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.