09/08/2011 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB110 | |
| Hearing: North Slope Employment and Alaska Hire | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 110 | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
Anchorage, AK
September 8, 2011
1:36 p.m.
MEMBERS PRESENT
Senator Dennis Egan, Chair
Senator Joe Paskvan, Vice Chair
Senator Linda Menard
Senator Bettye Davis
Senator Cathy Giessel
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Gary Stevens
Senator Joe Thomas
Senator Fred Dyson
Representative Carl Gatto
Representative Les Gara
Representative Kurt Olson
Representative Mike Hawker
Representative Dan Saddler
Representative Mike Doogan
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 110(FIN)
"An Act relating to the interest rate applicable to certain
amounts due for fees, taxes, and payments made and property
delivered to the Department of Revenue; relating to the oil and
gas production tax rate; relating to monthly installment
payments of the oil and gas production tax; relating to oil and
gas production tax credits, including qualified capital credits
for exploration, development, and production; relating to
certain additional nontransferable oil and gas production tax
credits; relating to the disclosure of certain tax information;
making conforming amendments; and providing for an effective
date."
- HEARD AND HELD
Hearing: North Slope Employment and Alaska Hire
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 110
SHORT TITLE: PRODUCTION TAX ON OIL AND GAS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/18/11 (H) READ THE FIRST TIME - REFERRALS
01/18/11 (H) RES, FIN
02/07/11 (H) RES AT 1:00 PM BARNES 124
02/07/11 (H) Heard & Held
02/07/11 (H) MINUTE(RES)
02/21/11 (H) RES AT 1:00 PM BARNES 124
02/21/11 (H) Heard & Held
02/21/11 (H) MINUTE(RES)
02/21/11 (H) RES AT 5:15 PM BARNES 124
02/21/11 (H) Heard & Held
02/21/11 (H) MINUTE(RES)
02/23/11 (H) RES AT 1:00 PM BARNES 124
02/23/11 (H) Heard & Held
02/23/11 (H) MINUTE(RES)
02/25/11 (H) RES AT 1:00 PM BARNES 124
02/25/11 (H) Heard & Held
02/25/11 (H) MINUTE(RES)
02/28/11 (H) RES AT 1:00 PM HOUSE FINANCE 519
02/28/11 (H) Moved CSHB 110(RES) Out of Committee
02/28/11 (H) MINUTE(RES)
03/07/11 (H) RES RPT CS(RES) NT 1DP 2DNP 4NR 2AM
03/07/11 (H) DP: FEIGE
03/07/11 (H) DNP: GARDNER, KAWASAKI
03/07/11 (H) NR: FOSTER, MUNOZ, DICK, HERRON
03/07/11 (H) AM: P.WILSON, SEATON
03/14/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/14/11 (H) Heard & Held
03/14/11 (H) MINUTE(FIN)
03/15/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/15/11 (H) Heard & Held
03/15/11 (H) MINUTE(FIN)
03/15/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/15/11 (H) Dept. of Revenue continued
03/16/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/16/11 (H) Heard & Held
03/16/11 (H) MINUTE(FIN)
03/16/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/16/11 (H) Heard & Held
03/16/11 (H) MINUTE(FIN)
03/17/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/17/11 (H) Heard & Held
03/17/11 (H) MINUTE(FIN)
03/17/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/17/11 (H) Heard & Held
03/17/11 (H) MINUTE(FIN)
03/18/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/18/11 (H) Heard & Held
03/18/11 (H) MINUTE(FIN)
03/21/11 (H) FIN AT 9:00 AM Anch LIO Rm 220
03/21/11 (H) Heard & Held
03/21/11 (H) MINUTE(FIN)
03/21/11 (H) FIN AT 1:00 PM Anch LIO Rm 220
03/21/11 (H) Heard & Held
03/21/11 (H) MINUTE(FIN)
03/23/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/23/11 (H) Heard & Held
03/23/11 (H) MINUTE(FIN)
03/23/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/23/11 (H) Heard & Held
03/23/11 (H) MINUTE(FIN)
03/24/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/24/11 (H) Heard & Held
03/24/11 (H) MINUTE(FIN)
03/24/11 (H) FIN AT 5:00 PM HOUSE FINANCE 519
03/24/11 (H) Heard & Held
03/24/11 (H) MINUTE(FIN)
03/25/11 (H) FIN AT 8:00 AM HOUSE FINANCE 519
03/25/11 (H) Heard & Held
03/25/11 (H) MINUTE(FIN)
03/25/11 (H) FIN AT 3:00 PM HOUSE FINANCE 519
03/25/11 (H) Heard & Held
03/25/11 (H) MINUTE(FIN)
03/26/11 (H) FIN AT 10:00 AM HOUSE FINANCE 519
03/26/11 (H) Heard & Held
03/26/11 (H) MINUTE(FIN)
03/28/11 (H) FIN AT 8:30 AM HOUSE FINANCE 519
03/28/11 (H) Bills Previously Heard/Scheduled
03/28/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/28/11 (H) Heard & Held
03/28/11 (H) MINUTE(FIN)
03/29/11 (H) FIN AT 10:00 AM HOUSE FINANCE 519
03/29/11 (H) Bills Previously Heard/Scheduled
03/29/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/29/11 (H) Moved CSHB 110(FIN) Out of Committee
03/29/11 (H) MINUTE(FIN)
03/30/11 (H) FIN RPT CS(FIN) NT 6DP 3DNP 2NR
03/30/11 (H) DP: T.WILSON, FAIRCLOUGH, HAWKER,
COSTELLO, STOLTZE, THOMAS
03/30/11 (H) DNP: GUTTENBERG, GARA, DOOGAN
03/30/11 (H) NR: JOULE, EDGMON
03/31/11 (H) BEFORE THE HOUSE
04/01/11 (H) TRANSMITTED TO (S)
04/01/11 (H) VERSION: CSHB 110(FIN)
04/04/11 (S) READ THE FIRST TIME - REFERRALS
04/04/11 (S) L&C, RES, FIN
04/08/11 (S) L&C AT 2:30 PM FAHRENKAMP 203
04/08/11 (S) Heard & Held
04/08/11 (S) MINUTE(L&C)
04/11/11 (S) L&C AT 6:00 PM BUTROVICH 205
04/11/11 (S) Heard & Held
04/11/11 (S) MINUTE(L&C)
09/06/11 (S) L&C AT 1:30 PM FAIRBANKS
09/06/11 (S) Heard & Held
09/06/11 (S) MINUTE(L&C)
09/08/11 (S) L&C AT 1:30 PM Anch LIO
WITNESS REGISTER
MARK HYLEN, Owner
Beacon Occupational Health and Safety Services
Anchorage, AK
POSITION STATEMENT: Testified that his company does not have a
specific Alaska-hire policy, but he tries to hire as many
Alaskans as possible.
BILL HURLEY, Senior Human Resource Business Partner
ConocoPhillips Alaska
Anchorage, AK
POSITION STATEMENT: Testified that ConocoPhillips is committed
to workforce development in Alaska and is proud that it has one
on the highest residency rates in the industry.
DOUG SMITH, President and CEO
Little Red Services
Anchorage, AK
POSITION STATEMENT: Testified that his company's Alaska-hire
policy is to evaluate all candidates and to give preferential
hire to a qualified Alaskan that meets all the criteria.
STEVE PERCY, President
Alaska Interstate Construction (AIC)
Anchorage, AK
POSITION STATEMENT: Described the efforts his company made to
provide year around employment for employees and his efforts to
hire Alaska residents.
DAVE MCALLEN, Statewide Training Director
Alaska Joint Electrical Apprenticeship, IBEW/NECA
Anchorage, AK
POSITION STATEMENT: Described the IBEW/NECA apprenticeship
training programs and stated his belief that too many jobs are
being filled by nonresidents.
VINCE BELTRAMI, President
AFL-CIO
Anchorage, AK
POSITION STATEMENT: Observed that differing methodology is at
the core of the issue of what constitutes an Alaska resident.
His perspective is that the simplest way to ensure high Alaska
hire rates in the oilfields is to rely on the unions.
OSWALD JENSEN, representing himself
Anchorage, AK
POSITION STATEMENT: Described how non-Alaskan contractors vouch
for other nonresidents to get their buddies hired.
TREVOR O'HARA, representing himself
Anchorage, AK
POSITION STATEMENT: Provided a personal account of the
opportunity he has to target, train, and hire Alaskans,
particularly from rural Alaska.
TOM MALONEY, Board President
Resource Development Council (RDC)
Anchorage, AK
POSITION STATEMENT: Urged the Legislature to focus on public
policy to encourage new investment in production, which will
result in additional Alaska hiring opportunities.
BRENDON HOPKINS, representing himself
Soldotna, AK
POSITION STATEMENT: Encouraged the committee not to impose
specific restrictions on where employees live in their time off
and instead support career-driven programs like APICC.
BARBARA BACHMEIER, representing herself
Anchorage, AK
POSITION STATEMENT: Observed that Alaska-hire recruitment
efforts did not appear to include military service members and
veterans and that excluding this valuable and readily available
asset is a problem.
GINGER KING, representing herself
Anchorage, AK
POSITION STATEMENT: Stated that in her experience the oil
industry is very open to Alaska hire and that most support
positions in Anchorage are residents.
DAN ANDERSON, representing himself
Anchorage, AK
POSITION STATEMENT: Testified that the Alaska hire problem is on
the North Slope; the support positions in town are largely
filled by residents.
RACHEL PETRO, President and CEO
Alaska Chamber of Commerce
Anchorage, AK
POSITION STATEMENT: Testified that the Alaska Chamber generally
supports Alaska hire, but more importantly it supports economic
development.
CHARLES MCKEE, representing himself
Anchorage, AK
POSITION STATEMENT: Testified that his experience with hiring
practices in the oil industry is that many base-level jobs are
filled by nonresidents
REBECCA LOGAN, General Manager
Alaska Support Industry Alliance ("Alliance")
Anchorage, AK
POSITION STATEMENT: Testified that Alliance data shows an 86
percent Alaska hire rate.
MIKE KENNY, representing himself
Anchorage, AK
POSITION STATEMENT: Warned the committee about trusting data
that shows that a lot of North Slope workers are Alaskans.
PAUL D. KENDALL, representing himself
Anchorage, AK
POSITION STATEMENT: Discussed the upcoming changes in energy and
suggested the committee listen to engineers to figure out some
direction.
ED HANSEN, representing himself
Anchorage, AK
POSITION STATEMENT: Stated that he was listening on behalf of
the Governor.
DOLLY NORTON, President and CEO
Cully Corporation
Point Lay, AK
POSITION STATEMENT: Described the nonresident hiring practices
she witnessed on the North Slope and urged the committee to
support hiring Alaskan residents, Alaskans who live off the
land, and young Alaskans.
RUSSELL SNYDER, representing himself
Anchorage, AK
POSITION STATEMENT: Testified that he has worked on the North
Slope for six years and has seen that resident-hire numbers are
fudged.
DEBORAH BROLLINI, representing herself
Anchorage, AK
POSITION STATEMENT: Urged the committee to think several
generations ahead when it makes decisions.
AVES THOMPSON, Executive Director
Alaska Trucking Association (ATA)
Anchorage, AK
POSITION STATEMENT: Testified that ATA supports local hire but
it seems counterproductive to try to develop a new legislatively
engineered local-hire plan.
HAL GAZAWAY, representing himself
Anchorage, AK
POSITION STATEMENT: Supported waiting to see what the McDowell
report shows before making any decisions.
RAY METCALFE, representing himself
Anchorage, AK
POSITION STATEMENT: Testified that local hire on the North Slope
would increase if there was a stronger union presence and if
preference was given to those unions that successfully
negotiated a return to short rotation work schedules.
LYNETTE BARTOWSKI, representing herself
Anchorage, AK
POSITION STATEMENT: Challenged the committee to look at DMV
statutes and to broaden the questions to hiring companies as to
whether the physical address on the driver's license is where
the person lives fulltime.
CAROLYN P. BOLAR, representing herself
Anchorage, AK
POSITION STATEMENT: Commented on why ACES passed and pointed out
that the oil companies are just contractors and should be
treated as such.
WINNIE OUTWATER, representing herself
Wasilla, AK
POSITION STATEMENT: Stated support for a stronger union presence
on the North Slope because clauses in union bylaws allow
preferential hire.
ACTION NARRATIVE
1:36:06 PM
CHAIR DENNIS EGAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:36 p.m. Present at the call to
order were Senators Giessel, Paskvan, Menard, and Chair Egan.
Senator Davis arrived during the course of the meeting. Also
attending the meeting were Senators Stevens, Thomas, and Dyson;
and Representatives Gatto, Gara, Olson, Hawker, Saddler, and
Doogan.
1:37:05 PM
HB 110-PRODUCTION TAX ON OIL AND GAS
^HEARING: NORTH SLOPE EMPLOYMENT AND ALASKA HIRE
HEARING: NORTH SLOPE EMPLOYMENT AND ALASKA HIRE
1:37:14 PM
CHAIR DENNIS EGAN announced the purpose of the meeting was to
gather information on Alaska hire, not the taxation portion of
HB 110. He reminded everyone that committees cannot take formal
action on legislation during the Interim.
CHAIR EGAN stated that while Department of Labor and Workforce
Development (DOLWD) statistics reveal that employment numbers on
the North Slope are at an all-time high, many qualified Alaskans
are unable to find employment in the oil industry. In an effort
to move forward, the committee started a process to learn more
about nonresident hiring practices in the oil industry. The
first hearing was held in Fairbanks two days ago. He related
that in earlier hearings the committee made the disturbing
observation that in 2010 more nonresidents than residents were
hired for new in-state jobs in the oil industry. The committee
also learned that some large North Slope construction companies
have hired 100 percent nonresidents.
CHAIR EGAN advised that the committee would hear invited
testimony from the oil industry this afternoon and testimony
from labor and the interested public this evening. Through this
process, he stated, the committee hopes to develop a more
complete picture of employment opportunities in the Alaska oil
industry and to work with industry to ensure more resident hire.
1:39:12 PM
MARK HYLEN, Owner, Beacon Occupational Health and Safety
Services ("Beacon"), briefly outlined his experience with the
oil industry, starting in 1991 when he worked on the North Slope
to pay for college. He said he is the current president of the
Alaska Support Industry Alliance ("Alliance") and he serves as a
board member for the Alaska Process Industry Careers Consortium
(APICC). He related that Beacon sees many North Slope new-hires
for physicals, drug and alcohol testing, and safety training.
Additionally, the company provides support in the field for year
around medical clinics, safety professionals, site control at
rig sites, and onsite training within the North Slope oilfields.
MR. HYLEN stated he would briefly respond to the three questions
the committee specifically asked him to address.
1) Does your company have a policy concerning hiring of Alaskan
workers?
MR. HYLEN explained that his company does not have a specific
Alaska-hire policy, but he certainly tries to hire as many
Alaskans as possible. Beacon defines an employee's residence by
his or her driver's license. These records are maintained and
verified annually.
2) What percentage of your workforce are current Alaskan
residents?
MR. HYLEN informed the committee that Beacon currently has 225
fulltime employees; 81 percent are considered Alaska residents
and 19 percent are nonresidents. The nonresidents reside in 23
different states. He explained that Beacon has had to recruit
outside Alaska to find the needed skill sets for its medical and
safety personnel.
3) Recent data from the Department of Labor and Workforce
Development (DOLWD) shows that just over half of all new hires
in the industry are from out of state. What efforts do you make
to find Alaskans to fill job openings in your company and how
successful have they been?
MR. HYLEN outlined Beacon's efforts to promote Alaska hire
including local advertising; job fair participation; internships
for students from the UAA occupational health and safety
program; externships for teachers to promote an understanding of
the industry and its job opportunities; and no reimbursement for
travel outside the state. He reiterated that the challenge for
Beacon, and the industry as a whole, is the need for specialized
personnel and the lack thereof in the Alaska workforce. For
example, Beacon primarily uses physician assistants (PAs) and
EMT-3s at its remote site clinics and these professionals are
required to have at least five years of remote experience. UAA
has just recently begun to offer a PA program and there simply
aren't enough qualified Alaskans to meet the demand. The same is
true for safety professionals; Alaska has just 80 registered
certified safety professions. Until Alaska has more medical and
safety professionals, it will be difficult for Beacon to achieve
a higher percentage of Alaska hire. Mr. Hylen noted that when he
was CEO at KAKIVIK he saw similar difficulty hiring specialized
inspectors.
MR. HYLEN said his perspective is that members of the Alliance
would prefer to recruit and hire locally and avoid incurring the
cost associated with bringing nonresidents to town only to find
that they can't pass the physical or drug test or they don't
have the training they claimed. He observed that APICC has
helped create process curriculums that are turning out students
with the skill sets needed on the North Slope. Operators and oil
field contractors that sit on the APICC board actively promote
internships and teacher externships to encourage interest in
potential careers in the oil industry.
MR. HYLEN questioned whether Beacon employees were being counted
in the DOLWD statistics because the numbers don't add up. In any
event, he said he has trouble understanding the correlation
between resident hire and creating more jobs in the oil industry
because, nonresident hire is clearly part of the fishing,
tourism, construction, and healthcare industries. New job
opportunities in the oil industry will result from increased
throughput in the pipeline. The Alaska oil industry is clearly
missing the economic boom that other oil provinces are
experiencing, he stated.
MR. HYLEN noted that the Alliance's general manager recently
returned from Norway where she studied oil and gas exploration
and production. She reported the following: Norway has 72 fields
in production while Alaska has 8; Norway produces 2 million
barrels/day while Alaska produces fewer than 600,000
barrels/day; and Norway has 230,000 people working in the oil
and gas industry, and the unemployment rate is 3 percent.
Obviously, he said, production leads to jobs and Alaska needs
more oil in the pipeline.
1:45:26 PM
SENATOR GIESSEL said she's a nurse practitioner and she's
observed that many of the nurse practitioners and PAs who serve
in both rural Alaska and in Anchorage choose to stay in Alaska
after they were hired from out-of-state, and they are providing
specialty services that wouldn't otherwise be available. She
asked if any of Beacon's out-of-state employees had decided to
stay in Alaska and become residents.
MR. HYLEN replied it works both ways. After working remotely for
a number of years some employees stay and others decide to live
somewhere else during their time off. It's difficult for a
company to deter that, he said.
SENATOR MENARD asked how many years of training it takes to
become a certified safety professional.
MR. HYLEN explained that there are two ways to obtain
certification: one is based on a certain number of years of
education and experience before sitting for the test, and the
other is a bachelor program in safety that waives the experience
required to sit for the test. In both cases it's necessary to
have a sponsor who is a safety professional. He related that
Beacon paid for a teacher externship where a high school teacher
worked on the North Slope, in town, and at Beacon's training
facility in Kenai so he could go back and tell students about
relevant job opportunities in the medical and safety fields.
SENATOR PASKVAN asked if he'd heard from qualified Alaskans who
are upset because nonresidents were being hired to fill
available jobs on the North Slope.
MR. HYLEN answered no, but perhaps that's because the Alliance
membership is composed of Native corporations, Alaska
businesses, and union and nonunion organizations. He added that
it depends on the type of business because there are certain
areas of the oil and gas industry that don't have work right
now.
SENATOR PASKVAN asked if that type of work is cyclical.
MR. HYLEN replied it's cyclical with project timelines.
1:50:06 PM
SENATOR STEVENS remarked that he was unfamiliar with the term
"externship."
MR. HYLEN explained that the Alaska Process Industry Careers
Consortium (APICC) started an externship program several years
ago. Industry solicits teachers that have an interest in
learning more about the oil industry and how it might apply to
educating students. The teacher learns about career
opportunities in the industry and then promotes them in the
classroom.
REPRESENTATIVE GATTO asked what percent of Alaskans qualify for
North Slope jobs but fail the drug test.
MR. HYLEN replied he couldn't break it out for Alaskans, but the
national average is about four percent.
CHAIR EGAN recognized that Representative Saddler joined the
committee
REPRESENTATIVE GARA asked if the Alliance had a policy to
educate its members to hire Alaskans who are qualified for North
Slope jobs.
MR. HYLEN replied there were discussions about how to better
position Alliance member companies for work within the oil and
gas industry, but there was no policy. Now when memberships are
renewed the Alliance gathers information about the total number
of employees and Alaska resident hire percentages. The Alliance
has also done outreach to the oil companies to talk about how to
better position Alliance member companies for work within the
industry.
1:54:22 PM
BILL HURLEY, Senior Human Resource Business Partner,
ConocoPhillips Alaska, said he's been an Alaska resident for 15
years and he appreciates the opportunity to talk about workforce
development. ConocoPhillips is committed to workforce
development in Alaska and is proud that it has one on the
highest residency rates in the industry, he stated. Over the
last decade the rate has ranged from 87-92 percent and it
currently stands at about 88 percent. In 2011 about 83 percent
were hired from within Alaska and about 90 percent of those call
Alaska their home.
MR. HURLEY stated that ConocoPhillips supports the University of
Alaska System in regard to workforce development. Interns and
new hires are recruited from the various campuses and over 100
UA graduates are currently employed within the company. Since
year 2000, ConocoPhillips has invested over $20 million in the
University of Alaska Foundation; a $15 million multi-year grant
was awarded to UAA in 2008 and a $500,000 grant was awarded to
UAF in 2011.
MR. HURLEY reported that ConocoPhillips supports the Alaska
Process Industry Career Consortium (APICC) by hiring interns as
regular hires; it participates in the teacher externship
program; it supports the Alaska Native Science and Engineering
Program (ANSEP) through the bridge program and with financial
contributions; it conducts outreach to local schools with job
fairs and a networking forum; and it works with various
departments within the state, labor organizations, and private
industry to address workforce development. He highlighted the
pipeline training plan committee, the training center in
Fairbanks, the engineering program at Dimond High School, and
the new career and technical education plan that is a joint
effort by the departments of labor and education and the
university.
MR. HURLEY stated that when ConocoPhillips has external
postings, it has a practice of conducting additional outreach
within Alaska that includes advertising in local newspapers and
postings in more than 20 Alaska job centers.
1:59:18 PM
MR. HURLEY explained that ConocoPhillips has a local sourcing
strategy with regard to contractor services. In 2010, 86 percent
of the money that was spent on goods, services, and
transportation flowed through Alaska-based companies. He
highlighted support for Arctic Slope Regional Corporation
(ASRC), Doyon, Nabors, Halliburton, and Kupik. In short,
ConocoPhillips is committed to ensuring a competitive, diverse,
and sustainable supplier base for its Alaska operations.
MR. HURLEY stated that ConocoPhillips believes that the key to
more opportunities for Alaskans is to create more jobs.
Modifying ACES would do this.
2:01:18 PM
SENATOR MENARD asked how many students can enroll in the
Fairbanks training facility.
MR. HURLEY offered to follow up and provide the information.
SENATOR PASKVAN asked if ConocoPhillips collects information
from its subcontractors regarding nonresident hire issues and if
that's a factor in ConocoPhillips doing business with that
entity.
MR. HURLEY replied that information is collected from their top
contractors and it's included in the company's annual report to
Alaskans. He reiterated that an Alaska presence is a factor when
ConocoPhillips determines who can bid on their contracts.
SENATOR PASKVAN asked if ConocoPhillips hired any of the
subcontractors that are reported to have 100 percent nonresident
hire and what jobs Alaskans presumably can't fill.
MR. HURLEY replied he isn't aware that ConocoPhillips has any
involvement on the North Slope with those companies.
SENATOR PASKVAN asked what type of work those companies are
performing.
MR. HURLEY replied he wasn't sure but he would follow up.
2:04:43 PM
SENATOR GIESSEL referred to a workforce residency graph that
Alaska Oil and Gas Association (AOGA) developed using Alaska
DOLWD data. It shows that Alaska hire increased over the last
several years while nonresident hire remained stable. She asked
if some of the 83 percent of ConocoPhillips employees that were
hired from within Alaska were nonresident students who decided
to stay in Alaska.
MR. HURLEY answered yes.
CHAIR EGAN recognized that Senator Dyson was in the audience.
2:06:50 PM
CLAIRE FITZPATRICK, Chief Financial Officer, BP in Alaska,
thanked the committee for the opportunity to address the
questions the committee outlined in its letter regarding Alaska
hire. She said BP thinks about this from three aspects and
believes that these will address the questions. The first is in
respect to BP employees; the second is how BP supports the
development and training of qualified people; and third is what
BP can do to influence what their contractors are doing in the
area of Alaska hire.
MS. FITZPATRICK stated that BP will always hire the best
candidate for the job, but their preference is to hire qualified
Alaskans. This makes good business sense. BP believes that the
best way to increase the number of Alaskans working in the oil
industry is to increase the level of oilfield activity thereby
increasing the number and availability of oilfield jobs. She
informed the committee that BP's record during the last five
years shows that it has consistently employed 80 percent
Alaskans in its greater than 2,000 person workforce. BP defines
residency as having a primary residence in Alaska and the intent
to stay. This is demonstrated by eligibility for the Permanent
Fund Dividend (PFD), voter registration, vehicle registration,
as well as annual employee certification as to residency. BP
sends a report of its Alaska hire percentages to the Alaska
Department of Labor and Workforce Development each year, and it
publishes the Alaska Hire Report that describes recruiting,
training, and purchasing initiatives. They also report hiring
statistics from some of their largest contractors.
MS. FITZPATRICK informed the committee that in an effort to have
a pool of trained Alaska residents for the workforce BP has
invested nearly $21 million to develop Alaska education and
workforce programs over the last five years. BP has supported
the University of Alaska's Alaska Native Science and Engineering
Program (ANSEP) since inception and now underwrites the summer
bridge program. BP was a founding member of the Alaska Process
Industry Careers Consortium (APICC) and in the last five years
has supported the program with donations and scholarships
totaling more than $900,000. Next week BP will dedicate a
working wellhead to the University of Alaska Fairbanks (UAF)
Process Technology College for student training. BP also
supports the Alaska Association of Secondary School Principals.
Through a program introduced 26 years ago, BP has awarded
scholarships to 650 worthy Alaska seniors, regardless of their
field of study. These workforce development investments have
worked. In the last 10 years BP has hired 275 workers from the
technology programs at the University of Alaska campuses in
Kenai, Anchorage, and Fairbanks. This year Alaskans accounted
for 100 percent of the recruitment for certain process
technology jobs. In the last five years the University of Alaska
System was among BP in America's top five colleges for
recruitment for interns and graduates. This is the result of the
university building exceptional programs with support from
partners like BP.
MS. FITZPATRICK said BP is always looking for qualified and
experienced individuals. For example, when the Agrium plant in
Kenai closed BP actively recruited and brought on 10 Alaskans to
fill experienced jobs on the North Slope. BP advertises in both
the Alaska Job Bank and nationally when recruiting experienced
employees, but the preference is to hire Alaskans because they
are committed to the state and tend to stay. They've actually
discovered they have better success in retaining employees in
Alaska if they were either educated or born in the state.
Furthermore, it's much more cost-effective to hire locally.
MS. FITZPATRICK stated that BP sometimes has to look outside
Alaska to find qualified individuals. Similarly, qualified
Alaskans sometimes are transferred elsewhere to fill jobs within
the company. Each year about 60 BP employees transfer in and out
but those transferring in are offered strong incentives to stay.
These include a special relocation policy and an Alaska salary
premium. She added that BP's transportation policy is that
employees who are on rotation and choose to live out of state
must provide their own transportation to Anchorage or Fairbanks
for rotation. The exception to this policy affects eight
employees who are members of a specialized global team that the
company moves from field to field as needed.
MS. FITZPATRICK said that BP is continuing to look at their role
in helping to influence their contractors with regard to Alaska
hire. Earlier this year BP President John Minge met with DOLWD
Commissioner Bishop to talk about workforce development and
Alaska hire. It's a priority for the industry. She noted that
the commissioner sent letters to a number of businesses raising
the issue of Alaska hire and BP was disappointed to learn that
some did not respond effectively. As a result, BP is in the
process of sending letters to its top contractors to make it
clear that Alaska hire is important to BP and the state and
encouraging timely response to these types of requests. Alaska
hire language is a standard contract provision, and BP's
contractors are required to make reasonable efforts to employ
Alaska residents, subcontract to Alaska-owned businesses, and to
post job openings in Barrow when there are opportunities for
North Slope positions. BP's bid packages have always included
safety, quality, and total cost, and in the future Alaska hire
will become part of the decision process in awarding contracts.
Contractors will be asked to provide specific Alaska hire data
to support their bid package.
MS. FITZPATRICK stated that BP is looking for ways to increase
opportunities for organized labor in the belief that increased
competitive bidding will result in efficiencies for the
business. Unbundling some of the work will provide competitive
opportunities for more companies. The leaders of the major trade
unions and their North Slope contractors have made it clear that
they'd like a shot at year around work on the North Slope, and
BP is committed to give them a chance to compete. This dialog
continues, but three packages will be ready in the next couple
of months. BP will continue to select the proposal with the best
safety, quality, and price, but it recognizes the long-term
value of Alaskans and Alaska companies working on the North
Slope and other locations in the state. She concluded that with
the right combination of investment, human resources, and
competitive tax environment, Alaska industry and the North Slope
oil fields can continue to provide training and jobs for
Alaskans.
2:16:41 PM
SENATOR PASKVAN asked what type of work the subcontractors that
had 100 percent nonresident employees were performing and if
there were Alaskan contractors that could perform that work. If
qualified Alaskans were available, he questioned why they
weren't doing the work.
MS. FITZPATRICK replied she could provide an example. She
explained that BP has hired a highly specialized team of about
200 people to work for 4-8 weeks in the peak season. This
particular company specializes in this activity, and they move
that team around the U.S. and perhaps internationally. If an
Alaska company met the qualifications and was able to seasonally
provide that quality of skill set for that particular activity,
BP wouldn't look outside the state, she said.
SENATOR PASKVAN observed that the committee was looking at the
issue of Alaska hire in part because of the April 2011 Alaska
DOLWD report that indicates that there are about 3,000
nonresident workers on the North Slope. He questioned why
Alaskans weren't working those jobs.
MS. FITZPATRICK replied she only knows the specifics of the
specialized turnaround crew she described earlier. She added
that right now BP has less than 1,000 employees on the North
Slope.
SENATOR PASKVAN said his focus is on first, second, and third
tier contractors and subcontractors to find out why so many of
those positions are occupied by nonresident workers.
MS. FITZPATRICK responded that she couldn't comment on anyone
else's hiring policies.
SENATOR PASKVAN said he hopes that BP follows through and makes
Alaska hire part of its criteria for hiring contractors and
subcontractors.
MS. FITZPATRICK responded that in light of her testimony today,
she anticipates that the committee will follow up in six months
to ask how BP is doing.
SENATOR MENARD asked what kind of work the specialty team
performed.
MS. FITZPATRICK replied it does technical engineering related to
start up and shut down of BP's large facilities on the North
Slope. She reiterated that BP has struggled with accessing this
skillset for a short period of time during the peak season.
SENATOR GIESSEL asked Ms. Fitzpatrick to clarify her earlier
comment about union contractors that did not meet the Alaska
hire standard.
MS. FITZPATRICK clarified that she was talking about a
conversation in which the unions expressed frustration that BP
wasn't doing as much as it could to give the unions a fair
chance to compete for certain aspects of work.
SENATOR GIESSEL asked if these companies were currently bidding
on BP jobs.
MS. FITZPATRICK replied the answer is yes in some cases and no
in others. In some instances it was that BP had bundled a number
of activities such that a particular union didn't have the range
of skills to bid on the bundle. BP has since agreed to unbundle
the activities to create a more level playing field and allow
more organizations to compete for the work.
SENATOR PASKVAN asked if she agrees with the assertion that
maintenance work is performed by lower skilled and lower paid
employees.
MS. FITZPATRICK said it would depend on what the maintenance is
because it can cover a broad range of skills. She offered to
follow up.
2:27:05 PM
DALE PITTMAN, Production Manager, ExxonMobil Alaska ("Exxon"),
said he's lived in Alaska for two years and his current job is
to oversee the company's interests statewide including the
ongoing development of Point Thomson. He thanked the committee
for the opportunity to discuss Exxon's local hiring practices.
MR. PITTMAN stated that Exxon has been a key player in the
development of Alaska's oil industry, having invested more than
$12 billion to date. As the unit operator at Point Thomson, he
said that over the last three years Exxon has taken an active
role in workforce development and local hiring to support the
project activities. In addition, Exxon acquired XTO Energy, a
company with a long history of hiring and developing local
talent.
He explained that the corporation's overall approach to
workforce development is based on a commitment to bring sound,
economic development opportunities to the region in which it
operates. The pursuit of these opportunities is based on three
key principles: 1) local hire, 2) training and development, and
3) long-term investment in education. The strategy for creating
local jobs includes a focus on educating and training local
employees, contractors and suppliers, transferring knowledge and
skills, purchasing local goods and services, and making
strategic investment in the local community.
MR. PITTMAN stated that Exxon has been and will continue to be a
strong proponent of local hire. However, in some regions it is
initially difficult to meet this objective due to an
insufficient pool of experienced candidates and limitations in
the local training infrastructure. In those cases Exxon builds
the programs to build the needed skills. He cited an example
from Sakhalin, Russia and related that Exxon invests over $100
million annually to support education worldwide.
2:31:33 PM
MR. PITTMAN reported that to date Exxon has spent about $1.5
billion in Alaska. In the last three years they've spent about
$700 million in direct investment to the state economy including
contracting with over 170 Alaska-based firms, all for Point
Thomson. Contractor costs account for 90 percent of what's been
spent on that project thus far, and the individual contracts
have specific provisions to maximize Alaska hire in all job
categories. Contractors must develop a local business
development plan, which is reviewed, approved, and monitored. On
the North Slope, Exxon also reached out to the village
corporations in Kaktovik and Nuiqsut to maximize their local
commerce and hire.
He explained that before the Point Thomson development, Exxon
traditionally maintained 30 Alaska-based employees in Anchorage.
That number grew to more than 180 with 75 percent residents, and
now that the first phase of drilling is complete it's dropped
back to about 100 people. The percentage of residents is now
over 80 percent. That percentage should increase substantially
as onsite construction resumes at Point Thomson, he said.
MR. PITTMAN informed the committee that Exxon built an
exceptional safety culture at Point Thomson by working with
local contractors to develop safety observation and intervention
programs. They held several forums focused on safety, health,
and environmental performance that included the contract of
senior management. The working environment is very safe, and
these Alaskan contractors can apply their skills in future
development at Point Thomson and other facilities in the state.
MR. PITTMAN stated that Exxon has addressed the educational
component of its strategy by making numerous investments in
Alaska education programs in the last few years. The long-term
focus is to prepare Alaska students to meet the ever increasing
technical challenges associated with resource development in
Alaska. The corporation is a founding sponsor of the
acceleration academy within ANSEP; it is a strong supporter of
the University of Alaska campuses and provides ongoing
assistance to the college in Barrow and other places on the
Slope; and it is actively evaluating Alaska's
vocational/technical schools and training facilities that will
become important centers for recruitment as Point Thomson moves
forward. Exxon will continue to work with these programs to
ensure that future graduates will have the necessary skills to
meet Exxon's future direct staffing needs. To the extent allowed
by law, Exxon will also continue to encourage its contractors
and suppliers to fully utilize the Alaska workforce.
MR. PITTMAN restated that Exxon is committed to bringing sound
economic development opportunities to the regions in which it
operates. It is Exxon's belief that it is aligned with the
state, particularly in regard to local hiring practices, which
is good business for the industry, the economy of the state, and
its residents.
2:35:35 PM
SENATOR PASKVAN asked if Alaska hire will be a factor in
ExxonMobil's decision-making going forward with regard to
employing contractors.
MR. PITTMAN assured him it will be a factor because it's their
global practice. The corporation takes a long view and believes
that contractors that are hired from out-of-state need to be
encouraged to become Alaskan and efforts must be made to find
Alaskans can provide the needed skill sets.
SENATOR PASKVAN pointed out that the Alaska DOLWD data shows
that the nonresident hire numbers have been increasing by about
200 per year. In the year 2000 about 1,100 nonresidents were
working on the North Slope and now about 3,000 nonresidents work
there. He asked how to stop that trend.
MR. PITTMAN responded that it's important to continue to invest
in the local workforce over the long term to ensure that the
positions and skills to meet them are available in the state.
SENATOR GIESSEL asked how often Alaskans are sent to other areas
to help out because of their expertise.
MR. PITTMAN replied Exxon has hired interns from the transition
program with ANSEP to work in operations outside the state, and
the hope and intent is that they will someday bring their skills
back to Alaska.
2:39:06 PM
DOUG SMITH, President and CEO, Little Red Services, informed the
committee that he has been in Alaska for 27 years and has worked
in the oil and gas industry for 20 years. He explained that
Little Red Services is a 25-year Alaska oilfield company that
provides specialty services on the North Slope and Cook Inlet.
The company originated in Alaska and now employs over 100
people. Their Alaska hire policy is to evaluate all candidates
and to give preferential hire to a qualified Alaskan that meets
all the criteria. The evaluation looks at qualifications, skill
and attitude. Safety excellence is expected, and providing
quality services to customers is required, so attitude is an
important component. The physical residence is verified with the
PFD and driver's license and the employee has to certify
annually as to their residency. There is no policy that
precludes an employee from moving out of the state after they
were hired.
Currently, 68 percent of Little Red Services' employees are
Alaska residents; 92 employees are Alaska residents, 44
employees are nonresidents residing in 15 states, primarily
Washington. Residency data is tracked every month through the
payroll system, and he'd very much like to have a 100 percent
Alaskan workforce. In the last ten years the percentage has
varied from 81 percent to the current low of 68 percent. In the
last year 22 employees left the company to pursue opportunities
in shale oil; 17 of those were residents.
MR. SMITH said they post job openings in trade journals,
newspapers and Craigslist, and he's always looking for other
avenues. He encouraged the members to look at the DOLWA ALEXsys
website to get a better feel for how difficult it is to even
become an authorized user in order to search for a job in the
state system. Furthermore, there isn't an industry cluster for
the oil and gas industry even though it's the state's primary
job base. Obviously, there's room for improvement, he said.
2:44:00 PM
MR. SMITH suggested the committee think about the broader issue
of Alaska hire, which is to bring more of the economy home. He
pointed out that the state employee healthcare plan, the
property and casualty insurance programs for the state, and the
University of Alaska insurance program are all managed out of
state by companies that have zero Alaska hire. There are
companies in Alaska that can do these services, so it's time to
look at the entire comprehensive aspect of growing the economy
here.
SENATOR PASKVAN said he liked his attitude and hopes that shale
oil comes to Alaska soon.
SENATOR GIESSEL said she was concerned to discover that 24
percent of the masters, pilots, and engineers that are employed
by the Alaska Marine Highway System are not Alaska residents,
yet they receive an Alaskan paycheck. She asked what his company
is doing to recruit young Alaskans.
MR. SMITH replied his most recent effort was to meet with the
owner of Northern Industrial Training (NIT) to discuss the cost
of the NIT courses, because some potential employees need
additional tanker and hazmat endorsements. He said he believes
that there are a lot of North Slope jobs that residents could
fill right now, but they need a little help to see the pathway
to get to those opportunities.
MR. SMITH further stated that as the industry chair for the
Alliance he talks to companies about hiring Alaska contractors
and Alaskans, and he recognizes that for Alaska companies to be
hired they have to be competitive. They can be competitive if
the volume of activity is sufficient to maintain the workforce
here year around. He said his company is working to solve
challenges to bring jobs back to Alaska.
2:48:53 PM
STEVE PERCY, President, Alaska Interstate Construction (AIC),
explained that AIC is a heavy civil contracting company that was
conceived, born, and raised on the North Slope 20 some years
ago. At that time the employment needs far exceeded the supply
of qualified Alaska workers, so many jobs were filled from out-
of-state. As the North Slope matured, AIC found that a lot of
its employees wanted to move to Alaska, but the company didn't
have much summer work, so it couldn't provide year around
employment. To address the issue AIC diversified into mining and
public works about ten years ago. In addition to providing year
around employment, the company also made additional efforts to
hire Alaska employees. He explained that AIC is a union
contractor so its truck drivers, mechanics, and laborers come
from the union hall. The company also has about 90 nonunion
staff, 85 percent of which are Alaska residents.
MR. PERCY related that in the last three years AIC has had
trouble keeping its large fleet of heavy equipment working
fulltime. He noted that the company probably has $20 million of
inventory in Prudhoe Bay. Last year their yard was full of
equipment most of the time, and the prospects for the 2011/2012
winter season are even bleaker. He said they understand that
there will always be peaks and valleys in this type of business,
but extended periods of idle time are not sustainable. For this
reason the company has recently made a strong push into northern
Alberta and hopes to have its equipment working there this
winter. He said his experience is that it's very difficult to
get equipment back once it's been removed.
For AIC to keep its equipment in Alaska, there needs to be more
capital improvement projects on the North Slope that require
heavy civil contracting work. He noted that in the last three
years AIC's employment statistics haven't declined too much
because the company is doing more labor-intensive projects that
require a lot of people, but not equipment. It may be time for
the company to diversify again in order to continue to
consistently work on Prudhoe Bay, he said.
2:54:51 PM
SENATOR MENARD asked if the Canadians are sensitive to non-
Canadian workers and contractors.
MR. PERCY replied Alberta is somewhat similar to Alaska 20 years
ago; there is so much activity there that workers are being
imported from everywhere.
SENATOR GIESSEL noted that a Canadian official reported that
22,000 new jobs were created in Alberta in just the month of
June. She asked if AIC is taking its Alaska employees when it
moves its equipment to Alberta.
MR. PERCY replied they will to the extent possible, but it's
difficult to get the craft across the border. He explained that
the supervisors can go across with a professional work visa, but
the craft doesn't qualify for that type of visa.
2:56:50 PM
DAVE MCALLEN, Statewide Training Director, Alaska Joint
Electrical Apprenticeship, IBEW/NECA, said he would speak from
the perspective of a trainer and educator and on behalf of the
Alaska Apprenticeship Training Coordinator Association (AATCA).
He explained that he's trained over 400 of the 2,000 individuals
that have been trained in AATCA apprenticeship programs, and
it's his belief that too many jobs are being filled by
nonresidents. Obviously, some specialized positions require
experience and knowledge that isn't available locally, but there
are many good jobs as welders, electricians, and plumbers that
Alaskans can and should fill. He said he's worked in the
oilfields and can attest that there are many nonresident workers
on the North Slope every day.
MR. MCALLEN explained that the program he directs is one of the
Joint Apprenticeship Training Committees (JATC) that comprises
AATCA. His particular JATC serves the more than 60 International
Brotherhood of Electrical Workers (IBEW) and National Electrical
Contractors Association (NECA) contractors and utilities across
the state. More than 400 apprentices are currently working
statewide in a 4-5 year program that is primarily paid for by
the self-funded training trust. An additional 482 applicants are
on a ready-to-go-to-work list, but new apprentices are signed
based on the work demands of the participating employers.
MR. MCALLEN said the NECA apprenticeship program has the
interest, class space, and resources to double the size of the
program if the demand for skilled workers were great enough. He
noted that many of the other crafts are in a similar position.
Because the training trust is self-funded, additional work
opportunities would provide increased contribution revenues to
grow the program.
MR. MCALLEN said that to assure true local hire, the
apprenticeship program requires applicants to have been Alaska
residents for at least one year. They recruit statewide and
partner with school districts and other organizations in the
belief that the local workforce, particularly kids just entering
the workforce, deserve a shot at these jobs. He noted that in
addition to the trade apprenticeships, the university system and
AVTEC are available to provide quality training and the skills
to provide a skilled and effective workforce. Let's ensure that
Alaskan workers are given the chance to fill these jobs, he
stated.
3:01:39 PM
SENATOR GIESSEL noted that the IBEW Local 1547 "2011 TRAVELERS
Report" shows that on 3/15/2011 one member from Local 292 and
one member from Local 46 were voted on by members of Local 1547.
She asked what that vote means other than to make them members
of Local 1547.
MR. MCALLEN clarified that while he is an IBEW member, he
doesn't work directly for the union; he represents the
apprenticeship that is 100 percent Alaskan. He continued to
explain that the union accepts travelers, who are nonresidents,
if local union members are not available to fill jobs. After a
period of time the traveler can apply to join the local union.
SENATOR GIESSEL directed attention to the Travel Committee
website for Local 25, which is in the state of New York, and
observed that the tenor is definitely recruitment of out-of-
state IBEW members to Alaska. She asked his impression.
MR. MCALLEN replied travelers come to Alaska every year, and
he's certain they occasionally work on the North Slope. He added
that it's counterproductive to the apprenticeship program, but
he does acknowledge that there's a lack of continuity of work in
the state.
SENATOR PASKVAN said the committee has consistently heard that
there are peaks and valleys to Alaska's employment cycle and
that the extraction process for shale oil is more labor
intensive. He asked what the IBEW and other trades are doing to
ensure that shale development can occur as quickly as possible
in Alaska.
MR. MCALLEN replied his job is to train electricians and his
program is ready and willing to expand to meet the job
opportunities.
3:08:12 PM
SENATOR GIESSEL observed that Shell Oil estimates that offshore
oil development will create 54,000 jobs over 50 years and that
the largest Community Development Quota (CDQ) groundfish company
wants to relocate its maintenance operations from Seattle to
Seward. She asked if the IBEW voices support for this kind of
private sector industry development.
MR. MCALLEN replied they're absolutely interested in
development; it's not a matter of union or nonunion.
3:10:00 PM
VINCE BELTRAMI, President, AFL-CIO, stated that the testimony
everyone heard two days ago in Fairbanks makes it nearly
impossible to have faith in either the methodology or the claims
of 75 percent or higher resident hire. He added that to hear
there's a sleeping facility being constructed at the airport in
Anchorage for oilfield workers to layover is an insult to those
who are trying to address this nonresident hire problem.
MR. BELTRAMI said that while the testimony on Tuesday from the
Alaska Oil and Gas Association (AOGA) representative was that
resident versus nonresident hire percentages have been stable
for a decade, a more historical snapshot shows a very different
picture. He pointed to the 1997 legislative audit report on
industry local hire and contracting, which showed that from
1991-1996 industry nonresident hire increased from 21 percent to
27 percent and remained flat through 2003. According to the AOGA
report, the nonresident hire percentage increased to more than
32 percent by 2005, which represents an 11 percent decrease in
resident hire between 1991 and 2005. The latest DOLWD report
shows that about 50 percent of all new hires are nonresidents.
MR. BELTRAMI observed that the issue of methodology is at the
core of what constitutes an Alaska resident. It's not clear
where and when workers are reported and how they're considered
in terms of job classifications. The anecdotal stories by
Alaskans working on the North Slope significantly contradict the
reported percentages, he said.
MR. BELTRAMI said he'd like to see more union and nonunion jobs
in Alaska, but his perspective is that the simplest way to
ensure Alaska hire in the oilfields is to rely on the unions.
Title 29, Chapter 7, Subchapter II of the National Labor
Relations Act allows unions to employ a local-hire preference
without the constitutional constraints that nonunion employers
typically face. Hiring more union-affiliated Alaska contractors
would immediately improve Alaska hire figures. Their methods for
assuring residency are stringent.
MR. BELTRAMI reported that most apprenticeship programs require
at least one year of bona fide Alaska residency. Also, union
apprentices comprise the bulk of apprentices registered in the
state and have completion rates that range from 70 percent to 90
percent.
MR. BELTRAMI said the bottom line is jobs for Alaskans and this
should be the first question to answer before going one step
further in considering what at this point he thinks can only be
referred to as a bill that gives the state's oil wealth away.
Presently many good jobs are being created in construction and
other civil work around the state due to the nearly $3 billion
annual capital project budgets coming out of Juneau. You can
count the number of Alaskans working on these jobs by reviewing
required certified payroll reports. State revenues that are
diverted out of the state coffer and into the hands of the oil
producers kill capital construction budgets and the associated
jobs. The only way that it doesn't eliminate jobs or reduce
future capital budgets is if you believe that allowing the
producers to retain more profit will result in more oil
production. Although, he said, there is absolutely nothing in
the history of these companies' years of producing and operating
in Alaska that can draw you to such a conclusion. Even at the
lowest historical tax rates, production did not increase.
MR. BELTRAMI said he understands the importance of the oil
industry to the financial health of the state, but he also
recognizes that these companies have a responsibility to their
corporate shareholders to maximize all potential profit. On the
other hand, legislators and the Governor have a responsibility
to the shareholders of Alaska's resource wealth. He said he's
made a living negotiating, and he finds it hard to understand
how one body of the Legislature could conceivably give away the
farm with no guarantees in return for giving that break.
MR. BELTRAMI observed that the Governor's recent press release
seemed to chastise the Senate with regard to this bill. He
opined that workers in the state should be insulted that the
Governor doesn't seem to think that Alaska hire is a core issue.
MR. BELTRAMI said it's no longer disputed that employment in the
oil industry is up, but some now contend that this up tic is
just maintenance jobs. This somehow suggests that maintenance
jobs are somehow less important than new exploration or
production, which is ridiculous. The goal is to increase
throughput in an aging infrastructure, so there are probably no
more critical jobs than maintenance. Unless future capital
budgets are strong and include large and medium scale
infrastructure projects, the number of net new jobs will not
increase overall. Net new jobs will not be created by simply
rolling taxes back if it doesn't create significant increases in
production.
3:19:52 PM
SENATOR PASKVAN asked what types of North Slope jobs are being
performed by nonresidents and if he believes that there are
Alaskan contractors and Alaskan employees that can do that work.
MR. BELTRAMI replied there are definitely resources in the state
to do a number of the jobs. One of the companies handles
coating/painting, and the union definitely has members that have
that skill set, but it also has members to fill more high tech
positions. The union has upward of $40 million in infrastructure
for its apprenticeship program, and the union members contribute
to these programs; five years ago the contribution was $10
million. Admiral Barrett with Alyeska Pipeline Service expressed
concern recently about filling high tech positions, but the
union already has those training programs in place, he stated.
It's just a matter of accessing the union.
SENATOR PASKVAN asked what, other than painting and coating,
were the 3,000 nonresidents doing on the North Slope.
MR. BELTRAMI replied there are maintenance jobs, some high tech
and some not, and there are resources in the state to train and
fill any of those positions.
3:24:57 PM
SENATOR GIESSEL asked if he said that in 2005 nonresident
employment on the North Slope was 32 percent.
MR. BELTRAMI replied he got the information from the chart she
cited earlier, and when he did the math he came out with 32
percent nonresident hire.
SENATOR GIESSEL asked him to comment on the November 2005 IBEW
newsletter that thanked IBEW travelers that came to Alaska that
summer to work in the short construction season. It sounds like
that particular union was inviting nonresident workers to
Alaska, she said.
MR. BELTRAMI explained that that sometimes happens when the
demand exceeds supply, but it's actually easier for a nonunion
Alaskan electrician to qualify to become a member of the local
union and go to work ahead of travelers.
SENATOR GIESSEL asked what percentage of the workers on the
North Slope were union members.
MR. BELTRAMI suggested she ask the business members that
represent the various crafts; he didn't know.
SENATOR GIESSEL asked what crafts the AFL-CIO represents.
MR. BELTRAMI replied the AFL-CIO represents all craft workers in
the state including public employee sector unions and private
sector union members.
SENATOR GIESSEL highlighted that 24 percent of Alaska Marine
Highway System masters, pilots, and engineers are nonresidents
and asked him to help return those specialized jobs to Alaska
residents.
MR. BELTRAMI replied, "You bet."
SENATOR GIESSEL clarified that according to the DOLWD
commissioner, the sleeping area at the Anchorage International
Airport is a private sector contract that is open to anyone; it
was not intended to target North Slope workers.
MR. BELTRAMI responded that the flier that was presented during
public testimony offered significant discounts to oilfield
workers.
3:30:49 PM
SENATOR GIESSEL referred to an Institute of Social and Economic
Research (ISER) chart showing that in 2010, 50 barrels of oil
were produced per day per North Slope worker; whereas in 2005,
100 barrels of oil were produced per day per North Slope worker.
She asked him to support Shell Oil's offshore efforts and the
relocation of the CDQ maintenance operations from Seattle to
Seward. Both will create jobs.
MR. BELTRAMI responded that he was invited to participate on a
panel supporting development in the Outer Continental Shelf.
REPRESENTATIVE GARA asked if he could explain the apparent
contradiction between the statements that: 1) the oil industry
is working hard to get its contractors to increase the Alaska-
hire numbers; and 2) that DOLWD statistics indicate that since
the last quarter of 2009 roughly 50 percent of the newest hires
on the North Slope are nonresidents. Employment numbers on the
North Slope and the numbers of non-Alaska hire are both the
highest in history.
MR. BELTRAMI agreed it's a perplexing contradiction and
reiterated that it could be due to different methodologies for
reporting. He said he did intend to follow up because
anecdotally it's clearly evident that long-time Alaskans who
work on the North Slope are surrounded less and less by Alaska
residents.
CHAIR EGAN stated that the McDowell Group was conducting a
report that would hopefully answer those questions.
3:35:09 PM
CHAIR EGAN thanked the participants and recessed the meeting.
5:34:01 PM
CHAIR EGAN reconvened the meeting and stated that the purpose of
the evening meeting was to hear from the public about ways to
ensure more Alaska hire in the oil industry. He encouraged the
public to follow legislative activity both during session and
the Interim at AlaskaLegislature.tv.
5:38:17 PM
OSWALD JENSEN, representing himself, said he's only worked ten
weeks in the last ten months, but he's worked on the North Slope
since 1997. He stated that 85 percent of the foremen and general
foremen on the North Slope and Cook Inlet are from out of state.
When there's a job opening, these non-Alaskan contractors vouch
for other nonresidents, and that's who gets hired. "Those fellas
are gunning for our Alaskan jobs," he stated. He explained that
before this current job he passed all the tests and physical for
a job with ASRC. However, the general foreman sent him back for
additional tests because he wanted to hire his buddy. That's
what happened.
MR. JENSEN pointed out that when an Alaska gets a job here he
spends his money here, but a nonresident takes his money and
leaves the state. He urged the committee to make it a policy to
require hiring Alaskans for the upper positions because that
would eventually solve the problem.
CHAIR EGAN asked for what position he was originally dispatched.
MR. JENSEN replied he's a structural welder, one of the best in
the state.
5:44:18 PM
TREVOR O'HARA, representing himself, said he's originally from
Bristol Bay and now works for CHM Hill as a workforce
2
development manager. He explained that he returned this evening
to give a personal account of the opportunity he has to target,
train, and hire Alaskans, particularly from rural Alaska. For
example, in the last four years CHM Hill has extended offers to
2
150 successfully trained graduates from King Salmon. Testimony
has shown that there's a lot of negative out there, but at the
same time there are positive things being done.
SENATOR GIESSEL asked what the prerequisites are for the
training program.
MR. O'HARA replied applicants need a high school diploma, the
ability to pass a drug test, a good motor vehicle record, the
ability to pass a criminal background check, and a certain
educational background to ensure he or she can handle the
training.
SENATOR THOMAS asked what types of jobs he trains for and how
long the training lasts.
MR. O'HARA replied it's a three-week class covering general
maintenance. This includes basic safety, introduction to hand
and power tools, introduction to construction math, and basic
employability and communication skills. Just three graduates
have turned down job offers and the retention rate is about 80
percent.
SENATOR THOMAS asked if he's found that transferable skills
already exist with folks in that area of the state.
MR. O'HARA replied on reason CHM Hill targeted Southwest Alaska
2
is because it already had an industry backbone. The people
understand hard work and the importance of a good work ethic.
5:48:55 PM
SENATOR PASKVAN asked if he'd visited Prudhoe Bay to see what
type of work was being done.
MR. O'HARA answered yes.
SENATOR PASKVAN noted the statistic that's available is that 35
percent of the 8,500 workers in Prudhoe Bay are nonresidents. He
asked if Alaskans could be trained to do some of the work that
the 3,000 nonresidents were doing.
MR. O'HARA explained that the training CHM Hill produces skills
2
that are transferable to a number of industries. In the second
week of class subject matter experts from the company serve as
instructors. This provides a direct link between training and
hiring to entry-level positions. He noted that the training
program wouldn't be possible without the STEP grant from DOLWD.
SENATOR GIESSEL asked how long have he'd been doing the program
and if he'd seen folks advance from entry-level to more advanced
positions.
MR. O'HARA replied he started with CHM Hill four years ago and
2
was recently promoted to the manager position. The class
emphasizes not being satisfied with entry-level positions, and a
number of graduates have assumed first and second level
leadership positions.
5:53:43 PM
TOM MALONEY, President, Board of Directors, Resource Development
Council (RDC), Anchorage, AK, stated that he was testifying on
behalf of the 78-member all-Alaskan RDC board. He informed the
committee that the RDC had members in the resource industries of
tourism, oil and gas, mining, fishing, and forestry. Their
primary concern is the decline in throughput in the Trans Alaska
Pipeline System (TAPS), given that it's the economic lifeblood
of the state. Currently it's running at less than one-third
capacity, and throughput is at the lowest level since startup in
1977.
MR. MALONEY stated that the RDC urges the Legislature to focus
on public policy to encourage new investment in production,
which will result in additional Alaska hiring opportunities. To
illustrate the magnitude of the issue, he pointed out that in
2007 the state forecast that production in 2011 would be over
800,000 barrels/day. The actual numbers from January through
August 2011 averaged 568,000 barrels/day, which is 30 percent
less than the 2007 forecast.
Hopefully, he said, the exploratory drilling that's anticipated
this winter will materialize and yield commercial production in
the next five to ten years. In part this activity is based on
favorable exploration incentives and credits, which help to
mitigate risk. However, new explorers have consistently informed
RDC that they are counting on significant production tax reform
if and when their exploration efforts are successful.
MR. MALONEY pointed out that development drilling had been
virtually flat since 2007 and opined that such drilling in
Prudhoe Bay and Kuparuk is the best option for getting new oil
into the pipeline in the near term. This will increase state
royalties and Alaska hiring opportunities in drilling,
engineering, procurement, fabrication, construction,
installation, logistics, support services, and maintenance. The
alternative will leave the economy at risk. He again encouraged
the committee to look at public policy that would encourage both
investment and Alaskan jobs.
5:59:43 PM
SENATOR PASKVAN asked if he knew of any plans to construct a
treatment facility in the central North Slope region; the last
one was constructed in 1995.
MR. MALONEY replied the current facilities need to be
revitalized to generally handle less oil and more gas and water.
SENATOR THOMAS questioned why exploration wasn't greater during
the 10-15 years when the tax rate was much lower.
6:02:46 PM
MR. MALONEY recalled that during the Knowles administration
there was a lot of activity in new oil fields. He cited
Northstar that peaked at about 78,000 barrels/day and the Alpine
facility further west that ConocoPhillips now operates.
6:04:08 PM
BRENDON HOPKINS, representing himself, Soldotna, AK, said he was
born in Alaska and went to work on the North Slope after he
received a process technology degree from the Alaska Process
Industry Career Consortium (APICC) program. He encouraged the
committee not to impose specific restrictions on where employees
live in their time off and instead support career-driven
programs like APICC. He said his experience is that many of the
people that are educated here have a strong tendency to do as he
did and continue to live in Alaska after graduation. He agreed
with earlier testimony regarding the success of this program and
noted that it was a joint effort by industry and the University
of Alaska System.
MR. HOPKINS encouraged the committee to adopt a policy that
stimulates development. The Shell Oil production prospects that
were mentioned earlier equate to about 36,000 jobs. It's not
about cutting up the remaining pie, it's about growing the pie
to make sure that there's sufficient opportunity in the state to
have jobs for future generations.
6:09:17 PM
BARBARA BACHMEIER, representing herself, Anchorage, AK, said
she's a retired military officer who decided to testify because
none of the testimony thus far had mentioned recruitment efforts
that were directed at military service members and veterans. To
exclude this valuable and readily available asset in Alaska is a
problem in the corporate and small business cultures, she
stated.
MS. BACHMEIER said there are many military members and their
families that like living in Alaska and would like to stay here
after retirement or separation from the service, but oftentimes
they need meaningful jobs in order to stay. These top-notch and
trustworthy people have skill sets that are often relevant.
These skill sets include specialized and technical engineering
credentials, analytical and intelligence work, medical
expertise, finance and accounting, CDL and other driving
endorsements, and a broad range of maintenance work. She said
she doesn't understand why she met somebody in Eugene, Oregon
who was on his way to the North Slope in order to paint or coat
because she's quite sure that anybody in Alaska can figure out
how to paint a tank, a pipe, a roof or vessels if their salary
is linked to that.
MS. BACHMEIER stated that it is terribly wrong to exclude
Alaska's military population in recruitment efforts for jobs on
the North Slope; she's testifying to make the committee and
public aware of this in the hope that something can be done to
remedy the situation.
6:15:10 PM
GINGER KING, representing herself, Anchorage, AK, said she's a
second generation Alaskan who has been working in the oil
industry since she was about 20-years-old. Currently she is a
project engineer with CHM Hill, and her husband works for
2
Halliburton. She graduated from the University of Virginia with
an engineering degree and didn't have any trouble getting job
offers here in Alaska. Her high school friends that also
received engineering degrees all had a similar experience. Her
sister received a mentorship with BP while she was in high
school, and CHM Hill offers internships and summer mentorships
2
for drafting. She stated that her experience is that the oil
industry is very open to Alaska hire.
MS. KING said a primary concern going forward relates to the
lack of new exploration, the reduction in production, and
declining throughput. She'd like to see these problems go away
and make sure that she has a sustainable future. She observed
that the North Slope may have a lot of nonresident hires, but
she believes that the support services in Anchorage and
Fairbanks are local hires.
SENATOR GIESSEL thanked her for the good news and for
representing the next generation.
6:20:03 PM
DAN ANDERSON, representing himself, said his first trip to the
North Slope was in 1976. He stated agreement with the previous
testimony and surmised that 95 percent of the support positions
in town are filled by Alaskans. The Alaska hire problem is on
the North Slope. He suggested that the number of nonresident
North Slope workers is probably higher than reported and the
only way to find out for certain is to stand at the Shared
Services Aviation ticket counter and check driver's licenses. He
calculated that 40 percent of the people on the planes are
nonresidents and guessed that $30 million leaves the state every
year. To prove that qualified Alaskans are passed over he
explained that he submitted an online application to CHM Hill
2
for a procurement position. Even though he had 25 years of
experience in procurement, he didn't even get a phone call. The
successful applicant lived in Washington state.
MR. ANDERSON urged the committee to put teeth in the hiring
process to ensure that qualified Alaskans aren't passed over in
favor of nonresidents.
6:25:01 PM
RACHEL PETRO, President and CEO, Alaska Chamber of Commerce,
Anchorage, AK, said the Alaska Chamber generally supports Alaska
hire, but more importantly it supports economic development.
Increased economic opportunities in Alaska will lead to
increased opportunities for current and future Alaska residents
and the Alaska Chamber's economic partners in the Pacific
Northwest and across the globe.
MS. PETRO said the Alaska Chamber selected oil tax reform as one
of its top three legislative priorities this year and would like
the committee to focus its efforts on increasing throughput in
TAPS. The exploration credits and incentives in ACES led to
potentially the busiest exploration in years, and it seems
reasonable to apply a similar methodology to increasing
production. HB 110 is a good vehicle, she stated.
6:27:38 PM
CHARLES MCKEE, representing himself, Anchorage, AK, said he's
lived in Alaska since 1967. Although he didn't have a high
school diploma or GED, he got a job on the pipeline because of
his father's Teamster connections. He said his experience with
the hiring practices in the oil industry is that many base-level
jobs were filled by nonresidents. He stated that he is currently
unemployed.
6:35:16 PM
REBECCA LOGAN, General Manager, Alaska Support Industry Alliance
("Alliance"), Anchorage, AK, informed the committee that the 460
Alliance members employ 35,000 people in the state of Alaska.
Recently she examined 100 renewal applications looking at total
workforce numbers and total Alaskan workforce numbers. Worldwide
corporations and Alaskan companies that had two or fewer
employees were excluded from analysis. She found 86 Alaska-based
companies with 7,260 total employees and 6,266 Alaskan
employees. This represents an 86 percent Alaska-hire rate.
MS. LOGAN explained that the Alliance's very important Industry
Relations Committee (IRC) advocates for its members and works
with the producers to ensure that Alliance members understand
the producers' procurement process and to help members be more
competitive. The IRC also facilitates meetings between its
members and new companies in the Alaska market. In the last six
months the IRC talked to Apache about what it is doing with
Statoil and Linc.
MS. LOGAN warned the committee to proceed with caution with
regard to Alaska DOLWD data. The website states that 1) workers
can be counted as new hires by more than one employer during a
quarter or over a four-quarter period and 2) users should not
draw broad conclusions about net job growth trends based solely
on new hire data. As a former administrator of a federally
registered apprenticeship program, she can confirm that on the
North Slope people move from one employer to another. She said
she has difficulty believing that 50 percent of all new hires
are nonresidents because of the way they're counted. She looks
forward to the McDowell study.
CHAIR EGAN added that's why the Legislature commissioned the
McDowell study.
6:39:15 PM
MIKE KENNY, representing himself, Anchorage, AK, said he began
work on the North Slope in 1970 as a surveyor, became the
business representative for Teamsters Local 959 in 1992, and the
AVICC chair in 2002. He lived in ATCO trailers for nearly five
years and learned a lot about local hire. In 1980 he was working
to develop the Kuparuk Oil Field when VECO showed up to bust the
unions. That's when he learned about crony capitalism. Getting a
job under that system had nothing to do with merit. He warned
the committee against trusting data that shows that a lot of
North Slope workers are Alaskans, because they're not.
6:44:18 PM
PAUL D. KENDALL, representing himself, Anchorage, AK, stated
that the cold fusion reactor evolution has begun. At the same
time, the hydrogen economy infrastructure has been launched and
the planet is being electrified by new technologies. He
emphasized that it's all about individual energy and that is
about to change drastically. This will bring true free markets
and real individual accountability.
MR. KENDALL opined that the comments about throughput are coming
from shills for special industries, and those are the last
people everyone needs to hear from. He asserted that the
consistent theme is no accountability, because no one talked
about illegal aliens in the [North Slope] job market. He
suggested the committee gather and listen to engineers to figure
out some direction.
6:52:32 PM
ED HANSEN, representing himself, Anchorage, AK, said he used to
work for National Bank of Alaska, and for many years he's been
interested in energy and serving Alaska. At some point he will
provide testimony, but at the moment, he's listening on behalf
of the Governor.
6:53:46 PM
DOLLY NORTON, President and CEO, Cully Corporation, Point Lay,
AK, said she is a lifelong Alaskan who worked on the North Slope
just once, and that was enough. She worked in the office and saw
first-hand how the good old buddy nonresident hiring system
worked. Managers would call friends in the Lower 48 to suggest
they apply for job openings on the North Slope, and they'd get
hired.
Point Lay has qualified people to work on the North Slope, she
said; it's just a matter of looking, and it's unfair to ignore
this. These jobs should go to people who live in Alaska, want to
retire in Alaska, and who live off the land. In particular, the
young people need a chance to work in the industry. She
explained that Point Lay is the youngest village on the North
Slope, and it has more kids in school than any other small
village on the North Slope. Those jobs are vitally important for
the residents to provide for their families and for the village
to be sustainable, she stated.
6:56:37 PM
RUSSELL SNYDER, representing himself, Anchorage, AK, said he was
born in North Pole, graduated from UAF, and is an Arctic Slope
Regional Corporation shareholder. He's worked on the North Slope
for six years and has seen that resident hire numbers are
fudged. For example, he was counted when he was in a Native
internship program. He described how difficult it is for
Alaskans to qualify for the higher-level management jobs.
MR. SNYDER agreed with Ms. Norton that the village of Point Lay
has a large population of young people. He emphasized the
benefit of bringing industry into the classroom to train these
young people to work in both Prudhoe Bay and offshore. He noted
that this morning he attended the Shell Oil presentation on
offshore drilling at the Alliance meeting. While he found the
talk educational, he was alarmed that just three Natives
attended. He encouraged the committee to help fund education for
young people to work in the oil industry and to push the oil
industry to do onshore exploratory drilling. Offshore
exploratory drilling is more difficult to control, he stated.
7:00:43 PM
DEBORAH BROLLINI, representing herself, Anchorage, AK, said she
is testifying as a 35-year Alaskan who cares deeply about the
state and her children's future. She said she's perplexed by the
hearings on Alaska hire since the Alaska Supreme Court ruled on
January 17, 1986 that Alaska hire was unconstitutional.
Nevertheless, everyone can agree that Alaska hire is important.
It is part of Alaska's culture, and it is in the best interest
of the state, business, and the economy.
The Alaska economy is reliant on the oil industry and all
Alaskans benefit regardless of where they live. It's important
to keep the economies strong for the children and grandchildren
in the future. Job numbers can be argued all day, but there
won't be jobs for children and grandchildren if there isn't a
safe and operational pipeline. She said she attended a forum
last May, and what stood out was that policy makers, Alaska
Native people, and the public made decisions based on their
desire to have a good future for their great grandchildren and
great-great grandchildren. If we don't lay down our swords we're
only hurting ourselves, she concluded.
7:04:27 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association
(ATA), said ATA has about 200 member companies statewide and it
supports local hire and jobs for Alaskans. Local hire has long
been an issue in Alaska, but because U.S. citizens are free to
travel and work wherever they choose the many legislatively
engineered local-hire plans that have been advanced over the
years have been struck down as unconstitutional. He opined that
to try to develop a new legislative plan seems
counterproductive.
MR. THOMPSON observed that the oil and gas industry was
receiving a great deal more scrutiny regarding local hire than
any other segment of industry, and that the real issue was
production. That's the highest priority for Alaska and focusing
on that priority will increase oil production and jobs for
Alaskans and others.
MR. THOMPSON pointed out that incentives do work. They have
worked for exploratory wells for both oil and gas, for movies,
and for wind and solar projects. Arguably, incentives for more
production will result in more production. More production will
help fill the pipeline, and a full pipeline should provide job
opportunities for anyone qualified and willing to work, he
stated.
7:07:44 PM
HAL GAZAWAY, representing himself, Anchorage, AK, said he's a
longtime Alaska who started practicing law when the pipeline was
under construction. A number of his clients have connections to
the North Slope, employment, and the construction industry.
MR. GAZAWAY said he's sure the committee is well aware of the
difficulty in crafting any kind of legislation that will promote
local hire and not run of foul of both the Alaska and the U.S.
constitutions. He suggested it makes more sense to use the $2
billion that ACES produced for a capital improvement program
that would use Alaskan contractors and hire Alaskan people to
work on Alaskan projects. This adheres to the constitutional
mandate to develop Alaska's resources for the benefit of the
people of Alaska. He said he appreciates that the ten Senators
spoke to the fact that the McDowell report is necessary, and he
believes that the wisest course is to wait to see what that
analysis shows.
7:11:59 PM
RAY METCALFE, representing himself, Anchorage, AK, said his
first job on the North Slope was in 1969, and at that time
everyone on the crew lived in Alaska. The unions were strong and
the work schedule was one week on and one week off or two weeks
on and two weeks off. The percentage of Alaska hire changed when
big contractors like VECO were hired to bring in large
nonresident crews. To keep transportation from being
prohibitive, the work schedules were changed to six weeks on and
three weeks off.
MR. METCALFE agreed with Mr. Beltrami that unions do have the
ability to screen for residency as they dispatch. He opined that
local hire would increase if there were a stronger union
presence on the North Slope and preference given to those unions
that successfully negotiated a return to short rotation
schedules.
7:15:55 PM
LYNETTE BARTOWSKI, representing herself, Anchorage, AK,
explained that the way that nonresidents are counted as resident
hires for North Slope jobs is that these people are stopping by
the DMV office to get an Alaska ID or driver's license and using
that to prove they're a resident. She challenged the committee
to look at the statute related to driver's licenses and to
broaden the questions to the hiring companies as to whether the
physical address on the driver's license is where the person
lives fulltime.
7:18:07 PM
CAROLYN P. BOLAR, representing herself, Anchorage, AK, informed
the committee that she worked in the oil industry on the TAPS
line with Standard Oil and left when it was sold to BP. She said
that while the focus today is related to jobs, the underlying
issue is Alaska's Clear and Equitable Share (ACES). The large
oil companies Exxon, Conoco, and BP were hired to produce the
oil that belongs to Alaska citizens, and they are fighting for
more money. They're fighting through misinformation and
political donations to elected officials or those who wish to
become elected officials. The $2 billion per year that is in
question, while substantial, is mere change to some of these
companies, but they're pushing because it's a matter of power
and maintaining power. It's just not good business to allow
Alaskans to get their fair share.
MS. BOLAR pointed out that the oil producers are simply
contractors and that it's not reasonable to act as if the oil is
theirs and that Alaska is lucky to get what's offered. Other
countries don't treat contractors that way. Instead, they set
the price, collect the money, and then pay the contractors.
MS. BOLAR said ACES passed amid the turmoil created by the
"Corrupt Bastards Club" and its funders, and it probably would
not have been put in place were it not for the disgust of
citizens and their mistrust of their leaders. And it's far from
perfect, because it doesn't come close to generating the maximum
profit for Alaska citizens. She reminded legislators that the
oath they took to join the Legislature said nothing about
getting reelected or going along to get along. Think about how
you felt when you uttered those words, she stated.
7:22:06 PM
WINNIE OUTWATER, representing herself, Wasilla, AK, stated
support for a stronger union presence on the North Slope,
because clauses in their bylaws allow preferential hire.
Employers need to look at the Alaskans that are trained.
CHAIR EGAN thanked the participants and committee members.
7:27:41 PM
There being no further business to come before the committee,
Chair Egan adjourned the Senate Labor and Commerce Standing
Committee meeting at 7:27 pm.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 09082011 Agenda.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Flyer targeting oil workers.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Bill Hurley, ConocoPhillips.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Doug Smith, Little Red Services.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Mike Kenny.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - NANA Development Corp..pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Ray Metcalfe.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Rebecca Logan, The Alliance.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Tom Maloney, RDC.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony of Dale Pittman, ExxonMobil.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |
| 0908 Testimony - Caroline Bolar.pdf |
SL&C 9/8/2011 1:30:00 PM |
HB 110 |