The Alliance’s very own quarterly publication with news about Alaska’s natural resources, projects, politics, industry updates, and association information. Please contact us if you are interested in joining our mailing list for a physical copy.
THE LINK SUMMER 2025 The official magazine of the Alaska Support Industry Alliance UNLEASHING ALASKA’S INVALUABLE RESOURCES
The Last Frontier is positioned to lead the next wave of energy development
INSIDE THIS ISSUE n Epperheimer paving the way n Trump’s Alaska priorities n NPR-A restrictions rolled back n Graphite One looks to future
www.AlaskaAlliance.com
DEDICATED. RELIABLE. BUILT TO SERVE.
TOTEMARITIME.COM Northbound: 253.449.2112 Southbound: 907.276.5868
Help continue our momentum Message From Jeff Baker, Board of Directors President
A lliance Members and Friends: Spring breakup finally hap - pened on the North Slope, we’re a few days past summer Solstice and the Alliance fiscal year is coming to a close. I’m pleased to report that it has been a solid year for the Alliance financially. Our three biggest revenue generators are membership dues, industry part - ner sponsors and our Meet Alaska trade show. n Memberships dues : Thank you to all our member companies, not only for your membership, but for your active
tember with voting in October. Results are announced at our annual meeting which will be held on Oct. 23 this year (save the date). This is a great opportu - nity for anyone looking to jump into the Alliance mission. Reach out to me or our CEO Rebecca Logan if you’d like to discuss being on the Alliance board. The political headwinds against Alaska these past four years have turned into unprecedented tailwinds with the new Administration, which was ap - parent at recent events. In April, the Alliance was one of 16 Alaska trade
participation in our events and your continued sup - port for what the Alliance stands for — promoting responsible resource development in Alaska. Mem - bership remains strong and we continue to add new members. It’s no surprise considering the work we are doing to help the resource development industry flourish right now. n Industry Partner Sponsors help the Alliance complete its mission. Our current industry partners are ConocoPhillips, Santos Ltd., Hilcorp Energy, ExxonMobil, Marathon Petroleum, Alyeska Pipeline Service Company and the Pebble Partnership. We truly appreciate their continued support. n Meet Alaska Trade Show was a great success this year with a near record turnout. We sold out vendor booths and plan to have more space next year. We are confident for a strong year ahead and we will provide our members with many opportuni - ties to interact within our industry. Board elections are coming up in the next few months and this year we have seven seats open with only one incumbent. Look for an announcement about candidate nominations in mid-August. The nomination period is approximately three weeks, and the slate is approved by the board in mid-Sep - Connect with The Alliance 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. LinkedIn: www.linkedin.com/in/the-alliance-4939251b
organizations that participated in Alaska on the Hill in Washington, D.C. The multi-day event promoted business in Alaska with a heavy focus on resource development. Nine Alliance board members accom - panied Rebecca to advocate on our behalf in D.C. In June, the Alliance helped to organize the Unleashing Alaska’s Extraordinary Resources Potential Roundtable led by Sen. Dan Sullivan and Gov. Mike Dunleavy, and included Department of the Interi - or Secretary Doug Burgum, Department of Energy Secretary Chris Wright and EPA Administrator Lee Zeldin. Three panels on mining, oil and gas, and the Alaska LNG project all presented to this delegation. There is tremendous support at the federal level to develop Alaska’s energy and mineral resources. The roundtable was followed by the Alaska Sus- tainable Energy Conference where support for Alaska resource development was reinforced at both the state and federal levels. We’ve got a favorable win - dow and need to take advantage of it as best we can. Be safe this summer and enjoy what Alaska has to offer. Respectfully, Jeff
Facebook: www.facebook.com/alaskaalliance X (formerly Twitter): x.com/AKAlliance And if you’re not receiving our updates,
email info@alaskaalliance.org. Stay up to date on our website at AlaskaAlliance.com.
THE LINK: SUMMER 2025
4
Alaska’s Oil and Gas Consultants
Geoscience Engineering Operations Project Management
3601 C Street, Suite 1424 Anchorage, Alaska 99503
www.petroak.com info@petroak.com
907.272.1232
Page 12 New administration eyes future of NPR-A The Department of the Interior will roll back restrictive land management regulations on the National Petroleum Reserve- Alaska that were adopted by former President Joe Biden. Page 18 Oil tax stability takes center stage Alaska has experienced more than a decade of stability in its oil and gas tax policies, but that stability has come under fire due to a number of factors, including legislative actions. Page 26 Epperheimer Inc. blazes trail to future Epperheimer Inc. — an Alaska-grown industrial coating contractor and Alliance member — saw its pool of labor shrinking. The company decided to do something about it, in a way that will benefit the next generation of workers. Page 30 Alaskan graphite set to help power EVs Graphite One and Lucid have announced a first-of-its-kind agreement to supply natural graphite anode materials for use in batteries for electric vehicles. FEATURES
ON THE COVER President Donald Trump’s Executive Order to Unleash
ON THIS PAGE The 46th annual Meet Alaska energy conference in the spring was a resounding success and featured an exclusive lineup of speakers. Thank you to our sponsors and attendees who helped make the event another great one. We’re already looking forward to next year’s event! Photo by Amber Johnson
Alaska’s extraordinary resource potential has set the stage for the state to continue building upon our track record of responsible oil and gas development. See more photos on Page 10 from the recent rally on the North Slope. Photo by Judy Patrick
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: SUMMER 2025
6
ANCHORAGE (907) 279-2415
FAIRBANKS (907) 452-3458
BIGRAYS.COM
9
www.AKRDC.org
Advocating for Alaska’s future Message From CEO Rebecca Logan
A lliance Members and Friends: I hope you are all enjoying a fabulous Alaska summer. I know that you are enjoying all of the fabulous news coming from Washington DC that is focused on Alaska’s future! With a federal government that is doing all it can to ensure the economic viability of Alaska for years to come, it is critically important that our Alaska elected officials match their efforts. The Alaska Department of La - bor recently revealed some pretty dire news about Alaska’s Gross Domestic Product. “Long-term stagnation” was used to describe the scenario: Alaska’s gross domestic prod - uct grew more slowly over the past decade than that of all other states except for one, according to a Department of Labor and Workforce Development analysis. The state’s GDP — the value of all goods and services — rose by only 0.4% annually on av - erage from 2015 to 2025 when adjusted for inflation, according to the analysis in this month’s Alaska Economic Trends, the magazine published by the de - partment’s research and analysis section. Only North Dakota has slower growth during the period, averaging 0.2% a year. This is something that every - one in the private sector should be concerned about. What policy should the private sector advo - cate for, in our next legislative session, to ensure that Alaska is open for business, has a stable business climate and can grow it’s GDP? To that end, I would like to intro- duce you to Alaskans for Common Sense. The mission of Alaskans for Common Sense is to support re- sponsible and sustainable fiscal policies to: n Enhance investment in Alaska’s resource industries n Provide essential state ser - vices and sustain the Permanent
Fund for future Alaskans n Provide an affordable level of Permanent Fund Dividends without the need for excessive taxes Consider the following policy positions they are advocating for: n Avoid Unnecessary Taxes: Do not increase taxes on current resource industries, businesses, or individuals in a manner that threatens further investment, economic development and pros - perity for Alaskans. It is possible additional taxes could be needed to support essential services in the future, but it would make no sense to impose higher taxes simply to pay out an unsustain - able dividend. n Don’t Overdraw the Per- manent Fund: Do not violate the annual 5% POMV (Percent of Market Value) draw from the Permanent Fund. This 5% al - lowable draw is the law and is an effective spending limit on government services and the dividend. Overdrawing the fund is reckless. It reduces long-term
earnings and our ability to pay dividends, maintain low tax - es and support essential state services. This discipline would sustainably preserve the Perma - nent Fund for our children. n Don’t Annihilate Essential Services & Infrastructure: Do not destroy essential state services or capital investment. We must be responsible in our spending, and continue to cut unnecessary expenses, while still supporting the essential needs of Alaskans. Annual investment in infrastruc - ture, deferred maintenance and education is critical for future economic growth. You can learn more about the group at www.alaskansforcom- monsense.com. Enjoy the rest of your summer and I look forward to seeing you when our fall activities begin and discussing the issues that we will be facing in the next legislative session. Respectfully, Rebecca Logan CEO
THE LINK: SUMMER 2025
8
Unleashing Alaska’s Resources!
THE LINK: SUMMER 2025
10
Reliable • Eco-friendly • Made for freight UNCOMPLICATE YOUR FREIGHT LOGISTICS
Alliance CEO Rebecca Logan and Board Member Robb Christensen (above) joined Interior Secretary Doug Burgum, Environmental Protection Agency Administrator Lee Zeldin and Energy Secretary Chris Wright at Pump Station 1 in early June for an energy rally celebrating President Donald Trump’s Executive Order to Unleash Alaska’s extraordinary resource potential. Also on hand were Sen. Dan Sullivan, Gov. Mike Dunleavy and a host of other elected officials. The event was an excellent opportunity to highlight our North Slope contractors and their employees, and to once again tell our story of how The Alliance and Alaska are leading the way for responsible energy policy and future development.
Get a free quote: 800.321.6518 | AlaskaRailroad.com/Freight
11
www.AlaskaAlliance.com
Interior Department moves to roll back NPR-A restrictions
THE LINK: SUMMER 2025
12
move regulations that are inconsis - tent with the Naval Petroleum Re - serves Production Act of 1976, and restore the original intent of the Act for the management of the area, while eliminating roadblocks to re - sponsible energy production. The action followed a detailed legal and policy review, after which U.S. Bureau of Land Management and Interior Department officials concluded that Biden’s rule exceeds the agency’s statutory authority under the 1976 NPR-A act, conflicts with the Act’s purpose, and impos - es unnecessary barriers to respon - sible energy development in the pe - troleum reserve. The reserve, formerly Naval Pe - troleum Reserve No. 4, was set aside by Congress for oil and gas explora - tion and development as a matter of national energy security. The BLM administers the reserve under the NPR-A, which mandates an “ex - peditious program of competitive leasing” while balancing the pro - tection of surface resources. “Congress was clear: the Nation - al Petroleum Reserve in Alaska was
set aside to support America’s en - ergy security through responsible development,” Secretary Burgum said. “The 2024 rule ignored that mandate, prioritizing obstruction over production and undermining our ability to harness domestic re - sources at a time when American energy independence has never been more critical. We’re restoring the balance and putting our energy future back on track.” The 2024 rule significantly ex - panded procedural requirements and created a presumption against oil and gas activity in approximate - ly 13 million acres on the reserve designated as “Special Areas” un - less operators could prove minimal or no adverse effects on surface re - sources, a difficult standard. These provisions lack a basis in the NPR-A Act and also undermine the BLM’s obligation to carry out an effective and timely leasing pro - gram. Under the proposed rule rescis - sion, the BLM would revert to the CONTINUED on PAGE 14
Previous orders were ‘obstruction over production’ The U.S. Department of the In - terior will roll back restrictive land management regulations on the 23-million-acre National Petroleum Reserve-Alaska that were adopted by former President Joe Biden, Sec - retary of the Interior Doug Burgum has announced. Biden’s rule expanded protected areas in the reserve including an unusual plan for “floating” pro - tected areas where, in five-year in - tervals the Interior Secretary could establish new areas for protection or enlarge existing ones. The ink was hardly dry on Biden’s restrictive NPR-A regulations when former Interior Secretary Deb Haa - land issued a call for proposed new protected areas. President Donald Trump was elected and took office before that could be done, however. Rescinding the 2024 rule will re -
WORLDPAY IS HERE. AND ONLY AT NORTHRIM.
Northrim and Worldpay have partnered to deliver top-tier, tailored merchant services, ensuring seamless, secure and efficient payment solutions for your business and your customers. + Credit and debit card acceptance — everywhere + Mobile payment acceptance — fast and reliable + Gift card program — drive more revenue + Advanced reporting tools — empower smarter decisions Call us today at (907) 261-6205 to see how our merchant services can unlock better business.
13
www.AlaskaAlliance.com
Map by BLM
The Biden Administration’s NPR-A policies heavily restricted oil and gas leasing across much of the reserve.
North Slope community leaders are also supportive. “The decision by the BLM is anoth - er important milestone in our effort to advance our Inupiaq self-determina - tion on our North Slope homelands,” said Nagruk Harcharek, president of VOICE, a development advocacy orga - nization. “It underscores what VOICE has always known and argued in court on behalf of our 21 member organi - zations: that the Biden Administra - tion’s rule affecting our NPR-A lands is deeply flawed and poses significant risks to our communities and econ - omy. “We applaud this development and look forward to collaborative engage - ment with the federal government and Congress about durable poli - cies that support North Slope Inupiat self-determination.”
CONTINUED from PAGE 13
regulations that were in place prior to May 2024. Those have long guided develop - ment in the National Petroleum Re - serve in Alaska while incorporating protections for wildlife, subsistence and surface values through the Inte - grated Activity Plan adopted for the NPR-A. The proposed rule will be open to public comment for 60 days. Alaska’s two U.S. senators, Lisa Murkowski and Dan Sullivan, voiced their strong support for the regulation rollback. Sullivan called the 2024 rule change “the “most egregious effort of the Biden Administration,” and so that one of his the top priorities “is to get the NPR-A back to where it was supposed to be by the intention of Congress, to develop oil and to remove all the regulations that the Biden put on NPR-A.”
Photo by Judy Patrick Nagruk Harcharek, President, Voice of the Arctic Iñupiat.
— Tim Bradner
THE LINK: SUMMER 2025
14
Our companies provide engineering, drilling operations, pipelines, and remote camp services.
Together, they blend expertise and technological muscle in support of smooth, safe, and successful operations in the North Slope oil fields.
www.doyon.com
Photo Courtesy Ambler Metals
Trump’s signature bill has Alaska priorities
ed permits for the planned 211-mile Ambler Access Project, an industrial road reaching into an area of north - west Alaska where companies are exploring copper discoveries. Other sections of the bill require the federal government to dispose of federal lands and to increase tim - ber harvests in national forests such as the Tongass National Forest in Southeast Alaska. For Alaskans interested in oil and
the U.S. House and is now in the Sen - ate, would speed oil and gas leasing and development in the Coastal Plain of the Arctic National Wildlife Ref - uge (ANWR) in far northeast Alas - ka, and similarly restore a leasing program in the National Petroleum Reserve-Alaska in the western North Slope. The legislation would also rescind a decision by former U.S. Interior Secretary Deb Haaland that void -
Among highlights, Ambler Road set to gain traction President Donald Trump’s “Big Beautiful Bill” has much in store for Alaska. The lands and natural resources section of the bill, which has passed
THE LINK: SUMMER 2025
16
the Record of Decision issued by for - mer Interior Secretary Haaland that recommended the “no action” al - ternative in the EIS prepared for the project to build the industrial access road. The developer of the road, the state’s Alaska Industrial and De - velopment Authority, preferred the “Alternative A” as the recommend - ed option. This was for the 211-mile route from the Dalton Highway across state and federal BLM lands including a section of road through the Gates of the Arctic National Park. By disregarding Alternative A and choosing the “No Action” alternative in the Ambler road EIS, the Interior Department’s action, under former Sectary Haaland, ignored the pro - vision in the 1980 Alaska Nation - al Interest Lands and Conservation Act that guaranteed a corridor for a road from the Dalton Highway west to state lands in the Ambler Mining District where companies are ex - ploring copper discoveries.
from federal lands. At the time, it applied only to royalties from the Swanson River oil field on the Kenai Peninsula, which is within a feder - al wildlife range (it is now a wildlife refuge). As efforts were made to explore in ANWR, Congress reduced the royal - ty share to Alaska from production from federal land in ANWR, which Alaskans saw as the federal govern - ment reneging on a promise made at statehood in 1959. In the National Petroleum Re - serve-Alaska, the 23-million-acre federal enclave west of the currently producing fields on the North Slope, the president’s bill would rein - state an oil and gas leasing program shelved under former President Joe Biden. Most important, the bill puts the federal Environmental Impact State - ment prepared for NPR-A leasing by the Bureau of Land Management in 2020 and the federal Record of Deci - sion leasing that same year back into effect. On the Ambler Access Project, the pending legislation would reopen
gas, the ANWR provisions will at - tract attention but the sections on the national petroleum reserve may be just as important. As it came out of the Senate’s Energy and Natural Resources Com - mittee, the lands and resources sec - tion of the President’s bill would re - quire no fewer than four lease sales in ANWR’s coastal plain in the next 10 years with no fewer than 400,000 acres offered in each sale. The first sale must be held no lat - er than four years after enactment of the bill with a second sale held no later than seven years after passage of the legislation. Up to 2,000 acres of surface lands will be allowed for production and support facilities. Rights-of-way and easements for access to surface facilities in the coastal plain would be issued. The royalty share to the state of Alaska from any ANWR production is set at 50% from 2025 to 2034 and 90% after 2035. The 90% share is important for the state not only in future revenues but symbolically. At statehood, Alaska was to receive 90% of royalties from production
— Tim Bradner
HVAC • PLUMBING & HEATING • CONTROLS • SERVICE & MAINTENANCE • CERTIFIED AIR BALANCING • UV LIGHTING ONE SOLUTION. ONE COMPANY.
WWW.SHEETMETALINC.COM WE’RE MORE THAN JUST ALASKA'S PREMIER METAL FABRICATION FACILITY
17
www.AlaskaAlliance.com
Oil tax stability in Alaska put into the crosshairs
THE LINK: SUMMER 2025
18
SB 92, SB 112 still loom despite not gaining passage Alaska has experienced more than a decade of stability in its oil and gas tax policies, which has helped fuel a surge of new investment in North Slope drilling. That has now led to new fields being developed and new oil coming into the Trans-Alaska Pipeline starting next year. Officials with companies operat - ing on the Slope credit the state’s tax policies for encouraging the new in - vestment. Tax stability came close to unraveling, however, in the 2025 state legislative session due to the conflu - ence of a number of factors, includ - ing an extremely tight state budget, a clamor for more funding for schools, reductions in federal funding and a political alignment in the Legislature that put coalitions of Democrats and moderate Republicans in charge. Conservative Republicans who op - pose tax changes were largely side - lined, although they remain influ - ential. None of the changes secured approval by the end of the legislative session in late May, but they remain at an advanced stage of passage in the Legislature for the 2026 session, which begins in January. Gov. Mike Dunleavy has mean - while signaled his opposition to tax changes which could mean a veto if one or more bills pass in 2026. How - ever, as was shown when the Legis - lature overrode the governor’s veto of an education funding bill this spring, the governor does not really have the final say in the matter. The oil tax bill that gained the most traction, at least in the Senate, was Senate Bill 92, which would cre - ate a special tax on major oil produc - ers organized as “S” corporations, a structure that has them pay no state corporate income tax, although they pay other taxes and the state royalty. Most oil producers are organized as “C” corporations that do pay the state corporate income tax. If it were to pass, SB 92 would apply only to Hil - corp Energy, a major producer on the North Slope and Cook Inlet. The special tax proposed in SB 92 would be a kind of in-lieu tax. It would not change the status of the taxpayer other than providing for a special tax to bring in revenue that would have
Photos by Judy Patrick If it were to pass, Senate Bill 92 would apply only to Hilcorp Energy, which is organized an an “S” corporation.
been paid had the taxpayer been a C corporation. SB 92 was initially sponsored by Sen. Rob Yundt, R-Mat-Su, but Yundt withdrew his sponsorship so that the Senate Resources Committee became the sponsor. The bill is now in the Senate Rules Committee. A second oil tax bill active in the 2025 session was Senate Bill 112, sponsored by the Senate Rules Com - mittee, which is chaired by Sen. Bill Wielechowski, D-Anchorage. Wiel - echowski has also proposed the change in previous years. The bill is in the Senate Resources Committee. SB 112 would lower the state pro - duction tax credit allowed to North Slope producers from $8 per barrel to $5 per barrel, which would result in an indirect tax increase on North Slope oil production. The production tax credit was part of a complex series of tax changes made in 2013 when the Legislature revamped the state’s oil production tax. The net effect of the changes in
2013 was to restructure the state pro - duction tax credit to make Alaska more competitive in attracting in - vestment, which history has shown it accomplished. The changes were complex, however. They included an increase in the base production tax rate paid by producers from 25% of net income to 35% that was offset by the production tax credits. In combi - nation, the changes were designed to incentivize new production. SB 21 was controversial, however, and its passage prompted a citizen ballot proposition to repeal it. That proposition failed in the 2014 state election, however. North Slope producers responded to the SB 21 with a flurry of new drill - ing in 2014 and 2015 that led to the Pikka and Willow discoveries and the construction now underway. There have been no serious efforts in the Legislature to change the tax or its parts until this year, in SB 112.
— Tim Bradner
19
www.AlaskaAlliance.com
Photos by Judy Patrick
The project at Sockeye is near an existing pipeline built from Prudhoe Bay to Point Thomson.
Armstrong bullish on discovery at Sockeye
2,700 barrels per day in a production test earlier this year. Reservoirs tested show excellent porosity, he said during a recent Alaska energy conference held in June in Anchorage. Armstrong’s Denver-based Armstrong Oil and Gas is partnering with Apache Corp. in the project, which includes plans for ad - ditional drilling of nearby prospects on a large block of state of Alaska leases con - trolled by the two companies. Significantly, Sockeye is only 10 miles from an existing pipeline built east from Prudhoe Bay to the Point Thomson gas
After initial testing, site could flow ‘500M to 800M barrels’ Alaska oil explorer Bill Armstrong, who has led the development of several signif - icant new North Slope discoveries, believes his latest find at the new Sockeye prospect could total 500 million to 800 million bar - rels of recoverable oil. Sockeye was drilled last year and flowed
BILL ARMSTRONG
THE LINK: SUMMER 2025
20
condensate field near the Arctic National Wildlife Refuge. The Badami pipeline has spare capacity, which will facilitate development of the Sockeye find. Armstrong said more tests are needed at Sock - eye, but he is bullish on the eastern North Slope, which has seen some oil discoveries but none viable for development except for the Point Thomson con - densates. Sockeye could change that because of its proximity to the Badami pipeline. The eastern North Slope has been a bit of a grave - yard for oil exploration and even the large Point Thomson natural gas and condensate find is eco - nomically challenged because of technical problems with its high-pressure reservoir. Oil exploration in the region has seen mixed re - sults. ConocoPhillips previously held many of the state leases where Armstrong and Apache are now drilling but sold the acreage after the company shift - ed its exploration focus to the western North Slope, where it is now developing Willow. Armstrong believes the area is underrated. Most of the exploration has been focused north along the Beaufort Sea coast where the geology lends itself to rock formations with potential for large accumula - tions of oil, like at Prudhoe Bay. Much of the geology to the south is flat, but that lends itself to the formation of stratigraphic oil traps which have been overlooked in conventional explo - ration, Armstrong said. With more advanced com - puter technology and three-dimensional seismic modeling, the potential of the extensive stratigraph - ic formations is now being demonstrated at discov - eries like Pikka, a billion-barrel field in the western North Slope. Armstrong called it, “the third largest discov - ery on the North Slope,” after the Prudhoe Bay and Kuparuk River fields, but Armstrong also included new finds being made near Pikka where his group also led exploration. Armstrong has since sold his share of the project to Santos, Ltd., which is now leading construction on Pikka’s development with Repsol, which is still a part owner. The key to the North Slope is the large, deep un - derground source rocks that are generating the oil being captured in reservoir rocks nearer the surface. “When I came to Alaska 24 years ago, people were saying that the only large fields would be discovered in the Prudhoe Bay area, but when I looked at the oil being generated by the source rocks, I could see that only 5% of it can be accounted for in discoveries so far,” Armstrong said. “Where did the other 95% go?” he asked. The answer, he thinks, is into flat stratigraphic traps that could underlie much of the North Slope south of the Beaufort Sea coast where most explorers have been looking. With new tech - nologies, companies are now focusing on these kinds of formations. “We’ve had a 90% success rate with our explo - ration. With our partners, we have discovered 11 new North Slope fields with 400 million barrels of new oil, and we’re just getting started,” Armstrong said. “The Trans Alaska Pipeline System is running three-quarters empty. We can fill that baby up.”
— JUNEAU, ALASKA — AVAILABLE STATEWIDE ✓ CONSTRUCTION ✓ EXPLORATION ✓ CONTRACT
✓ SUPPORT ✓ CHARTER
operations@coastalhelicopters.com 907-789-5600 www.coastalhelicopters.com
— Tim Bradner
21
www.AlaskaAlliance.com
Photo Courtesy Furie Operating Alaska
The Spartan 151 jack-up rig at the Julius R gas platform.
HEX Alaska, Hilcorp plan new production
HEX now has three wells produc - ing and three new ones set to come on line. The company is now pro - ducing about 13 million cubic feet of gas daily but that is expected to reach 19 million cubic feet daily when the new wells producing. If the company continues on its present pace, HEX could add 20 million cubic feet daily as drilling continues in increments, although agreements will have to be worked out with Hilcorp on the use of its Spartan 151 jack-up rig. Hilcorp makes the rig available to
now producing. The new wells will be completed and brought on line fol - lowing work on pipelines to be done first, Hendrix said. Enstar Natural Gas Co. is now pur - chasing gas from HEX but as new supply becomes available other com - panies will be able to make purchases, he said. Hilcorp Energy is also planning new gas production from onshore leases near Anchor Point, on the Kenai Peninsula, with new facilities planned for this year.
New Cook Inlet gas effort aims
to ramp up output John Hendrix is bringing on more natural gas in Cook Inlet. Hendrix and his company, HEX Alaska, LLC, recently drilled two new gas wells at HEX’s Kitchen Lights gas field, which found gas, in addition to one drilled earlier this year that is
THE LINK: SUMMER 2025
22
HEX but also needs it for work on its own development drilling. Hedrix said he is working on a plan to bring a sec - ond jack-up rig to the Inlet. The new gas is being welcomed because existing gas producing fields in Cook Inlet are expected to begin declining in 2027. The decline will be gradual but if HEX can drill enough to provide 20 million cubic feet of new gas yearly it could supply increments of new gas to the regional utilities, making a dent in the gas supply deficit and reducing the amount that will have to be imported as liquefied natural gas, or LNG. Hilcorp Energy, the major Cook Inlet gas producer, is also drilling for new gas near its ex - isting gas wells. Imports of LNG will be needed in any event to augment declining local production, regional utilities say. About 190 million cubic feet a day is produced and consumed in Southcentral Alaska. The state of Alaska has stepped in to help HEX. The Alaska Industrial Development and Export Authority, or AIDEA, the state’s development finance agency, is providing a multi- year, $50 million revolving line of credit to support the development. HEX is investing $40 million in 2025 in its two new wells. “This funding is critical to keep - ing Alaska’s energy resources de - veloped by Alaskans, for Alaskans,” Hendrix said. The partnership between AIDEA and HEX demonstrates how pub - lic-private collaboration can move quickly to meet demand with Alas - kan solutions, AIDEA Board Chair - man Dana Pruhs said. “AIDEA’s mission is to foster sus - tainable economic growth, and this investment in HEX Cook Inlet is a prime example of that,” Pruhs said. The state Department of Natu - ral Resources has also stepped in by negotiating a reduction of the state’s normal one-eighth royalty from the gas production. While this will result in a small reduction of revenues to the state treasury, the benefit of additional en - ergy security for Southcentral Alas - ka communities will by worth that. Southcentral Alaska relies on natu - ral gas for space heating in buildings and for much of the fuel needed for production of electricity. The new HEX gas drilling is also expected to add up to 100 jobs during development and five new permanent positions in production, strengthen -
ing Alaska’s skilled workforce and supporting across the state. “We’re proud to build a workforce rooted in our communities and fo - cused on long-term energy solutions for the state,” Hendrix said. Meanwhile, Hilcorp Energy’s new gas development in the Cook In - let region includes new work at the company’s Whiskey Gulch pad on the Kenai Peninsula near Anchor Point. Hilcorp outlined its plans in a Plan of Operations for its leases submitted to the state Division of Oil and Gas. Hil - corp started work at Whiskey Gulch
in 2019 with a series of stratigrahic test wells which have been com - pleted. Three gas exploration wells were also drilled from the pad be - tween 2021 and 2023. Reports from one of the wells provided to the state is public, showing a production rate in a test of 4.8 million cubic feet per day. Hilcorp is now planning to install gas production facilities at Whiskey Gulch, the company told the Division of Oil and Gas.
— Tim Bradner
Providing Alaska with experienced professionals and specialized equipment to handle all your environmental solutions needs. · Industrial Tank Cleaning · Waste Treatment, Recycling, and Disposal · Confined Space Entry and Cleaning · Decontamination · Hydro Excavation Services, Liquid Vacuum Truck Services · Transportation, Frac Tanks, Waste Containers · Settling Pond, Oil Water Separator and Sump Cleaning
www.republicservices.com/ES | 833.246.3367 Emergency Response: 800.899.4672
23
www.AlaskaAlliance.com
Pokon to help lead EPA policy for Alaska
anced implementation of the nation’s envi - ronmental laws.” Pokon served as commissioner for the Alaska Department of Environmental Conser - vation since December 2023. She joined ADEC in February 2020 from the Alaska Depart - ment of Law where she served as a Senior As - sistant Attorney Gen - eral assigned to sup - port DEC.
servation, assumed her new role in February, which includes over - seeing EPA’s work to protect human health and the environment across the states of Alaska, Idaho, Oregon and Washington and 271 Tribal nations. “I am humbled to be named Region - al Administrator for EPA’s Pacific North - west Region,” Pokon said. “I’m grateful for
New Region 10 administrator was DEC commissioner New President Donald Trump quickly worked to install his new selections to positions of power in federal roles. In the case of Environ - mental Protection Agency Regional Administrator for Region 10, Alas - kans will be familiar with the wom - an selected to oversee federal envi - ronmental regulations and laws for Alaska and the Pacific Northwest. Emma Pokon, who had previously served as commissioner of the Alaska Department of Environmental Con -
EMMA POKON
In her time with the Department of Law, she worked as a Special As - sistant to the Attorney General and worked closely with the Department of Natural Resources and the Regu - latory Commission of Alaska. Previously, she represented the North Slope Borough in natural re - source and environmental matters, and served as a law clerk for the Fairbanks Superior Court. She earned a bachelor’s degree in history with a minor in chemis - try from Hamilton College. She also achieved a Juris Doctor and a Mas - ter of Studies in Environmental Law from Vermont Law School. “Emma Pokon has done outstand - ing work for nearly two decades on resource and conservation issues in our state, most recently as Alaska’s Environmental Conservation Com - missioner, which is why I strongly recommended her to Administrator Lee Zeldin,” said Sen. Dan Sullivan. “As Region 10 Administrator, Emma will be responsible for faith - fully implementing federal law in Alaska and the Pacific Northwest and restoring trust in an agency that too often engaged in far-left, lawless activism under the Obama and Biden administrations. I am confident Emma is up for this important task and I look forward to working with her to carry out President Trump’s Alaska-specific executive order un - leashing our state’s resources.”
the opportunity to continue pub - lic service in this new role and look forward to working with EPA lead - ership and Region 10 to ensure bal -
THE LINK: SUMMER 2025
24
PROUDLY PROVIDING ALASKA with underground, surface and helicopter supported core drilling for mineral exploration and geotechnical work.
800-322-3201 • office@ruendrilling.com ruendrilling.com
25
www.AlaskaAlliance.com
Epperheimer Inc. helps ‘grow own’ Alaska workforce
THE LINK: SUMMER 2025
26
Photos Courtesy Kenai Peninsula Economic Development District
Epperheimer, Inc. “With their help, they also in - cluded Kenai High School students and connected us with Nikiski High School so we could present in front of their students as well,” she said. Epperheimer is a member of the Association of Materials Protec - tion and Performance (AMPP), the leading industry association that sets standards and accreditation for coatings and corrosion-control ex - pertise to take advantage of educa - tion materials the association makes available. This is significant because there are few training schools for corro - sion control work. “It’s almost all on-the-job,” said Jeff Epperheimer, part owner of the company with his brother, Kevin. Corrosion control is critically important to oil and gas producers that closely monitor the condition of tanks, pipelines and other struc - tures that vitally support petroleum production. Epperheimer is based in Kenai, where Alaska’s modern pe - troleum industry got its start in the 1960s.
The family owned company was formed in 1980 in Nikiski by Mark Epperheimer. Sons Jeff and Kevin took the business over in 2014 and, as of 2021, own it. The firm does work for Hilcorp Energy, the major Cook Inlet producer, and Marathon Petroleum, owner and operator of the Kenai Peninsula refinery that is the state’s major supplier of gaso - line and one of its major suppliers of jet fuel. The company also does work on the North Slope and for marine op - erators because corrosion control and metal integrity is important for them, too. Having a qualified workforce is critical to the company’s support for the industry, however. Two years ago, Arbelovsky took Epperheimer’s introductory program into classes with high school seniors at Soldot - na High School. She started pitch - ing work in the trades, and corrosion control in particular, as a way for young people to make good money during summers and, just perhaps,
Alliance member provides training for Alaska’s future For years, Epperheimer Inc. — an Alaska-grown industrial coating contractor and Alliance member — had seen its pool of labor shrinking like many support companies. How - ever, the real wakeup call came as the state emerged from the COVID-19 pandemic in 2022. “We had no new job applicants for summer hire openings” for the first time, said Larissa Arbelovsky, the company’s safety coordinator and part of the hiring team. It was a shock, but it spurred ac - tion. “Our labor pool was shrinking. We decided to grow our own,” Arbe - lovsky said. She reached out to Soldotna High School’s vice principal and coun - selor to schedule a presentation for students who might be interested in working in the industry and with
CONTINUED on PAGE 28
27
www.AlaskaAlliance.com
Photo Courtesy Kenai Peninsula Economic Development District Epperheimer Inc. has helped provide hands-on training to Kenai Peninsula students interested in pursuing a career in supporting Alaskan industry.
through their friends and word of mouth. From that, we hired an addi - tional four seniors last year for a total of five seniors in 2024; we hired one senior who didn’t attend the training so we have a total of five seniors this year, and one of the seniors from last year returned from college to work with us again.” The program is helping Epper - heimer develop a pipeline of young Alaskans coming into the company’s workforce. The work is somewhat seasonal with a summer staff of 15 to 18 that typically drops to 12 and 13 in winter, but a recruiting and training program that brings five to eight new people a year is a big success for a small company. The seasonality is spreading out, too, because of warmer winters.
ment District (KPEDD) provided a conference room and shop space for the classroom portion of the training. At the completion of the intro - ductory course, students receive an AMPP certificate, an important cre - dential in a path to a good job. The immediate reward is a good summer job in industries vital to Alaska. “In the first year, four students took the training and one applied for a position. He still works for us. In the second year (this spring), we had six students take the class and four students applied and were hired,” Arbelovsky said. “In addition to the students who were able to actually attend the class between last year and this year, we had other seniors who had heard about our hiring opportunities
CONTINUED from PAGE 27
find a rewarding career. “College isn’t for every young person, and we wanted to get the message out that there are a lot of opportunities to stay in Alaska and find a career in the trades,” she said. The program has now been ex - panded. “Soldotna High, Kenai and Nikiski were part of this from year one, and we just brought in Kenai Alternative High School for year two,” she said. The training, free for the students, is done over three days, including two days of hands-on learning and the third day in Epperheimer’s shop putting new skills into practice after being properly suited in protective gear. The Kenai Economic Develop -
THE LINK: SUMMER 2025
28
With its needs for workforce de - velopment, the business community has a responsibility to step in and help, she said. Epperheimer is a small company but has decided to make an investment in future Alaskans. “We encourage other businesses in the trades to explore opportunities for partnering with schools to in - spire students to consider careers in the trades,” Arbelovsky said. “Initia - tives such as mentorship programs, apprenticeships, and work-based learning experiences can help raise awareness. Many students are un - aware of the rewarding, well-paying career paths available within their own communities — paths that can provide stability and the option to remain local.” Epperheimer has also partnered with Kenai Peninsula Economic De - velopment District, with Arbelovsky joining KPEDD’s Comprehensive Economic Development Strategy committee to help promote work - force development in the community.
update with computers and informa - tion technology, that seems main - ly in areas including applications on cellphones, and Arbelovsky finds many students lack knowledge of how to work with desktop computers and other systems commonly used in the workplace. All of this starts with business - es reaching out to schools and get - ting into classrooms to meet and talk with students. Epperheimer has also started visiting middle schools to make younger Alaskans aware of the opportunities they have and, hope - fully, to get them interested in the industrial trades. Private companies have stepped in to supplement what the schools are able to offer. “There are a lot of budget pres - sures on schools. Teachers and coun - selors are now limited on what they are able to do. They can’t be proac - tive anymore to do things like reach - ing out themselves to businesses and community members to come into the schools. This is because of a lack of resources,” Arbelovsky said.
The company now typically works through December and resumes work in late January and February. A warm winter helps in the application of coatings on metals, which is mostly done outdoors. But the longer work season is helping Epperheimer retain skilled workers and recruit new ones. The Kenai Peninsula School Dis - trict has long taught career prepa - ration and education including in - dustrial skills like welding in its schools but its schools, like those across Alaska, have been under bud - get stresses. Industrial skills courses are expensive to operate and many school districts have had to cut back on these to maintain core academic programs. Arbelovsky said she is surprised at how basic some of the skills-train - ing needs are for students she works with. Fundamental understandings of tools and how to work with them once were taught at home or in shop classes at school are often missing and must be learned. Surprisingly, while young people today are thought to be quick on the
— Tim Bradner
BUILDING ALASKA ONE OUNCE AT A TIME CONAM’s track record of successful 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.
OIL & GAS CONSTRUCTION SERVICES | MINING CONSTRUCTION & MAINTENANCE | POWERPLANT CONSTRUCTION | PIPELINE CONSTRUCTION | REMOTE VILLAGE INFRASTRUCTURE TELECOMMUNICATIONS | DESIGN BUILD & EPC | GENERAL CONTRACTING & MANAGEMENT | PROFESSIONAL PLACEMENT & STAFFING Commitment to Safety & Quality | Anchorage · Kenai · Deadhorse | www.conamco.com | 907-278-6600
29
www.AlaskaAlliance.com
Graphite One, Lucid enter into agreement Photos Courtesy Graphite One The Graphite Creek Property, located on the Seward Peninsula in western Alaska north of Nome, has been discovered to hold America’s highest grade large flake graphite deposit, with 37.59 million tonnes of measured and indicated resources, according to Graphite One.
electric vehicles and other applica - tions. Lucid’s EV plant is in Casa Grande, Ariz. Graphite One plans to extract graphite at a surface mine, process the ore at the mine site to produce a graphite concentrate that will be trucked to Nome for shipping to a plant in Warren, Ohio, for the man - ufacturing of anode materials for batteries.
June, the company announced an agreement with Lucid Group, an electric vehicle manufacturer, to supply natural graphite anode ma - terials for use in batteries for the vehicles. The agreement is expected to be - gin in 2028, according to the com - panies. Graphite is used in lithi - um-ion batteries and the U.S. now imports all natural graphite used in
EV automaker set to tap into Alaska supply of graphite Graphite One, developer of a graphite deposit 37 miles north of Nome on the Seward Peninsula, has achieved a key milestone. In early
THE LINK: SUMMER 2025
30
Planning is at an advanced stage for the company’s mine, and a U.S. Clean Water Act Section 404 permit application will be submitted to the U.S. Army Corps of Engineers lat - er this summer, according to Mike Schaffner, Graphite One’s Senior Vice President for Operations. A feasibility study is complete, which is a requirement for financ - ing to be arranged. A Department of Defense grant helped finance the feasibility study, allowing it to be completed early. Capital costs of the mine are estimated at $950 million in the study. 155 exploration holes have been drilled at the mine along 1.2 miles of the graphite accumulation. The known geologic trend is 9.5 miles long and the deposit is open at depth, and to the east and west, meaning more resources are certain to be added, Schaffner said. In operation, the mine would employ about 250 in production with additional workers hired by contractors tasked with, among other things, trucking of ore to the barge storage area in Nome, Schaff - ner said. Bering Straits Native Corporation (BSNC) is expected to provide sup - port services for mine operations similar to the way Teck Alaska’s Red Dog Mine north of Kotzebue is supported by subsidiaries of NANA Regional Corp. Bering Straits is the Alaska Na - tive Regional corporation for the Seward Peninsula region of western Alaska, where the mine is located. BSNC is also an investor in Graphite One. Graphite One controls 176 state mining claims where the graphite deposit and facilities will be locat - ed. Schaffner said the Army Corps of Engineers will be the lead permit - ting agency. “We will submit the Section 404 permit application and the Army Corps will determine if an Envi - ronmental Assessment or Environ - mental Impact Statement will be required,” he said. An Environmental Assessment is a more streamlined review of en - vironmental effects while the En - vironmental Impact Statement is more detailed and requires more time. The decision made by the Corps for an EA or EIS will be deter - mined by how many wetland acres
Graphite One’s intent is to produce high-grade anode material for the lithium-ion electric vehicle battery market and energy storage systems.
are disturbed by the site and a 17- mile access road planned to be built from the existing state Nome-Teller highway. “This will be the only federal permit that is required. All other permits will be issued by the state of Alaska,” Schaffner said. An uncertainty on the Section 404 permit is the amount of acre - age that may be determined as wetlands. Graphite One has done mapping to be submitted with the application to the Army Corps but the Corps will make the decision as to whether the acres meet the tech - nical specifications for wetland in the Corps’ regulations. The U.S. Supreme Court’s deci - sion on wetlands in the Sackett case will weigh into this, and the deter - minations for Graphite One’s per - mit may be the first for the Corps under the Sackett case. “We have no role in the deci -
sion,” Schaffner said. “It will be decided solely by the Corps. Based on this decision, the acreage affect - ed, however, could range from five acres to 550.” One relatively recent change in the company’s plan is to drop a plan for a large camp for workers at the mine and to instead develop a sub - division in Nome and build houses for permanent employees in Nome as well as a lodge facility for res - idents of other communities like Teller and Brevig Mission. “It is envisioned that Graphite One would subsidize the houses, cosigning on loans, so that employ - ees can eventually own their homes. This is a model for employee hous - ing that has worked in Nevada to help recruit and retain workers. It really benefits the community,” Schaffner said.
— Tim Bradner
31
www.AlaskaAlliance.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48Made with FlippingBook - Online magazine maker