Legislature(2025 - 2026)BARNES 124

04/02/2025 01:00 PM House RESOURCES

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Audio Topic
01:05:49 PM Start
01:06:24 PM Presentations(s): Arctic Slope Regional Corporation
01:58:15 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentations: TELECONFERENCED
-Arctic Slope Regional Corporation by Bridget
Anderson, Senior Vice President of External
Affairs
-Alaska Gasline Development Corporation by Frank
Richards, President
<Above Item Removed from Agenda>
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         April 2, 2025                                                                                          
                           1:05 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Robyn Niayuq Burke, Co-Chair                                                                                     
Representative Maxine Dibert, Co-Chair                                                                                          
Representative Carolyn Hall                                                                                                     
Representative Donna Mears                                                                                                      
Representative Zack Fields                                                                                                      
Representative Dan Saddler                                                                                                      
Representative George Rauscher                                                                                                  
Representative Julie Coulombe                                                                                                   
Representative Bill Elam                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATIONS(S): ARCTIC SLOPE REGIONAL CORPORATION                                                                             
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BRIDGET ANDERSON, Senior Vice President of External Affairs                                                                     
Arctic Slope Regional Corporation                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-presented a PowerPoint regarding the                                                                  
Arctic Slope Regional Corporation.                                                                                              
                                                                                                                                
CHRISTINE RESLER, President and Chief Executive Officer                                                                         
Arctic Slope Regional Corporation Energy                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-presented a PowerPoint regarding the                                                                  
Arctic Slope Regional Corporation.                                                                                              
                                                                                                                                
RYAN MUSPRATT, Senior Vice President                                                                                            
Petro Star                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Co-presented  a  PowerPoint regarding  the                                                             
Arctic Slope Regional Corporation.                                                                                              
                                                                                                                                
PAUL KARI, President and Chief Executive Officer                                                                                
Arctic Slope Regional Corporation Construction                                                                                  
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Co-presented  a  PowerPoint regarding  the                                                             
Arctic Slope Regional Corporation.                                                                                              
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:05:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RBYN  NIAYUQ BURKE called  the House  Resources Standing                                                             
Committee meeting to order at 1:05 p.m.                                                                                         
                                                                                                                                
Representatives   Dibert,   Hall,   Mears,   Saddler,   Rauscher,                                                               
Coulombe,  Elam, and  Burke were  present at  the call  to order.                                                               
Representative Fields arrived as the meeting was in progress.                                                                   
                                                                                                                                
^PRESENTATIONS(S): Arctic Slope Regional Corporation                                                                            
      PRESENTATIONS(S): Arctic Slope Regional Corporation                                                                   
                                                                                                                              
1:06:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR BURKE  announced that the  only order of  business would                                                               
be a presentation from the Arctic Slope Regional Corporation.                                                                   
                                                                                                                                
1:06:56 PM                                                                                                                    
                                                                                                                                
BRIDGET  ANDERSON, Senior  Vice  President  of External  Affairs,                                                               
Arctic  Slope   Regional  Corporation,  presented   a  PowerPoint                                                               
regarding  the Arctic  Slope Regional  Corporation  (ASRC).   She                                                               
showed  slide 1,  titled  "Strengthening  Alaska's Economy,"  and                                                               
moved to  slide 2,  titled "The  Road to  ANCSA," which  showed a                                                               
timeline briefly  summarizing the history  of the Inupiat  of the                                                               
North Slope, Alaska state history,  the discovery of oil, and the                                                               
formation of  regional corporations.   She elaborated  on several                                                               
points and  emphasized that  ASRC had  opposed the  Alaska Native                                                               
Claims Settlement Act (ANCSA).   She proceeded to slide 3, titled                                                               
"ANCSA and ASRC,"  which showed a map of eight  ASRC villages and                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
      ANCSA extinguished aboriginal land title, created 12                                                                      
       Alaska Native land-based regional corporations and                                                                       
     over    200    Alaska   Native    land-based    village                                                                    
     corporations,  it conveyed  Alaska Native  corporations                                                                    
     44  million  acres of  fee-simple  land  and nearly  $1                                                                    
     billion as  compensation for  the loss  of the  rest of                                                                    
     their ancestral lands. ANCSA  also directed people with                                                                    
     an Alaska Native blood quantum  of 25% or more and born                                                                    
     on  or   before  December  18,   1971,  to   enroll  as                                                                    
     shareholders in  their respective regional  and village                                                                    
     corporations.                                                                                                              
                                                                                                                                
     The  North Slope  Iñupiat, through  ASNA, was  the only                                                                    
     region to oppose the passage of ANCSA.                                                                                     
                                                                                                                                
     ASRC  was  conveyed roughly  5  million  acres of  land                                                                    
     under the terms of ANCSA.                                                                                                  
                                                                                                                                
     ASRC was compensated approximately  $22 million for the                                                                    
     53 million acres of lands  lost in our region under the                                                                    
     terms of ANCSA.                                                                                                            
                                                                                                                                
     Upon   incorporation,   ASRC  enrolled   nearly   3,800                                                                    
     original  shareholders. In  1989,  ASRC  was the  first                                                                    
     Alaska  Native   corporation  to  open   enrollment  to                                                                    
     descendants of original shareholders.                                                                                      
                                                                                                                                
     Today,  ASRC is  owned by  and represents  the business                                                                    
     interests   of    its   more   than    14,000   Iñupiaq                                                                    
     shareholders.                                                                                                              
                                                                                                                                
1:14:50 PM                                                                                                                    
                                                                                                                                
MS. ANDERSON showed slide 4, titled "Our Mission," which read as                                                                
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     ASRC's mission is to actively  manage our business, our                                                                    
     lands   and   resources,   our  investments   and   our                                                                    
     relationships to enhance  Iñupiaq cultural and economic                                                                    
     freedomwith      continuity,    responsibility,     and                                                                    
     integrity.                                                                                                                 
                                                                                                                                
She pointed  out that since  1972 ASRC has diversified  and grown                                                               
from  three  small businesses  in  Utquiagvik.   She  listed  the                                                               
businesses and  commented on  the growth  of the  corporation and                                                               
the impact on its shareholders.                                                                                                 
                                                                                                                                
                                                                                                                                
1:17:02 PM                                                                                                                    
                                                                                                                                
CHRISTINE RESLER,  President and Chief Executive  Officer, Arctic                                                               
Slope  Regional   Corporation  Energy,   as  part  of   the  ASRC                                                               
presentation,  described ASRC  Energy  Services.   She  explained                                                               
that ASRC  Energy Services  employed over  2,400 people  in 2024,                                                               
and it offered state-of-the-art  solutions to the energy industry                                                               
on  the  North  Slope  and  across Alaska.    She  gave  specific                                                               
examples  which   included  industrial   training,  construction,                                                               
remediation,  intervention  services, and  carbon  sequestration.                                                               
She showed slide  5, titled "ASRC Energy,"  which listed projects                                                               
and  operations  locations in  the  state.    The slide  read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     ASRC   Energy   provides  innovative   technology-based                                                                    
     services   across   the   energy   industry   including                                                                    
     traditional  oil  and  gas as  well  as  utilities  and                                                                    
     alternative   energy,  prioritizing   safety,  customer                                                                    
     satisfaction,  and  increasing  the  longevity  of  the                                                                    
     industry                                                                                                                   
                                                                                                                                
     ASRC    Energy's   expertise    includes   engineering,                                                                    
     environmental  consulting,   remediation,  professional                                                                    
     staffing,  construction, drilling,  project management,                                                                    
     operations and maintenance,  comprehensive well support                                                                    
     services, and fleet services.                                                                                              
                                                                                                                                
1:20:59 PM                                                                                                                    
                                                                                                                                
MS. RESLER  responded to a question  from Representative Coulombe                                                               
regarding the ASRC's  role in the Cook Inlet  Natural Gas Storage                                                               
(CINGSA)  project.    She  explained that  ASRC  is  the  project                                                               
manager for CINGSA's drilling operations.                                                                                       
                                                                                                                                
1:21:58 PM                                                                                                                    
                                                                                                                                
MS.  RESLER,  in  response  to  a  question  from  Representative                                                               
Dibert, explained that there are  approximately 200 employees out                                                               
of the Fairbanks facility that work up and down the pipeline.                                                                   
                                                                                                                                
1:23:07 PM                                                                                                                    
                                                                                                                                
RYAN MUSPRATT, Senior Vice President,  Petro Star, as part of the                                                               
ASRC presentation,  described Petro  Star's role  in Alaska.   He                                                               
pointed out  that ASRC's  investment in Petro  Star was  vital to                                                               
its growth, and  it was the only Alaskan-owned  refining and fuel                                                               
marketing company  in the  state, operating  two refineries.   Of                                                               
the  employees, 99  percent were  Alaskans.   He showed  slide 6,                                                               
pointing out the list of  projects and operations locations.  The                                                               
slide read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Petro Star's products support  some of Alaska's largest                                                                    
     industries by  supplying: (1) Jet fuel  to civilian and                                                                    
     U.S. military  customers; (2)  Diesel fuel  for natural                                                                    
     resource extraction, highway  transport, and support of                                                                    
     fisheries in  Dutch Harbor, Kodiak  & Valdez;  (3) Fuel                                                                    
     for the  generation of electricity in  the Interior and                                                                    
     Valdez; (4) Home heating fuel.                                                                                             
                                                                                                                                
     Petro Star's  Asphalt Unit at  its North  Pole Refinery                                                                    
     brings value  to clients  with Interior  project sites,                                                                    
     including the  State of Alaska, by  providing a locally                                                                    
     produced  product and  removing  costs associated  with                                                                    
     transportation and handling.                                                                                               
                                                                                                                                
He noted that  Petro Star chartered two double  hulled barges and                                                               
had  purchased  rail  cars  to   transport  diesel  fuel  to  the                                                               
interior.                                                                                                                       
                                                                                                                                
1:27:14 PM                                                                                                                    
                                                                                                                                
MR.  MUSPRATT,  in response  to  a  question from  Representative                                                               
Hall, described how the "royalty in kind" program works.                                                                        
                                                                                                                                
1:28:17 PM                                                                                                                    
                                                                                                                                
MR.  MUSPRATT   responded  to  a  question   from  Representative                                                               
Rauscher, explaining  that Petro Star's facilities  refine Alaska                                                               
North Slope crude oil.                                                                                                          
                                                                                                                                
1:28:42 PM                                                                                                                    
                                                                                                                                
MR.  MUSPRATT addressed  a  question  from Representative  Dibert                                                               
regarding specialty fuel for electricity.   He briefly summarized                                                               
the process  for splitting naphtha molecules,  a specialized fuel                                                               
for  the Golden  Valley Electric  turbine unit  located in  North                                                               
Pole.  Petro  Star also supplies a similar fuel  to Copper Valley                                                               
Electric in Valdez.                                                                                                             
                                                                                                                                
1:30:08 PM                                                                                                                    
                                                                                                                                
PAUL KARI,  President and Chief  Executive Officer,  Arctic Slope                                                               
Regional   Corporation  Construction,   as  part   of  the   ASRC                                                               
presentation,  described   how  the  company  grew   from  a  few                                                               
subsidiaries  to a  collection  of six  subsidiaries that  pursue                                                               
projects  all   over  the  state  including   military  projects,                                                               
schools,  and   health  care  facilities.     He   described  the                                                               
opportunities  for ASRC  communities  and the  emphasis on  local                                                               
hire.  He drew the committee's  attention to the list of projects                                                               
and operations locations and summarized  the information on slide                                                               
7, which read as follows [original punctuation provided]:                                                                       
                                                                                                                                
     ASRC  Construction   caters  to  both   government  and                                                                    
     commercial sectors, offering a  broad range of services                                                                    
     that  fall  into   three  main  categories:  buildings,                                                                    
     civil,  and infrastructure.  It  also  has a  dedicated                                                                    
     division for building material sales.                                                                                      
                                                                                                                                
     In   the  last   25   years,   ASRC  Construction   has                                                                    
     successfully  delivered more  than  $3  billion in  new                                                                    
     construction and renovation projects.                                                                                      
                                                                                                                                
     ASRC   Construction's   diversified  client   portfolio                                                                    
     brings value  to both the  public and  private sectors.                                                                    
     In 2024,  the company successfully completed  a complex                                                                    
     bridge  reconstruction  project   at  Eielson  Airforce                                                                    
     Base.                                                                                                                      
                                                                                                                                
He  described some  work ASRC  Construction had  been engaged  in                                                               
resulting  from   impacts  due  to  climate   change,  mentioning                                                               
projects  in specific  communities affected  by coastal  flooding                                                               
and sea level rise.                                                                                                             
                                                                                                                                
1:34:10 PM                                                                                                                    
                                                                                                                                
MR. KARI responded  to a question from  Representative Saddler by                                                               
describing a bridge project in Eagle River.                                                                                     
                                                                                                                                
1:34:51 PM                                                                                                                    
                                                                                                                                
MR.  KARI  addressed  a  question  from  Representative  Coulombe                                                               
regarding the challenges  of staffing.  He pointed  out that ASRC                                                               
Construction did  its own  training and  apprenticeship programs.                                                               
He pointed out that the work  in rural Alaska didn't have as much                                                               
pull from  other industries,  but employment  issues on  the road                                                               
system continue to increase.  He  noted that more than 95 percent                                                               
of the workers were Alaskan, and  that 98 percent of the projects                                                               
are public works such as for municipal governments.                                                                             
                                                                                                                                
1:37:10 PM                                                                                                                    
                                                                                                                                
MR.  KARI responded  to a  question  from Representative  Dibert,                                                               
explaining that  the company had  been doing work at  Eielson Air                                                               
Force Base and  at Fort Wainwright, but there  was no significant                                                               
work in North Pole.                                                                                                             
                                                                                                                                
1:38:26 PM                                                                                                                    
                                                                                                                                
MR.   KARI   and  MS.   ANDERSON   addressed   a  question   from                                                               
Representative  Saddler  regarding  construction related  to  the                                                               
American  with  Disabilities  Act  (ADA).    They  discussed  the                                                               
statistics regarding ADA related construction.                                                                                  
                                                                                                                                
1:41:22 PM                                                                                                                    
                                                                                                                                
MS.  ANDERSON showed  slide 8,  which described  the North  Slope                                                               
operations of  Eskimos, Inc.   She pointed  out the  projects and                                                               
operations locations  and discussed the information  on the slide                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     ASRC's North Slope  Operations include three businesses                                                                    
     focused  on economic  development on  the North  Slope:                                                                    
     Eskimos, Inc., Tundra  Tours, Inc., and the  Top of the                                                                    
     World Hotel.                                                                                                               
                                                                                                                                
     Eskimos, Inc. distributes fuel  and automotive parts to                                                                    
     locations  across the  North Slope  and operates  a gas                                                                    
     station,  automotive   parts  and   powersports  retail                                                                    
     stores, as  well as  a light  duty maintenance  shop in                                                                    
     Utqiagvik.                                                                                                                 
                                                                                                                                
     Tundra Tours,  Inc. owns  and operates  the Top  of the                                                                    
     World Hotel and offers tours in and around Utqiagvik.                                                                      
                                                                                                                                
Moving  to slide  9,  titled "ASRC  And  Its Operating  Companies                                                               
Strengthening    Alaska's   Economy,"    she   highlighted    the                                                               
contributions  ASRC and  other native  corporations have  made to                                                               
Alaska and discussed the following data points:                                                                                 
                                                                                                                                
     In  2024,  ASRC paid  over  $500  million in  wages  to                                                                    
     ASRC's Alaska employees  and distributed $188.3 million                                                                    
     in dividends to more than 14,000 Iñupiaq shareholders.                                                                     
                                                                                                                                
     Since  2000 ASRC  distributed  more  than $1.8  billion                                                                    
     dollars  to  Alaska  native communities  through  ANSCA                                                                    
     7(i) and 7(j) revenue sharing.                                                                                             
                                                                                                                                
     Since incorporation in 1972, $1.8 billion was directly                                                                     
     distributed to the Iñupiaq shareholders as dividends.                                                                      
                                                                                                                                
      Since 2001, ASRC has made $100 million in charitable                                                                      
     contributions.                                                                                                             
                                                                                                                                
1:45:41 PM                                                                                                                    
                                                                                                                                
MS.  ANDERSON   responded  to  a  question   from  Representative                                                               
Rauscher regarding which numbers were aggregates.                                                                               
                                                                                                                                
1:46:38 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
MS. ANDERSON addressed a series  of questions from Representative                                                               
Saddler regarding  funding sources  for ASRC  and the  purpose of                                                               
ANCSA.  She  explained that ASRC and the  Northwest Arctic Native                                                               
Association (NANA) contribute the "lion's  share" of the 7(i) and                                                               
7(j) revenue sharing from ANCSA.   Regarding the contributions of                                                               
ASRC, NANA,  and other  corporations to  the Alaska  natives, she                                                               
referenced  the disadvantages  of  the reservation  system.   She                                                               
explained that  the federal government  chose to create  a system                                                               
for   Alaska  indigenous   people   that   focused  on   economic                                                               
prosperity.   Alaska natives were  directed to create  and enroll                                                               
in village  and regional for-profit corporations.   Both directly                                                               
and  indirectly,  ANCSA created  a  variety  of organizations  to                                                               
serve  the   needs  of  Alaska's   natives.    As   a  for-profit                                                               
corporation,  ASRC  contributes  time and  financial  support  to                                                               
human services, education, and health services organizations.                                                                   
                                                                                                                                
1:50:54 PM                                                                                                                    
                                                                                                                                
MS. ANDERSON  responded to a question  from Representative Dibert                                                               
regarding education  and training  opportunities.   She explained                                                               
that ASRC and other Alaska  native corporations created education                                                               
foundations for scholarships and training.                                                                                      
                                                                                                                                
1:53:02 PM                                                                                                                    
                                                                                                                                
MS. ANDERSON responded to a  question from Representative Saddler                                                               
regarding legislation  since ANSCA's  passage that  affected ASRC                                                               
and other corporations.  She  referred to the amendments to ANSCA                                                               
that were called  the 1991 amendments even though  they passed in                                                               
1988.   Some of the legislative  intent of the amendments  was to                                                               
allow  sales of  ANSCA stocks  on the  open market.   The  Alaska                                                               
native corporations  worked together to ensure  that the original                                                               
framework of the  settlement act stayed in place  and that Alaska                                                               
indigenous people, born and unborn,  would benefit in perpetuity.                                                               
She  discussed   the  cultural  and  economic   benefits  to  the                                                               
shareholders  and  pointed out  the  limitations  for access  and                                                               
development of much  of the land owned by the  corporations.  She                                                               
explained  how Senator  Stevens  had worked  to  ensure that  the                                                               
corporations would succeed while  recognizing the limitations for                                                               
economic opportunity and  development in some of  the most remote                                                               
places in the country.                                                                                                          
                                                                                                                                
1:57:01 PM                                                                                                                    
                                                                                                                                
MS. ANDERSON  explained to Representative Saddler  that she could                                                               
not answer his  question about net operating sales  but could put                                                               
him in contact with someone who could discuss that.                                                                             
                                                                                                                                
1:58:15 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 1:58 p.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
ASRC-AK House Natural Resources PPT_April 2025.pdf HRES 4/2/2025 1:00:00 PM