The Alaska Contractor - Spring 2013

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Spring 2013 The Alaska conTrAcTor 3

Ta b l e o f C o n t e n t swww.agcak.org

Publication of the Associated General Contractors of Alaska

The Alaska Spring 2013

The Alaska Contractor is published by AQP Publishing Inc. for the Associated General Contractors of Alaska. Contents of the magazine are not necessarily endorsed by AGC of Alaska or AQP Publishing Inc. All rights reserved. Copyright 2013 by the Associated General Contractors of Alaska. For information about articles in this edition or for permission to reproduce any portion of it, contact AQP Publishing Inc.

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Managing EditorRachael Fisher

EditorJamie Rogers

Graphic DesignerJustin Ritter

Project Sales ManagerClem E. Mewmaw

Advertising CoordinatorCarol Choi

Cover: Coeur AlAskA - kensington gold Mine - Miners sCAling A developMent drift,

A Modern ContrAst to historiC AlAskA Mining photos.

Photo: Courtesy of Coeur AlAskA

Cover IllustrAtIon: JustIn rItter

Associated GeneralContractors of Alaska

8005 Schoon St.Anchorage, AK 99518

(907) 561-5354Fax: (907) 562-6118

[email protected]

Editorial Board

Margaret EmpieC. John Eng

Mary KillorinJohn MacKinnon

Jennifer PriceApril Reilly

Lesli SwansonGeorge Tuckness

Scott Davis

Associated GeneralContractors of Alaska

feAtures

14 Alaska’s Construction Spending Forecast excerpts by Scott Goldsmith and Mouhcine Guettabi16 Building on Alaska’s mining industry by Deantha Crockett24 Usibelli Coal Mine celebrates 70 years by Bill Brophy and Lorali Simon30 AGC of America, Design-Build Institute of America

award NCI top honors by Rachael Fisher32 Alaska’s mining future by Zaz Hollander38 NANA Regional Corporation and Teck Alaska43 34th Annual Fairbanks AGC Golf Scramble registration50 Mining company poised to make history with

Bokan Mountain’s rare earth metals by Rindi White60 The Pebble Partnership by John Shively67 AGC Spring Train Ride registration72 Not your grandfather’s mining regulation by Bob Loeffler75 26th Annual AGC Anchorage Invitational Golf Scramble registration80 Donlin Gold project provides opportunity for Western Alaska by Kurt Parkan83 AGC of Alaska wins national membership award84 Fairbanks 16th Annual Bowl-A-Thon photo essay

89 2013 Legislative Fly-In90 2012 Winner’s of AGC’s Excellence in Construction Awards photo essay

profiles

20 Frontier Supply Company by Rachael Kvapil46 AA-K Business Environments by Cheryl Chapman68 Tumet Industries LLC by Rachael Kvapil76 North Star Equipment Services by Jamie Rogers

depArtMents

4 Winning Bids and Construction Trends

8 President’s Message by C. John Eng12 Executive Director’s Message by John MacKinnon36 Financial Services & Contractors by Bob Kedzior44 Contractors & the Law by Robert J. Dickson56 Safety Report by Chris Ross59 Human Resources Update by Barbara Stallone86 Beacon/WorkSafe by Ian Cooper and Amanda Johnson

Historic photographs inset on cover (From left to right)1) Miner in Front of Coal Mine Bering River Coal Field Katalla Alaska ©2013 AnChorAge MuseuM, B62.1.2355 / AlAskAstoCk.CoM

2) Gold Dredge Mining Cripple Creek Fairbanks Gold Rush AK Largest Dragline North America ©2013 AnChorAge MuseuM, B74.5.49 /

AlAskAstoCk.CoM 3) Man Operates Hand Crank Sluice Nome AK WE Summer Historical Gold Rush ©2013 CArrIe MClAIn MuseuM /

AlAskAstoCk.CoM 4) Alaska & Juneau Gold Mine Historic Photo ©2013 AnChorAge MuseuM, B72.46.173 / AlAskAstoCk.CoM



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4 The Alaska conTrAcTor Spring 2013

Note: Winning Bids and Construction Trends

1) Source from projects advertised in the AGC of Alaska Bulletin

2) Calculations based on date of bid

3) Supply/Service; Non-Construction bid results are not always advertised in the bulletin

4) RFP results are not always advertised in the bulletin

ArcTIc & WESTErn KOLIGANEK SCHOOL

REPLACEMENT $18,259,550

UNIT CO.

POINT HOPEPOWERPLANT UPGRADES

$7,897,000ASRC SKW ESKIMOS INC.

POINT LAY KALISCHOOL FACILITY RENO

$6,277,000UIC CONSTRUCTION INC.

POINT LAY WATER RESERVOIR PHS II$4,647,000

POINT LAY CONSTRUCTORS

AK DALTON HWYHOLDEN CREEK BRIDGE

$3,964,939AIC

KOTZEBUE LIFT STATIONS REPLACEMENT

$2,979,000DRAKE CONSTRUCTION

RUBY KANGAS SCHOOL MODERNIZATION

$2,757,118JOHNSON RIVER ENTERPRISES LLC

BARROW NSB ROAD IMPROVE $1,995,598

UIC CONSTRUCTION INC./SKW ESKIMOS JV

NUNAM IQUA 4 PLEXTEACHER HOUSING

$1,690,000YUKON RIVER TOWING LLC

FALSE PASS ACCESSRESURFACE/BRIDGE REPAIR

$1,222,925RIDGE CONTRACTING INC.

TOKSOOK BAY WATER STORAGE TANK $862,807

JAFFA CONSTRUCTION

InTErIorCHUTLINA PARKS HWY

PAVEMENT PRESERVATION $14,495,924

QAP

FBKS HELMERICKS AVE EXT/BENTLEY RD UPGRADE

$4,914,912EXCLUSIVE PAVING

NORTH POLE NORDALEROAD REHAB

$4,442,893H C CONTRACTORS INC.

FBKS CARLSON CTR IMPROVE PHS II $2,864,212

G2 CONSTRUCTION INC.

DENALI ROCK CREEK CULVERT $2,266,721

AHTNA ENGINEERINGSERVICES LLC

HEALY DENALI PARKSANCTUARY AREA

$1,492,310TUTKA LLC

SoUTHcEnTrALANCH UAA AHS RENEWAL PHS 2 & 3

$2,516,777ROGER HICKEL

CONTRACTING INC.

PALMER DES/BLDCLASSROOM EXPANSION

$2,181,464FE CONTRACTING INC.

CHUGIAK SENIORCENTER EXPANSION

$1,999,479COHO CONTRACTORS LLC

ANCH RESIDENTIAL SOUND INSULATION #17

$1,950,978KOCH CORP.


JUNEAU LEGISLATIVE AFFAIRS RENO $1,142,100

ALASKA COMMERCIAL CONTRACTORS INC.

KETCHIKAN VALLEY PARK HIGH SCHOOL RE-ROOF

$824,000COOGAN CONSTRUCTION

ANCH RESIDENTIAL SOUND INSULATION #16

$1,880,832KAUTAQ CONSTRUCTION SERVICES LLC

KODIAK ALEUTIAN HOMES WATER/SEWER PHS V

$1,539,580BRECHAN ENTERPRISES INC.

ANCH SULLIVAN ARENA HVAC CONTROL UPGRADES

$1,415,094MANTECH MECHANICAL INC.

AK ENGINE/GENERATOR SETS $1,172,994

MARSH CREEK LLC

ANCH MERRILL FIELD CAMERA/LIGHTING PHS II

$922,952ALCAN ELECTRICAL & ENGINEERING INC.

ANCH IRIS DRIVE SEWER UPGRADE$783,813

BRISTOL DESIGN BUILD SERVICES LLC

ANCH RELOCATE DISTRIBUTION FAC PHS II

$685,063HOT WIRE ELECTRIC

SoUTHEAST AK M/V COLUMBIA

REPOWER/UPGRADES$24,656,694

VIGOR MARINE LLC

SITKA HALIBUT PAVE/BRIDGES/SEWER/DRAINGE

$19,292,938ASRC MCGRAW

CONSTRUCTORS LLC

SITKA AIRPORT RUNWAY OVERLAY $9,892,223

SECON

WRANGELL ZIMOVIA PAVEMENT REHAB

$7,822,574SECON

HYDABURG SMALL BOAT HARBOR RENO

$3,524,340PACIFIC PILE AND MARINE LP

POW BIG SALT RD PAVEMENT REHAB $2,625,072

SOUTHEAST ROAD BUILDERS

SITKA PARKING LOT IMPROVE $2,613,651

S&S GENERAL CONTRACTORS

JUNEAU BAYVIEW WATER IMPROVEMENTS

$1,348,030ARETE CONSTRUCTION CO.

http://www.carlile.biz


JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC$-0

$150,000,000

$300,000,000

$450,000,000

$600,000,000

$750,000,000

$900,000,000

$1,050,000,000

$1,200,000,000

annual

building

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

TRENDS

20082009

2007

2010201120122013

20082009

2007

2010201120122013

20082009

2007

2010201120122013

$-0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$-0

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

$550,000,000

$600,000,000

$650,000,000

highway

Source: Winning bids for projects advertised in the AGC of Alaska bulletin.

http://www.insulfoam.com

http://www.nwcarpenters.org


C. JOHN ENG

President

PRESIDENT’S MESSAGE

Promote training offeredby our AGC chapter,national AGC and other organizations

S ome years ago, Mike Swalling was very involved in the November annual conference. Mike was successful in obtaining a “futurist” as one of the

featured presenters. A futurist is a person who examines existing research regarding a variety of subjects then predicts what our society will look like. The speaker commented on past assumptions and predictions and why past predictions were wrong or at least partially wrong. One comment involved businesses and the lack of advancement in productivity, including disappoint-ments in productivity improvement. One observation involved organizations that spend money on computers and software then observe little or no improvement in performance over what the organization had been able to do in the past. The most memorable comment involved the need for training. The presenter pointed out that a good rule of thumb with respect to electronic purchases was as follows: if $1 is spent on hardware and $1 spent on software, we should be prepared to spend $8 on training. The presenter pointed out that if an organiza-tion is not willing to devote money and other resources to training, it can be a waste of effort to proceed with acquisition of costly purchases. So my comments during this issue are devoted to reiterating how important AGC is to providing training opportunities that are usually not available within our own fi rms.

Business training Since the bulk of business mistakes are related to

poor business decisions, I want to point out the busi-ness training opportunities that have benefi tted our fi rm. AGC training in this area includes:•Projectmanagertraining,usuallyseventoninedays

at a remote site. This is offered by national AGC.•Advancedmanagement,seventoninedays,this

intense training is offered by national AGC.•LeadershipinConstruction,byconstructorsfor

constructors, this is an intense 360-degree training opportunity offered by the AGC San Diego Chapter.

•Superintendenttraining,theseopportunitiesareoffered by our chapter from time to time, AGC

chaptersintheLower48andbyavarietyofuniontraining centers throughout the U.S.

•TrainingopportunitiesforforemenareofferedbyAGC, unions and other facilitators that we interact with in business.

Technical training As our industry changes, communication formats

change. Some frequently mentioned technical training classes are helpful in the following areas:•BIM (Building Information Modeling): With proper

training, this advances our industry and involves opportunities to train people to reduce onsite inter-ferences prior to material fabrication.

•LEANconstruction.•LEEDmonitoringandtraining.•Time-lapse photography: This technique has been

available for a few decades, but with digital tech-nology advancements, the equipment has become less expensive, and immediate review of a workday is available at the end of each shift. People can betrained to revise daily operations to make work safer and less costly.

•Ourchapteroffersourheadquarterstoowners,suchas the Corps of Engineers, Alaska DOT and otherowners, to help contractors prepare for certifi cation requirements for storm water discharges on sites (SWPPP), quality-control programs and other stan-dards required by new laws and regulations.

Craft-related trainingMany opportunities are available and are encouraged

and/or facilitated by AGC. Some of these opportunities include:

•iPadorothertablettraining—Iamamazedathowprofi cient people have become in using smart-phones and tablets to photograph and send ques-tions to a job offi ce and designer’s offi ce for review and comment. Our fi rm is using electronic time cards and attempting to get immediate daily data to compare our performance with our labor budgets.

Continued on page 10

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•Newtools—Aspowertoolsbecomemore demanding to operate, manu-facturers offer training that is essen-tial for safe use and productivity. AGC member Teri Gunter has been helpful with her firm’s training opportunities.

•Heavy equipment operators havemany training requirements that can be satisfied with training centers offered by apprenticeship programs.

•Alaska ConstructionTrainingAcad-emies were created in 2006. AGC of Alaska was a large catalyst in forming these acadamies so that people have an introduction to welding, carpentry, electrical and plumbing skills. The academies offer an oppor-tunity to refine skills in mathematics, safety, tool identification and usage, plan reading and the need to pass drug screening guidelines.During an AGC annual conference a

couple of years ago, people voiced their desire to be AGC members because they wanted to transfer their knowl-edge and give back to the construc-tion community. This sounds noble, but AGC is surviving and prospering because our members get benefits from being actively involved in the organiza-tion. Training is only one of the benefits, and many of the anachronisms printed above in this message were not even created until recent years. My encour-agement to each person who reads this issue involves asking AGC members to help investigate how the organization can make each of your firms, as well as our statewide industry, better busi-nesses because of outstanding profes-sional training that our chapter can help identify and facilitate.

Thank you all for electing me as your chapter president this year. I hope you find this article thought-provoking and helpful.

For information about current classes and courses available at AGC of Alaska, go to: www.agcak.org/Training.html.

Continued from page 8

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EXECUTIVE DIRECTOR’S MESSAGE

JOHN MACKINNON

Executive DirectorMining is a sleeperI n this issue we present informative articles written by

industry experts that provide a broad representation of Alaska’s fl ourishing mining industry. There is so

much happening it would take three issues of The Alaska Contractor to cover it all.

I refer to mining as a “sleeper,” because it is happening all around us, and the products from mining affect our everyday lives. Most notable in the construction industry is the $80 million in production value from more than 120 active rock quarries, and sand and gravel operations throughout Alaska. Stop and think about where we would be if these resources weren’t so available. Many of these operations are in our backyards and are very low impact.

An economic engineAlmost $3 billion has been spent on mineral explora-

tion in Alaska since 1981.In 2011, estimated production for more than 200 placer

mines was 70,000 ounces of gold, as well as platinum.The gross mineral production value from Red Dog, Greens

Creek,FortKnox,Pogo,KensingtonandUsibelliCoalmines,placerminesandrock,sandandgraveloperations—$3.8billion—increased16percentfrom2010to2011.

The Usibelli Coal Mine provides for 100 percent of the in-state demand for coal including energy for much of the Interior, the University of Alaska Fairbanks and the mili-taryforthepast70years.Itscoalexports,throughthePortof Seward, contributed not only to Alaska’s $1.3 billion of mineralexports in2010—31percentof thestate’s totalexports—butalsohelpedimprovetheAlaskaRailroad’sbottom line.

The state received nearly $150 million in rents, royal-ties, fees and taxes revenue in 2011 — up 170 percentfrom 2010.

Localgovernmentrevenuethroughpropertytaxesandpayments in lieu of taxes totaled $21 million last year.

The 7(i) royalty sharing provision of ANSCA netted$124millioninproceedslastyearbenefittingeveryregionin Alaska.

Far-reaching, high-quality employment opportunities Mining results in year-round jobs for residents of more

than 120 communities throughout the state, half of which are found in rural Alaska where few other jobs are available —themaponpage17illustratesthis.

The jobs that mining provides are some of Alaska’s highest paying jobs with an estimated average annual

wageof$100,000—morethantwicethestateaverageforall sectors of the economy.

Therearemorethan4,500directminingjobsinAlaskaand an equal number of indirect jobs that can be attributed to the Alaska mining industry and $650 million annually in total direct and indirect payroll.

Out of sight but not out of mindThere’s also the relentless onslaught on the Pebble

Project, supported by some prominent Alaskans whoshould show more class than they do. They help fi nance environmental groups that enlist the help of idealistic young “Meadow Muffi ns” to spread the word of the apoc-alypseanddoomtotheEarthifaprojectisdeveloped,andthey hide behind the veil of not-for-profi t status. Truth is they are big business — national and multi-national —and they’re preying on the emotions of donors to keep their message playing.

Alaska has the strongest environmental laws in the nation and even some of the strongest in the world. One has only to visit the North Slope oil fi elds and compare themwithanoilfieldinLouisiana,TexasorCalifornia:Wedon’t tolerate what are acceptable standards in other states. In Alaska’s mining operations, as the article “It’s not your grandfather’s mine” on page 72 shows, we insist on similar high standards when it comes to the mining industry. The preemptive effort by the EPA with their WatershedAssessment is premature, extreme and sets a dangerous precedent.

Strong community connectionsThe story of how the one of the world’s largest zinc

mines, Red Dog, was developed with the support, advice and consent of the Alaska Native residents of the North-west Alaska region is a case study in how it should be done. NANA shareholders make up the majority of the Red Dog workforce.

Furthermore, one has only to also look at the develop-ment of the Kensington Mine and the level at which locals are being engaged in other project developments, such as PebbleandDonlinGold—whichhasattimesexceeded90percentlocalhire—toseeclearsimilaritiesofresponsibleresource development. These are examples of how we do it right in Alaska, environmentally and socially. Mining works; our mineral resources are abundant, and Alaskans have long benefi tted from its innovation and success of development here.

http://www.eklutnainc.com


Eight percent increase in construction spending predicted in forecast

OVERVIEWThe total value of construction

spending “on the street” in Alaska in 2013willbe$8.4billion,up8percentfrom 2012.

Wage and salary employmentin the construction industry, which increasedabout4percentlastyear,to16,500, should remain stable for the coming year.

The oil and gas sector will account for most of the growth this year. It will total $3.6 billion, up from $3.2 billion lastyear.Otherspendingwillbe$4.7billion,upfrom$4.6billionlastyear.

Privatespending,excludingoilandgas, will be about the same as last year —$2billion—andpublicspendingwillincrease from $2.6 billion to $2.7 billion.

There is some downside risk to the forecast this year, not only in the oil and gas sector and those sectors most sensitive to federal funding, but also for spending funded by the state.

The continued uncertainty about the future direction of state petroleum tax policy, possible new energy policy initiatives put forward by the second Obama administration and the pros-pects for construction of a gas pipeline to commercialize North Slope gas add a cautionary note not only to industry planning but to the entire economy. The state capital budget continues to be a driver for construction spending.

PRIVATELY FINANCEDCONSTRUCTIONOil and Gas:$3,638 Million

The biggest sector, and the one expected to increase the most this year, is oil and gas.

We expect that if actual spendingmatches the announced plans and past experience in the industry, spending will be up 13 percent from last year.

The growth is being driven by the continuing high prices of oil and gas,

BY SCOTT GOLDSMITH AND MOUHCINE GUETTABI, INSTITUTE OF SOCIAL AND ECONOMIC RESEARCH, UNIVERSITY OF ALASKA ANCHORAGE

the increase in the cost of inputs to all phases of oil and gas operations, the growing need to maintain the aging infrastructure and facilities on the North Slope and in Cook Inlet, and last but not least, the tax credits available to compa-niesaspartofACES(Alaska’sClearandEquitableShare)productiontax.

The most signifi cant activities of the majors operating on the North Slope (BP,ConocoPhillipsandExxon)willbespending to increase production from existing fi elds in the short term.

AlsoontheNorthSlope,ENIwillcontinue to drill in the Nikaitchuq fi eld, Pioneerwillbeevaluatingapotentiallarge expansion of the Oooguruk fi eld with an additional production pad and Savant will continue development of Badami.

Work continues to maintain theTAPS (trans-Alaska Pipeline System)and to modify it to meet the challenges of reduced fl ow.Mining:$330 Million

Spending by the mining industry — on exploration and development,

Excerpts from “Alaska’s Construction Spending 2013 Forecast”

as well as maintaining and upgrading existingmines—willbedownmargin-ally this year. Investment will be up at Greens Creek to extend the life of the mine.Drilling and other site work continues to move three world-scale mineprojectstodevelopment(DonlinCreek,PebbleandLivengood)aswellasseveralsmallerprospects(includingNiblack,BokanandWishboneHill).Other Basic Industries in Rural Alaska:$20 Million

Investments in facilities to support tourism, the seafood and timber industries, and other natural resource industries often occur in rural areas, hidden from view. The most signifi -cant project identifi ed for this year is the expansion of a seafood processing plantatFalsePass.Utilities:$830 Million

Utility spending — electric powergeneration, transmission and distribu-tion; telecommunications; and natural gas transmission and distribution —will be marginally higher this year.

The new gas-fi red electric genera-tion plant near Anchorage Interna-tional Airport is nearing completion, and construction of two other large plants is scheduled to begin soon. Tele-communications spending will also be higher this year, driven by new fi rms moving into the market (Verizon),as well as continued expansion and upgrading of facilities by existing companies.Hospitals and Health Care:$229 million

The new hospital in Nome and the Chief Isaac Medical Center in Fair-banks are complete, and construction of the hospital in Barrow is nearingcompletion. That will reduce spending on hospitals and other health care institutions in 2013.


Work will continue on the Provi-dence Generations Project expansioninAnchorage.WorkonareplacementhospitalinWrangellmaybeginbylate2013, and a new hospital in Ketchikan is in the development stage.Other Commercial:$150 Million

Commercial construction spending consists primarily of offi ce buildings, retail space, warehousing and whole-sale space, banks, private medical offi ces and outpatient clinics.

The level of spending from year to year can be infl uenced by a few projects, and we project it will be moderately higher this year. Projects announcedfor Anchorage include one or more big boxes — Cabelas, Bass Pro, Walmartand a new Sam’s Club — as well assome smaller retail stores such as WalgreensandtheNaturalPantry.Residential:$440 Million

Alaska has been largely insulated from the national housing market crash, both in prices and foreclosures. The market has been stable for several years, but in 2012 it began to tighten a little.Weexpectanupwardmovementin the number of units and their value will continue in 2013.

PUBLICLY FINANCEDCONSTRUCTIONNational Defense:$209 Million

National defense spending will take a big hit this year as the budget for MILCON (military spending forfacilities on bases) drops from $300million to less than $50 million.

New fi ring ranges and utility upgrades are the only projects currently scheduled.

The other parts of defense spending will be similar to last year. Transportation — Highways:$824 Million

Growth in spending for highways and roads, driven by the large state capital budget and transportation bond packages, will offset the decline in military spending.

TheMAP21FederalTransportationReauthorization Act that passed the Congress last year appropriated $460million for Alaska for transportation projects (including the ferry system),

as well as funding for the Tribal Trans-portationProgram.

In addition to the state match for the MAP21 funds, the 2013 capitalbudget contained a number of fund

categories dedicated to highways.Transportation — Airports, Ports and Harbors:$479 Million

Spending for airports, ports and harbors will be higher this year because of increases in state general fund spending and the general obliga-tion bond package for transportation, which includes nearly $200 million forports,includingprojectsatHaines,Kodiak, Seward and Sitka.

The state has so far appropri-ated about half the funds needed to extendtherailroadtotheportatPointMacKenzie to complete development of that port. Alaska Railroad:$24 Million

The capital construction program for modernizing and upgrading the Alaska Railroad will be down this year mainly because of a drop in railroad revenues.Denali Commission:$13 Million

The Denali Commission will again take a large budgetary hit this year.

Most of its capital budget will be for energy-related projects.Education:$497 Million

Funding for education will increase this year, driven by a large University of Alaska budget, the funding of two new rural schools and some locally funded schools fi nally under construction.

Construction of the Seawolf Arena in Anchorage is continuing, and two new engineering buildings are expected to start construction this year.

Two new schools will be under construction in western Alaska at EmmonakandKoliganak.

New schools will be under construction in Valdez, Kodiak, andlikelytheMat-SuBorough,fundedbylocal bonds that are largely reimbursed by the state.Other Federal:$245 Million

Federal spending not already discussed will be about the same as last year. In addition to funding a large

share of spending on transporta-tion infrastructure , the federal govern-ment has many other smaller grant programs that funnel money through the state capital budget.

The largest of these capital programs is the Village Safe Waterprogram for rural sanitation. Other State and Local:$450 Million

State and local government capital spending — excluding transportation(roads,airportsandports),education,health and utilities — is down fromlast year.

What remains in the state capitalbudget is the SLAM (state libraryarchive museum) building in Juneau,as well as a number of other smaller buildings and libraries in other loca-tions, deferred maintenance, Alaska Housing Finance Corporation energyrebate and weatherization programs, and miscellaneous grants to local governments for things like water and sewer upgrades and housing.

WHAT’S DRIVING SPENDING?The three primary drivers of

construction spending are private basicsectorinvestment(mainlypetro-leum and mining), federal spending(militaryandgrantstostateandlocalgovernments and nonprofi t organi-zations) and state capital spending(which ultimately depends on petro-leum revenues) through the generalfund and bond sales.

CONSTRUCTION IN THE OVERALL ECONOMY

Annual wage and salary employ-ment in the construction industry in 2012 was about 16,500 workers, with an average annual payroll of $70,000 per worker, second only to mining (includingpetroleum).

Scan to view“Alaska’s Construction Spending

Forecast 2013,” or go to: www.agcak.org/2013Forecast.pdf

http://www.agcak.org/2013Forecast.pdf


W e say it loudly and proudly and can’t say it enough: Mining works for Alaska.

Mining, which is of course deeply rooted in Alaska’s history, is still a critical component of the state’s economy today. The benefi ts that result from Alaska’s mining activity are far-reaching, which says a lot for a state of our size and structure.

Mining works for Alaska because it’s all about jobs. These jobs provide an average annual wage of $100,000 and provide stable, year-round employment for residents of more than 120 Alaska communities. About 5,000 people work directly in Alaska’s mines, but the overall industry accounts for about 9,500 jobs and a payroll of $650 million annually.

It also works for Alaska in terms of local benefi ts. In 2012, revenue to local governments totaled about $21 million. A large part of that, about $13 million, goes to the North-westArcticBorough,wheretheRedDogMineistheonlytaxpayer.Payments inLieuofTaxes(PILT)havebenefittedthe region tremendously and fi nanced essential items like schools, infrastructure and services for area residents. About $5millionwent to theFairbanksNorthStarBoroughand$3milliontotheCityandBoroughofJuneaufromminingactivity in those areas. Additionally, the City of Nome and theDenaliBoroughalsoreceiveminingtaxrevenue.

On a similar note, mining works for Alaska Native corporations. Revenue from resource development on Native-owned lands benefi ts every corporation in the state through7(i)and7(j)royaltysharing,negotiatedundertheAlaskaNativeClaimsSettlementAct(ANCSA).Theconceptbehind royalty sharing is that some regions have more plen-tiful natural resources than others; therefore a portion of annual income received from the development of resources would be shared with the other regions. Just like with oiland gas development in the Arctic and logging in South-

east, mining has directly benefi tted each region in Alaska, eventhosewithoutminingactivity.Ofthe$124millioninnet proceeds NANA Regional Corp. received from the Red Dog Mine last year, $76 million was distributed to the other ANCSA regional and village corporations.

Mining works for corporation shareholders too: The Red Dog Mine’s 600-person workforce is made up of nearly 60 percent NANA shareholders.

Mining also works for the State of Alaska. In 2012, the state collected $80 million in royalties, taxes, rents and fees from the industry. It also collected another $60 million in revenues to the Alaska Railroad for mineral transport, to AIDEA for theuseof infrastructure at theRedDogMineroad and port site and the Skagway Ore Terminal, and $3 milliontotheAlaskaMentalHealthTrust.

As with any economic engine, the mining industry has tremendous trickle-down benefi ts as well. A recent study commissioned by my organization found that the mining industry purchases goods and services with more than 600 Alaska businesses, totaling $500 million per year. These are often local, small businesses such as air taxis, lodges, catering and food suppliers, etc.

Thank you for letting me take a good portion of this article to brag about my industry. Now, what do the Asso-ciated General Contractors care about most in regard to mining?Workingtohelpusbuildontheindustry,wehope.

I’ve given a signifi cant amount of information about theoperations sideofmining.However, thedevelopment(read:construction)phaseofaminingprojectisoftenjustasbenefi cial. In the construction phase of a project, the number of workers needed is almost always higher than when the mine is in operation. That means jobs for those who build Alaska—you.Miningprojectsneedindividualsandbusi-nesses to help build roads, airstrips, port facilities, power plants, transmission lines, camp facilities, mills, and the list goes on. For instance, the Donlin mine in Southwest Alaska will require construction of mine facilities and a 313-mile natural gas pipeline, and the companies developing the project estimate needing 3,000 workers to do so.

In addition to the construction and operation of mining projects, creating energy solutions for Alaska is another aspectinwhichmyindustryplaysapart.Historically,miningactivity brought major construction to areas where little orno infrastructureexisted.Onegreat example is Juneau,where the hydro system constructed for mining projects in the early 1900s still powers the area decades later.

Today, proposals such as an in-state natural gas pipeline and the Susitna-Watana Dam will ultimately helpAlaskawith its dismal energy situation and help residents, espe-cially in Interior and rural Alaska, with their staggering costs. However, we cannot forget that any energy project

Building on Alaska’s mining industryBY DEANTHA CROCKETT, EXECUTIVE DIRECTOR, ALASKA MINERS ASSOC.

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FEATURED IN THIS ISSUEUsibelli Coal Mine ........Page 24Red Dog Mine ..............Page 38Bokan Mountain ...........Page 50Pebble ..........................Page 60Donlin Gold ..................Page 80


must be economic to build, and that is where mines come in. Mines are extremely energy-intensive operations: Donlin expects to need an average of 157 megawatts at its project, and the proposed Pebble Project in SouthwestAlaska expects to need nearly 500 megawatts. Adding such high demand to the consumer base makes these large energy projects more feasible and more of a reality.

To help you help us build Alaska, we have embarked on a workforce develop-ment initiative with the large exploration projects and currently operating mines in thestate.Wearealreadyawarethatwithlarge-scale projects on the horizon, we need to prepare now to ensure we have skilled workers when it comes time to build and open these mines. This starts in the schools and goes through college and vocational programs to ensure we have Alaskans ready to fill those jobs. Alaska Construction Academies plays a vital role in this, and we look forward to working together on this initiative.

So you see, mining works for AGC too.We’dlovetokeepworkingforyou— and with you — to make sure themining industry in Alaska continues to provide benefits in a number of ways. The Alaska Miners Association appreci-ates the partnership we have with AGC and its members and understands that we too benefit from your leadership and efforts.

Lastly,IinparticularappreciateJohnMacKinnon for the insight and guid-ance he has offered me in my new role asExecutiveDirectorofAMA.Asisthecase with both our organizations, we work well together and have the same common goals and interests for Alaska’s future. I look forward to continuing to “work” (last pun, I promise) withAGCmoving forward.

Mining projects need individuals and businesses to help build roads, airstrips, port facilities, power plants, transmission lines, camp facilities, mills, and the list goes on.

http://www.sbsalaska.com

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rom an outside perspective, few things have changed in the 24 years Frontier SupplyCompanyhasbeen inAlaska.However, itshumble development, from a single location

in Fairbanks to three major storefronts in Alaska and Guam, can be attributed to consistent lead-ership. As that leadership changed, the vision of Frontier as a full-line wholesale distributor of plumbing, heating, industrial piping, waterworks and mining products remained steady. Even thechanges to its logo, made after Mike VivlamorehandedFrontier’sreinsovertohissonBillin2005,were subtle.

“Bill took the logo his dad had at the time,brought the dog to other side of the snowshoer and added mountains to the background,” said Karl Gohlke, outside sales for Frontier.

Mike Vivlamore, along with five associates,started Frontier Supply Company in August 1989. The initial location was in an 8,000-square-foot buildingoffofVanHornRoad inFairbanks.Yet, itwasn’t long beforeVivlamore expanded Frontier’scapacity when he bought a small company, Far

NorthBuildingSupplyandtransitioneditinto“ThePlumbing Showcase.” This investment broughtFrontier into the showroom business of cabinets, doors, windows and fi xtures. After working a few years in separate offi ce and warehouse locations, FrontiermoveditsVanHornlocationdownthestreetand doubled its space so it could bring everything

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Steady growth and active leadership lead to long-term success

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FRONTIERSUPPLY COMPANY By RACHAEL KVAPIL

Bill Vivlamore with Karl Gohlke at Kinross Fort Knox Mine in front of pipe sold for the Heap Leach Project.

Frontier Supply Company Anchorage store.

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under one roof. However, expansionon the Fairbanks front was just a start. Whentheopportunityarose,Vivlamoreestablished additional Frontier locations in Anchorage and in Guam.

“Mike is a hands-on guy,” Gohlke said.“He is w hat I would consider amover and a shaker, always ‘in future focus’ — an attitude that has alwaysmade his entrepreneurships a success.”

The Anchorage location opened in August 2005 with a 96,962-square-foot lot and a 15,000- square-foot warehouse building with a 2,200-square-foot offi ce/sales counter. Exactly five years later,Frontier established a 20,000-square-foot offi ce/sales counter and warehouse building and a 1½-acre outside storage yard in Guam. There are currently 29 employees at the Fairbanks store, 13 in the Anchorage store and nine in Guam. Frontier recently added a salesman in Honolulu.

Gohlke explained the active role MikeVivlamore took when it came toFrontier’sexpansion.HesaidVivlamorespent a full year in Anchorage, going step-by-step in designing the facilities, stocking the shelves and working with newemployees.Vivlamorewasequallyas involved with the setup of the store in Guam. Gohlke attributes this type of dedication to the success of Frontier.

“Mike is one of those early-to-bed, early-to-rise types,” Gohlke said. “In Fairbanks, he was the fi rst into the store next to ourWarehouse ManagerWillyLipps.I’mnotsurewhattheydiscussed,but they were there. It’s one of the things I admire about them.”

Lipps laughs when asked aboutthoseearlymorningsessions.Hesaidmost of the time he and Mike were “shooting the breeze,” taking the hour before everyone else arrived to

Frontier Supply maintains a full line of supplies in each of its warehouses.

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get theday inorder.Lippshasbeenwith Frontier for 22 of its 24 yearsyet still thinks about its growth with amazement.

“I was most surprised when we expanded to two stores,” Lipps said.“I never thought Mike would be adventurous.Ithought‘Ohgosh!’Butmoving to the new building (in Fair-banks) helped. It was bigger, and wehad more people. It made it easier to manage stuff coming in.”

Both Lipps and Gohlke havebeen around for additional changes to company ownership. In 2005, BillVivlamoretookoveroperationsoftheFairbanks storefront as his father was establishing Frontier in Anchorage. GohlkesaidBillVivlamoreworkedhisway up from the age of 13, sweeping fl oors, cleaning counters, working in the warehouse, in customer service, sales, as vice president and now presi-dent.Lipps,whohasworkedwithBillVivlamore from the start, said all thehard work has paid off.

“When he got out of school, hetook the bull by the horns and got into it,”Lippssaid.Thiswasfurtherprovenrecently when Bill Vivlamore was

Frontier Supply Company Guam Storefront.

selected to Alaska’s 2013 Class of Top Fortyunder40,adistinctionthatrecog-nizes 40 outstanding young peoplemaking a difference both professionally and personally throughout Alaska.

Along with changes to the company, changes in the economy have resulted in a variety of clients working with Frontier.WhenMikeVivlamoreopenedthe company primarily worked on

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military construction projects. However,by the time Bill Vivlamore took over,mining projects became more prominent. Since then, the company has frequently workedonprojectsforPogoGoldMine,Red Dog Mine, Fort Knox Gold Mine, InternationalTowerHillsandtheNixonForkGoldMine.Likewise,itworkswitha number of vendors providing supplies for additional projects across the state. TomFisher,presidentofAaronPlumbing&HeatingCo.,saidhecontinuestoworkwith Frontier because its customer service is a notch above competitors.

“We have to ask ourselves, ‘Howmuch is service worth?’” Fisher said. “Essentially what we are purchasing isthe ability to track things, to have an answer to our questions and a higher level of service. That kind of business relationship helps us succeed.”

Frontier has been an AGC member since 1990. Though health insurance is a main benefi t, Gohlke said that AGC does a great job creating statewide networking opportunities for its members. Given that Frontier is a smaller-sized company, Gohlke said it has helped them compete in the bigger markets.

As for the future, Gohlke said the route the company takes depends on the economy. For now the focus is mining-related projects, but additional projects are possible once the state formulates a plan to create cheaper energy and develop a supportive infrastructure.When thosepieces of the puzzle are in place, Gohlke thinks additional opportunities will make it easier for Frontier and other Alaska businesses to expand.

Rachael Kvapil is writer and photo-grapher who lives in Fairbanks, Alaska.

Frontier Supply Company discussing options with customer.

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BY BILL BROPHY AND LORALI SIMON

Usibelli Coal Mine Inc. is proud to be the longest continually operating mine in Alaska. This

family owned and operated company wasfoundedin1943byEmilUsibelliand is the only operational coal mine inthestate.Emil’sson,JoeUsibelli,ischairmanoftheboardofdirectors.JoeUsibelli Jr., Emil's grandson, is presi-dent of UCM.

UCM is located in the mountains of the Alaska Range, near the town of Healy. UCM is 115 miles southof Fairbanks and 150 miles north of Anchorage adjacent to the ParksHighwayandtheAlaskaRailroad.

This year marks an exciting time for UCM as it celebrates its 70th year in operation. What began as a one-

year contract to supply 10,000 tons of coaltotheU.S.Army’sLaddArmyAirField(knowntodayastheFortWain-wright U.S. Army Post) has becomeAlaska’s only operating coal mine producing about 2 million tons per year. Coal is delivered to six Interior Alaska electrical generation power plants, including three military sites: FortWainwright (U.S.Army); EielsonAir Force Base and Clear Air ForceStation;aswellasGoldenValleyElec-tric Association; Aurora Energy LLC,a wholesale supplier of electricity and provider of district heat in Fairbanks; and the University of Alaska Fairbanks’ power plant. UCM exports about 1

million tons of coal annually through the Seward Coal Terminal to Chile, SouthKoreaandJapan.

In addition to celebrating 70 years of production in 2013, UCM is also excited about moving into a newminingareainHealy,theJumboDome Mine. There are approximately 83 million tons of ultra-low sulfur, sub-bituminous, coal reserves in the JumboDomeMine.Afterseveralyearsof data collection and permit writing, the JumboDomeMinepermit appli-cation was reviewed by eight state and federal agencies. The permit was granted in February 2012.

Highly visible naturally exposed outcroppings of coal seams surround Usibelli Coal Mine in the mountains of the Alaska Range near Healy.

Usibelli Coal Minecelebrates 70 years

photo: Chris Arend


UCM: PAST AND PRESENTMiningbegan inHealy in theearly

1900s in an area known as Suntrana. An abundance of naturally exposed outcrop-pings of coal seams is highly visible and resulted in the Alaska pioneers tunneling directly into the seams to secure fuel for steam-driven riverboats and the railroad. During World WarII, Ladd Army Air Field in Fairbanksbecame an important military base. To reduce its dependency on a single fuel supplier, the military began exploration work on military coal reserves east of theSuntrana.Withaone-yearcontract,Emil Usibelli began operations with asmall International TD-40 dozer anda converted GMC logging truck. The dozer was used to push the overburden off the coal outcrops and then push the exposed coal into the truck bed.

During the 1950s and into the early 1960s, Usibelli operated both surface and underground mines. As underground coal near the surface became more diffi-cult to produce, the company decided it was both safer and more economical to mine from the surface. UCM has conducted surface mining operations exclusively since 1962.

In March 1964, Joe Usibelli, at age25, returned from graduate studies in mechanical engineering at Stanford University to take over management of mining operations in the community of Usibelli, Alaska. Joe Usibelli remainedpresident and leader of the company untilAug.1,1987whenhisson,JoeJr.,tookthehelmaspresident.JoeUsibellicurrently serves as chairman of the board of directors.

In 1971, UCM purchased the neigh-boringVitro Mine and became the soleproducing coal mine in Alaska. Today, UCMmines intheTwoBullRidgearea,aswellasGoldRunPassMine.Thethreeseams of coal that UCM mines extend about400feetbelowthesurface.Thecoalseams range between 20- and 40-feetthick, and the overburden and inter-burden range from 60- to 150-feet thick.

At this time, UCM is constructing a roadtothenewJumboDomeMineandhopes to begin mining coal at the new site this spring.

In addition to the mining opera-tions in Healy, UCM holds coal leasesand permits in the traditional area of the Matanuska Coal Field. Similar to

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Healy, coal mining in the MatanuskaCoal Field began in the early 1900s. TheWishbone Hill Mine is about 10miles north of Palmer, in the vicinityof Sutton. Exploration at WishboneHill began in 1983. There are more

than 300 test holes drilled in the area.What makes theWishbone Hillproject unique is that it is the only bituminous coal deposit on the road system, making transportation more economic.

UCM acquired the leases and permits to the Wishbone Hill projectin 1997 and has actively maintained them. In 2010, the company launched a feasibility study and determined that, of the14milliontonsofknownreserves,there are approximately 6 million tons of coal that are economically mineable. Whilethecompanycontinuestosecurethe renewal of the mining permit, UCM maintains an active monitoring program to enhance environmental baseline data. Because UCM alreadyprovides 100 percent of the in-state demandforcoalfromtheHealymines,all of the production from WishboneHillisdestinedfortheexportmarket.

UCM’s EQUIPMENTThe Bucyrus-Erie 1300W walking

dragline, named by local school chil-dren is affectionately called “Ace-in-the-Hole.”The dragline is the largestpiece of equipment at the mine and the largest land mobile machine in Alaska. Its sole purpose is to remove overburden, the sandstone and clay or “dirt” that lies on top of the coal seams. Purchasedduring1977,itwasbroughtto Alaska on 26 railroad cars and 40

UCM’s heavy equipment fl eet includes 11 haul trucks with 100- to 150-ton capacity.

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trucks.OnceonsiteinHealyittook11months to reassemble and construct. The dragline consists of a 225-foot mast and a 325-foot boom. The total weight of the draglineismorethan4millionpoundsor 2,100 tons of iron. The buckets used onthedraglinewillhold33to42cubicyards of material and can scoop mate-rial 150 feet below the base and deposit it 150 feet above the base. With a 90degree swing of the boom, it takes about one minute to complete one cycle. The dragline crew consists of two operators. One operator sits at the control station while the other makes routine mainte-nance checks inside the machine. The two operators rotate positions every hour to break the monotony and main-tain their sharpest concentration.

The dragline is all electric and is powered through a large cable that connects to the local utility power system of Golden Valley Electric Association.Whenthedraglinewasfirstconnected,the utility power plants could not accommodate the large power swings ofthedragline(6-megawattdrawwhendigging and 2-megawatt regeneration when the bucket was extending). Theelectrical turbine generators couldn’t keep up with the rapid and large power swings every 60 seconds, causing lights to flicker and other problems. Thus, UCM had to find a way to dampen the power swings. A 40-ton flywheel system wasdeveloped and installed to run electri-cally parallel to the dragline. This system, calleda“PeakShaver,”wasinstalledinaseparate building and connected to the same electrical power line as the dragline. During normal operations, the dragline executes three motions: drag, hoist and swingeverycycle(60seconds).

UCM utilizes a fleet of heavy equip-ment, affectionately called “YellowIron,” which includes eight 150-ton haul trucks, three 100-ton trucks, seven dozers, 10 loaders, two graders, two water trucks, three drill rigs and various additional support equipment.

RESTORATIONEnvironmental stewardship of the

land is important business to the Usibelli family. The formal reclamation program began at the mine in 1970, six years before required by Federal Law. The reclama-tion program involves contouring and re-establishing vegetation on the land. The engineering plan begins well before


http://www.usibelli.com


a mining operation starts production. Revegetation is accomplished by aerial seeding with a mixture of grasses and plants indigenous to northern regions. This mixture creates a heavy vegetative mass which conditions the land by adding natural nutrients into the soil. Conse-quently, soil is held in place, preventing erosion until tougher and slower-growing native Alaska plants begin to thrive in the area. Because Alaska’s indigenousseeds are slower to germinate and more susceptible to wind, rain run-off and birds, it is necessary to prepare the land. Woodyseedlingsofwillow,spruce,alderand dwarf birch are planted after the initial grass seeds are broadcast. UCM plants between 30,000 and 50,000 trees each year, all grown from seeds collected from the mine property.

ABUNDANCEUCM has identifi ed 700 million tons

of surface mineable coal reserves on leased property in the Healy area (470million-proven; 255 million-indicated).That is more than 350 years of coal at current production rates. UCM has current permits to mine more than 100 million tons of coal — more than 50years of production at current rates.

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AGC of America,Design-Build Institute of Americaaward NCI top honorsBY RACHAEL FISHER

AGC of America, AGC of America,

Neeser Construction Inc. continues to reap the benefi ts of a job well done having recently won national

awards from both AGC of America and the Design-Build Institute of America for itswork on Goose Creek Correctional Center.

The two national awards add to the 2012 ExcellenceinConstructionAwardpresentedto NCI by AGC of Alaska last November for the GCCC project.

Kudos from ContractorsThe Build America Awards, presented

attheAlliantBuildAmericaAwardsDinnerinconjunctionwithAGCofAmerica’s94thAnnual Convention, showcase the best of construction, recognizing the outstanding contractors building America’s buildings, bridges, roadways and municipal and utility construction.

These prestigious and highly coveted awards are given to projects selected by a panel of a contractor’s toughest critics —other contractors.

BuildAmericaAwardrecipientsexemplifythe highest quality of construction leadership. Eachprojectreflectsthecrucialcombinationof contractor excellence, talented project management, quality safety programs and increased environmental awareness.

Of the outstanding projects nominated for theaward, the judgesselected17BuildAmerica Award winners and six Merit Award winners. NCI was commended for its achievement of excellence in the Design-Buildcategory.

“Design-build projects are a unique skill set, and NCI has the most experience of any contractor inthestate,”NCISeniorProjectManager George Tuckness said.

Honored by DBIA ProfessionalsThe DBIA awards competition recog-

nizes the achievements of owners and design-build teams in 10 categories across the spectrum of horizontal and vertical construction. To be considered for a prize a

project must have been completed on time and on budget.

Five projects were submitted to the contest in the correctional category. Three projects were awarded after rigorous judging by a panelofownersandDBIAprofessionals,butonlyNCI claimedanationalaward,DBIA’shighest honor. Riverbend Correctional Facility in Milledgeville, Ga., received an honoraward,andtheJointRegionalCorrec-tional Facility Southwest, at MCAS Miramar in San Diego, received a merit award.

The jury examined each submission for demonstrated use of DBIA best practices,which include fl exibility in blending experi-ence and work procedures and shared moti-vations and incentives for a high level of performance. Additional best practices focus on the creation of a truly integrated team via colocation of team members during design and construction and procedures that ensure open and honest communication and an environment characterized by trust.

NCI’s work proved exemplary. Goose Creek Correctional Center, the largest publicly funded vertical construction project in Alaska history, was designed and constructed in less than three years. It was also brought in several months ahead of schedule and under budget with zero claims on the project.

The $223 million project kicked off in May 2009. Crews — a cumulative totalof more than 1,200 construction workers throughout the duration of the project —fi nished constructing the state-of-the-art medium-security prison’s fi ve buildings, whichtotal435,583feet,byAugust2011.

“Tens of thousands of hours were put forth by the design-build team under the watchful eye of the Department of Correc-tions, who set up offi ces on site to oversee the project,” Tuckness said. “It was the most mutually benefi cial process in Alaska history; a successful attempt was made to meet the concerns of each of the stakeholders.”

Goose Creek Correctional CenterOwner: Matanuska-Susitna Borough

Operator: State of Alaska Department of Corrections

Design-Builder: Neeser Construction Inc. Architect: KPB Inc.

E ngineers: D OWL HKM Engineering &

Development Services Coffman Engineers Inc. Buford Goff & Associates Inc.Hargis Engineers

Specialty Consultants:Hellmuth, Obata + Kassabaum Inc.Durrant JusticeWilliam Caruso & AssociatesContract Hardware Inc.The Fire ConsultantsEMC Engineering LLC

Specialty Contractors: The Superior Group Inc. ALCAN Electrical & Engineering Inc. Engineered Control SystemsCML SpecialtiesAcme Fence Co. Universal Roofi ng of Alaska Inc. Refrigeration & Food Equipment Inc.

Other Key Professionals:RISE AlaskaAlaska Planning and ArchitectureSteve Fishback ArchitectTryck Nyman Hayes Inc.Support Services of AlaskaCraig UngerEd WundramBruce Mattson, P.E., ACSI Inc.Estimations Inc.

Rachael Fisher is the managing editor of The Alaska Contractor.

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32 The Alaska conTrAcTor Spring 201332 The Alaska conTrAcTor Spring 2013

The future of the mining industry workforce is bright if MikeBell’sstudentpopulationisanyindication.

A former Greens Creek Mine worker and retired dieseltechnologyprofessor,Bellwastappedtwoyearsagoby the University of Alaska Southeast as director of the Center for Mine Training. A $300,000 gift from Greens Creek operatorHeclaMiningallowedtheuniversitytoofferschol-arships to high-school students.

“I said, ‘That’s a good idea, but since so many mines are starting around Alaska and they need engineers and geolo-gists, how about if I do a course that explains mining to highschoolstudents,aimthematcareerpathways?’”Bellrecalled. “They liked that.”

The university began offering Introduction to Mining Occupations and Operations in spring 2012 to guide high

Alaska’s mining future

school students toward future mining jobs, such as engineer, geologist, mechanic, cook, surveyor or truck driver.

Twenty students signed up. Nineteen fi nished. Fifteen are pursuing mining-related jobs or education.

This year, more than 75 students from 23 schools across the state — Noatak to Prince of Wales Island — attendclass remotely through a partnership between UAS and the AlaskaDistanceLearningNetwork.SeveralminesincludingRed Dog and Donlin Gold have offered summer internships for students with solid attendance.

“I’lltrytohelpthemgetjobs,”Bellsaid.“Nextyearifthisas successful as I expect, I’ll expect in excess of 200 students.”

The UAS program is just one of many efforts under way across Alaska to boost Alaska’s mining infrastructure and workforce.

State, schools invest in hard rock prospectsBY ZAZ HOLLANDER

An Atlas Copco factory representative sheds some light on the basic operation of a new drill for Delta Mine Training Center staff and students.

An Atlas Copco factory representative An Atlas Copco factory representative An Atlas Copco factory representative sheds some light on the basic operation sheds some light on the basic operation of a new drill for Delta Mine Training of a new drill for Delta Mine Training Center staff and students. Center staff and students.

An Atlas Copco factory representative sheds some light on the basic operation of a new drill for Delta Mine Training Center staff and students.


Crossing bordersAlaska and Yukon officials have

agreed to cooperate on training for mining-related jobs through the Alaska-Yukon Intergovernmental RelationsAccord signed last year.

The state could add nearly 500 jobs in mining and support activities by 2020, according to an October 2012 report in “Alaska Economic Trends” magazineproduced by the state’s labor depart-ment.Hundredsmorejobscouldmate-rialize as workers retire or change occu-pations, the department said, while also cautioning that a drop in mineral prices could hinder growth.

The report cites new work at existing projects: increased production at Usibelli CoalMineinHealy,newdiscoveriesatPogo Mine, a new permit at Red DogMine and additional exploration in Greens Creek Mine in Southeast Alaska. International Tower Hills’ LivengoodGoldprojectorBarrickandNovaGold’sDonlin Gold project “may produce additional employment, assuming their permitting and construction can be completed,” the economists said.

Roads to resourcesGov.SeanParnell’sRoadtoResources

project seeks to build a new road from Manley Hot Springs in the interest ofunlocking the state’s natural resource deposits as well as moving fuel, people and supplies.

Parnellincluded$28.5millionforpre-construction and construction funding in his fi scal year 2013 budget. Roads to Resources includes proposed projects to Tanana, Umiat and the Ambler Mining District, as well as a more recent proposal tobuildaroadtothewestSusitnaValley.

A Delta Mine Training Center instructor gives students pointers how to load and haul materials — in this case, snow — before the group goes underground to haul rock.

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“The key to developing the workforce is to have workforthemtodo.Buildingroads aimed at making mines possible certainly will have thateffect,”saidMurrayWalsh,the state’s Road to Resources manager for the Department of Transportation.

In 2010, the DOT completed the Western Alaska AccessPlanning Study, an evalua-tion of alternative corridors connecting existing roads around Fairbanks to Nome and the Seward Peninsula.The study recommended a 550-mile route along the Yukon River Corridor fromManley Hot Springs to theNome-CouncilHighway.

Tanana under wayState offi cials say they hope

to start building the fi rst stage of the project this summer with the road from Manley Hot Springs toTanana. Localcrews have already cleared the route. The Tanana Road project will improve about 16 miles of existing road and unimproved trails and construct about 19 miles of new road to provide an all-season link to thesouthbankoftheYukonRivernearTanana, state offi cials say.

Numerous small mines operating in the area could benefi t from improved existing road sections, offi cials said. It’s hard to predict what future prospects the area holds.

There’s a great deal of variability in the geology aroundTanana, said BobSwenson, director of the state Divi-sion Geologic & Geophysical Surveys. Recent seismic mapping in the area revealed potential for rare earth elements as well as gold, tin and other types of deposits.

Access via the new road may increase the mineral viability but also provide a way to get energy to mine sites, Swenson said.

Access is key, agreed state Sen. Click Bishop, a former state laborcommissioner whose family has hold-ings in the Rampart Mining District in the Manley area.

“Youcantakeamarginalhardrockmine. If you’ve got access to it, it can

take a project over the top, bring it to fruitionand create jobs,”Bishop said.“Case in point: Fort Knox. I always say it never would have happened if you couldn’t have driven from pavement to hard rock.”

Training future workersAs the state tries to improve access,

several training programs are aimed at educating new workers statewide. The UAScourse taughtbyBell that’spartof the Center for Mine Training is just one example.

The University of Alaska Fairbanks began in 1917 as a school of mining and agriculture. Today, UAF’s College of Engineering and Mines offersundergraduate and graduate degrees in mining engineering and geological engineering, as well as a master’s in mineral preparation engineering.

“Thereareover400geologyprogramsaround the country ... but there are only 14miningengineeringprograms,”saidRajive Ganguli, a professor and chair of the university’s Department of Mining &GeologicalEngineering.

Ganguli said there’s a shortage of mining engineers, especially those with

ventilation and mineral processing expertise. “UAF is addressing that choke point,” he said.

The Delta Mine Training Center, located in a solid layer of granite about30milesoutsideDeltaJunction,was created in the late 1990s to train employeesofthenewPogoMine.

A nonprofi t, the DMTC offers an equipment fl eet to train in hard rock mining methods, said executive director Whit Hicks. Classrooms andoffices sit 400 feet underground.Thecenter performs safety training and also offers workshops for prospectors. When a customer needs its work-force trained, the center customizes a programforthem,Hickssaid.

The center hasn’t held a class in awhile, given the current lull in area mining activity.

ButlikeothersinvolvedinAlaska’sminingprospects,Hicksishopingthatwill change.

“Whenyou’rehere, it’sawesome,”he said. “It’s very real.”

Zaz Hollander is writer who lives in Alaska.

A Delta Mine Training Center instructor operates an Atlas Copco 281 drill jumbo at the center, which is located about 30 miles outside Delta Junction. Students observing the drill operator learn about the equipment, the working environment and how to assist the driller. Photo: Courtesy of deltA MIne trAInIng Center


FINANCIAL SERVICES & CONTRACTORS

BOB KEDZIOR

Vice President1st Source Bank

Managing acquisitions and disposals of units in a construction equipment fl eet

A contractor’s primary asset base is their construction equip-ment fleet. Part of managing

the construction equipment fl eet is to regularly acquire and dispose of units to keep the company’s utilization and productivity high while matching the requirements for the upcoming work-load.Whetheracontractorpurchasesequipment through a retail merchant or a private party/end-user, the trans-fer of title in the transaction is covered under the provisions of the Uniform Commercial Code (UCC). Howeverthe rules for passing clear title to the equipment vary quite differently be-tween the two sellers.

In general, when purchasing equipment from a merchant who is an established seller for that type of product, the buyer receives automatic clear title with payment and delivery of the item.Whentheseller isnot inthe regular day-to-day business of retailing equipment (nonmerchant),transfer of title to the equipment is subject to any active liens against the equipment. In either sales example, the seller should always take the steps to immediately pay off any liens against the equipment sold.

When dealing with a financingtransaction that involves a sale from a nonmerchant for nontitled equip-ment, lenders will perform a discovery process called a “trace of ownership” to eliminate any active liens against the unit. Here are the steps taken toperform the trace of ownership: 1)Request a copy of the seller’s

purchase invoice or bill of sale from their acquisition of the equipment. Your seller’s acquisi-tion price for the equipment is not

essential to this process and can be blacked-out in the paperwork if they choose. Key items to review on this invoice are:

•Buyer’sname:needstomatchtheparty who is now selling you the equipment. If it does not match, there should be a bill of sale which transferred the unit from one party to the other, otherwise they cannot sell something they do not own. The original buyer is the party on whom a UCC lien search will need tobereviewed(describedlater).

•Equipment description and serialnumber: needs to match what you are buying.

•Seller of the equipment: Is thisa merchant or a nonmerchant of the type of equipment being purchased? If a merchant, you do not need to search any further. If a

nonmerchant, these steps need to be repeated until you reach a seller who is considered a merchant of this type of equipment.

2)AliensearchforcopiesofallactiveUCC’s on fi le needs to be ordered against any nonmerchant seller discovered in the trace of owner-ship for the equipment.

•The search against the nonmer-chant seller needs to be performed in the state where the nonmerchant is incorporated or registered to do business if a noncorporate entity.

•IdentifyanyUCCfilingsthatshowa lien that specifi cally describe the purchased equipment or contain blanket language against: all assets, equipment or other general descriptions that may target equip-ment. The secured party from these


filings need to terminate their lien interest against the equipment being purchased to clear title. If a secured party requires payment to release their lien against the equipment, steps should be taken to include these payoffs as part of the funding to purchase the equipment.

c)If any tax liensappear in theUCCsearch, the taxing body will have what amounts to a blanket lien against the selling party. The taxing body will need to be contacted to provide the steps needed for releasing their lien position against the equipment being purchased.The trace-of-ownership process is

cumbersome and could lead to some complications when acquiring equip-ment from a nonmerchant. These steps are taken by lenders to establish their first lien position and eliminate any unexpected claims against the equip-ment from liens that were not extin-guished at the point of sale. When acontractor purchases equipment from a nonmerchant, they should review the trace of ownership process to secure their ownership position in the newly acquired units.

Keep updated on what liens are still active against your company by periodi-cally reviewing a full search of the UCC filings on record with the Secretary of State or state agency that handles UCC records in the state that you are incor-porated or registered to do business. Some states allow online access to the database, or your main lender should have a UCC search in their files that they can share. All copies and attachments are important because they state the terms of the lien against your company. Request paid off lenders to terminate their UCC filings.

Signatures of the borrower are no longer required on the UCC financing statements filed with the State. As part of any new financing transaction, review the language in the UCC filing to make sure it matches the collateral contained in the loan. Some lenders file UCC statements with generic language or an all-encompassing master filing instead of listing the specific units being financed from the security agreement. Be in agreement with your lender onwhat language will be used in the public record prior to the UCC filing.

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PILLARS OF PARTNERSHIP

In 1970, the late Bob Baker, a well-known bush pilot,prospectorandfounderofBakerAviationinKotzebue,wasflyingover theDeLongMountains andnoticeda

rustyalternationzone.BakeralertedIrvingTailleauroftheUnitedStatesGeologicalSurvey(USGS)whowasmappingthegeologyoftheDeLongMountainquadrangle,whichin-cludedtheareaBakerspottedfromthesky.Tailleaurvisitedthe site and noted abundant barite, black chert, siliceous sinterandironoxidestaining.Hisfewrocksamplesgradedmorethan2percent leadand1percentzinc.Hisfindingswere later documented in a 1970 USGS open fi le report. TailleaurnamedtheareaRedDogCreekafterBaker’spros-pectingcompany—TheRedDogMiningCompany,whichBakernamedafterhisdog,O’Malley.

From that fl ight to today, the Red Dog Mine, one of the world’s largest zinc mines, has become a model of respon-sible resource development, founded on the principles of consensus, cooperation and mutual respect between a mining company and indigenous people.

The mine’s foundation is the innovative 1982 operating agreement between NANA, an Alaska Native Corpora-tion owned by the Inupiat people of Northwest Alaska, and Teck Alaska, Incorporated (Teck), a U.S. subsidiary ofTeckResourcesLimited,adiversifiedminingandmetalscompanybasedinVancouver,BritishColumbia.Buttruly,themineisbuiltonfourPillarsofPartnership—CommunityEngage-ment,ProtectionofSubsistence,EconomicOpportunityandRespectforCulture—onwhichNANAandTeckhavebuiltthe future of a mine, a region and a state.

COMMUNITY ENGAGEMENTCooperation is a key Inupiat value and was essential to

ensuring that Red Dog Mine became a supplier of zinc to the world and achieve its vision of becoming a cornerstone of Northwest Alaska’s economy.

Communities and individuals were interested in the potential of mineral development in the Red Dog Creek area priortotheAlaskaNativeClaimsSettlementAct(ANCSA)of1971.In1974,NANAfileda14(h)landselectionappli-

Red Dog Mine in Northwest Alaska, one of the world’s largest zinc mines, is a model of responsible resources development and an economic engine for the area and the State of Alaska.photo: CourtesY of red dog Mine

NANA Regional Corporation and Teck Alaska


cation covering the area. At the time, NANA shareholders were not interested in mining, but NANA fi led the claims to preserve a right to explore and possibly develop the area should shareholders change their position. At that time, the corporation took no action to develop the lands.

NANA and Cominco (now Teck)then began a decade-long process of consultation with communities to make sure that mining was right for them and right for the future of the NANA region. Elders, tribal leaders and indi-viduals turned up at village meetings to listen and to speak. As a result of those years of consultation and conversation, at the 1980 NANA Annual Shareholder Meeting NANA shareholders decided to move forward with mining, and the plan to develop Red Dog Mine began. LeadershipatNANAandCominco satdown and hammered out terms that would allow for economic development of the region and personal opportunities for shareholders but, above all, would protect subsistence resources.

This history of engagement continues today through Teck’s annual visits to regional villages, support of local initia-tives like the student Youth Leadersprogram and Teck’s ongoing partnership with NANA.

PROTECTION OF SUBSISTENCE NANA shareholders have stated

unequivocally that subsistence is the highest and best use of NANA lands and that any natural resource devel-opment is to be in alignment with that perspective. To ensure protection of subsistence, the 1982 agreement created an independent Subsistence Committee of residents from Noatak and Kivalina that meets regularly with NANA and Teck representatives to review all subsistence-related issues. The committee was established prior to the start of Red Dog Mine operations in 1989 and plays an important role in guiding subsistence protection activities at the mine and associated facilities.

One of the committee’s fi rst tasks was to select a route for the 52-mile road from the mine site to the port that considered caribou migration, fi sh spawning areas and waterfowl nesting sites.

Today, the committee also directs a regional caribou-monitoring program. During migration, the committee is

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The 2012 Robert O. Anderson Sustainable Arctic Award was presented to Red Dog Mine, honoring the innovative operating agreement between NANA, a Native corporation owned by the Inupiat people of Northwest Alaska, and Teck Alaska, a U.S. subsidiary of Teck Resources Limited.

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Last year nearly 600 NANA shareholders were employed at Red Dog Mine making up more than 50 percent of the workforce.

empowered to request closure of the haul road to reduce potential risks to the herd. Shipping schedules are care-fully planned to minimize possible effects on traditional whale and seal

hunts. Discussions are held annually between mine representatives and whaling crews, and schedules are determined that meet the needs of all parties.

Red Dog Mine and NANA staff continue to work with local, state and federal parties to make sure the subsis-tence lifestyle in Northwest Alaska remains protected.

ECONOMIC OPPORTUNITYSince Red Dog operations began

in 1989, mining has become, and remains, a way of life for many families in Northwest Alaska. For several weeks every month, Red Dog is home to more than 300 NANA shareholders. The mine’s rotational schedule allows many shareholders to hold well-paying, family-supporting jobs and maintain subsistence prac-tices. In 2012, more than 573 NANA shareholders were employed at Red Dog Mine. NANA shareholders make up approximately 56 percent of the workforce. Whether they work forTeck or for one of the NANA compa-nies providing essential services at the mine, Red Dog employees are part of the Red Dog family. Under the1982agreement,anEmploymentand Training Committee was created to develop initiatives to maximize


the number of NANA shareholders working at the operation. Today, Red Dog Mine has an ambitious on-the-job training program and extensive student development efforts. In 2011 alone, more than 8,000 hours of on-the-job training was provided to NANA shareholders.

Regionally, the positive impacts of Teck and the Red Dog Mine can be felt in the lives of every resident. Red Dog is the Northwest Arctic Borough’s (NAB) sole private financial contributor in the form of Payment in Lieu of Taxes (PILT) to the borough. This money supports local government which employs many people in the NANA region and allows the borough to provide needed monies for vital projects like schools, community projects and economic development projects.

Royalties from Red Dog Mine also have a direct positive economic impact on the lives of NANA shareholders. The revenue allows NANA to create economic opportunities for share-holders through the development of NANA businesses, job creation, educa-tion opportunities and dividend distri-butions. This income to NANA also allows the corporation to contribute to essential social and cultural programs that preserve the Inupiat culture, language and way of life.

Estimates credit Red Dog Mine with creating about 2,800 jobs state-wide and paying more than $166 million in total compensation. Alaska Native peoples throughout the state also benefit from the mine through the Alaska Native Claims Settlement Act’s (ANCSA) 7(i) sharing provi-sion. In 2012, NANA distributed $76.4 million dollars through this agree-ment, helping to uplift Alaska Native people and communities.

Estimates credit Red Dog Mine with creating about 2,800 jobs statewide and paying more than $166 million in total compensation.

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RESPECT FOR CULTUREThe partnership between NANA

and Teck in the development and operation of the mine is consistent with the Inupiat Ilitqusiat or Inupiaq Values.TheIlitqusiatstatethat“everyInupiaq person is responsible to all other Inupiat for the survival of our cultural spirit and the values and tradi-tions through which it survives.” The Ilitqusiat includes love of children, cooperation, hard work, respect for others and sharing.

Subsistence hunting and fishing are critical to the Inupiat way of life. Critical food sources such as caribou and seal are hunted and shared with the community. Inupiaq hunting, fishing and gathering skills are impor-tant to maintain the Inupiaq culture and to the sustainability of the region’s communities. The mine’s work schedule facilitates workers’ ability to participate these activities as well as pass on these traditions.

The Subsistence Committee plays an important role in guiding subsis-tence protection activities at the mine, and NANA and Teck work hard to ensure that shareholders who come to work at the mine have support in tran-sitioning from village life to the mine lifestyle. NANA has on-site staff who work with and counsel employees as they make this transition. Opportuni-ties for youth through job-shadowing and rewarding academic excellence are also provided through Teck.

Continued engagement with communities through education about the mine and its operations, as well as employment opportuni-ties, are provided to all villages within the NANA region. This method is in line with the values of sharing, coop-eration and respect for all community members. Meetings are coordinated with local leadership in each commu-nity and are often conducted with both NANA and Teck staff present to ensure that the communities’ comments are heard and questions are answered.

NANA and Teck will continue to respect the Inupiat culture of the NANA region as they work together, ensuring Red Dog can remain a mechanism for hope and an economic engine for the economy of Northwest Alaska and the State of Alaska.


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CONTRACTORS & THE LAW

By ROBERT J. DICKSONRequiring a bond if a project is to be delayedA laska procedural law on when a preliminary injunc-

tion is appropriate follows widely accepted prin-ciples used in other courts. In Alaska, entitlement

toapreliminaryinjunction(i.e.,arestraintwhilethecourtsorts out what the actual facts are and what relief, if any, is actuallywarranted)isdividedintotwosituations.Thefirstsituation is where the plaintiff claims harm is irreparable; that is, if it occurs, nothing can put the plaintiff back in the same position; while the defendant, the party to be enjoined, can be “adequately protected,” i.e., by the posting of a bond by the plaintiff. The other situation is where the plaintiff claims harm is “not irreparable,” i.e., can be remedied by the payment of money or other activity; or where the defendant cannot be adequately protected by the posting of a bond by the plaintiff.

In the fi rst situation, where a plaintiff faces irreparable harm and the defendant can be adequately protected by the posting of a bond, the plaintiff “must [only] raise serious and substantial questions going to the merits of the case” before the court will enter an injunction. In the second situ-ation, where the harm can be repaired or the defendant cannot be adequately protected by the posting of a bond, the plaintiff “must show probable success on the merits” of its claim. The second situation is supposed to require a higher showing. The fi rst situation, as a practical matter, is consideredmetbyalmostanylawsuit.Butinthatsituation,supposedly, the defendant can be protected by a bond.

Courts have always been able to prohibit a person or entity from undertaking some activity that would be illegal or wrongfully harmful to someone or something else. The order is called an injunction. In addition, courts have been able to enter an order prohibiting a person or entity from doing something that potentially could be illegal or wrongful while the court sorts out whether the activity complained about would actually be illegal or wrongful. Such an order is called a preliminary injunction. It is intended to be in place while the court goes through its normal dispute resolu-tion and adjudication process, which can take a long time. An Alaska statute permits courts to enter an injunction restraining an act when it appears the plaintiff is entitled to the relief demanded, which may include restraining the defendant from doing some act that violates the rights of others or would render ineffectual any judgment the court mightenter.A.S.09.40.230.Alaskacourtshaveaproceduralrule covering injunctions which requires for every restraining

order or preliminary injunction that a bond be posted “in suchsumasthecourtdeemsproper.”Rule65(c).

Unfortunately when environmental groups challenge oil and gas production projects, the courts, despite the rule requiring them to do so, do not require the posting of a bond. Many cases get settled during the litigation process, and the issue of the court failing to require a bond is typi-cally not further litigated. In those few cases that are not settled, the failure to post a bond is still not pursued because the plaintiffs are almost always judgment proof or the court has ruled in favor of the plaintiff which means the defendant is not entitled to be compensated for any losses.

The almost universal success of environmental groups stopping or delaying oil, gas, mineral, energy and timber activitiesinthestatehasledsomeintheAlaskaLegislatureto try to bring some balance to the situation. In the 27th Legislature (2011-2012),HouseBill168was introduced inFebruary2011.AJudiciaryCommitteesubstitutewaspassedbytheHouse33to6onApril7,2011.ThebillwastransmittedtotheSenatethesamedaybutdiedintheSenateJudiciaryCommitteeattheconclusionofthe27thLegislature.

HB 168, if it had passed, would have amended theAlaska statute on injunctions by adding a requirement that when a party sought to restrain or delay a construc-tion, energy, timber, oil, gas or mineral project, the party would be required to “give security in an amount the court considers proper [to cover] damages that may be suffered [by delaying the project] including an amount for the payment of wages and benefi ts for employees and payment to contractors and subcontractors [that would have been employed in the project].”

With the death of HB 168 in the Senate JudiciaryCommitteeof the27thLegislature,anewbill,HB29,hasbeenfiledintheHouseofthe28thLegislature(2013-2014).HB 29 is identical to HB 168 except that where HB 168required the plaintiff to post a bond in the amount that the court determined would cover the lost wages and benefi ts, HB 29 gives the court complete discretion as to whetherto include such a factor in determining the amount of the bond. HB 29 first requires a party seeking an injunctionto “give security in an amount the court considers proper for costs that may be incurred and damages that may be suffered [by the project] that has been wrongfully enjoined.” But unlike HB 168, HB 29 then requires a court deter-mining the proper amount of the security to only “consider”


including an amount to cover the wages and benefits for employees and payment to contractors and subcontractors. HB168 required the court to include those potential losses in the amount of the bond,whereasHB29requiresthecourtto only consider including them.

On Jan. 16, 2013, HB 47 was alsointroduced which takes the approach of formerHB168.HB47asofthiswritinghad 12 sponsors.

The courts have already demon-strated that they will not follow their own procedural rule under Rule 65(c)which requires a bond be given for every preliminary injunction “in such sum as the court deems proper.” Unless required, it is unlikely that courts will actually impose bonds that include the potentiallossesdescribed.IfHB29wereenacted, the courts would no doubt follow the statute by “considering” those potential losses, but HB 29 does notrequire the court to impose a bond that includesthoseamounts.HB47stillgivesthe court discretion in determining the amount, but that amount must include the described losses.

This column provides information about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice — the application of law to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.

Robert J. Dickson is a partner of the Anchorage law firm Atkinson, Conway and Gagnon Inc.

The almost universal success of environmental groups stopping or delaying oil, gas, mineral, energy and timber activities in the state has led some in the Alaska Legislature to try to bring some balance to the situation.

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onference rooms and work tables, cabi-nets, fi les, chairs, lighting, art, even modu-lar walls, raised fl oors and a stone bust of Hermes,godofbusinessriches,cluster in

companionable mini-settings at AA-K BusinessEnvironmentsofAnchorage,wherethere’salwaysa comfortable place to sit and “the coffee pot is on,” saysownerandpresidentMarkLeaf.

AA-K, named after Mark’s children (Anthony,Angela and Kristjan), has been using visionarydesigns to solve workaday problems of Alaska health facilities, offi ces, schools, government and privateindustrysinceLeafcametothestatein1986“and found a world I wanted to live in. I started meeting people — and I started selling themfurniture.”

“Mark is somebody who absolutely does love furniture,” saidofficemanagerHelenBest,whosedog, Molly, fl uffy and friendly, patrols the 10-person staff daily to be sure everyone is safe, happy and wheretheyshouldbe.“Youcan’tgoanywherewithMark that he isn’t checking out the furniture.”

The fi rm partners with architects and designers to provide complete environments to commercial and governmental clients: design, sales, contracting, installation, renting, leasing, managing and imme-diate on-site repairs and maintenance. A high cabinet top glitters with a crystal sculpture garden of awards.

Lately they’ve been practicing for themselveswhattheypreach—responsivedesignandsuper-lativeproducts—attheirnewlocation,2601Arctic

CCFurnishing client satisfaction

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AA-K Business Environments designed, furnished and maintains the corporate offi ces of Alaska National Insurance in Anchorage, San Francisco and Seattle, from work cubicles to formal boardrooms.

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Blvd.,totransforma10,000-square-footshell into a working showroom. The firm represents Haworth as a supplierof top-line offi ce needs but embraces othervendorsaswell—andart.

“We all go to First Fridays (gallerywalks), seek out artists and encourageartists because the arts are an important part of our society and our work lives,” Leafsaid.

Much of AA-K’s success comes from its fi xation on clients’ needs. “Repeat business and referrals make up 90 percent of our work,” Leaf said.“If something won’t work, we work with the client to fi nd another solution because we want 100 percent excellence and 100 percent client satisfaction.”

“When a client comes in, we sitdown together to identify their partic-ular requirements, and we determine a budget,” he said.“Everybody has totalk about money at some point and balance the mundane necessities with the image items that say who a client is. Corporations are just like people. They have personalities.”

“Then we visit their current offi ce and see how it’s actually being used, if they’re pilers or fi lers, how much storage they have and how much they’ll need, now and in the future,” said designer Megan Collins.“We adapt our designs

These industrial warehouse storage units designed and installed by AA-K can be moved with a handle to allow access to any individual one, or compressed to a space-saving block.

These industrial warehouse storage units

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not only to their work needs but to their cultural needs. The Native corpo-rations, for instance, have a great deal of art that they’re proud of and want to display.”

The company incorporates change as it’s happening, from the move to the paperlessofficetotheshifttoLEED,theemphasis on recyclables, concerns with

ease of cleaning and with off-gassing, and from a building standpoint, raised fl oors with carbon fi lter air purifi ers, modular walls with “seismic shoes” for earthquake zones and Milliken custom injection-dyed modular carpet.

“Twenty years ago nobody had heard of a webinar,” Best said. NowAA-K designs furniture for them.

Another trend is the use of resi-dential pieces of furniture in offi ces “to make them homier, because people are spendingmoretimeattheoffice,”Leafsaid. “There are even offi ce recliners for power naps.”

The offi ce population has changed as well.“We have clients on the gowho need touch-down spots where they can drop in, work for a couple of hours and leave,” Collins said. A single work station thus has to adapt to many different sizes and shapes of engineers and sales reps. Flexibility is one answer.

One of the AA-K work tables, for instance, glides up and down with an electric motor silent as a Prius; elec-trical outlets on the table top eliminate crawling under to plug in. An adjustable monitor for medical transcribing fl oats out of the way when not in use, and a slim rectangular desk light elegant as a Giacometti sculpture twists up, down and around at a fi nger’s touch. Chairs can be fi tted like garments to their users. Special slouchy chairs and sofas are for people who sit on the backs of their necks.

AA-K Business Environments hasbeen an active member of Associated General Contractors of Alaska since 1997, “amazing people, always anxious tosupportmembers,”Leafsaid.“AGCkeeps an open door and connects members to other members, and the results of that will tell you that it’s one of the best such groups in the nation.”

The company works with State of Alaska offi ces and also is a federal GSA package offi ce, meaning GSA clients can submit one purchase order and AA-K will handle all aspects of their projects: designs, specifi cations, orders, delivery (“Barge, bush plane,steamship,boat,”Collinssaid), instal-lation and education to a turn-key fi nish.

Lead installer Chris Brewster’steam is “neat, nice, clean and factory-certifi ed and brings the right tools to the job on time” on the way to that turn-key finish, Leaf said. “We’reproud of them.”

PamMacksey,seniorvicepresidentof administration at Alaska National Insurance in Anchorage, has “worked with Mark and his crew for seven years, and the company has worked

Details matter when it comes to company image, and AA-K’s design for this business waiting area even included cup holders for each of its comfortable chairs.

Walls designed and installed at Anchorage Neighborhood Health Clinic by AA-K Business Environments have warm golden wood at the base for privacy topped by translucent, then clear panels for openness and light. These moveable walls can easily be reconfi gured to meet the clinic’s changing needs.

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withhimevenlonger.Hehascompletelyfurnished our offices in Anchorage, San Francisco and Seattle, from the office cubicles to the formal seating, from the carpeting to the maintenance.”

“We are a conservative company.He always keeps that in mind, givesus the highest quality and it all looks magnificent.”

Starting with a 1997 remodel, Tony Lazenby, facilities manager of theAnchorageNeighborhoodHealthClinic,has worked with AA-K on no fewer than a dozen projects, but the one that stands out for him started with an inferno.

“In 2003, a weekend fire broke out in leased space occupied by 25 to 30 of our administrative employees, and the space was a total loss. Our group included accounting, insurance billing, purchasing, marketing, the executive director and other directors, and we had to find temporary space, get it furnished and get people back to work as soon as we could.

“I asked Mark for help. He knewabout lease space near their building and put us in touch with the Realtor. WithintwoweeksAA-Khadusupandrunning in that temporary space with spare office fittings and work stations loanedfromtheirwarehouse.Weoper-ated out of there while AA-K redesigned our burned-out space. In six months we moved back into offices that were more efficient than before, and they demobi-lized that temporary site back to their warehouse.”

The Anchorage Neighborhood HealthClinicandAA-Kworkedtogetheron the clinic’s expanded relocation, which opened its doors in Midtown in September 2012.“AA-K Business Envi-ronments provided exceptional service and value throughout the needs assess-ment, design and installation phases of ourproject,”saidLenStewart,executivedirector.

AA-K brought years of experience tothatproject,Leafsaid:“We’reknowl-edgeable in innovative health care design and product application, and we know how health care works.

“AA-K is a small company but a small company with an exceptional amount of talent and expertise.”

Cheryl Chapman is an editor for AQP Publishing.

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Sometimes treasure is what you fi nd when you’re not even looking for it.

Ucore Rare Metals, a Nova Scotia-based company operating the BokanMountainProjectinSoutheastAlaska,is wrapping up what the company hopes will be the fi nal two years of preparation before embarking on a plan to mine rare earth metals at Dotson Ridge on the site. If all goes according to plan, Dotson Ridge will be in production in 2016.

BY RINDI WHITE

A Dotson Zone drilling operation overlooks Kendrick Bay in Aug. 2011.

Mining company poised to make history with Bokan Mountain’s Mining company poised to make history with Bokan Mining company poised to make history with Bokan Mining company poised to make history with Bokan Mining company poised to make history with Bokan Mining company poised to make history with Bokan

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The company’s plans are getting noticed on the worldwide stage. The U.S. Department of Defense in October contracted with Ucore to perform mineralogical and metallur-gical studies at the site to see if it could supply the Department’s demand for rare earth metals.

The company also announced last year a scientifi c breakthrough that could make it the fi rst company in the world to be able to separate rare earth metals from the surrounding

earth on-site, at the mine mouth. Dr. RichardHammen,aformerDirectorofNASA Jet Propulsion Labs, inventedthe solid phase extraction, or SPE,method Ucore plans to use.

“WearethefirstpartyonU.S.soiltoliberate high-grade dysprosium based onU.S.feedstock,”saidJimMcKenzie,presidentandCEOofUcore.

In an October press release, McKenzie expanded on the signifi -cance of the discovery and the U.S. government’s support.

Lights from night-time drilling operations on Dotson Ridge refl ect across Kendrick Bay in 2011.

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“The United States does not yet have the capability to produce three of the heavy rare earths that occur naturally and in abundance in Bokan Mountain,” he stated.“TheDepartmentofDefense’s investment intheBokandepositandUcore’sproprietarySPEtechnologyrepresentsasignifi-cant step toward recapturing the rare earths technological lead that the U.S. surrendered to China decades ago.”

Rare earth metals are a group of 17 elements that are actually commonly found in the ground but are generally dispersed through the soil and are rarely found in minable concentrations. They are used in everything from energy-effi cient light bulbs and lasers to camera lenses, computer

memory chips and magnets. They are commonly used in military applications such as unmanned drones, stealth helicopters and precision-guided weapons. They are also critical to technology companies, the auto industry and the aerospace industry, said Ucore business development vice president Mark MacDonald.

China is currently the world’s primary supplier of rare earth metals. Of the 17 elements, yttrium, terbium and dysprosiumareamong themost critical andvaluable.Butincreasing demand and recent decisions by China to shut down production at some of its largest rare earth mines and reduce the amount of rare earth metals exported have made prices climb and buyers nervous.

“Not only will production of rare earths be good for Alaska, they just happen to be vital to the future of the United States, especially in competitive fi elds like clean tech, transportation, aerospace and supercomputing,” MacDonald said.

An unexpected fi ndBokanMountainwasminedasauraniumfacilityasearly

asthe1950s,startingastheColdWar-eraRossAdamsmine,which McKenzie said produced 1.5 million pounds of high-grade U3O8 (uranium oxide). Uranium production at thesite stopped in 1973. Ucore bought the rights to the mine in 2006, initially with plans to explore for uranium.

“Wewantedtotracetheuraniumtothesoutheastandstartdrilling,”McKenziesaid.“Wekepttrippingacrossrareearths, which at the time were readily available from China. All of that changed in 2010, when China began to withdraw these critical metals from international markets. At that point, we decided to pursue the rare earths and table the uranium exploration indefi nitely.”

McKenzie and MacDonald clarifi ed that the uranium deposit is at Bokan Mountain, in a different geologicalformation than the rare earth metal deposits at Dotson Ridge, which is located to the southeast.

Since China’s strategic withdrawal of the rare earth metal supplies, especially metals that are indispensable to U.S. auto manufacturers, green technologies and the military,


the market was set afire and Ucore was “in a lucky position,” McKenzie said.

One large factor in Ucore’s favor is that Bokan is theonly rare earth deposit in the world situated on immediate deep water; a feature that cuts their required capital esti-mate down considerably. Red Dog Mine, McKenzie said as a comparison, incurred $225 million just for road and shipping access.That’smorethanBokan’sentirecapitalestimate,sodeep-water access is a phenomenal cost advantage, he said.

An elegant solutionAnother factor in their favor: Ucore’s ability to process

the metals at the mine in an environmentally friendly and cost-efficient method.

McKenzie said most rare earth mines rely on sulphuric acid pools to leach the metals out of the host rock. It’s a big, industrial process, he said, and can be harmful to the surrounding environment. But the SPE technology thatHammen developed uses nitric acid, which allows theseparation to be done in a much smaller and more efficient fashion and between 75 and 80 percent of the reagent can be filtered and reused, he said.

“The solvent exchange plant is not going to be much larger than a standard living room,” he said.

Ucore also plans to be the first rare earth mine and perhaps the first mine in the world to not have a perma-

(Bottom left) Kendrick Bay glitters below Bokan Mountain. (Above) One of the most attractive features of Bokan Mountain is its location on Kendrick Bay, which will allow the company to ship its product with less overhead than other mines face.(Upper right) Diamond drill cores from the Dotson Ridge program’s summer 2011 work. (Center right) Geologists inspect drill cores outside Ucore’s core sack at Bokan Mountain in 2011. (Bottom right) A Bokan sign welcomes visitors to the Dotson Zone area, which is served by an existing set of roads.Photos: © 2013 uCore rAre MetAls InC. All rIghts reserved.


nent tailings management facility at the surface.Workingonan ideafromchiefoperating officer and Alaska mining legend Ken Collison, the company plans to use a dual-energy X-ray transmission to identify waste rock immediately and send it off to a paste backfill plant.

That’s possible because the metals show up in striated deposits, McKenzie said. A load, say 1,500 tons, is ground into golf ball-sized pellets, then dropped intotheXRayTechnology(XRT)sortingmachine. One pellet might have no metal content whatsoever and the next might have 2 or 3 percent rare earth metals, McKenzie said. The waste rock is disposed of, and the metal-laden pellets go through a magnetic separa-tion process that further breaks it down, leaving about one-quarter of the orig-inalloadtogothroughtheSolidPhaseExtractionprocess.

“Our method of mining is almost more artisanal than industrial. We’resurgically removing the mineralization,” McKenzie said.

Supporters stepping upAmid the turmoil of declining rare

earth supplies out of China, Ucore Rare Metals is working through the final stages of permitting and preparation on its mine near Ketchikan.

Along with the signed agreement with the Department of Defense, Ucore has support from both national and local political representatives. Alaska Gov. Sean Parnell supports the company’s work and has included $2.7 million in his 2013 state budget request, part of a three-year, $8.1 million proposal, for studying rare earth development. The governor’s budget request also includes $3.3 million directed toward stream-lining resource development permitting processes.

U.S. Sens. Mark Begich and LisaMurkowski have added their support as well, by urging Department of Defense Secretary Robert Gates to address a pending shortage of rare earth metals and identify sources for the critical elements.

Sen. Begich also wrote a letterin July 2011 to U.S. Forest ServiceChief Tom Tidwell, asking his office to streamline permitting to allow Bokanaccess through the Tongass National Forest roadless area. Bokan’s requestfor exploration activity in the Tongass was approved in August 2011, and the

http://www.pebblepartnership.com

http://davisblock.com


company awaits approval of a permit to allow access straight through to produc-tion. That decision has been delayed following a 2012 federal court decision that required more public process for mines requesting permits. In April 2012, BegichaskedtheForestServicetokeepthe mining project on track to near term production, targeted for 2016.

“Suddenly adding as much as 140 days to a permitting process willadversely affect a number of activities, particularlyminingexploration,”Begichsaid. “Logistics in Southeast Alaskaare complicated. These firms need to contract and deploy helicopters, drilling rigs, personnel and other material to remote parts of our state.”

Meanwhile, Ucore is wrapping up other aspects of its final phase of explo-ration. This year and next, the company will be collecting baseline environmental measurements and conducting a detailed engineering study outlining how the mine will be built. McKenzie said he expects most of the contract construc-tionworktobedonein2014and2015,with about 200 people on the site.

Hesaidthecompanyhasestimated170 direct jobs, with numerous spin-off jobs created, during the life of the mine. McKenzie said the mine life is currently estimated at 11 years, but mining can prospectively continue well beyond that as the resource is expanded via addi-tional drilling

“Wedon’tthinkthat’stheoverallminelife today. Since the Dotson zone deposit is open at depth and on strike, there is potential to significantly extend the esti-mated mine life.We’ve only drilled thecurrent resource to approximately 200 meters in depth,” McKenzie said.

The deposit is hydrothermal, he said, meaning the minerals and surrounding earth originated at great depths and molten fluid pushed them up to the surface. Additional test holes deeper than 300 meters have already shown other potential mineralized spots to mine.

“With modern mining, you couldmine easily to a kilometer at depth. That could mean five times the resource, five timestheminelife.We’relookingforthisthing to prospectively be a half-century or more in mine life,” he said.

Rindi White is writer who lives in Alaska.



T heOccupationalSafetyandHealthAdministration’s(OSHA) Hazard Communication Standard (HCS)has recently been promulgated, bringing the United

StatesintoalignmentwiththeGloballyHarmonizedSystemofClassificationandLabelingofChemicals(GHS),withtheintent of further improving safety and health protections for America’s workers.

Five years in the making, this is the fi rst substantial change to the original Hazard Communication Standard.TheHCSin1983gavetheworkersthe“righttoknow,”butthenewGHSgivesworkersthe“righttounderstand.”Thisnewstandardwillaffect43millionworkersinmorethan5million workplaces across the United States.

Many of the new provisions of the standard apply only to chemical manufacturers, but employers need to be aware of several provisions that will require action by Dec. 1, 2013.

Chemical manufacturers and importers will still need to evaluate the chemicals they produce or import and provide

hazard information to employers and workers by putting labels on containers and preparing safety data sheets. The big change in the newly modifi ed standard, however, calls forastandardized(harmonized)setofcriteriaforclassifyingchemicals according to their health and physical hazards and specifi es hazard communication elements for labeling and safety data sheets.

This means that employers and workers will now have a standardized safety data sheet, rather than the myriad formats that existed under the previous regulations. This should make it much easier for workers (especially lowliteracyworkers)tounderstandthehazards,facilitatesafetytraining and result in safer handling and use of chemicals. Note the proposed change from “Material Safety Data Sheet” to be replaced by “Safety Data Sheet,” resulting in the familiar acronym “MSDS” to be replaced by “SDS.”

AdditionalbenefitscitedbyOSHAincludeaprojectcostsavingstoAmericanbusinessesofmorethan$475millionin

productivity improvements, fewer safety data sheet and label updates and simpler new hazard commu-nication training and reducing trade barriers by harmonizing with systems around the world.

Manufacturers will now provide Safety Data Sheets (SDS) in the new format, consisting of 16specifi c sections, which will offer consistency:

Se ction 1. Identifi cation Section2.Hazard(s)identificationSe ction 3. Composition/information on

ingredients Section4.First-aidmeasuresSection 5. Fire-fi ghting measures Se ction 6. Accidental release measures Section7.HandlingandstorageSection8.Exposurecontrols/personalprotectionSection9.PhysicalandchemicalpropertiesSe ction 10. Stability and reactivity Se ction 11. Toxicological information Section12.EcologicalinformationSe ction 13. Disposal considerations Section14.TransportinformationSe ction 15. Regulatory information Se ction 16. Other information, including date of

preparation or last revision

Understanding the new Hazard Communication Standard

AK Safety

PLUS

SAFETY REPORT

By CHRIS ROSS, CSP, CPLPPresident, The Engagement Effect


AnothernewelementoftheHCScallsfortheadoptionofstandardizedpictogramsforlabelingasillustratedbythegraphic below:

Effective Completion Date Requirement(s) Who

Dec. 1, 2013 Train employees on the new label elements and SDS format.

Employers

June 1, 2015Comply with all modified provisions of this final rule, except:

Dec. 1, 2015Distributors may ship products labeled by manufacturers under the old system until Dec. 1, 2015.

Chemical manufacturers, importers, distributors and employers

June 1, 2016

Update alternative workplace labeling and hazard communication program as necessary, and provide additional employee training for newly identified physical or health hazards.

Employers

Transition Period Comply with either 29 CFR 1910.1200 (this final standard) or the current standard or both.

All chemical manufacturers, importers, distributors and employers

ThenewstandardrequiresthatallworkersbetrainedbyDec.1,2013,onthenewlabelelements(i.e.,pictograms,hazardstatements,precautionarystatementsandsignalwords)andSDSformat,inadditiontothecurrenttrainingrequirements.

http://www.spanalaska.com


OSHA offers Hazard Commu-nication Guidelines for Compliance (OSHA Publication 3111).This infor-mational booklet does not itself alter or determine compliance responsibilities, whicharesetforthinOSHAstandardsthemselves, but provides some useful guidance for employers.

Topics include:•Introduction•BecomingFamiliarwiththeRule•IdentifyingResponsibleStaff•IdentifyingHazardousChemicalsin

theWorkplace

•PreparingandImplementingaHazardCommunicationProgram

•LabelsandOtherFormsofWarning

• Material Safety Data Sheets•EmployeeInformationand

Training•OtherRequirements•ChecklistforCompliance•FurtherAssistance•OtherSourcesofOSHAAssistance

•SafetyandHealthProgramManagement

•StatePrograms• Consultation Services•VoluntaryProtectionPrograms

•TrainingandEducation•OSHARelatedPublications•StateswithApprovedPlans•OSHAConsultationProject

Directory•OSHAAreaOffices

OSHA expects that the modifica-tions to the Hazard CommunicationStandard will result in increased safety and health for the affected employees and reduce the numbers of accidents, fatalities, injuries and illnesses asso-ciated with exposures to hazardous chemicals(preventinganestimated43

fatalitiesand585injuries).The GHS revisions to the HCS

standard for labeling and safety data sheets would enable employees exposed to workplace chemicals to more quickly obtain and to more easily understand information about the hazards associated with those chemicals. In addition, the revisions to HCSareexpectedtoimprovetheuseof appropriate exposure controls and work practices that can reduce the safety and health risks associated with exposure to hazardous chemicals.

For additional information and resources, you can refer to the OSHA standards and the Bloodborne FAQs at www.osha.gov. AKOSH has a very simple model exposure control plan available at their website: http://labor.state.ak.us/lss/forms/bloodborne-pathogen-guide.pdf.

Chris Ross, CSP, CPLP, is President of The Engagement Effect. The fi rm offers solutions in organizational performance, safety and health, leadership, talent management and culture change. Learn more about us at www.theengagementeffect.com or email the author at [email protected]

Scholarship testimonials

How toapply

The Construction Education Foundation is involved in all levels of construction education in Alaska – from students in secondary schools to older university students, to students looking to change careers or to take short courses to upgrade their skills. The foundation’s goal is to provide the next generation of construction workers in Alaska. To that end, CEF works with The Associated General Contractors of Alaska to offer scholarships to students taking (or will be taking) classes toward a degree that will support the state’s construction industry.

To apply, download the forms at www.alaskacef.org/scholarships.html and return by deadline to the CEF offi ce at 8005 Schoon St., Anchorage, AK 99518. For more information, call 907-770-1826.

Jordann ConlonI would like to thank AGC

for the help to continue my education towards my Civil Engineering degree at theUniversity of Alaska Fairbanks. I am currently getting fi rsthand experience working for a constructioncontracthereinAlaska.AfterstartingwithBriceInc., I knew construction and I were a good fi t. I would like to continue working in Alaska once I fi nish my degree. The challenges that come with building in this state will keep me learningyearafteryear.WiththehelpofAGCIwillbeableto reach that goal.

Adam BoivinThroughout my life, building and assembling small

projectshasalwaysbeenapassionofmine.However,mydream to pursue a career in the construction industry was put on hold when I chose to serve our country as a soldier in the U.S. Army. After seven years of life-changing experiences in the military, I now have the opportunity to further my civilian education. From the Army combat helmet to the construction hard hat, work is a little different, but the cohesion of a team and the common goal to successfully complete a mission are the same. I would like to thank the members of The Associated General Contractors of Alaska for your contributions to the scholarship program and the AGC Education Committee for nominatingmeforthisaward.Youhavegivenmeachancetoachievemydreamandthenecessary “tools” to grow to my fullest potential in this career fi eld.

http://www.osha.gov

http://labor.state.ak.us/lss/forms/bloodborne-pathogen-guide.pdf

http://www.theengagementeffect.com

http://www.theengagementeffect.com


http://www.alaskacef.org/scholarships.html


Hire the right person By BARBARA STALLONE, SPHR

HUMAN RESOURCES UPDATE

P robably the most diffi cult and important task any manager will ever do is to hire the right person for their job opening.

This process starts with a well-written job description outlining the expectations of the employer. Even smallbusinesses should start with an outline of the job expecta-tions.Howwillyouknowwhattolookforinacandidateunlessyouhaveajobdescription?Howwillthecandidateknow what you are looking for in an applicant? Anybody ever had a job candidate tell you they can do everything? Not as uncommon as you might think.

Now that you have a job description, where do you start to look for qualifi ed candidates to interview? Notice I said qualifi ed candidates because there are many candi-dates for job openings, but who wants to waste their time with unqualifi ed applicants?

In Alaska one of the easiest places to search for quali-fi ed candidates is to list the job opening with the Alaska StateEmploymentService.Ithasauser-friendlywebsiteallowing you to list job openings. If you want to speak with someone from their staff, they have more than 20 offi ces throughout the state. The advantage of using their resources is there is no fee, as they are fi nanced from the FUTA tax every employer pays. Some contracts require employers to list job openings with their offi ces, for affi r-mative action purposes.

In the electronic age, more and more employers are fi nding great employees from social media sites such as Facebook and others. Instant communication is the way business is conducted, and fi nding employees is no different. Don’t be confused that it takes the place of a face-to-face interview however.

Traditionally most employers still use the resources of their business associates, friends, family and current employees. Placing in ad in the local newspaper, withprofessional associations or trade organizations may also be a resource.

Alaska is fortunate to have a higher education system that focuses on the mining industry, and the University of Alaska Fairbanks is a great source of applicants, as well as otherschoolssuchasAVTEC.

Now that you have some idea where to look for appli-cants,whatisthenextstep?Writealistofquestionsyouthink are important to determine if someone has the skills to perform the job you are hoping to fi ll. Don’t forget that an applicant who already has met the training require-ments from EMSHA may save you money in training

costs or reduce the amount of training you are required to provide.

All employers want employees who are able to get up each day and put in a day’s work for a day’s pay, don’t cause them issues, come to work on time and can be a team player. There are numerous resources available to help you design questions that can assist you to determine if the candidate posses these skills.

In the interview process document the candidates’ responses, especially if you are interviewing more than one candidate. After you have made your decision, put your notes in a fi le, as you may need them some time in the future.

Now that you have made a decision who to hire, ensure you follow some basic processes such as contacting past employers for feedback, conducting a background check and sending the applicant for a drug screen.

If your candidate passes these processes you can then provide a written offer letter. If you are still conducting these checks, write a job offer to your candidate making the offer contingent upon successfully passing your pre-employment processes.EnsureyourofferlettermeetstherequirementsasoutlinedintheAlaskaWageandHourlaw.

Using these resources and following the guidelines I have shared will assist in selecting the right applicant for yourjob.Hiringisnotaperfectscience,butyoucanmakethe task easier by following some basic steps.

Don’t just hire a “body.” Spend the time and energy to hire the right person for your team. The profi tability of your company may be at stake.

This column provides information about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice — the application of law to an individual’s specifi c circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want profes-sional assurance that our information, and your interpretation of it, is appropriate to your particular situation.

Barbara Stallone is a partner in The Human Resource Umbrella, an Anchorage-based Human Resource Consulting Company. If you have questions you would like answered in future columns, she may be contacted at [email protected] or 907-727-2111. The Human Resource Umbrella LLC is a member of AGC.




The Pebble PartnershipThe Pebble Limited Partnership is in advanced exploration and pre-feasibility efforts

related to development of the world-class Pebble Deposit, located in southwest Alaska. Located on State of Alaska land designated for mineral exploration and development,

Pebble is predominantly a copper deposit, with substantial amounts of gold and molybdenum. The level of copper estimated within the deposit could potentially supply about 35 percent of U.S. copper needs in the future.

To date, several hundred million dollars has been invested in exploration, environment studies and engineering planning for this signifi cant state asset, with more than $120 million relating to environmental research specifi cally.

The project will include an initial construction phase that is anticipated to take several years to complete with 3,000 to 4,000 construction jobs. The multibillion dollar investment will include building mill processing facilities, an anticipated 80-mile transportation system, a major port and power plant. During operations, the mine itself will employ 1,000 full-time workers in a wide range of jobs from drilling operators to administrative positions, engineers and more, as well as spark multiple supply- and service-type contracts and businesses.

TThe Pebble Limited Partnership is in advanced exploration and pre-feasibility efforts he Pebble Limited Partnership is in advanced exploration and pre-feasibility efforts he Pebble Limited Partnership is in advanced exploration and pre-feasibility efforts he Pebble Limited Partnership is in advanced exploration and pre-feasibility efforts related to development of the world-class Pebble Deposit, located in southwest Alaska. related to development of the world-class Pebble Deposit, located in southwest Alaska. Located on State of Alaska land designated for mineral exploration and development, Located on State of Alaska land designated for mineral exploration and development, Located on State of Alaska land designated for mineral exploration and development, Located on State of Alaska land designated for mineral exploration and development,

Pebble is predominantly a copper deposit, with substantial amounts of gold and molybdenum. Pebble is predominantly a copper deposit, with substantial amounts of gold and molybdenum. Pebble is predominantly a copper deposit, with substantial amounts of gold and molybdenum. Pebble is predominantly a copper deposit, with substantial amounts of gold and molybdenum. The level of copper estimated within the deposit could potentially supply about 35 percent of The level of copper estimated within the deposit could potentially supply about 35 percent of The level of copper estimated within the deposit could potentially supply about 35 percent of The level of copper estimated within the deposit could potentially supply about 35 percent of U.S. copper needs in the future. U.S. copper needs in the future.

To date, several hundred million dollars has been invested in exploration, environment To date, several hundred million dollars has been invested in exploration, environment To date, several hundred million dollars has been invested in exploration, environment To date, several hundred million dollars has been invested in exploration, environment studies and engineering planning for this signifi cant state asset, with more than $120 million studies and engineering planning for this signifi cant state asset, with more than $120 million studies and engineering planning for this signifi cant state asset, with more than $120 million studies and engineering planning for this signifi cant state asset, with more than $120 million relating to environmental research specifi cally.relating to environmental research specifi cally.

The project will include an initial construction phase that is anticipated to take several years The project will include an initial construction phase that is anticipated to take several years The project will include an initial construction phase that is anticipated to take several years The project will include an initial construction phase that is anticipated to take several years to complete with 3,000 to 4,000 construction jobs. The multibillion dollar investment will include to complete with 3,000 to 4,000 construction jobs. The multibillion dollar investment will include to complete with 3,000 to 4,000 construction jobs. The multibillion dollar investment will include to complete with 3,000 to 4,000 construction jobs. The multibillion dollar investment will include building mill processing facilities, an anticipated 80-mile transportation system, a major port building mill processing facilities, an anticipated 80-mile transportation system, a major port building mill processing facilities, an anticipated 80-mile transportation system, a major port building mill processing facilities, an anticipated 80-mile transportation system, a major port and power plant. During operations, the mine itself will employ 1,000 full-time workers in a and power plant. During operations, the mine itself will employ 1,000 full-time workers in a and power plant. During operations, the mine itself will employ 1,000 full-time workers in a and power plant. During operations, the mine itself will employ 1,000 full-time workers in a wide range of jobs from drilling operators to administrative positions, engineers and more, as wide range of jobs from drilling operators to administrative positions, engineers and more, as wide range of jobs from drilling operators to administrative positions, engineers and more, as wide range of jobs from drilling operators to administrative positions, engineers and more, as well as spark multiple supply- and service-type contracts and businesses.well as spark multiple supply- and service-type contracts and businesses.

The Pebble Limited Partnership is in advanced exploration and pre-feasibility efforts related to development of the world-class Pebble Deposit, located in southwest Alaska. Located on State of Alaska land designated for mineral exploration and development,

Pebble is predominantly a copper deposit, with substantial amounts of gold and molybdenum. The level of copper estimated within the deposit could potentially supply about 35 percent of U.S. copper needs in the future.

To date, several hundred million dollars has been invested in exploration, environment studies and engineering planning for this signifi cant state asset, with more than $120 million relating to environmental research specifi cally.

The project will include an initial construction phase that is anticipated to take several years to complete with 3,000 to 4,000 construction jobs. The multibillion dollar investment will include building mill processing facilities, an anticipated 80-mile transportation system, a major port and power plant. During operations, the mine itself will employ 1,000 full-time workers in a wide range of jobs from drilling operators to administrative positions, engineers and more, as well as spark multiple supply- and service-type contracts and businesses.

By JOHN SHIVELY, CEO


The Pebble Partnership

In an effort to minimize its environmental footprint, the Pebble Limited Partnership uses helicopters to transport crews, supplies and other support materials to remote fi eld operations at the Pebble deposit in Southwest Alaska.

In an effort to minimize its environmental footprint, the In an effort to minimize its environmental footprint, the Pebble Limited Partnership uses helicopters to transport Pebble Limited Partnership uses helicopters to transport crews, supplies and other support materials to remote fi eld crews, supplies and other support materials to remote fi eld operations at the Pebble deposit in Southwest Alaska.operations at the Pebble deposit in Southwest Alaska.

In an effort to minimize its environmental footprint, the Pebble Limited Partnership uses helicopters to transport crews, supplies and other support materials to remote fi eld operations at the Pebble deposit in Southwest Alaska. photos: CourtesY of the peBBle pArtnership

Pebble uses helicopters to transport drill rigs, which are broken down into several pieces and moved every four to six days.

Pebble uses helicopters to transport Pebble uses helicopters to transport drill rigs, which are broken down drill rigs, which are broken down into several pieces and moved every into several pieces and moved every four to six days.four to six days.

Pebble uses helicopters to transport drill rigs, which are broken down into several pieces and moved every four to six days.


Development projects throughout Alaska share chal-lenges that are literally part of the landscape. Remote settings, extreme temperatures and rough terrain are common elements that are necessary planning compo-nents.ButdevelopingaprojectlikePebblerequiresalevelofcomplexity that connects the four key components above that under other circumstances would individually be considered large undertakings. A common thread throughout each of these areas is environmental research.

InJanuary2012,whilenotrequiredtodoso,PLPpubli-cally released its Environmental Baseline Document, a

compilation of extensive scientifi c research conducted at thePebblestudyareabetween2004and2008.Thebodyofwork represents a rigorous environmental studies program that historically is one of the most robust for a mining project in Alaska. Documenting fi ve years of data collec-tion,theresearchwasconductedbymorethan40globallyrecognizedindependentscientificfirms—includingmanypremiereAlaskacompanies—representingmorethan100environmental fi eld experts.

Covering a wide range of scientifi c disciplines, from fi sh, surface and groundwater hydrology and water quality to seismicactivityandwildlife,theEBDdocumentsthephysi-ology, biology and socio-economic conditions in a study area encompassing several hundred square miles. About half of the EBD research is dedicated to fish and waterstudies. The nearly 30,000-page compilation of data offers a previously unrecorded breadth of scientifi c study that will bealegacyfortheregionwhetherornotthePebbleprojectmoves forward.

Work associated with the EBD took place year-round.Wintertemperatures,whichregularlydropbelowminus10,presented particular challenges for researchers. Hydrology

The Pebble deposit, which contains copper as well as gold andmolybdenum, is located on State of Alaska land designated for mineral exploration and development.

(Left) Environmental researchers at the Pebble deposit work year-round, operating in winter temperatures regularly below minus 10.

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data collected on a monthly basis at streams, for example, often required digging through 5 feet of snow and auguring through several feet of ice to collectsamples.Likewise,summerchal-lenges included field work conducted in densely vegetated areas supporting a significant brown bear population. Consequently, PLP established a bearguard program that moves people away from bears, rather than the more stan-dard practice of using noise to move bears away from people. This program, along with transporting all equipment and crews to and from the study areas as well as throughout the deposit, via helicopter, arejusttwoexamplesofPLP’scommit-ment to environmental stewardship.

InformationgatheredfromtheEBDand continuing scientific programs is being incorporated into ongoing engi-neering designs and will help shape a potential future mine plan. Mitigation, closure and reclamation are also key to the mine plan that will ultimately be submitted for permitting. HowPebbleplanstooperateandmanageitsfacilities based on modern 21st century mining practices and technologies will set it apart.

Alaska mining laws also require a reclamation bond from developers that is held in security by the State of Alaska, along with the more than 50 permits, certifications and authorizations that Pebblewillneedforpermitting.

Withallthatinmind,onemightaskwhat the purpose is behind the Envi-ronmental Protection Agency’s recentactions related to the draft Bristol BayWatershedAssessment.Frankly,thoseinsupport of due process wonder as well.

The EPA’s decision to prematurelyinsert itself into the Pebble process andactivities occurring on state-owned and -managed land designated for mineral exploration should sound economic alarm bells to any individual or company looking to conduct responsible resource development in Alaska. This assertion could signal yet another federal overreach in Alaska where federal agencies currently manage some 61 percent of the state. To put this in perspective, one-third of all federal lands in the United States are in Alaska, larger alone than Texas or bigger than the combination of 15 eastern states stretching from Maine to South Carolina.

TheEPA’sactionisaresponsetopeti-tions submitted in 2010 by Southwest

http://www.dowlandbach.com

http://www.pafak.com


Alaska tribal organizations and a host of other anti-Pebblegroups for the agency to preemptively stop the project using anactionundertheCleanWaterAct’sSection404c—some-thing the agency has never done before on a resource devel-opmentproject.Currently,theEPAreviewsabout60,000404permits annually associated with nearly $220 billion in proj-ects.What isunusualabout thedecision is that theEPA isasserting itself prior to any permit applications being fi led.

The EPA’s RegionalAdministrator says it makes sensetogatherpubliccommentbeforedevelopmentoccurs.Butexactly what did the public comment on in absence of a permit application development plan and why now?

It isnowonderthatGov.SeanParnell’sadministrationquestioned early on whether the exercise would “add value” to the Pebble discussion and Alaska’s Attorney Generalcalled the EPA’s actions“unlawfully preemptive, prema-ture, arbitrary, capricious and vague.” Likewise, Sen. LisaMurkowski expressed concern that “the assessment must not be a check-the-box exercise that merely provides cover fortheEPAtovetofuturepermitapplications.”Tenofthe12Alaska Native regional corporations, as well as Alaska busi-nessesandaveragecitizensalsowrotetheEPAexpressingtheir concern over their actions.

No Alaskan would support harming Bristol Bay’stremendous salmon resource. Nor should we side with one industry at the expense of another. The question before us as

Alaskans is whether these two industries can coexist in the BristolBayregionastheycurrentlydothroughoutAlaska.

I believe the answer is emphatically yes. Alaska has demonstrated repeatedly that mining and fi shing can indeed coexist. One need look no further than Fort Knox Mine, Greens Creek and Red Dog. Operations at these mining facilities represent the best in mining practices, including highly successful relationships with corresponding fi sheries.

Furthermore, Alaska sets the standard with recognized programs in fi sh and wildlife management. Instead of looking around the world for failed mining projects, are we not better served by looking at how Alaska’s environmental standards have served us well in all areas of resource devel-opment? They are world-class, like the very fi sheries they are intended to protect.

This returns the conversation to science. The PebblePartnershiphasspentyearsintentlystudyingthehydrology,geology and wildlife at its proposed development site. It has undoubtedly amassed the most comprehensive set of data availablefortheIliamnaregion.TheverydatathatPebblemust provide state and federal regulators as part of the permit application process.


Ironically, the EPA felt no needfully evaluate this exhaustive data in its DBBWA.Instead,theyhaveconductedaliterature review with no on-the-ground science and created a mine that was doomed to fail with outdated mining practices from third-world countries and in some cases not utilized for the past 50 yearsormore.EventheEPA’sownpeerreviewers called the DBBWA incom-plete, criticizing its lack of 21st century mining practices, its complete omission of mitigation and the absence of Alaska’s unique and stringent regulatory system.

The EPA has within its powerthe ability to stop development in its tracks at any stage. It can cost investors hundreds of millions of dollars when the EPA invokes its authority. Just askShellorConocoPhillips.Ifenforcementis necessary to protect Alaskans and the environment, it is justified.However, if

To date, more than $120 million has been spent on environmental research alone at the Pebble deposit.

To date, more than $120 million has To date, more than $120 million has been spent on environmental research been spent on environmental research alone at the Pebble deposit. alone at the Pebble deposit.

To date, more than $120 million has been spent on environmental research alone at the Pebble deposit. photo: CourtesY of the peBBle pArtnership

http://www.pibinsure.com


it’s exercised as part of a political agenda instead of a scientifi c process, it is not. And at this time, it is too early to deter-minetheEPA’sagendawhenitcomestoAlaskaingeneralandthePebbleprojectin particular.

Whatisknownisthatminingprojectslike Fort Knox and Red Dog, developed during this era of environmental regula-tion, have proven that Alaska mines and healthy fi sheries can coexist. Considered a global leader in the management of its natural resources, Alaska has a unique understanding of protecting the envi-ronment while maximizing its economic engines to the benefi t of its residents as directed by the state constitution. Modern technology plays a critical role in advancing these tandem goals that allow multiple natural resource industries to thrivesidebyside.Equallyasimportantisdue process and a dependable regulatory system that is above political agendas.

John Shively fi rst came to Alaska in 1965 as a VISTA volunteer. What started as a one-year assignment turned into a career involved in the issues that have shaped Alaska — both in the private and public sectors. Shively worked with NANA Regional Corporation on the development of the Red Dog Mine and served most recently as Holland America Line’s executive in Alaska. He has served two governors and is a former commissioner of the Department of Natural Resources. Shively has been a trustee for Alaska Permanent Fund, regent at the University of Alaska and served on numerous boards including the Resource Development Council where he served as president for fi ve years. In 2009, Shively received the Bill Egan award from the Alaska State Chamber of Commerce as their outstanding Alaskan of the year. Shively has also been recognized with the prestigious Denali Award from the Alaska Federation of Natives. He currently leads the Anchorage-based Pebble Partnership as CEO.

The Pebble Partnership has conducted extensive research into the hydrology, geology and wildlife of the proposed development site.

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umetIndustriesLLChasauniqueowner-ship structure. In fact, General Manager/CEOAaron Burmeister said thatTumet isone of a kind in the country. Unlike most

business that may have a handful of partners, Tumet’s ownership is split between 15 tribes and a nonprofi t organization. It also has a specifi c mission: to strengthen the local workforce through training and employment and provide quality work for the Native people of the Northwestern Alaska Region.

Tumet formed as a limited liability company in 2007. From the start, its focus was to provide construction services to federal and local govern-ment and private entities while creating jobs and growth opportunities for tribal members. This mission is refl ective in its ownership. Fifteen

federally recognized tribes own 51 percent of the company (3.4 percent each) with Kawerak Inc.owning the remaining 49 percent. This unique

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Unique mission equals successfor Northwestern Alaska

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TUMET INDUSTRIES LLC By RACHAEL KVAPIL

Crews highfl oat the Gambell Community Streets to keep the dust down.

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Crews highfl oat the roads in Gambell using a Distributor truck.


structure created an initial challenge with fi nancing and bonding; however, Tumet has gone far in accomplishing its goals. According to Burmeister,who has been with Tumet since 2009, the company uses as much 70 percent local hire.

“Having a company that providestraining, education and work for local residents is extremely benefi cial,” Burmeistersaid.“Notonlydoesitpourmoney into the local economy, resi-dents can then take pride in roads and airports they created.”

Burmeister says thatTumet mostlyhandles civil construction, heavy roads and highways, airports, sewer and water projects. Some of its most recent projects include the $8 million BrevigMission Improvement Project in 2008and 2009 to rehabilitate the existing community streets and drainages and build a new road around the commu-nity. In August 2011, Tumet started the Teller Coyote Creek Drainage Improvements, installing 280 feet of culvert, creating ditches and adequate drainage, grading the roads, realigning driveways and clearing and grubbing around existing culverts. Tumet started the St. Michael Roadway Improve-ments Project in June 2012, a projectthatcontinuesinto2013.Eachoftheseprojects exemplifi es Tumet’s dedication to its mission. For instance, about 35 peopleontheBrevigMissionImprove-mentProjectweretribalmemberswithonly three non-tribal hires.

“The numbers show that training and hiring locally boosts the economy,” Burmeistersaid.“Notonlyareweputtingmoney into the economy during the construction, but local employees put the money they make into purchasing big ticket items like four-wheelers and vehicles.Likewise,theynowhaveskills

Barging equipment to Gambell to start project.



and experience that they can take to other construction jobs.”

Hiring locallyalsoeases the logis-tical aspect to a project, as Tumet does not have to worry about providing housing or setting up large job camps. Burmeister said that when the crewis primarily local they have places to live, are familiar with the landscape and know the culture. This is impor-tant since jobs take approximately two years. The fi rst year is considered low production, fi lled mainly with training, while the second year is focused on production. To facilitate this cycle, Tumet tries to schedule Commer-cial Driving License programs, flag-ging classes and any other necessary training sessions with the state and university,Burmeistersaid.

Denise Michels, Transportation Director of Kawerak Inc., said Tumet providedexcellentserviceontheBrevigMissionImprovementProject,GambellCommunityStreetsProjectandthefirstpart of the St. Michael Road Improve-ment Project, among other villagemaintenance projects.

Tumet sets ups a crusher to produce material in St. Michael.

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Placing foamboard in St. Michael to stabilize the road.

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“They are a professional crew,” Michels said, “knowledgeable about rural construction and logistics and very solution-oriented.”

Michels also praised Tumet for promoting local hire at the village level. TheGambellCommunityStreetsProjectemployed 89 percent tribal members from the region and 79 percent local residents in 2010. In 2011, the numbers of local and tribal hires were 76 percent and 92 percent, respectively.

JasonSakalaskas,AssistantNorthernMaintenance Engineer for the AlaskaDepartment of Transportation, echoed Michels’ sentiment. Tumet recently re-established the runway shoulder at St. Michael Airport with plans for resurfacing. Sakalaskas said Tumet was able to complete the project with little guidance according to the general scope given for performance and repair.

“We have minimal inspection offi-cials, meaning we don’t have staff in thatarea,”Sakalaskassaid.“Essentially,Tumet was left to operate on their own, and they did so with professionalism and quality work that fell within the budget we asked for. As a state employee, I couldn’t have been happier.”

Sakalsakas was also happy with Tumet’s timely correspondence and its ability to understand the customer and handle the challenges of working in a remote location.

Tumet has been an AGC member since2009.BurmeistersaidAGCdoesan excellent job representing busi-nesses within the state. Along with networking and providing industry information, AGC assists with the coordination of classes and training sessions. He also believes that AGCis an organization he can rely on for answers about industry issues.

ThoughBurmeisterissatisfiedwithTumet’s success, he aims for further expansion within the state. He knowsthat growth will provide logistical chal-lenges; however, Tumet has checks and balances in place. Burmeister said thecompany can only grow as fast as its bond, which currently sits at $10 million of work per year. Burmeister is opti-mistic Tumet’s uniqueness will be the key to its success.

Rachael Kvapil is writer and photographer who lives in Fairbanks.

http://www.cityelectricinc.com



A mericans have become much more sensitive about the environment than they were a generation ago, and laws to protect our air, water and land have

improved dramatically. The practices and results that were common in previous generations would be a matter of crim-inal penalty today. There has been a regulatory and cultural shift since the advent of Earth Day and enactment of theNationalEnvironmentalPolicyActin1970.

These changes have dramatically affected today’s mining operations. In fact, there has been a much-needed, steady improvement in mine regulation and practices in the past 40years—andyoucanseeitinthepositiveenvironmentalrecord of Alaska’s mines.

Changes began in the 1970s: Congress passed the National Environmental Policy Act (which requires Envi-ronmental Impact Statements for proposed projects), theCleanAirAct,andtheCleanWaterAct.ItalsoestablishedtheEnvironmentalProtectionAgencyandpassedcompre-hensive regulation for the coal industry.

BY BOB LOEFFLER

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Hydraulic mining near Nome on the Seward Peninsula during an Alaska Gold Rush.

UCM’s reclamation efforts at Poker Flats in July 2003. The Usibelli family began a formal reclamation program at its mine in 1970, six years before required by federal law.

Reclamation progress shown at Poker Flats nine years later. UCM plants between 30,000 and 50,000 trees each year, all grown from seeds collected from the mine property.

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Despite the laws of the 1970s, it took some time before the regulators, industry and science caught up with the new environmental sensitivity. In 1985, the EPA reported that“Data onmanagement methods at mining facili-ties indicate that only a small percentage of mines currently monitor their ground water, use run-on/run-off controls or liner, or employ leachate collection, detection and removal systems.” The regulations, science and required protec-tion measures we now take for granted were just being implemented in the 1980sand1990s.Butby1999,aNationalAcademy of Sciences study prepared for Congress concluded that the “laws and regulations that provide mining-related environmental protection is complicated but generally effective.”

Because of the obvious differencesbetween new and old mines, regulators and industry generally refer to old mines as legacy mines. Legacy mines weregenerally designed and constructed with inferior environmental standards and practices, compared with the mines of today, and the statistics bear that out.

One recent study looked at hard-rock minestheEPAhasplacedonitsNationalPriorityListassuperfundclean-upsites.The study found that there are 53 hard-rock mines on the EPA’s list: 47 werepermitted in the pre-regulatory era (before1970),sixwereauthorizedinthetransition era (before 1989) and nonewas permitted after 1990. The study confirmed what those in the industry know—thatchangingregulationsandpractices have clearly improved mining’s environmental performance.

The changes in regulatory standards are reflected in the history of Alaska’s mining laws. Our first hard-rock mines since World War II began operationin 1989. At that time, Alaska had no requirement that mine operators reclaim land they had disturbed and no require-ment for the operators to provide finan-cial assurance that mining sites would be reclaimed. Alaska allowed mining companies to disturb the land and leave it disturbed.

In1990,theAlaskaLegislaturepasseda mine reclamation requirement for state, federal and private land in Alaska. The law became effective October 1991. It also required that mines put up funds for reclamation(areclamationbond)before

http://www.emcalaska.com

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theybeginoperation.Butthereclamationbondrequiredinthe new law was designed for placer mines, which were then the dominant part of the industry. The maximum amount of the required bond was less than the amount needed to reclaim hard-rock mine sites.

Between 1991 and 2004, four hard-rock mines wereauthorizedonstate land.Eachof thoseoperationsvolun-tarily agreed to submit financial assurance for the entire mine disturbance, even though it was greater than what the law required.

In 2004, the Alaska Legislature with the support ofstate agencies, the mining industry and some environ-mental groups changed the law to require full reclamation bondingforhard-rockmining.BeginninginJuly2004,thestate required all mines to put up a bond to cover the full reclamation cost before the mine begins operating. All mines in Alaska have updated their bonds since the law was passed.

Alaska also has a unique requirement as part of its mine permitting, a requirement no other state has. All states require mines to monitor their performance to make sure they live up to permit requirements. Agencies also monitor andinspecttheperformance.ButAlaskahasaninnovativerequirementthatgoesonestepfurther:Wehiresomeonetomonitor the agencies.

Everyhard-rockmineregulatedbythestaterequiresathird-party audit every five years. A consulting firm is hired to audit both the mine’s compliance with permit require-ments and the state agencies’ inspection and administration

of those requirements. The auditing firm makes recommen-dations for improving operations and regulation, and the subsequent audit investigates whether the previous recom-mendations were implemented.

Thesechanges—aswellasthefactthatAlaska’shard-rockindustryisyoung,withnolegacymines—haveresultedin an Alaska mining industry with an excellent record of protecting the environment, particularly water quality and fish. Agency monitoring tells us that fish downstream of all Alaska’s hard-rock mines are as populous and healthy as they were before the mines existed.

Today, Alaska has a strict and realistic set of require-ments to regulate mining, and our mining industry has an enviable environmental record. That’s not to say that the laws and regulations are perfect. The future will no doubt bring challenges and make it clear that we can make even moreimprovements.Butwiththeregulatoryrequirementscurrently in place, there is no excuse to permit a mine that would degrade the environment, especially water quality or fish habitat. And that almost certainly would not have been true of mines developed in your grandfather’s time.

Bob Loeffler is a part-time Visiting Professor at the Institute of Social and Economic Research, University of Alaska Anchorage, and the partner in the consulting firm, Jade North LLC. For seven years, he was director of the Division of Mining, Land and Water within the Alaska Department of Natural Resources. The views expressed in this article are his own.

http://www.grtnw.com




LL

Delivering impeccable safety and added value to contractors

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NORTH STAREQUIPMENT SERVICES By JAMIE ROGERS

ike many achievements in life, building a successful business requires a smart sense of balance.

So when it comes to super-sized cranes, pile drivers, forklifts and other equipment for major projects, North Star EquipmentServices balances the risks that come with heavy-duty machinery with epic safety measures. In fact, the company’s “safetanical” attitude is just as important as the extensive range of equipment it provides.

As the newest division of Anchorage-based North Star Terminal & Stevedore Co., NSEShas made it their mission to provide the highest-quality and safest-oper-ated equipment services in the state. Steve Post, NSES vice president,said that fostering an incident-free workplace has been his primary focus since Day 1 of operation.

“In 2006, we rolled out North Star Equipment Services to betterrepresent our ‘off dock’ business,” Post explained. “Since then, wehave seen our business grow as we have taken on more risk for our customers we serve.

“We’ve done this with a focuson safety that only comes with experience and a ‘safetanical’commitment — meaning afi nancial commitment to hiring well-rounded, bright operator/mechanics, buying the best equip-ment, no deferred maintenance, investing in training and having ‘Hooked on Safety’ as a culturalnorm—nomatterthecost.”

NSES shop foreman SeanDunham knows all this fi rst-hand and said that contributing to the

Valdez longshoreman working for North Star Terminal & Stevedore Co. did a masterful job discharging (or unloading) the big, heavy and ugly girders that will be used to construct the Tanana River Bridge outside of Salcha.

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company’s growth and working on large projectsthroughoutthestate—suchasrefi nery jobs and Department of Defense missilesites—arepartofwhatheenjoysabout working at North Star. However,when asked what he appreciates most about his job, Dunham replied, the “freedom to make decisions with confi -dence and the backing of management.”

It’s NSES’ commitment to well-trained employees and a culture of safety that has been a priority as the company invests in niche markets and provides greater value for the customers it already serves.

“Anything you own or do has a cost and associated risk with it,” Postexplained. “Take a big crane that costs a millionbucksplus.NSESowns20-pluscranes, and with our best-in-class team, we can assume the hard dollar cost needed to buy, maintain, repair and insure our equipment and the soft dollar risk of operating it better than most.

“Heavy-lift crane and pile-drivingservices are some of the riskiest aspects of the construction business. Our goal is to ensure our customer’s projects are profi table and performed incident-free.”

The safety reputation of NSES isworth its weight in gold, especially during the past year on some impres-sive projects. In 2012 the company experienced no lost-time incidents, proving that its goal of zero incidents can be achieved. And the record was met under some challenging conditions, suchasusingABImobileramstoreplacevertical support members on the North Slope, operating cranes at the South-

Heavy-duty piperack lifting is no problem for equipment from NSES.


http://www.gtsinteriorsupply.com


centralPowerPlant forChugachElec-tric, doing crane and drilling work for the Eva CreekWind Farm Project andprovidingcontinuedsupporttoBoeingat the Fort Greely missile defense site.

The impeccable safety record at NSES is evenly matched with a vastinventory of heavy equipment at the ready for any project.

“North Star Equipment Serviceshas a plethora of cranes ranging from 22-ton to 300-ton capable,” Post said.“Wealsohavemadean investment inmulti-purpose rigs that can drill, vibro-drive and impact drive all types of pile. If a customer has a special equipment need, we will fi nd it, buy or lease it and most importantly develop a safe, oper-ated solution to help them accomplish their project.”

Dustin Swanson, president of Swanson Steel Erectors Inc., withbranches inAnchorage and Honolulu,primarilyusesNSES’craneservicesforhis company’s projects, with the addi-tion of ancillary equipment such as forklifts, telehandlers and manlifts at times.Whilehealsovaluesthecombi-

NSES workers gently lower the fi rst live Ground Based Interceptor missile into its silo at Fort Greely in 2004.

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nation of selection and safety at North Star, Swanson said that the best part of NSES’service is itsabilitytoadapttodiffi cult job-specifi c needs, locations and timeframes with equipment and operators.

“NSEScanrepairallmanlifts/fork-lifts and has many types of forklifts available for different needs,” he said. “They also stand behind the repairs.”

Post said that being a member ofAGC of Alaska has been a plus for the company for a long time.

“Our affi liation with AGC goes backtoourearlydays,”Postsaid.“That

Cranes from North Star Equipment Services helped construct a new hangar last year at Fort Wainwright near Fairbanks.

relationship has provided networking opportunities, training support, access tothePlansRoomandcontractsupportwith our 302 operating engineers.”

Ultimately, North Star EquipmentService knows that it shares many of the same challenges of other contrac-tors and construction companies in Alaska: working in bitter-cold temper-atures, delivering equipment to remote locationsandsoon.ButPostsaidthatNSESbenefitsfromitsparentcompa-ny’s60yearsofexperienceintheLastFrontier in that it knows that nothing outweighs a satisfi ed client.

“AtNSESweunderstandthevalueof relationships and the commitment to do what you say you will do,” he said. “Our team appreciates our customers’ business, and they go above and beyond to satisfy their needs.”

And the little something extra that may fi nally tip a customer’s favor to NSES?

“We have pretty cool swag too,”Postadded.

Jamie Rogers is an editor for The Alaska Contractor.

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Donlin Gold project providesopportunity for Western AlaskaBY KURT PARKAN, DONLIN GOLD MANAGER OF EXTERNAL AFFAIRS

InthehistoricKuskokwimGoldBeltof Western Alaska, Donlin Goldhas been conducting exploration

and environmental studies for 17 years, preparing and planning for permit-ting, construction and operation of the proposed Donlin Gold mining project. Located in the hills, approximately 10miles north of Crooked CreekVillage,this gold deposit is estimated at 39 million ounces of Measured and Indi-cated Resources. Should the project move forward, it would be one of the largest employers in the YukonKuskokwim region, providing a new source of economic activity in the area.

In 2012, Donlin Gold started the permitting process for the project, which is projected to take a minimum of three years. As part of that process, the Army Corps of Engineers is thelead federal agency responsible for preparing an environmental impact statement and is well into the public scoping process.

If the project is approved for devel-opment, construction of the mine site and facilities is expected to take three to four years and could provide up to 3,000 jobs in the region. In addition to access roads, a new airstrip and camp would be constructed along with a portnearBethelandanotherportsite,Jungjuk/Angyaruaq, approximately8 miles downstream from the village of Crooked Creek. To power the site, a 313-mile buried natural gas pipeline is proposed. Other infrastructure and mine facilities would include a power generation plant, mill, wastewater treatment plant, conveyor systems, warehouses, laboratories, offi ces and a truck shop.

Supplies to build and operate the mine would be shipped to the region on ocean barges. Cargo would then be transferredatornearBetheltoshallowdraft river barges and transported to the port at Jungjuk/Angyaruaq. The

shipping season would last approxi-mately three to four months during the summer. A 30-mile access road from the Jungjuk/Angyaruaq Port tothe mine site would be constructed to bring supplies to the project.

Once in operation, the open pit mine is expected to produce more than 1.5 million ounces of gold annually for the fi rst fi ve years and 1.1 million ounces of gold annually or 40 tonsduring its 27-year life of mine.

Donlin Gold, in the Kuskokwim Gold Belt 10 miles north of Crooked Creek Village, could provide a new source of economic activity in Western Alaska. The proposed mining project began the permitting process last year.

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Donlin Gold project providesopportunity for Western Alaska

Powering the projectTo help reduce the amount of barge

traffi c on the Kuskokwim River and the amount of diesel required to construct and operate the mine, Donlin Gold is proposing construction of a buried natural gas pipeline to supply on-site power. The 313-mile-long, 14-inchsteel pipeline would transport natural gas from the Cook Inlet Region to the project site.

Communicating withstakeholders

Through a variety of community outreach efforts, Donlin Gold has shared information about the project

A village meeting in Aniak is part of Donlin Gold’s community outreach efforts.

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with residents and provided them with many ways to submit input on the project directly. From conducting annual village visits to providing project site tours to residents in the region, Donlin Gold has been offering stakeholders opportunities to learn

about the project fi rsthand and be given the chance to be heard.

Beingagoodneighbor is importantto Donlin Gold, and the company has provided many communities and orga-nizations with support when needed. This includes sponsoring events like

The gold deposit at the proposed Donlin Gold mining project is estimated at 39 million ounces of Measured and Indicated Resources.

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the Iditarod and Kuskokwim 300, as well as supporting search and rescue programs, village Clean Up Green Up activities, scholarship programs, internships and training support for the Kuskokwim River WatershedCouncil.WhendisasterstruckCrooked Creek, Donlin Gold was there to help. Donlin Gold has been an active community steward.

Building a local workforceDonlin Gold has and could continue

to create jobs and opportunities for resi-dents in theYukonKuskokwimregionas development progresses. Since exploration began in 1996, the project has employed dozens of local residents in the fi elds of geology, environmental science, community relations, health and safety, operations and support/adminis-trative services at the Donlin Gold camp and in other villages. Donlin Gold is committed to hiring a local workforce, and the company has a local hire record that has, at times, exceeded 90 percent at the Donlin Gold camp throughout exploration. During construction of the mine, the project could provide up to 3,000 jobs. During operation of the mine, between 800 and 1,300 jobs could

be available throughout the mine’s esti-mated 27-plus years mine life.

Planning the ProjectPlanning and preparation for a

project of this scope involves coopera-tion and input from a vast collection of stakeholders, regional and statewide residents, potential employees, educa-tors, health providers, local businesses,

city and village organizations, permit-ting agencies and more. Donlin Gold is an integral part of the community and is committed to communicating and cooperating with stakeholders to create a safe and environmentally respon-sible mining project that provides opportunitiesforfamiliesintheYukonKuskokwim region to live in healthy and prosperous communities.

During 17 years of exploration and environmental studies local residents have been employed in a variety of fi elds at the Donlin Gold camp and in other villages.

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wins national membership awardAGC of Alaska

TheAssociatedGeneralContractorsofAmericapresentedAGCofAlaskawith the2012 J.HowardMockAwardat its94thAnnualConvention inMarch.Theawardrecognizes theAlaskachapter forachieving thehighestpercentage of net growth in membership.

AGC of Alaska also claimed the top spot in membership growth in 2010.Members of AGC of Alaska cite numerous benefi ts in joining the organization, such as professional represen-

tation and promotion of the construction industry in private industry, legislative affairs and government agencies as well as training and education opportunities, health insurance and industry networking.

Testimonials to the many benefi ts of membership in AGC of Alaska are spread across the industry.

TomDeLong,Alaska Biological Research Inc.’s general manager, saidABRisanAGCmemberprimarilyforthehealthbenefits....OfABR’s49full-timeemployees,42areonthehealthcareplan.

“The people in AGC are the cornerstones of the community,” Alaska Rubber & Supply General Manager and COO Mike Mortensen said. “They build the infrastructure in Alaska, and our membership puts us in contact with them to meet their require-ments as they push Alaska to the next generation.”

“They do an excellent job for all of our state, in working with Juneauandthelegislativebody.Theykeepyouinformedofwhat’sgoing on, and they do listen to what you have to say and try to get somethingschanged,”saidLonnieParker,Craig Taylor Equipment Co. president and general manager.

From Great Northwest’s perspective, AGC has successfully negotiated many industry issues on behalf of its members. In partic-ular,VicePresidentTonyJohansenpointstoAlaskaHouseBill298thatrepealed a state mining license tax paid by sand and gravel operators.

AGC works for its members“AGC Executive Director JohnMacKinnon worked with the governorandtheLegislatureonasolution that saved a tremendous amount of time fi lling out forms forthisaudit,”Johansensaid.

American Marine Corp. Health, Safety, Security andEnvironmentalAffairsManagerKirk Foster said membership creates a strong fellowship with other construction businesses and opens dialogue about issues facing the industry. One example is drug testing and abuse of alcohol and other substances. Foster said that the number of synthetic drugs for which they test employees has increased and that working with other AGC members ensures they don’t duplicate efforts.

other construction businesses and opens dialogue about issues facing the industry. One example is drug

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Brice buddies Togi Letugasenoa and Lynn Thompson

Jennifer Lindsoe (N C Machinery Co.),Dick Engebretsen (Aurora Construction Supply)and Jennifer Towler (Samson True Value Hardware)

BoWL THon

Fairbanks 16th Annual

(Right) CMI (Construction Machinery Industrial LLC) takes the top prize.

(Jeb Baugham, Dale Bare,Stefan Avery, Wade Geis,CJ Ott)

(Left) Alaska West Express places 2nd in a bowl-off.(Al Guettinger, Rodger Murray, Steve Nolan, Mike Nolan, Ed Robinson)

UAF/AGC Student Chapter members celebrate their only win of the day (Jordan Conlin, Pat Brandon, Levi Overbeck)

Alaska USAFCU/Insurance Brokers

show off a door prize.

Alaska USAFCU/Insurance Brokers

show off a door prize.show off a door prize.

1ST PLACE: CMI (Construction Machinery Industrial LLC) Dale Bare, Jeb Baughman, Stefan Avery, Wade Geis, CJ Ott Dale Bare, Jeb Baughman, Stefan Avery, Wade Geis, CJ Ott Dale Bare, Jeb Baughman, Stefan Avery, Wade Geis, CJ Ott

2nd PLACE: ALASKA WEST EXPRESS Al Guettinger, Rodger Murray, Steve Nolan, Mike Nolan, Ed Robinson

3rd PLACE: AMERICAN FAST FREIGHT Joe Hall, Adam McGee, Jose Pluma, Jean Pluma, Myrlene Wheelock-Putney

BEST DRESSED: SPENARD BUILDERS SUPPLY “DUDES” Frank Santora, Mike Kozie, John Hautman, Paul Brouillard, Jim Mayo

CONGRATULATIONS TO OUR WINNERS:

2013 TEAMSAlaska USA FCU/Insurance BrokersAlaska West ExpressAmerican Fast FreightAurora Construction/Overhead Door Co.Brice Inc.Construction Machinery IndustrialDenali Mechanical Inc.Everts Air Cargo Exclusive PavingFairbanks Materials Inc. Fairbanks Urgent CareFirst National Bank Alaska

Frontier Supply CompanyH C Contractors Inc. Interior Alaska Roofi ng Inc. Lend Lease Team 1Lend Lease Team 2Lynden Transport Inc. Team 1Lynden Transport Inc. Team 2Paving Products Inc.SBDC/PTACSourdough Express Inc.Spenard Builders SupplyUAF/AGC Student Chapter

OUR AWESOME MAJOR SPONSORS

Altrol Inc. • Aurora Construction Supply Inc. CMI (Construction Machinery Industrial LLC)

Denali Industrial Supply Inc.•Fairbanks Materials Inc.N C Machinery Company • Overhead Door Company of Fairbanks


American Fast Freight takes 3rd Place.(Adam McGee, Joe Hall, Myrlene Wheelock-Putney, Jose Pluma, Jean Pluma)

(Left) Lori Bishop (Paving Products Inc.) gives a kiss to Kama Patterson (Fairbanks Materials Inc.)

(Right) AKSBDC/PTAC dreamed of Hawaii on a 40-below, foggy Fairbanks afternoon. (Brian Henne, Tina Henne, Eric Talvi, Mary Sheehan, Russ Talvi)

Frontier Supply CompanyH C Contractors Inc. Interior Alaska Roofi ng Inc. Lend Lease Team 1Lend Lease Team 2Lynden Transport Inc. Team 1Lynden Transport Inc. Team 2Paving Products Inc.SBDC/PTACSourdough Express Inc.Spenard Builders SupplyUAF/AGC Student Chapter

ALLEY SPONSORS Brice Inc.

Construction Machinery Industrial

Davis Constructors & EngineersExclusive Paving

Fairbanks Urgent CareGHEMM Company

Great Northwest Inc.Hale & Associates Inc.H C Contractors Inc.

Interior Alaska Roofi ng Inc.Overhead Door Company

Paving Products Inc.Samson True Value Hardware

Airport Equipment Rentals Inc. Alaska Dreams American Fast Freight Alaska Rubber & Rigging Inc. Alaska USA FCU/Insurance AGC of Alaska Aurora Construction Supply Inc. C&R Pipe & Steel Inc. Denali Industrial Supply Inc. Everts Air Cargo Fairbanks Natural Gas First National Bank Alaska Fountainhead Hotels

DOOR PRIZE DONORS Frontier Supply Company GHEMM Company H C Contractors Inc. Kenneth A. Murray Insurance Lithia Chevrolet Lynden Transport Inc. N C Machinery Company Overhead Door Company Slayden Plumbing TDS Tire Spenard Builders Supply Usibelli Mining Inc. Yukon Equipment Inc.

All proceeds benefi t theAGC FairbanksEducation Fund!

Altrol Inc. • Aurora Construction Supply Inc. CMI (Construction Machinery Industrial LLC)

Denali Industrial Supply Inc.•Fairbanks Materials Inc.N C Machinery Company • Overhead Door Company of Fairbanks

(Left) to Kama Patterson (Fairbanks Materials Inc.)

GRAND PRIZEDONORS

http://www.greertank.com


What effects will new state marijuana laws have on workplace testing?

BEACON WORKSAFE

W ith all the hype that national elections bring, what frequently goes unnoticed to most of the country are the various ballot measures that

are included on state ballots. During this past year’s elec-tions, marijuana was on the ballot in fi ve states: Colorado, Washington, Massachusetts, Oregon andArkansas.VotersinColorado,WashingtonandOregoncast theirballotsonwhether to legalize recreational use of marijuana, and voters in Massachusetts and Arkansas were deciding whether to adopt medical marijuana. After the ballots were counted, ColoradoandWashingtonbecamethefirststatestomakerecreational use of marijuana legal for adults 21 and older, while voters in Oregon rejected the ballot measure. As for the medical marijuana ballot initiative, voters in Massachusetts have elected to become the 18th state to adopt the use of medical marijuana, and voters in Arkansas voted down the medical mari-juana measure.

In 1996, California became the fi rst state to permit medical marijuana use. Since 1996, additional states have gradu-ally adopted its medical use bringing the total states adopting medical marijuana to18—approximatelyone-thirdofthecountry.

While the medical marijuana pushhas been starting to expand to other states, the same cannot be said about attempts to legalize the recreational use of marijuana—atleastuntilnow.ColoradoandWashingtonare fi nding themselves in uncharted waters as they scramble to fi gure out how best to implement the new state laws without bringing down upon them the wrath of the federal government, whose current laws prohibit the use of mari-juana. The country is standing by watching intently because what happens in Colorado andWashington could set thestage for what could happen in other states.

The following is a summary of what was legalized in ColoradoandWashington:

Colorado: Possessing, transferring and using up to 1ounce of marijuana by a person older than 21, as well as personally growing up to six plants, with three fl owering. No state residency requirement thus far.

Washington:Possessing,transferringandusingupto1ounce of marijuana; 16 ounces of marijuana-infused product in solid form; or 72 ounces of marijuana-infused product in liquid formbyapersonolder than21.Personalgrowsarenot allowed; no state residency requirement thus far.

InaresponsetowhatoccurredinColoradoandWash-ington, the federal Department of Transportation was quick to release the following letter signed by Jim Swart, thedirectorofDOT.Hestated,“Wewanttomakeitperfectlyclear that the state initiatives will have no bearing on the Department of Transportation’s regulated drug testing program. The Department of Transportation’s Drug and AlcoholTestingRegulation–49CFRPart40–doesnot

authorize the use of Schedule I drugs, including marijuana, for any reason. There-fore,MedicalReviewOfficers(MROs)willnot verify a drug test as negative based upon learning that the employee used ‘recreational marijuana’ when states have passed ‘recreational marijuana’ initiatives. We also firmly reiterate that an MROwill not verify a drug test negative based upon information that a physician recom-mended that the employee use ‘medical marijuana’ when states have passed ‘medical marijuana’ initiatives.”

Meanwhile at the state level, top employment lawyers in Colorado and Washington areadvising workers that although voters agreed to make mari-juana legal for recreational use for adults 21 and older, the new law gives no protection in the workplace. Recently the City of Seattle joined other employers in reminding workers that, because it gets federal funding and because federal law still considers marijuana a banned substance, it must main-tain a drug-free workplace.

Likewise,BoeingandthePugetSoundNavalShipyardboth reiterated their zero-tolerance policies, citing the unchanged federal ban on marijuana and drug-free work-place requirements. “Unless or until there is further specifi c guidance issued at the federal level allowing for marijuana use in some (or any) situations, as federal employees weremain accountable to comply with federal law,” the ship-yard said in a statement.

BY IAN COOPER, SUPERVISOR, DRUG AND ALCOHOL ADMINISTRATION

AMANDA JOHNSON, DIRECTOR, CLINICAL SERVICES

Even though this issue is complicated because there are still so many unanswered questions, marijuana is still considered an illegal drug and employers have every right to demand that their employees remain drug-free.


As Seattle employment law attorney Michael Subit stated, “I think people who voted for the recreational use of marijuana will be really surprised that if you use it in your home, in accordance with the initiative, you can still get fired.”

Marijuana-rights advocates would like nothing better than to get mari-juana removed from the Schedule 1 list of Controlled Substances, especially given what has occurred in Colorado and Washington. However, this mayonly be a dream, at least for now, since a Washington,D.C.,federalappealscourtdecision released Jan. 22. The appealscourt rejected a marijuana advocacy’s petition to remove marijuana from this list. In that decision, three judges said they had a duty to defer to the judg-ment of federal health experts who had concluded they needed more evidence before reclassifying marijuana. “To establish accepted medical use, the effectiveness of a drug must be estab-lished in well-controlled, well-designed, well-conducted and well-documented scientific studies with a large number of patients. To date, such studies have notbeenperformed,”theDrugEnforce-ment Administration said in defense of its decision. Judge Harry Edwards,writing for the Court of Appeals for the District of Columbia, said the judges did not dispute that “marijuana could have some medical benefits.” Instead, he said, they were not willing to overrule the DEA because they had not seen large“well-controlled studies” that proved the medical value of marijuana.

The following two recent stories highlight legal wrinkles in allowing recreational marijuana use in conjunc-tion with federal resources.

In one instance, farmers in Wash-ington have been running into prob-lems if they want to grow marijuana as a cash crop: The agricultural research they need may come from state universities that recieve federal funds.

Also, recreational marijuana is posing an interesting problem at ski resorts, which may benefit from an influx of newly interested tourists. Many ski resorts in Washington andColorado use federally owned land, says the website OntheSnow.com, and the Justice Department has made itclear that pot use won’t be tolerated on federal property.


http://www.nstiak.com


David Cronheim, an attorney who specializes in skiing legal issues, told On the Snow that federal law rules supreme when it comes to marijuana use on the slopes.“Where state law conflicts withfederal law, the federal law controls. That’s known as the supremacy clause,” said Cronheim. “Personally, from a lawyer’s perspective, I think it’s a dangerous proposition when states try tonullify federal law.We fought a civilwar over that.”

Governors from both Colorado and Washington are turning to the JusticeDepartment to try to get answers on whether the federal government is antic-ipating making any changes to current federal laws given what has occurred in their two states or to find out which parts of the laws they are intending to enforce. Washington Gov. Jay Insleerecently met with U.S. Attorney General Eric Holder and said his 45-minuteconversation was “very satisfying” and a “confidence-builder” about the state’s ability to move forward implementing legal marijuana.“We went in thinkingwe should continue with rule-making, and nothing I heard should dissuade us,” Inslee said. At the same time, he stressedthatHoldersaidnothingaboutthe federal government’s intentions and whetheritwouldcrackdownonWash-ington or look the other way. Inslee said hedidnotpressHolderforaclearerposi-tion because he considered their talk a preliminary meeting, with more discus-sions to follow. In November, Colorado Gov.JohnHickenlooperreportedlyalsospokewithHolderaboutthesameissueon a phone call.

So what does all this mean for employers? Even though this issue iscomplicated because there are still so many unanswered questions, marijuana is still considered an illegal drug and employers have every right to demand that their employees remain drug-free. Unless the federal government states otherwise, employers should continue enforcing their drug and alcohol poli-cies. Some employment lawyers are encouraging employers to revisit their drug and alcohol policies to ensure they are still consistent with what they want todo.Employersarealsoencouragedtotalk with their employees to ensure they understand what the policies are.

There is still much to come out on this subject.

http://seekins.com


http://www.shannonwilson.com


Following the tradition of years past, a group AGC of Alaska

members led by Executive Director John MacKinnon and Assistant Executive Director Mary Ann Pruitt descended on the Alaska Capitol in Juneau for the annual Legislative Fly-In at the end of January.

The group worked in teams to meet with legislators seeking to affect positive changes for the construction industry, and AGC partnered with the Alaska Trucking Association and the Alaska Miners Association to host a reception at the Baranof Hotel.

A state-funded transportation program is a longstanding AGC

legislative priority. Other priorities this year include penalizing frivo-lous lawsuits, continuing the oil tax debate, addressing increased government competition and working with the state to increase consumer protection enforcement.

From left to right: Dan Hall, Pat Reilly, Richard Green, Rep. Lynn Gattis, Robby Capps, Pat Harrison

From left to right: Richard Green, Alaska House Speaker Mike Chenault, Kathleen Castle, Clinton White

Pat Reilly

2012012013332013201201320120132013Legislative Fly-In

From left to right: Teri Gunter, Sen. Anna Fairclough, John MacKinnon

http://www.ronwebbpaving.com


Meeting the Challenge of a Job, Under $5,000,000 Vertical ConstructionContractor: Davis Constructors & Engineers Inc.Project: Synagogue Renovation

This 11,000-square-foot, $2 million synagogue renovation and addition had been bid twice unsuccessfully by other contractors. Our design/build approach and value engineering ideas made the project a success. The structure was raised to create a sanctuary, social hall, community center and preschool together under one roof. An interior designer chose affordable but rich-feeling fi nishes. The roof and mechanical system were replaced, and the outside was given a new look. We had four months to redesign, then four months to gut the building’s interior and outside walls and make it a wonderful place to worship and care for preschoolers.

2012 Winners of AGc'sExcellence in construction Awards2012 Winners of AGc'sExcellence in construction Awards


photos: © ken grAhAM photogrAphY.CoM

2012 Winners of AGc'sExcellence in construction Awards2012 Winners of AGc'sExcellence in construction Awards

Do you or your company have professional photos to share on recent AGC member construction projects in Alaska? Send us your TAKING PRIDE photos, along with a brief description of the project and photo credits. Mail all photo submissions or drop them off at:

AGC of Alaska, 8005 Schoon St., Anchorage, AK 99518-3045

If you prefer e-mail:

[email protected]

2012 Excellence in construction Awards AGC of Alaska congratulates all eight winners of the 2012 Excellence in Construction Awards. Four winning projects are featured in this edition of The Alaska Contractor continuing the celebration from the Winter 2013 issue which featured the projects listed below.

A ward: Meeting the Challenge of a Job, Over $15,000,000 Vertical Construction

C ontractor: Neeser Construction Inc. P roject: Goose Creek Correctional Center

A ward: Meeting the Challenge of a Job, Over $3,000,000 Transportation, Marine, Heavy, Earthmoving

C ontractor: QAP P roject: Chefornak Airport Relocation

A ward: Meeting the Challenge of a Job, Under $3,000,000 Transportation, Marine, Heavy, Earthmoving

C ontractor: Granite Construction Co. P roject: Lake Hood Bank

Stabilization Project

A ward: Excellence in Construction Award for a Specialty Contractor: Vertical Construction with Specialty Contractor as Prime Contractor

Contractor: Superior Plumbing & Heating P roject: D/B Solution to Replace Heating

System — AHFC


92 The Alaska conTrAcTor Spring 201392 The Alaska conTrAcTor Spring 2013

2012 Winners of AGc's Excellence in construction Awards2012 Winners of AGc's Excellence in construction Awards

Spring 2013 The Alaska conTrAcTor 93 Spring 2013 The Alaska conTrAcTor 93

photos: © ken grAhAM photogrAphY.CoM

2012 Winners of AGc's Excellence in construction Awards

Excellence in Construction Award for a Specialty Contractor: Vertical Construction with Specialty Contractor as Sub-ContractorContractor: Superior Plumbing & HeatingProject: Goose Creek Correctional Center

A cohesive team from Superior Plumbing & Heating helped deliver the massive 435,000-square-foot Goose Creek Correctional Center on time and under budget. With seamless workfl ow from design through construction, the demands of multiple mechanical systems for the multi-building facility were met effi ciently with exceptional quality. More than 75 dedicated mechanical tradespeople produced a top notch mechanical system in a remote location that is self-sustaining and energy effi cient. The new facility enables Alaska to keep inmates near home where family visits can occur and their rehabilitation and skill development will be enhanced.


Meeting the Challenge of a Job, Between $5,000,000 and $15,000,000 Vertical ConstructionContractor: Roger Hickel Contracting Inc. Project: APU Glenn Olds Hall Expansion

The United States Geological Survey, Alaska Pacifi c University and Roger Hickel Contracting teamed for a second time in 2011 to design and construct a 21,500-square-foot addition to the existing Glen Olds Hall on the APU campus for use by USGS. Meeting USGS’ criteria created physical challenges with the building and the site. The largest design challenges were to directly connect the addition to the existing building and to blend the addition into the existing building appearance.


2012 Winners of AGc's Excellence in construction Awards


photos: CourtesY of roger hiCkel ContrACting inC.

http://www.equipmentsourceinc.com

http://www.kubota.com




2012 Winners of AGc's Excellence in construction AwardsSustainability in Construction AwardContractor: STG Inc.Project: Kotzebue Wind Farm Expansion

Completed during the spring of 2012, the Kotzebue Wind Farm Expansion project involved the installation of two, 900 kilowatt wind turbines on 75 meter towers in Kotzebue. Project activities were completed by STG Incorporated (STG) for Kotzebue Electric Association (KEA) over one year and involved the oversight of logistics, foundation installation, turbine erection and overall project management and design/build responsibilities. The installation approximately tripled the generation capacity of KEA’s existing wind farm and was constructed as a means to reduce diesel fuel consumption at the utility along with the overall cost of electricity for KEA’s customers.

photos: CourtesY of stg inC.


GENERAL CONTRACTORSILIAMNA DEVELOPMENT CORPORATIONSteve Reimers – General Manager3 201 C St., Suite 406Anchorage, AK 99503-3967

Phone: 907-677-9565Fax: 907-677-9571Email: [email protected], trucking, fuel distribution SONS INC. dba ALASKA GROUNDWORKSDick Olson – Owner5 46 Old Steese Highway NorthFairbanks, AK 99712-2301

Phone: 907-378-4433Fax: 907-457-7773

Email: [email protected], landclearing, water well services, sewer pumping and thawing

SPECIALTY CONTRACTORSMUNRO ENTERPRISES INC.Daren Munro – President/OwnerP .O. Box 230830Anchorage, AK 99523-0830

Phone: 907-440-4444Fax: 907-277-6155Email: [email protected] transportation, trucking, gravel, dirt, snow hauling and removalR ecruited by: Matt McKenna,

McKenna Brothers Paving

HANSON SURVEYING & MAPPING LLCCraig Hanson, Sonna Hanson305 E. Fireweed Ave.Palmer, AK 99645-6625Phone: 907-746-7738Fax: 907-746-7739Email: [email protected] surveys, control surveys, construction grade management

ENDEAVOR ELECTRIC LLCJesse Hale – General ManagerP.O. Box 102002Anchorage, AK 99510-2002Phone: 907-279-1002Fax: 907-249-1003Email: [email protected] contractor

Welcome new AGC Membersfrom January to March 2013

Welcome new AGC MembersWelcome new AGC Membersfrom January to March 2013from January to March 2013

Rea

d us

onl

ine!

Links to the electronic versions of the current and archive issues of The

Alaska Contractor magazine are online at agcak.org under “News and Media” tab or at AQPpublishing.com

under “Business” publications.





http://www.fairbanksmaterials.com


http://www.aes-electric.com


CUT ABOVE CONTRACTING INC. dba ALASKAN COUNTER FITTERSMark Flint and Valerie Flint1 530 Hans WayFairbanks, AK 99709-2636

Phone: 907-455-0247Fax: 907-455-0248Email: [email protected] and installation of solid surface countertops

ASSOCIATE CONTRACTORSE3 ENVIRONMENTAL LLCRosetta Alcantra – General Manager, T raci Bradford – Environmental

Engineer3 01 Calista Court, Suite AAnchorage, AK 99518-3000

Phone: 907-644-6328Fax: 907-272-5060Email: [email protected] consulting services, permitting, community involvement

ASD CAREER TECHNOLOGY EDUCATION DEPARTMENTKris Forrester – CTE Director Anchorage School District5 530 E. Northern Lights Blvd.Anchorage, AK 99504-3135

Phone: 907-742-3783Email: [email protected] development, Anchorage Construction Academy ASSOCIATION OF VILLAGE COUNCIL PRESIDENTSMarc Stemp – Vice PresidentP .O. Box 219Bethel, AK 99559

Phone: 907-543-7306Toll Free: 800-478-3521Fax: 907-543-3369Email: [email protected]: www.avcp.orgRural Alaska transportation development WORKING CLASS HEROS SAFETY AND HEALTH SERVICES LLCDanny Thiemens – President5504 N. AdamsSpokane, WA 99205-6756Phone: 509-435-6343Email: [email protected] safety training and certifi cation DORSEY & WHITNEY LLPTraeger Machetanz1031 W. Fourth Ave., Suite 600Anchorage, AK 99501-5907Phone: 907-276-4557Fax: 907-276-4152Email: [email protected] fi rm SH ALASKA LLCSueLynn Hight3191 N. Parkview CircleWasilla, AK 99654-4304Phone: 907-357-4847Fax: 907-357-4846Email: [email protected] and occupational health consulting and trainingRecruited by: Trent Larson, Unit Company

SPECIALTY CONTRACTORS continued





http://www.avcp.org




http://mayfieldscleaners.com


AGC SpringBoard Meeting April 18–19 in Fairbanks

AGC Spring Sports Train April 27 in Anchorage

AGC Golf Tournament June 21 in Anchorage

AGC ExecutiveBoard MeetingJuly 11 in Fairbanks

AGC Golf Scramble July 12 in Fairbanks

AGC SportingClays ShootAug. 23 in Anchorage

AGC Chili Cook-Off Oct. 2 in Anchorage

AGC Annual Conference Nov. 13–16 in Anchorage

AGC Annual Board & Membership MeetingNov. 15–16 in Anchorage

AGC ExecutiveBoard MeetingDec. 11 in Anchorage

AGC MembersChristmas Open HouseDec. 11 in AnchorageDec. 12 in Fairbanks

AGC Bowl-A-ThonJan. 25, 2014 in Fairbanks

AGC of Alaska2013 Calendar

http://www.crpipesteel.net

http://mappatestlab.com

http://www.digital-blueprint.com



http://fountainheadhotels.com

Documents

The Alaska Contractor - Spring 2013