Legislature(2025 - 2026)BARNES 124
04/02/2025 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| Presentations(s): Arctic Slope Regional Corporation | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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 |