS West Cost Average Spot Price $ per Barrel January 109.88 107.31 119.65 -8.17%Hughes Rig Count January Alaska Active Rigs January 9 7 8 12.50% United States Active Rigs January 1756 1784 2003 -12.33%Gold Prices $ Per Troy Oz. January 1,671.42 1,687.94 1,656.11 0.92%Silver Prices $ Per Troy Oz. January 31.11 32.96 30.77 1.10%Zinc Prices Per Pound January 1.016435 1.01658 1.03 -1.32%

REALESTATEAnchorage Building Permit Valuations Total Millions of $ January 31.46 29.18 18.10 73.81% Residential Millions of $ January 10.98 3.94 4.99 119.96% Commercial Millions of $ January 20.48 25.25 13.11 56.25%Deeds of Trust Recorded Anchorage—Recording District Total Deeds January 1195* 1246* 939* 27.26%*Source: GeoNorth Fairbanks—Recording District Total Deeds January 275 335 258 6.59%

VISITORINDUSTRYTotal Air Passenger Traffic–Anchorage Thousands January 323.70 347.67 322.98 0.22%Total Air Passenger Traffic–Fairbanks Thousands January 66.68 71.05 62.13 7.32%

ALASKAPERMANENTFUNDEquity Millions of $ January 44,752.50 43,654.80 40,076.90 11.67%Assets Millions of $ January 45,895.60 44,275.10 40,710.90 12.74%Net Income Millions of $ January 178.3 364.9 85.4 108.78%Net Income–Year to Date Millions of $ January 1,028.9 607.3 1,341.2 -23.29%Marketable Debt Securities Millions of $ January 72.6 (11.2) 123.6 -41.26%Real Estate Investments Millions of $ January 103.80 5.12 37.8 174.60%Preferred and Common Stock Millions of $ January 859.8 399.9 1,044.9 -17.71%

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%

FOREIGNTRADEValue of the Dollar In Japanese Yen Yen January 88.94 83.64 76.96 15.56% In Canadian Dollars Canadian $ January 0.99 0.99 1.02 -2.75% In British Pounds Pounds January 0.63 0.62 0.64 -2.26% In European Monetary Unit Euro January 0.75 0.76 0.78 -3.45% In Chinese Yuan Yuan January 6.28 6.29 6.31 -0.46%

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AES Alaska Executive Search.................43Alaska Air Transit........................................122Alaska Aviation

Heritage Museum................................124Alaska Dreams Inc........................................113Alaska Interstate

Construction LLC....................................79Alaska Media Directory.......................... 126Alaska Rubber ................................................117Alaska Ship & Drydock Co.......................97Alaska Tobacco Control Alliance..........11Alaska Traffic Company.............................96Alaska USA Federal Credit Union.......21Alyeska Pipeline Service Co. ..................71American Marine / PENCO...................127Anchorage Opera........................................124Arctic Controls................................................. 57Arctic Office Products ( Machines)....89AT&T .......................................................................13Bering Shai Rock & Gravel ...................... 77Bowhead Transport Company..............67BP.......................................................73Business Insurance Associates Inc.....69Calista Corp./Futaris....................................75

Carlile Transportation Systems...........131Children’s Miracle Network....................43Chris Arend Photography......................130City Electric Inc.............................................121Construction Machinery

Industrial LLC................................................2Crowley..............................................................103Cruz Construction Inc.............................. 119Delta Leasing LLC...................................... 120Donlin Gold........................................................ 77Dowland-Bach Corp................................ 109Emerald Alaska................................................87ERA ALASKA.....................................................19ERA Helicopters.............................................80Fairbanks Memorial Hospital.................47Fairweather LLC..............................................17First National Bank Alaska..........................5Flint Hills Resources...................................112Fountainhead Hotels...................................85GCI..................................................................27,.88Global Services Inc. ..............................55,.69Golder Associates Inc.................................95Green Star, Inc............................................... 126Hawk Consultants LLC...............................86

Island Air Express........................................123Judy Patrick Photography........................91Landye Bennett Blumstein LLP............34Lounsbury and Associates.......................89Lynden Inc. .........................................................99MagTec Alaska LLC......................................88Matanuska Telephone Association.....51Medical Park Family Care.........................46Meridian Management Inc.......................63Municipal Light & Power...........................36N C Machinery................................................111NALCO Energy Servivces.........................95North Star Behavioral Health................45Northern Air Cargo..............................52,.53Northland Services.......................................41Northrim Bank.................................................23Northwest Strategies..................................39Nu Flow Alaska................................................85Offshore Systems Inc................................114Olgoonik Development Corp........82,.83Oxford Assaying & Refining Inc........122PacArctic Logistics.........................................55Pacific Alaska Freightways.......................37Pacific Pile & Marine...............8,.9,.10,.81

Pacific Rim Media/ Smart Phone Creative....................... 126

Paramount Supply...................................... 126Parker, Smith & Feek.......................................3Pen Air .................................................................115Personnel Plus...............................................107Pinkerton ............................................................ 57PND Engineers, Inc.......................................91Procomm Alaska.............................................72Rotary District 5010..................................123RSA Engineering Inc..................................... 57SolstenXP............................................................72Span Alaska Consolidators....................118Stellar Designs Inc.........................................43Tesoro.................................................................101True North FCU............................................ 126UIC Technical Services...............................49UMIAQ................................................................116University of Alaska

Anchorage - WWAMI..........................46URS Corporation............................................72Washington Crane & Hoist.......................33Waste Management .................................105Wells Fargo ......................................................132West-Mark Service Center................... 126

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