THE LINK FALL | OCTOBER 2023 The official magazine of the Alaska Support Industry Alliance www.AlaskaAlliance.com INSIDE THIS ISSUE n Fairbanks Economic Updates n EPA Process Threatens All Alaska n Willow Forward, ANWR Backward n Jeff Baker Builds Bridges Worldwide n Cook Inlet Gas Issues Accelerate MANH CHOH MARKS NEW CHAPTER FOR MINING
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THE LINK: OCTOBER 2023 4 Alliance Members and Friends: As I complete my term as President of the Alliance board, I look back at what the organization has done in the last year, and I am thankful! n Thankful for the 500+ members who join us, support us and stick with us as we all ride the roller coaster of resource development in Alaska. We consistently hit a 98% membership retention rate — I am humbled by that. n Thankful for the 48 new companies that joined the Alliance this year! We look forward to having you on Team Alliance and helping you and your company be successful. n Thankful for the educational events that we hosted, all over the state, in the past year. Hundreds of Alaskans have learned about responsible resource development via our events. Thousands more have learned the same through our regular publications. n Thankful for the joint-advocacy efforts with the majority of Alaskans to get the Willow project approved. n Thankful for the early success that the Alaska Oil and Gas Historical Society has experienced. Preserving our industry history is a priority for the Alliance. n And last but not least, I am thankful for the incredible board members I serve with who are committed to Alaska and to the Alliance and to Rebecca Logan, our CEO, and Catherine Chambers, our External Affairs Coordinator, who do an incredible job staying on top of all of our projects, education and advocacy endeavors. I will continue to serve on the board as an Emeriti director. I hope to see many of you in the coming year, as we work together on key issues our industry is facing. We know we will be faced with legislation raising taxes on the oil industry on day one of the 2024 legislative session. We know we will continue to face attempts to stop all development in Alaska from the current administration and radical environmental groups. We know we are facing a huge workforce shortage in the coming year as work ramps up on projects like Willow and Pikka. We also know that when we work together as a support industry and with our sister trade associations, we can tackle any problem! Thank you for your support throughout my year as President. I’m proud of the work we all have done for The Alliance Message From Randy Beltz Board of Directors President Stay connected with us We are working proactively to keep our members informed and connected via online platforms and events. Watch for our updates through email and social media. And if you’re not receiving our updates, email cchambers@alaskaalliance.com. Stay up to date at AlaskaAlliance.com.
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Page 10 EPA setting dangerous precedent Opinion: The Environmental Protection Agency’s preemptive strike against the Pebble Project is a threat to all future Alaska development. Page 16 Biden shuts down ANWR leases The Biden administration strikes again, taking back a number of oil leases in ANWR awarded during the Trump Administration. Page 26 Jeff Baker: A Man of action Member Jeff Baker has taken philanthropy worldwide, investing his time and talent to help Bridges to Prosperity projects in the poorest parts of Africa. Page 36 Canadian LNG to replace Cook Inlet gas? The continued decline in natural gas from Cook Inlet fields is a long-term threat now coming soon for all SouthCentral communities including Anchorage that need a reliable source of gas, pointing toward a reliance on Canadian LNG. FEATURES The Link is published in partnership with the Alaska Support Industry Alliance by Fireweed Strategies LLC, 4849 Potter Crest Circle, Anchorage, AK 99516. We actively seek contributions from Alliance members and the oil and gas and mining industry. For advertising information and story inquiries, email Lee.Leschper@FireweedStrategies.com. Our magazine is mailed at no charge throughout Alaska to those interested in resource development and a healthy Alaska economy. To subscribe, email Admin@FireweedStrategies.com. Publisher: Lee Leschper | Editor: Tim Bradner | Production, Design: Will Leschper Contributing Photographer: Judy Patrick THE LINK: OCTOBER 2023 6 ON THE COVER Groundbreaking for the Manh Choh Mine marks a dramatic new step in mining production in Interior Alaska, as well as a new model for mining efficiency. Here mining legend Roger Burggraff shares a gold nugget with Kinross Gold Corporation’s Paul Rollinson. Photo courtesy Kinross Alaska ON THIS PAGE We take this annual issue to look at the strengths and challenges facing the Golden City of Fairbanks. Photo courtesy Fairbanks Convention & Visitors Bureau
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THE LINK: OCTOBER 2023 8 Alliance Members and Friends: I’m not sure who said, “into every life a little rain must fall,” but I certainly felt like we had many lifetimes of rain in Alaska this summer! 50 years ago, in the summer of 1973, it was just as cloudy and dark for Alaska — but the sun came out and the pipeline moved forward! In February of 1973, the U.S. Court of Appeals ruled that the pipeline project was illegal and could not be built. This decision reversed an earlier decision and gave victory to three environmental groups. On April 2, 1973, the U.S. Supreme Court lets the U.S. Court of Appeals decision stand, firmly blocking pipeline construction until Congress acts to amend the Mineral Leasing Act. On May 9, 1973, the Senate Interior Committee approves and sends to the floor a pipeline right-ofway bill. The first step toward Congress giving final construction approval. Meanwhile, America was experiencing fuel shortages and possible gas rationing. In June 1973, Senator Ted Stevens, and Senator Mike Gravel worked together, and argued, over an amendment to widen pipeline corridors in the Mineral Leasing Act. Stevens was certain the votes weren’t there to pass the amendment. On July 17, 1973, the famous vote, with Vice President Spiro Agnew breaking the tie, occurs and the Gravel-Stevens amendment, which orders immediate construction of the Trans-Alaska Pipeline, passes the senate. On Aug. 2, 1973, the House follows, passing a bill by John Melcher, a Democrat from Montana winning overwhelming support for construction of the pipeline! On Aug. 8, 1973, four tugboats, pulling eight enormous barges, raced to the North Slope with millions of dollars’ worth of equipment for oilfield construction.* We have an incredible history to preserve and share about our oil and gas industry. The Alaska Oil and Gas Historical Society is actively collecting, preserving, and sharing that history. I hope you enjoyed this snapshot from 50 years ago. More to come! *Details taken from the January 8, 1977, edition of “Oil and the Pipeline” produced by the Anchorage Times. 1973: A Rough Road in Alaska’s Oil and Gas History Message From CEO Rebecca Logan
THE LINK: OCTOBER 2023 9 Become a Founding Member of The Alaska Oil & Gas Historical Society The Alaska Oil & Gas Historical Society (AKOGHS) is a nonprofit organization dedicated to preserving and sharing the history of the oil and gas industry in Alaska. Our mission is to educate the public about the important role oil and gas have played in shaping the state and its people,s and to preserve the legacy of those who have worked in the industry. If you are interested in learning more about the history of Alaska’s oil and gas industry, or if you would like to become a member, we invite you to explore our website and join us in our mission to preserve and share this important part of Alaska’s heritage. Learn more and become a Founding Member today at akoghs.org
THE LINK: OCTOBER 2023 10 BY KATI CAPOZZI, TESSA AXELSON, KAREN MATTHIAS, DEANTHA SKIBINSKI, REBECCA LOGAN, ALICIA AMBERG AND LEILA KIMBRELL For more than a decade, there has been a lot written on these pages about the Pebble project and its interactions with the Environmental Protection Agency. Gov. Mike Dunleavy recently filed suit against the EPA over its actions to block the project and foreclose economic opportunity on nearly 200,000 acres of land owned by the state of Alaska. Some have questioned this litigation. It is important to outline the critical importance of this lawsuit and why so many in the business community care a great deal about it. To begin, the issue is about process and the rules of the game for making decisions about resource development in Alaska. Businesses make decisions about investing in Alaska and our economy for a variety of reasons but among the most important is whether there is a clear and fair process for a company to follow. OPINION: EPA’s Pebble action sets unfair precedent for Alaska Photo Courtesy Pebble Limited Partnership
THE LINK: OCTOBER 2023 11 In a normal process for many resource development projects, the applicant files for a permit with the U.S. Army Corps of Engineers, or USACE, under Section 404 of the Clean Water Act, aka CWA. This usually triggers a full review of the project via the environmental impact statement process. The EPA and other federal agencies participate in the EIS review and provide important technical input. If the USACE grants a permit the EPA disagrees with, the CWA grants the EPA the ability to veto the decision. These vetoes have been rarely used since the passage of the CWA as federal agencies attempt to work through significant differences. With Pebble, things got off the rails in this process when the EPA went outside the norm and began its attempt to preemptively block the project before there was even a mine plan. The EPA just made one up and then declared that their mine plan could not be permitted. This action was on again and off again based on political winds in Washington, D.C. The veto was finalized under a Biden administration, which is reluctant to permit any major mines despite the criticality of mining, including Pebble’s copper, to its climate-change focused renewable energy goals. In addition to stopping Pebble, this EPA action interferes with the state’s ability to manage its lands — an action that violates the deal Alaska made when it entered the union and was granted access to land selections for the purpose of establishing an economy for the state. It also violates the “no more” clause of the Alaska National Interest Lands Conservation Act, which put tens of millions of acres of Alaska’s lands into parks and wilderness areas. These issues are at the core of the state’s challenge. CONTINUED on PAGE 12
It is important to emphasize that the state is not the applicant in this situation, yet the EPA has effectively said to the state that it cannot develop its lands as was first envisioned in the Alaska Statehood Act. This is a de facto taking and we should all be very concerned. It is worth noting that Sens. Lisa Murkowski and Dan Sullivan, who have expressed opposition to Pebble, have also expressed their opposition to the use of the preemptive veto against Pebble by the EPA for many of the reasons outlined in the state’s challenge. When we take Pebble out of this discussion, we see a federal agency seeking to use authority it was not granted under the CWA. EPA has decided it can act as a zoning agency for state-owned lands. This further precludes the state’s ability to make decisions about lands it selected under the Alaska Statehood Act. From the perspective of the business and resource community, this issue is about whether any project can get fair treatment in Alaska, because once an extraordinary precedent has been established, it becomes much easier for the bureaucracy and those who oppose development Alaska to use it again and again. — Kati Capozzi is the president and CEO of the Alaska Chamber — Tessa Axelson is executive director of the Alaska Forest Association — Karen Matthias is executive director of Alaska Metal Mines — Deantha Skibinski is executive director of the Alaska Miners Association — Rebecca Logan is president and CEO of the Alaska Support Industry Alliance — Alicia Amberg is executive director of Associated General Contractors of Alaska — Leila Kimbrell is executive director of the Resource Development Council for Alaska THE LINK: OCTOBER 2023 12 CONTINUED from PAGE 11 Photo Courtesy Pebble Limited Partnership
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THE LINK: OCTOBER 2023 14 Photos Courtesy ConocoPhillips About 1,800 people will be at work on Willow over the next year. ConocoPhillips: It could make or break $7.5B project Alaska federal U.S. District Court judge Sharon Gleason is expected to rule in early November on two environmental lawsuits filed against the U.S. Bureau of Land Management on ConocoPhillips’ big Willow oil project on the North Slope. The decision could make or break the $7.5 billion project, a company official said. The decision will come ahead of the 2023-2024 winter construction season. If the judge rules favorably, construction work will be underway in the upcoming season. If the decision is in favor of the environmental groups, it’s “highly unlikely” Willow will ever be built, Connor Dunn, vice president of Willow for ConocoPhillips, told the court in an Aug. 29 filing. The environmental groups are Willow court decision due in early November
THE LINK: OCTOBER 2023 15 scheduled to reply to ConocoPhillips and other defendants by mid-September, allowing Gleason to decide the case before the start of the winter construction season. If the case isn’t resolved by then and ConocoPhillips can’t work this winter, there is a risk the company could fail to meet the requirements of its land lease with the federal government. However, the company is optimistic. Andy O’Brien, ConocoPhillips’ Senior Vice President for Global Operations, said “the scope of the issues involved (in the lawsuits) are narrow and we believe the U.S. Bureau of Land Management has done a thorough review,” on issues raised by the plaintiffs. The lawsuits were filed by Sovereign Inupiat for a Living Arctic, an Alaska tribal advocacy group, and the Center for Biological Diversity, an Arizona-based environmental group. Sovereign Inupiat for a Living Arctic lists no address or phone number on its website. Meanwhile, ConocoPhillips said in the filing it has invested $1 billion in Willow through July 2023, the company said in the Aug. 29 filing. If the judge rules favorably, another $900 million will be spent in the upcoming winter season. “Numerous contractors are presently fabricating equipment, such as the Willow operations center modules and pipe and culvert for road crossings,” the company said. About 1,800 people will be at work on Willow over the next year. One contractor, Nanuq, Inc., anticipates having 550 employees on Willow construction this winter. Nanuq is a subsidiary of Kuukpik Corp., the village corporation for Nuiqsut, an Iñupiaq village near the Alpine field on the slope. The project will employ 2,500 in Willow construction in total. O’Brien, ConocoPhillips’ senior vice president, also told the analysts in the company’s second quarter earnings call, that Willow’s cost is still estimated in the range of $7 billion to $7.5 billion. “Alaska has not seen the kind of inflationary pressures experienced in other areas, so we expect this to hold,” through five to six years of construction. Meanwhile, most North Slope communities are in support on Willow and some who initially filed actions supporting the lawsuit have withdrawn them. One example is the tribal council in Anaktuvuk Pass, an Iñupiaq village in the Brooks Range, filed a lawsuit and then reversed itself without explanation, a few days later. “The Naqsragmiut Tribal Council now files this Notice to inform the Court that the Council is withdrawing its previously filed Motion for Leave to File Amicus Curiae,” the tribe said in a three-sentence filing. An attorney with the Oregon-based public interest firm representing the tribal council, the Western Environmental Law Center, declined to comment. Most communities in the Arctic Slope region are supporters of the petroleum industry, which funds the region’s extensive government services. Willow is expected to hold as much as 600 million barrels of recoverable oil. If it proceeds, the deposit is expected to begin producing in 2029 and with a peak rate of 180,000 barrels per day, making a substantial addition to North Slope production that now averages about 480,000 barrels per day. — Tim Bradner
THE LINK: OCTOBER 2023 16 Move would leave no leases remaining in the Refuge U.S. Interior Secretary Deb Haaland has canceled seven oil and gas leases in the Arctic National Wildlife Refuge, or ANWR, held by a state of Alaska agency. If upheld, the action would leave no leases remaining in the refuge. The legality of Haaland’s action outraged Alaska’ congressional delegation state officials and North Slope community leaders. It will be tested in court. The Alaska Industrial Development and Export Authority, or AIDEA, the state development corporation that owns seven federal leases in ANWR canceled by Haaland, said it will sue. “Interior’s action leaves AIDEA only one choice, that we have to go to court to protect our rights in the ANWR leases,” said Randy Ruaro, Executive Director of the state authority. Haaland’s decision was announced Sept. 6. “With today’s action, no one will have rights to drill in one of the most sensitive landscapes on Earth,” she said in a news conference Wednesday. “Climate change is the crisis of our lifetime. And we cannot ignore the disproportionate impacts being felt in the Arctic.” The state will argue that the Interior Department doesn’t have the authority to flout a federal law passed by Congress. “In 2020, AIDEA made lawful bids and was legally awarded land leases in the 1002 area of ANWR, an area designated by Congress for responsible oil production,” Ruaro said. “This action was laid out in the (federal) Tax Cuts and Jobs Act signed into law by the President in 2017.” Haaland also announced new restrictions on federal land in the National Petroleum Reserve Alaska, a 23-million-acre area of federal lands west of the North Slope’s major oil fields. Interior officials were careful to say, however, that the new order would not affect ConocoPhillips’ Willow project, now in advanced development planning. “The proposed rule would not impact valid existing rights,” Laura Daniel-Davis, principal deputy assistant Interior secretary for Land and Minerals Management, told reporters. While the announcement left work on Willow free to proceed the new restrictions will serve to limit continued exploration in the area, possibly foreclosing new Willow discoveries. Alaska’s U.S. Rep. Mary Peltola was not comforted by that. “I am deeply frustrated by the reversal of these leases in ANWR. This administration showed that it is capable of listening to Alaskans with the approval of the Willow Project, and it is some of those same Inupiat North Slope communities who are the ones that are most impacted by this decision,” to cancel the leases in ANWR. Inupiat residents of the North Slope are indirectly affected by the lease cancellation. AIDEA was hoping to get Interior’s permission to do preliminary exploration this winter on its seven leases and had that occurred Kaktovik Inupiat Corp. and Arctic Slope Regional Corp. might have been able to also explore adjacent lands they own, which have oil potential. Also, development of any oil discovered in ANWR’s coastal plain would result in new property tax revenue to the North Slope Borough and new revenue to the state through production taxes and the state oil and gas property tax. AIDEA’s possession of the only leases in the refuge came about through a lease sale authorized by the federal tax act. No major oil and gas company submitted bids in the sale. Two small independent companies that did submit bids, aside from AIDEA, subsequently withdrew when it became apparent that Interior would delay permits and take other actions to slow exploration. The lease sale was held in refuge’s coastal plain east of state-owned lands where discoveries have been made. When Congress created ANWR in 1980, it placed most of the refuge in a protected wilderness status, but held out 1.5 million acres of coastal plain because of its oil and gas potential. — Tim Bradner Haaland ignores law, cancels ANWR leases “In 2020, AIDEA made lawful bids and was legally awarded land leases in the 1002 area of ANWR, an area designated by Congress for responsible oil production. This action was laid out in the (federal) Tax Cuts and Jobs Act signed into law by the President in 2017.” — Randy Ruaro, Executive Director, Alaska Industrial Development and Export Authority
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THE LINK: OCTOBER 2023 18 Photo Courtesy BLM According to the U.S. Geological Survey, the non-wilderness Section 1002 Area of ANWR contains a mean estimated 7.6 billion barrels of recoverable oil and 7 trillion cubic feet of natural gas, according to AIDEA. All in agreement over continued overreach that will hurt state U.S. Senators Lisa Murkowski, Dan Sullivan (both R-Alaska) and North Slope and other Alaska leaders expressed their opposition to two Alaska new anti-development decisions announced by the U.S. Department of the Interior (DOI). “DOI is proposing to withdraw millions of acres within the National Petroleum Reserve-Alaska (NPR-A) and canceling the lawfully awarded leases to the Alaska Industrial Development and Export Authority within the non-wilderness Coastal Plain (1002 Area) that were issued in early 2021 as required by law,” the delegation said in a joint statement. “Both moves are in direct contravention to Alaska-specific laws, lack scientific backing or consultation with Alaska Native stakeholders, tribes and communities, and come at the worst possible time, geopolitically,” the statement said. Sen. Lisa Murkowski said: “The NPR-A, which is explicitly designated for energy production, turns 100 this year, and we have worked for decades how to responsibly develop a very small portion of the non-wilderness 1002 Area. Now the Biden Administration, at a time when America and our allies need Alaska’s resources more than ever, has decided to go their own way by further ANWR lockup: What Alaska’s leaders say
Colaska leads Alaska in transportation infrastructure construction and maintenance. We are also a subsidiary of Colas Group, the world-wide leader in road construction. 4000 Old Seward Rd, Suite 101 Anchorage, AK 907-273-1000 info@colaska.com 50+ years and 7,000+ projects in Alaska locking Alaska down while refusing to consult with the Alaska Natives who actually live on the North Slope. “It’s bad enough to tear up legal contracts and renege on federal commitments. But it’s even more unconscionable that the Biden administration is penalizing Alaska right as it allows Iran to produce more of its oil and solicits the same from Venezuela. Fewer jobs at home, more imports for California, and higher prices for everyone. These decisions are illegal, reckless, defy all common sense, and are the latest signs of an incoherent energy policy from President Biden,” Murkowski said. Sen. Dan Sullivan, Alaska’s other senator, said: “This war on Alaska is devastating for not only Alaska but also the energy security of the nation. This unlawful cancellation of AIDEA’s ANWR leases today now brings us to 55 executive orders and actions specifically targeting Alaska since President Biden assumed office. “The Biden Interior Department’s incredulous announcement of a second ANWR lease sale begs the question: What investor in their right mind would ever consider spending millions of dollars in ANWR having just witnessed the administration pull the rug out from under the last THE LINK: OCTOBER 2023 19 CONTINUED on PAGE 20 “The NPR-A, which is explicitly designated for energy production, turns 100 this year, and we have worked for decades how to responsibly develop a very small portion of the non-wilderness 1002 Area. Now the Biden Administration, at a time when America and our allies need Alaska’s resources more than ever, has decided to go their own way by further locking Alaska down while refusing to consult with the Alaska Natives who actually live on the North Slope. — U.S. Senator Lisa Murkowski, R-Alaska
THE LINK: OCTOBER 2023 20 CONTINUED from PAGE 19 standing lessee from the previous sale? Unfortunately, that seems to be the point. “The administration is putting on a legal charade by pretending to follow the law that requires them to hold lease sales with no intent of ever actually honoring those leases — daring any investor to waste their time and money. Not only is this an affront to the rule of law, it’s also a grave injustice to the Inupiat people of the North Slope, especially the people of Kaktovik — the only village in ANWR. As evidenced by this and so many of the administration’s actions negatively impacting the Alaska Native people, the idea of ‘equity’ is being exploited as a hollow political soundbite,” Sullivan said. North Slope Borough Mayor Harry Brower said: “Once again we see the Biden Administration elevating environmental extremism over national security, energy independence, and the voices of local indigenous people who overwhelmingly support economic development in their region. At a time when the American people are struggling with oppressive inflation and high energy costs, we should be looking to grow our economy and produce more energy rather than playing into the hands of despots and potentates around the world. “Where is the justice and local consultation for Alaska Natives and all of our residents when the Depart of Interior and extreme environmental groups conspire to manipulate the current system and bypass even federal law that leads to costly litigation, profits for NGO’s, and our local economy further damaged? Simply put, these discriminatory and bias outcomes are unacceptable and should not be tolerated by federal regulatory agencies, such as BLM, that oversee these politically motivated decisions which now even ignore years of documented science, public meetings, and local governments our locals that rely on subsistence foods to live a healthy life. Secretary Haaland, we can’t go to a Whole Foods store in Arlington or DC to meet our basic needs,” Brower said. ASRC President and CEO Rex Rock, Sr. said: “Our regional leadership has tirelessly offered to work in partnership with the administration on issues affecting our region. The decisions issued today exclude the voices of the North Slope Iñupiat, causing irreparable harm to our culture and economic self-determination.” Nagruk Harcharek, President, Voice of the Arctic Iñupiat, said: “This decision once again shows that the Biden administration prioritizes their agenda over the will of local Indigenous communities. By dismissing the needs and interests of the people who call this region home, they continue to impede the self-determination of the Iñupiat of the North Slope. These actions contradict local, Indigenous-led resolutions despite the administration’s ‘pledge’ to listen and work with Indigenous communities.” “The administration has continually violated its mandate to consult and work with ICAS, the region’s federally recognized Tribe. This action directly impacts the livelihoods and economic future of our tribal members. Our voices, our heritage and our connection to this land cannot be silenced or overlooked,” said Morrie Lemen, Executive Director of the Iñupiat Community of the Arctic Slope. “How can the Secretary of Interior make a decision that has such an economic impact on our community of Kaktovik without any formal Tribal Consultation through our sovereign relationship with the federal government? AND to do this under the name of climate change without engaging us as a Tribe is completely discriminatory. Native Village of Kaktovik has engaged on this issue at every level — we were involved in the Coastal Plain EIS and stand by the Record of Decision — you are ignoring us as a tribe. For an Administration that is focused on Indigenous Knowledge we wonder when you have talked to us about climate change in our region. We are losing confidence in President Biden’s actions and promises to Tribal Consultation and Strengthen Nation-to-Nation Relationships and Advancing Racial Equity and Supporting Underserved Communities! “This all sounds good unless you are a tribal government that has a different stance than this Administration on what types of activities should happen in our homelands. We are in the midst of subsistence — the timing of this announcement couldn’t be more tone deaf to the Kaktovikmiut – because our community is focused on providing our native food to sustain us through the upcoming winter. We demand Government-to-Government consultation on how this decision was reached — we will not be muted!” said Nathan Gordon Jr., Vice President, Native Village of Kaktovik. “It’s difficult to express our utter shock and disappointment of Secretary Haaland’s decision today. We live in the Arctic! We are the Arctic! And for you to tell us about our region in the name of climate change is outrageous! For an Administration that touts its focus on working with Indigenous People from our perspective it is doing the opposite. “We are a subsistence culture and are working hard to collect enough food to feed our community through whaling. We don’t have the time or energy to address this action. I can only say that as the only community within the Coastal Plain who has been fighting for the rights promised
(907) 562-0062 | northrim.com We Bank On Alaskans At Northrim, we focus on serving the needs of Alaska and our neighbors who live here. We are committed to responsible resource development and the businesses that power Alaska. And that brings positive energy to all of our communities. ACHIEVE MORE THE LINK: OCTOBER 2023 21 “This war on Alaska is devastating for not only Alaska but also the energy security of the nation. This unlawful cancellation of AIDEA’s ANWR leases today now brings us to 55 executive orders and actions specifically targeting Alaska since President Biden assumed office.” — U.S. Senator Dan Sullivan, R-Alaska to us by Congress over 40 years ago, under the Alaska National Interest Lands Conservation Act we are astounded that Secretary Haaland has defied Congress through her actions. We are a small community that suffers as the federal winds blow and feel the Biden Administration is working to effectively erase us from the land that we have inhabited for hundreds of years,” said Charles Lampe, President, Kaktovik Iñupiat Corporation. “We are being blindsided by this action! Our community fought hard to get the Coastal Plain opened to oil and gas leasing. We are an economically underserved community and are continually looking for economic opportunities for our long-term sustainability. “Forty years ago we found ourselves located in a National Wildlife Refuge against our will. Life has been difficult for us under the Refuge management, there are too many rules and regulations for a small community like ours to adjust to. One of the opportunities we always looked towards was the future potential of oil and gas leasing in the Coastal Plain. The Secretary’s actions today basically goes against Congress and again takes rights away from us to manage our own lands to provide for our future. We are appalled by this action and its timing – we are harvesting our native foods and that’s our primary focus right now. What does President Biden plan to do for our community if you take away our economic opportunities,” said Annie Tikluk, Mayor, City of Kaktovik. “The government should respect sovereign rights of the local people. Our people need jobs to earn wages in order to lead a subsistence lifestyle,” said Matthew Rexford, Tribal Administrator for the Village of Kaktovik. — Tim Bradner
THE LINK: OCTOBER 2023 22 Mine will be state’s sixth-largest after beginning production Kinross Alaska officially started construction Aug. 29 at the new Manh Choh mine at Tetlin, east of Delta. The project is on the Tetlin Reserve, which means the Native Village of Tetlin, the local tribe, owns the land and will receive the royalties. More than 100 people gathered for the groundbreaking including Gov. Mike Dunleavy. Kinross President and CEO Paul Rollinson was at the groundbreaking along with Rick Van Nieuwenhuyse, president and CEO of Contango Ore, which owns 30% of the project with Kinross at 70%. Tetlin chief Michael Sam was also at the ceremony. Manh Choh will be the state’s sixth largest metal mine after it begins production in 2024. The mine will support 500 to 600 jobs and will be a major employer in the region and drawing workers from Tetlin village as well as other communities in eastern Interior Alaska. Ore from the Manh Choh Mine will be trucked about 240 miles to Fairbanks and to the Kinross Fort Knox mine northeast of the city. High-grade gold ore from Manh Choh will be blended with lower-grade ore from Fort Knox and processed in the mill at Fort Knox. The mine is expected to operate for four to five years, producing about 1 million ounces of gold. During its operating life, the mine will pay an estimated $600 million in Manh Choh project now under construction Photos Courtesy Kinross Alaska The groundbreaking brought elected officials and local and company leaders together in August.
THE LINK: OCTOBER 2023 23 production payroll after $75 million in construction payroll. The average annual wage of jobs at the mine will be about $125,000 per year. About $425 million will be spent for services and goods. Additionally, Manh Choh will result in several million dollars being spent in the local community for training, education, scholarships and sponsorships. Even during the planning and initial construction, the mine was a substantial contributor to the region with $1.7 million injected into the local area in 2021. Seventy four percent of this spending was with Alaska-based businesses. There was also $208,000 in donations to local nonprofits and community organizations, and community support has also been extended to organizations and people in the nearby Tok area. Training and other workforce development is being done in partnership with the Tanana Chiefs Conference, the Fairbanks-based tribal support organization. One significant new project for the community is an elder’s home, which will support 35 beds for elder community members and elders from the surrounding area. The elder’s home will keep families together, enhance and enrich the lives of children in the community, and support the sharing of traditional knowledge and activities. Meanwhile, the trucking of ore from Tetlin to Fairbanks has attracted considerable interest, and some concerns. About 3,000 tons of ore will be trucked daily with an average payload of 50 tons per truck. There will be about 60 round trips done per day, with a frequency of about 2.5 trips per hour on the Alaska and Richardson Highways. Trial runs with trucks will begin late in 2023 with the frequency ramping up into the second half of 2024. The trucks will meet highway load restrictions and operations will not require special approvals. Information on the trucking is being provided to the DOTPF (Department of Transportation and Public Facilities) Transportation Advisory Committee that has been formed for the road corridor. Meanwhile, the addition of Manh Choh ore to that produced at the Fort Knox mine will help sustain Fort Knox, which has now been producing for 27 years and is an important part of the Fairbanks economy. Fort Knox is now the largest gold producer in Alaska and the second-largest taxpayer in Fairbanks, with roughly $127 million paid yearly in property taxes. Fort Knox is also a major employer, with 715 direct jobs in 2021 and $829 million paid in annual payroll and $2.8 billion paid in purchases of goods and services from local vendors over 25 years of operation at the mine. — Tim Bradner
1,000 days worked by employees without a lost-time accident Usibelli Coal Mine has proudly announced a significant achievement in workplace safety as its dedicated employees have worked 1,000 consecutive days without a lost time accident. Usibelli, the only operating coal mine in Alaska, is committed to excellence in safety and sustainability. This remarkable accomplishment underscores Usibelli’s unwavering commitment to the safety and well-being of its workforce. “We are proud to celebrate 1,000 days without a lost time accident,” said Joe Usibelli Jr., president of Usibelli Coal Mine. “This achievement reflects our commitment to safety as a core value and the foundation of our company culture. Every team member is accountable for their safety and the safety of their fellow coal miners.” The mining industry demands the highest safety standards, and Usibelli Coal Mine has consistently demonstrated its dedication to ensuring a secure work environment for all employees. As a family-owned business for over 80 years, its values prioritize safety, health, and prosperity for its employees and the surrounding community. The milestone comes from the mine’s pursuit of safety excellence through training programs, safety protocols, and regular safety assessments. The mine is one of eleven nationwide to have received CORESafety certification from the National Mining Association in 2020. By implementing CORESafety and the mine’s internal “Everyday Safety – At Work. At Home. At Play.” campaign, employees are empowered to be safety leaders, fostering a collaborative approach to identifying and mitigating potential hazards. “I also want to thank the families of our employees who support and encourage a commitment to Everyday Safety and for supporting their loved ones to maintain a safety-first mindset,” Joe said. In addition to achieving this safety milestone, Usibelli Coal Mine remains dedicated to being stewards of the environment by using sustainable mining practices. The mine continues to invest in advanced technologies and best practices to ensure its operations align with the highest environmental standards. “Beyond our commitment to safety, we also recognize our responsibility to the environment and the communities we serve,” added Joe Usibelli Jr. “We strive to leave a positive legacy for future generations.” Mine employees are working towards achieving a new all-time safety record this December. Usibelli is a family-owned and operated coal mining company with a proud history dating back to 1943. The company is committed to producing high-quality coal while prioritizing safety, sustainability, and community engagement. Usibelli strives to be a responsible steward of the environment and an active contributor to Alaska’s economic growth and development. THE LINK: OCTOBER 2023 24 Usibelli Coal Mine proud to earn safety milestone
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THE LINK: OCTOBER 2023 26 Photos Courtesy Jeff Baker Jeff Baker and his team spent two weeks in Kigusa, about four hours’ drive west of Rwanda’s capital, Kigali. Alaskan Jeff Baker volunteers to help Bridges to Prosperity It’s a long way from Alaska to Rwanda. But Jeff Baker, Senior Vice President at Michael Baker International, was there this spring with nine other Michael Baker employees, all volunteers, putting their skills in engineering and project management to work in building a safe and sturdy foot bridge connecting two villages. It was a project of Bridges to Prosperity, a Colorado-based nonprofit that builds badly needed pedestrian trail bridges in third world developing nations. These Bridges to Prosperity projects give local people access to schools, health care and markets for locally-grown goods. Until this bridge was built, people had to find ways to pick their way across a river normally 20 feet wide but sometimes impassible during the rainy seasons. Alliance member Michael Baker International is a corporate sponsor for Bridges to Prosperity and takes on one project a year, Baker said. Michael Baker solicits a volunteer team, and Jeff Baker in Anchorage was one of 10 chosen. He was also picked Lending his experience, from Alaska to Rwanda
THE LINK: OCTOBER 2023 27 to lead the team. (Jeff Baker is no relation to Michael Baker’s founder). The team spent two weeks in Kigusa, about four hours’ drive west of Rwanda’s capital, Kigali. Bridges for Prosperity has support staff in Rwanda, and the Kigusa bridge is just one of the projects they are building this year. Baker said his volunteer group was well looked after. Accommodations were basic — camp cots in a small concrete structure — but there was a small staff for meals, transportation, and security. The Kigusa bridge is a 246-foot suspended bridge, meaning its metal decking was suspended from cables attached to support structures on each side of the river. The metal decking for Kigusa and other foot bridges in Rwanda built by Bridges to Prosperity are now being manufactured in the country, Baker said. For local people, the metal decking is a major improvement over wood planks typically placed on foot bridges in the region. Manufacturing the decking locally gives Rwanda an ongoing capability to build safe foot bridges in a country where almost everyone walks. Baker said he was surprised at how many people walk and depend on very basic infrastructure that Bridges to Prosperity is helping improve. Rwanda’s major highways are few but are in good condition, but once away from the highways local roads are few and rough. In some ways Rwanda is advanced in its infrastructure, however. “The country has 4G wireless everywhere,” Baker said. “The people in Rwanda opened their community and hearts to us,” he said. “It was an incredibly fulfilling experience in that we helped people in need, learned new things ourselves and got to know a different part of the world. Bridges to Prosperity is a great organization doing great work.” “It was an incredibly fulfilling experience in that we helped people in need, learned new things ourselves and got to know a different part of the world. Bridges to Prosperity is a great organization doing great work.” — Jeff Baker, Senior Vice President at Michael Baker International
THE LINK: OCTOBER 2023 28 Photos Courtesy Pebble Limited Partnership Environmental Protection Agency blocked mine project The State of Alaska has asked the U.S. Supreme Court to review the U.S. Environmental Protection Agency’s unusual action last January to prohibit large mines in a 309-square-mile area of southwest Alaska. The EPA’s action was aimed at the proposed Pebble project, which would develop a large copper, gold and molybdenum deposit. The mine developer is Pebble Partnership Ltd., a subsidiary of Northern Dynasty Minerals, a Vancouver,B.C.-based minerals exploration company. Alaska Attorney General Treg Taylor acknowledged that the direct appeal to the high court, bypassing lower courts, “is an extraordinary ask, but it’s appropriate given the extraordinary decision being challenged.” The EPA used its federal Clean Water Act authority under Section 404c in its decision, which was unusual in being applied to such a large area and before the mine itself had been approved. Pebble has been a focus of sharp controversy in Alaska with stiff opposition from commercial fisheries and tribal groups in the Bristol bay region, who fear a large accidental discharge at the mine would contaminate streams that support large State asks High Court to review Pebble action
THE LINK: OCTOBER 2023 29 BO NU IEL DO IUNNGC AE LAATS AK AT I M E Commitment to Safety & Quality | Anchorage | Kenai | Deadhorse | www.conamco.com | 907-278-6600 OIL & GAS CONSTRUCTION SERVICES | MINING CONSTRUCTION & MAINTENANCE | POWERPLANT CONSTRUCTION | PIPELINE CONSTRUCTION | REMOTE VILLAGE INFRASTRUCTURE | TELECOMMUNICATIONS | DESIGN BUILD & EPC | GENERAL CONTRACTING & MANAGEMENT | PROFESSIONAL PLACEMENT & STAFFING CONAM’s track record of succesful projects has proven that resource development can be done responsibly while protecting Alaska’s fragile environment. Our firm understanding of Alaska’s unique challenges and commitment to HSSE and planning have translated into satisfied mining clients across the state. We get dirty so you get the pay dirt. salmon fisheries. Lands in the area are owned by the state and the EPA Section 404c decision effectively condemns the land, creating a de facto park, Taylor said. The Pebble region has long been classified for mineral development in state land plans. Alaska Department of Law spokesperson Patty Sullivan said the U.S. Constitution gives the Supreme Court authority to hear cases involving disputes between a state and the federal government, although only a few of these are requested each year and the court typically agrees to hear just a small number. Procedurally, the state has asked the court to hear the case as a first step, she said. In a related development, the Alaska division of the U.S. Army Corps of Engineers is still reviewing a remand of its decision to reject an application for a federal Section 404 wetlands permit from Pebble Partnership. The decision was sent back to the Alaska division in April by the Corps’ Pacific region headquarters based on what was said to be inadequate review of the company’s proposed wetlands protection and impact mitigation plan and lack of consideration for socio-economic benefits in one of the most economically distressed regions of Alaska. If developed, Pebble would be one of the world’s largest copper and gold mines. The company would ship ore concentrates from a port that would be developed on Lower Cook Inlet. — Tim Bradner
THE LINK: OCTOBER 2023 30 Photos by Judy Patrick Hilcorp Energy has multiple facilities in operation on the Slope. Operators pursue projects to shore up production North Slope operators are busy pursuing other projects besides Willow and Pikka. Two independents, U.K.-based Pantheon Resources and 88 Energy of Australia, working separately, are exploring and, in Pantheon’s case, doing development planning on discoveries south of Prudhoe Bay in the central North Slope. Pantheon said it is mobilizing a workover rig to continue evaluation of one of its discoveries near the Dalton Highway, an all-year road connecting the North Slope oilfields to Interior Alaska’s highways. 88 Energy will begin flow-testing another discovery later this year with the arrival of cold weather, which facilitates operations. The central North Slope finds could be modest in scope, but their location near an existing highway and the Trans Alaska Pipeline System substantially improves the prospects for development. Pantheon told investors in late July it hopes to incrementally develop its discoveries in a series of 20-well pads with modular production facilities and sees considerable upside potential North Slope output dips during seasonal decline
THE LINK: OCTOBER 2023 31 and modest costs with the favorable location of its project near existing infrastructure. Other operators on the slope working to develop new production. Eni Oil and Gas is doing work to shore up production at its small Nikaitchuq field on the Beaufort Sea coast north of the Kuparuk field. Nikaitchuq is produced mainly from a viscous oil deposit, which is heavier and thicker than conventional light crude oil produced on the Slope. Viscous oil is more difficult to process than light oil and Eni designed and built a process plant designed for that oil. The plant was designed to process 40,000 barrels per day, but production averaged only 15,962 barrels per day in June and has dropped 10% in the last year, according to Petroleum News, an Alaska industry publication. To develop more oil, Eni launched an initiative to tap potential resources in federal Offshore Continental Shelf leases north of its state of Alaska Beaufort Sea leases, but backed away from the plan after encountering problems in drilling a long extended-reach horizontal well, and after Shell, its partner in the OCS, backed out. Eni has refocused on further drilling on its state leases with the approval of the Alaska Division of Oil and Gas. The federal OCS leases have meanwhile been dropped, the U.S. Bureau of Safety and Environmental Enforcement has confirmed. North Slope production dipped in August as a seasonal summer decline in output continued, according to data from the Alaska Department of Revenue. Total slope liquids production averaged 423,290 barrels per day, down from 430,743 in July, and about 74,000 below the January average of 499,016 barrels per day. A summer drop in output is typical for the North Slope because field production facilities operate at lower efficiency than in the cold winter months. Also, summer field maintenance results in period production shutdowns of facilities, which usually last a few days, but which brings monthly averages down. The bulk of the decline was in the Prudhoe Bay field, the largest on the North Slope, and where production plants were built in the 1970s. Prudhoe Bay, which is operated by Hilcorp Energy, dropped to an average of 255,363 barrels per day in August from 266,684 in July, and 321,172 in January. One other large producing field, Kuparuk River, also declined, from 101,460 barrels per day in July to 99,987 in August. In January, Kuparuk averaged 104,984 barrels per day. The Alpine field showed an increase over July in the data but that was because summer facility maintenance brought the Alpine average down that month. ConocoPhillips is the operator at the Alpine and Kuparuk fields. Alpine has generally been holding steady at 50,000 barrels per day or slightly above because incremental new projects in the field offset its natural decline. The small Lisburne field in the eastern part of Prudhoe Bay has also been holding steady at an average of 19,028 barrels per day in August compared with 19,055 in July and 18,405 in January. Hilcorp Energy is the operator of the Lisburne field. — Tim Bradner
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