Company finds two pipelines better than one for northern gas

WHITEHORSE, Yukon -- It would be cheaper to build two separate pipelines to ship natural gas south from the North Slope and from the Mackenzie Delta in Canada than a single line that includes a Beaufort Sea link, says a study by Foothills Pipe Lines Ltd.Foothills holds permits to build and operate a pipeline from the North Slope to the Lower 48 along the Alaska Highway route favored by Alaska Gov. Tony Knowles.Constructing a stand alone pipeline along that route from Prudhoe Bay to Alberta, as well as a stand alone line down the Mackenzie Valley, would cost an estimated $12.8 billion, says the study released this week.The cost of building a single "over-the-top" line from Prudhoe Bay to the Mackenzie Delta, and then down the Mackenzie Valley, would cost more -- an estimated $13 billion, according to the study. The company says its workers spent 50,000 hours on the study over the last year.One reason for the higher cost for the northern route is Foothills’ conclusion that the 300-mile line under the Beaufort Sea would have to be two pipes, not just one, due to the need to provide for a reliable flow during the substantial parts of the year when the line can’t be reached for repairs.The report also says the pipe would have to be larger, and thus more expensive, because compressor stations couldn’t be built along the undersea portion.Brian Love, Foothills’ manager of northern affairs in Whitehorse, told the Whitehorse Star that while the company is just now making its findings public, it has met directly with industry and government in both Canada and United States to share its conclusions."This was a big undertaking," Love said. "Remember, we have done the preliminary engineering work for the Alaska Highway project dating back to the ’70s."We have been at this a long time. What this was, was taking existing information and then adding in things that have changed from a cost point of view ... and then adding in over-the-top," Love said.The Foothills study estimates an Alaska Highway pipeline could be ready to ship gas south in six to seven years, with actual construction taking just 24 months, while it would take eight or nine years to start up the stand alone Mackenzie Valley line.The entire "over the top" line from Prudhoe Bay to Alberta wouldn’t be finished for nine to 10 years, the Foothills study indicates. It says the short window for laying pipe in the Beaufort Sea means that expensive custom machinery would have to be built and would lay idle except for the 40- to 60-day window when work could be done in the Beaufort. The longer construction time also would result in increased interest costs.The gas owners’ group researching the pipeline options has said it will cost $15 billion to $20 billion for a single line along either route, though Foothills and the gas owners don’t necessarily include the same facilities in their estimates.The gas owners say their $100 million feasibility study will be completed by the end of the year. But with natural gas prices back down near $2 per thousand cubic feet, the owners have said that neither route looks promising at this point.

Privacy issues 'vexing' in new economy

One of the most vexing issues lawmakers face in the "new economy" is personal privacy. For the typical American, the right to privacy is a cherished core value -- an apple pie and motherhood concept that government officials at all levels have recognized as a hot-button issue. But ironically, as the media and privacy advocates persistently fret about the threats to our privacy, Gallup and other surveys indicate that, while more than 80 percent of Americans are concerned about the issue, more than two-thirds have little faith in government to solve it.The privacy conundrum came front and center in Alaska earlier this month, during a summit hosted by the Lt. Gov. Fran Ulmer in Anchorage. It was a two-day dialogue among experienced professionals on the front lines of the issue and Alaskans with little background on its complexity.Philosophical lines drawn clearly in the sand among privacy advocates, industry and government were, in the end, blurred by the realities of today’s use of data.Perhaps Sun Microsystems’ Scott McNealy framed the issue best, albeit indelicately, last year, with his comment that, "You have zero privacy, anyway. Get over it." He might have added, " and deal with it."Driving the privacy issue is the explosive growth of technology and the Internet. The increased attention that it’s receiving from lawmakers has significant implications for the information technology, insurance, financial and health care industries -- and for government’s own collection and use of personal data.The only thing that appears to have changed in the traditional right to privacy expectation in the United States is today’s technology that makes it more efficient to compile, use and analyze data -- yours, mine and everyone else’s in the new economy.Said Richard Purcell, Microsoft’s director of corporate privacy, "It’s the most difficult problem I’ve seen since I read Kant in college -- an amorphous blob of concerns." Like its colleagues throughout the technology industry, Microsoft believes that "companies and governments can’t solve it; people of the world will solve it," Purcell said at the Alaska summit.Consider just a few examples of Purcell’s amorphous blobs of concerns.We order from a catalog and receive catalogs from 50 more businesses shortly thereafter in the mail. Today, we visit a Web site or join a mail list and receive a box full of unwanted junk mail. Perhaps government should prohibit sales of mailing lists. On the other hand, we might want some of our junk mail. On another hand, for some catalog distributors, the sale of their mailing lists is a significant profit center.Should Web sites be allowed to capture and use my personal buying habits, preferences and browsing habits? Big Brother may be watching me but on the other hand, I don’t mind providing my wish list to my family at Christmas or my news site filtering my topics of interest.More seriously, should government prohibit banks, insurance companies and health care organizations from providing my private information to third parties? On the one hand, my health conditions are no one’s business but my own. On the other hand, I may need that information sent to another provider for special care or other purposes.Government, in fact, has legislated in this area, through the Health Insurance Portability and Accountability Act and the Gramm-Leach-Bliley Act, which require organizations to develop privacy policies and provide them to clients and customers. It’s the reason you’ve been inundated with privacy notices from your bank, attorney and health care provider lately.And then there’s the broad issue of how government collects our information and uses it. Should the state of Alaska, for example, set a policy not to release my voter registration data? If so, how would candidates reach me? What about releasing hunting license lists to businesses that manufacture outdoor safety equipment?Or what about government’s ability to use its advanced technology to monitor my incoming and outgoing e-mail from my ISP? When Ulmer hosted the privacy summit, virtually all of those in attendance appeared to be most concerned with government invasion of privacy -- agreeing that certainly such surveillance could not be allowed without a warrant from the court, with the same protection afforded for the "older" technology of wiretapping.Today, in the wake of the terrorist attacks on the Pentagon and World Trade Center, Americans may well have a different view of the power and ability of government to track some individuals among us by any means.Said Ulmer at the conclusion of the summit, "we have a lot to think about" as the state reviews its own internal policies and what legislation might emerge to govern the private sector. "This will be an ongoing discussion with Alaskans," Ulmer said.The technology industry believes that there are no cookie-cutter rules that either industry or government can devise to protect the third-party use of an individual’s private information.Taking the industry self-regulation position, the Information Technology Association of America and Online Privacy Alliance nevertheless agree that consumers should be provided with clear privacy policies from the entities to which they provide any personal data. They also generally agree that consumers should have the option to opt in, rather than out of, practices that release their data to third parties.And, at least as far as users of the Internet are concerned, new protocols developed by the World Wide Web Consortium will enable Web users to set their own preferences for what data Web sites collect from them and how it can be used. The new Platform for Privacy Preferences 1.0, or P3P, is currently deployed in Microsoft’s Internet Explorer 6 and by AT&T’s ISP division, with other browser and Web site developers sure to follow in coming months.In today’s privacy landscape, it’s clearly a case of "consumer, take control of your data."Sally Suddock is executive director of the Alaska High-Tech Business Council. She can be reached via e-mail at ([email protected]).

Business Profile: Aero Recip Alaska LLC

Name of the company: Aero Recip Alaska LLCEstablished: 1963Location: 4451B Aircraft Drive, AnchorageTelephone: 907-243-3133Major focus of services: Aero Recip Alaska LLC provides piston engine overhaul services for light aircraft. The company also overhauls prop governors, turbo chargers, turbo charger components and aircraft accessories such as starters and alternators. Other services include nondestructive testing.History of the company: Jim Kaiser started the company in the 1960s as Sea Air Inc., handling engines ranging from 65 horsepower to 600 horsepower. During its tenure the company has operated chiefly from its current location on the shores of Lake Hood.In 1976 Sea Air merged with Air Power Overhaul. Kaiser sold the company in 1999 to Alvin Gregorash who owns Aero Recip Canada of Winnipeg, Manitoba. Sea Air Inc. was renamed Aero Recip Alaska, serving as the Alaska division of the Aero Recip Canada.Clients include private pilots, aircraft owners and commercial and contract operators.Aero Recip Alaska employs 12 people.One longtime Canada-based employee is sharing his 40 years of aircraft engine expertise by conducting seminars and compiling a videotape aimed at boosting information on radial engine work. Aero Recip Canada quality manager Don McIntosh, who visited the Anchorage office recently, plans to have the training tape produced professionally and released in 2002.Top accomplishment of the company: Aero Recip Alaska officials cite the company’s quality and service. "To date we have not had any failures in the work we have done in Alaska," said Paul Mills, who handles sales and marketing for the company.Major player: Tom Philo, shop manager, Aero Recip Alaska LLC.Philo first came to work for the company as a 17-year-old in 1976. He gained experience working at Sea Air until 1983 when he took another job. Philo returned to the company in 1997, working as an engine assembler. In September 2000 he was appointed shop manager. Philo earned certifications in powerplant, airframe and inspection work.-- Nancy Pounds

Futurist says average lifespan will be 120 years at century's end

Health care of the future will involve capitalism with a moral conscience and unity among individuals, according to a health policy analyst."Humankind collectively in this century will assume responsibility for our evolution," said Leland Kaiser, lecturer, writer and associate professor emeritus at the University of Colorado at Denver."As a futurist, I can tell you that in the next 100 years we will witness the worst of humanity as we just did and the best and brightest," said Leland speaking in Anchorage Sept. 18 in reference to the terrorist attacks on the East Coast a week before.Kaiser spoke to members of Commonwealth North at the Hotel Captain Cook."What I see coming is a new kind of capitalism, a caring capitalism," he said. "Now I think our challenge is to demonstrate to the world that capitalism is the solution."Kaiser is president of Kaiser & Associates, a management consulting firm serving the health care industry. He earned a master’s degree in medical care administration from the University of Colorado, plus a master’s degree in clinical psychology from the University of Pittsburgh and a doctoral degree in social psychology and higher education from the University of Denver.Kaiser perceives a change in American society which could yield improvements, but the onus lies with individuals. "Each of us is called upon to be an architect of the future."Health care also could see changes. "The challenge in health care is not to treat disease; it is to design it out," Kaiser said. "The real challenge is not treatment. Health is what we want, not the treatment of disease."According to Kaiser, healthy people are a consequence of successful functions in other areas of society."Health is a result. It’s what happens when everything works."To engineer a healthier Alaska, Kaiser called for groups to connect with each other rather than operating separately. There’s no difference between churches, schools or other organizations, the lecturer said. However, such connectivity is difficult to achieve."America at this point in time is a collection of rugged individualists, yet the future will be owned by groups," he said. "All the groups must come to the table."Kaiser charged the audience to view the world without country boundaries. "Lines are killing us. There are no lines in the universe," he said. "The function of lines is to divide; they also incur hatred and mistrust. We have to think in wholes, not pieces."Kaiser depicted the health care industry today yet also envisioned its future."Make no mistake, medical technology drives health care," he said. "By the end of this century the average life span will be 120 years."However, people desire healthy aging, he noted.He chided trends which bemoan increasing health care costs."We still view health care as a cost to society," he said. "It’s major contributor to the gross domestic product."Kaiser encouraged people to help others. "Philanthropy is the moral dimension of capitalism," he said, defining philanthropy as either volunteer work or donations."Communism failed because it doesn’t work. Socialism failed because it doesn’t work. Now we will see if capitalism works because for the system to work it must work for everybody," Kaiser said. "The basis for capitalism is learning to share abundance. Sharing our abundance increases our abundance. It’s greed that creates scarcity."The lecturer called for action from companies. "I’d like to see every corporation have a foundation," he said, with 10 percent of profits designated to help others. "Tithing is spiritual economics. What is required is creativity, moral consciousness and will."According to Kaiser, Americans needs to see a demonstration of what he calls caring capitalism. "I’ve been in many states, and I tell you this state has the best chance."Capitalism is the salvation yet it doesn’t yet have a moral conscience," he said. "The challenge is: Could it happen here?"

Many franchise opportunities require modest initial investment

Franchising generates an estimated $1 trillion annually in the United States alone, and it takes an estimated 1,500 companies doing business through more than 316,000 retail units to generate that volume. Representing the industry is the International Franchise Association, the industry’s oldest and largest trade group with more than 30,000 domestic and international members. According to the IFA, the top 10 franchise industries in descending order of magnitude were fast food, retail, service, automotive, restaurants, maintenance, building and construction, retail food, business services and lodging. The inside scoop Surprisingly, it doesn’t require outrageous amounts of capital or a high degree of net worth to become a franchisee. Today, approximately 250 franchise concepts, spanning every imaginable field, have initial investments requiring less than $50,000. The IFA, in its Profile of Franchising report, notes that 75 percent of all companies studied had initial investment levels of less than $250,000. "What really drives up the cost of investing in a franchise are things such as building a large retail or lodging site, maintaining significant equipment or stocking the inventory necessary to run the business," said IFA President Don DeBolt. If all that overhead is not in the budget, DeBolt suggests considering a lower-investment franchise that can be operated from a home office, doesn’t demand a large inventory or expensive equipment and doesn’t require more than a few employees. Nevertheless, there are certain set expenses that are universal to acquiring any franchise. Most franchises require a payment of an initial fee that allows the franchisee to operate the business under the franchise company’s trademark. Most franchise systems -- 70 percent -- charge an initial fee of $30,000 or less. Another charge is royalty payments to the franchisor. In 80 percent of the cases, those royalties are calculated as a percent of revenue, usually in the range of 3 percent to 6 percent of monthly gross sales. In consideration of those payments, the franchisee normally receives help in selecting a location, negotiating a lease, hiring and training employees, securing equipment and establishing a supply line. Reputable franchisors will continue to provide training and support for as long as the business continues in operation. In addition, technology has greatly improved communications via tools such as secure intranet, distance learning and online supply ordering capabilities. And the icing on the cake: Approximately one third of all franchises offer some type of franchisor-sponsored financing. What’s hot The McDonald’s and Dairy Queens may have established the category, but it is the service sector that is creating news today. Trash items from residences and commercial locations can be hauled away by contacting ( First to formalize the industry, the company features set pricing. Workers wear uniforms and arrive in trucks emblazoned with the corporate logo. at ( has developed an online business directory that provides users with global access to comprehensive lists of products and services in any state, city or town in the United States and Canada. The downside when considering a new or unique concept is the obvious lack of operating history. Since prospective franchisees cannot monitor a new franchise’s growth and acceptance in the marketplace or interview many franchisees, they should instead review the backgrounds of company executives and founders as well as check all references, research professional credits and talk to expert consultants in that industry. Finding the inside scoop Luckily the franchise industry is one of the most heavily researched, not to mention regulated. Under the Federal Trade Commission’s Franchise Rule and numerous state laws, franchise systems must provide prospective franchisees with detailed information explaining the terms of the franchise relationship, including a long list of items ranging from bankruptcy history to franchisor’s obligations to territorial protection. The IFA also provides access to a number of helpful background publications including the FTC’s Consumer’s Guide to Buying a Franchise. The IFA also sells a 300-page Franchise Opportunities Guide with information on the world’s leading franchise companies including investment requirements, company history and key contacts, legal and financial advice for the prospective franchisee, answers to frequently asked questions about buying a franchise and a self-evaluation section. All IFA publications can be accessed via (, which also features the Franchise Opportunities Mall Online, containing information on nearly 1,000 franchise companies that can be searched by name, category or investment level. Alf Nucifora is an Atlanta-based marketing consultant.   

Fred Meyer conducts traffic study for possible Eagle River store

Retailer Fred Meyer continues building a new store in Anchorage while studying property for a possible store in Eagle River. The new store near Abbott Road and Lake Otis Parkway should open early in 2002, said company spokesman Rob Boley. Builders have completed walls and roof work, he said. "We’re trying to get it weather-tight before winter hits," he said. The new store will feature a gas station, he said. Last year Fred Meyer stations opened the pumping facilities at the west Fairbanks, East Anchorage and Soldotna stores. Fred Meyer officials began site work in March on its fourth Anchorage store after more than a year of delays. Work on the site had met delays last year due to proceedings required to relocate a radio tower on the property. The tower served Anchorage Media Group radio stations, which are owned by Morris Communications Corp., also owner of the Alaska Journal of Commerce. A new tower now serves the stations. The old tower was removed in early March. The $28.5 million store, which would be the Portland, Ore.-based company’s ninth store in Alaska, would total about 170,000 square feet, Fred Meyer officials have said. Fred Meyer is owned by grocery giant Kroger. Additionally, the company is conducting due diligence work on property in Eagle River, potentially home to a new store there. Fred Meyer has not purchased property but is considering the site and conducting a traffic study, he said. "We’ve entered into an agreement with Eklutna (Inc.)," he said. The retailer previously had been evaluating a site in downtown Eagle River. However, the property owner led by a representative from Spokane, Wash., moved to stop required rezoning plans started by an area developer. Fred Meyer had proposed purchase of 16.8 acre site between the Glenn Highway and Business Boulevard, he said. The retailer would need to rezone five acres of the site from residential to general business.  

Pitlo to oversee Alaska print properties

Stan Pitlo, publisher of the Kenai Peninsula Clarion, has been appointed director of Morris Communications’ Alaska newspaper operations. Pitlo’s promotion to the newly created position was announced Sept. 19 by Susie Morris Baker, the company’s vice president for Alaska newspapers.Pitlo, a veteran of the newspaper business and a resident of Alaska for 27 years, became publisher of the Clarion in January 1999. He had been the newspaper’s general manager since 1995, and before that, its marketing director."Stan is committed to the success of our Alaska operations and is committed to his community as well," Baker said. "I am confident Stan will excel in his expanded role with our company."In addition to his position as publisher of the Clarion and administrator for the Homer News, Pitlo’s additional responsibilities will include oversight of the Juneau Empire and the Alaska Star in Eagle River. Pitlo also will oversee the Journal, the Alaskan Equipment Trader, the Alaska Oil & Gas Reporter and the Alaska Military Weekly -- all in Anchorage.Morris Communications is a privately held media company based in Augusta, Ga. Its holdings include newspaper and magazine publishing, outdoor advertising, radio broadcasting, book publishing and distribution, and computer services.

Around the World September 30, 2001

STATEThree shipyards vie for fast ferry contract JUNEAU -- A second attempt by the state to hire a shipyard to build fast ferries netted responses from three companies that competed for the contract the first time around.Derecktor Shipyards of New York, Eastern Shipbuilding of Florida, and Austal USA, an Australian company with a shipyard in Alabama, have submitted technical proposals for the project, said Philip Grasser, marine engineering manager of the Alaska Marine Highway System.The state will review the proposals to determine if the companies are qualified to build two of at least four high-speed aluminum catamarans capable of speeds up to 32 knots. The shipyards that make it through the initial screenings will have a chance to bid on the contract to be awarded in December, Grasser said.This is the second time the state has tried to award the fast ferry contract. During the first attempt in 2000, five companies filed technical proposals but only one submitted a complete bid to build a ferry slated to run between Juneau and Sitka. The state in April rejected the $35.99 million bid by Nichols Brothers Boat Builders of Washington state, calling it "nonresponsive."BP orders fourth double-wall tanker to carry Alaska oilANCHORAGE -- BP has ordered a fourth double-wall tanker for carrying Alaska oil to the West Coast, the company said Sept. 21.The tanker, like the three ships already ordered, will cost about $200 million, said BP spokesman Ronnie Chappell. It will hold 1.3 million barrels, or nearly 55 million gallons.BP is planning to convert its Alaska fleet to the new double-hull design by 2006, the company said, with deliveries of a tanker each year from 2003 to 2006. Single-hull tankers must be phased out on the Alaska route under a federal law passed in the wake of the 1989 Exxon Valdez oil spill.Three tankers were ordered last fall from a shipyard in San Diego, with options for three more. Construction of the new ships is scheduled to begin early next year in San Diego. The first ship is to be delivered late in 2003.The new ships will have dual propulsion systems and other safety measures to reduce the risk of spills.Southeast cruise ships carrying fewer passengersKETCHIKAN -- Cruise ships visiting Southeast Alaska are running far lighter passenger rosters in the wake of the Sept. 11 terrorist violence on the East Coast.The Carnival Spirit carried "a fair amount lower than 80 percent" of its 2,124-passenger capacity, said Jennifer de la Cruz, spokesperson for Carnival Cruise Lines.Other cruise companies also reported losses.Celebrity Cruises, whose ships Infinity and Mercury stop in Ketchikan, reported sailings to be about two-thirds full in the week after the attacks. Only half the usual number of bookings were made in the days immediately following the attacks, said Richard Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd., which owns Celebrity.The Holland America ship Ryndam had only 880 of its 1,266 beds filled when it arrived in Ketchikan on Sept. 19, and sister ship Statendam, which also can accommodate 1,266 was expected to carry about 700 passengers when it arrived Sept. 21.The week of Oct. 1 is the final week for cruise ships in Ketchikan for the year.Southeast leaders seek electrical intertiePRINCE RUPERT, British Columbia -- Southeast communities will study a format for a regional agency that would own and operate electric transmission lines that might someday link towns from Metlakatla to Skagway.The Southeast Conference, meeting in Prince Rupert, British Columbia, approved a resolution Sept. 20 to send to the communities a memorandum of understanding and draft agreement for the Southeast Alaska Regional Power Agency.The idea is to build transmission lines, and use existing lines where available, to bring inexpensive and reliable electric power throughout Southeast. Some communities are dependent on diesel generators and wildly fluctuating diesel fuel costs. Electricity in small communities can cost four times what it costs in the larger cities, said Randy Cornelius, chairman of the Southeast Conference’s Intertie Committee.At its greatest extent, at 392 miles of lines, the intertie would cost an estimated $435 million to build, he said.NATIONFedEx profits down 36 percent in first quarterMEMPHIS, Tenn. -- FedEx Corp., the world’s largest cargo airline with about 1,300 Alaska employees, reported Sept. 20 that first-quarter profits fell 36 percent, in part because the flat economy weakened demand in the manufacturing and high-tech sectors for its premium services.Company officials said they’re unsure how the disruption of air deliveries in the wake of the Sept. 11 terrorist attacks and the economy’s response to the strikes on the World Trade Center and the Pentagon will affect the company’s next quarter.Along with the rest of the nation’s airlines, FedEx planes were grounded for two days as a result of the attacks.The Memphis-based package delivery company reported net earnings of $109 million, or 36 cents per share for the fiscal quarter that ended Aug. 31. That compares with profits a year ago of $169 million, or 58 cents per share.-- Compiled from business wire services.

Halibut facing post-terror woes

KODIAK -- Even Alaska’s halibut market has been disrupted by ripples from the terrorist attack on the East Coast.Without access to the nation’s air cargo system to ship fresh halibut to market, the price paid to fishermen has plunged.When processors can’t fly out the fresh fish, they have to freeze it. Frozen halibut brings a lower price, so the processors pay less to fishermen.Just before the attacks, halibut of more than 40 pounds brought $2.40 a pound in Homer and $2.20 a pound in Kodiak. A week later, the Kodiak price was $1.60 to $1.90.In Homer, boats were tied up at the docks with fish aboard and no market."There are definitely loads begging for a home," said fish buyer Brad Faulkner of Homer, the state’s leading halibut port.Halibut, which is perceived as a luxury, is not selling well to the American consumer, Faulkner said.Custom processor Dave Woodruff in Kodiak was telling fishermen to wait to fish halibut until the market stabilizes."I’ve suggested my guys refrain from fishing for the next few weeks until we see where it’s all going. Prices are free-falling. Frozen inventory is very high," Woodruff said.

Bank changes its name

First National Bank of Anchorage is now First National Bank Alaska.The bank’s shareholders Sept. 20 voted for the name change, saying the new moniker more accurately reflects the bank’s statewide presence."It is a natural progression for us,’’ said Lyn Whitley, assistant communications director."We thought we should have the name reflect our service area, which is Alaska," said FNBA president and chairman Dan Cuddy during a reception at the bank Sept. 21.The name change goes into effect immediately. Checks and other bank documents printed with the bank’s previous name are still valid, Whitley said.The bank’s signs, which generally consist of the number 1 with a circle around it and the words "First National Bank," will not need to be changed, said bank vice chairwoman and chief operating officer Betsy Lawer. When it opened in 1922, FNBA was the first national bank to be chartered in Anchorage. But federal regulations prohibited the bank from using Alaska in its title because National Bank of Alaska -- now Wells Fargo Bank Alaska -- had already opened a national bank in Skagway in 1916.Over the years as banking regulations were relaxed, FNBA expanded outside of Anchorage.Today, FNBA has more than 750 employees working at 27 branches in the state.FNBA has assets of $1.8 billion.

Pepe's North of the Border restaurant is a Barrow must-visit

BARROW -- Along the remote coast of the Arctic Ocean in a city where the sun does not set for 82 days a year, a rural business thrives and prospers. Fran Tate, owner and operator of Pepe’s North Of the Border restaurant in Barrow, has seen her rural business grow from a restaurant housed in a remodeled two-bedroom house with room for 40 patrons to a facility that can seat 234 customers.The restaurant sees a steady flow of business year round in Barrow, according to the restaurant’s founder. "Regular customers eat their meals at the restaurant all the time," said Tate."City gatherings are often held at Pepe’s," said Jim Vorderstrasse, Barrow’s mayor. Vorderstrasse describes Tate as "a leading first citizen." The northernmost incorporated city on the North American continent has about 4,600 residents.Pepe’s two dining rooms and coffee shop also are open for banquets, community meetings, social gatherings, conferences and dances. Community service organizations are not charged for room rental in the restaurant and usually five to seven meetings are scheduled each month. Tate plans a special event that adds to the list of activities held at the restaurant monthly.From May 15 to Sept. 15, Tate sees big spurts of business during the afternoon at Pepe’s. During the summer season, the Arctic Slope Regional Corp. conducts Tundra Tours for visitors who want to experience the wonders of the Arctic. A stop at the restaurant is a lunch-time option offered to the visitors midway through the tours. Overnight visitors to the Top of the World Hotel, which is owned by ASRC and located adjacent to Pepe’s, have even more opportunities to taste the restaurant’s fare. Menus are printed in English, Japanese and Braille."During the winter, business is steady all day long with oil company executives, vice presidents and workers," said Tate. "Barrow is kind of a hub for the oil industry."Although no roads lead to Barrow, scheduled passenger and freight flights arrive and depart daily from the Will Rogers/Wiley Post Memorial Airport. According to Tate, Prudhoe Bay is a mere 240 miles away and Kuparuk is even closer at about 185 miles.Tate, who is remodeling one room now, said, "Future expansion may depend on what happens in ANWR (Arctic National Wildlife Refuge), because I’m stuck and can’t get any bigger in my present location."Tate rents her restaurant space from ASRC, which has headquarters in Barrow. Tate points out, however, that "everything inside is mine.""You have to keep going, keep active, or you feel you’re at a place of cancerous complacency," said Tate when speaking about future plans.Tate started her Mexican-American restaurant in 1978. Tate originally moved to Barrow to work as an electrical engineer for the Naval Petroleum Reserve No. 4 both in the field and behind a desk. When the Department of Interior took over the operation, Tate decided she did not want to accept the new direction her job was taking and work in an office all day.After studying the needs of the city and its one, tiny cafe, Tate determined that Barrow needed a restaurant. Today Barrow boasts 10 restaurants, according to Vorderstrasse.

This Week in Alaska Business History September 30, 2001

Editor’s note: "This Week in Alaska Business History" revisits events that shaped our past."Those who cannotremember the past arecondemned to repeat it."-- George Santayana, 1863-195220 years ago his weekAnchorage TimesSept. 30, 1981Loan interest rate increase means larger paymentsBy Deb DavidTimes WriterAlaska home buyers will have to dig deeper into their pockets or settle for a less expensive house because of a seven-eighths percent hike in mortgage loan interest rates.The new rate of 12 1/8 percent will drive up monthly payments on a $90,000 loan from the Alaska Housing Finance Corp. by $60. It will take effect Thursday, replacing the current interest rate of 11 1/4 percent.Only the first $90,000 of an AHFC loan is eligible for the 12 1/8 percent rate. Loan amounts above $90,000 carry the prevailing prime interest rate. The two rates are combined to come up with an effective annual interest rate.Anchorage TimesOct. 1, 1981Japan Air Lines spends freely in AnchorageBy Deb DavidTimes WriterJapan Air Lines flies the pole over Anchorage, stopping here only to refuel, but the carrier reportedly spent about $10 million last year on Anchorage hotel rooms for its flight crews and food for its passengers.JAL also paid about $500,000 last year in landing fees to Anchorage International Airport and bought 60 million gallons of fuel, public relations executive Tadao Fujimatsu said.Although he had no documentation, he said Japanese tourists spend a lot of money here on furs, seafood, liquor and jewelry in the airport’s duty-free shops. These commodities are cheaper in the United States than they are in Japan.Fujimatsu is in Anchorage this week to celebrate JAL’s 30th anniversary. This year marks its 20th year of over-the-pole flights.10 years ago this weekAlaska Journal of CommerceSept. 30, 1991From auto repair to computersBy Al GeistFor the Alaska Journal of CommerceFAIRBANKS -- With the purchase of Today’s Computer Business Center, a man who owned an auto-repair business a few years ago has become a major force in Interior Alaska’s computer and office-systems marketplace."I was actually into electronics long before I picked up a wrench," said Gary Jones, former owner of Northside Auto Repair. "I really didn’t take computers seriously until I saw my first graphic interface." That introduction began a long relationship with Apple’s Macintosh computers and Northside Computer Center, the company that grew to become Automated Business Center."I actually started talking about the possibilities (of forming ABC) about three years ago," said Jones, who incorporated the company last year as part of a sales/service partnership. ABC sells and services price-sensitive, low- to medium-end computer system and office machines.Alaska Journal of CommerceSept. 30, 1991Alaska auto buyers, car dealers stress serviceBy the Alaska Journal of CommerceAs the weather cools, Wayne Drumm warms to his work at Continental Motor Co. Inc., buoyed by the popularity of Subarus in Alaska and his own enthusiasm for the car’s reputation."This is our time to shine, because termination dust is on the mountains," said Drumm, chief operating officer for what he says is the highest volume Subaru dealership in the world.Harold Nye, the Oneida, N.Y.-based entrepreneur who started Nye Corp. of Alaska seven years ago, is similarly enthusiastic about Toyota."Toyota really excels," said Nye, who still has some rival dealerships wondering what he’s up to. "Toyota is the No. 1 import."To serve Toyota buyers, Nye plans to open a new 20,000-square-foot Toyota service center in Anchorage next spring, right next to the Toyota showroom slated for a facelift. Nye’s firm also was scheduled to open its new Lexus showroom in downtown Anchorage in late September.-- Compiled by Ed Bennett.

Domestic energy plan still in the works

It’s still too early to discern the effects of the Sept. 11 terrorist attacks in New York and Washington, D.C., on national energy policy, but the Bush administration is firm in its resolve for strengthened domestic energy production.That’s the word from Drue Pearce, a former Alaska state senator who is Interior Secretary Gale Norton’s senior adviser on Alaska issues. Pearce was in Alaska Sept. 20 and spoke in Anchorage to the Resource Development Council for Alaska Inc., along with Cam Toohey, Norton’s special assistant in Alaska.Congress is now dealing with issues relating to the terrorist attacks but will soon return to its work on energy legislation, Pearce said. A bill that would open the coastal plain of the Arctic National Wildlife Refuge has passed the U.S. House and is now in the Senate.The Department of the Interior itself is pressing forward with its domestic energy agenda, Pearce said. The department has secured funding for a start on environmental assessments needed for oil and gas lease sales in additional areas of the National Petroleum Reserve-Alaska, and approvals were given to seek additional funding for NPR-A lease sales in mid-September, she told the RDC.The Bureau of Land Management plans a second lease sale in the petroleum reserve next year, in the same northeastern part of NPR-A where a previous sale was held, Pearce said. Earlier this year, Phillips Alaska Inc. announced oil and gas discoveries on NPR-A leases acquired in the first lease sale.The lease sale in the northwestern part of the reserve is now planned for 2004, Pearce said. In matters related to a North Slope natural gas pipeline, Pearce said she is now a member of the Bush administration’s energy task force, which is being led by the Interior Department, and which will be dealing with the gas pipeline and other issues."The position of the department is that we are ’route-neutral,’ but we are also not recommending any changes to existing law," she said, referring to the Alaska Natural Gas Transportation Act of 1976. "You can read between the lines and get what that means," she told the RDC.Since ANGTA is the framework for former President Carter’s selection of the Alaska Highway gas line route, what Pearce implied was support within the department for the status quo, or the designation of the highway as the approved route.Pearce said an important shift within the Interior Department is that land and resource agencies like the U.S. Geological Survey, the Minerals Management Service and the Bureau of Land Management, "are now being heard more" within the department."During the Clinton presidency those bureaus were essentially ignored," Pearce said.Among several topics discussed, Pearce said that Interior’s review of new Clinton-era mining regulations that went into effect the day after President Bush took office are still being reviewed.Two sections being given close scrutiny are provisions for bonds on small mining operations that could hamper small miners in Alaska, and a provision for examining the validity of mining claims in areas that are under withdrawal from public lands.Because so much federal land in Alaska is under a withdrawal order of one form or another, thousands of mining claims could be jeopardized by subjective decisions of a government employee as to their validity, Pearce said.

Attacks may help open ANWR

FAIRBANKS -- Alaska’s senators are not bringing up the subject, but when asked, they say that prospects for drilling in the Arctic National Wildlife Refuge improved after hijacked jets crashed into the World Trade Center and Pentagon."I think we’ve got an issue here whose time has come," said Sen. Frank Murkowski, R-Alaska, while talking with reporters Sept. 21.Sen. Ted Stevens, R-Alaska, said he senses "a softening, if not a change, in position."The legislative path toward that end, though, was muddied when a senator from Oklahoma introduced amendments that could attach oil-drilling language to a military funding bill.Republican Sen. James Inhofe announced that he would introduce two energy-related amendments to the Defense authorization bill that senators started debating Sept. 21.One amendment would add to the national energy policy bill that the House passed in early August. The other amendment would be attached to an energy policy bill developed by Murkowski before the Alaska senator lost his chairmanship of the Senate Energy and Natural Resources Committee.Both Inhofe proposals contain language to open ANWR to oil drilling.Just a few hours before Inhofe introduced his amendments, Murkowski had said that adding such language to the Defense bill would be inappropriate and in poor taste.Murkowski is generally considered to have the votes in committee to make that happen, but the fate of such legislation on the Senate floor, where opponents have threatened a filibuster, is less certain.The House, in its energy bill passed in early August, approved drilling in ANWR.Stevens, also speaking with Alaska media Sept. 21, said the anti-terrorism fight outlined by President Bush will take years and that the nation must assure itself a solid supply of oil during that time.ANWR cannot produce oil soon enough to be of help, Stevens said, but if it is a known quantity and available, the country can allow existing fields to be drawn down at a more rapid rate if necessary, he said.

Thanks to Asian interest, skates could go from bycatch to million-pound fishery

A new fishery could soon have many Kodiak processing workers clocking lots more time on the job. That’s welcome news for line workers who have been idled from fishing closures to protect sea lions, as well as from fewer salmon and halibut landings crossing the Kodiak docks.Alaska Fresh Seafoods is one of the smallest operators along Kodiak’s working waterfront. But it’s always been one of the most innovative, and for the past few years has been dabbling in buying and selling skates. The item is popular in Asian countries where the skate wings are used in spicy soups, and buyers there want all they can get. Now, AFS wants to attract at least a million pounds of big and long-nosed skates into its plant each year to sell to a guaranteed buyer in Korea. In the past, skates have been taken only as bycatch from draggers and longliners who catch them while targeting species like cod or flatfish. According to AFS manager Dave Woodruff, boats bring in anywhere from a few hundred thousand pounds to more than a million pounds annually. Now, under special federal and state permits, Woodruff said skates can be a targeted fishery and he’s hoping more fishermen will give it a try.No stock assessment has been done for skates in Alaska, but any fishermen will tell you there’s a lot of them. Some report fishing areas of mostly muddy bottom where they only haul up large volumes of skates. Skates are regarded as an underused or "newly emerging" fishery. The flat, triangular fish can reach four feet across and weigh up to 70 pounds, although the average is roughly 35 pounds.Skates occupy the same places as other bottom dwelling species like halibut, and it’s a tricky task to keep those fish from getting illegally entangled in trawl nets. To avoid that, Woodruff said the draggers are using specially modified nets that retain the skates while allowing the other fish to go free.The new net, which was designed for Canada’s skate fishery, uses a large, 14-inch mesh "excluder panel," and reportedly yields bycatch levels of just 1 percent to 2 percent."Skates are such an odd-angled fish, and the net lets all other fish swim on through. The only bycatch we’ve had is starry flounder," Woodruff said, referring to the few 65 to 70 foot draggers currently targeting skates.According to Woodruff, removing more of the skates that blanket the ocean’s bottom could have a positive affect on halibut stocks."They’re eating the dickens out of them. When the skates are cut open, they’re often full of little halibut. Take skates off the grounds and it will reduce that predation," he said.After skates are delivered to the plant, they’re sorted by size. Fish weighing less than 35 pounds are boxed up whole; for larger sizes, only the wings are used and the rest of the skate is ground up for fish meal. AFS is paying 17 cents a pound for whole skates and 23 cents for wings. That’s compared with 6 cents a pound for pollock and 15 cents for pink salmon.Woodruff, who in his 32 years in the seafood business "has tried to find markets for everything from lumpsuckers to wolf eels" believes skates can sustain a good market."If we can get enough volume, skates will pay the bills and most importantly, keep people working. Any time we can be processing anything, it’s good for the community in terms of jobs and raw fish taxes," he said.Attacks slow seafoodThe Sept. 11 attack on America has disrupted the flow of food to our nation’s markets. Seafood and other perishables that are flown in fresh daily are likely to be in short supply and more expensive. Foods that come into the United States by ship were also held in holds as seaports felt the squeeze of security restrictions.If the seafood was kept at the proper cold temperature for a few days, it would be all right for restaurants and retail counters. However, since many airports don’t have refrigeration, it’s likely much of the fresh seafood spoiled and had to be dumped. That could ratchet prices upward, at least for the immediate future.Hatch price and housewivesMitch Kink, former head of the Alaska Independent Fishermen’s Marketing Association and "perpetual advocate for higher fishermen’s prices," said he’s tired of hearing excuses about why salmon prices are so much lower.He told the Alaska Fishermen’s Journal: "There are only two figures that matter -- the hatch price (what processors pay fishermen) and what the housewife pays. Everything else along the way is just talk. We took a 37-percent cut in our hatch price. Are housewives paying 37 percent less? That’s what I’m concerned about."Kink added that it’s not so tough taking a price hit if it’s also passed onto the consumers. But he feels betrayed when retail prices remain the same year after year. His solution? Solidarity. He told the AFJ: "When I go to the negotiating table, how many guys are standing behind me? That’s the question."Kodiak-based free-lance writer Laine Welch can be reached via e-mail at ([email protected]).

Alaska National Guard could be activated for airport security

JUNEAU (AP) More than 200 members of the Alaska National Guard could be called to active duty to provide security at the state’s airports, state officials said Thursday. Some could be activated as early as this week, said Maj. Gen. Phil Oates, Adjutant General of the Alaska National Guard. The announcement came as President Bush asked the nation’s governors to activate their militia forces to temporarily assist with airport security until the federal government can take up the task permanently. Gov. Tony Knowles said Thursday he is prepared to activate troops to comply with that request. ``The message is loud and clear. Alaskans deserve and Alaskans will have the necessary security at state facilities,’’ Knowles said. It is unclear how many of the 4,040 members of the Army and Air Force National Guard could be called to active duty. Alaska airports need at least an additional 262 security workers to meet more stringent federal requirements and some of those roles would be filled by part-time military forces, state officials said. State officials are now trying to ascertain how many additional security workers are needed at Alaska airports and where National Guard troops are needed, said Bob King, Knowles’ press secretary. ``We’re immediately responding to the president’s request and will seek to get Guard troops positioned as soon as possible,’’ King said. Airport security employees and local law enforcement would first be offered state-funded overtime. National Guard troops would fill the gaps in coverage, Oates said. Ted Stevens Anchorage International Airport needs 30 additional security workers and Fairbanks International Airport requires 12 workers. They would be tasked with performing vehicle checks outside the terminals, Oates said. Another 220 security workers are needed at 17 rural airports in the state to fulfill basic security needs, he said. National Guard troops called to active duty could expect to serve for up to six months, Oates said. Those filing security and infantry roles could expect to be called up first, Oates said. Involuntary call-ups of some National Guard personnel would be implemented only after security needs are met with volunteers from Guard units, Oates said. This is in an effort to ease the burden carried by Guardsmen with jobs and families, he said. ``When we call up a National Guard member most times we take them away from other employment. So we want to be careful when we do that,’’ Oates said. Nationwide, the Bush Administration expects up to 5,000 National Guard troops to assist with security at 420 commercial airports around the country. The federal government expects to pay for additional expense to state governments, which is estimated at $100 million to $150 million, administration officials said. Also, many more in-flight air marshals would be trained and a federal agency would be set up to oversee the screening of passengers and luggage. Alaska National Guard troops will receive about four days of security training from the Federal Aviation Administration, Oates said. The Alaska Army National Guard has about 2,036 troops attached to the 207th Infantry Group stationed at 74 armories around the state, a spokeswoman said. Another 2,004 members of the Alaska Air National Guard operate from Kulis Air National Guard base in Anchorage and Eielson Air Force Base in Fairbanks, the spokeswoman said.

Unalaska OKs $100,000 donation to terrorist attack victims

UNALASKA (AP) The Unalaska City Council approved a $100,000 donation for the victims of the terrorist attacks. Half of the money will go to burn units at hospitals in Washington, D.C., and New York City, to help treat people hurt in fires that broke out when planes hit the Pentagon and the World Trade Center Sept. 11. Another $25,000 will go to the Twin Towers Fund, to benefit families of firefighters, police officers and emergency medical technicians killed in New York. The remaining $25,000 is earmarked for victims of the hijacked plane that crashed outside of Pittsburgh. Unalaska City Council member Shirley Marquardt said Unalaska is rich in revenues derived from commercial fishing, and that the city should do its part to respond to the national disaster. The donation was approved Tuesday. Business

Alaska Airlines to resume flights to Washington D.C.

JUNEAU (AP) Alaska Airlines will resume nonstop flights to Washington, D.C., on Oct. 8, a company spokesman said. The airlines suspended the daily flights to Ronald Reagan Washington National Airport shortly after the Sept. 11 terrorist attacks on the Pentagon and New York. Alaska Airlines now will fly into Dulles International Airport, about 26 miles from the Capital, said airlines spokesman Jack Evans. Reagan airport remains closed pending an announcement from President Bush about it reopening. Alaska Airlines began offering the nonstop flight from Seattle-Tacoma International Airport to Washington in September. The daily flight was its only stop east of Chicago.

Alaska Medical Response Team to deploy to New York

Gov. Tony Knowles says Alaska is proud of its 44-member emergencymedical team that will be sent to New York City in early Octoberto aid in recovery efforts at the World Trade Center, site of arecent terrorist attack."Following the attacks, Alaskans have given generously both indonations and prayers. Federal deployment of this medicalassistance team is another example of Alaska’s commitment to thenational recovery effort," Knowles said. "Alaska is proud to playan active role as America comes together in response to thisterrible tragedy and we stand by to assist the nation further asneeded."The Alaska-1 Disaster Medical Assistance Team, or AK-1 DMAT,consists of professional and paraprofessional medical and supportpersonnel who volunteer to provide emergency medical care duringa natural or man-made disaster or other event. From October 10through 22, the Alaska team will be activated as a federalresponse team and deployed to New York City, where they willprovide medical support to rescue and recovery workers at groundzero, the site of the terrorist attacks.DMAT members are primarily from Anchorage and the Mat-Su Valley,but also from other parts of the state. They include physicians,nurses, paramedics, emergency medical technicians, pharmacists,respiratory therapists, and support staff. Members of the AK-1DMAT are volunteers until deployment, when they becomefederalized employees of the U.S. Government.No one on the team is happy to receive the call to deploybecause that means someone is hurt and we wouldnt wish forthat, said Phyllis Goodwin, Commander, AK-1 DMAT. However, ifpeople are hurt and need our help, we want to be there to givewhatever assistance we can.The AK-1 DMAT is part of the National Disaster Medical System(NDMS), within the federal Department of Health and HumanServices Office of Emergency Preparedness. The NDMS is acooperative asset-sharing program among federal agencies, stateand local governments, and private businesses and civilianvolunteers which ensures that resources are available to providemedical services following a disaster and to assist the localhealth care system and emergency personnel.Level one DMATs like the team from Alaska are equipped to deployto a disaster site with sufficient supplies and equipment tosustain themselves for 72 hours while providing medical care.There are 27 Level 1 DMATs in the United States.Alaskans are already participating directly in the recoveryeffort. Last week, Knowles sent Jim Harris, a program manager inthe recovery section of the Alaska Division of EmergencyServices, to New York to work a two-week shift.

Alaska makes first run to D.C. airport

The ribbons have been cut and the speeches given, but Alaska Airlines is still sky high over its new daily jet service to Washington, D.C."We’re extremely excited," Jack Walsh, spokesman for the Seattle-based airline, said of the inaugural service that started Sept. 4 to Reagan Washington National Airport."This is a coup," Walsh said. "Things are much more convenient for the people of Alaska and the Pacific Northwest. In the past, there wasn’t anything to compare it to."The same-plane flight from Anchorage takes about nine hours, including a 50-minute layover in Seattle. The airline is using its new 172-seat Boeing 737-900s on the flight.Until people realize Alaska Airlines is flying to the nation’s capital, the flights probably won’t be at capacity, Walsh said."Any time you start a new route, it takes a while to get going," Walsh said. "There is still room to get tickets -- on down the road I suspect peak times will be sold out well in advance."The airplane was full on its inaugural flight with politicians, including Anchorage Mayor George Wuerch and "various and sundry other people and VIPs," Walsh said. The airline hosted ribbon-cutting festivities in Anchorage, Seattle and Washington, D.C.Boeing held a special ceremony at Reagan Washington National Airport to welcome the new flight, Walsh said. The airline’s entire fleet consists of the Seattle-made airplanes.Alaska Airlines in June won landing rights at the airport closest to Washington, D.C., allowing the airline to operate one round-trip flight daily from the nation’s capital to Seattle and continuing on to Anchorage.The U.S. Department of Transportation awarded the highly coveted slot to the Seattle-based airline June 22. It is one of six "beyond perimeter (landing) slots" available at the airport. The slot opened in December after Trans World Airlines filed for bankruptcy and was purchased by American Airlines.Alaska Airlines officials said the flight was made possible with the help of Alaska’s congressional delegation who wrote Secretary of Transportation Norman Mineta in support of the company’s application.The all-Republican delegation noted that federal law grants a preference for the slots to carriers that don’t already provide service to the nation’s capital.


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