page State of Alaska, PRA release 9 North Slope facility sharing study

Vol. 9, No. 25 • www.PetroleumNews.com North America’s source for oil and gas news Week of June 20, 2004 • $1

● MACKENZIE DELTA North of 60 Mining News inside Bank on it Chevron winner in Mackenzie sale; acreage close to well drilled last winter By DON WHITELEY Petroleum News Contributing Writer

o paraphrase Mark Twain, reports of Chevron Canada Resources’ demise in the Canadian oil T patch were premature. Weeks after parent ChevronTexaco announced a large sale of assets in the Western Canadian sedimentary basin, Chevron and partner BP turned up as the biggest winner in a Mackenzie Delta lease sale. In a 50-50 partnership with BP Canada Resources Inc., Chevron was the successful bidder on 56,000 hectares of leases in the “We’ve been saying that Mackenzie Delta, all along we’re about 100 kilome- ters northwest of committed to Canada.” Inuvik. —David Pommer, Chevron With a commit- Canada Mackenzie gasline ment to spend near- applications to be filed ly C$62 million over five years (and a deposit of C$15 million), the Chevron-BP partnership was later this summer the biggest of five Delta and Mackenzie Valley The project leader for the Mackenzie leases awarded by the Northern Oil and Gas Valley natural gas pipeline said June 15 that Directorate of Canada’s Department of Indian all the regulatory applications for the line Affairs and Northern Development. will be filed “later this summer,” a more def- Ten companies will spend C$124.9 million to inite timetable than the “sometime in the sec- ramp up exploration activities in anticipation of a ond half of the year” previously announced. new natural gas pipeline to carry existing and The announcement came in a speech by This month’s North of 60 Mining News in enclosed in this edition of future gas production from the north to markets in K.C. Williams, director and senior vice-pres- Petroleum News, as is the monthly Petroleum Directory (section B). southern Canada and the United States. The area ident of Imperial Oil, to the Canadian covered by the new leases is more than 2,000 Association of Petroleum Producers Capex in oil sands heading for square kilometers. Investment Symposium in Calgary. Chevron spokesman David Pommer put to rest Imperial is the project leader and operator stratosphere, C$93.5B next 8 years any suggestion that the asset sale — more than C$1 for the proposed gas-gathering system and Oil sands spending could top C$6 billion this year, but that will billion worth of oil and gas reserves and production the Mackenzie Valley Pipeline. The pipeline pale alongside the C$93.5 billion the Alberta government is pro- in Alberta and British Columbia — was an indica- consortium also includes ConocoPhillips, jecting for the next eight years. tion that the company was losing its enthusiasm for Shell Canada and ExxonMobil, which owns The province’s Economic Development Department released a Canada. almost 70 percent of Imperial. study in June that forecast the mind-boggling capex budget for “We’ve been saying that all along we’re com- new and expanded projects by 2012 — a figure that dwarfs the see GASLINE page A18 estimated C$28 billion invested in the sector so far. see CHEVRON page A18 If the projections are accurate, the government said production ● could reach 1.8 million barrels per day of synthetic crude and 1.2 NORTH AMERICA million bpd of bitumen — about triple the expected output this year. For this year, the Athabasca Regional Issues Working Group, an industry coalition, is counting on spending of C$6.1 billion, CNG ships an option edging out last year’s C$5.5 billion and falling only slightly short of the record C$6.6 billion in 2002. Newfoundland university sets up research center for CNG development Currently, 61 projects are in the pipeline for the vast northeast- ern Alberta resource of 175 billion barrels. PETROLEUM NEWS —GARY PARK, Petroleum News Calgary correspondent ompressed natural gas carri- ers, operating without the C super-cold temperatures, high pressure and expensive liquefaction BREAKING NEWS and regasification terminals required for liq- COURTESY ENERSEA TRANSPORT uefied natural gas, could be an answer for moving 7 EnCana raises estimates: Independent bumps up its stranded gas short distances, though proponents Cooling resources, sales estimates for 2004; North America is its hot spot say the first full-scale commercial operation is five the gas below zero, or six years away. but nowhere near the minus 259 degrees Most of the investment would be in ships, not required for LNG, and pumping it into shipboard 12 Global says no to price cutting: Company says it will no immovable terminals to turn gas into and out of its tanks at 1,300 to 1,800 pounds per square inch longer slash prices in Gulf of Mexico rig market just to satisfy operators liquid state, a plus for CNG transport from smaller wouldn’t require much more than a compressor fields, supporters say. Although the ships wouldn’t operation at an offshore loading terminal, said 14 Alaska gets mixed reviews: Views differ on proposed sale be able to carry as much gas as an LNG tanker, at John Dunlop, vice president for business develop- shorter distances CNG could be an affordable of royalty in kind gas from Cook Inlet, Agrium urges state to pursue sale answer, advocates say. see CNG page A16 A2 RIG REPORT PETROLEUM NEWS • WEEK OF JUNE 20, 2004 Alaska - Mackenzie Rig Report

Rig Owner/Rig Type Rig No. Rig Location/Activity Operator or Status The Alaska - Mackenzie Rig Report as of June 16, 2004. Active drilling companies only listed. Alaska Rig Status TD = rigs equipped with top drive units WO = workover operations North Slope - Onshore CT = coiled tubing operation SCR = electric rig Doyon Drilling Dreco 1250 UE 14 (SCR/TD) Milne Point, reentry MPL-43 BP This rig report was prepared by Wadeen Hepworth Sky Top Brewster NE-12 15 (SCR/TD) Deadhorse yard Available Dreco 1000 UE 16 (SCR) W pad workover W-11 BP Dreco D2000 UEBD 19 (SCR/TD) Alpine, drilling CD2-31 ConocoPhillips OIME 2000 141 (SCR/TD) Infield Kuparuk, drilling 1E-123 ConocoPhillips

Nabors Alaska Drilling Trans-ocean rig CDR-1 (CT) Stacked, Prudhoe Bay Available Dreco 1000 UE 2-ES (SCR) Prudhoe Bay, C-24A BP Mid-Continent U36A 3-S Prudhoe Bay, 1E-123 ConocoPhillips Oilwell 700 E 4-ES (SCR) Prudhoe Bay, J-07A BP Dreco 1000 UE 7-ES (SCR/TD) Prudhoe Bay, A-30 BP Dreco 1000 UE 9-ES (SCR/TD) Prudhoe Bay, V-02 BP Oilwell 2000 Hercules 14-E (SCR) Stacked, Deadhorse Available Oilwell 2000 Hercules 16-E (SCR/TD) Stacked, Prudhoe Bay Available Oilwell 2000 17-E (SCR/TD) Stacked, Point McIntyre Available Emsco Electro-hoist -2 18-E (SCR) Stacked, Deadhorse Available OIME 1000 19-E (SCR) Stacked, Deadhorse ConocoPhillips Emsco Electro-hoist Varco TDS3 22-E (SCR/TD) Stacked, Milne Point Available Emsco Electro-hoist 28-E (SCR) Stacked, Deadhorse Available OIME 2000 245-E Stacked, Kuparuk ConocoPhillips

Nordic Calista Services Superior 700 UE 1 (SCR/TD) Drill site 6 well 23A BP Superior 700 UE 2 (SCR) Endicott, drill site 18 well 33B BP Ideco 900 3 (SCR/TD) Meltwater, moving to 1G-08 ConocoPhillips

North Slope - Offshore Nabors Alaska Drilling Oilwell 2000 33-E (SCR/TD) Stacked, NorthStar BP Emsco Electro-hoist Canrig 1050E 27-E (SCR/TD) Stacked at 12-acre pad Kerr-McGee Cook Inlet Basin – Onshore Aurora Well Service Franks 300 Srs. Explorer III AWS 1 Nicolai Creek, NCU3 workover Aurora Gas

Evergreen Resources Alaska Wilson Super 38 96-19 Stacked in Wasilla yard Evergreen Resources Alaska Corporation

Inlet Drilling Alaska/Cooper Construction Kremco 750 CC-1 Stacked, Kenai Forest Oil

Kuukpik 5 Swanson River, drilling 241-16 Unocal

Marathon Oil Co. (Inlet Drilling Alaska labor contractor) Taylor Glacier 1 Working on well Beaver Creek #12 Marathon

Nabors Alaska Drilling Rigmasters 850 129 Kenai, Red #1 Unocal National 110 UE 160 (SCR) Stacked, Kenai Available Continental Emsco E3000 273 Stacked, Kenai Available 51 Steelhead platform, done 12-1-03 Unocal IDECO 2100 E 429E (SCR) Stacked, removed from Osprey platform Available

Water Resources International Ideco H-35 KD Prep to resume operations Pelican Hill

Cook Inlet Basin – Offshore Nabors Alaska Drilling’s Rig 273, JUDY PATRICK

Cudd Pressure Control 340K Workover, Osprey Platform Forest Oil Baker Hughes North America rotary rig counts*

Unocal (Nabors Alaska Drilling labor contractor) June 4 June 11 Year Ago Not Available US 1,187 1,168 1,071 Canada 273 256 315 XTO Energy (Inlet Drilling Alaska labor contract) Gulf 95 90 106 National 1320 A Idle Idle National 110 C (TD) Idle XTO Highest/Lowest US/Highest 4530 December 1981 Mackenzie Rig Status US/Lowest 488 April 1999 Canada/Highest 558 January 2000 Mackenzie Delta-Onshore Canada/Lowest 29 April 1992 AKITA Equtak *Issued by Baker Hughes since 1944 Dreco 1250 UE 62 (SCR/TD) Stacked Tuktoyaktuk, NT EnCana Dreco 1250 UE 63 (SCR/TD) Stacked, Lucas Point, NT Chevron Canada National 370 64 Stacked, Inuvik, NT Available Central Mackenzie Valley Rig start-ups expected in next 6 months AKITA/SAHTU Rig Owner/No. Rig Location/Activity Operator Oilwell 500 51 Stacked in Norman Wells, NT Available Aurora Gas AWS1 Will be moving to Kaloa 3 and then to Nabors Canada Long Lake 1 for a re-entry Aurora Gas 62 Racked Available XTO Energy A & C The rig on platform C will be reactivated in late June 2004. XTO

The Alaska - Mackenzie Rig Report is sponsored by: PETROLEUM NEWS • WEEK OF JUNE 20, 2004 ON DEADLINE A3

WASHINGTON, D.C. ALASKA House passes refinery expansion bill, RCA lowers trans-Alaska pipeline tariffs ANWR dropped from mining bill for 2001-2003, sets permanent, lower rate House Republicans pushed through legislation June 16 that supporters said would The Regulatory Commission of Alaska has ruled against the owners of the trans- speed construction of new refineries to ease tight gasoline supplies. Opponents said Alaska pipeline system, finding their intrastate rates for shipping oil from 2001 the bill would reduce environmental protection and do little to stem high fuel costs. through 2003 to be unreasonably high. The legislation was approved by a vote of 239-192 as House Republican leaders In its June 10 order RCA also established lower, permanent post-2000 intrastate sought to dramatize the congressional impasse over energy legislation by bringing up rates and ordered the TAPS carriers to refund the difference to shippers for the years for votes a series of energy-related bills. 2001-2003. The refinery legislation would make the Energy Department the key agency deal- The order, which can be found online at ing with refinery permits for plants proposed in designated development zones where http://www.state.ak.us/rca/orders/2004/p03004_34.pdf, was in response to a June there is high unemployment or where a refinery had been closed. It also would 3, 2003 rate filing by the TAPS carriers that used a methodology established in a require that permit decisions be made within six months after applications are 1986 settlement between the carriers and state and federal regulators. received. GOP leaders also unexpectedly abandoned plans to take up once again the issue see TARIFFS page A19 of oil drilling in Alaska’s Arctic National Wildlife Refuge after it became uncertain they had enough votes to get the bill passed. To attract more Democrats, the bill earmarked revenue from the refuge’s oil for SASKATCHEWAN funding of a miners’ health care plan. However, the miners’ union said it opposed the provision, prompting Rep. Richard Pombo, R-Calif., to withdraw the legislation. The Enviro study ordered for Great Sand Hills House repeatedly has approved oil drilling in the Alaska refuge, only to see the meas- Oil and gas exploration of Saskatchewan’s Great Sand Hills area will await a $4 ure killed in the Senate. million environmental study, the provincial government announced June 16. At the same time, the government quadrupled the area already declared off-limits to ANWR could re-emerge resource extraction, to 365 square kilometers. Brian Kennedy, spokesman for House Resources Committee Chairman Richard The Great Sand Hills is a 1,900 square kilometer collection of naturally occur- Pombo, said a revised mining bill could re-emerge as this issue of Petroleum News ring sand dunes and prairie grass considered an ecological jewel by conservation- goes to press. ists. Located just north of the Trans Canada Highway and on the Alberta border, the “One of the unions that we were trying to help in this endeavor decided at the 11th dunes are estimated to be nearly 10,000 years old. hour not to support the bill,” Kennedy said. “So Chairman Pombo pulled it from con- Drilling can continue in areas where oil companies have already staked their see HOUSE page A18 claim, but no more mineral rights will be sold until after the study has been com- pleted. “We are looking at the whole landscape and that is very important,” Saskatchewan Environment Minister David Forbes told Canadian Press. “There Issue Index may be stakeholders who feel we could have gone further — people who think that this wasn’t enough — but I think this is a very good start.” EXPLORATION & PRODUCTION ...... 8 Industry Minister Eric Cline said he expects the review will be also be well- FINANCE & ECONOMY ...... 6 received by the oil and gas industry. “What industry wants is clarity - they want to NATURAL GAS ...... 13 understand what the rules are,” he said. OPINION/EDITORIAL ...... 4 —DON WHITELEY, Petroleum News contributing writer

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Petroleum News (ISSN 1544-3612) Week of June 20, 2004 Vol. 9, No. 25 Published weekly. Address: 5441 Old Seward, #3, Anchorage, AK 99518 (Please mail ALL correspondence to: P.O. Box 231651, Anchorage, AK 99523-1651) Subscription prices in U.S. — $52.00 for 1 year, $96.00 for 2 years, $140.00 for 3 years. Canada / Mexico — $165.95 for 1 year, $323.95 for 2 years, $465.95 for 3 years. Overseas (sent air mail) — $200.00 for 1 year, $380.00 for 2 years, $545.95 for 3 years. “Periodicals postage paid at Anchorage, AK 99502-9986.” POSTMASTER: Send address changes to Petroleum News, P.O. Box 231651 • Anchorage, AK 99523-1651. A4 OP-ED/ON DEADLINE PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● BERLIN The peak oil debate — lessons from Europe? By ROGER HERRERA as they can despite the obvious Germany embraces wind power pollution associated with burn- For Petroleum News Today Germany produces a third of all the wind ing coal. They are also con- power in the world, but wind, nevertheless, constitutes a he debate on the timing of when the world’s oil pro- structing new nuclear power sta- mere 6 percent of its electricity needs. The new genera- duction will reach its peak has not been resolved. tions and an energy mix is more tion of wind turbines are a massive 600 feet tall and T This is proving to be a frustration to many countries important to them than environ- while earlier versions bring back thoughts of Don and international businesses whose plans demand a mental concerns. Japan and Quixote in some landscapes, the latest generation mon- reasonable expectation of secure oil supplies at an South Korea, both Kyoto sters are very intrusive. Germany is seriously planning to acceptable price. When should an electricity generating Protocol signatories, are also grow renewable biomass as fuel sources on 15 to 20 per- company elect to change its fuel from oil or gas to coal building nuclear plants, but they cent of the agricultural land in the country. At the or even some renewable energy form? When should a can afford the expensive envi- moment none of these clean, renewable energy forms are merchant banker lighten up a multi billion-dollar oil ronmental benefits that nuclear expertVIEW economically competitive with hydrocarbons and they stock portfolio? When should an average citizen sell his represents. Roger Herrera are effectively subsidized, but people in Europe seem to SUV for a small, more efficient automobile? All those In Africa, any rise in the price be willing to pay the price. Gasoline in Britain presently decisions are made easier if one has accurate foreknowl- of oil for whatever reason, will be yet another disaster for costs between $5.80 and $6.00 per American gallon — a edge of when the peak in oil production will occur. a region barely out of the wood and dung fuel age. Africa cost which is accepted despite the fact that most of it is Unfortunately the answer is in dispute, but the nations does have lots of sunlight and renewable energy must be composed of tax! that constitute the European Union have taken the atti- part of its future if its population is ever to thrive. tude that peak oil is inevitable and if it doesn’t happen One cannot dismiss all the European energy plans as for 20 or 30 years, so much the better because that leaves European Energy Policy largely absent unsuitable for America. An obvious difference between more time to plan and make the necessary changes in the our two continents is the laudable efficiency of public A European Energy Policy is largely absent from the transportation in most of Europe. It makes ours look sad, region’s energy mix. In contrast, in America, which uses European Constitution despite attempts to formalize an twice as much energy per capita as Europe and con- and one day we will have to face up to the reality that car energy plan in that document for the whole region. The ownership is not a right, and that trains and busses can sumes about 25 percent of the world’s oil, there seems British were not willing to reduce their control of their little concern about future oil supplies. We are fighting a be made to be efficient and convenient. If Europe makes North Sea oil and gas and it was largely British opposi- a success of its renewable energy forms, the United war and $2 a gallon gasoline is a worry, but nuclear tion that gutted the energy section of the Constitution. power is not acceptable, new refineries cannot be built, States can benefit from their experience, so having But one thing which is common to all European coun- Europe lead the way with renewables is no bad thing. natural gas is OK, but is already in decline, and wind tries is the firm embrace of the Kyoto Treaty, which power should not be considered in my backyard. We have been debating an Energy Bill in Congress makes CO2 public enemy number one. The French have since 1992 without a successful conclusion. Thus we shamed the rest of the world with their unwavering com- America has little to worry about have no energy blueprint to map out our future in this mitment to nuclear electricity. It supplies 75 percent of country. The peaking of world oil production was not The truth of the matter is that if one considers this their needs, but they, together with Finland, are the only part of that debate, or, more accurately, was not taken issue in a selfish, nationalistic fashion, America has lit- Europeans who are willing to educate or ignore public seriously in that debate. Perhaps its newly recognized tle to worry about for a long time to come. Simple con- opinion on building new nuclear facilities for the future. importance may eventually result in a better, more real- servation could eke out our oil for decades. We have The rest of Europe will not accept nuclear as a clean istic, Energy Bill. untold coal and if we continue to ignore CO2 emissions, energy source and uses the unconvincing argument that Europe and America go separate ways on many issues peak oil might not be a major economic problem irre- the finite nature of uranium ore makes it an unacceptable from climate change to Middle Eastern policy, but we spective of when it occurs. The same is not true in choice. Germany, in particular, has disavowed nuclear are marketplace competitors for oil and gas. We should Africa, Asia or Europe. The rest of the world is very wor- because of the marriage of convenience of most of its therefore understand what Europe will do for its energy ried about peak oil. political parties with the minority Green Party. The future. It is relevant to ours. ● Asia, the world’s most populous continent, is in the Green Party has demanded the phase out of nuclear middle of head-spinning annual growth and China is power stations as part of its deal with the dominant par- Editor’s note: Roger Herrera attended a Berlin work- now the second biggest user of oil and the second largest ties and has persuaded the parliament to embrace wind shop meeting of The Association for the Study of Peak generator of electricity. Both China and India are build- power as its future clean energy source. Oil May 25-26. See his initial impressions in the May 30 ing new coal-fired electricity generating stations as fast issue of Petroleum News.

CANADA Calpine trust mulls strategy for reserves In the wake of Calpine Corp.’s decision to evaluate the sale of its reserves in Canada, Calpine Natural Gas Trust said it will consider strategic alternatives for public unit holders in the trust. California-based Calpine is weighing the possible disposal of assets in Canada and the United States along with the restructuring of some of its power con- tracts from a fixed price arrangement to a capacity and variable energy agreement. The Alberta reserves on the block include about 230 billion cubic feet equivalent of proved reserves yielding about 70 million cubic feet per day of production. The evaluation includes Calpine’s 25 percent stake in about 80 billion cubic feet equivalent of proved reserves owned by CNG Trust. Calpine Chief Financial Officer Bob Kelley said in a news release June 10 that the company’s equity gas reserves have “provided us with an attractive hedge to our fixed price contract portfolio. With a restructuring of certain of our fixed price power con- tracts and the potential sale of these natural gas reserves, we not only enhance our liq- uidity position, but we also expect to preserve the margin of our power contracts.” CNG Trust has hired independent financial advisers to help pinpoint and evaluate all potential strategic alternatives. Those could see the trust continue as an independent entity, a potential sale or merg- er of the trust or other options for enhancing public unit holder value. CNG Trust is currently producing 7,300 barrels of oil equivalent per day, above management’s target for the year of 6,700-7,200 barrels per day. —GARY PARK, Petroleum News Calgary correspondent PETROLEUM NEWS • WEEK OF JUNE 20, 2004 ON DEADLINE A5

● ANCHORAGE, ALASKA What’s ahead for Alaska oil and gas industry?

Highlights from the annual Alaska Oil and Gas Ken Sheffield Association-Anchorage Chamber of Commerce lunch- Kevin Meyers, president and CEO, Ken Sheffield, president of eon June 14 with predictions of what the industry could ConocoPhillips Alaska, said the potential of a Pioneer Natural Resources Alaska, look like in the state in 2014 (full story will be in June PATRICK JUDY gas pipeline is what is most exciting to said he predicts “modest step-out 27 issue). Alaskans. The 4.5 billion cubic feet a day of exploration with increasing partic- natural gas coming off the North Slope will be Rebecca Watson ipation from the independent com- panies” on the central North the equivalent of 700,000 barrels per day of “As I look into my crystal ball Slope, “paced westward expansion crude oil, he said. for 2014, I see us building on the

JUDY PATRICK JUDY with infrastructure” in NPR-A, successful sale we had in the low activity for the OCS and fron- Ken Sheffield, presi- 50,000 bpd of viscous oil from the National Petroleum Reserve- dent of Pioneer tier basins — while the future of Natural Resources North Slope. “We see potential for Alaska,” said Assistant Secretary the Arctic National Wildlife Alaska that to triple by 2014, or maybe of the Interior Rebecca Watson. Refuge is “in the hands of politi- more.” That will require an invest- PATRICK JUDY She predicted “continued sales,” cians. …” ment of some $10 billion, he said. production from NPR-A Alpine On the far-fetched side of the agenda, Sheffield said The industry is looking for satellites, and “Northstar entering Assistant Secretary of the Interior that if “operators achieve a significant capital cost technology to improve viscous its second decade of production, Rebecca Watson reduction,” if “we have a period of sustain higher oil production, he said, but capital Liberty oil flowing down the prices” and Alaska “initiates additional tax and royalty remains an issue because of the pipeline.” incentives” to spur development, “you could see great- high operating costs in Alaska, Like President Bush, the Department of the Interior Steve Marshall, ly increased exploration activity, and an influx of inde- and because “capital flows to the president of BP believes “that energy production and environmental pendent operators.” investments with the greatest Exploration (Alaska) protection are not competing priorities. We think Exploration wells in the state, currently some 10 to returns.” they’re dual aspects of a single purpose — and that is 15 a year, could increase “up to 40 or 50 wells a year.” BP will continue to work the technology challenges, to live well and wisely upon the earth,” she said. So Marshall said, and future successes in that area will along with increasing oil and gas development in John Barnes impact what North Slope activity is like in 10 years. Alaska, Watson said, the future for Alaska includes John Barnes, Alaska asset team But that future activity, he said, “depends just as much “birds continuing to nest, caribou herds migrating manager for Marathon Oil, noted on decisions being made today in Juneau.” freely and the North Slope residents continuing to hunt the Cook Inlet only has some 10 PATRICK JUDY successfully.” Kevin Meyers years of natural gas supply left. Frank Murkowski “The Cook Inlet needs a step Kevin Meyers, president and change in natural gas exploration CEO, ConocoPhillips Alaska, said Alaska Gov. Frank Murkowski and development activity,” he said. the potential of a gas pipeline is said he expects to see a gas PATRICK JUDY JUDY PATRICK JUDY Companies need some certainties what is most exciting to Alaskans. pipeline in operation by 2014, and to make investments, he said, and John Barnes, Alaska The 4.5 billion cubic feet a day of thinks the potential is “very while companies understand sub- asset team manager natural gas coming off the North strong” for spur lines to Valdez surface risk, accept commodity for Marathon Oil Slope will be the equivalent of and Southcentral, and said he price risk and work to control project risk, Barnes said 700,000 barrels per day of crude thinks “that you will see the state he believes “regulatory and tax uncertainties” are now oil, he said, and “will open up a participating in the gas pipeline as Kevin Meyers, presi- Alaska Gov. Frank “the most notable risk companies face in Alaska.” whole new business for us here in dent and CEO, an equity owner” of up to 12.5 Murkowski If these uncertainties can be resolved, and “if suffi- Alaska,” the business of looking percent, equal to state royalty gas. ConocoPhillips cient exploration occurs, and sufficient success is for natural gas. Alaska On the oil side, the governor said, companies pro- achieved, enough gas may be found to meet local utili- But the financial commitment ducing in the state “need to reinvest more of their prof- ty and industrial demands,” he said, but it will require remains huge, he said, with the tariff estimated to cost its in the state.” a higher price for natural gas to attract capital. shippers about $10 million a day. He predicted “a major discovery on the Alaska ConocoPhillips is working on federal fiscal legisla- Peninsula,” and also “a major discovery offshore of Steve Marshall tion, and federal enabling legislation is also required, ANWR, which will require the Department of Interior Steve Marshall, president of BP Exploration he said, as is cost cutting and a fiscal contract with the to drill ANWR to prove from whose reserves” the oil is (Alaska), talked about the success BP has had with vis- state of Alaska. being pumped. cous oil development at Milne Point and Orion, where But Alaska’s fiscal gap is also an issue… if the state “I also predict major discoveries in NPR-A, and “the latest well … was a quad-lateral, with four wells raises taxes, he said, “it will mean less investment, then we’ll be looking at boosting the oil flow through going off it” and “26,000 feet of reservoir contact — fewer jobs, less production, a poorer economy — and Taps, instead of merely holding it steady.” five miles in one well.” in the long run, less revenues for the state.” ● As for the future, the industry today is producing A6 FINANCE & ECONOMY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● LONDON, ENGLAND BP reserves may change under U.S. rules Company defends reserves estimates, but leaves open possibility reserves may differ somewhat when restated for SEC

By BRUCE STANLEY Kingdom, it is registered to do business in the United States from the British accounting method to the American system. Associated Press Business Writer and must therefore file its annual financial statements and U.S. investment bank Goldman Sachs has warned that details about its reserves with the SEC. BP listed its reserves BP’s reserve estimate for the SEC might come in 3 percent P PLC on June 14 defended its method of estimating at 18.3 billion barrels of oil and oil equivalent in its 2003 lower than the estimate it made under British rules — the oil and gas reserves, and said that its figures would not annual report. UK Statement of Recommended Practice. B show a “material” change when it recalculates them “We are confident in the reserves numbers that were “We don’t view either base of accounting as being supe- for submission to regulators in the United States. booked in our UK annual report, and we are confident that rior to the other. They are simply different,” the bank said in However, London-based BP left open the possibility that these numbers are compliant with SEC regulations in all an investor report it issued last week. its reserves might differ somewhat when it restates them in a material respects,” a company spokesman said, speaking on The bank said a 3 percent difference in reserve estimates filing with the U.S. Securities and Exchange Commission condition of anonymity. would probably have no financial implication for BP but later this month. said that it could affect investor sentiment, given the recent Reserves are a vital asset for most oil companies, and BP regularly files with SEC uproar over Shell. It was unclear how Goldman Sachs esti- firms have come under scrutiny for the way they estimate BP plans to submit information to the SEC in a document mated that BP’s reserves might vary by 3 percent. The bank their reserves since Royal Dutch Shell Group of Cos. down- known as a 20-F. In its filing, BP will reconcile reserves cur- did not immediately return phone calls seeking an explana- graded its oil holdings by 23 percent, or 4.47 billion barrels. rently booked under British accounting rules with U.S. stan- tion. Shell, BP’s biggest hometown rival, made four separate revi- dards, which analysts say are slightly more stringent. Market reaction would depend on the size of any down- sions of its reserves this year, shocking the markets and forc- BP has made 20-F filings for many years, but a person grade in BP’s reserves, said Deutsche Bank analyst J.J. ing the resignation of several top Shell executives. knowledgeable about the filings said there have so far been Although BP has its headquarters in the United no differences when the company reconciled its reserves see RULES page A7

● PARIS, FRANCE Worldwide oil demand continues to grow International Energy Agency ups its prediction for 2004 consumption, up 2.3 million barrels per day from ’03 PETROLEUM NEWS Growing demand in China also is The agency June 10 reported it expects total consumption of about 76 million he International Energy Agency has helping to push up global oil demand, global oil demand to average more than barrels per day. The revised projection revised upward its estimate of though the Paris-based agency cautioned 81 million barrels a day in 2004 and as pegs demand growth for 2004 at 2.3 mil- T worldwide oil demand for 2004, that China’s growth in oil consumption much as 82.6 million barrels in the heat- lion barrels per day over 2003, the largest pointing to continued strong con- could start to slow as the government’s ing-oil season of the fourth quarter. single-year increase since 1980, the sumption in the United States and former efforts to cool its overheating economy This year’s latest estimate shows agency said. Soviet Union nations. begin to take effect. steady growth from 2002’s worldwide In addition to heavy demand by U.S. consumers and former Soviet Union nations, the international monitoring agency said oil demand surged past expectations this spring in Brazil and India. Increased production from the mem- ber nations of the Organization of the Petroleum Exporting Countries will help meet the growing demand, the agency said, but noted that global terrorism con- cerns and uncertainty over supplies have kept prices high. “We take the commitments of these producers seriously,” the agency report said of OPEC’s pledge to boost produc- tion. OPEC already producing over quota OPEC production in May averaged 26.1 million barrels a day, almost 3 per- cent higher than April and about 11 per- cent above the cartel’s official quota. The member nations have agreed to boost their quota by 2 million barrels a day to 25.5 million barrels in July and to 26 million barrels in August, but even that would be short of their actual production in May. The question that market watchers are asking is regardless of the quota, how much can OPEC produce above its cur- rent flow to meet demand? Most of the OPEC boost in May came from Saudi Arabia and the United Arab Emirates, the report said, with the world looking to those two and other OPEC members to increase their flows as much as possible to help hold down prices. The International Energy Agency report noted that while OPEC produc- tion grew in May, non-OPEC flow held level — though non-OPEC production for the full year is expected to be up about 2 percent over last year. Higher production from Russian and African fields in May offset declines elsewhere in the world. ● PETROLEUM NEWS • WEEK OF JUNE 20, 2004 FINANCE & ECONOMY A7

● CALGARY, ALBERTA EnCana raises resource estimates, sales forecast By DON WHITELEY Brown lands. The rest Potential Committee, or EnCana Energy, the ago when EnCana laid out C$369 million Petroleum News Contributing Writer will be split among lead player among several companies now for leases in the area. It contributed to a Canadian Plains, tapping into the play. While they may differ one-day British Columbia land sale that all ith its money placed squarely on Canadian Foothills on the top end, all agree that it is bigger than by itself eclipsed the previous record for a unconventional natural gas and oil and Frontier, and anyone thought possible even as recently as full year. W sands development, Calgary-based other U.S. properties. two years ago. In order to speed up the development of EnCana Corp. announced on June The program is “It’s a huge play and it goes for hundreds these plays, EnCana pioneered the use of 15 that it had raised significantly both its expected to result in of miles literally,” says Mike Graham, wooden drilling mats that allow summer resource estimates and its 2004 sales fore- about 5,000 net wells EnCana’s president Foothills region, of the drilling on otherwise swampy terrain. In cast. The largest oil and gas producer in drilled. EnCana Chief greater Sierra play. “You just step out and it practical terms, that virtually doubled the Canada, company engineers now believe Growing in impor- Operating Officer keeps growing. It looks like its gas charged drilling season on British Columbia plays, EnCana’s properties contain an estimated tance in its unconven- Randy Eresman right from the NWT right into the Rocky which had been previously limited to win- resource of 16 trillion cubic feet, up 70 per- tional gas mix are two Mountains. It keeps growing.” ter freeze-up. cent from a year ago. Crude oil resource British Columbia Properties — Greater “Last year, we drilled 270 net wells in estimates have been raised by 40 percent to Sierra and Cutbank Ridge. Resource plays, EnCana bumped up resource estimates B.C., or about 25 percent of the provincial 850 million barrels. both are “tight gas” formations with low EnCana some months ago bumped up total,” Morgan said in a speech to the It is important to understand that these permeability and porosity, and require cost- its resource estimates on its own Greater British Columbia Board of Trade. “This are resource estimates, not proven reserves, ly production techniques to get the gas to Sierra lands, from an original 5 trillion year, we’ll do about the same.” and are subject to additional work and the flow. EnCana is counting on North cubic feet of gas in place and 2.5 tcf recov- Within five years, EnCana expects vagaries of oil and gas prices. Nevertheless, America’s tight supply/demand scenario to erable to 6.5 tcf in place and 4 tcf recover- longer-life, lower-risk projects like the two they indicate the company’s growing asset keep prices high enough to maintain eco- able. Graham estimates that the entire for- British Columbia properties will account base through both the drill bit and through nomic feasibility for these plays. mation could have more than 10 tcf. for 80 percent to 90 percent of the compa- acquisitions. Just how big it might be depends on Cutbank Ridge, a tight gas play near ny’s North American gas production, com- EnCana also raised its 2004 sales fore- whether you talk to the British Columbia Dawson Creek, British Columbia, raised pared with less than 60 percent last year. ● cast to between 725,000 and 765,000 barrels Energy Ministry, The Canadian Gas eyebrows internationally less than a year per day of oil and gas equivalent, up from 650,200 boe per day in 2003. In 2005 the company expects to produce between 810,000 and 860,000 boe per day. The company had originally forecast organic sales growth of 10 percent in 2004. But after a deeper look, EnCana hiked the organic growth rate to 12 percent in 2004, before the inclusion of the recent acquisition of Tom Brown Inc. and additional planned asset sales. North America gas spotlight While EnCana is active in both the North Sea and Ecuador, North America is current- ly in the company spotlight for both uncon- ventional oil and natural gas development. However, EnCana continues to peddle con- ventional Canadian properties that produce about 35,000 barrels of oil equivalent per day. “Our resource play strategy is delivering strong sustainable production growth,” said EnCana Chief Operating Officer Randy Eresman. “Natural gas production in the U.S. Rockies is up more than 25 percent in the past year, before the inclusion of Tom Brown production. In Western Canada, gas production is gaining momentum, up about 14 percent in the past year. In-situ oil sands production continues to grow, up about 35 percent in the past year.” Eresman went on to say that the increase in the company’s sales forecast can be tied directly to “strong performance from our resource plays.” Already in 2004 EnCana has drilled more than 2,200 net wells on its North American properties. Planned capital expenditures also up And in that vein, the company has boost- ed its planned capital expenditures for 2004 by US$850 million, with nearly one-third of that to be spent on the newly acquired Tom continued from page A6 RULES

Traynor, speaking from his office in Edinburgh, Scotland. He agreed that a 3 per- cent downgrade would probably have little impact. Traynor added that BP has been clear about the standards it uses to calculate its reserves. “I don’t think there’s any big scandal here,” he said. BP shares fell 0.8 percent to close at 478 pence ($8.70) June 14 on the London Stock Exchange. ● A8 FINANCE & ECONOMY/E&P PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● ROCKY MOUNTAINS GULF OF MEXICO Rockies energy firms targets for acquisition

By HEATHER DRAPER Analyst Stu Wagner of Petrie Dow Jones Newswires Parkman & Co., an energy research our down, two to go? and investment banking firm in In early June Prima Energy Corp. Denver, didn’t want to guess which F became the fourth Denver-based inde- gas company might go next. pendent oil and gas producer to be acquired since April. Analysts say it illus- trates again that large energy companies rec- Denver. ognize the resource potential in the Rockies. “As the list continues to dwindle, we “It just shows you that mid- to larger- believe visibility will continue to increase sized independents (oil and gas companies) for both Patina and Western Gas,” Tameron are desperate for growth and there aren’t wrote in a research note June 10. “Both of many places left you can get it,” said Dave these companies are takeout targets, and we Tameron of Stifel Nicolaus & Co. in Denver. view both as undervalued given recent trans- The Rocky Mountain region is the only action prices.” area left in the continental United States that Tameron doesn’t own shares in any of the hasn’t already had its natural gas resources companies mentioned and Stifel Nicolaus extensively exploited, he said. hasn’t provided investment banking services Petro-Canada, of Calgary, Alberta, to them in the last 12 months. agreed to pay $534 million, or $39.50 a Other potential Rocky Mountain targets share, for Prima. include Ultra Petroleum Corp. of Houston “I think Petro-Canada overpaid, to be and St. Mary Land & Exploration Co. of honest with you,” Tameron said. “But I think Denver. they really wanted to expand their Rocky Analyst Stu Wagner of Petrie Parkman & Mountain assets.” Co., an energy research and investment The deal follows the recent acquisitions banking firm in Denver, didn’t want to guess of Denver energy companies Tom Brown which gas company might go next. Inc. by EnCana Corp.; Westport Resources But he said the recent consolidation is Corp. by Kerr-McGee Corp.; and Evergreen part of an ongoing cycle in which executives Resources Inc. by Pioneer Natural of small private oil and gas firms take their Resources. companies public, build up value in the company, sell it and then look to start anoth- Patina, Western Gas may be next er private company. The Prima acquisition June 9 turned the “There is no doubt some of these man- spotlight on the few remaining independent agements (who recently sold their compa- oil and gas-producing companies left in the nies) are looking to start up private compa- Rockies. The two that Tameron thinks are nies,” Wagner said. “I would be surprised if next to go are Patina Oil & Gas Corp. and we don’t see some new private entities Western Gas Resources Inc., both based in formed in the next six months.” ●

DENVER, COLO. Delta Petroleum, Alpine Resources reach deal on 140 Bcfe of reserves Denver-based Delta Petroleum has agreed to buy more than 140 billion cubic feet of natural gas reserves from Alpine Resources, Delta said June 16. Specific terms of the transaction were not disclosed, but Delta said it is paying about $1.40 per thousand cubic feet of gas equivalent for the reserves. The deal is expected to close by June 30. Alpine’s properties currently produce about 20 million cubic feet of gas equiv- alent per day. Alpine operates properties that account for 95 percent of proved reserves that exceed 90 million cubic feet of equivalent. Total reserves were pegged at over 140 billion cubic feet of equivalent. About 50 percent of current daily production is natural gas and 50 percent oil, with oil representing about 55 percent of total proved reserves. Financing arrangements are expected to include an increase in bank debt and the possible sale of non-core properties, Delta said, adding that other alternatives also are being explored. —RAY TYSON, Petroleum News Houston correspondent exploration&production

WEEK OF JUNE 20, 2004 www.PetroleumNews.com PETROLEUM NEWS A9

● NORTH SLOPE, ALASKA NORTH AMERICA North American rig count up State releases results of by 36 to 1,460 in weekly report The number of rigs operating in North America rose by 36 from the previous week to 1,460 during the week ending June 11, accord- ANS facility sharing study ing to rig monitor Baker Hughes. The overall rig count was up by 74 compared to the year-ago period. By KAY CASHMAN Canada’s rig count alone increased by 17 to 273 from the prior Petroleum News Publisher & Managing Editor Example of Potential Costs week, but was down by 42 rigs compared to the same period last year. n June 15 the Alaska Division of Oil and Gas Although each case will have its own specifics, as an example of potential costs, a non-facility owner The number of rigs operating in the United States during the recent released the results of a study thats subject mat- week increased by 19 to 1,187 versus the previous week, and was up might expect to pay the following fees for Kuparuk O ter is considered critical to the future of oil pro- River unit facilities: by 116 versus a year ago. duction from Alaska’s North Slope. Land rigs alone rose by 16 to 1,070 from the previous week, while Conducted for the state by Petrotechnical Fee Typical range Per offshore rigs increased by six to 98 and inland water rigs decreased Resources of Alaska, the North Slope of Alaska Capital access $1.00-1.80 ...... BBL oil three to 19. Facility Sharing Study was the first undertaking of its Abandonment $0.10-0.20 ...... BBL oil Of the rigs operating in the United States during the recent week, magnitude, producing a hefty Plant liquid $0.09-0.15 ...... BBL liq. 1,024 were drilling for natural gas and 162 for oil, while one was manual that describes existing Plant gas $0.03-0.6 ...... MCF being used for miscellaneous purposes. Of the total, 744 were verti- North Slope facilities and their Drill site $0.11-0.15 ...... BBL liq. Excess water $0.04-0.07 ...... BBL ex.wtr. cal wells, 312 directional wells and 131 horizontal wells. processing potential. Ad valorem $0.10-0.16 ...... BBL liq. Among the leading producing states in the United States, Texas The 60-page report, with as gained the most rigs during the recent week, up by seven to 501. New many pages of attachments, Mexico’s rig count increased by five to 71. Wyoming picked up three Note: Backout could range from as low as 2% to as identifies the needs and desires of both facility owners high as 50%. The Prudhoe Bay unit satellites range rigs for a total of 77, while California picked up three rigs to total 25 and non-owner companies interested in producing oil from 2-6%; the Kuparuk River unit satellites range for the week. Louisiana’s rig count increased by two to 171, while on the North Slope and lays the groundwork for from 3-30% with an average of 9%. Oklahoma’s was up two to 170. Alaska was unchanged at seven rigs. designing a template for facility access for non-own- —RAY TYSON, Petroleum News Houston correspondent ers which benefits owners such as BP, ExxonMobil and ConocoPhillips all parties. need to be fairly compensated for the use of their facil- HOUSTON TEXAS Facility sharing ities and the likely temporary loss of their own pro- , is considered critical duction. And the state needs to keep oil production to the North Slope’s royalties and taxes high enough to avoid major fiscal Falcon acquires oil, gas mineral continued oil pro- deficits. duction. Major rights on Texas Gulf Coast facility owners and Lots of cooperation producers such as Exploration and production independent Falcon Natural Gas Among the companies providing information and BP and Corp. has acquired oil and gas minerals rights to 800 acres on the perspectives for the pilot project were facility owners ExxonMobil have Texas Gulf Coast and is in the process of securing an additional 1,900 BP Exploration (Alaska), ConocoPhillips Alaska, discontinued explo- acres in the region, the company said June 16. ExxonMobil, and independents Winstar, Armstrong, ration in the region, Falcon said it plans to raise additional capital in order to begin an Pioneer Natural Resources, Talisman (Fortuna), concentrating intense exploration program on the acreage, which is scheduled to AVCG, Kerr-McGee and Devon Canada. instead on techni- begin in the second half of this year. PRA’s Tom Walsh said he was surprised at the cally squeezing the Falcon’s acreage is located in one of the leading natural gas pro- amount of cooperation his firm received from North last drop of oil out ducing areas of North America and consists of mineral rigs adjacent Slope facility owners, who initially expressed some of declining fields to large proven deposits. The acreage specifically is located east of concerns about the study. such as Prudhoe Bay and Kuparuk. They have instead the Bob West field with estimated reserves of 1 trillion cubic feet of “We got a lot of cooperation from the facility own- focused their attention on exploration areas outside of natural gas, Falcon said. It also is situated close to the Lopeno field, ers, the North Slope producers. More than we expect- Alaska, which have the potential of 1 billion barrel- which is expected to produce up to 260 billion cubic feet of gas, the ed. We didn’t get particulars on current facility sharing plus discoveries, something geologists say is no longer company added. agreements with the exception of Ballot No. 255 for likely in the areas of Alaska that are open to oil and gas The deal includes a 100 percent working interest and a 70 percent Kuparuk, but we did get the means to work that out,” drilling. net revenue interest on the properties Falcon has acquired. Walsh said. Other companies, including independent oil and “Based on good quality seismic data and the presence of very When asked if the North Slope facility owners gas producers, have moved in to explore the North large gas fields in the same geographic setting, the reports we have were initially resistant to providing information, Slope, looking for the 50-500 million barrel fields the commissioned indicate that the prospect has an excellent potential of Walsh said, “Yes, it’s fair to say there were parties con- area is still thought to contain. These new companies, becoming a commercial gas field,” said Alan Aitchison, Falcon’s cerned that the state was stepping in at all and won- referred to as potential producers or third parties in the chief executive officer. dering what the state’s role was. They got over that study manual, need reasonably priced access to exist- —RAY TYSON, Petroleum News Houston correspondent ing North Slope production facilities. In turn, facility see STUDY page A10 A10 EXPLORATION & PRODUCTION PETROLEUM NEWS • WEEK OF JUNE 20, 2004 ALASKA DIVISION OF OIL & GAS

continued from page A9 as needed to resolve disputes between nego- tiating parties.” STUDY As a result of the information and per- spectives it collected over the last year from hurdle pretty quickly … when we made it facility owners, North Slope producers and clear that this had to be a cooperative effort non-owner North Slope explorers, PRA or it wasn’t going to happen. That really said that there was “mutual benefit to the eased people’s tensions.” facility owners and third-party producers” As the study progressed, he said “it to adopt “reasonable terms for facility became obvious that the study was good for access which are equitable and understand- everyone.” able.” The end result, Walsh said, is, “We came In other mature basins, such as the North up with a very factual and technical study Sea, facility owners offer a ballpark figure that provides a plat- — i.e. indicative tariff — for facility access form for individual cost to interested producers, the report said. companies to under- In its recommendations, PRA said the take their own eco- biggest “obstacle to successful negotia- nomic analysis.” tions” has been a “lack of trust” between the Two individuals North Slope facility owners and non-own- from the division, ers. A process for third party facility access Bill Van Dyke and that is “fair and transparent” will help to William Nebesky, Above is a generic facility flow diagram. The manual produced by PRA with the result of the North Slope facility sharing study contains facility flow diagrams for a number of North resolve this issue, PRA said. worked closely with Slope processing facilities. PRA on the study. TOM WALSH of the facilities have reached capacity for at mature fields and, because of its higher per- Further investigation and communication Nebesky, a commercial analyst, was also least one of the three. For example, Prudhoe centage of water and gas per barrel, holding should be pursued pleased with the results of the study and is in Bay, Endicott, Kuparuk and Lisburne have it to produce later. That could cost the facil- the process of putting the manual on the Other recommendations and conclu- room for additional oil; but all three have ity owners a bundle of money, especially if agency’s web page sions from PRA included the following: either reached capacity, or will soon reach oil prices drop in the future. (http://www.dog.dnr.state.ak.us/oil/) as a set • Nearly all of the existing North Slope capacity, for water and gas handling. PRA’s report said it was critical to reach of pdf files. He said the state will also pro- facilities have the potential for developing a As fields mature they tend to produce an agreement between all parties for a “sim- duce CDs and printed versions. precedent for facility sharing agreements. more water and gas than oil, Nebesky said. plified backout methodology.” The potential producers should expect to be Most facilities have reached The new fields that would be produced The report also said the state of Alaska able to negotiate an acceptable agreement. capacity for oil, gas or water by non-facility owners, he said, would tend “has options to help defray the impact of But the negotiations should be initiated by to produce a higher proportion of oil per bar- backout fees” and that implementing those the potential producers as early as possible. While many North Slope processing rel, thus likely necessitating backing out options “may prove to be a decisive factor in • The potential producers need to provide facilities have spare room for oil, water or some of the facility owners’ oil from more the success of North Slope facility sharing.” the facility operators with a well thought out gas handling, the study concluded that most development plan with as many crude char- Pipeline capacity also addressed acteristics as possible. Pipeline capacity was also reviewed as • The most critical technical issue is the part of the study. The results showed Alpine calculation of the backout volumes. The full; Kuparuk, Milne Point, Northstar and operators need to communicate the backout Lisburne/Point McIntyre nearly full; and methodology and be able to respond to Badami, Endicott and Prudhoe Bay with requests in a timely manner. available capacity. • The potential producers need to recog- Although concrete or detailed costs were nize backout as a valid concept, represent- not included, the PRA reference agreement ing real lost or deferred barrels to the facil- within the manual has examples of potential ity owners. costs associated with facility access. • Both parties need to be ready to com- PRA also studied how facility access promise on the backout methodology to was managed in other oil and gas provinces simplify the calculations for fields without and developed guidelines on how facility a detailed dynamic plant model. access for third parties might be conducted PRA also recommended that “further for the North Slope. investigation and communication should be “The guiding principles from the United energetically pursued to assure continua- Kingdom (U.K.) Code of Practice and tion” of the progress made by conducting Alberta’s Jumping Pound formula have the pilot study. ● much in common with the existing North Slope facility sharing agreements,” the Editor’s note: Watch for part two of this report said. “However, the U.K. and Alberta story in the June 27 issue of Petroleum contracts provide for regulatory interdiction News. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 EXPLORATION & PRODUCTION A11 A12 EXPLORATION & PRODUCTION PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● GULF OF MEXICO Global: No to further price cutting in U.S. GOM rig market By RAY TYSON day rate proposals in response to construc- Petroleum News Houston Correspondent tion tenders and would selectively respond to lump-sum tenders. ilfield service company Global Additionally, the company said it consol- Industries, which lost a chunk of idated its shallow-water pipe laying division, O money in the 2004 first quarter relocated the division to Carlyss, Louisiana, because of sagging rig markets, says it and released “significant office staff and will no longer slash prices in the U.S. Gulf of field personnel.” Mexico just to satisfy operator demands and However, Global’s diving and liftboat their “often onerous terms and conditions.” operations remain unchanged and based in In a letter to its customers, Global said New Iberia, Louisiana, the company said. that due to the depressed market and opera- tor pressures, it decided to restructure com- “We wish to thank those operators who pany operations and bidding practices in the are currently in support of ensuring the sta- U.S. Gulf. Details were not disclosed. bility and availability of the construction “As our market indicators reflect contin- industry,” Dore said. ued lack of near-term offshore construction opportunities, we must take … measures to Took big hit in first quarter ensure reasonable levels of profitability,” Global took a significant financial hit in William Dore, Global’s chief operator offi- the 2004 first quarter, reporting a net loss of cer, said June 8. $8.3 million or 8 cents per diluted share. Global Industries provides pipeline con- That came on the heels of a $1 million loss struction, platform installation and removal, in the 2003 first quarter. diving services, and other marine support to Revenues for the 2004 first quarter took the oil and gas industry in the Gulf of a bashing, plummeting 43 percent to $84.8 Mexico, West Africa, Asia Pacific, the million from $148.9 million for the same Mediterranean, Middle East and India, period a year earlier. The company said South America, and Mexico’s Bay of quarterly results were impacted by reduced Campeche. activity in all of its operating areas except Down 10 rigs from a year ago in Gulf Latin America. However, during the first four months of The number of drilling rigs operating in 2004, Global said it booked about $300 mil- the U.S. Gulf stood at 95 during the week lion of new work and that its backlog at April ending June 11, down 10 rigs compared to the same period last year. In contrast, the 30 was approximately $285 million com- number of land rigs operating in the U.S. pared to $146.9 million on the same date a stood at 1,070, up 122 rigs versus the year- year earlier. ago period. Dore told analysts in its quarterly confer- Global already has transferred assets ence call that the company “was making from the U.S. Gulf of Mexico to the Bay of many positive changes in our organization, Campeche and the Mediterranean, and the which include streamlining operations and company said it would continue to redeploy enhancing project execution.” He said the assets as markets warrant. company expected to return to profitability For one, Global said it plans to submit rig in 2004. ● WASHINGTON, D.C. DOE seeks ‘small-footprint’ technologies On June 16,the U.S. Department of Energy unveiled a major new research and development initiative to develop “microhole” technologies — those that use portable drilling rigs with a smaller footprint and lower environmental impact. The program is designed to bring about faster, cheaper and safer oil and gas projects, DOE said. The total value of the six projects is nearly $5.2 million with DOE providing $3.7 million and industry partners contributing more than $1.4 million. The six new projects are: • Gas Production Specialties — This project will develop technology to overcome the problems of mature, low-pressure reservoirs that have high amounts of remaining gas by using an artificial lift system consisting of pumps to produce the gas. • Stolar Research — Researchers will develop technologies to guide the drill bit when drilling horizontal wells and transmit rock and fluid information to the surface as it is collected. Radar will be used to determine the location of the drill bit. • Baker Hughes Inteq — The project will design and fabricate a drill bit steering device and a tool that measures the electrical resistivity of the rock. Development of these tools will provide a modular and effective coiled tubing drilling system that enables higher, more effective production from existing domestic oil fields. • Schlumberger IPC — Researchers will develop and build a microhole coiled tub- ing drilling rig that is designed specifically for the abundant shallow oil and gas reser- voirs found in the lower 48 states. The rig will be designed to improve the environ- mental and economic performance of shallow well drilling. • Western Well Tool —The project will develop a downhole tractor tool that helps transport the drill bit and measurement tools into long (3,000+ feet) sections of hori- zontal wells. The tractor is expected to cost 25 percent to 50 percent less than conven- tional drilling methods and allow faster drilling of small-diameter horizontal sections. • Bandera Petroleum Exploration — Researchers will develop and fabricate a drilling technique that uses a highly abrasive slurry jetting technique to drill through rock. One advantage of this technique includes faster drilling through a range of rock hardness. natural gas

WEEK OF JUNE 20, 2004 www.PetroleumNews.com PETROLEUM NEWS A13

● NORTH SLOPE ALASKA NORTHERN CANADA Deh Cho threatens to block Can gas hydrates become part Mackenzie gas line if not on environmental review panel of North Slope gas portfolio? The Deh Cho First Nations, whose land covers 40 percent of the proposed 800-mile Mackenzie Valley pipeline route, says it will block Collaborative work by BP Exploration (Alaska) and the U.S. Department the natural gas pipeline unless it gets a seat on an environmental joint of Energy aimed at assessing potential of unconventional resource review panel. (See related story on page 1.) According to a June 11 press release by the Deh Cho, the pipeline By KRISTEN NELSON review agencies broke an “agreement-in-principle” reached on May Petroleum News Editor-in-Chief Want to know more? 28 to include the Deh Cho “as a full party” in the joint review panel that will conduct an environmental assessment of the proposed gas as hydrates are the one unconventional natu- If you’d like to read more about gas hydrates line. in the Arctic, go to Petroleum News’ Web site ral gas resource that has not yet been proved and search for some of the articles published A news release According to a June 11 press release G economic, but a collaborative project by the on the subject in the newspaper in the last from the May meeting by the Deh Cho, the pipeline review U.S. Department of Energy and BP few years. said, “Both sides have Exploration (Alaska) could move Alaska North agreed to form a agencies broke an “agreement-in- Slope gas hydrate research into a test phase at the Web site: www.PetroleumNews.com working group that principle” reached on May 28 to Milne Point unit. 2004 will examine ways to include the Deh Cho “as a full But the project isn’t there yet, says Bob Hunter ● May 30 Anadarko temporarily trims Alaska involve the participa- party” in the joint review panel that of ASRC Energy Services. Hunter, formerly with staff tion of the (Deh Cho) BP Exploration (Alaska), updated the Alaska ● March 28 How much is left? will conduct an environmental ● in the joint review Geological Society in early May on phase 1 of the March 7 Hot Ice finds gas, but no gas panel.” A recent news assessment of the proposed gas line. hydrates…. project, due for completion this October. ● Feb. 29 Alaska on the brink story in the Calgary Phase 1 is a desktop study, he said, and only if ● Feb. 15 Proposed bill would change leasing Sun reported that Mackenzie Valley board director Vern Christensen results are positive from that phase would the study rules said Norwegian misunderstood the intent of the working group. move on, with a possible test project in phase 3 in “(The agreement) was an undertaking to examine ways in which 2003 2006. ● the Deh Cho could participate in the process,” he said. “I think the Dec. 28 Technical ‘breakthrough’ in hydrates Gas hydrates — natural gas combined with turns heads (Deh Cho) took it as a commitment when there just wasn't enough water in a clathrate structure — have been known ● Dec. 14 Participants call Mallik gas hydrate knowledge or analysis to go there.” on the North Slope since the 1970s, Hunter said, well success At a follow-up meeting held June 11 in Yellowknife, “representa- and the U.S. Geological Survey “has led hydrate ● Aug. 17 ‘Tis the season for drilling tives of the Canadian Environmental Assessment Agency, the ● April 27 BP quantifies gas hydrates research on the North Slope for over two decades.” ● Mackenzie Valley Environmental Impact Review Board and the April 13 Tapping hot ice In a spring 2004 DOE newsletter Hunter said ● April 6 Gas pipeline incentives back in feder- National Energy Board refused to even discuss including the Deh Cho Timothy Collett of the USGS has estimated that al energy bill First Nations as a party to the Joint Review Panel,” the Deh Cho said there may be as much as 590 trillion cubic feet of ● March 9 Anadarko’s Arctic platform assem- in the release. natural gas trapped in clathrate hydrates on the bled, Hot Ice…. “This is a classic case of negotiating in bad faith. We had a deal North Slope, with an estimated 44 tcf to 100 tcf of with the chairs of all the review boards to appoint a technical working 2002 that resource under existing North Slope infra- ● Nov. 17 DOE funds CO2 injection research group to figure out how to include the Deh Cho as a full party to the structure. ● Nov. 10 Hot ice project: Anadarko to core environmental assessment. Our members of the technical working While gas hydrates are not a priority for BP hydrate well…. group went to the June 11 meeting expecting to draft an agreement worldwide, Hunter told the Alaska Geological ● Nov. 10 Feds hand out $1.17 million in ener- based on the May 28 understanding,” Grand Chief Herb Norwegian gy grants…. Society, BP Exploration (Alaska) is interested ● was quoted in the release. Oct. 27 A portable exploration solution because of the potential for gas hydrates under ● Oct. 20 Anadarko cuts hydrate project back “If the review boards sign an agreement that excludes the Deh existing fields. to one well Cho, we will be going to court. Unless the Deh Cho becomes full ● Sept. 15 B.C. fishermen land huge energy partner in the environmental assessment, the pipeline might as well Most technically and economically challenged source ● May 5 BP-led research project investigates stop at the Sahtu border,” added Chief Keyna Norwegian of Liidlii “Gas hydrates do have the best storage capacity Kue First Nation in Fort Simpson. gas hydrate…. of all unconventional gas resources, but they are ● May 5 CO2 demonstration project proposed The release said court action “may include an assertion of aborig- also the most technically and economically chal- at Milne Point inal title and rights, as well as a charge that the review boards are fail- lenging,” Hunter told the society, and he noted they ● Aug. 4 Wainwright’s coalbed methane ing to consider cumulative effects of the future gas fields needed to are the only unconventional gas resources not yet potential huge…. ● April 21 ‘Very encouraging’ results from feed the pipeline over its 25-year plus lifespan.” economic. Editor’s note: The Deh Cho have refused to join other Northwest Mackenzie Delta…. While gas hydrates “contain four to more than ● March 10 Maurer, Anadarko to drill gas Territories aboriginal communities in the Aboriginal Pipeline Group 40 times the amount of gas as seen in other uncon- hydrate wells…. until their land claim is settled. ventional gas resources,” like any gas resource they —PETROLEUM NEWS see HYDRATES page A16 A14 NATURAL GAS PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● COOK INLET, ALASKA State gets mixed reviews on proposed Cook Inlet sale of royalty in kind natural gas Agrium urges state to pursue sale, citing economic importance of fertilizer plant to Alaska’s Kenai Peninsula

By KRISTEN NELSON events increasing costs to consumers. Petroleum News Editor-in-Chief The sale of royalty gas to Agrium would also, the company said, “act as a catalyst to he volume of Cook Inlet natural gas is spur new gas development in the Cook not changed by state ownership of a Inlet” because it would increase the demand royalty interest, typically 12.5 percent. T AGRIUM OF COURTESY for gas, thus stimulating exploration and But if the state sold its royalty gas, development. rather than accepting payment for the gas If the Agrium plant is shut down, the when producers sell it, the volume of natural company said, there would be decreased gas available to individual customers could demand for gas, an increased available sup- change. ply and “elimination of the only market If the state sold its royalty gas to Agrium accessible to new entrants.” that might help keep the Nikiski fertilizer plant open, but it wouldn’t solve long-term Agrium would take all state’s gas supply problems, the Alaska Department of Agrium said it would take all the state’s Natural Resources royalty gas, but wants to be able to opt out of Division of Oil and taking the royalty gas from some fields, Gas was told when it such as those where it already receives the Agrium’s Nikiski fertilizer plant asked for “expressions gas under its gas sales agreement with of interest” from par- need to find additional supplies. They fear quate gas supply.” The company said it proj- Unocal. ties who would be such a sale would simply shift the currently ects it may have to close the Nikiski plant by Agrium also said it “would expect to interested in — or affected by — a sale of short-supply of gas to their customers. the end of 2005 if it can’t purchase enough keep the state whole on the value it receives the state’s Cook Inlet royalty gas. Cook Inlet’s major natural gas producers natural gas to keep the plant running. today” for its royalty-in-value gas, but The state can either sell its royalty gas or — ConocoPhillips Alaska, Marathon Oil Natural gas is the feedstock for ammonia requires a gas supply price that allows it to take it in value; it currently takes it in value, and Unocal Alaska — oppose the idea, and nitrogen, fertilizers which Agrium sells be internationally competitive in the fertiliz- i.e. the royalty gas is sold by producers along questioning whether such a sale would be in on the world market. The state’s royalty gas, er market.” with their own gas, and the producers pay the state’s best interest and citing transporta- Agrium said, could provide “a portion of the The company said it believes transporta- the state for the portion of the gas that is roy- tion difficulties in moving royalty gas. gas” required to run the facility. tion “could represent the largest impedi- alty. Other than Agrium and the Kenai Agrium said the McDowell Group report ment” to the sale of the state’s Cook Inlet Responses were due at the beginning of Peninsula Borough, those in favor of at least shows an economic multiplier of more than royalty gas, because many of the gas April, and the state received a number of evaluating a royalty gas sale are Forest Oil, $9 for every thousand cubic feet of natural pipelines in the Cook Inlet basin “are not them. primarily an oil producer in Cook Inlet, gas consumed at the plant. Even at 2003 lev- common carriers and would not be available which told the state it could use royalty gas els, 70 percent of capacity, the benefit of the to all potential purchasers of RIK gas on an Mixed responses as fuel gas at its oil production facilities, and fertilizer plant to Alaska’s economy was equitable basis.” Agrium U.S. Inc., which needs low- Fairbanks Natural Gas, which ships Cook $350 million a year, the company said. The Agrium said it would seek the state of priced natural gas for its Nikiski fertilizer Inlet natural gas to Fairbanks as liquefied plant accounts for more than 650 direct and Alaska’s “support in having all required plant, and has said it may be forced to close natural gas. indirect jobs, and more than $30 million a lines designated common carriers in a time- the plant because of a decline in the gas it year in payroll. ly manner.” And, it said, it would expect that can purchase at industrial rates, is in favor of Economic value of Agrium A shutdown of the plant would increase designation to have occurred before the the state offering its Cook Inlet royalty gas Agrium would like to buy the state’s the seasonal swing in Cook Inlet gas pro- beginning of any royalty gas sales. for sale, as is the Kenai Peninsula Borough, Cook Inlet royalty gas, and cited a report the duction, Agrium said: “This would result in If, however, the state sold royalty gas to a home to the Nikiski plant. company had done by the McDowell Group additional cost to the consumer for their gas party other than Agrium, it “could jeopard- Chugach Electric Association, Enstar on the impact closing the fertilizer plant as the cost of infrastructure will then be ize Agrium’s existing gas supply” because Natural Gas and Municipal Light & Power would have on the Kenai Peninsula’s econo- borne by fewer customers.” And with the gas available to the plant would be — Southcentral Alaska’s major electric and my. increased seasonality of gas use, money may reduced by the loss of royalty gas the com- natural gas utilities — see a royalty gas sale Since 2001, Agrium told the state, it has have to be invested in storage facilities and pany receives under its sales agreement with as reducing the gas available to them, and experienced a 30 percent decline in its pro- there may be operational difficulties with Unocal and would interrupt other commer- accelerating the date at which they would duction “due to an inability to secure ade- wells that are shut in part of the year, both cial purchases the company makes. “Both could hasten the demise of the Kenai plant,” Agrium told the state. Interest for fuel gas, LNG The Kenai Peninsula Borough told the state that, while a royalty sale to Agrium might not solve the plant’s supply problems, the borough believes “it is important that this option be fully explored through the process of a best interest finding and solici- tation for offers.”

see REVIEWS page A15 PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NATURAL GAS A15

● ANCHORAGE, ALASKA Gas authority to focus on spur line, LNG Alaska Natural Gas Development Authority will share some contract work with Alaska Stranded Gas Development Act

By KRISTEN NELSON tracting plan, $300,000 in proposed Heinze said he will have access to results of Petroleum News Editor-in-Chief work will probably not be done by the authority because of stranded the stranded gas act studies, and “there are he Alaska Natural Gas Development Authority gas work. several things they are now looking at that I board was told June 14 by its chief executive offi- FORREST CRANE don’t need to look at anymore on our own LNG and spur line the focus T cer, Harold Heinze, that some of the contract work initiative and our own nickel.” the authority has proposed to do will be done under The authority will focus on a the Alaska Stranded Gas Development Act. spur line to bring natural gas to information defining an alignment from Glennallen. Heinze said at the board’s monthly meeting in Southcentral Alaska and the LNG Heinze said there’s a lot that isn’t known yet about a Anchorage that while contracts specific to liquefied nat- project, Heinze said. … the preliminary spur line, such as whether “we have to go to Glennallen, ural gas and a spur line to Southcentral should be signed “Steve (Porter) and I have look the authority Delta, Fairbanks or Prudhoe Bay to get the gas.” The off on by Deputy Commissioner of Revenue Steve Porter has taken at a spur agreed that we’re going to do line, “says we can other thing that isn’t known is how much gas will be the week of June 21, a number of other proposals “relat- everything we want to move that deliver gas to Cook needed in the future in Southcentral Alaska. But, he said, ed to business structure” and finance will be done as part spur line project forward. So that is Inlet at today’s the preliminary look the authority has taken at a spur of the state’s stranded gas studies. prices; nobody else a priority,” he said. “The other is making that line, “says we can deliver gas to Cook Inlet at today’s Heinze said he and Porter, who must sign off on thing that we are also looking at is promise — every- prices; nobody else is making that promise — everybody authority contract work, have sorted out which work the the LNG project, and those con- body else’s promise else’s promise is double,” so the authority’s spur line is authority needs to do and which work will be done as is double,” so the tracts that are necessary to move it authority’s spur line “kind of an important option.” part of work for stranded gas act negotiations. forward, and the reason for that is is “kind of an And what’s important to the state right now, he said, is The development authority has issued contracts total- that all that work covers both us and important option.” getting the spur line project to the point where a condi- ing $138,600 and most of that work has been completed. —Harold Heinze, the port authority,” so LNG studies Alaska Gas tional right of way could be granted. The authority was established by Ballot Measure 3 in will provide the state with informa- Development The board reviewed a draft outline of the report the November 2002 election to determine feasibility of a tion applicable to both projects. Authority CEO required under Ballot Measure 3, which called for estab- state liquefied natural gas project at tidewater and a spur Board member John Kelsey of lishment of the authority, by Mike Powalski, hired as fea- line to bring natural gas to Southcentral Alaska. Valdez asked Heinze if he was “satisfied that there’s not sibility report coordinator. The board plans to issue the a bias in the stranded gas act work?” Authority will share in stranded gas act report in August, and will discuss a draft at its July meet- Heinze said that if he isn’t comfortable with the scope ing. Of $700,000 in the authority’s contracting plan, of work or the contract, he has the ability to go out on his Heinze said he had “total concur- own, and he assured Kelsey that he Warwick, Heyworth reelected rence from the administration” to Heinze said he and Porter, who has “been scrupulously careful to The board reelected Andy Warwick of Fairbanks as move ahead with a number of con- must sign off on authority avoid the advice of any of those chairman and Scott Heyworth of Anchorage as vice tracts: liquefied natural gas plant that have indicated a strong bias chairman. The men were first elected last June at the concept design ($25,000); Yukon contract work, have sorted out against the LNG project.” which work the authority needs board’s first meeting. Pacific Corp. permit review Porter has the responsibility, Warwick asked if there was any concern by the board ($25,000); spur line cost estimate to do and which work will be Heinze said, to make sure that there that the chairman be in Anchorage with Heinze, the ($25,000); Jones Act alternatives done as part of work for stranded isn’t duplication on contracts relat- authority’s CEO, but that did not seem to be an issue with ($25,000); spur line rights of way gas act negotiations. ed to the gas issue. The state is board members. Warwick is a former state legislator and and permits ($25,000); and spur line going to spend a lot of money commissioner of the Department of Administration; utility financing ($25,000). studying overall financing issues, Heyworth led the public campaign for Ballot Measure 3. Heinze said issues around business structure are ques- and the authority will be able to share the results of that The board also held an executive session, and Heinz tions the state is asking “in a much more general way” work. told Petroleum News June 15 that the board voted to give and so a lot of the fundamental work on business struc- “But when it comes to financing the spur line I will him a 20 percent raise in base pay. Heinze was hired last ture and finance will be part of what will probably be hire my own contractor to do that work.” summer at $78,828 a year, and told the board at its May some major contracts for the stranded gas act negotia- meeting that he wanted a significant raise, citing the tions. “It’s not worth spending $50,000 when they will Spur line issues $175 an hour the Legislature is paying its gas line con- probably spend a couple of hundred thousand dollars,” On spur line routing issues, the development authori- sultant and the $3,500 a day the state is paying its lead he said. ty will focus on Glennallen to Sutton, Heinze said, negotiator in gas line talks with North Slope producers. Heinze said he will have access to results of the because the state has on file some $1.5 million worth of Board Chairman Andy Warwick appointed board stranded gas act studies, and “there are several things work done by Mapco when it was considering a product members Dan Sullivan and John Kelsey to a subcommit- they are now looking at that I don’t need to look at any- line from Fairbanks to Anchorage. That information pro- tee to discuss CEO status and compensation. ● more on our own initiative and our own nickel.” vides sufficient information “to define an alignment of Of the $700,000 in the development authority’s con- the pipe” for that route, he said, but what is lacking is continued from page A14 REVIEWS

Forest Oil said it “is not prepared at this time to discuss price provisions or other parameters” of a royalty gas sale that would “engage Forest’s participation,” but encour- aged the state to proceed with an evaluation. Forest’s interest is in gas necessary to pro- duce crude oil. “The availability of fuel gas, and at a price that will not adversely affect operating costs, will become an increasingly impor- tant issue regarding the producing life of the oil fields in Cook Inlet,” the company said. And Fairbanks Natural Gas, which has a small liquefied natural gas operation at McKenzie Point and sends LNG to Fairbanks by truck, said it would be “very interested in a long-term gas supply agree- ment” with the state, and encouraged the state “to make its gas available to in-state users.” ● Editor’s note: Part 2, which will appear in the June 27 issue of Petroleum News, con- tains the views of Cook Inlet natural gas producers, the other industrial user, the liq- uefied natural gas plant at Nikiski, and area utilities. A16 THE REST OF THE STORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004 continued from page A1 Want to know more? “For CNG, the economics are very CNG strongly correlated with distance.” If you’d like to read more compressed natural gas (CNG), go to Petroleum News’ —Matthew Palmer, compressed natural gas web site and search for the following articles. ment at EnerSea Transport LLC in project manager, ChevronTexaco Global Gas Houston. Web site: www.PetroleumNews.com Deliveries also would occur at offshore U.S. markets and possibly from East Asia receiving terminals, avoiding all of the 2004 sources to Far East buyers. community controversy of LNG regas ter- ● June 13 The deal of last resort ● “The main advantage of CNG is the minal site selection, Dunlop said. June 6 Husky eyes Newfoundland gas from White Rose…. ● Jan. 25 New Jersey’s dual-fuel cars filling up with petrol, not…. low cost at which it can transport gas over “We’ve been going full tilt on this ● Jan. 11 Jurisdictional feuds slow Atlantic Canada’s progress distances … more cost-effective than about three years now,” he said. And LNG,” said a 2003 research paper at the although no one has built any CNG 2003 University of Houston. tankers or signed up for a commercial ● Dec. 14 U.S. players jettison Canadian assets ● EnerSea’s Dunlop also sees 2008 as project, the company is optimistic of Sept. 28 Newfoundland explores CNG for offshore…. ● May 11 Bill to expand coal lease acreage moving the earliest in-service date for a full-size future prospects, Dunlop said. EnerSea is CNG operation. In addition to developing one of several companies pursuing CNG 2000 the loading and unloading technology, the development. ● May 28 BP Amoco executive sees natural gas-powered future company is working on tanker design, “We see CNG as being a good, region- too. al solution” for moving stranded gas to While EnerSea said CNG might be nearby markets, he said. “We don’t see gas per day to New England states. The San Ramon, Calif. able to compete at distances of up to ourselves as competing head to head with pipe carries Sable Island offshore gas LNG projects tie up 80 percent of their 3,500 miles and ChevronTexaco’s Palmer LNG,” which can be shipped economical- from its undersea pipe landing at Nova investment in the liquefaction and regas said 2,500 miles is the outer range, ly thousands of miles to market. Scotia south into Massachusetts. facilities, Palmer said. “With CNG, it’s Wright cautions both those numbers are CNG carriers would store Though CNG tankers could conceiv- just the opposite. … You have very small optimistic. “I would say under 500 nauti- ably carry more than 1 billion cubic feet investments at the two ends of the chain.” cal miles works best.” gas in rows of large pipes of gas, most expect the typical ship to Because 90 percent of the cost of a EnerSea’s design is comprised of rows hold about 700 million to 800 million CNG project is tied in the ships, it’s essen- Newfoundland interested and rows of CNG bottles, essentially cubic feet of gas, Wright said. That com- tial to keep the tankers moving and mak- in moving its gas large-diameter steel pipe segments. By pares to almost 3 bcf aboard a typical ing money with short deliveries instead of Newfoundland is taking a hard look at linking the bottles, or closed pipes, into LNG tanker. CNG ships probably would sailing long distances at sea as LNG CNG because it could help get its 10 tril- modules connected by piping, ships could cost about the same as an LNG tanker, he tankers, he said. lion cubic feet of discovered offshore be sized to meet individual market needs. said, which is why it’s important to keep And because most of the investment is reserves to market, Wright said. Ice, There’s enough interest in the technol- the delivery distance within an affordable in ships, not shore-based facilities, the remoteness and cost make it hard to build ogy that gas production companies and range. assets could be moved to new markets to pipe from the offshore fields, he said. the province of Newfoundland have follow the need or as smaller fields stop Husky Energy Inc.’s White Rose field, joined with the Memorial University of Short distance is best for CNG ships producing. for example, is more than 220 miles from Newfoundland to create the Centre for For example, it would take two CNG shore. An undersea pipe to landfall would Marine CNG. tankers to average 500 million cubic feet ChevronTexaco following be an extremely costly proposition, the “It’s about a month old, officially,” said of gas per day from the offshore fields CNG development university official said. Jim Wright, director of major research east of Newfoundland to the end of the ChevronTexaco believes a small, White Rose holds an estimated 2.7 tcf partnerships at the St. John’s, pipe system in Nova Scotia, Wright said. barge-mounted CNG prototype could be of gas. Husky Energy last month asked Newfoundland-based university. “The From there, a pipe could take the gas to operational in maybe two years, but it will for proposals to develop the gas field, stimulus for this really came from the U.S. East Coast markets. Shipping the gas be 2008 to 2010 before a full-size com- stating that CNG transport “has poten- provincial government.” by CNG carrier directly to Boston or New mercial venture could get under way, tial.” CNG tankers could shuttle back and With government and private funding, York City would take three or four ships, Palmer said. “I would hope forth from an offshore production plat- the center established itself as a nonprofit he said. ChevronTexaco would be an early mover.” form to shore, feeding the gas into a corporation — the world’s first research Anything farther could mean too much Although the company isn’t doing its pipeline for delivery to consumers down and development center for large-scale of an investment in the ships. own research into CNG transport, it is fol- the Eastern seaboard. CNG marine transport and storage tech- “For CNG, the economics are very lowing the work of others and sees possi- The Sable Island fields, which are less nology. Partners include the Maritimes & strongly correlated with distance,” said ble applications in moving gas between than 140 miles from shore, use an under- Northeast Pipeline, which went online in Matthew Palmer, CNG project manager African nations, within the Mediterranean sea pipe to move gas to landfall. ● 1999 to move 530 million cubic feet of for ChevronTexaco Global Gas, based in Sea, from Caribbean production fields to continued from page A13 and water to form the clathrate structure. but also includes “looking at drilling, pro- “Gas hydrates are stable in onshore duction and completion, reservoir and The Phase 1 objective is to HYDRATES regions … mainly beneath permafrost petroleum engineering studies to deter- characterize reservoirs and fluids, areas where we have sufficient cooling of mine reliable methods for operations “leading to estimates of the require a source, a reservoir system and a the geothermal gradient and pressure in within hydrates,” Hunter said. trap, Hunter said, although “hydrates can recoverable reserve and the geothermal gradient to allow forma- A petroleum system, industry infra- help form their own seal” by filling in commercial potential, and the tion of gas hydrates,” he said. structure and access to acreage are all reservoir porosity. definition of procedures for gas required for hydrate production, and in For hydrates to form, you need to be Phase 1 the United States those areas are the Gulf hydrate drilling, data acquisition, “within the pressure stability region” for of Mexico and onshore Alaska. completion and production.” hydrates, Hunter said: both temperature Phase 1 of the DOE-BP project “The North Slope is the premier area —Bob Hunter, ASRC Energy Services and pressure conditions are required for involves characterizing the resource and in the world for a gas hydrates project at formation and you have to have both gas reservoir fluids, primarily at Milne Point, this time,” he said, and provides both gas reservoir, stratigraphy, structure, conti- hydrates and associated free gas. nuity, quality, variability and geophysi- But sufficient resources have to be cal and petrophysical property distribu- “identified and verified” and viable pro- tion. duction methods have to be economic. The Phase 1 objective is to character- Complete reservoir ize reservoirs and fluids, “leading to esti- mates of the recoverable reserve and characterization important commercial potential, and the definition In the DOE newsletter Hunter said of procedures for gas hydrate drilling, results of the study so far highlight “the data acquisition, completion and produc- importance of a complete characteriza- tion.” tion of reservoir and fluid compartmen- Phase 2, November 2004 to talization prior to selecting” sites for December 2005, and Phase 3, January drilling or protection testing. Once initial 2006 to December 2006, would occur if gas hydrate/free gas plays are identified justified by the results of Phase 1, and within the study area, you need “reser- would integrate well, core, log, and pro- voir modeling evidence that depressur- duction test data from additional wells. ization of free gas zones can allow adja- “Ultimately,” Hunter said in the DOE cent gas hydrates to dissociate at signifi- publication, “the program could lead to cant rates.” Also needed is a laboratory development of a gas hydrate pilot proj- method that measures “relative perme- ect in the Milne Point area, and the deter- ability in hydrate/sediment mixtures.” mination of whether or not gas hydrates Gas hydrates at Milne Point are being can become a part of the ANS gas studied to determine the extent of the resource portfolio.” ● PETROLEUM NEWS • WEEK OF JUNE 20, 2004 ADVERTISER INDEX A17 Companies involved in North

America’s oil and gas industry Business Spotlight By PAULA EASLEY ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS

Kenai Aviation ...... A14 A Kenworth Alaska Aeromap Kuukpik Arctic Catering Aeromed

Kuukpik/Veritas PHOTO COURTESY AES Lynx Enterprises Kuukpik - LCMF ...... A9 Agrium ...... A14 Lounsbury & Associates Air Logistics of Alaska Lynden Air Cargo...... A20 Alaska Airlines Cargo Lynden Air Freight...... A20 Alaska Anvil Lynden Inc...... A20 Alaska Coverall Lynden International ...... A20 Alaska Dreams Lynden Logistics ...... A20 Alaska Interstate Construction Lynden Transport...... A20 Alaska Marine Lines ...... A20 Mapmakers of Alaska Alaska Massage & Body Works ...... B9 Marathon Oil Alaska Railroad Corp. Daniel C. Huston, vice president Marketing Solutions Alaska Steel Mayflower Catering Alaska Tent & Tarp MEDC International Hunter 3-D Inc. Alaska Terminals MI Swaco Alaska Textiles Hunter 3-D, located in Houston, Michael Baker Jr. Alaska West Express Texas, was founded by Dan and Holly Millennium Hotel Alaska’s People Huston in 1996. It provides superior, MWH Alliance, The state-of-the-art geophysical services. MRO Sales Alpine-Meadow Recent projects include 3-D AVO analy- American Marine...... A13 sis, 3-D seismic inversion, and 3-D Anchorage Hilton N-P grav/mag analysis. Its Web site is Arctic Controls www.hunter3dinc.com. Nabors Alaska Drilling ...... A7 Arctic Fire & Safety Riding out the 1964 Alaska earth- NANA/Colt Engineering Arctic Foundations quake intrigued Dan enough that he Natco Canada Arctic Slope Telephone Assoc. Co-op pursued the geophysics field. He Nature Conservancy, The ArrowHealth worked as a surveyor on the trans- NEI Fluid Technology ASRC Energy Services Alaska pipeline for five years and in Nordic Calista ASRC Energy Services 1981-83 he worked for the U.S. North Slope Telecom Engineering & Technology Minerals Management Service in Northern Air Cargo ASRC Energy Services Anchorage. While obtaining his masters Northern Transportation Co. Operations & Maintenance in geological sciences at the University Northwestern Arctic Air ASRC Energy Service of Texas, Austin, Dan participated in Offshore Divers ...... A4 Pipeline Power & Communications Project SEER, an industry-sponsored Oilfield Improvements Avalon Development research consortium. Later he spent 9 Oilfield Transport...... A6 1/2 years as a Unocal geophysicist. Dan B-F Pacific Rim Geological Consulting and Holly will spend time this summer Pacific Rim Institute at their Wasilla, Alaska, cabin. of Safety and Management (PRISM) Badger Productions Panalpina Baker Hughes PDC/Harris Group Brooks Range Supply Peak Oilfield Service Co. Capital Office Systems Penco Carlile Transportation Services ...... A5 Perkins Coie

Carolina Mat ...... A15 FORREST CRANE Petroleum Equipment & Services ...... A8 CH2M Hill Petrotechnical Resources of Alaska ...... A10 Chiulista Camp Services PGS Onshore CN Aquatrain ProComm Alaska Colville Prudhoe Bay Shop & Storage ...... A18 Conam Construction ConocoPhillips Alaska Craig Taylor Equipment Crowley Alaska Q-Z Cruz Construction QUADCO Dowland - Bach Corp. Renew Air Taxi Doyon Drilling Michelle Quinn, executive adminis- Salt + Light Creative Dynamic Capital Management trative analyst Schlumberger Engineered Fire and Safety Security Aviation ENSR Alaska Seekins Ford Carlile Epoch Well Services Span-Alaska Consolidator ...... A12 Transportation Era Aviation STEELFAB Evergreen Helicopters of Alaska Storm Chasers Marine Services Systems Evergreen Resources Alaska Taiga Ventures Carlile Transportation Systems is one Fairweather Companies, The Thrifty Car Rental of Alaska’s largest motor carriers and a FMC Energy Systems TOTE full-service logistics company with air, Friends of Pets ...... A16 Totem Equipment & Supply...... A13 rail, road, and water carrier partners Frontier Flying Service Travco Industrial Housing throughout North America and beyond. F.S. Air UBS Financial Services Inc. Alaska owned and operated, the com- Udelhoven Oilfield Systems Services pany is committed to providing the best G-M Umiat Commercial...... A5 possible logistics services to, from and Unique Machine ...... A8 within the state. Golder Associates Unitech of Alaska Michelle Quinn joined Carlile nine- Great Northern Engineering ...... A6 Univar USA plus years ago, moving from the file Great Northwest U.S. Bearings and Drives room to billing, customer relations, and Hanover Canada Usibelli Coal Mine to her present position in 2001. Off the Hawk Consultants ...... A4 VECO ...... A12 job she helps manage Alaska Forklift H.C. Price Weaver Brothers ...... A13 Services with husband Steve and gives Hunter 3D Worksafe him rowdy support at North Star Industrial Project Services Well Safe Speedway. A favorite trip was driving to Inspirations ...... B6 XTO Energy ...... A2 Alaska from the East Coast with Steve, Jackovich Industrial an overloaded car and two dogs. Even & Construction Supply during a blinding blizzard, turning back Judy Patrick Photography All of the companies listed above advertise on a regular basis was not an option. Kakivik Asset Management with Petroleum News A18 THE REST OF THE STORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004 continued from page A1 CHEVRON mitted to Canada,” he said. “We have activities and strong interests in Atlantic Canada, offshore Newfoundland, Nova Scotia, the Delta, and oil sands, and we’re still very much interested and active in a number of areas.” Pommer said the newly acquired delta properties are only five kilometers west of a well — Ellis I-48 — that was drilled with partners last winter. Asked if the results of that well triggered the bids, Pommer said the well was “tight” and would offer no further details. Petro-Canada also a prominent bidder Petro-Canada also played a prominent role in the lease sale, snaring more than 27,000 hectares of leases in the Mackenzie Valley. Company spokesperson Susan Braungart said the company’s expendi- tures remained “confidential,” but the Directorate’s website says Petro-Canada has committed to spend C$22 million on the leases. “Before this purchase, we had 76,000 net acres (30,769 hectares) in the Colville Hills area,” she said. “This purchase of 27,488 hectares adjacent to those hold- ings means we now hold 58,257 hectares.” Braungart said the company will eval- uate the properties this summer before outlining a work program for the follow- ing winter season. “The north is one of our key areas, and this is a long term growth area for us, “Braungart said. “We want to take advan- tage of the pipeline when it is built.” All the agreements with Indian Affairs and Northern Development specify that the work will be done within five years, closely paralleling the timeline for com- pletion of the $3 billion Mackenzie pipeline in 2009. Other successful bidders include Northrock Resources, Husky Oil, EOG ies from the 1970s they’d like to tie in Cho have two seats on the joint review some other arrangements on how we can Resources, International Frontier first. panel. move this whole process forward. They Resources, Pacific Rodera Energy, Discussions about the Deh Cho’s leave us no room to maneuver in that we Paramount Resources, and Apache Deh Cho threaten to go to court involvement broke down more than a have to seriously look at court action.” Canada. Meanwhile, there may be trouble on week ago when it appeared to Norwegian About 40 percent of the pipeline pass- The new entrants are all outside the the pipeline front, as the Deh Cho First that the government was backing away es through Deh Cho territory, and original Mackenzie sponsor group, con- Nation is threatening to go to court if it is from that commitment. Norwegian believes the environmental sisting of Imperial Oil, Shell Canada, excluded from a panel reviewing environ- “It was a gentlemen’s agreement and panel offers the only opportunity for the ConocoPhillips Canada and ExxonMobil mental issues around the pipeline. Grand obviously these people weren’t gentlemen Deh Cho to have any say in how the proj- Canada. Those companies have discover- Chief Herb Norwegian insists the Deh when they came to the table,” Norwegian ect develops. ● told CBC News. “We need to look for

tive to come back to the table,” he said. continued from page A1 To “build and maintain significant continued from page A3 aboriginal direct involvement” with Roberts seemed to hold out hope for GASLINE the Mackenzie project more than 600 HOUSE that. “As you know, we have not been reluc- meetings were held by the end of tant to support ANWR bills in the past,” sideration today and we’re back at the “The application for the Mackenzie 2003, Williams said. Roberts wrote, “and we certainly have vig- drawing board.” is enormous,” Williams said in a The last and most recent was on orously supported (abandoned mine lands) Many coal worker benefits are currently Calgary Sun story. June 3, when the draft environmental reform in this session of Congress.” paid by the Combined Benefits Fund, “Through more than two years of impact statement terms of reference Reps. Nick Rahall, D-W.V., and Robert which Congress created in the early 1990s project development and field work, were issued by regulators, with com- Ney, R-Ohio, have introduced legislation to cover a combination of old agreements comprising more than 1.3 million ments due back from stakeholders by that would allow transfers from the between UMWA and coal companies. work hours, we have not had a single mid-July. (See related story on page Abandoned Mine Lands Fund to cover any The fund is supported by coal company recordable injury,” he said. 13 of this issue.) shortfalls in the miners’ Combined Benefit contributions, but those haven’t been high Additional geotechnical work was “We expect to have the final terms Fund. The UMWA backs that bill. But the enough to keep up with costs. Congress completed this past winter in the of reference by the end of July,” language added to the ANWR bill was too paid $34 million into the fund last year to Gwich’in region and the K’hasho Williams said. uncertain, Roberts said. Got’ine district in the Sahtu region. keep it afloat. “If companies are to be relieved of lia- Congress has also allowed benefits to be bility, there must be provisions to guarantee paid with money from another fund — one that the beneficiaries will continue to set up to pay for cleanup of abandoned receive their health benefits,” he wrote. mine lands using industry fees. But Rep. Don Young, R-Alaska, agreed that Congress only allowed that fund to support the Senate probably wouldn’t take up the benefits for “orphaned” miners — those ANWR bill if it passed the House. He said whose former employers no longer exist. it was worth passing anyway for the state- Miners want interest on the abandoned ment it makes. mine lands money to also prop up the He said he hadn’t been involved in the Combined Benefits Fund. redrafting of the bill to include the coal ANWR revenues could help do that, miner benefits. Kennedy said. “All the stakeholders have a big incen- —THE ASSOCIATED PRESS PETROLEUM NEWS • WEEK OF JUNE 20, 2004 THE REST OF THE STORY A19 continued from page A3 on TAPS and should not be included in The rest is processed instate and subject TARIFFS Want to know cost of service.” to RCA rulings. more? RCA’s order also said, among other The average tariff for interstate ship- things, that the carriers “failed to meet the The commission, which is mandated ments in the past fiscal year was about If you’d like to read more about the standard of proof for affiliated transac- by state statute to keep oil and gas trans- $3.25 per barrel. trans-Alaska oil pipeline tariff, go to tions,” including not adequately support- portation rates “just and reasonable” for Petroleum News’ web site and Prompted by RCA’s 2002 ruling, ing Alyeska affiliate costs and owner both the owners and the shippers, ruled in search for these articles: Alaska Attorney General Greg Renkes direct affiliate costs. November 2002 that the 1986 TAPS set- and the pipeline owners signed a memo- Web site: www.PetroleumNews.com “When affiliated companies providing tlement methodology allowed for exces- randum of understanding Jan. 22-23, call- services to pipeline carriers are also pro- sively high rates. RCA said that rates ing for negotiations to renegotiate the tar- 2004 ducing companies that pay royalties and charged between just 1977 and 1996 pro- ● Jan. 25 The North Slope: A geolo- iff structure, starting this past February. taxes, public policy considerations vided TAPS carriers “with the opportuni- gist’s dream, an investor’s nightmare require that we closely examine affiliated They said the talks could take as long as ty to recover $9.9 billion more than the 2003 costs,” the commission said. “Higher two years. reasonable cost of providing service.” ● Oct. 19 Alaska Superior Court pipeline transportation costs on TAPS The memorandum says negotiations The commission said maximum rates rejects state’s request for stay in result in lower taxes and royalties for the will cover the tariff structure for interstate filed by the carriers for intrastate service TAPS tariff case ● TAPS carriers’ affiliates and also may and intrastate shipment of North Slope from 1997 through 2000 exceeded cost- Oct. 12 State talking about tariff with TAPS owners create an economic barrier for shipping oil. based rates by an average of 57 percent. ● April 6 Alaska bound by TAPS set- by unaffiliated shippers who cannot reap Any reduction in pipeline tariffs could In its June 10 order, RCA said that the tlement, can’t lower tariff…. these ancillary benefits. The TAPS carri- be a plus to the state treasury, with lower current rates “will be permanent for 2001, ● March 23 Oil Patch Insider: ers therefore may lack incentives to insure transportation costs resulting in higher 2002, 2003, 2004 and the future until we Governor to meet with ANS produc- that affiliated costs are reasonable.” wellhead values and larger production tax approve revised rates pursuant to AS ers … about … TAPS tariff The TAPS carrier-owners named in and royalty payments to the state based on 42.06.” Those rates are: GVEA $1.25, RCA’s order are Amerada Hess Pipeline, Petro Star $1.96, and Valdez $1.96. those higher values. instead be “amortized over a reasonable BP Pipelines (Alaska), ExxonMobil In comparison, the highest rates Advocates of lower tariffs also say it period.” Pipeline, Phillips Transportation charged by any carrier came from BP: could encourage additional oil develop- For example, the TAPS carriers paid (Alaska), Unocal Pipeline and Williams $1.56 (GVEA) $2.45 (Petro Star) $2.46 ment by lowering the cost for new $7.7 million to repair damage to the Alaska Pipeline. (Valdez). And the lowest rates came from entrants on the North Slope. pipeline caused by the 2002 Denali earth- Since the June 3, 2003 filing owner- Unocal: $1.18 (GVEA) $1.87 (Petro Star) “Tariffs have been a controversial and quake. The carriers included that amount ship has changed. Current owners are: BP $1.88 (Valdez). litigated topic throughout the (pipeline’s) in the test year rather than amortizing the Pipeline (Alaska), Phillips Transportation life,” the memorandum says, explaining costs associated with repairs, despite the Alaska, ExxonMobil Pipeline, Koch Unacceptable methods that a negotiated settlement is preferable fact that a carrier witness confirms that Alaska Pipeline and Unocal Pipeline. used for test year the pipeline is designed to withstand this The pipeline owners are appealing the to fighting the issue before regulatory In its order the commission said the type of earthquake and that over the last November 2002 order in state Superior agencies and eventually in court. carriers’ filings do not justify their pro- 23 years only three other earthquakes court. The state and pipeline owners will not posed rates and that most of the carriers between 6.7 and 7.3 have occurred. Williams and Tesoro Alaska Co. start- negotiate an actual tariff but rather a used “unacceptable methods to normalize The carriers also paid $4.3 million to ed the case when they filed a complaint method for calculating the tariff, which the test year we directed them to use.” resolve a civil suit related to a pipeline with the RCA in 1997, alleging they were would then be subject to approval by the The order said the carriers had aver- visitor center and included it in the cost of charged too much to move oil to their Federal Energy Regulatory Commission, aged costs over “selected years … not a service. Alaska refineries. which regulates interstate oil pipeline tar- reasonable method for normalizing the The commission concluded that while Pipeline owners collect about $1 bil- iffs, and RCA for in-state deliveries of oil. test year.” It also noted that the carriers this may be a “cost of doing business that lion a year in tariffs on North Slope oil, included recoverable costs that were “not management might approve, it is not rea- more than 90 percent of which is shipped —KAY CASHMAN, Petroleum News likely to recur annually” and should sonably necessary to the shipment of oil aboard tankers to West Coast refineries. publisher & managing editor A20 ADVERTISEMENT PETROLEUM NEWS • WEEK OF JUNE 20, 2004 Providing information about companies that serve North America’s oil and gas industry ALASKA Up Front A group of greater white-front- ed geese settle near Nabors drilling rig 9-ES during their spring migration to Alaska’s North Slope.

CANADA

CONTINENTAL U.S. FEATURED COMPANIES 2 Aeromed 11 Baker Hughes Inteq 12 ASRC Energy Services 13 Hanover Canada 14 Company News

Volume 9, No. 25 June 2004 JUDY PATRICK PHOTO B2 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004 Aeromed’s vital air ambulance service Speed and efficiency become of paramount importance in life-threatening situations COURTESY OF AEROMED OF COURTESY By ALAN BAILEY Petroleum Directory contributing writer

n Alaska’s vast territory the air ambulance has become a critical component of health services — if someone I falls seriously ill or suffers a major injury, air travel often provides the only means of timely access to hos- pital care. Anchorage-based Aeromed International has built a successful business to meet this vital air ambulance need, with critical-care air ambulance services in Alaska and between Alaska and the rest of the world. Aeromed was formed in 1997 and is a department of the Yukon Kuskokwim Health Corp., a member of the Alaska Native Tribal Health Corp. Origins The formation of Aeromed stemmed from the need to transport patients from the Yukon Kuskokwim Delta region to hospital in Anchorage. Aeromed was formed in 1997 and is a department of the Yukon Kuskokwim Health Corp., a member of the Alaska Native Tribal “What we did prior to 1997 was we used Alaska Health Corp. The formation of Aeromed stemmed from the need to transport patients from the Yukon Kuskokwim Delta region Airlines (from Bethel) for a lot of our patient transfers — to hospital in Anchorage. we would buy three rows of seats (in a scheduled flight),” Specialized aircraft and four co-pilots per aircraft.” Brooks Wall, director of Aeromed, told Petroleum News. Ensuring payment for services when dealing rapidly Aeromed has equipped all of its aircraft as fully opera- In 1997, as a consequence of the ValueJet Crash in with a medical emergency presents another challenge. tional air ambulances with the life-support technology that Florida, the FAA tightened the rules for carrying oxygen Emergencies can’t usually wait for insurance and other is needed for a successful patient transfer. on aircraft. Consequently the Yukon Kuskokwim Health payment arrangements to be completed but the company “What we provide is critical care — you’re talking Corp. found that it could no longer transport patients on does need to be paid so that it can continue in business. about an intensive care unit type setting ... in the aircraft,” scheduled passenger flights. So, to ensure that patients “Everything happens after the fact,” Wall said. “It’s Wall said. could continue to fly from Bethel to Anchorage and to very rare that you can get everything agreed and approved Specially trained nurses and paramedics attend to provide air ambulance services within the Yukon beforehand because it’s an emergency situation when peo- patients during flights. Kuskokwim Delta, the corporation decided to establish its ple call and need help.” “We have eight full-time flight paramedics, eight full- own air ambulance service — Aeromed came into exis- The vagaries of Alaska weather add to the difficulties time flight nurses and then we have backup people ... that tence. of operating an air ambulance service in the state. we keep with us,” Wall said. Backups consist of five addi- Although a medical emergency may generate pressure to tional nurses and four or five paramedics, he said. Steady growth conduct a flight, safety must take priority when weather Since its creation Aeromed has expanded into a major conditions make access to an airport dangerous. operation handling about 550 missions per year in the Rapid response “We depend on our pilots to make really good deci- Yukon Kuskokwim Delta and about 950 missions per year sions about whether you can or you can’t perform a mis- to and from Anchorage. With speed being so critical to saving a patient, sion,” Wall said. “We work very hard with them to divorce The company’s Aeromed Delta branch uses a dedicated Aeromed takes great pride in launching its missions rapid- them from the medical situation ... if it’s not safe then we Cessna Grand Caravan, operated by Grant Aviation, for ly. As an independent operator, Aeromed can muster its don’t do the patient or ourselves any good to go out and crews without having to pull try to land somewhere.” people from other duties — that gives the company a International operations great advantage in achieving In addition to providing services within Alaska and optimum response times. from Anchorage to the Lower 48, Aeromed has expanded “Everybody says that into international medevac services for a variety of cus- they have the doors sealed in

COURTESY OF AEROMED OF COURTESY tomers. the aircraft in 45 minutes “We’ve done some transports from Russia and some (from a call) — our door from Japan and Korea,” Wall said. seal times are averaging ... Wall sees opportunities to further expand these interna- about 38 minutes,” Wall tional operations, including the potential to partner with said. “Our medical crews air ambulance operators in the Lower 48 — Anchorage and flight crews are totally provides an ideal location for an international medevac dedicated 24 hours a day, hub. seven days a week ... our Aeromed has equipped all of its aircraft as fully operational air ambulances with the life-support “If a call came in we could launch almost immediately medical staff doesn’t work technology that is needed for a successful patient transfer. out of Anchorage and in the meantime the (partner) com- in a hospital. The pilots pany would be en-route up to Anchorage,” Wall said. “We aren’t on call to do anything could pick the patient up and bring them back here and ... else — they’re totally dedicated to this service.” ambulance services between Bethel and rural villages in transfer the patient (to the other carrier) right here in And Aeromed isn’t tied to one particular hospital, so the Yukon Kuskokwim Delta. The Grand Caravan can eas- Alaska. It would save time for the patient and save that the company can ferry a patient to any hospital in ily operate in and out of the small gravel airstrips in the expense.” villages. Alaska or in the Lower 48, Wall said. “That’s how we usually evacuate seriously ill patients Business expansion A challenging business out of the villages and get them into Bethel,” Wall said. Wall also sees opportunities to support new industrial Achieving rapid response times in the unpredictable If there’s a medical condition that the hospital in Bethel customers, perhaps from the Alaska oil and mining indus- world of medical emergencies does bring some business can’t handle, Aeromed’s Anchorage branch transfers the tries. challenges — it’s necessary to balance the need for ade- patient by jet aircraft to Anchorage or elsewhere — the “We are interested in contracting with some of these quate service capacity at peak demand with the need for Anchorage branch uses two Lear 35A jets and one companies ... to take care of their medical transportation,” cost efficiency. Citation II jet operated by American Air Network Alaska Wall said. “In our business it’s usually either feast or famine,” Inc. Aeromed’s extensive Alaska experience, efficient servic- Wall said. “We’ll maybe sit around for a couple of days “We staff two of the jets 24 hours a day, seven days a es and worldwide reach can really help industrial cus- and do absolutely nothing and then all hell will break week year round, with the capability of staffing the third tomers, Wall thinks. But Wall’s positive outlook on loose,” Wall said. jet when we need to,” Wall said. Aeromed doesn’t just stem from the company’s flourishing The jet aircraft, for example, require enough pilots for a As well as flying patients from Bethel, Aeromed’s business. He finds the air ambulance business very satisfy- day-and-night shift system and to ensure that pilots are Anchorage branch provides service for other tribal health ing because it involves saving or improving people’s lives. always available. regions throughout Alaska. And perhaps this impact on people is what really mat- “It’s much different from a corporate type of operation “There is a contract that we have with the Alaska ters. ● Native Tribal Health Consortium to provide service to all where your pilots are on call and you may have (just) ... a the other members of the consortium,” Wall said. captain and a co-pilot for a corporate jet,” Wall said. “... Editor’s note: Alan Bailey owns Badger Productions in for these (air ambulances) you’re basically four captains Anchorage, Alaska. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B3

Companies involved in North America’s oil and gas industry

A Dowland - Bach Corp. Natco Canada Doyon Drilling Aeromap Nature Conservancy, The Dynamic Capital Management Aeromed NEI Fluid Technology Engineered Fire and Safety AES Lynx Enterprises Nordic Calista ENSR Alaska Agrium North Slope Telecom Epoch Well Services Air Logistics of Alaska Northern Air Cargo Era Aviation Alaska Airlines Cargo Northern Transportation Co. Evergreen Helicopters of Alaska Alaska Anvil Northwestern Arctic Air Evergreen Resources Alaska Alaska Coverall Offshore Divers Fairweather Companies, The Alaska Dreams Oilfield Improvements FMC Energy Systems Alaska Interstate Construction Oilfield Transport Friends of Pets Alaska Marine Lines Pacific Rim Geological Consulting Frontier Flying Service Alaska Massage & Body Works Pacific Rim Institute F.S. Air Alaska Railroad Corp. of Safety and Management (PRISM) Alaska Steel G-M Panalpina Alaska Tent & Tarp PDC/Harris Group Alaska Terminals Peak Oilfield Service Co. Golder Associates Alaska Textiles Great Northern Engineering Penco Alaska West Express Great Northwest Perkins Coie Alaska’s People Hanover Canada Petroleum Equipment & Services Alliance, The Hawk Consultants Petrotechnical Resources of Alaska Alpine-Meadow H.C. Price PGS Onshore American Marine Hunter 3D ProComm Alaska Anchorage Hilton Industrial Project Services Prudhoe Bay Shop & Storage Arctic Controls Inspirations Arctic Fire & Safety Jackovich Industrial Arctic Foundations & Construction Supply Q-Z Arctic Slope Telephone Assoc. Co-op Judy Patrick Photography ArrowHealth Kakivik Asset Management QUADCO ASRC Energy Services Kenai Aviation Renew Air Taxi ASRC Energy Services Kenworth Alaska Salt + Light Creative Engineering & Technology Kuukpik Arctic Catering Schlumberger ASRC Energy Services Kuukpik/Veritas Security Aviation Operations & Maintenance Kuukpik - LCMF Seekins Ford ASRC Energy Service Lounsbury & Associates Span-Alaska Consolidator Pipeline Power & Lynden Air Cargo STEELFAB Communications Lynden Air Freight Storm Chasers Marine Services Avalon Development Lynden Inc. Taiga Ventures Lynden International Thrifty Car Rental B-F Lynden Logistics TOTE Lynden Transport Totem Equipment & Supply Badger Productions Mapmakers of Alaska Travco Industrial Housing Baker Hughes Marathon Oil UBS Financial Services Inc. Brooks Range Supply Marketing Solutions Udelhoven Oilfield Systems Services Capital Office Systems Mayflower Catering Carlile Transportation Services MEDC International Umiat Commercial Carolina Mat Co. MI Swaco Unique Machine CH2M Hill Michael Baker Jr. Unitech of Alaska Chiulista Camp Services Millennium Hotel Univar USA CN Aquatrain MWH U.S. Bearings and Drives Colville MRO Sales Usibelli Coal Mine Conam Construction VECO ConocoPhillips Alaska N-P Weaver Brothers Craig Taylor Equipment Worksafe Crowley Alaska Nabors Alaska Drilling Well Safe Cruz Construction NANA/Colt Engineering XTO Energy B4 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Air Passenger/Charter & Support

Air Logistics of Alaska Directory Categories 1915 Donald Ave. Fairbanks, AK 99701 SERVICES, EQUIPMENT & SUPPLIES Logistics Phone: (907) 452-1197 Machining Fax: (907) 452-4539 Air Passenger/Charter & Support Maintenance Contact: Dave Scarbrough Architecture Management Consulting Phone: Anchorage: (907) 248-3335 Maps Email: [email protected] Arctic Engineering Helicopter contract and charter services. Arctic Gear Marine Propulsion Aviation Fuel Sales Marine Services & Construction ERA Aviation Bearings Mat Systems 6160 Carl Brady Drive Buildings – Lease Space Mechanical & Electrical Inspection Anchorage, AK 99502 Buildings – Modular Meetings & Conventions Contact: Bryan Blixhavn Camps, Catering & Lodging Metal Distributors Phone: (907) 248-4422 Fax: (907) 266-8383 Cash Management Mining Email: [email protected] Cellular Communications Movers/Relocation Web site: www.eraaviation.com Chemicals Mud & Mudlogging Helicopter and fixed wing contract and charter servic- Chemical Analytical Lab Office Furniture es; scheduled airline service. Civil & Hazardous Waste Oilfield Service & Rig Up Coal – Export On-site Medical Services Evergreen Helicopters of Alaska 1936 Merrill Field Dr. Commercial Diving Photography Anchorage, AK 99501 Communications Pipe & Fittings Contact: Joy Journeay, marketing mgr. Construction Equipment & Materials Pipeline Maintenance Phone: (907) 257-1519 Construction Project Management Plumbing Fax: (907) 279-6816 Consulting Process Equipment Email: [email protected] Contractors - General Procurement Services Contact: Greg Thies, director of marketing Contractors - Pipeline Production Equipment Phone: (907) 257-1504 Real Estate Email: [email protected] Control Systems Nome office: (907) 443-5334 Corrosion Analysis Recycling Waste Management Airlines office: (907) 257-1500 Drilling & Well Services Reporting Software Logistics: (907) 243-8677 Drug Testing Restaurants Website: evergreenaviation.com Electrical Right of Way Maintenance Evergreen’s diverse fleet has provided award-winning Employee Services Safety Equipment & Supplies safety to Alaskans since 1960 in petroleum explo- Energy Services Security ration & production, firefighting, forestry, construc- Engineering Services Seismic & Geophysical tion, search & rescue, cargo transport, and utility Shops/Storage Space transmission. Environmental Engineering & Consulting Environmental Response & Cleanup Soil Stabilization F.S. Air Environmental Supplies Space Design/Planning 6121 S. Airpark Place Equipment & Heavy Hauling Steel Fabrication Anchorage, AK 99502 Equipment Sales/Rental Steel Sales Contact: Sandra Butler Expeditor/Clerk Services Surveying & Mapping Phone: (907) 248-9595 Tank Fabrication Fax: (907) 243-1247 Fertilizer Email: [email protected] Financial Services Telephone Equipment & Sales Web site: www.fsair.com Fire Protection Temporary Placement Services Part 135 D.O.D. approved. Member of Medallion Freight/Shipping & Cargo Training Foundation. Fueling Services Tubing & Tube Fittings General Oilfield Supplies Underwater NDT & Photography Kenai Aviation Underwater Welding P.O. Box 46 Geophysical & Geological Services Kenai, AK 99611 Health Care Professionals Vehicle Repair Contact: Bob or Jim Bielefeld Helicopter Contract/Charter Services Vehicle Sales/Rental Phone: (907) 283-4124 Industrial Gases Welding Phone: (800) 478-4124 (within Alaska) Industrial Parts & Supply Weld Repairs/Manufacturing Fax: (907) 283-5267 Inspection Services Email: [email protected] Instrumentation Systems OIL COMPANIES Air taxi services provided since 1961 state wide, mostly Laboratory Services Cook Inlet. Single engine and twin Bonanza. Legal Services Operators Lynden Lodging Alaska Marine Lines Alaska Railbelt Marine Alaska West Express Web site: www.NWArcticAirAK.com Contact: Tony Hoffman, survey mgr. Lynden Air Cargo On-demand, worldwide, air charter service, Russia Far- Phone: (907) 273-1830 Lynden Air Freight East experience, medical transports, express package Phone: (800) 955-1830 Lynden International delivery, secure convenient, cost-effective, 24/7. Fax: (907) 273-1831 Lynden Logistics Member Medallion Foundation. Email: [email protected] Lynden Transport Other Offices: Renew Air Taxi 6441 S. Airpark Pl. Barrow: (800) 478-8213 P.O. Box 61230 Anchorage, AK 99502 Email: [email protected] Fairbanks, AK 99706 Contact: Jeanine St. John Alpine: (907) 670-4739 Contact: Bob Wener Phone: (907) 245-1544 Email: [email protected] Phone: (907) 457-7287 Fax: (907) 245-1744 Arctic specialized architectural and engineering Fax: (907) 457-7288 Email: [email protected] design for all structures; water/sewer, fuel and trans- Email: [email protected] The combined scope of the Lynden companies portation systems design; contractor support survey- Web site: www.RenewAir.com includes truckload and less-than-truckload highway ing and permitting for oil and gas development; Other Office: connections, scheduled barges, intermodal bulk chem- dredging operations, remote site land and hydro- Dillingham, AK 99576 ical hauls, scheduled and chartered air freighters, graphic surveying. Phone: (907) 842-3440 domestic and international air forwarding and inter- Turbine Otter air support for remote seismic explo- national sea forwarding services. Arctic Engineering ration, mining and construction sites. Cargo, fuel and Northern Air Cargo passengers on wheels, wheel skis and amphibian floats. ASRC Energy Services 3900 W. International Airport Rd. 3900 C St., Ste. 701 Anchorage, AK 99502 Security Aviation Anchorage, AK 99503 Contact: Nick Karnos, acct. mgr. Anch./Prudhoe Bay 3600 International Airport Rd. Contact: Jack Laasch, exec. vp strategic dev. and exter- Phone: (907) 249-5161 Anchorage, AK 99502 nal affairs Fax: (907) 249-5194 Contact: S. Joe Kapper Phone: (907) 339-6200 Email: [email protected] Phone: (907) 248-2677 – 24 hour service Fax: (907) 339-6212 Web site: www.nac.aero Fax: (907) 248-6911 Email: [email protected] Serving the aviation needs of rural Alaska for almost Email: [email protected] Web site: www.asrcenergy.com 50 years, NAC is the states largest all cargo carrier Website: www.securityaviation.biz Oil and gas services, engineering, construction, opera- moving nearly 100 million pounds of cargo on sched- All twin engine aircraft including Citation-II business tions, maintenance, pipeline construction and mainte- uled flights to 17 of Alaska’s busiest airports. NAC’s jet. Crew changes, hot freight-worldwide, VIP tours, nance, project management, geological and geophysi- fleet of DC-6, B-727, and ATR-42 aircraft are available emergency response. Approved by all oil companies, cal, drilling and completion engineering, well stimula- for charters to remote sites and flag stops to 44 addi- Alyeska & DOD. tion, exploration services. tional communities. ASRC Energy Services – Engineering and Northwestern Arctic Air Architecture Technology 6231 S. Airpark Pl. 3900 C St. Anchorage, AK 99502 Kuukpik-LCMF Anchorage, AK 99503 Contact: Judy McClellan, office mgr. 139 E. 51st Ave. Contact: John Lewis, vp operations Phone: (907) 245-4566 Anchorage, AK 99503 Phone: (907) 339-6200 Fax: (907) 245-4567 Contact: Richard Rearick, architectural mgr. Fax: (907) 339-6212 Email: [email protected] Contact: Willey Wilhelm, engineering mgr. Email: [email protected] PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B5

Web site: www.asrcenergy.com Full service cellular company providing Drilling and completion engineering, cellular and wireless solutions, including well stimulation, facilities engineering, Notice to advertisers equipment sales and service, wireless upstream exploration and production Companies contracted to advertise in Petroleum News are invited to supply color or Internet, maintenance and installation services, geological and geophysical black and white photos for this directory. Contact Wadeen Hepworth for details: to the North Slope region of Alaska. services, automation, electrical and Call (907) 770-3506, email [email protected] or submit photos or instrumentation, platform renovation Chemicals and construction. slides by mail to Wadeen’s attention at Petroleum News, P.O. Box 231651, Anchorage, AK 99523. All photos should be accompanied by a caption explaining when the picture Agrium Golder Associates was taken and describing what’s in it. 1750 Abbott Rd., Ste. 200 P.O. Box 575 Anchorage, AK 99507 Kenai, AK 99611 Contact: Lisa Parker, govt. relations Contact: Bob Dugan, mgr., Tom Phone: (706) 672-0999 structures. Our modular structures are Krzewinski, Mark Musial, Bucky Tart Phone: (907) 776-3275 Fax: (706) 672-1188 used around the world as work camps, Fax: (907) 776-5579 Phone: (907) 344-6001 Email: [email protected] offices, wellsites, resorts, schools, etc. Fax: (907) 344-6011 Email: [email protected] Space designed for oilfield services. Web site: www.agrium.com Website: www.golder.com Umiat Commercial Located one-half mile north of Value added manufacturer of fertilizer Providing geotechnical engineering, 2700 S. Cushman St. Deadhorse airport. 800 sf.–1,200 sf. products. water resource, and geosciences servic- individual or combined units. Rent Fairbanks, AK 99701 es in support of resource development includes heat, snow removal, mainte- Contact: Mike Tolbert MI SWACO projects in Alaska and the Arctic. Other nance and repairs. Phone: (907) 452-6631 721 W. First Ave. offices worldwide. Fax: (907) 451-8632 Anchorage, AK 99501 & Email: [email protected] Great Northern Engineering Buildings — Modular 225 W. 92nd Ave. UCC provides lodging and fuel sales at Anchorage, AK 99515 137 E. Arctic Ave. Umiat located on the Colville River. We Palmer, AK 99645 Alaska Cover-All LLC Contact: Craig Bieber are open 24 hours a day everyday of Phone: (907) 274-5564 Contact: John H. Riggs, general mgr. 6740 Jollipan Crt. the year. Phone: (907) 745-6988 Anchorage, AK 99507 Email: [email protected] or dsr@alas- Fax: (907) 745-0591 Contact: Paul Nelson, mgr. ka.net Email: [email protected] Phone: (907) 346-1319 Cash Management MI SWACO DSR combines Alaska know- Website: www.greatnorthernengineer- Fax: (907) 346-4400 how and global strength to provide the ing.com Email: [email protected] UBS Financial Services, Inc. oil industry with a full-service drilling Anchorage office: 561-0200 Contact: Henry Brown 3000 A St., Ste 100 partner Phone: (907) 646-1219 Kenai office: 283-5199 Anchorage, AK 99503 Univar USA We are the Alaska dealers for Cover-All Great Northern Engineering (GNE) is a Contact: Steven Lukshin, financial advis- 590 E. 100th Ave. Building Systems. Steel framed, fully full-service engineering firm specializ- er Anchorage, AK 990515 engineered, LDPE fabric covered, ing in industrial power and petro-chem- Phone: (907) 261-5914 Contact: Ken Lambertsen portable buildings in 18 to 270 foot ical engineering. Complete engineer- Toll Free: (866) 261-5914 Phone: (907) 344-7444 widths and any length. ing services in mechanical, electrical, Fax: (907) 261-5990 Fax: (907) 522-1486 civil, structural, rotating equipment, Email: [email protected] Alaska Dreams Email: [email protected] and corrosion engineering. Consulting Web site: www.ubs.com/fa/stevenluk- Web site: www.univarusa.com services in project design, preparation 522 Goldstreak Rd. shin Fairbanks, AK 99712 World’s largest industrial chemical dis- of project documents, bid assistance, UBS Financial Services is a leading U.S. tributor serving Alaskans since 1924. project management, cost estimating Contact: M. Huser, president financial service firm serving individuals, Phone: (907) 455-7712 Industrial emphasis in oil and gas refin- and inspection services. corporations and institutions offering ing, procuring and gas treating. Fax: (907) 455-7713 investments, cash management and Email: [email protected] 401(k) services U.S. Bearings & Drives Arctic Gear Specialized in design, sales and con- 611 E. International Airport Rd. struction of fabric covered steel build- Anchorage, AK 99518 PGS Onshore ings, a cost efficient building solution Cellular Communications Contact: Dena Kelley, operations mgr. 341 W. Tudor Rd., Ste. 206 for many applications. We offer our Phone: 563-3000 Anchorage, AK 99503 worldwide, longtime experience for ASTAC Fax: 563-1003 Contact: Larry Watt, Alaska area mgr. your future project. 4300 B St., Ste. 501 Phone: (907) 569-4049 Anchorage, AK 99503 Email: [email protected] Fax: (907) 569-4047 Travco Industrial Housing, Ltd. Contact: Erin Ealum Web site: www.bearings.com Email: [email protected] 1507 8 St. Phone: (907) 563-3989 U.S. Bearings & Drives, formerly BESCO Houston Office Nisku, Alberta, Canada Phone: 1-800-478-6409 has been providing bearings and drive 738 Hwy 6 South, Ste 900 Contact: Stewart Orange, sales rep. Fax: (907) 563-1932 components to our Alaskan customers Houston, TX 77079 Phone: (888) 387-2826 Email: [email protected] since 1952. We offer quality compo- Contact: Gehrig Schultz Fax: (780) 955-8938 Phone: (281) 589-6732 Email: [email protected] Fax: (281) 589-6685 Web site: www.travco.ca Email: [email protected] Travco is a world-class manufacturer of Geophysical acquisition and processing industrial and commercial modular for the petroleum industry. PGS structures. Our modular structures are Onshore provides fully rubber tracked used around the world as work camps, Arctic geophysical crews to acquire the offices, wellsites, resorts, schools, etc. highest density data with the softest environmental footprint on the North Camps, Catering & Lodging Slope. Alaska Tent & Tarp Aviation Fuel Sales 529 Front St. Fairbanks, AK 99701 Umiat Commercial Contact: Jim Haselberger 2700 S. Cushman St. Phone: (907) 456-6328 Fairbanks, AK 99701 Fax: (907) 452-5260 Contact: Mike Tolbert Email: [email protected] Phone: (907) 452-6631 Web site: www.ptialaska.net/~aktent Fax: (907) 451-8632 Email: [email protected] Chiulista Camp Services/Mayflower UCC provides lodging and fuel sales at Catering Umiat located on the Colville River. We 6613 Brayton Dr., Ste. C are open 24 hours a day everyday of Anchorage, AK 99507 the year. Contact: George B. Gardner, pres/gm Phone: (907) 278-2208 Bearings Fax: (907) 677-7261 Email: [email protected] U.S. Bearings & Drives The 100 percent Alaska Native owned 611 E. International Airport Rd. and operated catering company on the Anchorage, AK 99518 North Slope, catering and housekeep- Contact: Dena Kelley, operations mgr. ing to your tastes, not ours. Phone: 563-3000 Kuukpik Arctic Catering Fax: 563-1003 5761 Silverado Way, Ste P Email: [email protected] Anchorage, AK 99518 Web site: www.bearings.com Contact: Rick MacMillan U.S. Bearings & Drives, formerly BESCO Phone: (907) 562-5588 has been providing bearings and drive Fax: (907) 562-5898 components to our Alaskan customers Email: [email protected] since 1952. We offer quality compo- nents and experienced personnel. Travco Industrial Housing, Ltd. 1507 8 St. Buildings — Lease Space Nisku, Alberta, Canada Contact: Stewart Orange, sales rep. Prudhoe Bay Shop & Storage Phone: (888) 387-2826 Deadhorse Airport Fax: (780) 955-8938 Deadhorse, AK 99734 Email: [email protected] Contact: J. Harper Gaston, president Web site: www.travco.ca P.O. Box 670 Travco is a world-class manufacturer of Greenville, GA 30222 industrial and commercial modular B6 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

nents and experienced personnel. Pacific Basin. Multi-discipline firm with project man- Jackovich Industrial & Construction agement, permitting, fiber optic, civil, Supply Chemical Analytical Lab Offshore Divers structural, mechanical, electrical, and Fairbanks: 1600 Wells St. 5400 Eielson St. instrumentation services. Established Attn: Buz Jackovich Anchorage, AK 99518 offices in Anchorage and Juneau pro- Phone: (907) 456-4414 Univar USA Contact: Don Ingraham, owner/mgr. 590 E. 100th Ave. vide diversified staff accepting the chal- Fax: (907) 452-4846 Contact: Leif Simcox, owner/oper. mgr. lenges, delivering excellence. Anchorage: 1716 Post Road Anchorage, AK 990515 Phone: (907) 563-9060 Contact: Ken Lambertsen Attn: Steve Slone Fax: (907) 563-9061 ProComm Alaska Phone: (907) 277-1406 Phone: (907) 344-7444 Email: [email protected] 4831 Old Seward Hwy., #111 Fax: (907) 522-1486 Fax: (907) 258-1700 Web site: http//www.offshoredivers.com Anchorage, AK 99503 24 hour emergency service. With 30 years Email: [email protected] Offshore Divers is an Alaska owned div- Contact: Natha Thompson, director of Web site: www.univarusa.com of experience, we're experts on arctic ing contractor specializing in sub-sea sales & marketing conditions and extreme weather. World’s largest industrial chemical dis- oilfield work on mooring systems, Phone: (907) 373-7628 (Wasilla) tributor serving Alaskans since 1924. pipelines, platforms and docks in Cook Fax: (907) 373-7636 Industrial emphasis in oil and gas refin- Inlet, on the North Slope and in Valdez. Phone: (907) 563-1176 (Anchorage) Construction Project ing, procuring and gas treating. Toll Free: (800) 478-9191 (outside Alaska) Management Civil & Hazardous Waste Storm Chasers Marine Services Email: [email protected] P.O. Box 757 Website: www.ProCommAk.com Alaska Anvil MWH Seward, AK 99664 ProComm Alaska represents the com- 509 W. 3rd Ave. 1835 S. Bragaw St., Ste. 350 Contact: Mica Van Buskirk plete line of Motorola products and is a Anchorage, AK 99501–2237 Anchorage, AK 99508 Phone: (907) 224-3536 Motorola service center. We offer the Contact: Frank Weiss Contact: Brett Jokela Fax: (907) 224-6080 latest two-way radio technology for Phone: (907) 276-2747 Phone: (907) 248-8883 Email: [email protected] business and public safety. Locations in Fax: (907) 279-4088 Fax: (907) 248-8884 Providing quality marine services in Anchorage, Fairbanks, Wasilla and Web site: anvilcorp.com Email: [email protected] Alaska for over 15 years. Commercial Soldotna. Other office: Kenai The engineers, scientists, and construc- diving, underwater welding, underwa- 50720 Kenai Spur Hwy, Mile 24.5 tors of MWH provide innovative proj- ter inspection with video, vessel repair, Kenai, AK 99611 ects and solutions for clients through- marine construction and marine salvage Construction Equipment Phone: (907) 776-5870 services. out Alaska and Worldwide. & Materials Fax: (907) 770-5871 Multi-discipline engineering and design Univar USA Communications services including construction manage- 590 E. 100th Ave. Alaska Dreams ment for petro-chemical and heavy Anchorage, AK 990515 ASRC Energy Services – Pipeline, 522 Goldstreak Rd. industrial client projects. Contact: Ken Lambertsen Power & Communications Fairbanks, AK 99712 Phone: (907) 344-7444 3900 C St., Contact: M. Huser, president Great Northern Engineering Fax: (907) 522-1486 Anchorage, AK 99503 Phone: (907) 455-7712 137 E. Arctic Ave. Email: [email protected] Contact: Wade Blasingame Fax: (907) 455-7713 Palmer, AK 99645 Web site: www.univarusa.com Phone: (907) 339-6400 Email: [email protected] Contact: John H. Riggs, general mgr. World’s largest industrial chemical dis- Fax: (907) 339-6444 As an independent Rockford steel Phone: (907) 745-6988 tributor serving Alaskans since 1924. Email: building dealer we provide full service, Fax: (907) 745-0591 Industrial emphasis in oil and gas refin- [email protected] industry leading hi-tech durable steel Email: [email protected] ing, procuring and gas treating. Web site: www.asrcenergy.com construction. The fully engineered and Website: www.greatnorthernengineer- Pipeline construction and maintenance, complete buildings guarantee fast and ing.com Coal — Export fiber optic cable installation. economical on site erection. Anchorage office: 561-0200 Kenai office: 283-5199 Usibelli Coal Mine ASTAC Great Northern Engineering (GNE) is a Brooks Range Supply 100 Cushman St., Ste. 210 4300 B St., Ste. 501 full-service engineering firm specializ- Pouch 340008 Fairbanks, AK 99701 Anchorage, AK 99503 ing in industrial power and petro-chem- 1 Old Spine Road Contact: Bill Brophy, vp cust. relations Contact: Erin Ealum ical engineering. Complete engineer- Prudhoe Bay, AK 99734 Phone: (907) 452-2625 Phone: (907) 563-3989 ing services in mechanical, electrical, Contact: Mike Kunkel/Craig Welch, gen- Fax: (907) 451-6543 Phone: 1-800-478-6409 civil, structural, rotating equipment, eral managers Email: [email protected] Fax: (907) 563-1932 and corrosion engineering. Consulting Phone: (907) 659-2550 Web site: www.usibelli.com Email: [email protected] services in project design, preparation Toll Free: (866) 659-2550 Other Office Providing local and long distance serv- of project documents, bid assistance, Fax: (907) 659-2650 P. O. Box 1000 ice, Internet, maintenance and training, project management, cost estimating Email: [email protected] Healy, AK 99743 consultation, installation, engineering, and inspection services. Your source on the Slope for safety sup- Phone: (907) 683-2226 Centrex, custom calling features, digital plies, welding supplies, automotive and Great Northwest Usibelli Coal Mine is headquartered in cross connect service, and digital data truck parts, hardware, tools, steel, P.O. Box 74646 Healy, Alaska and has 200 million tons service to the North Slope region of building materials, glass, propane, Fairbanks, AK 99704-4646 of proven coal reserves. Usibelli pro- Alaska. hydraulic hoses and fittings, paint and Contact: Buzz Otis duced one million tons of sub-bitumi- chemicals. Napa and True Value Phone: (907) 452-5617 nous coal this year. Michael Baker Jr. Hardware distribution. Fax: (907) 456-7779 4601 Business Park Blvd., Ste. 42 Email: [email protected] Commercial Diving Anchorage, AK 99503 Web site: www.grtnw.com Contact: Bud Alto, business unit mgr. Great Northwest Specializing in cold weather and heavy American Marine Corp. Phone: (907) 273-1600 P.O. Box 74646 civil construction, gravel and rock prod- 6000 A St. Fax: (907) 273-1699 Fairbanks, AK 99704-4646 ucts, site-work, petroleum industry con- Anchorage, AK 99518 Email: [email protected] Contact: Buzz Otis struction, erosion control, underground Contact: Tom Ulrich, reg. mgr. svc. Web site: www.mbakercorp.com Phone: (907) 452-5617 utilities and reclamation services. group Juneau office: 175 Franklin St., Ste. 420 Fax: (907) 456-7779 Phone: (907) 562-5420 Juneau, AK 99801 Email: [email protected] Hawk Consultants Fax: (907) 562-5426 Contact: McKie Campbell, Sr. environ- Web site: www.grtnw.com 200 W. 34th Ave., Ste. 809 Email: [email protected] mental mgr. Specializing in cold weather and heavy Anchorage, AK 99503 Web site: www.amsghq.com Phone: (907) 463-3171 civil construction, gravel and rock prod- Contact: Maynard Tapp, president American Marine Corp. provides full Fax: (907) 463-3107 ucts, site-work, petroleum industry con- Phone: (907) 278-1877 service marine construction and diving Email: [email protected] struction, erosion control, underground Fax: (907) 278-1889 services throughout Alaska and the utilities and reclamation services. Email: [email protected] PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B7

Providing people and resources to the oil, gas, power, telecommunication and public works industries. Services include strategic planning, full service project management team consulting/outsourc- ing, supplemental professionals, profes- sionals, management consulting servic- es. COURTESY OF AEROMED OF COURTESY Lounsbury and Associates 723 W. 6th Ave. Anchorage, AK 99501 Contact: Craig L. Savage, president E-mail: [email protected] Contact: Jim Sawhill, vp Email: [email protected] Phone: (907) 272-5451 Fax: (907) 272-9065 Toll Free: (800) 478-5451 Website: www.lounsburyinc.com Provides civil engineering and project management services for oilfield devel- opment. Recent projects include: Tarn, Pam and Colville Delta North. Michael Baker Jr. 4601 Business Park Blvd., Ste. 42 Anchorage, AK 99503 Contact: John M. Eldred, business unit mgr. Phone: (907) 273-1115 Fax: (907) 273-1699 Email: [email protected] Website: www.mbakercorp.com Juneau office: 175 Franklin St., Ste. 420 Juneau, AK 99801 Contact: McKie Campbell, sr. environ- mental mgr. Phone: (907) 463-3171 If there’s a medical condition that the hospital in Bethel can’t handle, Aeromed’s Anchorage branch transfers the patient by jet aircraft to Fax: (907) 463-3107 Anchorage or elsewhere. See the company profile on page B2. Email: [email protected] Engineering skills include civil, structur- al, mechanical, electrical, project man- agement, GIS, and hydrology. Energy Fax: (907) 562-4179 Palmer, AK 99645 P.O. Box 8349 services include CMMS (computerized Email: [email protected] Contact: Dave or Dana Cruz Nikiski, AK 99635 maintenance management), managed Website: www.aicllc.com Phone: (907) 746-3144 Phone: (907) 776-5185 operation and maintenance, AIC provides cost-effective solutions to Fax: (907) 746-5557 Fax: (907) 776-8105 training/competency services, and other resource development industries. We Email: [email protected] Prudhoe office: related energy services. provide innovative ideas to meet each General contractor specializing in heavy Pouch 340103 requirement through the provision of civil construction, horizontal direction Prudhoe Bay, AK 99734 NANA/Colt Engineering best-in-class people and equipment drilling for utilities. Ice road and ice Phone: (907) 659-8093 700 G Street, 5th floor coupled with exceptional performance. bridge construction throughout Alaska Fax: (907) 659-8489 Anchorage, AK 99501 in support of resource development. Serving Alaska for more than 25 years. Phone: (907) 273-3900 American Marine Corp. 6000 A St. Great Northwest Fax: (907) 273-3990 Contractors — Pipeline Contact: John Minier Anchorage, AK 99518 P.O. Box 74646 NANA/Colt offers project management, Contact: Tom Ulrich, reg. mgr. svc. Fairbanks, AK 99704-4646 ASRC Energy Services – Pipeline, engineering, design, construction man- group Contact: Buzz Otis Power & Communications agement, and procurement services to Phone: (907) 562-5420 Phone: (907) 452-5617 3900 C St., the oil industry. Fax: (907) 562-5426 Fax: (907) 456-7779 Email: [email protected] Email: [email protected] Anchorage, AK 99503 VECO Web site: www.amsghq.com Web site: www.grtnw.com Contact: Wade Blasingame 949 E. 36th Ave., Ste. 500 American Marine Corp. provides full Specializing in cold weather and heavy Phone: (907) 339-6400 Anchorage, AK 99508 service marine construction and diving civil construction, gravel and rock prod- Fax: (907) 339-6444 Contact: Emily Cross services throughout Alaska and the ucts, site-work, petroleum industry con- Email: Phone: (907) 762-1510 Pacific Basin. struction, erosion control, underground [email protected] Fax: (907) 762-1001 utilities and reclamation services. Web site: www.asrcenergy.com Email: [email protected] ASRC Energy Services Pipeline construction and maintenance, Web site: www.VECO.com 3900 C St., Ste. 701 H.C. Price fiber optic cable installation. VECO is a multi-national corporation Anchorage, AK 99503 301 W. Northern Lights Blvd., #300 CONAM Construction that provides services, project manage- Contact: Jack Laasch, exec. vp strategic Anchorage, AK 99503 301 W. Northern Lights Blvd., Ste 300 ment, engineering, procurement, con- dev. and external affairs Contact: David L. Matthews Anchorage, AK 99503 struction, operations and maintenance Phone: (907) 339-6200 Phone: (907) 278-4400 Contact: Bob Stinson – to the energy, resource and process Fax: (907) 339-6212 Fax: (907) 278-3255 Phone: (907) 278-6600 industries and the public sector. Email: [email protected] Other offices: Dallas, Texas, and interna- Web site: www.asrcenergy.com tional. Fax: (907) 278-3255 Oil and gas services, engineering, con- Email: [email protected] Email: [email protected] Consulting struction, operations, maintenance, EPC contractor performing oilfield sup- Oil, gas, and mining facility; pipeline, pipeline construction and maintenance, port construction projects and other civil, and commercial construction. CH2M HILL project management, geological and heavy industrial projects statewide. 301 W. Northern Lights Blvd., Ste. 601 geophysical, drilling and completion H.C. Price Anchorage, AK 99516 engineering, well stimulation, explo- MWH 301 W. Northern Lights Blvd., #300 Contact: Kelly Sobczek ration services. 1835 S. Bragaw St., Ste. 350 Anchorage, AK 99503 Phone: (907) 646-0214 Anchorage, AK 99508 Contact: David L. Matthews Fax: (907) 257-2016 ASRC Energy Services – Operations Contact: Brett Jokela Phone: (907) 278-4400 Email: [email protected] and Maintenance Phone: (907) 248-8883 Fax: (907) 278-3255 Website: www.ch2m.com 3900 C St. Fax: (907) 248-8884 Other offices: Dallas, Texas, and interna- Other Offices: World Wide Anchorage, AK 99503 Email: [email protected] tional. CH2M Hill is a global project delivery Contact: Mark Nelson, exec. vp The engineers, scientists, and construc- Email: [email protected] firm with services that span production, Phone: (907) 339-6200 tors of MWH provide innovative proj- EPC contractor performing oilfield sup- environmental permitting, treatment Fax: (907) 339-6212 ects and solutions for clients through- port construction projects and other processes, technology and engineering, Email: [email protected] out Alaska and Worldwide. heavy industrial projects statewide. security, and operations and mainte- Web site: www.asrcenergy.com nance. Oil and gas services, industrial construc- Peak Oilfield Service Peak Oilfield Service tion, operations and maintenance, 2525 C St., Ste. 201 2525 C St., Ste. 201 Kuukpik/Veritas module fabrication and assembly, proj- Anchorage, AK 99503 Anchorage, AK 99503 2000 E. 88th Ave. ect management and non-destructive Contact: Bill Stamps, business develop- Contact: Bill Stamps, business develop- Anchorage, AK 99507 testing. ment/ex. affairs ment/ex. affairs Contact: Jeff Hastings Phone: (907) 263-7000 Phone: (907) 263-7000 Phone: (907) 276-6037 CONAM Construction Fax: (907) 263-7070 Fax: (907) 263-7070 Fax: (907) 279-5740 301 W. Northern Lights Blvd., Ste 300 Email: [email protected] Email: [email protected] Email: [email protected] Anchorage, AK 99503 Web site: www.peakalaska.com Web site: www.peakalaska.com Contact: Bob Stinson Alaska based general contractors. Alaska based general contractors. Contractors — General Phone: (907) 278-6600 Fax: (907) 278-3255 Udelhoven Oilfield System Services Control Systems Email: [email protected] Anchorage office: Alaska Interstate Construction 184 E. 53rd Ave. Oil, gas, and mining facility; pipeline, Arctic Controls P.O. Box 233769 Anchorage, AK 99518 civil, and commercial construction. 1120 E. 5th Ave. Anchorage, AK 99523 Phone: (907) 344-1577 Anchorage, AK 99501 Contact: John Ellsworth Cruz Construction Fax: (907) 522-2541 Contact: Scott Stewart, president Phone: (907) 562-2792 HC04 Box 9323 Nikiski office: Phone: (907) 277-7555 B8 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Fax: (907) 277-9295 Email: [email protected] Website: www.arcticcontrols.com An Alaskan owned and operated com- pany since,1985, Arctic Controls, Inc. has been highly successful as manufacturer representatives for the state of Alaska in the Process Control and Instrumentation field. Selling equip- ment to the oil and gas markets, min- ing and water wastewater/municipal

markets. HUGHES INTEQ OF BAKER COURTESY Dowland-Bach 6130 Tuttle Pl. P.O. Box 230126 Anchorage, AK 99523 Contact: Lynn Johnson, president Phone: (907) 562-5818 Fax: (907) 563-4721 Email: [email protected] Web site: www.dowlandbach.com

Corrosion Analysis

Kakivik Asset Management 5401 Fairbanks St., Ste. 3 Anchorage, AK 99518 Phone: (907) 770-9400 Fax: (907) 770-9450 Contact: Mark Hylen, president/CEO Email: [email protected] Web site: www.kakivik.com Fairbanks Office Phone: (907) 451-4898 Fax: (907) 451-4897 Valdez Office Phone: (907) 831-1390 Centrilift, part of the Baker Hughes system, has a full line of electric submersible pumps, controls and cable for a variety of applications. Offering all elements of nondestructive See the company profile on page B11. testing, inspection services, quality con- trol and asset management Supplier of wellheads and Christmas requirements. Web site: www.worksafeinc.com Drilling & Well Services trees, to API specifications, with repair Worksafe works to keep your employ- facility and service organization to sup- Quadco ees from getting hurt on the job if they 6116 Nielson Way ASRC Energy Services – Engineering port all North Slope and Cook Inlet are using drugs or alcohol. Worksafe Anchorage, AK 99518 and Technology locations. Drug Testing increases productivity, Contact: David Baggett, vp, AK mgr. 3900 C St. reduces liability with fewer injuries and MI SWACO Phone: (907) 563-8999 Anchorage, AK 99503 accidents and provides insurance cost 721 W. First Ave. Fax: (907) 563-8985 Contact: John Lewis, vp operations savings. Anchorage, AK 99501 Email: [email protected] Phone: (907) 339-6200 Contact: Brad Billon Other offices: Farmington NM, Denver Fax: (907) 339-6212 Electrical Phone: (907) 274-5526 CO, Casper WY Email: [email protected] Fax: (907) 279-6729 Quadco has supplied services to the Web site: www.asrcenergy.com Email: [email protected] Alaska oilfield since 1976. We have Dowland-Bach Drilling and completion engineering, SWACO trained personnel to help with instru- 6130 Tuttle Pl. well stimulation, facilities engineering, Anchorage, AK 99501 mentation, solids control, pipe handling Anchorage, AK 99507 upstream exploration and production Contact: Dana Rhodes and Top Drive drilling equipment. 24 Contact: Lynn Johnson services, geological and geophysical Phone: (907) 274-5541 hour on call Phone: (907) 562-5818 services, automation, electrical and Email: [email protected] Fax: (907) 563-4721 instrumentation, platform renovation MI SWACO combines Alaska know-how Schlumberger Oilfield Services Web site: www.dowlandbach.com and construction. and global strength to provide the oil 2525 Gambell St. Industrial control and panel fabrication Anchorage, AK 99503 Baker Hughes Inteq industry with a full-service drilling part- Contact: Daniel Palmer Udelhoven Oilfield System Services 7260 Homer Dr. ner Phone: (907) 273-1700 Anchorage office: Anchorage, AK 99518 Fax: (907) 561-8317 184 E. 53rd Ave. Contact: Dave Reimer, AK mgr. Nabors Alaska Drilling Email: [email protected] Anchorage, AK 99518 Phone: (907) 267-6600 2525 C St., Ste. 200 Web site: www.slb.com Phone: (907) 344-1577 Cell Phone: (907) 250-6420 Anchorage, AK 99503 Schlumberger Oilfield Services provides Fax: (907) 522-2541 Fax: (907) 267-6623 Contact: Leslie Adams people and technology, working Nikiski office: Email: [email protected] Phone: (907) 263-6000 together to offer exploration and pro- P.O. Box 8349 Web site: www.bakerhughes.com Fax: (907) 563-3734 duction solutions for the life of oil and Nikiski, AK 99635 Baker Hughes Inteq delivers advanced Email: [email protected] gas reservoirs. Phone: (907) 776-5185 drilling technologies and services that NIED Fax: (907) 776-8105 deliver efficiency and precise well place- 341 W. Tudor Rd., Ste. 206 Unique Machine Prudhoe office: ment. Major capabilities include direc- Anchorage, AK 99503 5839 Old Seward Hwy Pouch 340103 tional drilling, measurement-while- Contact: Conrad Perry Anchorage, AK 99518 Prudhoe Bay, AK 99734 drilling (MWD), logging-while-drilling Phone: (907) 561-0650 Contact: Pat Hanley, COO Phone: (907) 659-8093 (LWD), drilling fluids, and well-site Fax: (907) 561-0763 Phone: (907) 563-3012 Fax: (907) 659-8489 information management services. Email: [email protected] Fax: (907) 562-1376 Serving Alaska for more than 25 years. Email: [email protected] Doyon Drilling Web site: www.NIEDI.com Web site: www.uniquemachineinc.com 101 W. Benson Blvd., Ste. 503 Employee Services Nordic-Calista Services The design, development, manufacture Anchorage, AK 99503 4700 Business Park Blvd., Bldg. E, #19 and distribution of oilfield construction, Contact: Ron Wilson Alaska’s People Anchorage, AK 99503 mining, fishing and government parts Phone: (907) 563-5530 2600 Cordova St., Ste. 211 Phone: (907) 561-7458 to industry quality standards. Fax: (907) 561-8986 Anchorage, AK 99503 Fax: (907) 563-8347 Email: [email protected] Contact: Teresa Nelson, director Contact: Phil Snisarenko, Operations Drug Testing Phone: (907) 263-7013 Mgr. The Fairweather Companies Fax: (907) 263-7083 Email: [email protected] 2000 E. 88th Ave. ArrowHealth Corp. Nordic-Calista Services provides innova- Email: [email protected] Anchorage, AK 99507 4050 Lake Otis Pkwy., Ste. 207 tive, reliable workover/drilling rigs Web site: www.alaskapeople.com Contact: Bill Penrose Anchorage, AK 99508 specifically designer for arctic condi- Employment reference services with an Phone: (907) 258-3446 Contact: Lea Counts, dir. Substance tions. We strive to maximize productivi- emphasis on qualified Alaska Natives Fax: (907) 279-5740 Abuse Testing Div. ty and efficiency while promoting safe- and American Indians. Website: www.fairweather.com Phone: (907) 868-8885 ty and environmentally-conscious drill The Fairweather Companies provide Fax: (907) 868-8882 practices. ArrowHealth Corp. project management, engineering, Email: [email protected] 4050 Lake Otis Pkwy., Ste. 207 drilling, permitting, logistics, and opera- Petroleum Equipment & Services Web site: www.arrowhealthcorp.com Anchorage, AK 99508 tional services to the exploration and 5631 Silverado Way, Ste G ArrowHealth is Alaska’s premier service Contact: Lea Counts, dir. Substance production sectors of the petroleum Anchorage, AK 99518 provider of occupational health and Abuse Testing Div. industry. Contact: Kevin Durling/Donald Parker substance abuse testing. We service the Phone: (907) 868-8885 Phone: (907) 248-0066 local community, national contracts, Fax: (907) 868-8882 and government agencies alike with Email: [email protected] FMC Energy Systems Fax: (907) 248-4429 customized solutions. Web site: www.arrowhealthcorp.com 700 W. International Airport Rd. Email: [email protected] Web site: www.pesiak.com ArrowHealth is Alaska’s premier service Anchorage, AK 99518-1122 Worksafe P.E.S.I. provides both conventional and provider of occupational health and Contact: Alan McArthur, area mgr. 300 W. 36th Ave., Ste. A specialty products and services for the substance abuse testing. We service the Phone: (907) 563-3990 Anchorage, AK 99503 Alaska oil industry. Regardless of your local community, national contracts, Fax: (907) 563-5810 Phone: (907) 563-8378 location, you will receive products and and government agencies alike with Email: [email protected] Fax: (907) 563-8380 service that is guaranteed to meet your customized solutions. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B9

Hawk Consultants Michael Baker Jr. tions, crisis management services. project management, cost estimating 200 W. 34th Ave., Ste. 809 4601 Business Park Blvd., Ste. 42 and inspection services. Anchorage, AK 99503 Anchorage, AK 99503 CH2M HILL Contact: Maynard Tapp, president Contact: John M. Eldred, business unit 301 W. Northern Lights Blvd., Ste. 601 Kakivik Asset Management Phone: (907) 278-1877 mgr. Anchorage, AK 99516 5401 Fairbanks St., Ste. 3 Fax: (907) 278-1889 Phone: (907) 273-1115 Contact: Kelly Sobczek Anchorage, AK 99518 Email: [email protected] Fax: (907) 273-1699 Phone: (907) 646-0214 Phone: (907) 770-9400 Providing people and resources to the Email: [email protected] Fax: (907) 257-2016 Fax: (907) 770-9450 oil, gas, power, telecommunication and Website: www.mbakercorp.com Email: [email protected] Contact: Mark Hylen, president/CEO public works industries. Services include Juneau office: 175 Franklin St., Ste. 420 Website: www.ch2m.com Email: [email protected] strategic planning, full service project Juneau, AK 99801 Other Offices: World Wide Web site: www.kakivik.com management team consulting/outsourc- Contact: McKie Campbell, sr. environ- CH2M Hill is a global project delivery Fairbanks Office ing, supplemental professionals, profes- mental mgr. firm with services that span production, Phone: (907) 451-4898 sionals, management consulting servic- Phone: (907) 463-3171 environmental permitting, treatment Fax: (907) 451-4897 es. Fax: (907) 463-3107 processes, technology and engineering, Valdez Office Email: [email protected] security, and operations and mainte- Phone: (907) 831-1390 Worksafe Engineering skills include civil, structur- nance. Offering all elements of nondestructive 300 W. 36th Ave., Ste. A al, mechanical, electrical, project man- testing, inspection services, quality con- Anchorage, AK 99503 agement, GIS, and hydrology. Energy Engineered Fire & Safety trol and asset management. Phone: (907) 563-8378 services include CMMS (computerized 3138 Commercial Dr. Fax: (907) 563-8380 maintenance management), managed Anchorage, AK 99501 Kuukpik-LCMF Web site: www.worksafeinc.com operation and maintenance, Contact: Don Maupin, gen. mgr. 139 E. 51st Ave. Worksafe works to keep your employ- training/competency services, and other Phone: (907) 274-7973 ext. 123 Anchorage, AK 99503 ees from getting hurt on the job if they related energy services. Fax: (907) 274-6265 Contact: Richard Rearick, architectural are using drugs or alcohol. Worksafe Email [email protected] mgr. Web site: www.efs-fire.com Contact: Willey Wilhelm, engineering Drug Testing increases productivity, Engineering Services reduces liability with fewer injuries and An industry leader in the design, inte- mgr. gration and testing of safety solutions Contact: Tony Hoffman, survey mgr. accidents and provides insurance cost AES Lynx Enterprises for high value risks. UL system certifica- Phone: (907) 273-1830 savings. 1029 W. 3rd Ave., Ste.400 tions and panel fabrication. Phone: (800) 955-1830 Anchorage, AK 99501 Fax: (907) 273-1831 Energy Services Contact: Mark Schindler, president & ENSR International Email: [email protected] CEO 1835 S. Bragaw St., Ste. 490 Other Offices: ASRC Energy Services Contact: Diane Fleisher, office mgr. Anchorage, AK 99512 Barrow: (800) 478-8213 3900 C St., Ste. 701 Phone: (907) 277-4611 Contact: Chris L. Humphrey, P.E. Email: [email protected] Anchorage, AK 99503 Fax: (907) 277-4717 Phone: (907) 561-5700 Alpine: (907) 670-4739 Contact: Jack Laasch, exec. vp strategic Email: [email protected] Fax: (907) 273-4555 Email: [email protected] dev. and external affairs Lynx professionals offer the following Email: [email protected] Arctic specialized architectural and Phone: (907) 339-6200 services: major project strategic plan- Serving Alaska since 1977. ENSR is an engineering design for all structures; Fax: (907) 339-6212 ning and project management; onshore environmental engineering and con- water/sewer, fuel and transportation Email: [email protected] and offshore projects, exploration and sulting firm with more than 70 offices systems design; contractor support sur- Web site: www.asrcenergy.com development phases, permits and right- worldwide providing environmental veying and permitting for oil and gas Oil and gas services, engineering, con- of-way acquisition, National planning, assessment, permitting, com- development; dredging operations, struction, operations, maintenance, Environmental Policy Act (NEPA) docu- pliance management and contamina- remote site land and hydrographic sur- pipeline construction and maintenance, mentation, Environmental Assessment tion cleanup. veying. project management, geological and (EA) and Environmental Impact geophysical, drilling and completion Statement (EIS) preparation. The Fairweather Companies NANA/Colt Engineering engineering, well stimulation, explo- 2000 E. 88th Ave. 700 G Street, 5th floor ration services. Alaska Anvil Anchorage, AK 99507 Anchorage, AK 99501 509 W. 3rd Ave. Contact: Bill Penrose Phone: (907) 273-3900 ASRC Energy Services – Operations Anchorage, AK 99501–2237 Phone: (907) 258-3446 Fax: (907) 273-3990 and Maintenance Contact: Frank Weiss Fax: (907) 279-5740 Contact: John Minier 3900 C St. Phone: (907) 276-2747 Website: www.fairweather.com NANA/Colt offers project management, Anchorage, AK 99503 Fax: (907) 279-4088 The Fairweather Companies provide engineering, design, construction man- Contact: Mark Nelson, exec. vp Web site: anvilcorp.com project management, engineering, agement, and procurement services to Phone: (907) 339-6200 Other office: Kenai drilling, permitting, logistics, and opera- the oil industry. Fax: (907) 339-6212 50720 Kenai Spur Hwy, Mile 24.5 tional services to the exploration and Email: [email protected] Kenai, AK 99611 production sectors of the petroleum Natco Canada Web site: www.asrcenergy.com Phone: (907) 776-5870 industry. P.O. Box 850, Stn. T Oil and gas services, industrial construc- Fax: (907) 770-5871 Calgary, Alberta T2H2H3 tion, operations and maintenance, Multi-discipline engineering and design Great Northern Engineering Contact: Kevin Baird, bus. dev. mgr. module fabrication and assembly, proj- services including construction manage- 137 E. Arctic Ave. Phone: (403) 203-2103 ect management and non-destructive ment for petro-chemical and heavy Palmer, AK 99645 Fax: (403) 236-0488 testing. industrial client projects. Contact: John H. Riggs, general mgr. Email: [email protected] Phone: (907) 745-6988 Web site: www.natco-ca.com Alpine-Meadow Fax: (907) 745-0591 Natco Group engineers, designs and Hunter 3-D 11043 Tsusena Circle Email: [email protected] manufactures process, wellhead and 9898 Bissonnet St., Ste. 362 Eagle River, AK 99577 Website: www.greatnorthernengineer- water treatment equipment and sys- Houston, TX 77036 Contact: George Snodgrass, president ing.com tems used in the production of oil and Contact: Dan Huston, vice president Phone: (907) 694-7423 Anchorage office: 561-0200 gas worldwide. Phone: (713) 981-4650 Fax: (907) 694-7423 Kenai office: 283-5199 Fax: (713) 981-4650 Email: grsnodgrass@alpine- Great Northern Engineering (GNE) is a PDC Harris Group Email: [email protected] meadow.com full-service engineering firm specializ- 1231 Gambell St. Web site: www.hunter3dinc.com Website: www.alpine-meadow.com ing in industrial power and petro-chem- Anchorage, AK 99501 Hunter 3-D is a geophysical consulting We are a small, low-cost, professional, ical engineering. Complete engineer- Contact: Steve Theno company based in Houston, Texas. We personal company with 18 years engi- ing services in mechanical, electrical, Phone: (907) 644-4716 interpret seismic, gravity and magnetic neering and environmental experience civil, structural, rotating equipment, Fax: (907) 561-7028 data for projects in Alaska and world- in Alaska with major oil companies. We and corrosion engineering. Consulting Email: [email protected] wide. offer permitting and compliance, services in project design, preparation Contact: Mike Moora strategic planning, incident investiga- of project documents, bid assistance, Phone: same as above B10 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Fax: same as above processes, technology and engineering, AIC provides cost-effective solutions to Fax: (907) 349-2733 Email: [email protected] security, and operations and mainte- resource development industries. We Email: [email protected] Web site: www.harrisgroup.com nance. provide innovative ideas to meet each Email: [email protected] PDC-Harris Group provides front-end requirement through the provision of UOA is Alaska’s only 24-hour oil spill engineering design, detailed design, ENSR International best-in-class people and equipment remediation, environmental and indus- and environmental permitting services 1835 S. Bragaw St., Ste. 490 coupled with exceptional performance. trial supply company. Specialty areas to the oil, gas, and power generation Anchorage, AK 99512 include sorbents, geotextile, contain- markets. Contact: Chris L. Humphrey, P.E. ment berms, drums and ice melt. Phone: (907) 561-5700 ENSR International Petrotechnical Resources of Alaska Fax: (907) 273-4555 1835 S. Bragaw St., Ste. 490 Equipment & Heavy Hauling (PRA) Email: [email protected] Anchorage, AK 99512 3601 C St., Ste. 1378 Serving Alaska since 1977. ENSR is an Contact: Chris L. Humphrey, P.E. Anchorage, AK 99503 environmental engineering and con- Phone: (907) 561-5700 Alaska Interstate Construction Contact: Tom Walsh sulting firm with more than 70 offices Fax: (907) 273-4555 P.O. Box 233769 Phone: (907) 272-1232 worldwide providing environmental Email: [email protected] Anchorage, AK 99523 Fax: (907) 272-1344 planning, assessment, permitting, com- Serving Alaska since 1977. ENSR is an Contact: John Ellsworth Email: [email protected] pliance management and contamina- environmental engineering and con- Phone: (907) 562-2792 Our multidisciplinary staff of qualified tion cleanup. sulting firm with more than 70 offices Fax: (907) 562-4179 and experienced professionals possess a worldwide providing environmental Email: [email protected] diverse array of technical capabilities to Golder Associates planning, assessment, permitting, com- Website: www.aicllc.com provide our clients with a full spectrum 1750 Abbott Rd., Ste. 200 pliance management and contamina- AIC provides cost-effective solutions to of geoscience and engineering consult- Anchorage, AK 99507 tion cleanup. resource development industries. We ing services. Contact: Bob Dugan, mgr., Tom provide innovative ideas to meet each Krzewinski, Mark Musial, Bucky Tart Great Northwest requirement through the provision of best-in-class people and equipment VECO Phone: (907) 344-6001 P.O. Box 74646 coupled with exceptional performance. 949 E. 36th Ave., Ste. 500 Fax: (907) 344-6011 Fairbanks, AK 99704-4646 Anchorage, AK 99508 Contact: Buzz Otis Website: www.golder.com Carlile Transportation Systems Contact: Emily Cross Providing geotechnical engineering, Phone: (907) 452-5617 Phone: (907) 762-1510 Fax: (907) 456-7779 1800 E. 1st Ave. water resource, and geosciences servic- Fax: (907) 762-1001 Email: [email protected] Anchorage, AK 99501 es in support of resource development Email: [email protected] Web site: www.grtnw.com Contact: Linda Leary Web site: www.VECO.com projects in Alaska and the Arctic. Other Specializing in cold weather and heavy Ph: (907) 267-7797 VECO is a multi-national corporation offices worldwide. civil construction, gravel and rock prod- Fax: (907) 276-6786 that provides services, project manage- ucts, site-work, petroleum industry con- Email: [email protected] MWH Other Offices: Fairbanks, Prudhoe Bay, ment, engineering, procurement, con- 1835 S. Bragaw St., Ste. 350 struction, erosion control, underground struction, operations and maintenance utilities and reclamation services. Kenai, Seward, Federal Way, WA, Anchorage, AK 99508 Houston, TX, Edomonton, ALTA – to the energy, resource and process Contact: Brett Jokela industries and the public sector. Pacific Environmental (PENCO) Alaska owned and operated, full serv- Phone: (907) 248-8883 6000 A St. ice, multi-modal, transportation and Fax: (907) 248-8884 Anchorage, AK 99518 logistics company. Email: [email protected] Environmental Engineering Contact: Tom Ulrich, reg. mgr. American The engineers, scientists, and construc- Maine svc. group Crowley Alaska & Consulting tors of MWH provide innovative proj- Phone: (907) 562-5420 2525 C St., Ste. 303 ects and solutions for clients through- Fax: (907) 562-5426 Anchorage, AK 99503 out Alaska and Worldwide. Contact: Craig Tornga AES Lynx Enterprises Email: [email protected] Web site: www.amsghq.com Phone: (907) 278-4978 1029 W. 3rd Ave., Ste.400 Pacific Environmental (PENCO) Fax: (907) 257-2828 Anchorage, AK 99501 6000 A St. PENCO provides environmental response, containment and clean up. Email: [email protected] Contact: Mark Schindler, President & Anchorage, AK 99518 Marine transportation throughout CEO Contact: Tom Ulrich, reg. mgr. American Hazardous wastes and contaminated site clean up and remediation. Asbestos Alaska. North Slope heavy hauling with Contact: Diane Fleisher, office mgr. Maine svc. group CATCO all-terrain vehicles. Phone: (907) 277-4611 Phone: (907) 562-5420 and lead abatement. Petroleum vessel Fax: (907) 277-4717 Fax: (907) 562-5426 services and bulk fuel oil facility and Northern Transportation Email: [email protected] Email: [email protected] storage tank maintenance, manage- 310 K St., Ste. 200 Lynx professionals offer the following Web site: www.amsghq.com ment and operations. Anchorage, AK 99501 services: major project strategic plan- PENCO provides environmental Unitech of Alaska Contact: John Marshall, Lynette Storoz ning and project management; onshore response, containment and clean up. Phone: (907) 264-6682 and offshore projects, exploration and 2130 E. Dimond Blvd. Hazardous wastes and contaminated Anchorage, AK 99507 Fax: (907) 264-6602 development phases, permits and right- site clean up and remediation. Asbestos Email: [email protected] of-way acquisition, National Contact: Debbie Hawley and lead abatement. Petroleum vessel Phone: (907) 349-5142 Marine transportation along Alaska’s Environmental Policy Act (NEPA) docu- services and bulk fuel oil facility and North Slope via Mackenzie River route. mentation, Environmental Assessment Phone: (800) 649-5859 storage tank maintenance, manage- Fax: (907) 349-2733 (EA) and Environmental Impact ment and operations. TOTE-Totem Ocean Trailer Express Statement (EIS) preparation. Email: [email protected] 2511 Tidewater Road PDC Harris Group Email: [email protected] Anchorage, AK 99501 Alaska Anvil 1231 Gambell St. UOA is Alaska’s only 24-hour oil spill Contact: Curt Stoner 509 W. 3rd Ave. Anchorage, AK 99501 remediation, environmental and indus- Phone: (907) 265-7215 Anchorage, AK 99501–2237 Contact: Steve Theno trial supply company. Specialty areas Phone: (800) 234-8683 Contact: Frank Weiss Phone: (907) 644-4716 include sorbents, geotextile, contain- Fax: (907) 278-9689 Phone: (907) 276-2747 Fax: (907) 561-7028 ment berms, drums and ice melt. Email: [email protected] Fax: (907) 279-4088 Email: [email protected] Web site: www.totemocean.com Web site: anvilcorp.com Contact: Mike Moora TOTE’s roll on/roll off ships sail two Other office: Kenai Phone: same as above Environmental Supplies times per week between the Port of 50720 Kenai Spur Hwy, Mile 24.5 Fax: same as above Tacoma and the Port of Anchorage. Kenai, AK 99611 Email: [email protected] Arctic Fire & Safety Transit time is a fast 66 hours. Phone: (907) 776-5870 Web site: www.harrisgroup.com 702 30th Ave. Fax: (907) 770-5871 PDC-Harris Group provides front-end Fairbanks, AK 99701 Weaver Brothers Multi-discipline engineering and design engineering design, detailed design, Contact: Bobby, Shane, Gigi 14223 Kenai Spur Hwy. services including construction manage- and environmental permitting services Phone: (907) 378-2116 Kenai, AK 99611 ment for petro-chemical and heavy to the oil, gas, and power generation Fax: (907) 452-7876 Contact: Glen Dye, terminal mgr. industrial client projects. markets. Email: [email protected] Phone: (907) 283-7975 Your Alaskan owned safety specialist Fax: (907) 283-3677 Alpine-Meadow Quadco since 1975. Gas detection, sales/rentals, Email: [email protected] 11043 Tsusena Circle 6116 Nielson Way containments, U.N. shipping boxes, bar- Other Offices: Eagle River, AK 99577 Anchorage, AK 99518 rels, P.P.E. material handling, totes, spill Anchorage, Alaska Contact: George Snodgrass, president Contact: David Baggett, vp, AK mgr. kits, all absorbents. We stock. Fairbanks, Alaska Phone: (907) 694-7423 Phone: (907) 563-8999 Trucking company specializing in oil Fax: (907) 694-7423 Fax: (907) 563-8985 Pacific Environmental (PENCO) field winch truck services. Bed tandems Email: grsnodgrass@alpine- Email: [email protected] 6000 A St. & loaders plus rig moving capabilities. meadow.com Other offices: Farmington NM, Denver Anchorage, AK 99518 Petroleum and chemical trailers, low- Website: www.alpine-meadow.com CO, Casper WY Contact: Tom Ulrich, reg. mgr. American boys, bulk trailers, vans and flats. We are a small, low-cost, professional, Quadco has supplied services to the Maine svc. group personal company with 18 years engi- Alaska oilfield since 1976. We have Phone: (907) 562-5420 Equipment Sales/Rental neering and environmental experience trained personnel to help with instru- Fax: (907) 562-5426 in Alaska with major oil companies. We mentation, solids control, pipe handling Email: [email protected] Colville offer permitting and compliance, and Top Drive drilling equipment. 24 Web site: www.amsghq.com Pouch 340012 strategic planning, incident investiga- hour on call PENCO provides environmental Prudhoe Bay, AK 99734 tions, crisis management services. response, containment and clean up. Contact: Rick Hofreiter or John Daly Hazardous wastes and contaminated CH2M HILL Phone: (907) 659-3197 site clean up and remediation. Asbestos 301 W. Northern Lights Blvd., Ste. 601 Environmental Response Fax: (907) 659-3190 and lead abatement. Petroleum vessel Anchorage, AK 99516 & Cleanup Diesel, gasoline, jet fuel, aviation gaso- services and bulk fuel oil facility and Contact: Kelly Sobczek line in bulk and small quantity deliver- storage tank maintenance, manage- Phone: (907) 646-0214 ies, electronic card-lock fleet manage- Alaska Interstate Construction ment and operations. Fax: (907) 257-2016 P.O. Box 233769 ment, solid waste and recycling, steel, Email: [email protected] Anchorage, AK 99523 Unitech of Alaska industrial gases and solid waste. Website: www.ch2m.com 2130 E. Dimond Blvd. Contact: John Ellsworth CONAM Construction Other Offices: World Wide Anchorage, AK 99507 Phone: (907) 562-2792 301 W. Northern Lights Blvd., Ste 300 CH2M Hill is a global project delivery Contact: Debbie Hawley Fax: (907) 562-4179 Anchorage, AK 99503 firm with services that span production, Phone: (907) 349-5142 Email: [email protected] Contact: Bob Stinson environmental permitting, treatment Website: www.aicllc.com Phone: (800) 649-5859 PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B11 Baker Hughes INTEQ The Right Stuff: systems integrator matches resources to customers

By SUSAN BRAUND quantitative, wireline-replacement logs in Petroleum Directory Contributing Writer directional, horizontal or exploration wells for optimal placement. ASA space flight designers and Well-site information services — engineers are acutely aware that Using an array of sensors, hardware, soft- N successful missions require the ware and Internet technology, the new most exacting technology and the RigLink data communications service best in human capital — the right stuff. enables clients to access real-time rig site When it comes to meeting project data from any location. needs, Baker Hughes INTEQ also makes HUGHES INTEQ OF BAKER COURTESY sure to provide the right stuff — top Products and Services notch technology and advanced services. Applications for Baker Hughes By providing integrated solutions from INTEQ drilling systems include offshore its oilfield group, INTEQ increases effi- development and exploration wells, ciency, well by well. extended reach wells, horizontal wells, “We can apply the experience and geosteering, performance-drilled straight capabilities of the entire Baker Hughes wells, re-entry wells and coiled tubing organization to provide the right product, design the right system or plan an inte- drilling. grated solution to meet your objectives,” INTEQ offers a full range of drilling says INTEQ’s Alaska Area Manager products: directional only, acoustic, Dave Reimer. “When a project calls for nuclear, gamma ray and resistivity. technology and service from more than Recent technology developments one Baker Hughes company, INTEQ and include: any of our divisions can provide integrat- • TestTrak® for formation testing ed solutions and develop partnerships • AutoTrak® Rotary Closed Loop with customers and contractors. We rep- System —an integrated rotary steerable resent all of Baker Hughes and can com- drilling and MWD/LWD system that mit the company’s full resources to meet- provides precise directional control with ing the needs of your project.” continuous drill string rotation According to company literature, • NaviTrak®/NaviGamma® services Baker Hughes has developed technology —MWD systems that deliver real-time for every phase of well construction and directional and directional/gamma ray maintenance and built an organization to information for drilling operations. deliver solutions that reduce the cost of • Complete line of LWD tools that developing oil and gas. “For example, provide gamma ray/resistivity and your project may call for a comprehen- nuclear services for complete formation sive drill bit program from Hughes evaluation Christensen, directional well planning • APX® (Acoustic Properties from INTEQ, completions systems and eXplorer) — LWD acoustic logging methods designed by Baker Oil Tools, tools electric submersible pump systems engi- • Modular Advanced Pressure neered by Centrilift or a chemical treat- (MAP™) tool provides advanced down- ment program from Baker Petrolite. hole pressure measurements In addition, OASIS — a division • VertiTrak ® — drills perfectly within Hughes Christensen — is the straight holes, self-monitoring Baker Hughes engineering and consult- • CoilTrak® — coiled tubing drilling ing service for drilling optimization. Baker Hughes INTEQ applies its full complement of drilling and completion technologies to • Xtreme Motors® — new extreme OASIS specialists are drawn from a re-enter old wells and improve their production. Baker Hughes INTEQ’s Navi-Trak™ SR MWD downhole mud motors for directional company-wide pool to evaluate difficult probe has flex joints that enable it to guide the wellbore along the tight curve used in short drilling in a wide range of sizes, config- radius re-completions. drilling situations. And, during project ured for directional and straight-hole planning, company information special- tional drilling, measurement- drilling, hole sizes from 3 7/8 inches to ists use custom software and data base while-drilling, logging-while- 23 inches. capabilities to prepare the best well bore drilling and well-site information “We engineer and provide our drilling design to optimize reservoir production. management services. technology as part of a customized sys- Directional drilling tem, including directional and horizontal — INTEQ is an indus- drilling motors, drill bits, measurement- try leader in direction- while-drilling and completions,” says al and performance Reimer. “This integrated approach can drilling applications,

COURTESY OF BAKER HUGHES INTEQ OF BAKER COURTESY enhance overall drilling performance and enhanced by the maximize the production potential of AutoTrak® rotary each well.” closed loop drilling Reimer, an engineering graduate from system and Navi- Colorado School of Mines, has been COURTESY OF BAKER HUGHES INTEQ OF BAKER COURTESY Drill® Ultra Series with the company for 22 years. “INTEQ tools. The company’s is dynamic … it’s always been proactive drilling systems have in providing proper technology and serv- been used in thousands ices to help customers drill well and in of vertical, horizontal Baker Oil Tools, a company within the Baker Hughes sys- making sure technologies needed for the tem, offers wide array of completion, stimulating, fish- and directional wells next generation are being developed. It’s ing and workover product lines. around the world. interesting to see how the energy busi- Measurement-While-Drilling ness changes and progresses,” he says. INTEQ increases well efficiency (MWD) — INTEQ offers surface “Some of the technology that was brand and productivity and downhole, information and evaluation technology to help new when I started are now common- Formed through a merger of individ- control well placement. “Our sys- place. The advancing technology keeps it ual directional drilling and measure- tems provide accurate informa- exciting and interesting… there are ment-while-drilling companies, INTEQ tion to help oil companies always new challenges. It’s rewarding to has been in Alaska for more than 20 enhance drilling performance, have access to solutions that add value at years. Adding value to the drilling optimize well placement and every step of the process — drilling, process through its products and servic- Baker Hughes workers measure the outer diameter of a gather quantitative information mud motor. Baker Hughes supports projects of all sizes, completion and production.” ● es, INTEQ delivers advanced drilling about the reservoir,” says Reimer. with people experienced in every phase of well con- technologies and services that increase struction and maintenance, industry-leading technology Logging-While-Drilling Editor’s note: Susan Braund owns efficiency and enable precise well place- and a world-wide service network. Baker Hughes INTEQ (LWD) — LWD systems provide serves as the focal point for integrated solutions involv- Firestar Media Services in Anchorage, ment. Major capabilities include direc- ing more than one Baker Hughes company. Alaska. B12 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004 A new era in energy-related construction ASRC Energy Services Pipeline, Power and Communications diversifies its business to meet new market conditions

By ALAN BAILEY first Arctic subsea pipeline for the Northstar field. The last 10 years, and the span across the Tanana River was the Petroleum Directory Contributing Writer Northstar project involved bundling several pipelines longest during that same time period.” The company also together and laying them through the sea ice, Laasch said. builds and maintains electrical distribution systems includ- n January of this year Houston Contracting Co. The company also handled the construction of the Alpine ing systems for the North Slope Borough and the became ASRC Energy Services Pipeline, Power and pipeline on the North Slope — the first pipeline in the Department of Defense. I Communications Inc. The renaming and re-structuring Arctic that involved directional drilling. Power and Communications is also the locate contrac- took place as part of the rebranding of Natchiq Inc. In the construction of the Badami pipeline on the North tor for the Anchorage area. Company specialists use utility into ASRC Energy Services. Houston Contracting’s sub- Slope the company participated in pioneering the alliance maps and special equipment to locate buried electrical sidiary Global Power and Communications also changed team approach to a project. lines and other utility structures. its name to ASRC Energy Services Power and “Badami was the first alliance project on the North Power and Communications has amassed several years Communications. And with the current slowdown in work on Alaska’s North Slope, the rebranding came at just the right time — diversification from oil and gas into broader energy-relat- ed construction work within and outside Alaska is enabling ASRC Energy Services Pipeline, Power and Communications to maintain a full order book. “You can characterize Pipeline, Power and Communications as an energy services company” Warren ASRC ENERGY OF COURTESY Christian, company president, told Petroleum News, “Our work is concentrated in mechanical, electrical, industrial projects ... we’ve switched our focus away from just build- ing cross-country pipelines.” ASRC Energy Services Pipeline, Power and Communications now constitutes one of three business units within ASRC Energy Services, a subsidiary of Arctic Slope Regional Corp. Arctic Slope Regional Corp. is an Alaska Native regional corporation. As well as broadening the company focus, rebranding more closely identifies ASRC’s subsidiary companies with the regional corporation, Jack Laasch, ASRC Energy Services’ executive vice president for strategic develop- ment and external affairs, said. The company re-organiza- 48" Pipe Bridge being installed across the Putt River to act as a carrier for the Northstar oil pipeline. tion is also streamlining our management structure and enabling more efficient use of personnel, Laasch said. Slope,” Christian said. “We completed the project on time of experience in laying fiber optic cable. Although there’s The three businesses within ASRC Energy Services and within budget.” relatively little installation of new fiber optic line at the complement each other as a team. As a result, ASRC moment, the company is doing some communications Energy Services Pipeline, Power and Communications can Recent pipeline work work for the Department of Defense and recently signed a enlist expertise such as engineering design from the other ASRC Energy Services Pipeline, Power and contract for communications work for Copper Valley businesses. Communications is also continuing Houston Contracting’s Telephone Cooperative in Alaska. tradition of pipeline construction. High reputation “We successfully completed the Kenai Kachemak Diversification With its long-serving cadre of dedicated employees, Pipeline (for Marathon and Unocal) last year,” Christian As part of its diversification strategy, ASRC Energy Christian expects ASRC Energy Services, Pipeline Power said. Services Pipeline, Power and Communications is perform- and Communications to maintain the prominent reputation In another recent Alaska project the company replaced ing electrical and mechanical construction for the of Houston Contracting and Global Power and a section of the Enstar gas line that runs from Cook Inlet Department of Defense at Fort Greely, Alaska, and at Communications. to the Matanuska- Vandenberg Air Force Base in California. “We have a loyal and Susitna Valley. The The company is also the maintenance contractor for the dedicated workforce. replacement section trans-Alaska pipeline and the Valdez Marine Terminal. Our superintendents required a 4,300-foot “We perform maintenance and execute projects along have worked for directional drill the entire 800 miles of the trans-Alaska pipeline,” Houston for years and under the Susitna Christian said. years — our work River. Periodically the pipeline is shut down, enabling the

crews are superb,” ASRC ENERGY OF COURTESY The company has company to perform specific maintenance work, which is Christian said. “... There extended its business not possible during normal operations. Careful planning are multiple generations in the Lower 48 — it and efficient work minimize down time for the pipeline of employees working has offices in the system. for our company. And, as Pacific Northwest And so, ASRC Energy Services Pipeline, Power and a matter of fact, our and Houston, Texas, Communications is using a wide variety of assignments to shareholder employment in addition to those ride the current dip in oil and gas construction projects in is very important to me in Anchorage, Alaska. However, with plenty of potential for future oil personally and our com- Watson 3000 Air Drill, drilling holes for vertical support member's Fairbanks and and gas development in the state, Christian and Laasch pany. One of our core installation for Northstar. Deadhorse, Alaska. think that activity in Alaska will return, although not at values is to hire, train, In the Lower 48, such a large scale as in the past and with more involve- promote and retain ASRC shareholders.” the company is currently working for Williams on an ment from the independent oil companies. And the company staff has maintained an excellent and eight-and-a-half mile gas pipeline in Everett, Wash. “The infrastructure is in place now and the big fields enviable safety record. In its recent work the company has drawn on its experi- are in decline, so the magnitude of the projects that come “Pipeline, Power and Communications has a great rep- ence of utilizing directional drilling on its projects — most up is going to be significantly smaller than what we’ve utation with our clients to complete projects safely,” pipeline projects nowadays use directional drilling tech- experienced in the past,” Laasch said. Christian said. niques to string pipelines under natural and man-made Meantime, ASRC Energy Services Pipeline, Power and The company also enjoys an exceptional relationship obstacles such as rivers and roads, Christian explained. Communications continues to pursue its diversification with its unions. “There is a very small footprint at the construction strategy. “We are very pleased with our union affiliations — site,” Christian said. “They just drill under the river and “Right now our focus is going to be mostly on our we’re a union company because we want to be,” Christian the drilling mechanism grabs the pipe and pulls it diversification efforts until the Alaska oil and gas market said. “We get highly skilled craftsmen from the unions ... through.” rebounds,” Christian said. “Ninety-eight percent of our they’re definitely an important and large part of our suc- work was on the North Slope six years ago. This year it’s cess.” Power and communications zero.” The company’s Power and Communications subsidiary In fact, all of the businesses within ASRC Energy Long history builds power transmission lines, fiber optic communica- Services have positioned themselves to respond flexibly to As Houston Contracting, the company’s exemplary tions systems, power distribution systems and commercial whatever energy-related services the market needs. record in pipeline construction goes back to the 1930s. electrical installations. And that flexibility seems to be the way of the “By the ‘60s Houston had projects worldwide,” “We’ve built electrical transmission projects like the future. ● Christian said. “By 1970 it was active in Alaska and was Golden Valley Intertie — that was a rather and unique and acquired by ASRC in ‘85.” challenging project,” Christian said. “We installed the Editor’s note: Alan Bailey owns Badger Productions in The company’s more notable achievements include the tallest and heaviest structures used in Alaska during the Anchorage, Alaska PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B13 COURTESY OF HANOVER CANADA OF HANOVER COURTESY CANADA OF HANOVER COURTESY

A typical lease package from Hanover Canada. This particular three-stage package includes a Waukehsa 5790GL driver (1215 HP) with Ariel JGK/4 compressor, built for up to 2 percent sour service. Hanover has the largest compressor lease fleet at 3.7 million hp worldwide. Hanover Canada: Comprehensive, innovative oil patch solutions Canadians continually develop new technologies to enhance energy development; Albertans have history of world-class, innovative performance

By SUSAN BRAUND industry needs, which led to the company’s Petroleum Directory Contributing Writer newly launched stocking program, offering packaged, ready-to-go standard dehydration ince the world’s first oil well was and separation packages for quick delivery. drilled in Oil Springs, Ontario, “If a client says they need it in two weeks, S Canada, in 1857, Canadians have had we can now offer delivery right away. If oil fever. They have designed, built they need a set up with a two-inch ball and now operate a huge network of valve and we have a stock package with a

pipelines and a natural gas pipeline system CANADA OF HANOVER COURTESY 1.5-inch valve, they’ll usually say OK. It’s a that supplies 45 percent of North American good product with good prices in a compet- natural gas requirements, according to the itive market. Hanover’s business is solving Alberta Department of Economic customers’ problems and assisting them to Development, and they continue to be at improve their operations and meet their the forefront of technological change in the goals.” industry. Saville contends that Hanover Canada With its vast reserves of oil and natural stands above its competition in three ways: View of Hanover Maloney’s back storage lot in Calgary, Alberta, Canada. The Calgary shop gas, Alberta ranks as one of the world’s top is one of several in the Hanover system that can produce design/manufacturing services for availability, amounts of equipment and energy producers, trading with more than domestic and international customers. quick delivery. “Our lease fleet has the 150 countries. The province’s economy and Sable Offshore Energy Project as mechani- tured to comply with NACE and 14C off- most equipment ready to go of anyone in technology infrastructure is based on the oil cal engineer with responsibilities in design, shore specifications. the game and we’re working towards the and gas industry. One Alberta company construction, installation and commission- “There is lots of design expertise in the same with our stocking program. As quick keeping pace with needs of the oil patch is ing. He joined Hanover three years ago as Calgary shop. It’s one of several in the as customers can get a truck to the yard, Hanover Canada, a manufacturer and operations manager overseeing the lease Hanover system that can produce they’re ready to go. Hanover can provide a worldwide supplier of quality oil and gas fleet and received a promotion to country design/manufacturing services for domestic range of products. Eventually we’ll be a production equipment, natural gas com- manager in 2004. and international customers. That’s one of one-stop shop.” pression services, treatment services, com- the advantages of being part of a large pressor fabrication, and measurement serv- Hanover Maloney fabrication shop company — the depth of services. The Challenges ices. Operating in the Western Hemisphere, In July 2000, Hanover acquired the shop is a cost center that can build things Hanover started small in 1990 and including Argentina, Venezuela, Mexico Calgary-based 40-year-old Canadian firm expertly for customers all over the world. quickly grew their lease fleet in the United and Canada, the company is expanding into Maloney Inc., forming Hanover Maloney. It’s known as a high-spec, capable shop. States. This further led into acquiring simi- Europe, Asia, and Australia. The fabrication shop, with its staff of quali- Hanover Canada is actually a customer of lar companies, 49 acquisitions in 11 years. Since 1997, the Calgary, Alberta-based fied engineers, designers, drafts people, the shop.” Now the company has reached critical Hanover Canada, in association with fabri- manufacturing personnel and support staff, mass and it’s time to standardize. cator Hanover Maloney, has been doing has established a reputation worldwide for Lease fleet “Our biggest opportunity is bringing the business in complementary arenas: natural its skid mounted dehydration units, sulphur Hanover Canada owns and operates a company together. Hanover is a big gas compression leasing and used unit sales recovery plants and gas treating facilities. fleet of 170 compressor units, ranging from machine with offices in the UK, Italy, and oil and gas production equipment. Hanover Maloney’s product line consists 50 hp to 1600 hp. Venezuela, Argentina, Canada and the “We’re dedicated to the rental, leasing of medium to large comprehensive oil and “Hanover has the largest compressor United States among others,” says Saville. “ and lease-purchase of compression and gas production facilities including heaters, lease fleet at 3.7 million hp worldwide. Our CEO, Chad Deaton, is implementing a production equipment for the Canadian oil separators, dehydrators, oil emulsion We’re a little piece of that with 85,000 hp, large measure to help the company act as and gas industry,” says Hanover’s Country treaters, free water knock outs, slug catch- the largest lease fleet in Canada,” says one well-oiled machine and we want to be Manager Rod Saville. “We have a variety ers, coalescers, precipitators, production Saville. “Leasing is a growing field in able to channel our expertise through our of compressors, both screw compression systems, gas sweetening units, sulphur Canada. We’re hoping it will follow the international VPs and be more cost effec- packages and reciprocating gas compres- recovery plants, dew-point control and U.S. model with end users doing much tive in more developed arenas … It’s an sors and we’re capable of providing hydrocarbon recovery plants, and custom more gas compressor leasing. Compressors ongoing effort.” The cornerstone of the process, mechanical and instrument design design processing packages. are depreciating assets, and site specific. If effort is a new computer system that allows engineering for any production equipment Technology engineers and designers the end users will lease vehicles, they bearers of company expertise to travel from projects, including industry standard sepa- have developed extensive computer-based should start looking at when it’s attractive one venue to another and use familiar, con- rators, heaters, and dehydrators. Just tell us process and design programs to ensure the to lease compression. We’re always work- sistent processes. what you need done and we’ll get it done. highest quality and most reliable end prod- ing towards understanding the lease vs. “We’ve basically implemented it in Hanover has the resources for your natural ucts. In-house quality assurance staff facili- purchase point better ourselves to help our Canada, and are starting to see some of the gas compression and processing needs.” ties are above and beyond specifications customers.” synergy happening, some cross pollination Saville started in the engineer services required by Alberta Boiler and Safety of offices using the same processes.” ● industry in 1991, doing vibration/pulsation Association and American Society of Stocking program control on reciprocating gas compressors. Editor’s note: Susan Braund owns Mechanical Engineers. Also, API and Years of experience has provided After several years he took a position at the Firestar Media Services in Anchorage, ASME code equipment can be manufac- Hanover with data about the most common Alaska. B14 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

COMPANY NEWS COMPANY NEWS Chiulista Camp Services acquires Schlumberger buys software, Mayflower Catering consulting firm Chiulista Camp Services said May 20 that it has pur- Schlumberger Information Solutions has acquired the assets of Decision Team, chased the assets and operations of Anchorage-based an Austrian company that provides oil and gas software and consulting services. Mayflower Catering, effectively expanding the company’s Schlumberger didn’t disclose the price it paid for the acquisition, announced line up of camp and exploration services to include catering May 13. in Anchorage and several other communities across the state. Decision Team adds a new suite of intelligent reservoir surveillance software A subsidiary of Calista Corp., Chiulista provides remote- to the Schlumberger arsenal. The software, called DECIDE!, “intelligently cap- site camp services for the petroleum, mining, fishing and tures, analyzes, conditions and transforms both historical and real-time produc- construction industries. tion data into actionable operational decisions,” according to a press release from “Chiulista is proud to now add specialty catering to our Schlumberger. growing list of products and services,” Chiulista President GEORGE GARDNER The software’s notification systems provide ranking lists of those wells that are George Gardner said. “It gives us an Anchorage presence, under performing, and automated event detection replaces routine field surveil- fits in very well with our overall plans for growth in Alaska, and will soon be very lance, resulting in significant time saving, according to the company. useful as a tool to promote training for Calista Corp. shareholders that are inter- Decision Team has been based in Baden, Austria. ested in careers in the culinary arts field.” —PETROLEUM NEWS Calista, the second largest ANCSA corporation in the state, represents 56 vil- lages in the Yukon-Kuskokwim Delta and is owned by more than 13,000 Yup’ik, Cup’ik and Athabascan shareholders with ancestral ties to Southwest Alaska. Phone: (907) 278-6600 Fax: (907) 248-4429 Calista also has the rights to 6.5 million acres of subsurface and 300,000 acres Fax: (907) 278-3255 Email: [email protected] of surface estate in Alaska. Email: [email protected] Web site: www.pesiak.com The corporation’s primary areas of business are government and private sector Oil, gas, and mining facility; pipeline, P.E.S.I. provides both conventional and contracting, real estate, camp and exploration services, oil industry, newspaper civil, and commercial construction. specialty products and services for the Alaska oil industry. Regardless of your publishing and printing and natural resource development. Hanover Canada location, you will receive products and Calista, along with project manager Placer Dome US, is working to develop 500, 101-6 Ave. SW service that is guaranteed to meet your Donlin Creek into an operating gold mine. Calgary, AB, T2P 3P4 Canada requirements. for Alaska oil industry. For information, or to access Mayflower Catering menus, go to www.anc- Contact: Rod Saville, Country Mgr. Canada biz.com/mayflowercatering.com, or call 907-274-2223. Phone: (403) 261-6801 Quadco —PETROLEUM NEWS Fax: (403) 266-1066 6116 Nielson Way Email: [email protected] Anchorage, AK 99518 Web site: www.hanover-canada.com Contact: David Baggett, vp, AK mgr. Hanover Canada is the leading provider Phone: (907) 563-8999 New sales executive at Northern Air Cargo of natural gas compression services and Fax: (907) 563-8985 Dorothy Diamond has been added to the sales and mar- equipment in Canada. We maintain an Email: [email protected] keting staff at Alaska’s Northern Air Cargo. She will be an 85,000 horsepower rental compression Other offices: Farmington NM, Denver account manager for several of the company’s cargo hubs, fleet in Canada and over 3.6 million CO, Casper WY horsepower rental fleet worldwide. Quadco maintains a fleet of oil field and will work in marketing to governmental clients. Hanover custom designs production instrumentation, solids control and Diamond has worked most of her career in government, equipment in accordance with cus- other equipment for oilfield and indus- sales and management in Anchorage and Ketchikan. She has tomer’s specifications using strict inter- trial needs. We represent Varco Oil NORTHERN AIR NORTHERN CARGO a degree in business analysis from the University of Alaska nal engineering standards. We have the Tools, MD Totco, Texas Oil Tools, SPM, Anchorage. capability to provide process, mechani- Derrick Equipment and various other cal and instrument design engineering manufacturers. 24 hours on call Her hiring was announced May 20. for any production equipment project —PETROLEUM NEWS DOROTHY DIAMOND worldwide. Totem Equipment & Supply 2536 Commercial Dr. Kenworth Alaska Anchorage, AK 99501 2838 Porcupine Dr. Contact: Mike Huston, vp New president for VECO Alaska Anchorage, AK 99501 Phone: (907) 276-2858 Contact: Jim Scherieble, branch mgr. Charles F. (Chuck) O’Donnell has been promoted to pres- Fax: (907) 258-4623 Phone: (907) 279-0602 Email: [email protected] ident and general manager of VECO Alaska Inc. O’Donnell’s Phone: (800) 478-0602 Web site: www.toteminc.com role will include responsibility for all VECO Corp. operating Fax: (907) 258-6639 Totem Equipment & Supply Inc. locally entities within the Alaska region. Email: [email protected] owned and operated since 1961. O’Donnell worked for Alyeska Pipeline Service Co. for 23 Email: [email protected] Supplies light, medium and heavy

COURTESY OF VECO OF COURTESY Website: www.kenworthalaska.com years before joining VECO in 2000 as a senior project man- equipment. Specializing in temporary Fairbanks office: and permanent heating solutions. ager. He became vice president of project operations for 3730 Braddock St. VECO Alaska in 2002. Fairbanks, AK 99701 Travco Industrial Housing, Ltd. O’Donnell is replacing Val Molyneux, who is moving to a Contact: Ed Lewis, branch mgr. 1507 8 St. role in the parent VECO Corp. Molyneux, a 30-year employ- Phone: (907) 455-9900 Nisku, Alberta, Canada CHUCK O’DONNELL Fax: (907) 479-8295 Contact: Stewart Orange, sales rep. ee, led VECO Alaska for five years. Kenworth Alaska is a full service truck Phone: (888) 387-2826 The promotion was announced by VECO Corp. President Pete Leathard on dealership in two locations – Fax: (780) 955-8938 April 23. Anchorage and Fairbanks. New and Email: [email protected] used truck sales, parts and service. Web site: www.travco.ca —PETROLEUM NEWS Travco is a world-class manufacturer of NEI Fluid Technology industrial and commercial modular 3408 Arctic Blvd. structures. Our modular structures are WesternGeco completes first Q-marine Anchorage, AK 99503 used around the world as work camps, Contact: Kathryn Russell, president offices, wellsites, resorts, schools, etc. survey in Danish sector of North Sea Phone: (907) 561-4820 Fax: (907) 562-2316 Expeditor/Clerk Services WesternGeco said June 8 that it has completed acquisition of a Q-Marine seismic Email: [email protected] survey for the Danish Oil and Natural Gas Co. over the Siri field in the North Sea. The Suppliers of petrochemical refueling 128-square-kilometer, high-resolution Q survey was acquired in May over a 1996 her- and testing equipment, meters and Chiulista Camp Services/Mayflower valve systems for the oil and gas indus- Catering itage survey and will include 4D processing of the vintage data. 6613 Brayton Dr., Ste. C “WesternGeco Q-Technology was selected for this monitor survey because of the try and portable measurement for petroleum, chemicals and bulk liquids. Anchorage, AK 99507 high activity level in the area where the increased spatial Q-marine sampling could We also supply refrigerant recovery and Contact: George B. Gardner, pres/gm enhance noise reduction,” said Jesper Wissendorf Hansen, operations geophysicist recycling equipment. Phone: (907) 278-2208 with Danish Oil and Natural Gas. “Furthermore, the steerable streamers added a safe- Fax: (907) 677-7261 Email: [email protected] ty element to the work around the installations in the area, in addition to the advantage Peak Oilfield Service 2525 C St., Ste. 201 The 100 percent Alaska Native owned of steering the feather.” Anchorage, AK 99503 and operated catering company on the The survey was conducted in two phases, WesternGeco said. First, the Q- Contact: Bill Stamps, business develop- North Slope, catering and housekeep- Technology vessel Western Pride, towing six 3,200-meter cables with 100-meter sep- ment/ex. affairs ing to your tastes, not ours. Phone: (907) 263-7000 aration, repeated the 1996 survey. An interleaved pass then increased data density and Well Safe Inc. will be used for enhanced imaging. Fax: (907) 263-7070 Email: [email protected] 209 E. 51st Ave. “The high repeatability and superior resolution of the Q survey will enable Web site: www.peakalaska.com Anchorage, AK 99503 improved knowledge of the Siri field,” said Roar Bekker, manager, WesternGeco Alaska based general contractors. Contact: Ken Carroll, district mgr. Europe. Phone: (907) 743-9871 Petroleum Equipment & Services Fax: (907) 743-9872 —PETROLEUM NEWS 5631 Silverado Way, Ste G Email: [email protected] Anchorage, AK 99518 Web site: www.wellsafe.com Contact: Kevin Durling/Donald Parker A full service safety company specializ- Phone: (907) 248-0066 ing in remote medical support, expedi- PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B15 tors, confined space rescue teams, H2S 42003 McKenzie Hwy. and safety consultants, OSHA training Hay River, NWT X0E0R9 and rental/sales of gas detection and Contact: John Marshall breathing air systems. Phone: (867) 874-5167 Fax: (867) 874-5179 Fertilizer Email: [email protected] Web site: www.ntcl.com Agrium Marine transportation along the P.O. Box 575 McKenzie River to the Beaufort Sea and Kenai, AK 99611 Alaska’s North Slope. COURTESY OF HANOVER CANADA OF HANOVER COURTESY Contact: Lisa Parker, govt. relations Northwestern Arctic Air Phone: (907) 776-3275 6231 S. Airpark Pl. Fax: (907) 776-5579 Anchorage, AK 99502 Email: [email protected] Contact: Judy McClellan, office mgr. Web site: www.agrium.com Phone: (907) 245-4566 Value added manufacturer of fertilizer Fax: (907) 245-4567 products. Email: [email protected] Web site: www.NWArcticAirAK.com Financial Services All jet fleet 24/7. Large cargo doors accommodate long drilling equipment. Dynamic Capital Management HAZMAT and express package delivery 471 W. 36th Ave., Ste. 201 services provided. Member Medallion Anchorage, AK 99503 Foundation. Contact: David Gottstein Phone: (907) 562-6374 Oilfield Transport Toll free: (800) 280-3962 (DYNA) 6816 Lowell Cir. Fax: (907) 563-9502 A typical lease package from Hanover Canada. The particular three-stage package Anchorage, AK 99502 Alaska money management firm, offer- includes a Waukehsa 5790GL driver (1215 HP) with Ariel JGK/4 compressor, built for up Contact: Henry Minich to 2 percent sour service. Hanover has the largest compressor lease fleet at 3.7 million Phone: (907) 229-9647 ing experienced professional judge- hp worldwide. See the company profile on page B13. ment, leading edge technology, and Fax: (907) 245-8930 customized portfolios. Individual and Email: [email protected] corporate clients. Contact: Katie Bender, Marketing and CATCO all-terrain vehicles. Complete on-site rig service and logis- Logistics Technician tics since 1975. Highway and remote UBS Financial Services, Inc. Phone: (907) 265-2485 ERA Aviation transportation of equipment via barge 3000 A St., Ste 100 Fax: (907) 265-2597 6160 Carl Brady Drive or air, for mining or oilfield projects, to Anchorage, AK 99503 Email: [email protected] Anchorage, AK 99502 any location in Alaska. Contact: Steven Lukshin, financial advis- The Alaska Railroad Corporation offers Contact: Bryan Blixhavn er real estate, passenger and freight serv- Phone: (907) 248-4422 Panalpina Phone: (907) 261-5914 ices – including complete services to Fax: (907) 266-8383 4305 W. International Airport Rd. Toll Free: (866) 261-5914 move your freight between Alaska, the Email: [email protected] Anchorage, AK 99502 Fax: (907) 261-5990 Lower 48 and Canada. Web site: www.eraaviation.com Contact: John Hodel, branch mgr. Email: [email protected] Helicopter and fixed wing contract and Phone: (907) 245-8008 Web site: www.ubs.com/fa/stevenluk- Alaska Terminals charter services; scheduled airline serv- Fax: (907) 245-8018 shin 400 W 70th Ave., Ste.3 ice. Email: [email protected] UBS Financial Services is a leading U.S. Anchorage, AK 99518 Web site: www.panalpina.com F.S. Air financial service firm serving individuals, Contact: Calista Wood Other offices: 6121 S. Airpark Place corporations and institutions offering Phone: (907) 349-6657 Houston: (281) 446-0600 Anchorage, AK 99502 investments, cash management and Fax: (907) 349-2045 Calgary: (403) 291-1137 Contact: Sandra Butler International and domestic freight for- 401(k) services Email: [email protected] Web site: www.akterminals.com Phone: (907) 248-9595 warding and logistics services. Other Offices: Fax: (907) 243-1247 Integrated solutions for supply chain Fire Protection Mitchell Moving & Storage, Seattle management. Specialists in oil and Glacier State Moving & Storage, Kenai Aviation energy projects. Arctic Fire & Safety Fairbanks P. O. Box 46 702 30th Ave. Alaska Terminals provides full service Kenai, AK 99611 Renew Air Taxi Fairbanks, AK 99701 household goods relocation services to, Contact: Bob or Jim Bielefeld P.O. Box 61230 Contact: Bobby, Shane, Gigi from, and within Alaska. International, Phone: (907) 283-4124 Fairbanks, AK 99706 Phone: (907) 378-2116 and local residential and office moves; Phone: (800) 478-4124 (within Alaska) Contact: Bob Wener Fax: (907) 452-7876 heated, and secured storage. Fax: (907) 283-5267 Phone: (907) 457-7287 Email: [email protected] Email: [email protected] Fax: (907) 457-7288 Your Alaskan owned safety specialist Brooks Range Supply Air taxi services provided since 1961 Email: [email protected] since 1975. Extinguisher recharging and Pouch 340008 state wide, mostly Cook Inlet. Single Web site: www.RenewAir.com sales, alarm/system service, NFPA P.P.E., 1 Old Spine Road engine and twin Bonanza. Other Office: clothing, MSA airpacks, hydro testing, Prudhoe Bay, AK 99734 Dillingham, AK 99576 fire vehicles and accessories, TIC’s. Contact: Mike Kunkel/Craig Welch, gen- Lynden Phone: (907) 842-3440 eral managers Alaska Marine Lines Turbine Otter air support for remote MEDC International Phone: (907) 659-2550 Alaska Railbelt Marine seismic exploration, mining and con- 5829 West Sam Houston Pkwy, North, Toll Free: (866) 659-2550 Alaska West Express struction sites. Cargo, fuel and passen- Ste.1005 Fax: (907) 659-2650 Lynden Air Cargo gers on wheels, wheel skis and amphib- Houston, TX 77041 Email: [email protected] Lynden Air Freight ian floats. Contact: Phil Hausman, U.S. sales mgr. Expediting and delivery of hardware Lynden International Phone: (713) 937-9772 and more throughout oilfield and Lynden Logistics Span-Alaska Consolidators 8130 S. 216th St. Fax: (713) 937-9773 North Slope villages. Open 24 hours, Lynden Transport Kent, WA 98032 Email: [email protected] 365 days a year. Toll free number 866- 6441 S. Airpark Pl. Contact: Tom Landry, executive v. p. Other Office: MEDC Ltd. – UK 659-2550. Anchorage, AK 99502 Website: www.medc.com Contact: Jeanine St. John Phone: (800) 257-7726 MEDC design, manufacture and sell a CN Aquatrain Phone: (907) 245-1544 Phone: (907) 349-3606 (Anchorage) range of UL/CENELEC approved field 3015 Madison Way Fax: (907) 245-1744 Fax: (253) 395-7986 devices for fire & gas and communica- Anchorage, AK 99508 Email: [email protected] Email: [email protected] tions systems for use in potentially Contact: Laurie A. Gray, agent The combined scope of the Lynden Website: www.spanalaska.com explosive atmospheres. Phone: (907) 279-3131 companies includes truckload and less- Alaskan freight consolidator/forwarder serving all of Alaska with timely and Toll free: (800) 999-0541 than-truckload highway connections, friendly service. Inbound service from Fax: (907) 272-3963 scheduled barges, intermodal bulk Freight/Shipping & Cargo the Lower 48 to Alaska. “Promises CN Aquatrain has provided Alaska with chemical hauls, scheduled and char- Made, Promises Delivere Air Logistics of Alaska dependable access to Canadian and tered air freighters, domestic and inter- 1915 Donald Ave. Lower 48 markets for 38 years. national air forwarding and interna- TOTE-Totem Ocean Trailer Express tional sea forwarding services. 2511 Tidewater Road Fairbanks, AK 99701 Carlile Transportation Systems Anchorage, AK 99501 Phone: (907) 452-1197 1800 E. 1st Ave. Northern Air Cargo Contact: Curt Stoner Fax: (907) 452-4539 Anchorage, AK 99501 3900 W. International Airport Rd. Phone: (907) 265-7215 Contact: Dave Scarbrough Contact: Linda Leary Anchorage, AK 99502 Phone: (800) 234-8683 Phone: Anchorage: (907) 248-3335 Ph: (907) 267-7797 Contact: Nick Karnos, acct. mgr. Fax: (907) 278-9689 Email: [email protected] Fax: (907) 276-6786 Anch./Prudhoe Bay Email: [email protected] Helicopter contract and charter services. Email: [email protected] Phone: (907) 249-5161 Web site: www.totemocean.com Other Offices: Fairbanks, Prudhoe Bay, Fax: (907) 249-5194 Alaska Airlines Cargo TOTE’s roll on/roll off ships sail two Kenai, Seward, Federal Way, WA, Email: [email protected] P.O. Box 68900 times per week between the Port of Houston, TX, Edomonton, ALTA Web site: www.nac.aero Seattle, WA 98168 Tacoma and the Port of Anchorage. Alaska owned and operated, full serv- Serving the aviation needs of rural Contact: Keola Pang-Ching, director, Transit time is a fast 66 hours. cargo sales ice, multi-modal, transportation and Alaska for almost 50 years, NAC is the Phone: (206) 433-3122 logistics company. states largest all cargo carrier moving Fax: (206) 433-3225 nearly 100 million pounds of cargo on Crowley Alaska scheduled flights to 17 of Alaska’s Fueling Services Email: [email protected] 2525 C St., Ste. 303 Award winning cargo services to more busiest airports. NAC’s fleet of DC-6, B- Anchorage, AK 99503 Colville places, more often, with more lift to, 727, and ATR-42 aircraft are available Contact: Craig Tornga Pouch 340012 from, and within the state of Alaska. for charters to remote sites and flag Phone: (907) 278-4978 stops to 44 additional communities. Prudhoe Bay, AK 99734 Alaska Railroad Corp. Fax: (907) 257-2828 Contact: John Daly, Kevin Cilk P.O. Box 107500 Email: [email protected] Northern Transportation Phone: (907) 659-3197 Anchorage, AK 99510 Marine transportation throughout 310 K St., Ste. 200 Fax: (907) 659-3190 Alaska. North Slope heavy hauling with Anchorage, AK 99501 Email: [email protected] B16 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Diesel, gasoline, jet fuel, aviation gaso- environmental engineering and con- people and technology, working Logistics: (907) 243-8677 line in bulk and small quantity deliver- sulting firm with more than 70 offices together to offer exploration and pro- Website: evergreenaviation.com ies, electronic card-lock fleet manage- worldwide providing environmental duction solutions for the life of oil and Evergreen’s diverse fleet has provided ment, solid waste and recycling, indus- planning, assessment, permitting, com- gas reservoirs. award-winning safety to Alaskans since trial gases and solid waste. Tesoro fuel pliance management and contamina- 1960 in petroleum exploration & pro- station. tion cleanup. Health Care Professionals duction, firefighting, forestry, construc- tion, search & rescue, cargo transport, General Oilfield Supplies Golder Associates and utility transmission. 1750 Abbott Rd., Ste. 200 Aeromed International Anchorage, AK 99507 4700 Business Park Blvd., Ste. E25 Alaska Tent & Tarp Contact: Bob Dugan, mgr., Tom Anchorage, AK 99503 Industrial Gases 529 Front St. Krzewinski, Mark Musial, Bucky Tart Contact: Brooks Wall, director Fairbanks, AK 99701 Phone: (907) 344-6001 Phone: (907) 677-7501 Colville Contact: Jim Haselberger Fax: (907) 344-6011 Fax: (907) 677-7502 Pouch 340012 Phone: (907) 456-6328 Website: www.golder.com Email: [email protected] Prudhoe Bay, AK 99734 Phone: (800) 478-8368 Providing geotechnical engineering, Web site: www.ykhc.org Contact: John Daly, Kevin Cilk Fax: (907) 452-5260 water resource, and geosciences servic- Aeromed International is an all jet criti- Phone: (907) 659-3197 Email: [email protected] es in support of resource development cal car air ambulance fleet based in Fax: (907) 659-3190 We are a commercial and industrial fab- projects in Alaska and the Arctic. Other Anchorage. Medical crews are certified Email: [email protected] ric business. We make covers. offices worldwide. Flight Nurses and certified Flight Diesel, gasoline, jet fuel, aviation gaso- Paramedics. line in bulk and small quantity deliver- MRO Sales Hunter 3-D ies, electronic card-lock fleet manage- 5631 Silverado Way, Unit G 9898 Bissonnet St., Ste. 362 Alaska Massage & Bodyworks ment, solid waste and recycling, indus- Anchorage, AK 99518 Houston, TX 77036 Hilton Anchorage Fitness Center trial gases and solid waste. Tesoro fuel Contact: Don Powell Contact: Dan Huston, vice president 500 W. 3rd Ave. station. Phone: (907) 248-8808 Phone: (713) 981-4650 Anchorage, AK 99501 Fax: (907) 248-8878 Fax: (713) 981-4650 Contact: Patricia Main Industrial Parts & Supply Email: [email protected] Email: [email protected] Phone: (907) 240-6880 Web site: www.mrosalesinc.com Email: [email protected] Web site: www.hunter3dinc.com Brooks Range Supply Other offices: Hunter 3-D is a geophysical consulting Web site: www.akmassage.com Kenai: Al Hull (907) 335-2782 Alaska Massage & Bodyworks is the in- Pouch 340008 company based in Houston, Texas. We 1 Old Spine Road MRO Sales offers products and services interpret seismic, gravity and magnetic house professional massage therapy that are special to the Alaskan market. service at the Hilton Anchorage Hotel. Prudhoe Bay, AK 99734 data for projects in Alaska and world- Contact: Mike Kunkel/Craig Welch, gen- MRO can help solve the time problem wide. Sessions are available for hotel guests on hard to find items. and Anchorage residents. The service is eral managers Phone: (907) 659-2550 Petrotechnical Resources of Alaska available seven days a week on the fifth Toll Free: (866) 659-2550 NEI Fluid Technology (PRA) floor of the hotel. Patricia Main, a certi- Fax: (907) 659-2650 3408 Arctic Blvd. 3601 C St., Ste. 1378 fied massage therapist, owns and oper- Email: [email protected] Anchorage, AK 99503 Anchorage, AK 99503 ates the service. The staff has special- Your source on the Slope for safety sup- Contact: Kathryn Russell, president Contact: Tom Walsh ized training in Swedish, deep tissue, plies, welding supplies, automotive and Phone: (907) 561-4820 Phone: (907) 272-1232 injury treatment and trigger point mas- truck parts, hardware, tools, steel, Fax: (907) 562-2316 Fax: (907) 272-1344 sage. building materials, glass, propane, Email: [email protected] Email: [email protected] hydraulic hoses and fittings, paint and Suppliers of petrochemical refueling Our multidisciplinary staff of qualified ArrowHealth Corp. chemicals. Napa and True Value and testing equipment, meters and and experienced professionals possess a 4050 Lake Otis Pkwy., Ste. 207 Hardware distribution. valve systems for the oil and gas indus- diverse array of technical capabilities to Anchorage, AK 99508 try and portable measurement for provide our clients with a full spectrum Contact: Lea Counts, dir. Substance petroleum, chemicals and bulk liquids. Abuse Testing Div. Unique Machine of geoscience and engineering consult- 5839 Old Seward Hwy We also supply refrigerant recovery and ing services. Phone: (907) 868-8885 recycling equipment. Fax: (907) 868-8882 Anchorage, AK 99518 Contact: Pat Hanley, COO PGS Onshore Email: [email protected] Phone: (907) 563-3012 341 W. Tudor Rd., Ste. 206 Web site: www.arrowhealthcorp.com Fax: (907) 562-1376 Geophysical & Geological Anchorage, AK 99503 ArrowHealth is Alaska’s premier service Email: [email protected] Contact: Larry Watt, Alaska area mgr. provider of occupational health and Services Website: www.uniquemachineinc.com Phone: (907) 569-4049 substance abuse testing. We service the Connections; API 5CT, API 7B, Grant Fax: (907) 569-4047 local community, national contracts, Prideco H-Series, Hydril, Hunting, Atlas ASRC Energy Services – Engineering Email: [email protected] and government agencies alike with Bradford, NS Technology Co, Inc., and Technology Houston Office customized solutions. Vallourec and Vam PTS proprietary con- 3900 C St. 738 Hwy 6 South, Ste 900 nections. Anchorage, AK 99503 Houston, TX 77079 Worksafe Contact: John Lewis, vp operations Contact: Gehrig Schultz 300 W. 36th Ave., Ste. A Phone: (907) 339-6200 Anchorage, AK 99503 U.S. Bearings & Drives Phone: (281) 589-6732 611 E. International Airport Rd. Fax: (907) 339-6212 Fax: (281) 589-6685 Phone: (907) 563-8378 Email: [email protected] Fax: (907) 563-8380 Anchorage, AK 99518 Email: [email protected] Contact: Dena Kelley, operations mgr. Web site: www.asrcenergy.com Geophysical acquisition and processing Web site: www.worksafeinc.com Drilling and completion engineering, Worksafe works to keep your employ- Phone: 563-3000 for the petroleum industry. PGS Fax: 563-1003 well stimulation, facilities engineering, Onshore provides fully rubber tracked ees from getting hurt on the job if they upstream exploration and production are using drugs or alcohol. Worksafe Email: [email protected] Arctic geophysical crews to acquire the Web site: www.bearings.com services, geological and geophysical highest density data with the softest Drug Testing increases productivity, services, automation, electrical and reduces liability with fewer injuries and U.S. Bearings & Drives, formerly BESCO environmental footprint on the North has been providing bearings and drive instrumentation, platform renovation Slope. accidents and provides insurance cost and construction. savings. components to our Alaskan customers since 1952. We offer quality compo- Schlumberger Oilfield Services nents and experienced personnel. ENSR International 2525 Gambell St. 1835 S. Bragaw St., Ste. 490 Anchorage, AK 99503 Helicopter Contract Anchorage, AK 99512 Contact: Daniel Palmer & Charter Services Inspection Services Contact: Chris L. Humphrey, P.E. Phone: (907) 273-1700 Phone: (907) 561-5700 Fax: (907) 561-8317 Engineered Fire & Safety Fax: (907) 273-4555 Email: [email protected] Air Logistics of Alaska 3138 Commercial Dr. Email: [email protected] Web site: www.slb.com 1915 Donald Ave. Anchorage, AK 99501 Serving Alaska since 1977. ENSR is an Schlumberger Oilfield Services provides Fairbanks, AK 99701 Contact: Don Maupin, gen. mgr. Phone: (907) 452-1197 Phone: (907) 274-7973 ext. 123 Fax: (907) 452-4539 Fax: (907) 274-6265 Contact: Dave Scarbrough Email [email protected] Phone: Anchorage: (907) 248-3335 Web site: www.efs-fire.com Email: [email protected] An industry leader in the design, inte- Helicopter contract and charter services. gration and testing of safety solutions for high value risks. UL system certifica- Era Aviation tions and panel fabrication. 6160 Carl Brady Dr. Anchorage, AK 99502 Kakivik Asset Management Contact: John Holland 5401 Fairbanks St., Ste. 3 Phone: (907) 248-4422 Anchorage, AK 99518 Fax: (907) 266-8383 Phone: (907) 770-9400 Helicopter and fixed wing contract and Fax: (907) 770-9450 charter services; scheduled airline serv- Contact: Mark Hylen, president/CEO ice. Email: [email protected] Web site: www.kakivik.com Evergreen Helicopters of Alaska Fairbanks Office 1936 Merrill Field Drive Phone: (907) 451-4898 Anchorage, AK 99501 Fax: (907) 451-4897 Contact: Joy Journeay, marketing mgr. Valdez Office Phone: (907) 257-1519 Phone: (907) 831-1390 Fax: (907) 279-6816 Offering all elements of nondestructive Email: [email protected] testing, inspection services, quality con- Contact: Greg Thies, director of market- trol and asset management. ing Phone: (907) 257-1504 Udelhoven Oilfield System Email: [email protected] Services Nome office: (907) 443-5334 Anchorage office: Airlines office: (907) 257-1500 184 E. 53rd Ave. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B17

Anchorage, AK 99518 Phone: (907) 344-1577 Fax: (907) 522-2541 Nikiski office: P.O. Box 8349 Nikiski, AK 99635 Phone: (907) 776-5185 Fax: (907) 776-8105 Prudhoe office: Pouch 340103 ASRC ENERGY OF COURTESY Prudhoe Bay, AK 99734 Phone: (907) 659-8093 Fax: (907) 659-8489 Serving Alaska for more than 25 years.

Instrumentation Systems

Arctic Controls 1120 E. 5th Ave. Anchorage, AK 99501 Contact: Scott Stewart, president Phone: (907) 277-7555 Fax: (907) 277-9295 Email: [email protected] Website: www.arcticcontrols.com An Alaskan owned and operated com- pany since,1985, Arctic Controls, Inc. has been highly successful as manufacturer representatives for the state of Alaska in the Process Control and Instrumentation field. Selling equipment to the oil and gas markets, mining and water waste- water/municipal markets.

Epoch Well Services 5801 Silverado Way Anchorage, AK 99518 Contact: James R. Carson, AK div. mgr. ASRC Northstar off-shore pipeline operations begin on the floating Beaufort Sea ice, with the pipe being strung out and the welding shacks Phone: (907) 561-2465 put in place by sidebooms. Fax: (907) 561-2474 Email: [email protected] RIGWATCH is a complete digital drilling Lodging Crowley Alaska chemical hauls, scheduled and char- instrumentation system that monitors all 2525 C St., Ste. 303 tered air freighters, domestic and inter- drill floor and mud system parameters. Anchorage, AK 99503 national air forwarding and interna- Hilton Anchorage Hotel Critical data is displayed and archieved Contact: Craig Tornga tional sea forwarding services. 500 West Third Ave. on workstations located at key points on Phone: (907) 278-4978 Anchorage, AK 99501 the rig. Fax: (907) 257-2828 MRO Sales Contact: Karen Boshell Email: [email protected] 5631 Silverado Way, Unit G Quadco Phone: (907) 272-7411 Complete materials supply services to Anchorage, AK 99518 6116 Nielson Way Phone: 1-800-445-8667 remote locations. Marine transport Contact: Don Powell Anchorage, AK 99518 Fax: (907) 265-7042 throughout Alaska. Oil field services Phone: (907) 248-8808 Contact: David Baggett, vp, AK mgr. Web site: www.anchorage.hilton.com including heavy hauling with all-terrain Fax: (907) 248-8878 Phone: (907) 563-8999 At the Hilton, guests discover unexpect- vehicles on North Slope. Email: [email protected] Fax: (907) 563-8985 ed luxury. We are just steps away from Web site: www.mrosalesinc.com Email: [email protected] shopping, day tours, fishing and the Evergreen Helicopters of Alaska Other offices: Other offices: Farmington NM, Denver convention center. The Hilton’s 600 1936 Merrill Field Drive Kenai: Al Hull (907) 335-2782 CO, Casper WY guest rooms and suites, three restau- Anchorage, AK 99501 Prudhoe Bay: Joe Bob Bruster (907) 659- Quadco maintains a fleet of oil field rants, indoor pool, and native art col- Contact: Joy Journeay, marketing mgr. 2868 instrumentation, solids control and lection will make your stay complete. Phone: (907) 257-1519 We provide Professional Procurement other equipment for oilfield and indus- Fax: (907) 279-6816 Service for hard-to-find supplies, parts Millennium Hotel trial needs. We represent Varco Oil Email: [email protected] and equipment. Regardless of your 4800 Spenard Rd. Tools, MD Totco, Texas Oil Tools, SPM, Contact: Greg Thies, director of market- location, you will receive service that is Anchorage, AK 99517 Derrick Equipment and various other ing guaranteed to meet your requirements. Contact: Raegan Kelliher manufacturers. 24 hours on call Phone: (907) 257-1504 From Anchorage to Siberia, from ship- Phone: (907) 243-2300 Email: [email protected] ping to communications, you receive Phone: (800) 544-0553 Laboratory Services Nome office: (907) 443-5334 service from the experts that have Fax: (907) 243-8815 Airlines office: (907) 257-1500 ‘Been There, Done That’ Email: [email protected] Logistics: (907) 243-8677 Kakivik Asset Management Web site: Website: evergreenaviation.com Northern Air Cargo 5401 Fairbanks St., Ste. 3 www.millenniumhotels.com/anchorage Evergreen’s diverse fleet has provided 3900 W. International Airport Rd. Anchorage, AK 99518 The Millennium Alaskan Hotel award-winning safety to Alaskans since Anchorage, AK 99502 Phone: (907) 770-9400 Anchorage is located just one mile from 1960 in petroleum exploration & pro- Contact: Nick Karnos, acct. mgr. Fax: (907) 770-9450 Anchorage International Airport and duction, firefighting, forestry, construc- Anch./Prudhoe Bay Contact: Mark Hylen, president/CEO ten minutes from downtown. The tion, search & rescue, cargo transport, Phone: (907) 249-5161 Email: [email protected] Millennium is surrounded by the splen- and utility transmission. Fax: (907) 249-5194 Web site: www.kakivik.com dor of the great Alaskan outdoors. The Email: [email protected] Fairbanks Office Millennium is ideally situated for busi- The Fairweather Companies Web site: www.nac.aero Phone: (907) 451-4898 ness and leisure travelers alike. 2000 E. 88th Ave. Serving the aviation needs of rural Fax: (907) 451-4897 Anchorage, AK 99507 Alaska for almost 50 years, NAC is the Valdez Office Logistics Contact: Bill Penrose states largest all cargo carrier moving Phone: (907) 831-1390 Phone: (907) 258-3446 nearly 100 million pounds of cargo on Offering all elements of nondestructive Alaska Railroad Corp. Fax: (907) 279-5740 scheduled flights to 17 of Alaska’s testing, inspection services, quality con- P.O. Box 107500 Website: www.fairweather.com busiest airports. NAC’s fleet of DC-6, B- trol and asset management. Anchorage, AK 99510 The Fairweather Companies provide 727, and ATR-42 aircraft are available Contact: Katie Bender, Marketing and project management, engineering, for charters to remote sites and flag Legal Services Logistics Technician drilling, permitting, logistics, and opera- stops to 44 additional communities. Phone: (907) 265-2485 tional services to the exploration and Northern Transportation Perkins Coie Fax: (907) 265-2597 production sectors of the petroleum 310 K St., Ste. 200 1029 W. 3rd Ave., Ste. 300 Email: [email protected] industry. Anchorage, AK 99501 Anchorage, AK 99501 The Alaska Railroad Corporation offers Lynden 42003 McKenzie Hwy. Contact: Eric Fjelstad, attorney real estate, passenger and freight serv- Alaska Marine Lines Hay River, NWT X0E0R9 Email: [email protected] ices – including complete services to Alaska Railbelt Marine Contact: John Marshall Contact: Teresa Berwick, attorney move your freight between Alaska, the Alaska West Express Phone: (867) 874-5167 Email: [email protected] Lower 48 and Canada. Lynden Air Cargo Fax: (867) 874-5179 Phone: (907) 279-8561 Lynden Air Freight Email: [email protected] Fax: (907) 276-3108 Carlile Transportation Systems Lynden International Web site: www.ntcl.com Other Offices: 1800 E. 1st Ave. Lynden Logistics Marine transportation along the Beijing, Bellevue, Boise, Chicago, Denver, Anchorage, AK 99501 Lynden Transport McKenzie River to the Beaufort Sea and Hong Kong, Contact: Linda Leary 6441 S. Airpark Pl. Alaska’s North Slope. Los Angeles, Menlo Park, Olympia, Ph: (907) 267-7797 Anchorage, AK 99502 Portland, San Francisco, Seattle, Fax: (907) 276-6786 Contact: Jeanine St. John Northwestern Arctic Air Washington D.C. Email: [email protected] Phone: (907) 245-1544 6231 S. Airpark Pl. Website: www.perkinscoie.com Other Offices: Fairbanks, Prudhoe Bay, Fax: (907) 245-1744 Anchorage, AK 99502 Perkins Coie law firm handles oil spill Kenai, Seward, Federal Way, WA, Email: [email protected] Contact: Judy McClellan, office mgr. planning, air emissions, NPDES permits, Houston, TX, Edomonton, ALTA The combined scope of the Lynden Phone: (907) 245-4566 hazardous waste, CERCLA, wetlands per- Alaska owned and operated, full serv- companies includes truckload and less- Fax: (907) 245-4567 mits, NEPA, and other environmental ice, multi-modal, transportation and than-truckload highway connections, Email: [email protected] and natural resources issues. logistics company. scheduled barges, intermodal bulk Web site: www.NWArcticAirAK.com On-demand, worldwide, air charter B18 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004 service, Russia Far-East experience, med- ical transports, express package deliv- ery, secure convenient, cost-effective, 24/7. Member Medallion Foundation. Panalpina 4305 W. International Airport Rd. Anchorage, AK 99502 Contact: John Hodel, branch mgr. AEROMED OF COURTESY Phone: (907) 245-8008 Fax: (907) 245-8018 Email: [email protected] Web site: www.panalpina.com Other offices: Houston: (281) 446-0600 Calgary: (403) 291-1137 International and domestic freight for- warding and logistics services. Integrated solutions for supply chain management. Specialists in oil and energy projects. Span-Alaska Consolidators 8130 S. 216th St. Kent, WA 98032 Contact: Tom Landry, executive v. p. Phone: (800) 257-7726 Phone: (907) 349-3606 (Anchorage) Fax: (253) 395-7986 Email: [email protected] Website: www.spanalaska.com Alaskan freight consolidator/forwarder serving all of Alaska with timely and friendly service. Inbound service from the Lower 48 to Alaska. “Promises Made, Promises Delivered.” Umiat Commercial Since its creation Aeromed has expanded into a major operation handling about 550 missions per year in the Yukon Kuskokwim Delta and 2700 S. Cushman St. about 950 missions per year to and from Anchorage. See the company profile on page B2. Fairbanks, AK 99701 Contact: Mike Tolbert Engineered Fire & Safety Palmer, AK 99645 Fairbanks, AK 99712 Phone: (907) 452-6631 3138 Commercial Dr. Contact: Brit Lively, manager Contact: M. Huser, president Fax: (907) 451-8632 Anchorage, AK 99501 Phone: (907) 745-3398 Phone: (907) 455-7712 Email: [email protected] Contact: Don Maupin, gen. mgr. Fax: (907) 745-6733 Fax: (907) 455-7713 UCC provides lodging and fuel sales at Phone: (907) 274-7973 ext. 123 Maps for oil and gas industry and cus- Email: [email protected] Umiat located on the Colville River. We Fax: (907) 274-6265 tom map work Custom fabrication of timber or timber are open 24 hours a day everyday of Email [email protected] with steel combination heavy-duty the year. Web site: www.efs-fire.com equipment or road mats, prefabricated An industry leader in the design, inte- Marine Services retaining walls, containment enclosures gration and testing of safety solutions & Construction or helicopter landing platforms. Machining for high value risks. UL system certifica- Unique Machine tions and panel fabrication. Carolina Mat Co. 5839 Old Seward Hwy American Marine Corp. P.O. Box 339 Anchorage, AK 99518 MRO Sales 6000 A St. Plymouth, NC 27962 Contact: Pat Hanley, COO 5631 Silverado Way, Unit G Anchorage, AK 99518 Contact: Susan Harrison, owner Phone: (907) 563-3012 Anchorage, AK 99518 Contact: Tom Ulrich, reg. mgr. svc. Phone: (252) 793-4045 Fax: (907) 562-1376 Contact: Don Powell group Fax: (252) 793-5187 Email: [email protected] Phone: (907) 248-8808 Phone: (907) 562-5420 Email: [email protected] Web site: www.uniquemachineinc.com Fax: (907) 248-8878 Fax: (907) 562-5426 Website: www.carolinamat.com The design, development, manufacture Email: [email protected] Email: [email protected] Company established in 1985. and distribution of oilfield, construc- Web site: www.mrosalesinc.com Web site: www.amsghq.com Manufacture 3-ply patented, bolted, tion, mining, fishing, and government Other offices: American Marine Corp. provides full portable, reusable, solid oak construc- parts to industry quality standards. Kenai: Al Hull (907) 335-2782 service marine construction and diving tion mats. Guaranteed to hold up to 50 We are a stocking distributor for top- services throughout Alaska and the tons, the mats are interlocking and Maintenance of-the-line waste oil heaters (Reznor), Pacific Basin. non-interlocking, countersunk or non- waste water flocculants (Waterclear), countersunk. environmentally friendly solvents for Offshore Divers Alaska Tent & Tarp your parts washer (PT Technology), cor- 5400 Eielson St. 529 Front St. rosion and erosion repair and mainte- Anchorage, AK 99518 Mechanical & Electrical Fairbanks, AK 99701 nance polymers (Belzona), Vapor phase Contact: Don Ingraham, owner/mgr. Inspection Contact: Jim Haselberger (VpCI™) and Migrating Corrosion Contact: Leif Simcox, owner/oper. mgr. Phone: (907) 456-6328 Inhibitors (MCI) (Cortec) and valve lubri- Phone: (907) 563-9060 Phone: (800) 478-8368 cants and sealants (Chemola). Fax: (907) 563-9061 Udelhoven Oilfield System Fax: (907) 452-5260 Email: [email protected] Services Email: [email protected] Management Consultant Web site: http//www.offshoredivers.com Anchorage office: We are a commercial and industrial fab- Offshore Divers is an Alaska owned div- 184 E. 53rd Ave. ric business. We make covers. ing contractor specializing in sub-sea Anchorage, AK 99518 Hawk Consultants oilfield work on mooring systems, Phone: (907) 344-1577 Arctic Controls 200 W. 34th Ave., Ste. 809 pipelines, platforms and docks in Cook Fax: (907) 522-2541 1120 E. 5th Ave. Anchorage, AK 99503 Inlet, on the North Slope and in Valdez. Nikiski office: Anchorage, AK 99501 Contact: Maynard Tapp, president P.O. Box 8349 Contact: Scott Stewart, president Phone: (907) 278-1877 Peak Oilfield Service Nikiski, AK 99635 Phone: (907) 277-7555 Fax: (907) 278-1889 2525 C St., Ste. 201 Phone: (907) 776-5185 Fax: (907) 277-9295 Email: [email protected] Anchorage, AK 99503 Fax: (907) 776-8105 Email: [email protected] Providing people and resources to the Contact: Bill Stamps, business develop- Prudhoe office: Website: www.arcticcontrols.com oil, gas, power, telecommunication and ment/ex. affairs Pouch 340103 An Alaskan owned and operated com- public works industries. Services include Phone: (907) 263-7000 Prudhoe Bay, AK 99734 pany since,1985, Arctic Controls, Inc. has strategic planning, full service project Fax: (907) 263-7070 Phone: (907) 659-8093 been highly successful as manufacturer management team consulting/outsourc- Email: [email protected] Fax: (907) 659-8489 representatives for the state of Alaska ing, supplemental professionals, profes- Web site: www.peakalaska.com Serving Alaska for more than 25 years. in the Process Control and sionals, management consulting servic- Alaska based general contractors. Instrumentation field. Selling equip- es. ment to the oil and gas markets, min- Storm Chasers Marine Services Meetings & Conventions ing and water wastewater/municipal Maps P.O. Box 757 markets. Seward, AK 99664 Hilton Anchorage Hotel 500 West Third Ave. AeroMap U.S. Contact: Mica Van Buskirk ASRC Energy Services – Operations Anchorage, AK 99501 2014 Merrill Field Dr. Phone: (907) 224-3536 and Maintenance Contact: Karen Boshell Anchorage, AK 99501 Fax: (907) 224-6080 3900 C St. Phone: (907) 272-7411 Contact: Holly Holmes, Marketing Email: [email protected] Anchorage, AK 99503 Phone: 1-800-445-8667 Phone: (907) 272-4495 Providing quality marine services in Contact: Mark Nelson, exec. vp Fax: (907) 265-7042 Fax: (907) 274-3265 Alaska for over 15 years. Commercial Phone: (907) 339-6200 Web site: www.anchorage.hilton.com Email: [email protected] diving, underwater welding, underwa- Fax: (907) 339-6212 At the Hilton, guests discover unexpect- Web site: www.aeromap.com ter inspection with video, vessel repair, Email: [email protected] ed luxury. We are just steps away from AeroMap provides geospatial informa- marine construction and marine salvage Web site: www.asrcenergy.com shopping, day tours, fishing and the tion about the earth utilizing land, air- services. Oil and gas services, industrial construc- convention center. The Hilton’s 600 borne and satellite sensors. We define tion, operations and maintenance, guest rooms and suites, three restau- its topography, measure its features, Mat Systems module fabrication and assembly, proj- rants, indoor pool, and native art col- and chronicle its condition. ect management and non-destructive lection will make your stay complete. testing. Alaska Dreams Mapmakers Alaska 522 Goldstreak Rd. 259 S. Alaska St. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B19

Millennium Hotel With over 250 wells logged since 1989, P.E.S.I. provides both conventional and Hanover Canada is the leading provider 4800 Spenard Rd. Epoch is the leading provider of specialty products and services for the of natural gas compression services and Anchorage, AK 99517 advanced mudlogging services in Alaska oil industry. Regardless of your equipment in Canada. We maintain an Contact: Raegan Kelliher Alaska. Our DML 2000 software assimi- location, you will receive products and 85,000 horsepower rental compression Phone: (907) 243-2300 lates a comprehensive database of geo- service that is guaranteed to meet your fleet in Canada and over 3.6 million Phone: (800) 544-0553 logical and drilling information with requirements. horsepower rental fleet worldwide. Fax: (907) 243-8815 presentations available in a variety of Hanover custom designs production Email: [email protected] hardcopy and digital formats. Pipeline Maintenance equipment in accordance with cus- Web site: tomer’s specifications using strict inter- www.millenniumhotels.com/anchorage Office Furniture American Marine Corp. nal engineering standards. We have the The Millennium Alaskan Hotel 6000 A St. capability to provide process, mechani- Anchorage is located just one mile from cal and instrument design engineering Capital Office Systems Anchorage, AK 99518 Anchorage International Airport and for any production equipment project 1120 E, 35th Ave. Contact: Tom Ulrich, reg. mgr. svc. ten minutes from downtown. The worldwide. Anchorage, AK 99508 group Millennium is surrounded by the splen- Contact: Leslye Langla, managing Phone: (907) 562-5420 dor of the great Alaskan outdoors. The Natco Group direct. Fax: (907) 562-5426 Millennium is ideally situated for busi- P.O. Box 850, Stn. T Phone: (907) 777-1501 Email: [email protected] ness and leisure travelers alike. Calgary, Alberta T2H2H3 Fax: (907) 777-1515 Web site: www.amsghq.com Contact: Kevin Baird, bus. dev. mgr. Email: [email protected] American Marine Corp. provides full Phone: (403) 203-2103 Metal Distributors Asset management, systems furniture, service marine construction and diving Fax: (403) 236-0488 project coordination, space planning, services throughout Alaska and the Email: [email protected] Alaska Steel Co. systems delivery/installation, furniture Pacific Basin. Web site: www.natco-ca.com 1200 W. Dowling refurbishing, and relocation/remodel Natco Group engineers, designs and Anchorage, AK 99518 services. Authorized Steelcase dealer for ASRC Energy Services – Pipeline, Power & Communications manufactures process, wellhead and Contact: Joe Lombardo, vice president Alaska. water treatment equipment and sys- Phone: (907) 561-1188 3900 C St., Anchorage, AK 99503 tems used in the production of oil and Toll free: (800) 770-0969 (AK only) Oilfield Service & Rig Up gas worldwide. Fax: (907) 561-2935 Contact: Wade Blasingame Email: [email protected] Phone: (907) 339-6400 Weaver Brothers Fairbanks office: Fax: (907) 339-6444 Procurement Services 14223 Kenai Spur Hwy. 2800 S. Cushman Email: Kenai, AK 99611 Contact: Dan Socha, branch mgr. [email protected] Alaska Anvil Contact: Glen Dye, terminal mgr. Phone: (907) 456-2719 Web site: www.asrcenergy.com 509 W. 3rd Ave. Phone: (907) 283-7975 Fax: (907) 451-0449 Pipeline construction and maintenance, Anchorage, AK 99501–2237 Fax: (907) 283-3677 Kenai office: fiber optic cable installation. Contact: Frank Weiss Email: [email protected] 205 Trading Bay Rd. Phone: (907) 276-2747 Other Offices: Offshore Divers Contact: Will Bolz, branch mgr. Fax: (907) 279-4088 Anchorage, Alaska 5400 Eielson St. Phone: (907) 283-3880 Web site: anvilcorp.com Fairbanks, Alaska Anchorage, AK 99518 Fax: (907) 283-3759 Other office: Kenai Trucking company specializing in oil Contact: Don Ingraham, owner/mgr. Full-line steel and aluminum distributor. 50720 Kenai Spur Hwy, Mile 24.5 field winch truck services. Bed tandems Contact: Leif Simcox, owner/oper. mgr. Complete processing capabilities, Kenai, AK 99611 & loaders plus rig moving capabilities. Phone: (907) 563-9060 statewide service. Specializing in low Phone: (907) 776-5870 Petroleum and chemical trailers, low- Fax: (907) 563-9061 temperature steel. Fax: (907) 770-5871 boys, bulk trailers, vans and flats. Email: [email protected] Multi-discipline engineering and design Web site: http//www.offshoredivers.com services including construction manage- Mining On-site Medical Services Offshore Divers is an Alaska owned div- ment for petro-chemical and heavy ing contractor specializing in sub-sea industrial client projects. Usibelli Coal Mine Kuukpik Arctic Catering oilfield work on mooring systems, 100 Cushman St., Ste. 210 5761 Silverado Way, Ste P pipelines, platforms and docks in Cook MRO Sales Fairbanks, AK 99701 Anchorage, AK 99518 Inlet, on the North Slope and in Valdez. 5631 Silverado Way, Unit G Contact: Bill Brophy, vp cust. relations Anchorage, AK 99518 Contact: Rick MacMillan Peak Oilfield Service Phone: (907) 452-2625 Phone: (907) 562-5588 Contact: Don Powell Fax: (907) 451-6543 2525 C St., Ste. 201 Phone: (907) 248-8808 Fax: (907) 562-5898 Anchorage, AK 99503 Email: [email protected] Email: [email protected] Fax: (907) 248-8878 Web site: www.usibelli.com Contact: Bill Stamps, business develop- Email: [email protected] Other Office ment/ex. affairs Web site: www.mrosalesinc.com P. O. Box 1000 Well Safe Inc. Phone: (907) 263-7000 Other offices: Healy, AK 99743 209 E. 51st Ave. Fax: (907) 263-7070 Kenai: Al Hull (907) 335-2782 Phone: (907) 683-2226 Anchorage, AK 99503 Email: [email protected] We provide Professional Procurement Usibelli Coal Mine is headquartered in Contact: Ken Carroll, district mgr. Web site: www.peakalaska.com Service for hard-to-find supplies, parts Healy, Alaska and has 200 million tons Phone: (907) 743-9871 Alaska based general contractors. and equipment. Regardless of your of proven coal reserves. Usibelli pro- Fax: (907) 743-9872 location, you will receive service that is duced one million tons of sub-bitumi- VECO guaranteed to meet your requirements. Email: [email protected] 949 E. 36th Ave., Ste. 500 nous coal this year. Web site: www.wellsafe.com From Anchorage to Siberia, from ship- Anchorage, AK 99508 ping to communications, you receive A full service safety company specializ- Contact: Emily Cross Movers/Relocation ing in remote medical support, expedi- service from the experts that have Phone: (907) 762-1510 ‘Been There, Done That’ tors, confined space rescue teams, H2S Fax: (907) 762-1001 and safety consultants, OSHA training Alaska Terminals Email: [email protected] NANA/Colt Engineering 400 W 70th Ave., Ste.3 and rental/sales of gas detection and Web site: www.VECO.com breathing air systems. 700 G Street, 5th floor Anchorage, AK 99518 VECO is a multi-national corporation Anchorage, AK 99501 Contact: Calista Wood that provides services, project manage- Phone: (907) 273-3900 Phone: (907) 349-6657 Photography ment, engineering, procurement, con- Fax: (907) 273-3990 Fax: (907) 349-2045 struction, operations and maintenance Contact: John Minier Email: [email protected] AeroMap U.S. – to the energy, resource and process NANA/Colt offers project management, Web site: www.akterminals.com 2014 Merrill Field Dr. industries and the public sector. engineering, design, construction man- Other Offices: Anchorage, AK 99501 agement, and procurement services to Mitchell Moving & Storage, Seattle Contact: Holly Holmes, Marketing Plumbing the oil industry. Glacier State Moving & Storage, Phone: (907) 272-4495 Fairbanks Fax: (907) 274-3265 Udelhoven Oilfield System Alaska Terminals provides full service Email: [email protected] Production Equipment household goods relocation services to, Services Web site: www.aeromap.com Anchorage office: from, and within Alaska. International, AeroMap provides geospatial informa- Oilfield Improvements and local residential and office moves; 184 E. 53rd Ave. 1902 North Yellowood Ave. tion about the earth utilizing land, air- Anchorage, AK 99518 heated, and secured storage. borne and satellite sensors. We define Broken Arrow, OK 74145 Phone: (907) 344-1577 Contact: Hughes Coston SR its topography, measure its features, Fax: (907) 522-2541 Capital Office Systems and chronicle its condition. Phone: (918) 250-5584 1120 E, 35th Ave. Nikiski office: Phone: (800) 537-9327 Anchorage, AK 99508 Judy Patrick Photography P.O. Box 8349 Fax: (918) 250-4666 Contact: Leslye Langla, managing 430 W. 7th Ave., Ste. 220 Nikiski, AK 99635 Email: [email protected] direct. Anchorage, AK 99501 Phone: (907) 776-5185 Website: www.rodguides.com Phone: (907) 777-1501 Contact: Judy Patrick Fax: (907) 776-8105 Sucker rod guides – The Ultra Flow field Fax: (907) 777-1515 Phone: (907) 258-4704 Prudhoe office: installed guide, The Wheeled Rod Email: [email protected] Fax: (907) 258-4706 Pouch 340103 Guide Asset management, systems furniture, Email: [email protected] Prudhoe Bay, AK 99734 Phone: (907) 659-8093 project coordination, space planning, Web site: JudyPatrickPhotography.com Real Estate systems delivery/installation, furniture Creative images for the resource devel- Fax: (907) 659-8489 refurbishing, and relocation/remodel opment industry. Serving Alaska for more than 25 years. services. Authorized Steelcase dealer for Alaska Railroad Corp. Alaska. Process Equipment P.O. Box 107500 Pipe & Fittings Anchorage, AK 99510 Contact: Katie Bender, Marketing and Mud & Mudlogging Petroleum Equipment & Services Hanover Canada Logistics Technician 5631 Silverado Way, Ste G 500, 101-6 Ave. SW Phone: (907) 265-2485 Epoch Well Services Anchorage, AK 99518 Calgary, AB, T2P 3P4 Canada Fax: (907) 265-2597 5801 Silverado Way Contact: Kevin Durling/Donald Parker Contact: Rod Saville, Country Mgr. Email: [email protected] Anchorage, AK 99518 Phone: (907) 248-0066 Canada The Alaska Railroad Corporation offers Contact: James R. Carson, AK div. mgr. Fax: (907) 248-4429 Phone: (403) 261-6801 real estate, passenger and freight serv- Phone: (907) 561-2465 Email: [email protected] Fax: (403) 266-1066 ices – including complete services to Fax: (907) 561-2474 Web site: www.pesiak.com Email: [email protected] move your freight between Alaska, the Email: [email protected] Web site: www.hanover-canada.com B20 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Lower 48 and Canada. Contact: Kathryn Russell, president Email: [email protected] Fax: (907) 243-8815 Phone: (907) 561-4820 Other offices: Farmington NM, Denver Email: [email protected] Prudhoe Bay Shop & Storage Fax: (907) 562-2316 CO, Casper WY Web site: Deadhorse Airport Email: [email protected] Quadco has supplied services to the www.millenniumhotels.com/anchorage Deadhorse, AK 99734 Suppliers of petrochemical refueling Alaska oilfield since 1976. We have The Millennium Alaskan Hotel Contact: J. Harper Gaston, president and testing equipment, meters and trained personnel to help with instru- Anchorage is located just one mile from P.O. Box 670 valve systems for the oil and gas indus- mentation, solids control, pipe handling Anchorage International Airport and Greenville, GA 30222 try and portable measurement for and Top Drive drilling equipment. 24 ten minutes from downtown. The Phone: (706) 672-0999 petroleum, chemicals and bulk liquids. hour on call Millennium is surrounded by the splen- Fax: (706) 672-1188 We also supply refrigerant recovery and dor of the great Alaskan outdoors. The Email: [email protected] recycling equipment. Millennium is ideally situated for busi- Space designed for oilfield services. Reporting Software ness and leisure travelers alike. Located one-half mile north of Pacific Environmental (PENCO) Deadhorse airport. 800 sf.–1,200 sf. 6000 A St. Right of Way Maintenance individual or combined units. Rent Anchorage, AK 99518 Epoch Well Services includes heat, snow removal, mainte- Contact: Tom Ulrich, reg. mgr. American 5801 Silverado Way nance and repairs. Maine svc. group Anchorage, AK 99518 Carolina Mat Co. Phone: (907) 562-5420 Contact: James R. Carson, AK div. mgr. P.O. Box 339 Phone: (907) 561-2465 Plymouth, NC 27962 Recycling Waste Management Fax: (907) 562-5426 Email: [email protected] Fax: (907) 561-2474 Contact: Susan Harrison, owner Web site: www.amsghq.com Email: [email protected] Phone: (252) 793-4045 Colville PERC is a Windows based relational Fax: (252) 793-5187 Pouch 340012 PENCO provides environmental response, containment and clean up. database program for morning reports, Email: [email protected] Prudhoe Bay, AK 99734 well planning, drilling, completion and Website: www.carolinamat.com Contact: John Daly, Kevin Cilk Hazardous wastes and contaminated site clean up and remediation. Asbestos workover reports. RIGREPORT provides Company established in 1985. Phone: (907) 659-3197 contractors with an electronic tour Manufacture 3-ply patented, bolted, Fax: (907) 659-3190 and lead abatement. Petroleum vessel services and bulk fuel oil facility and sheet for morning reports and payroll portable, reusable, solid oak construc- Email: [email protected] reporting. tion mats. Guaranteed to hold up to 50 Diesel, gasoline, jet fuel, aviation gaso- storage tank maintenance, manage- ment and operations. tons, the mats are interlocking and line in bulk and small quantity deliver- Restaurants non-interlocking, countersunk or non- ies, electronic card-lock fleet manage- Quadco countersunk. ment, solid waste and recycling, indus- 6116 Nielson Way Millennium Hotel trial gases and solid waste. Tesoro fuel Anchorage, AK 99518 Cruz Construction station. 4800 Spenard Rd. HC04 Box 9323 Contact: David Baggett, VP, Alaska Anchorage, AK 99517 manager Palmer, AK 99645 NEI Fluid Technology Contact: Raegan Kelliher Contact: Dave or Dana Cruz 3408 Arctic Blvd. Phone: (907) 563-8999 Phone: (907) 243-2300 Fax: (907) 563-8985 Phone: (907) 746-3144 Anchorage, AK 99503 Phone: (800) 544-0553 Fax: (907) 746-5557 Email: [email protected] General contractor specializing in heavy civil construction, horizontal direction drilling for utilities. Ice road and ice bridge construction throughout Alaska in support of resource development.

Safety Equipment & Supplies

Arctic Fire & Safety 702 30th Ave. Fairbanks, AK 99701 Contact: Bobby, Shane, Gigi Phone: (907) 378-2116 Fax: (907) 452-7876 Email: [email protected] Your Alaskan owned safety specialist since 1975. Barricades, barrels, all PPE, gas detection marine and FAA related, extinguisher services, fit testing, signs, we stock heavy. Brooks Range Supply Pouch 340008 1 Old Spine Road Prudhoe Bay, AK 99734 Contact: Mike Kunkel/Craig Welch, gen- eral managers Phone: (907) 659-2550 Toll Free: (866) 659-2550 Fax: (907) 659-2650 Email: [email protected] Your source on the Slope for safety sup- plies, welding supplies, automotive and truck parts, hardware, tools, steel, building materials, glass, propane, hydraulic hoses and fittings, paint and chemicals. Napa and True Value Hardware distribution. Jackovich Industrial & Construction Supply Fairbanks: 1600 Wells St. Attn: Buz Jackovich Phone: (907) 456-4414 Fax: (907) 452-4846 Anchorage: 1716 Post Road Attn: Steve Slone Phone: (907) 277-1406 Fax: (907) 258-1700 24 hour emergency service. With 30 years of experience, we're experts on Arctic conditions and extreme weather. MEDC International 5829 West Sam Houston Pkwy, North, Ste.1005 Houston, TX 77041 Contact: Phil Hausman, U.S. sales mgr. Phone: (713) 937-9772 Fax: (713) 937-9773 Email: [email protected] Other Office: MEDC Ltd. – UK Website: www.medc.com MEDC design, manufacture and sell a range of UL/CENELEC approved field devices for fire & gas and communica- tions systems for use in potentially explosive atmospheres. Unitech of Alaska 2130 E. Dimond Blvd. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B21

Anchorage, AK 99507 Phone: (907) 562-2741 Anchorage, AK 99518 ment and transportation systems, con- Contact: Debbie Hawley Fax: (907) 562-0153 Contact: Joe Lombardo, vice president ventional and GPS surveying, and map- Phone: (907) 349-5142 Email: [email protected] Phone: (907) 561-1188 ping. Phone: (800) 649-5859 Web site: www.arcticfoundations.com Toll free: (800) 770-0969 (AK only) Fax: (907) 349-2733 Soil stabilization – frozen barrier and Fax: (907) 561-2935 Tank Fabrication Email: [email protected] frozen core dams to control hazardous Email: [email protected] Email: [email protected] waste and water movement. Fairbanks office: Northern Transportation UOA is Alaska’s only 24-hour oil spill Foundations – maintain permafrost for 2800 S. Cushman 310 K St., Ste. 200 remediation, environmental and indus- durable high capacity foundations. Contact: Dan Socha, branch mgr. Anchorage, AK 99501 trial supply company. Specialty areas Phone: (907) 456-2719 42003 McKenzie Hwy. include sorbents, geotextile, contain- Space Design/Planning Fax: (907) 451-0449 Hay River, NWT X0E0R9 ment berms, drums and ice melt. Kenai office: Contact: John Marshall 205 Trading Bay Rd. Capital Office Systems Phone: (867) 874-5167 Well Safe Inc. Contact: Will Bolz, branch mgr. 1120 E, 35th Ave. Fax: (867) 874-5179 209 E. 51st Ave. Phone: (907) 283-3880 Anchorage, AK 99508 Email: [email protected] Anchorage, AK 99503 Fax: (907) 283-3759 Contact: Leslye Langla, managing Web site: www.ntcl.com Contact: Ken Carroll, district mgr. Full-line steel and aluminum distributor. direct. Marine transportation along the Phone: (907) 743-9871 Complete processing capabilities, Phone: (907) 777-1501 McKenzie River to the Beaufort Sea and Fax: (907) 743-9872 statewide service. Specializing in low Fax: (907) 777-1515 Alaska’s North Slope. Email: [email protected] temperature steel. Web site: www.wellsafe.com Email: [email protected] A full service safety company specializ- Asset management, systems furniture, Telephone Equipment & Sales ing in remote medical support, expedi- project coordination, space planning, Colville tors, confined space rescue teams, H2S systems delivery/installation, furniture Pouch 340012 ASTAC and safety consultants, OSHA training refurbishing, and relocation/remodel Prudhoe Bay, AK 99734 4300 B St., Ste. 501 and rental/sales of gas detection and services. Authorized Steelcase dealer for Contact: John Daly Anchorage, AK 99503 breathing air systems. Alaska. Phone: (907) 659-3197 Contact: Erin Ealum Fax: (907) 659-3190 Phone: (907) 563-3989 Security Steel Fabrication Diesel, gasoline, jet fuel, aviation gaso- Phone: 1-800-478-6409 line in bulk and small quantity deliver- Fax: (907) 563-1932 Kuukpik Arctic Catering Alaska Steel Co. ies, electronic card-lock fleet manage- Email: [email protected] 5761 Silverado Way, Ste P 1200 W. Dowling ment, solid waste and recycling, steel, Providing local and long distance serv- Anchorage, AK 99518 Anchorage, AK 99518 industrial gases and solid waste. ice, Internet, maintenance and training, Contact: Joe Lombardo, vice president consultation, installation, engineering, Contact: Rick MacMillan STEELFAB Phone: (907) 562-5588 Phone: (907) 561-1188 Centrex, custom calling features, digital Toll free: (800) 770-0969 (AK only) 2132 Railroad Ave. cross connect service, and digital data Fax: (907) 562-5898 Anchorage, AK 99501 Email: [email protected] Fax: (907) 561-2935 service to the North Slope region of Email: [email protected] Contact: Janet Faulkner, vice president Alaska. Phone: (907) 264-2819 Seismic & Geophysical Fairbanks office: 2800 S. Cushman Fax: (907) 276-3448 Temporary Placement Services Contact: Dan Socha, branch mgr. Email: [email protected] Hunter 3-D Phone: (907) 456-2719 STEELFAB is the largest Alaskan-owned 9898 Bissonnet St., Ste. 362 steel service center in the state. It pro- Alaska’s People Fax: (907) 451-0449 2600 Cordova St., Ste.211 Houston, TX 77036 Kenai office: vides pressure vessels, modules, special Contact: Dan Huston, vice president design items and raw steel products. Anchorage, AK 99503 205 Trading Bay Rd. Contact: Teresa Nelson, director Phone: (713) 981-4650 Contact: Will Bolz, branch mgr. Fax: (713) 981-4650 Phone: (907) 263-7013 Phone: (907) 283-3880 Surveying & Mapping Fax: (907) 263-7083 Email: [email protected] Fax: (907) 283-3759 Web site: www.hunter3dinc.com Email: [email protected] Rebar fabrication full service with in AeroMap U.S. Web site: www.alaskapeople.com Hunter 3-D is a geophysical consulting house estimating and detailing. 2014 Merrill Field Dr. company based in Houston, Texas. We Employment reference services with an Anchorage, AK 99501 emphasis on qualified Alaska Natives interpret seismic, gravity and magnetic Peak Oilfield Service Contact: Holly Holmes, Marketing and American Indians. data for projects in Alaska and world- 2525 C St., Ste. 201 Phone: (907) 272-4495 wide. Anchorage, AK 99503 Fax: (907) 274-3265 Chiulista Camp Services/Mayflower Contact: Bill Stamps, business develop- Kuukpik/Veritas Email: [email protected] Catering ment/ex. affairs Web site: www.aeromap.com 6613 Brayton Dr., Ste. C 2000 E. 88th Ave. Phone: (907) 263-7000 Anchorage, AK 99507 AeroMap provides geospatial informa- Anchorage, AK 99507 Fax: (907) 263-7070 tion about the earth utilizing land, air- Contact: George B. Gardner, pres/gm Contact: Jeff Hastings Email: [email protected] Phone: (907) 276-6037 borne and satellite sensors. We define Phone: (907) 278-2208 Web site: www.peakalaska.com its topography, measure its features, Fax: (907) 677-7261 Fax: (907) 279-5740 Alaska based general contractors. Email: [email protected] and chronicle its condition. Email: [email protected] The 100 percent Alaska Native owned STEELFAB ASTAC/fm, a division of ASTAC and operated catering company on the PGS Onshore 2132 Railroad Ave. 4300 B St., Ste. 501 North Slope, catering and housekeep- 341 W. Tudor Rd., Ste. 206 Anchorage, AK 99501 Anchorage, AK 99503 ing to your tastes, not ours. Anchorage, AK 99503 Contact: Janet Faulkner, vice president Contact: Larry Watt, Alaska area mgr. Contact: Don Nelson Phone: (907) 264-2819 Phone: (907) 563-3989 Phone: (907) 569-4049 Fax: (907) 276-3448 Training Fax: (907) 569-4047 Phone: 1-800-478-6409 Email: [email protected] Fax: (907) 563-1932 Email: [email protected] STEELFAB is the largest Alaskan-owned Pacific Rim Institute of Safety & Houston Office Email: [email protected] steel service center in the state. It pro- Provides expertise in implementing GIS Management (PRISM) 738 Hwy 6 South, Ste 900 vides pressure vessels, modules, special P.O. Box 3670 Houston, TX 77079 technology whether it be data conver- design items and raw steel products. sions or a complete turnkey solution. Kenai, AK 99611 Contact: Gehrig Schultz Contact: David C. Burnett, program Phone: (281) 589-6732 Totem Equipment & Supply Kuukpik-LCMF mgr. Fax: (281) 589-6685 2536 Commercial Dr. 139 E. 51st Ave. Phone: (907) 283-3054 Email: [email protected] Anchorage, AK 99501 Anchorage, AK 99503 Fax: (907) 283-1853 Geophysical acquisition and processing Contact: Mike Huston, vp Contact: Richard Rearick, architectural Email: [email protected] for the petroleum industry. PGS Phone: (907) 276-2858 mgr. Web site: www.AAICorp.com Onshore provides fully rubber tracked Fax: (907) 258-4623 Contact: Willey Wilhelm, engineering Providing a full spectrum of compliance Arctic geophysical crews to acquire the Email: [email protected] mgr. based training for workers in the field highest density data with the softest Web site: www.toteminc.com Contact: Tony Hoffman, survey mgr. of health, safety and emergency environmental footprint on the North Totem Equipment & Supply Inc. locally Phone: (907) 273-1830 response, all in one location. Basic rig- Slope. owned and operated since 1961. Phone: (800) 955-1830 ging, forklift and manlift operations, Supplies light, medium and heavy Fax: (907) 273-1831 confined space rescue, hazardous mate- Shops/Storage Space equipment. Specializing in temporary Email: [email protected] rials, maritime (BST, STCW certified), and permanent heating solutions. Other Offices: industrial fire fighting (NFPA 600). Prudhoe Bay Shop & Storage Barrow: (800) 478-8213 Udelhoven Oilfield System Services Well Safe Inc. Deadhorse Airport Email: [email protected] Anchorage office: 209 E. 51st Ave. Deadhorse, AK 99734 Alpine: (907) 670-4739 184 E. 53rd Ave. Anchorage, AK 99503 Contact: J. Harper Gaston, president Email: [email protected] Anchorage, AK 99518 Contact: Ken Carroll, district mgr. P.O. Box 670 Statewide contractor project support Phone: (907) 344-1577 Phone: (907) 743-9871 Greenville, GA 30222 surveyors; remote site land and hydro- Fax: (907) 522-2541 Fax: (907) 743-9872 Phone: (706) 672-0999 graphic surveys for government and pri- Nikiski office: Email: [email protected] Fax: (706) 672-1188 vate; oil and gas development survey- P.O. Box 8349 Web site: www.wellsafe.com Email: [email protected] ing, mapping, and permitting. Nikiski, AK 99635 A full service safety company specializ- Space designed for oilfield services. Phone: (907) 776-5185 ing in remote medical support, expedi- Located one-half mile north of Lounsbury and Associates Fax: (907) 776-8105 tors, confined space rescue teams, H2S Deadhorse airport. 800 sf.–1,200 sf. 723 W. 6th Ave. Prudhoe office: and safety consultants, OSHA training individual or combined units. Rent Anchorage, AK 99501 Pouch 340103 and rental/sales of gas detection and includes heat, snow removal, mainte- Contact: Craig L. Savage, president Prudhoe Bay, AK 99734 breathing air systems. nance and repairs. E-mail: [email protected] Phone: (907) 659-8093 Contact: Jim Sawhill, vp Fax: (907) 659-8489 Email: [email protected] Underwater NDT & Photography Soil Stabilization Serving Alaska for more than 25 years. Phone: (907) 272-5451 Fax: (907) 272-9065 American Marine Corp. Arctic Foundations Steel Sales Toll Free: (800) 478-5451 6000 A St. 5621 Arctic Blvd. Website: www.lounsburyinc.com Anchorage, AK 99518 Anchorage, AK 99518-1667 Alaska Steel Co. Specializing in surveying for Alaska oil Contact: Tom Ulrich, reg. mgr. svc. Contact: Ed Yarmak 1200 W. Dowling and gas exploration, oilfield develop- group B22 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Phone: (907) 562-5420 85,000 horsepower rental compression Fax: (907) 562-5426 fleet in Canada and over 3.6 million Email: [email protected] horsepower rental fleet worldwide. Web site: www.amsghq.com Hanover custom designs production American Marine Corp. provides full equipment in accordance with cus- service marine construction and diving tomer’s specifications using strict inter- services throughout Alaska and the nal engineering standards. We have the Pacific Basin. capability to provide process, mechani- cal and instrument design engineering Offshore Divers for any production equipment project 5400 Eielson St. worldwide. Anchorage, AK 99518 Contact: Don Ingraham, owner/mgr. HUGHES INTEQ OF BAKER COURTESY Natco Canada Contact: Leif Simcox, owner/oper. mgr. P.O. Box 850, Stn. T Phone: (907) 563-9060 Calgary, Alberta T2H2H3 Fax: (907) 563-9061 Contact: Kevin Baird, bus. dev. mgr. Email: [email protected] Phone: (403) 203-2103 Web site: http//www.offshoredivers.com Fax: (403) 236-0488 Offshore Divers is an Alaska owned div- Email: [email protected] ing contractor specializing in sub-sea Web site: www.natco-ca.com oilfield work on mooring systems, Natco Group engineers, designs and pipelines, platforms and docks in Cook manufactures process, wellhead and Inlet, on the North Slope and in Valdez. water treatment equipment and sys- tems used in the production of oil and Storm Chasers Marine Services gas worldwide. P.O. Box 757 Seward, AK 99664 Peak Oilfield Service Contact: Mica Van Buskirk 2525 C St., Ste. 201 Phone: (907) 224-3536 Anchorage, AK 99503 Fax: (907) 224-6080 Contact: Bill Stamps, business develop- Email: [email protected] ment/ex. affairs Providing quality marine services in Phone: (907) 263-7000 Alaska for over 15 years. Commercial Fax: (907) 263-7070 diving, underwater welding, underwa- Email: [email protected] ter inspection with video, vessel repair, Web site: www.peakalaska.com marine construction and marine salvage Alaska based general contractors. services. STEELFAB Underwater Welding 2132 Railroad Ave. Anchorage, AK 99501 American Marine Corp. Contact: Janet Faulkner, vice president 6000 A St. Phone: (907) 264-2819 Anchorage, AK 99518 Fax: (907) 276-3448 Contact: Tom Ulrich, reg. mgr. svc. Email: [email protected] group STEELFAB is the largest Alaskan-owned Phone: (907) 562-5420 Hughes Christensen’s high performance roller cone or fixed cutter bits increase penetration steel service center in the state. It pro- Fax: (907) 562-5426 rates, extend time on bottom and improve drilling efficiency. Hughes Christensen is an inte- vides pressure vessels, modules, special Email: [email protected] gral part of the Baker Hughes family of companies. See the company profile on page B11. design items and raw steel products. Web site: www.amsghq.com American Marine Corp. provides full Unique Machine service marine construction and diving services. Email: [email protected] 5839 Old Seward Hwy services throughout Alaska and the Web site: www.seekins.com Anchorage, AK 99518 Pacific Basin. Vehicle Repair Ford Lincoln Mercury dealer located in Contact: Pat Hanley, COO Fairbanks Alaska providing solutions to Phone: (907) 563-3012 Offshore Divers Kenworth Alaska your transportation needs. Parts and Fax: (907) 562-1376 5400 Eielson St. 2838 Porcupine Dr. service support in Fairbanks and Email: [email protected] Anchorage, AK 99518 Anchorage, AK 99501 Prudhoe Bay. Web site: www.uniquemachineinc.com Contact: Don Ingraham, owner/mgr. Contact: Jim Scherieble, branch mgr. The design, development, manufacture Contact: Leif Simcox, owner/oper. mgr. Phone: (907) 279-0602 Vehicle Sales/Rental and distribution of oilfield construction, Phone: (907) 563-9060 Phone: (800) 478-0602 mining, fishing and government parts Fax: (907) 563-9061 Fax: (907) 258-6639 Seekins Ford Lincoln Mercury to industry quality standards. Email: [email protected] Email: [email protected] 1625 Old Steese Hwy. Web site: http//www.offshoredivers.com Email: [email protected] Fairbanks, AK 99701 Offshore Divers is an Alaska owned div- Website: www.kenworthalaska.com Contact: Steven Angel, fleet sales mgr. ing contractor specializing in sub-sea Fairbanks office: Phone: (907) 459-4044 oilfield work on mooring systems, 3730 Braddock St. Fax: (907) 450-4007 OIL pipelines, platforms and docks in Cook Fairbanks, AK 99701 Email: [email protected] Inlet, on the North Slope and in Valdez. Contact: Ed Lewis, branch mgr. Web site: www.seekins.com Phone: (907) 455-9900 Ford Lincoln Mercury dealer located in Storm Chasers Marine Services COMPANIES Fax: (907) 479-8295 Fairbanks Alaska providing solutions to P.O. Box 757 Kenworth Alaska is a full service truck your transportation needs. Parts and Seward, AK 99664 dealership in two locations – Anchorage service support in Fairbanks and Operators Contact: Mica Van Buskirk and Fairbanks. New and used truck Prudhoe Bay. Phone: (907) 224-3536 sales, parts and service. Fax: (907) 224-6080 ConocoPhillips Alaska Welding Email: [email protected] Seekins Ford Lincoln Mercury 700 G St. Providing quality marine services in 1625 Old Steese Hwy. P.O. Box 100360 Alaska for over 15 years. Commercial Fairbanks, AK 99701 Udelhoven Oilfield System Services Anchorage, AK 99510-0360 diving, underwater welding, underwa- Contact: Steven Angel, fleet sales mgr. Anchorage office: Contact: Kevin O. Meyers, president & ter inspection with video, vessel repair, Phone: (907) 459-4044 184 E. 53rd Ave. CEO marine construction and marine salvage Fax: (907) 450-4007 Anchorage, AK 99518 Phone: (907) 265-6134 Phone: (907) 344-1577 Fax: (907) 265-1502 Fax: (907) 522-2541 Nikiski office: Marathon Oil P.O. Box 8349 3201 C St., Ste 800 Nikiski, AK 99635 Anchorage, AK 99503 Phone: (907) 776-5185 Contact: John A. Barnes, regional mgr. Phone: (907) 561-5311 Fax: (907) 776-8105 Fax: (907) 564-6489 Prudhoe office: Website: www.marathon.com Pouch 340103 Prudhoe Bay, AK 99734 XTO Energy Phone: (907) 659-8093 810 Houston St., Ste. 2000 Fax: (907) 659-8489 Fort Worth, TX 76102 Serving Alaska for more than 25 years. Contact: Vaughn O. Vennerberg, II Phone: (817) 870-2800 Weld Repairs/Manufacturing Fax: (817) 870-0379 Other Office: XTO Energy, 52260 Shell Hanover Canada Road, Kenai, AK 99611, Doug Marshall, 500, 101-6 Ave. SW production superintendent Calgary, AB, T2P 3P4 Canada XTO Energy, established in 1986, is Contact: Rod Saville, Country Mgr. engaged in the acquisition and devel- Canada opment of quality, long-lived producing Phone: (403) 261-6801 oil and gas properties and exploration Fax: (403) 266-1066 for oil and gas. Email: [email protected] Web site: www.hanover-canada.com Hanover Canada is the leading provider of natural gas compression services and equipment in Canada. We maintain an PETROLEUM NEWS • WEEK OF JUNE 20, 2004 PETROLEUM DIRECTORY B23 B24 PETROLEUM DIRECTORY PETROLEUM NEWS • WEEK OF JUNE 20, 2004 company snapshots COURTESY OF AEROMED OF COURTESY

Aeromed medical crews and flight crews are totally dedicated 24 hours a day, seven days a week. COURTESY OF ASRC ENERGY OF COURTESY COURTESY OF BAKER HUGHES OF BAKER COURTESY

ASRC Northstar pipe loading operations in Prudhoe Bay Alaska. COURTESY OF HANOVER CANADA OF HANOVER COURTESY

Baker Hughes AutoTrak ™ entering the hole.

Hanover Maloney fabrication facility and staff, Calgary, Alberta, Canada. The fabrication shop has estab- lished a reputation worldwide for its skid-mounted dehydration units, sulphur recovery plants and gas treat- ing facilities. 4 De Beers, Tahera partner in NWT West of Jericho site in Nunavut, four diamondiferous kimberlites, sizeable Muskox pipe 6 Woewodski drilling nearly done Bravo funds core program to test massive sulfide prospects, initial work encouraging 8 Neighbors get new look Kinross plans early-stage exploration on gold occurrences near Fort Knox, True North

A special supplement to Petroleum News DIAMOND CORE DRILLING RIG ON THE NORTH ZONE AT THE UNION BAY PLATINUM PROJECT IN WEEK OF SOUTHEASTERN ALASKA. CURT FREEMAN PHOTO June 20, 2004 2 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● FAIRBANKS, ALASKA Kinross adds equipment, ups spending Fort Knox owner plans $60M capital budget to remove waste rock for Phase 6 mining to carry mine life into 2010

By PATRICIA LILES Mining News Editor

ork began this spring on a three LILES PATRICIA year, $60 million capital project at W the Fort Knox gold mine northeast of Fairbanks, Alaska, a project that will ultimately access 1 million ounces of deeply buried gold, ensuring production at Alaska’s largest mine through 2010. Called Phase 6, the mine expansion entails removing 55 million tons of non- gold bearing rock, or waste rock, in order to access an estimated 1 million ounces of gold already included in the mine’s reserve used to estimate the remaining amount of production life. Toronto-based Kinross Gold, which owns the Fort Knox mine, decided earlier this year to proceed with the Phase 6 project. The work was briefly described in the company’s 2003 year-end report, and was further detailed in Kinross’ first quarter report, released May 10. Six new haul trucks, similar to the truck pictured at left, are due to be delivered to Fort Knox in late July or early August. The six Caterpillar 789 “Results from Fort Knox in-pit work haul trucks each provide a 190-ton capacity. The new trucks dwarf the mine’s 150-ton trucks, pictured at right. confirmed sufficient continuity of the mineralization to justify a major pit wall Fort Knox General Manager John Wild. equipment. Lowered production, layback on an assumed gold price of $325 Miners will be able to access that gold, “Twenty million is for the capital higher costs in first quarter per ounce,” the report said. “This major starting in 2007, allowing mining to con- investment in Phase 5 and Phase 6,” Wild layback is compromised of a three year, tinue through 2009. The final ore stock- said, in an interview with Mining News on Adding ore from True North, combined approximately $60 million capital expen- piles will be processed in 2010, according June 1. “We’re really pleased to have this with mining moving into an area with a diture program mostly in the form of strip- to Wild. budget approved.” higher grade of gold per ton of rock, will ping to liberate ore to prolong the econom- Six new haul trucks are due to be deliv- improve Fort Knox’s production and cash ic life of the Fort Knox Mine.” New equipment requires more workers ered to Fort Knox in late July or early costs, Wild said. In the first three months of 2004, Fort When the waste rock is finally This year, Kinross plans to spend $39 August, he said. According to the compa- Knox produced 75,980 ounces of gold, a removed, at a rate of about 60,000 tons per million on capital investments at Fort ny’s March 11 press release, the six decrease from the 91,214 ounces produced day, the remaining strip ratio for mining Knox. Of that, $19 million will go toward Caterpillar 789 haul trucks each provide a in the first quarter of 2003. Total cash costs gold-bearing rock is 1.8 to 1, according to purchase or lease of new dirt-moving 190-ton capacity. A new loader has been added to the mine fleet, and more loading were $290 per ounce, compared to the equipment is being considered. The com- $260 per ounce posted in the first quarter pany purchased a new 27.5 cubic yard of 2003. shovel in 2003, spending $3.7 million. “Production levels for the first quarter Adding new equipment and the of 2004 were marginally ahead of plan and increased mining work per day will require total cash costs were 6 percent below more workers, Wild said, adding to the 385 plan,” the company said in the first quarter currently working at Fort Knox. report. “During the first half of the year, “We’re adding new employees already,” mill feed grades are low due to the mining he said. “We’ll be back up to the 424 range sequence at Fort Knox and the deferral of toward the end of the year.” True North mining to the second half of The Phase 6 waste rock removal is pre- 2004.” dominately on the south side of the Fort That will change in the second half of Knox pit. Some of the stripping work the year, as new equipment begins to help wraps around the pit sides to the east and move more waste rock, miners move into a to the west, Wild said. Plans call for the higher-grade area, the tailing dam project pit’s final size to be roughly 265 acres, is completed and work resumes at True measuring 5,200 feet by 2,600 feet, by North. more than 1,000 feet deep. “The grades are typically better, softer, and it blends better through the mill,” Wild Tailings dam lift started said. “The net effect is lower operating costs. You’ll see our operating costs drop.” In addition, dirt-moving crews at Fort Kinross projections call for production Knox have also been working to complete to increase from 145,000 ounces expected a 25-foot lift on the tailings dam impound- in the first half of 2004 to 195,000 ounces ment, extending the amount of storage for in the second half. Total cash costs for the non-mineralized rock, Wild said. The $5 first half of the year are expected to aver- million spent on the tailings dam lift this age $280 per ounce, decreasing to approx- year will give Fort Knox another two years imately $176 per ounce in the second half. of tailings storage at the mine’s 2003 The company expects total 2004 pro- milling rate of 14 million tons per year. duction to be 340,000 ounces, with an “The tailings dam is doing quite well. average cash cost at $220 per ounce of So far we are definitely on track for com- gold. The average grade of gold mined pletion and on budget,” he said. during the first three months of 2004 was The lift, which is being constructed 0.91 grams per tonne, compared to 1.11 using equipment and some personnel from grams per tonne in the first quarter of the recently shuttered True North satellite 2003. Kinross reported a recovery rate of mine, should be complete in about two 81 percent, compared to 83 percent in months, weather permitting, Wild said. 2003. Depreciation, depletion and amorti- Kinross announced its decision to sus- zation costs dropped to $82 per ounce, pend mining at True North, about 10 miles compared to $105 in the first quarter of northwest of Fort Knox, in early March. 2003. Plans call for mining to resume at True Total production costs in the first three North sometime in the fourth quarter of months of 2004 were $376 per ounce of 2004, Wild said. gold produced at Fort Knox, compared to “If we have an opportunity to do it a lit- $369 per ounce in the first quarter of tle earlier, we’ll do it,” he said. 2003. ● PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 3

INTERIOR ALASKA AngloGold files drilling permits for ER, Eagle properties near Pogo project AngloGold (U.S.A.) Exploration filed exploration permits with the Alaska Department of Natural Resources in late May, requesting permission to drill up to 60 core holes this summer on two different properties near the Pogo gold project in Interior Alaska. The company plans to drill up to 30 holes on the ER project, just west of Pogo, in the upper Goodpaster River drainage. Vancouver, British Columbia-based Rimfire Minerals initially staked some of that property and has optioned its holdings to The company plans to drill up to 30 AngloGold. holes on the ER project, just west of The two companies staked addi- Pogo, in the upper Goodpaster River tional ground in the area in recent drainage. Vancouver, British months, increasing the land pack- Columbia-based Rimfire Minerals age to a 16.5-square mile claim block, according to Rimfire. initially staked some of that property Helicopter-supported diamond and has optioned its holdings to core drilling is tentatively sched- AngloGold. uled to start at ER between June 15 and July 1, according to AngloGold’s exploration permit application. The actual number of drill holes depends on the initial results, according to a letter submitted to the department by AngloGold’s North America Exploration Manager Jeff Pontius. Maximum depth of the core holes will be 2,000 feet. The Eagle property, several miles southwest of Pogo between the Goodpaster River flats and the Shaw Creek flats, will also be drilled this year. Recent claim staking by the two companies also increased the size of the Eagle block, to 24.6 square miles. AngloGold submitted an exploration application with the state, requesting per- mission to drill up to 30 core holes on Eagle this summer. Again, the work will be conducted by helicopter. Maximum depth of the holes will be 2,000 feet. AngloGold plans to spend $2 million on exploration in Alaska this year, Pontius told Mining News in early April. The amount of drilling will increase from the seven holes punched in the ER property in 2003. The company has expanded its presence in the Pogo area through claim stak- ing. Including lands staked with partners and by itself, AngloGold’s total acreage is 61,000 hectares, Pontius said. That translates to 150,731 acres, or 235 square miles. Total claims staked in the Pogo area are more than 500 square miles, or 322,920 acres, according to records kept by the Alaska Department of Natural Resources. Of those claims, about 200,000 acres of land — 312.5 square miles — have been staked since late 2002, throughout 2003 and in the first months of 2004. —PATRICIA LILES, Mining News editor

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North of 60 Mining News is a monthly supplement of Petroleum News, a weekly paper. To subscribe to Petroleum News and receive the monthly mining supplement, call (907) 522-9469 or sign-up online at www.PetroleumNews.com. The price in the U.S. is $52 per year, which includes online access to past stories and early access to Petroleum News every week. (Outside the U.S. the annual price is $165.95.) Or, just purchase the online edition of Petroleum News, which also includes the mining supple- ment and online access to past stories, for $29 per year. 4 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● NUNAVUT CANADA Targets identified De Beers, Tahera to develop at Black Lake diamond project adjacent to Jericho diamond project Results from a preliminary ground Tahera to spend $11M by ’08 to earn 50% interest in property; De Beers will operate larger projects geophysical exploration program on the Black Lake diamond project in the By DON WHITELEY The property, 14 kilometers west of Jericho, has four Northwest Territories identified five Petroleum News Contributing Writer high priority geophysical targets for diamondiferous kimberlites, including the sizeable drilling, the joint venture operating the nternational diamond giant De Beers and Canadian junior Muskox pipe. project announced June 8. mining company Tahera Corp. have signed an agreement to Kalahari Resources Inc. and joint I jointly explore and develop 36,000 hectares of de Beers’ and this will put us firmly on the map with project develop- venture partners land adjacent to the Jericho diamond project in Nunavut. ment in Nunavut,” Molyneux said in a statement. SouthernEra The program According to the terms of the agreement, Tahera will spend De Beers’ land holdings in Canada total 163,000 square Resources Ltd. $11 million by 2008 to earn a 50 percent interest in the prop- kilometers, with 139,000 kilometers in Nunavut. Two mining has defined five erty. The agreement has been structured so that each company and Island Arc high-priority projects are under development, Snap Lake in the Northwest Mining Corp. can act as operator, as the development grows, depending on Territories and Victor in Northern Ontario. The company will said the program geophysical the size of the project. spend 43 percent of its US$92 billion global exploration tested two kim- targets with “There is a natural fit between De Beers and Tahera Corp. budget in Canada. berlitic indicator bulls-eye for this property and this partnership seeks to optimize oppor- In that vein, De Beers is also launching a C$1 million mineral trains — magnetic tunities for both parties through the synergies we have identi- exploration program Nunavut’s Kivalliq region. The company North Margaret geophysical fied,” said Richard Molyneux, president and CEO of De Beers has already held public meetings in Rankin Inlet and Canada. “The significance of this agreement is its flexibility Lake and South signatures Chesterfield Inlet. One. regarding who will be the operator and how the product will Project Manager Paulo Pereira said in a release the compa- ranging The program be marketed.” ny will be taking 3,000 samples from two areas north of Baker has defined five between 50 to Each company can raise its interest in individual develop- Lake this summer. “That’s the new frontier for diamond explo- high-priority geo- 100 meters in ment projects depending on the project value. For projects of ration in Canada,” he said. physical targets diameter. C$750 million or less, Tahera will be the operator and can Meanwhile, Tahera’s $50 million Jericho Mine — the first with bulls-eye increase its interest to 75 percent by making certain payments diamond mine in Nunavut — has moved a step closer to real- magnetic geophysical signatures rang- to De Beers. ity. The Ministry of Indian Affairs and Northern Development ing between 50 to 100 meters in diame- For larger-scale projects, De Beers will be the operator, and has accepted the Nunavut Impact Review Board’s report on ter. The five targets will be ground coordinate the construction of a processing plant. De Beers the proposed Jericho Mine. Tahera now moves to the permit checked and sampled during July fol- can increase its interest to 70 percent by making payments to stage. lowed by drill testing of targets that Tahera. The mine, about 350 kilometers southwest of Cambridge return positive results from the follow- Bay, is expected to employ up to 175 people during mine and up program. Four kimberlites on property plant construction, in the open-pit and underground opera- —DON WHITELEY, Petroleum News The property, 14 kilometers west of Jericho, has four dia- tions as well as in its processing plant. The company hopes to contributing writer mondiferous kimberlites, including the sizeable Muskox pipe. have Inuit make up almost two-thirds of its staff. “We believe that this partnership with Tahera is the most Company officials say the mine could be operational as efficient means to move these kimberlite discoveries forward early as 2005. ● PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 5

● NORTHWESTERN BRITISH COLUMBIA NORTHWESTERN ALASKA Major drilling kicks off at Galore Creek NovaGold and its Canadian subsidiary SpectrumGold increase exploration spending at remote gold-silver-copper property, new resource shows more metals and better grades

By PATRICIA LILES Mining News Editor

ovaGold Resources and its Canadian subsidiary SpectrumGold N are increasing spending this year

for the company’s Galore Creek SPECTRUMGOLD COURTESY property in remote northwestern British Columbia, kicking off a large, aggressive drilling and advanced exploration pro- gram in late May. Ambler property in northwestern Alaska Galore Creek, about 37 miles west of the Cassiar Highway and about 46 miles east of Wrangell, Alaska, is a large, well- NovaGold ramps up for Ambler; first season defined gold-silver-copper resource pre- viously worked by Kennecott. on volcanogenic massive sulfide deposit Three core rigs will work through the NovaGold Resources plans to work summer, completing more than 60,000 on its other large metals deposit this NovaGold plans its initial 2,000- feet of samples. NovaGold has increased summer, the Ambler property located in meter (6,400 feet) drilling work at its exploration budget for Galore Creek, the remote part of northwestern Alaska, the Arctic deposit, the most with plans to spend more than $8 million filing a permit with the state to drill up to advanced target on the Ambler Canadian in 2004. 21 core holes. property. Previous exploration Last year, NovaGold optioned the The company announced a $1.5 mil- property through its Canadian subsidiary lion budget for the property earlier this identified an inferred resource at SpectrumGold, and completed an eight- year, shortly after signing an agreement Arctic, containing 817,000 ounces hole, 10,000-foot drill program in the fall. with Kennecott to acquire a 51 percent of gold, 62.1 million ounces of That initial work was combined with data interest in the gold, silver, copper and silver, 3.2 billion pounds of taken from more than 300 historical holes base metals deposit. copper, 4.2 billion pounds of zinc to produce a new resource calculation Helicopter-supported exploration and 640 million pounds of lead. announced May 5. Galore Creek, about 37 miles west of the work will take place between June 15 That new geological estimate, calculat- Cassiar Highway and about 46 miles east of and Sept. 30, according to the company’s ed by an independent engineering firm, Wrangell, Alaska, is a large, well-defined annual exploration application filed with the Alaska Department of Natural increased in both the amount of metals gold-silver-copper resource previously worked by Kennecott. Resources on May 17. contained in the deposit and the amount Crews of up to 15 people will be staged out of the Bornite Camp, in an existing of higher-grade material that would help identifies 70 million tons of material with facility owned by the NANA Corp. about 14 miles southwest of the Arctic deposit. pay back initial capital costs of a mine grades of one gram per tonne of gold and Drill holes will range in depth from 500 feet to 2,000 feet, according to explo- project. 1 percent copper. ration plans outlined to the state by project manager Stan Dodd. Most of the work, “This updated resource estimate clear- 17 holes and 2,700 feet of constructed drill trails, will be on private patented ly demonstrates that Galore Creek is a Estimate grows in copper claims. Three holes and 1,100 feet of trail will be on unpatented federal claims and very large, high quality, porphyry-related and gold mineralization one hole will be on state of Alaska claims. gold-silver-copper deposit,” said Rick The deposit remains open along strike NovaGold plans its initial 2,000-meter (6,400 feet) drilling work at the Arctic Van Nieuwenhuyse, president and CEO and down dip. More nearby targets deposit, the most advanced target on the Ambler property. Previous exploration of NovaGold and SpectrumGold. “The remain unexplored or under explored. identified an inferred resource at Arctic, containing 817,000 ounces of gold, 62.1 study also confirms that we have already Only two of 12 mineralized zones on the million ounces of silver, 3.2 billion pounds of copper, 4.2 billion pounds of zinc achieved 70 percent of our initial 100 mil- property were included in the new and 640 million pounds of lead. lion tonne higher-grade target.” resource, according to NovaGold’s vice That puts the Arctic deposit in the top volcanogenic massive sulfide deposits in An industry benchmark for large cop- president of exploration, Joe the world based on in-situ metal value, according to the company’s statement. per deposits involves identifying a mini- Piekenbrock. “We believe that there is NovaGold can earn its 51 percent interest in Ambler by matching Kennecott’s mum of 100 million tons of mineraliza- excellent potential to add significantly to historical spending on the property, which totals $20 million. NovaGold has until tion grading 1 percent or higher. That ini- the overall resource and expand the high- 2016 to do so, although the agreement requires a minimum of $5 million on explo- tial high-grade material typically will er grade zones of mineralization this sea- ration and development spending during the first five years. cover initial capital costs, providing the son.” —PATRICIA LILES, Mining News editor ability to later mine lower grades of min- eralization. Galore Creek’s new resource see GALORE CREEK page 7 6 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● PETERSBURG, ALASKA Woewodski drilling nearly complete Bravo Ventures funds nine hole core program to test three massive sulfide prospects on small Southeast Alaska island

By PATRICIA LILES Mining News Editor Other Manex Group work planned at Duke Island, Divide property

pending about $250,000 on its first Bravo Venture’s parent company, the Manex Group, has Another exploration company in the Manex Group, Rio phase of drilling this year, Bravo four other exploration companies, two of which have worked Fortuna, has dropped its remaining Alaska property, S Venture Group hit the ground mid- in Alaska. announced in late May. May with a core drill to test three Quaterra Resources currently holds the Duke Island PGE, That property, called Divide, was 28 miles north of Nome prospects on the Woewodski Island prop- copper and nickel prospect about 30 miles southeast of in western Alaska. erty in Southeast Alaska about 18 miles Ketchikan. The company plans to start core drilling on that “It was a very expensive project and due to market condi- southwest of Petersburg. project in late August, according to Jay Oneness, vice presi- tions, we were not able to get back up there,” Oneness said. The 3,000 meter drill program will be dent of investor relations. A final exploration budget has yet “We decided the best use of our funds is in Nevada on the completed mid-June, according to Jay to be determined by company president Tom Patton, Oness Highlands joint venture program there.” Oness, vice president of investor relations said on June 7. Tentative plans call for a 5,000-meter (16,000- Rio Fortuna acquired the road-accessible Divide property for the Canadian junior, part of the Manex foot) core drill program. in 2002, according to the Alaska Mineral Industry report. Its Group of mineral exploration companies. That property contains 18 different targets, with two well- agreement called for spending $1 million over a five-year “We might increase that (drill work),” exposed zoned ultramafic bodies, he said. The Judd Harbor period and issuing 1 million shares of Rio Fortuna common body is estimated to be two miles in diameter, and the Hall stock. “We might increase that (drill Cove body is believed to be three and one-half miles in diam- Rio drilled 18 holes totaling 4,452 feet on the property in work). We’re getting some excellent eter. 2002, and completed minor exploration at Divide in 2003, “It looks like they are part of the same complex — we’ve according to state records. The company also acquired, then results — some nice material at interpreted them to be parts of the same intrusive body at dropped in 2003, another Nome-area road accessible explo- both the Mad Dog and Lost Lake depth,” Oness said. Last year, Quaterra completed a large air- ration property, called Full Auto. deposits.” —Jay Oness, vice president of borne geophysical survey at Duke Island, he said. Manex also has two other companies which are working on investor relations, Bravo Venture Group “Because of the size of the project, we could not afford to properties in Mexico. fund (ground work) at that time, due to market conditions and —PATRICIA LILES, Mining News editor Oness told Mining News June 7. “We’re the price of our stock.” getting some excellent results — some nice material at both the Mad Dog and polymetallic deposit containing gold, sil- Venture could return to Woewodski later ed on the Woewodski property, according Lost Lake deposits.” Crews punched four ver, zinc, lead and copper. this year for more work, Oness said. to Bravo’s website. holes at the Mad Dog prospect then “We feel we’ve got a tremendous “We might be doing another financ- In addition to drilling, historical grids moved the drill rig to the Lost Lake opportunity to advance a massive sulfide ing,” he said. “We raised $1.4 million in have been re-established and orientation prospect, where three holes were drilled. deposit on the island,” Oness said. “We’re Bravo, so we have the funds available for soil sampling has been conducted at the Average depth of the holes is 200 to 300 hoping Mother Nature is kind to us and the different properties.” Brushy Creek, Boulder Point, Crab Bay meters, Oness said. assay results will reflect that.” In April 2003, Bravo Venture optioned and Lost Lake prospects, according to the The third prospect, Crab Bay, will Depending on results from this early the Woewodski Island claims from company’s May 13 press release. New sul- receive the remaining drill footage in this summer exploration program, Bravo Olympic Resources, a Southeast Alaska- fide discoveries have been identified at first phase of exploration at Woewodski, a based privately held exploration company, Goose Cove, Hattie and West Brushy providing access to nearly the entire four- Creek. Soil lines have tested mineralized by-five mile island. Terms of the acquisi- zones along Butterworth Island and in the tion agreement allow Bravo to earn a 100 Mad Dog South area. Results are pending percent interest in the property over a five- from 58 rocks and 91 soil samples gath- year period by spending $2 million on ered on the property. exploration and development, issuing 400,000 shares to the property owners and 2003 exploration identifies carrying the holding costs of the claims. geophysical targets Similar to Greens Creek volcanic Based on historical work, including Hydra-Wink drilling and surface sam- massive sulfide pling, the property contains a geological Following a successful initial explo- inventory of 500,000 tons, with grades of ration program in 2003, which included 8.1 percent zinc, 0.6 percent lead and 2.3 rock sampling and limited core drilling on ounces of silver per ton of rock at the Lost the Lost Lake prospect, Bravo staked three Lake prospect, and 8.9 percent zinc, 2.2 additional claims on the island. percent lead and 8.1 ounces of silver per “Bravo is encouraged by the early ton of rock at the Mad Dog prospect. returns from the property,” the company “Detailed evaluation of newly acquired said, in a November 2003 press release airborne geophysical data covering announcing some high-grade surface sam- Woewodski Island has identified 93 dif- ples. “Precious-metal-rich sulfides identi- ferent geophysical targets of which 26 fied in the 2003 surface sampling and anomalies are considered high priority for confirmed in several exploratory ‘winkie’ ‘conductive’ massive sulfide type targets,” drill holes together with the newly Bravo said on its website. acquired historical data supports a Greens In 2003, the company completed 1,402 Creek type exploration model,” the com- feet of scout diamond drilling at Lost pany said. Lake prospect where high-grade massive About 110 miles north of Woewodski sulfides intersected in past winkie drilling Island, Greens Creek produces gold, sil- confirms previous drill results. One of ver, zinc, lead and copper from its under- those holes produced a 1.8 meter (5.9 ground mine near Juneau. More than 10 foot) intercept, grading 222 grams of sil- different synergetic volcanic massive sul- ver (7.1 ounces) per ton of rock, 6.34 per- fide and gold quartz vein targets are locat- cent lead and 16.15 percent zinc. ● PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 7

● NORTHWEST TERRITORIES High costs, no benefits, says report Canada’s mining industry raises hackles by attacking valued-added diamond cutting and polishing requirements

By GARY PARK Petroleum News Calgary Correspondent

he cutting and polishing sector of Canada’s much-touted diamond indus- T try needs some trimming and buffing of its own, suggests a new report from the mining industry that has angered the

Northwest Territories government. OF CANADA ASSOCIATION MINING The study, entitled National Diamond Strategy: An Industry Response, said efforts to build a value-added component to the thriving diamond mines has resulted in “short-term, unsustainable policies” that penalize primary producers and in money- losing ventures that employ too many for- The study, which described Canada as a “diamond powerhouse” said that by providing the right mix of fiscal and regulatory policies, gov- eign workers. ernments can ensure diamonds benefit all Canadians. “Clearly any cost-benefits analysis of efforts to enter the cutting and polishing is the only way the Northwest Territories can countries are also demanding a slice of the tremendous and we’re only just beginning,” industry in Yellowknife would paint a stark diversify the benefits of diamond mining. output to build their spin-off industries. he said. picture,” the study said. Failing that, Handley warned, the only He said that to focus on labor costs is It was compiled by three industry heavy- option is for the Northwest Territories to short-sighted, making no allowance for Exploration called key weights — the Mining Association of impose a tax on production. increasing automation in the industry. to long-term supply Canada, the Northwest Territories and “We entered into agreements with dia- The Northwest Territories government Tony Andrews, executive director of the Nunavut Chamber of Mines and the mond companies to have their support in requires mining companies to sell 10 per- prospectors and developers association, said Prospectors and Developers Association of setting up a (cutting and polishing) industry cent of their select, high-quality rough dia- “exploration is the key to assuring the long- Canada. in lieu of us levying some sort of tax,” he monds to local factories to derive some term supply of Canadian diamonds, which told the Globe and Mail. direct economic gains from the Ekati and will underpin the growth of other parts of Findings inflame “If the diamond industry does not want to Diavik mines, which have made Canada the the diamond pipeline.” Northwest Territories premier participate with us in supporting the dia- world’s third-largest producer behind Russia The study, which described Canada as a mond polishing sector and the jewelry and Botswana. The recommendations were distributed “diamond powerhouse” said that by provid- industry, where the real profit is, then it’s The government last year estimated that to Canada’s 13 provincial and territorial gov- ing the right mix of fiscal and regulatory time for us to sit down and talk.” the two mines, plus the Snap Lake mine policies, governments can ensure diamonds scheduled to start oper- benefit all Canadians. ations in 2008, are It called for governments to: expected to generate • Improve the investment climate for C$7.5 billion in gov- exploration and mining by reducing the ernment revenues over uncertainty and complexity of Canada’s reg- their operating lives. ulatory environment. But that report said the • Invest in northern geoscience and infra- Northwest Territories structure and human resource skills devel- will gain only C$260 MINING ASSOCIATION OF CANADA ASSOCIATION MINING opment and to modernize the tax system. million. • Conduct a thorough economic analysis There are four cut- of the competitiveness and cost structure of ting and polishing fac- the diamond cutting and polishing industry tories in Yellowknife, to properly identify the economic opportuni- which “have had to rely ties to develop the downstream activity. on government subsi- • Avoid the use of short-term, unsustain- dies and industry sup- ernments, which are working on a national able policies to stimulate the development of Handley said the industry’s thinking is port to remain in business,” while employing strategy. cutting and polishing. flawed, because the territory does not get fewer than 150 workers in “relatively low- The findings inflamed Northwest • Eliminate the federal excise tax on jew- any resource royalties. paying jobs,” the mining industry study said. Territories Premier Joe Handley, who said elry. “If we’re looking at valued-added indus- that if the industry is not ready to work with The report said that De Beers, which is Other producing countries tries downstream, we have to make sure that his government on a value-added sector, developing the Snap Lake mine, has award- also want spin-off industries they are sustainable and make sense in the then “we’ve got to look at what the alterna- ed C$29.2 million in contracts, of which economic reality of doing business in tives are.” Stephen Ben-Oliel, president of the C$22 million went to companies partly Yellowknife, said Mike Vaydik, general He said that because the resource royal- Canadian Diamond Manufacturers owned by aboriginals. ● manager of the Chamber of Mines. ties from diamonds go directly to the Association, lent weight to Handley’s argu- “The benefits to diamond mining are Canadian government, a secondary industry ment, noting that other diamond producing

continued from page 5 resources to the indicated category, as working on the property this summer, capital and operating costs. well as expanding the current resource. according to NovaGold. The Tahltan Work this summer also will expand the GALORE CREEK The company also plans to drill to define Nation Development Corp. and Rescan on-site camp facilities, as well as improv- the initial 100 million tons of mineraliza- Environmental Services have formed a ing existing infrastructure. The existing The new resource at Galore Creek con- tion with 1 gram per tonne of gold and 1 new joint company called RTEC to carry airstrip will be rehabilitated, a series of tains two categories, both using a 0.5 per- percent copper for the initial payback of out baseline environmental work, in bridges will be rebuilt and road access to cent copper equivalent cut-off grade. The mine capital. preparation for the project’s environmen- indicated resource is estimated to contain the Main and Southwest deposits will be NovaGold has also prioritized high- tal assessment report. repaired. 4 million ounces of gold, 52.2 million grade targets at Copper Canyon, Junction As many as 70 people are expected to ounces of silver and 4.6 billion pounds of and the South Zone, as well as on the be working at Galore Creek this summer, Company consolidation continues copper. Additional mineralization in the adjacent Grace property. Finally, the com- NovaGold said, in preparation for a pre- NovaGold is continuing with plans to inferred category includes 1.2 million pany plans to explore for additional min- feasibility study expected to be complete acquire the remaining 44 percent of com- ounces of gold, 17.2 million ounces of sil- eralization on several recently identified in mid-2005. ver and 1.3 billion pounds of copper. geophysical targets and known mineral- Later this summer, NovaGold expects mon shares of its Canadian subsidiary, The resource increased in the gold cat- ized occurrences. to release a preliminary economic assess- SpectrumGold, bringing the assets of both egory by 15 percent, and in copper, by 14 In addition to the 60,000 feet of ment study, being completed by Hatch of companies under the NovaGold banner. percent, compared to the historical geo- drilling, NovaGold plans to complete a Vancouver, the independent engineering A SpectrumGold shareholder meeting logical estimate. detailed, property-wide MAG, CSMAT firm that calculated the new Galore Creek and vote is planned for July 8. With the and 3-D induced polarization geophysical resource. That new study will consider appropriate affirmative vote, the plan to Drilling work begins survey program to generate additional mine development options, infrastructure, combine the companies will be concluded Drilling work this summer is targeted, drill targets. power and access options, site layout, between July 15 and Aug. 15, the compa- in part, to upgrading the inferred Environmental consultants will also be metallurgy, development timetables and ny said in its June 3 press release. ● 8 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● FAIRBANKS, ALASKA Neighboring prospects get new look New Alaska exploration manager for Kinross plans early-stage exploration work on gold occurrences near Fort Knox, True North

By PATRICIA LILES mill, extending the life of Fort Knox Mining News Editor beyond the current 2009-2010 ending cur- rently projected. n his first season as the Alaska and “A conservative number might be Russia exploration manager for 50,000 to 100,000 ounces (of additional I Kinross Gold, Rich Harris will be gold), but obviously we hope to increase spending about $2.5 million on explo- that as much as we can,” Harris said. ration in 2004, mostly for early-stage “Some drilling is directed towards prospects neighboring the company’s Fort increasing the size of the ultimate pit ... a Knox and True North mines northeast of little deeper and pushing out a bit, but Fairbanks, Alaska. there are a lot of variables.” Final budgets for several projects, Last year, Kinross said it spent including three prospects neighboring $710,000 on its in-pit exploration pro- True North and three others in the Fort gram, part of the company’s $3.2 million Knox/Gil area, are still pending, Harris spent on exploration in Alaska. This year’s said in interviews June 1 and June 5. program is changing slightly, with some “Everything is being reevaluated local- expansion drilling, Harris said. ly. We’re looking at the whole approach to “Most of the core drilling is directed see if we need to make some changes,” he toward pit expansion,” he said. “The said. “It’s a time of big changes ... we’re reverse circulation holes are on the re-looking at the whole district and prop- perimeter ... (they are) expansion targets. erties to see the possibilities out there.” We’re stepping out from the pit.” In late April, Kinross lured Harris away Those extension holes will include two from his most recent position as minerals the forest for the trees — so burrowed in,” started includes a $1 million drilling pro- drill holes to the west, where the Fort development specialist for the Alaska he said. “I think that’s one reason why I gram to further define targets within and Knox claim block adjoins federally con- Department of Commerce and Economic got the position, to provide a new look — adjacent to the existing Fort Knox pit. trolled land associated with the National Development, counting on his past experi- to have someone with another view and Harris said about 15,000 feet of core Environmental Satellite, Data and ence in the Interior with Newmont Gold, different background.” samples and 5,000 feet of reverse-circula- Information Service, also called NOAA. primarily as project geologist at True One significant change is scaling back tion samples will be drilled this year as Kinross’ subsidiary, Fairbanks Gold North before Kinross acquired the proper- development work and infill drilling at part of the in-pit exploration effort. Some Mining Inc., drilled seven reverse circula- ty. Gil. Instead, work this summer will focus holes will be drilled from the lowest level tion holes on that property in 2003. While His fresh view of Kinross properties on finding nearby mineralized areas for of the pit, to see if recoverable mineraliza- specific results were not released, the provides some broader thinking, geologi- additional targets. (See sidebar.) tion exists at depth. Other holes will be company said in late January that mineral- cally, that he hopes will translate into drilled to look for extensions of mineral- ization traced to the adjacent NOAA prop- some new discoveries. In-pit exploration expands ization to the east, south and west. The erty could not be pulled into the Fort Knox “No one had stepped back to look at Exploration work that has already goal is to find additional gold to mine and the bigger picture. You get so you can’t see see PROSPECTS page 9 PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 9

Kinross Gold scales back Gil project, CENTRAL ALASKA refocusing on discovery exploration Work on Kinross Gold’s most advanced exploration property in Interior Alaska, MAX Resource acquires Gold Hill the Gil deposit, will scale back considerably this year. Rich Harris, Alaska and Russia exploration manager for Kinross Gold, said the property in central Alaska focus has shifted from drilling Vancouver, British Columbia-based MAX Resource Corp. announced on May 17 the known deposit of Main its acquisition of the Gold Hill exploration property in central Alaska, near Cantwell. and North Gil, about seven The company plans to begin an exten- miles from the Fort Knox mill sive exploration and drilling program in complex, to looking for min- June, subject to acceptance for filing of MAX entered into an option eralized zones in the sur- the acquisition option and weather condi- agreement with Zazu rounding area. tions in the area, MAX said in its press Exploration Inc., a privately “We’re looking to test the release. held Texas corporation, which complete target outside the MAX entered into an option agree- holds a lease on the Gold Hill known deposit … to explore ment with Zazu Exploration Inc., a pri- claims from General Crude Oil along the Gil trend,” he said. vately held Texas corporation, which Minerals Co. “The emphasis is on evaluat- holds a lease on the Gold Hill claims from ing the potential of the larger General Crude Oil Minerals Co. General area. I feel it hasn’t been Crude Oil acquired the property in 1983, according to MAX’s press release, and con- aggressively explored in ducted some geologic and geophysical work, including drilling five core holes. The recent years.” best intercept was 11.5 feet, averaging 0.668 ounces of gold per ton of rock. Soil sampling and trench- Amax Gold, looking for a bulk tonnage gold occurrence in the late 1980s, con- ing will kick off that effort ducted other previous exploration work. Amax completed 5,885 feet of reverse cir- later this summer, and may be culation drilling in 21 holes, hitting some high-grade intervals but no thick intervals followed up with drilling. of lower grade mineralization. Right now, the company Gold Hill was originally drilled for molybdenum in the early 1970s, but some of plans to drill about 1,200 feet the holes were not assayed for gold then. A large soil geochemical anomaly exists, of core samples and 5,700 feet both on Gold Hill and the neighboring West Hill on the west side of the property. of reverse circulation samples Hydrothermal alteration is pervasive throughout the property, MAX said in its at or near Gil, Harris said. A Work on Kinross Gold’s most advanced exploration press release. Area creeks contain placer gold and have been worked in the past. final budget has not yet been property in Interior Alaska, the Gil deposit, will scale back considerably this year. —PATRICIA LILES, Mining News Editor approved. Those new prospects include Last Chance, between the mine and the Gil claims and Fourth of July Creek, north of the Gil project. The goal is to find additional sources of mineral- KETCHIKAN, ALASKA ization near Gil to justify opening the area as an additional satellite mine. Given the current geological knowledge about Gil, the deposit isn’t large Work starts at Union Bay property 35 enough to tap, according to Harris and to past Kinross corporate statements. “In the 11 years that they’ve been working on Gil, off and on, the resource has miles northwest of Ketchikan; Lonmin gotten smaller,” Harris said. “They started out with some fairly lofty expectations and those numbers become gospel. Then people become disappointed when the funds $1.2M for platinum exploration∆ results didn’t come back as expected.” Freegold Ventures and Pacific Northwest Capital announced plans June 1 to Estimates for Gil, now in a reserve category, are about 150,000 ounces in the begin drilling mid-June at the company’s Union Bay property about 35 miles north- two deposits. west of Ketchikan, Alaska, a $1.2 million exploration program being funded by “It’s shrunk down too small to be attractive to put a road out there,” Harris said. Lonmin Plc. Last year, Kinross and its partner on the Gil property, Teryl Resources, spent “Exploration will commence immediately with a detailed geological mapping about $1.6 million on the advanced exploration project. That included 127 reverse and sampling program and an airborne magnetic and electromagnetic survey,” the circulation holes totaling 28,000 feet, 31 core holes totaling 8,917 feet, four company said in its press release. Crews trenches totaling 1,150 feet and 358 rock samples collected for assaying, accord- will complete 9,000 feet of drill samples Another success of that 2003 ing to an April 21 press release from Teryl. during this summer’s season, according program was discovery of a Rather than spend more money for infill drilling, Harris said the project could to Freegold, initially targeting the be improved with new discoveries along the Gil/Fort Knox trend. Continental and Chevelle zones, where separate zone of copper, platinum “It’s a pretty compelling trend and in my view, very prospective,” he said. “It’s rock samples taken last year returned and palladium bearing sulfides at almost 20 miles long with a major deposit and throughout it gold occurrences and values ranging from 1 to 14 grams per Cannery Creek on the western side significant placer occurrences, but only fairly lightly explored. It represents a real- ton of platinum. of the Union Bay project, close to ly nice opportunity and is viewed as a significant exploration asset with the oppor- The Continental zone, some five the margin of the complex. That tunity to make a major discovery.” kilometers west of where 2003 drilling zone remains open to the north —PATRICIA LILES, Mining News editor took place, is a recently discovered min- and east, according to Freegold’s eralized area. Freegold President Harry Barr said June 1 press release. continued from page 8 see some reverse circulation drilling this last year that the Continental “looks year, as well as at Treasure Creek and very significant, in terms of surface PROSPECTS Vault Creek. samples.” Mineralization at Continental and Chevelle is hosted by similar rock types to the previously reported occurrences at the North and Jaguar Zones, where The fourth prospect is adjacent to True pit design. drills completed 4,490 feet of diamond core drilling in 2003. Lonmin funded that North, south of the existing mill site lease work, also, the platinum producer’s first foray in Alaska. True North area prospects boundary, according to the company’s exploration application filed with the New attention will be given this year to If results look good, more could be spent this year Alaska Department of Natural Resources four prospects neighboring the True North Lonmin’s agreement with Freegold and Pacific Northwest calls for annual on May 20. mine, a satellite deposit about 10 miles spending of a minimum of $1 million in 2004, 2005 and 2006, with a minimum of A fifth prospect, Alder Creek, is con- from Fort Knox that has provided addi- $750,000 afterward. sidered more of a grassroots exploration tional mill feed at Fort Knox since 2001. “Should the results of the data review prove to be sufficiently positive, Lonmin property. It is roughly 10 miles north of Harris came to Alaska in the early may elect to incur further expenditures before the end of the 2004 field season,” 1990s to work on the True North prospect Fort Knox. Harris plans some soil sam- Freegold said in its press release. for Newmont Gold, which later sold its pling on that geological play this year. Lonmin did bump its exploration spending midway through the 2003 work pro- interest in the property to Kinross. Now In its state exploration application, gram, allowing geologists to spend an extra 30 days on the property, Barr said then. the exploration work has a specific goal-to Fairbanks Gold requested permission to In a Jan. 20 press release, Freegold and Pacific Northwest released some drill provide additional mill feed at Fort Knox. drill up to 30 holes annually, with a maxi- results from the 2003 program, calling it “most encouraging.” Drilling at Jaguar “It’s close enough to True North that if mum depth of 600 feet, on these five produced some of the largest, high grade intercepts, including a 3.8 foot section we identify something, we could fast- prospects. They also requested permission grading 7 grams of platinum per ton of rock. The North Zone produced a 1.7 foot track it to the mining stage,” Harris said. to cut up to 10 trenches, up to 50 feet long, intercept, grading 10.59 grams of platinum per ton of rock. Those neighboring prospects include 20 feet wide and 10 feet deep. Another success of that 2003 program was discovery of a separate zone of cop- Treasure Creek and Vault Creek, 15 to 20 “Plans for this year are some soil sam- per, platinum and palladium bearing sulfides at Cannery Creek on the western side miles northwest of Fort Knox and west of pling and mapping where possible, per- of the Union Bay project, close to the margin of the complex. That zone remains True North, west of the Elliott Highway. haps some drilling,” Harris said. “These open to the north and east, according to Freegold’s June 1 press release. The third prospect, Newsboy, is on the are grassroots properties ... an area with Results of the Continental, Chevelle and Cannery Creek zones were available north side of Pedro Dome, adjacent to the some obviously placer goal potential, only after completion of the field season, Freegold said. Steese Highway. Harris described it as a where Chatanika terrain rocks are poorly —PATRICIA LILES, Mining News editor “fairly robust soil anomaly,” which should exposed.” ● 10 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● DELTA JUNCTION, ALASKA Pogo gold project shows progress Developers OK final feasibility study, production program; construction costs increase, initial gold production expected in March ’06

By PATRICIA LILES Mining News Editor

artners in the Pogo gold project northeast of Delta Junction, Alaska, have officially approved the final P feasibility study and production program, announc- ing plans on June 4 to complete construction and begin initial gold production in March 2006. Production will ramp up to commercial rates by the end of August, 2006, the three partners said in a joint press release. Development partners in the Pogo project, 40 miles northeast of Delta Junction in the upper Goodpaster River valley, include Teck Cominco Ltd., Sumitomo Metal Mining Co. Ltd. and Sumitomo Corp. Construction of Pogo was expected to be complete late in 2005, prior to a permitting delay that arose earli- er this spring. A Fairbanks-based environmental group in April filed an administrative appeal of the project’s final water discharge permit, issued by the Environmental Protection Agency. Work stopped at the project until early May, when the issues were resolved and the appeal was with- drawn. Now, crews are filtering back to the remote work site, currently accessible by air. In late May, 225 people were working on site, according to Karl Hanneman, man- ager of public and environmental affairs and special projects for Teck-Pogo Inc. “That will gradual- KARL HANNEMAN ly increase over the next few weeks,” he said, peaking at 500 workers this summer and next. Construction work on a 49-mile all-season road, con- necting Pogo and the upper Goodpaster River valley to the Richardson Highway, should be complete this September, according to Teck Cominco’s June 4 press release. Approximately 600 truckloads of materials and sup- plies have already been hauled to the remote site on the temporary ice road constructed in January and early February. Remaining supplies will be brought in after the all-season road is completed this fall, Hanneman said. Capital costs increase Estimates for Pogo’s capital costs have increased since the project’s interim feasibility study was complet- ed in late 2002, according to Teck Cominco. The weaker U.S. dollar and changes in steel and oil prices have bumped the estimated capital costs to $280 million, up $30 million from prior estimates. That increased capital cost does not include expenses for interest, escalation and suspension and remobiliza- tion costs associated with the permit appeal, Teck Cominco said. The three companies intend to finance will be 460,000 ounces per year for the first full three ing slightly below one-half ounce per ton of rock. The Pogo’s capital costs through cash on hand and corporate years of production. Mill crews will process 2,500 tons partners consider that there is “substantial potential for credit facilities. of ore per day. Updated reserve and resources at Pogo additions to reserves through near mine exploration,” ● Once completed, Pogo’s estimated production rate contain 4.5 million ounces of gold, with grades averag- they said in the press release. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 11

● NORTH AMERICA King Coal returning to the throne Blackouts, natural gas prices open way to first coal-fired plants since early 1990s; debate rages between ‘clean-coal’ believers, advocates of environmental controls; MIT’s Loren Cox says coal plants can be as clean as a gas-fired plants

By GARY PARK Petroleum News Calgary Correspondent U.S. coal production Want to know more? (in million short tons) If you’d like to read more articles about coal published in North of 60 Mining ong the symbol of a “dirty” economy News or Petroleum News’ mining section, go to Petroleum News’ web site and and seemingly destined for oblivion 1999 ...... 1,100 search for these articles in the Petroleum News archives that were publishes in L in the age of global warming, coal is 2000 ...... 1,073 the last year. The Petroleum News archives hold all the North of 60 Mining News making a resurgence in the United 2001 ...... 1,127 articles, as well as a mining section that appears within Petroleum News when States and Canada, propelled by the big 2002 ...... 1,094 news can’t wait for the monthly North of 60 Mining News publication. blackout last summer and the volatility of Web site: www.PetroleumNews.com natural gas prices. Source: U.S. Energy Information Administration It is a small advance, but 4,900 2004 megawatts of coal-fired generation is ● June 6 Offer for coal plant rejected by state agency under construction or in advanced devel- ● June 6 Alaska mine power options down to three Electricity ● May 23 Natural gas set to displace oil on world stage opment in the United States and another ● May 9 Calista Corp. chooses Canadian coal 11,000 megawatts is in early development, Generation in 2002 ● April 25 Coal project spurred by world demand according to a Standard & Poor’s report in ● March 28 As gas prices rise, utilities plan new coal-fired plants March. (power sector) ● March 28 Ontario aims to close coal-fired plants by 2007, use renewable energy Beyond that, 90 new coal-fired power ● March 14 Improving mineral development Coal ...... 51.8% ● Feb. 1 Usibelli puts coalbed on hold plants are on the drawing boards, with a Nuclear ...... 21.2% combined capacity of 50,000 megawatts Natural Gas ...... 16.3% 2003 and a price tag of $75 billion. Currently, Hydro-electric ...... 7.1% ● Nov. 16 Mining industry tops $1 billion — again total U.S. electricity capacity is 900,000 Oil ...... 2.3% ● Nov. 2 Struggle simmers over power source megawatts. ● Sept. 28 Contracts signed to ship coal to Korea once again Others ...... 1.2% ● Aug. 10 Coal — the king lives Even those projects that are under way ● Aug. 3 Power for Donlin Creek mine, Bethel, villages might come from local are the first coal-fired plants in about a Source: U.S. Energy Information Administration shallow gas, not B.C. coal dozen years and stem directly from the ● Aug. 3 Usibelli shifts to Two Bull Ridge growing uncertainty around gas prices, ● June 29 Stranded coal needs transportation said Loren Cox, associate director of the the coal gasification in use at several U.S. ● June 29 GVEA prepares power plant plans for construction bidding ● power plants turns coal into synthetic gas, June 15 Movement on Healy plant Center for Energy and Environmental ● March 14 Improving mineral development Policy Research at the Massachusetts hydrogen, sulfur, chemicals and a “rela- Institute of Technology. tively pure stream” of carbon dioxide that Note: Curt Freeman’s monthly mining update, which carries briefs about coal, is “When gas prices are high and/or can be shipped to depleted oil fields for not included in the above list. To find Freeman’s column in Petroleum News’ volatile and high, then sequestration, or for archives search for Curt Freeman and all the columns will pop up. there are enormous “When gas prices are high enhanced oil and coalbed methane incentives to switch to and/or volatile and high, then industry, however. emissions and, for the first time, proposing coal because the price recovery. there are enormous incentives Mark Zand, a principal at Wexford a cap on mercury emissions. of coal is very stable Referring to the Capital, an investment company with It is not yet clear what form those to switch to coal because the and the resource base “naysayers,” Dinning interests in energy and natural resources, changes will take or when they might be is so huge,” he told a price of coal is very stable and likened them to “the told Petroleum Economist that one of the imposed, but if plants are required to lower Calgary conference the resource base is so huge.” folks who said we’d problems with continuing low coal prices mercury emissions by 70 percent by 2018, this year. —Loren Cox, associate director, Center for crash at Y2K.” is that “producers don’t make any money.” coal-fired generators would face a severe Although dual-fired Energy and Environmental Policy Research, Duke du Plessis, a He said smaller, low-cost producers are challenge as would western U.S. producers power generation Massachusetts Institute of Technology research manager at being driven out by large-scale operations whose coal has mercury content that is dif- capacity has shrunk the Alberta Energy as they lose the battle to “make enough to ficult to remove. over the last 15 years, Research Institute, cover liabilities such as future land recla- Hanging more heavily over the industry that trend could easily be reversed, Cox said there are now technologies that can mation and legacy costs — pensions and is the prospect of controls on emissions of said. “remove most or all emissions of concern” disability coverage.” And once producers carbon dioxide, identified as the greatest “The owners of generation facilities from coal in the production of power. enter bankruptcy they “can’t just come contributor to greenhouse gases. want to stay in business,” he said. “The one Still critics of clean-coal technology back,” he said. The administration, because of its thing that no generator ever wants to expe- On the other hand, he said utilities must opposition to the Kyoto Protocol, does not rience is being shut down because the sup- However, the critics are not swayed, have coal no matter what the price, thus the touch the CO2 issue, but there has been ply is not there.” arguing that investment in clean-coal tech- “free ride” for consumers may be over. movement in Congress to regulate CO2 — nology is a diversion of money from estab- While adopting a coal-friendly stance, a threat that some analysts believe could Gas-fired plants built when gas cheap lished electricity supply sources that the Bush administration has also acknowl- kill one-third to one-half of the U.S. coal When natural gas was cheap and plenti- already meet climate change and environ- edged the environmental concerns by industry because there is no technology ful in the 1990s, North America embarked mental protection targets, such as wind introducing legislation targeting further available to remove CO2 from coal-fired on a wave of building gas-fired generating power. cuts in nitrogen oxides and sulfur dioxide plants. ● plants. At the nub of the debate in the United Now the pendulum has swung back, States is the extent to which coal can be a with fuel costs for gas generation as high factor in national energy security. as 4 cents per kilowatt-hour, compared The Department of Energy gives a with 1 cent for coal plants. The threshold strong vote of confidence by rating coal as price for gas production is estimated at $3 “one of the true measures of the energy per million British thermal units, barely strength of the United States.” half current gas prices and sufficient to The Bush administration’s energy strat- make coal-fired power a bargain. egy has endorsed that view by including “Two or three years ago we would have coal as a key element of the energy mix said sooner rather than later,” said Thomas and describing coal-fired generating plants Shockley, chief operating officer of as “the cornerstone of the United States’ American Electric Power Co., the largest central power system.” U.S. electricity generator, referring to the Adding to the momentum, a prelimi- likelihood of coal-fired generation shut- nary report on natural gas submitted to the downs. “But $5 gas pushed that out.” DOE by the National Petroleum Council Brushing off the tarnished environmen- promoted the goal of “alternative energy tal image of coal, Cox said coal-fired sources” for industrial consumers and plants can be “virtually as clean as a gas- power generation by opening the door to fired plant” by eliminating all sulfur emis- “greater flexibility in fuel-switching and sions. fuel choice.” Jim Dinning, an executive with Alberta- based utility TransAlta, said the term Still problems for coal clean-coal is not a misnomer, noting that It’s not all plain sailing for the coal 12 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● VANCOUVER, BRITISH COLUMBIA YUKON TERRITORY Yale options Dawson area property, Expatriate buys Atna’s to test high-grade, bulk tonnage gold Vancouver, British Columbia-based Yale Resources Ltd. announced its option stake in Wolverine on the Golden Revenue property in southwestern Yukon Territory, accessible by a secondary highway branching off of the Yukon Highway. MINING NEWS ny said in a release. “The outlook for In a May 17 press release, Yale said it is currently planning its drilling program xpatriate Resources says it has silver is also positive.” to test both high-grade and bulk tonnage gold occurrences on the property in June struck a deal with Atna Resources Logan exploration set aside and July. The company plans to spend a E to purchase Atna’s 39.4 percent minimum of $400,000 on the property in The 1,800-acre property interest in the Wolverine joint ven- “Changing market conditions now 2004, and has already obtained exploration ture in the Yukon Territory. The deal, if consists of three contiguous make it feasible to reevaluate Wolverine permits, according to Yale’s website. approved by regulators, gives as a stand-alone mine,” the company claim blocks, called Nucleus, The 1,800-acre property consists of Vancouver-based Expatriate 100 percent said. three contiguous claim blocks, called Revenue and Big Creek in the ownership in the precious metals Expatriate said it has resumed plan- Nucleus, Revenue and Big Creek in the Dawson Creek mining deposit and surrounding exploration ning and permitting of the proposed Dawson Creek mining district, the company district, the company said. properties. Wolverine underground test-mining and said. Under the terms of the agreement, exploration program to provide the addi- Two types of mineralization exist at the Expatriate will pay C$2 million in cash, tional information required to finalize Golden Revenue property. One is a vein structure with high-grade gold and vari- issue 10 million shares and 5 million the Wolverine portion of a bankable fea- able copper values. The second is gold stockwork and breccia zones with bulk- share-purchase warrants and provide a sibility study. tonnage potential. Ten different prospects have been identified to date, two of royalty on silver and gold production Expatriate said the Wolverine deposit which have some past exploration work, the company said. from the proposed mine. At current is “key to development of the Finlayson The Nucleus Zone contains a swarm of subparallel porphyry dykes that cover share prices, excluding royalty pay- an area 1,400 meters long and 500 meters wide. Drilling to date has been confined ments, the deal is valued at about C$6 district as a major base-precious metal to a 200-meter square area. The best individual diamond drill intervals include million. Atna will walk away with about mining camp.” 49.5 meters of 1.76 grams of gold per ton of rock, 36 meters of 1.36 grams of gold 11.7 percent of Expatriate. The company has been evaluating the and 57.76 meters of 1.32 grams of gold. The May 31 announcement “paves development of Wolverine in conjunc- High-grade gold structures were tested using a percussion hole drilling pro- the way for advancing the completion of tion with the Logan deposit in southern gram. The best intercepts included a 13.72 meter intercept grading 34.86 grams a feasibility study and development of Yukon. Expatriate said it intends to of gold per ton, 16.77 meters grading 4.58 grams per ton and 6.1 meters grading Wolverine as an important new silver- “expand exploration on its extensive 11.15 grams of gold per ton of rock. gold-zinc-copper-lead mine,” Expatriate claim holdings … concurrent with The Discovery Zone prospect hosts both high-grade veins and stockwork zones said. ongoing engineering studies and eco- with bulk tonnage potential, the company said. Three main vein structures have Wolverine contains about 75 million nomic evaluation of Wolverine.” been identified, but they are poorly defined and have not been systematically ounces of silver and 352,000 ounces of Exploration and engineering of the drilled with modern equipment and technology, the company said. High grades of gold, as well as large amounts of zinc, Logan deposit will be set aside until the gold and copper were reported in an old adit and in trenches. lead and copper, Expatriate said. evaluation of Wolverine is complete, the Yale can earn up to 70 percent interest in the property, subject to a 2 percent “Recent improvements in the zinc company said. net smelter return applicable to two of the three property blocks. concentrate markets and the rapid Expatriate is a base and precious —PATRICIA LILES, Mining News editor increase in selenium price has changed metals exploration and development the market outlook for concentrates junior with projects in Yukon, Nunavut, from the Wolverine deposit,” the compa- Ontario, California and Chile. ● PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 13

● JUNEAU, ALASKA State bonding considered for Kensington Alaska Legislature approves bill allowing up to $20 million in AIDEA bonding for southeast gold mine development

By PATRICIA LILES the IRS ruling on whether tax-exempt bonds Mining News Editor can be issued, AIDEA is seeking a cost reimbursable agreement with Coeur. That evelopers of the Kensington gold will require the mining company to pay for project in Southeast Alaska received a AIDEA’s costs incurred in the bonding solid vote of confidence from D approval process, McMillan said, which will Alaska’s state government, with near- cover the state’s due diligence review of the ly unanimous legislative approval of a bill project. that would allow up to $20 million in tax- COEUR D'ALENE MINES COURTESY exempt bonding for port and tailings “We contract with third party consultants impoundment facilities. to do that (due diligence),” he said. “If the The bill was passed by the Alaska bonds are issued, that cost is covered by the Legislature in early May and signed into law bonds. But if they do not go forward with the in early June. It’s the first step in a six-month bonds, (Coeur) will pay back our expenses.” to year-long process of approving bonds issued by the Alaska Industrial Development Kensington project details and Export Authority for Coeur d’Alene Coeur plans to build a hard rock mill and Mines Corp. in its development of the administration facilities in the Johnson Kensington hard rock mine and mill 45 Creek drainage, in the vicinity of the Jualin miles north of Juneau. Coeur has permit applications pending Mine, which is a little more than two miles with state and federal regulators to build an south of the Kensington deposit. A 12,000-foot tunnel connecting the “They have the capital to do the Jualin and the Kensington mineralized areas is also proposed, allowing milling facilities entire project — the only reason The camp at the Kensington gold project being developed by Coeur d’Alene Mines Corp. some 45 miles north of Juneau, Alaska. to be located further inland, out of view of they came to us is for the potential Lynn Canal. The Kensington Gold Project “This does not preclude Coeur starting Memorial Highway. Coeur plans daily bus that the tax-exempt bonds provide will create 300 construction jobs and will lower cost funds than the construction of the project themselves, and service between Cascade Point and Juneau, using our money in the form of the tax eliminating on-site employee housing in provide an annual estimated payroll and company’s internal funding.” —Jim exempt bonds for reimbursement for some camp facilities. benefits of about $16 million. The project McMillan, AIDEA’s deputy director of credit and of the costs,” McMillan said. “They have the AIDEA bonds may also be used in con- will also create more than 181 additional business development capital to do the entire project — the only structing the mine’s tailings impoundment. indirect jobs and result in $7.5 million in reason they came to us is for the potential Because the tailings facility would be regu- direct local purchases during construction, underground mine and mill facility, which that the tax-exempt bonds provide lower cost lated under the state’s solid waste disposal according to Coeur. would produce an estimated 100,000 ounces funds than the company’s internal funding.” permits, tax-exempt bonds could be used Reserves for Kensington are estimated at without AIDEA ownership, according to one million ounces of gold. of gold each year. The company’s current Bonds for port and tailings storage estimated cost for construction is $85 mil- Becky Gay, AIDEA spokeswoman. There are an additional 7.2 million tons lion, according to Coeur’s website describ- AIDEA bonds may be used to construct Coeur plans to store tailings in waters of of mineralized material, averaging .12 ing its final updated feasibility results for the port facilities, providing coastal access for Lower Slate Lake, keeping a minimum of ounces of gold per ton of rock. "Not all project. A final supplemental environmen- the Southeast Alaska project. Those bonds nine feet of water over the highest level of Kensington ore zones have been fully delin- rock. That, combined with planned tailings tal impact statement for Kensington, along require government ownership and avail- eated at depth and several peripheral zones dam raises, will ultimately create a larger with authorizing permits, is scheduled for ability of public use to meet Internal and veins remain to be explored," Coeur said Revenue Service tax-free status, McMillan lake and more habitat for wildlife, Gay said. release Oct. 29 according to the U.S. Forest on its website project description. "Coeur Service, the lead regulatory agency for the said. Coeur’s current development plans call Tailings will be transported from the mill to still views its interests in the district as hold- project. Coeur anticipates construction start- for port facilities at Cascade Point and Slate the lake via a 3.5 mile buried pipeline. ing up to five million ounces of gold." ing late this year, with completion and gold Creek Cove, about five miles from the pro- production expected in 2006. posed mill site. A marine terminal to receive Reimbursable agreement needed Cash costs to produce gold at AIDEA’s due diligence and bonding supplies and to ship ore would be construct- Now that the Legislature and the gover- Kensington are estimated at $195 per ounce, approval may not be completed before con- ed in Slate Creek Cove off of Berners Bay. nor have signed off on the bonding propos- a ccording to the company's final updated struction begins, noted Jim McMillan, Employees will be transported to the al, AIDEA has begun the process of feasibility results. The expected mine life is AIDEA’s deputy director of credit and busi- mine via ferry from Cascade Point, near the approval. approximately 10 years, for the initial one ness development. northern end of the Juneau Veterans In addition to seeking a letter regarding million ounces of reserves. ● 14 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

Companies involved in BRITISH COLUMBIA Alaska and northern B.C. mining industry poised for next boom, says PricewaterhouseCoopers’ study Canada’s mining industry British Columbia’s mining sector continued its five-year recovery trend last year and is on the brink of an Asia-fueled boom, according to an annual British Columbia min- AeroMap U.S. Golder Associates ing study conducted by PricewaterhouseCoopers. Anchorage, Alaska Anchorage, Alaska An increase in coal, copper, silver, gold and lead prices helped to push total indus- Contact: Holly Holmes, Marketing Contact: Bob Dugan, mgr. try net income up 166 percent in 2003, reported the study, which was released in May. Phone: (907) 272-4495 Phone: (907) 344-6001 The Mining Industry in British Columbia — 2003, an annual survey and assessment Fax: (907) 274-3265 Fax: (907) 344-6011 Email: [email protected] Website: www.golder.com of the mining industry’s overall performance, summarized the 2003 year-over-year Web site: www.aeromap.com Providing geotechnical engineering, financial information of British Columbia’s 13 producing mines and one smelter. It AeroMap provides geospatial infor- water resource, and geosciences serv- reported that the industry had a net income of C$285 million compared with C$107 mation about the earth utilizing ices in support of resource develop- million in 2002. land, airborne and satellite sensors. ment projects in Alaska and the Gross mining revenues were up by 3.5 percent to C$3.65 billion in 2003 over the Arctic. Arctic Controls 2002 figure of C$3.53 billion. Coal was the biggest player last year, accounting for 36 Anchorage, Alaska Judy Patrick Photography percent or $964 million of the British Columbia mining industry’s net revenues of $2.7 Contact: Scott Stewart, president Anchorage, Alaska billion. Phone: (907) 277-7555 Contact: Judy Patrick PricewaterhouseCoopers survey results found that cash flow from operations in Fax: (907) 277-9295 Phone: (907) 258-4704 Email: [email protected] Fax: (907) 258-4706 2003 was C$598 million, an increase of C$31 million or 5 percent from the C$567 mil- Web site: www.arcticcontrols.com Email: [email protected] lion cash flow from operations in 2002. And last year’s return on shareholder invest- Arctic Controls has been highly suc- Web site: JudyPatrickPhotography.com ment was 10.9 percent as compared to 4.1 percent reported in 2002. cessful as manufacturer representa- Creative images for the resource tives in the Process Control and development industry. Tempered by stronger Canadian dollar Instrumentation field. Lynden “Although 2003 was generally a positive year for the B.C. mining industry, the ben- Arctic Foundations Anchorage, Alaska efits of higher metals prices were tempered somewhat by the stronger Canadian dollar,” Anchorage, Alaska Contact: Jeanine St. John said Michael Cinnamond, senior manager for PricewaterhouseCoopers’ British Contact: Ed Yarmak Phone: (907) 245-1544 Phone: (907) 562-2741 Fax: (907) 245-1744 Columbia mining practice. “The global industry prices its products in U.S. dollars, so Fax: (907) 562-0153 Email: [email protected] a 1 cent change in the value of the Canadian dollar translates to a shift in gross revenues Email: [email protected] Web site: www.lynden.com for B.C. producers of C$26 million.” Web site: www.arcticfoundations.com Truckload highway connections, “The province’s mining industry seems to be finding its feet after some tough years Soil stabilization – frozen barrier and scheduled barges, intermodal bulk — higher metals prices are certainly helping and may lead to the re-opening of some frozen core dams. Foundations – chemical hauls, air freighters, domes- maintain permafrost for durable tic and international air and sea for- existing mines. Exploration expenditures, a must for long-term sustainability, were up high capacity foundations. warding last year and reached C$55 million province-wide and are expected to be in the C$100 million range in 2004,” said John Bowles, PricewaterhouseCoopers’ British Columbia Capital Office Systems MRO Sales mining practice leader. Anchorage, Alaska Anchorage, Alaska Contact: Leslye Langla Contact: Don Powell Exploration spending has been on the rise every year since 1999. If it breaks the Phone: (907) 777-1501 Phone: (907) 248-8808 C$100 million mark this year it will be the first time since 1996. Between 1980 and Fax: (907) 777-1515 Fax: (907) 248-8878 1990, when 23 mines opened in the province, an average C$162 million was spent on Email: [email protected] Email: [email protected] exploration in the province each year, he said. Asset management, systems furni- Web site: www.mrosalesinc.com Provincial minister of state for mining Pat Bell told the Globe and Mail that it is ture, project coordination, space MRO Sales offers products and servic- planning, systems delivery/installa- es that can help solve the time prob- important to move quickly to find and develop new mineral deposits while demand tion, furniture refurbishing, and relo- lem on hard to find items. from China and India is at its peak. cation/remodel services. “We’re sitting on a 15-year window of opportunity that many of us may never see Northern Air Cargo again,” he was quoted as saying. Chiulista Camp Services Anchorage, Alaska Anchorage, Alaska Contact: Nick Karnos —MINING NEWS Contact: George B. Gardner Phone: (907) 249-5161 Phone: (907) 278-2208 Fax: (907) 249-5194 Fax: (907) 677-7261 Email: [email protected] Email: [email protected] Web site: www.nac.aero EASTERN INTERIOR ALASKA The 100 percent Alaska Native NAC moves nearly 100 million owned and operated catering com- pounds of cargo on scheduled flights pany on the North Slope, catering to 17 of Alaska’s busiest airports. Freegold buys Tolovana gold project and housekeeping to your tastes. Totem Equipment & Supply Freegold Ventures Ltd. said June 16 it has entered into an agreement with Nautilus CN Aquatrain Anchorage, Alaska Alaska Inc. that allows it to acquire Nautilus’s rights to a 20 year lease on the Anchorage, Alaska Contact: Mike Huston, vp Tolovana Gold property in the Fairbanks mining district of eastern Interior Alaska. Contact: Laurie A. Gray, agent Phone: (907) 276-2858 The lease may be extended for an additional 10 years on the same terms, Freegold Phone: (907) 279-3131 Fax: (907) 258-4623 said. Toll free: (800) 999-0541 Email: [email protected] Fax: (907) 272-3963 Web site: www.toteminc.com The Tolovana Gold property lies southwest of the historic Cleary Hill Mine and CN Aquatrain has provided Alaska Totem Equipment & Supply supplies will form part of the Golden Summit property under the Freegold/Meridian Joint with dependable access to Canadian light, medium and heavy equipment. Venture, Freegold said. and Lower 48 markets for 38 years. Specializing in temporary and perma- Previous drilling on the Tolovana property “intersected high grade gold values in nent heating solutions. intrusive and associated metamorphic rocks. An extensive hydrothermal system is present on the property with mineralization open to the east, west and to depth,” Freegold said. Exploration is expected to begin within the next month. Under the terms of the agreement Freegold will assume all of Nautilus’s obliga- tions under the lease, which include making annual payments of $1,000 per month for first 23 months, increasing to $1,250 per month for months 24 to 48, and increas- ing to $1,500 after the 49th month and for duration of the lease, Freegold said. The property is subject to a sliding scale NSR as follows: 1.5 percent NSR if gold is below $300, in the event the price of gold is between $300-$400 a 2.0 percent NSR is in effect. In the event that the price of gold is above $400, the property is subject to a 3.0 percent NSR. In addition, Freegold made a payment of $7,500 on signing and will issue 400,000 shares on regulatory approval and an additional 200,000 shares within 30 days of a minimum 200,000 ounce mineral resource being calculated on property. This clause is in effect for a period of five years from the date of the agreement, Freegold said. The agreement is subject to regulatory approval. Cleary Hill results Freegold and joint venture partner Meridian Gold Inc. expect to have the final check assays and metallic screen assays from drilling in the Cleary Hill Mine area in the next week, Freegold said June 16. The six holes were aimed to “intersect the down dip extension” of the Cleary Hill Mine. PETROLEUM NEWS • WEEK OF JUNE 20, 2004 NORTH OF 60 MINING 15

● CHANDALAR, ALASKA Little Squaw releases independent report Geological analysis suggests potential bulk tonnage deposit, placer mining opportunities on far northern Alaska property

By PATRICIA LILES Mining News Editor

ittle Squaw Gold Mining Co. released results in early May from an independ- L ent geological analysis of the compa- ny’s holdings in the Chandalar Mining district, which include both lode and placer prospects. Recommendations for future lode explo- ration includes targeting a potential bulk tonnage deposit, based on including lenses of multi-ounce gold quartz veins with aurif- erous splays and subparallel, sheeted quartz vein systems. Placer development recommendations suggest targets in the lower Big Squaw Creek and the Little Squaw Creek valleys, which could contain up to 300,000 ounces of gold, according to the company’s May 3 press release. Little Squaw commissioned Pacific Rim Geological Consultants Inc., of Fairbanks, to analyze the historical database for the Chandalar area property and to complete an independent report and recommendation. Pacific Rim’s report “offers a scientific basis

“The long-term key to the and 425 acres of patented federal land, vide funds for an engineering study of a pio- Consultants Thomas Bundtzen and economic success of the Chandalar which covers the main gold-quartz lodes and neer gravel road. James Barker reviewed historical data to mines is going to be realization of the principle placer deposit. About 13.4 produce their analysis. Little Squaw’s lode road access. The most practical square miles of land is staked in the district, Technical report released gold mineralization is “orogenic, mesother- route for consideration is the 61- mostly north and east of Chandalar Lake. Pacific Rim’s report is the first ever ana- mal, low-sulfide deposits hosted in shear lytical independent technical report conduct- zones that have strike lengths of at least four mile long Coldfoot to Chandalar Seeking winter trail upgrade to road Lake winter trail.” —Richard Walters, ed on the property and the mining district, Access is by air or by winter trail, from according to Walters. president, Little Squaw Gold Mining see LITTLE SQUAW page 16 the Dalton Highway east to Chandalar, a route over which the state has announced its that verifies the high quality of its Chandalar intent to file a quiet title action for the unen- property as an exploratory gold prospect cumbered right of way, Walters said. that could well contain a major gold The big story is that the RST 2477 trail deposit,” Little Squaw said in its press from Coldfoot into Chandalar (No. 009) is release. number one on the state’s list for road devel- Richard Walters, president of the recent- opment, Walters said. ly reorganized company, said current plans “The long-term key to the economic suc- for the Chandalar property in 2004 will be cess of the Chandalar mines is going to be minimal, “nothing more than claim mainte- realization of road access. The most practi- nance this summer — that is unless we cal route for consideration is the 61-mile accomplish an equity financing (private or long Coldfoot to Chandalar Lake winter public) or secure a joint venture partner (one trail.” of the big gold companies).” Connecting with the Dalton Highway Little Squaw is working on both options, would open up already platted subdivisions he added, and has been in serious discus- and trade and manufacturing sites around sions with two majors. Walters put together Chandalar Lake to development, he added. a deal last summer to acquire the Chandalar The trail crosses no conservation units, mining district property, with the intention staying mostly on state and state-selected of putting Little Squaw’s gold holdings back lands. Heavy mining equipment has been into production. Little Squaw holds about freighted over the route since the late 1950s, 8,200 acres of mining claims on state land, and Little Squaw has requested the state pro- 16 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 20, 2004

● FAIRBANKS, ALASKA continued from page 15 ommend an initial $1.5 million work pro- gram that would jointly target a first-phase LITTLE SQUAW appraisal of both placer and lode deposits. Potential exploration prospects are miles, widths of up to 400 feet and vertical numerous on the property, where gold was Exploration, placer extents of at least 1,600 feet,” according to first discovered on Little Squaw Creek in the report. 1905. Past production in the district “There are at least four, parallel, quartz- exceeded 84,000 ounces, Walters said. sulfide-vein-and-shear zone structures that mining activity up Identified lode gold resources are more control the past productive Mikado, than 17,000 tons, with an average grade of Eneveloe, Summit and Little Squaw gold 1.5 ounce per ton, for 26,493 ounces of Permits sought by exploration, placer mining operators increase deposits, and more than 20 additional lode gold. gold prospects, the latter of which have Walters estimates there is “near-surface by 43 compared to 2003, state geologist predicts 17% increase received very little exploration work.” potential for more than one half million By PATRICIA LILES The report also analyzed placer occur- ounces of high grade on the six main “Last year, a lot of people were Mining News Editor rences on the property, recommending structures, as well as multi-million ounce just treading water — continuing development of a gold placer operation potential that could come with deep explo- lacer mining and lode exploration capable of producing 15,000 to 25,000 to submit their application but not ration of them and some nine other known activity in Alaska is picking up this actively mining. This year, there ounces of gold per year. The authors rec- veins.” ● P year, according to applications filed are many more people planning to with the Alaska Department of Natural Resources. do some serious mining.” A total of 299 permit applications have —Brent Martellaro, geologist with Alaska been filed with the department’s Division Department of Natural Resources, Division of of Mining, Land and Water in 2004, an Mining, Land and Water increase of 43 applications compared to the number filed in 2003, according to “It’s encouraging that things are pick- geologist Brent Martellaro, in the depart- ing up for some people,” he said. ment’s Northern Regional office in “Hopefully gold prices will stay in there.” Fairbanks. Placer mining in Alaska has dropped “We’re projecting (the number of per- substantially in recent years, mostly due mits filed) it will be 17 percent higher. to falling gold prices in the late 1990s and We’re on target to see about 360 applica- early 2000. In 1993, 196 placer mines and tions by the end of the year,” Martellaro one lode mine produced 191,265 ounces told Mining News on June 7. of gold, worth $68 million, according to Placer miners and hard rock explo- the 1994 Alaska Mineral Industry report. ration companies using heavy-duty equip- In 2002, three large hard rock mines and ment must complete an annual placer about 50 placer mines produced 562,094 mining application to receive permission ounces of gold in Alaska, worth $174.3 from the state for their activities. million. Exploration activity that does not use heavy equipment, such as soil sampling, Claim staking up dramatically geophysical surveys or even suction A precursor to exploration and mining dredging, does not require the annual per- activity is claim staking, and the depart- mit. ment reported dramatic increases earlier The one year permit cost is $100, this year, work that began in earnest in although companies can file multi-year 2003 and continued into early 2004. applications for ongoing programs, for up Hot spots for claim staking included to five years. Multi-year applicants pay a the Pogo area northeast of Delta Junction $100 fee the first year, then $50 for each in Alaska’s Interior, the Denali block just subsequent year. north of the Alaska Range near Paxson and the Pebble area, northwest of Iliamna Many more people mining this year on the Alaska Peninsula in Southcentral The recent increase in annual applica- Alaska. tions doesn’t fully reflect the increased Department records indicate those activity on Alaska’s mineral prospects, three lode prospecting areas make up Martellaro said. 903,240 acres of active claims, equal to “Last year, a lot of people were just 1,411.3 square miles of ground. That’s treading water — continuing to submit roughly one-third of the total amount of their application but not actively mining. land in Alaska staked for mineral explo- This year, there are many more people ration and development. planning to do some serious mining.” In 2003, 507 square miles of state and In addition, the increase in applica- federal land were staked, about double the tions is accompanied by a number of new amount of claim staking in 2002. (See operators submitting plans, Martellaro April 18 issue of Mining News.) ● said.