's Energy Resources

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Gene Rutledge Alaska R~sources . s Y' & lnfonnauon SefVlCC TJ Anchorage, Alaska 163.25 .A4 R87 1985 Tools of the E h. . t I·""'--,- f k A E . ac 1s an 1n egra part o your wor . t xecut1ve Travel, our tools are organization and the ability to Tirade get the job done. We specialize in meeting all of your travel needs, from booking single flights to planning a complete itinerary-with all the-nuts and bolts thrown in at no cost to you. ARLIS . . Alaska Resources Executive Travel Serv1ce Libracy&Jn«n:ma:UO~:,Servtces Anchorage: (907) 562-2324 Anctw~:~'~ka Prudhoe Bay: (907) 659-2502 Fairbanks: (907) 452-3285

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. '. : .- ' .. -..: ~ ' Gene Rutledge ARLIS Alaska Resources Library & Information SerVices Anchorage, Alaska "An 80 by 35 mile area on the North Slope contains at least 60 billion barrels of original oil in place, less than half of which is in the Prudhoe Bay and Kuparuk River lields."

ARCO 1984 Annual Report

© 1985 by Wolfe Business Services 6930 Oakwood Anchorage, Alaska 99507 (907) 349-4979

All rights reserved. First printing.

Printed in the of America.

International Standard Book Number: 0-932571-00-X

~Library of Congress Catalog Card Number: 85-51155 ' TABLE OF CONTENTS

Title Page ...... i

Table of Contents ...... iii

Preface ...... v . .. 0 verv1ew ...... VII

Part I: Hydroelectric Power ...... 1.1

Part II: .Coal ...... II.1

Part III: Wind and Geothermal ...... 111.1

Part IV: Natural Gas ...... ~ ...... IV.1

Part V: Solar and Alternate Energy ...... V .1

Part VI: Oil...... VI.1

Note: Each part has a 1985 update followed by the verbatim text of "The Alaska's Energy Resources'' monthly supplement of the Journal of Commerce, in­ cluding the original page numbers.

ARLIS Alaska Resources Library & Information SerVices 1\nchorage,Alaska lll ··~· ALASKA REGION ENERGY RESOURCES

PLANNING PROJECT {PHASE 1)

ALASKA'S ENERGY RESOURCES SUMMARY CHAPTERS b.nm land Mas$ (16.2%)

Population (0.15%)

10 20 30 40 50 60

Percent Resource in Alaska compared with· USA

OCTOBER 1977 PREFACE

The Alaska Regional. Energy reduce them in size from tabloid to Resource Planning Project 8 Yz by 11. To the extent possible (ARERPP) team compiled and the text is verbatim; however, the published five volumes on Alaska's number of pages was reduced by energy resources during the 1976 to editing out some advertisements so 1979 time period. The content of that sometimes two AER pages are these publications covered not on­ combined into one. Since the six ly the quantity, quality and loca­ supplements were published from tion of Alaska's energy resources; January to June, 1984, the decision but also the issues associated with was made to update each supple­ moving the energy resources from ment to reflect the May, 1985 where nature deposited them to an publication date. end~user. This project began in the It is recognized that while the Office of the in 1976 reduction in size of the supplements with funding from the federal makes handling much easier, it also Department ofEnergy. makes reading more difficult, There was serious concern on my especially for a few of the maps part as project leader that the peo­ and tables. A complete set of the ple and organizations interested in six original supplements has these volumes for future reference therefore been collected and bound would not be able to obtain copies and given to the Alaska Resource because the publication budget was Library for filing with the limited. The decision was made to AHERPI' fiw volunw:-<. advertise the volumes prior to This booklet is not a formal publication so ·that for a very scholarly publication. It is design­ modest cost all those who wanted ed to be a very useful reference that copies could obtain them. Many re­ will easily fit the bookshelves of quests were received. engineers, scientists, economists, After publication it became evi­ architects, researchers, politicians, dent that the demand for the students and many others. The volumes was much greater than ..., many prepublication requests for prepublication requests indicated. the book indicate that others also Many requests went unfilled. For­ believe that this book will be a tunately, copies of all five volumes useful addition to their book­ are available for use in the Federal shelves. Building at the Alaska Resources It should be noted that the AER · Library. supplements to the Alaska Journal For a number of years there was of Commerce were written and a desire on my part to trim these compiled by the undersigned; volumes down to a more manage­ however, that does not mean a able size and publish the contents 1000Jo control of all the words by in a format acceptable to more any means. For example, the readers. Such an effort was in­ cutlines under the photographs and itiated in January of 1984 in a sup­ the headlines of the text were usual­ plement to the Alaska Journal of ly selected by others. It was Bert Commerceand ended June, 198~. Tarrant, editor and part owner of The six monthly supplements, en­ Pacific Rim Publishing Company, titled "Alaska's Energy Resourc~ who coined the words "energy es" (AER), covered hydroelectric dean'' in the first issue of the AER power' coal, wind and geothermal, series, an unexpected, somewhat natural ·gas, solar· and oil. Even accurate, but certainly flattering though several hundred extra title. copies were printed· for each sup­ plement, it soon became evident ·again that demand was greater tha~ anticipated. · I The decision was made to com" pile and edit the supplements and Gene P. Rutledge

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Prior to the publication of Alaska represents an area tar­ the five volumes of the Alaska geted by the oil industry with Regional Energy Resources many millions already spent Planning Project (ARERPP) in on exploration and many, 1977-1979, it was widely known many more millions planned. that Alaska was blessed with The ARERPP report indicat­ huge quantities of energy re­ es that the measured reserves sources. There· was a need to of oil onshore is 32.06 percent. explain to a reader the magni­ The percentage changes year tude of our energy resources to year, butnotethatitis twice compared with something that that of the land mass. could be easily understood. To The Alaska onshore gas re­ gain a proper p~rspective, the serves are reported to be 15.77 ·decision was made to compare percent that of the entire Uni­ our resources and reserves with ted States. This percentage is the rest of the United States about the same as the land and the World. mass (16.2 percent). For comparison some per­ The coal resources are report­ centages are given below. The ed to be 37 to 63 percent of the land mass of Alaska is 16.2 entire U.S. Note carefully that percent of that of the entire the ARERPP report switched United States. A note of cau­ from "reserves" to "resources" tion with respect to this com­ for the coal comparison. To parison is needed. Alaska has move from the term "resource" huge offshore areas because of to "reserve" requires the ex­ such an enormous coastline. penditure of exploration funds The precise square miles invol­ to quantify the quality and ved not only is a function of location of the resource, i.e. the definition - three miles out boundary and depth, and re­ or 12 miles out or something source companies do not make else - but also the location of ... these up front costs until a the United States/Soviet Union market for the resource is in Border. sight. Work is now underway to The coal "reserves" in Alaska resolve the border difference of as compared with the entire opinion. Since sedimentary U.S. are very small. The com­ basins are beneath some of the plete definition of coal "re­ offshore areas in dispute, the serves" and "resources" is border issue could come to a given in the ARERPP Phase I, head in the near term. Very Volume 11, p. 139-146. All too few people in the Lower-48 real­ frequently the term "reserve" ize that the U.S. has a signifi­ is used when the term "re­ cant offshore border dispute source" is proper. In an over­ with the Soviet Union. Indeed, simplification, you can go to very few in the Lower-48 realize the bank and get a loan on an how close the land mass of energy "reserve" but not on an Alaska is to the land mass of energy "resource." the Soviet Union - i.e. Little The hydroelectric potential ·· Diomede Island in the Bering of Alaska is 26 percent of that Straits is only 2 1/2 miles by of the entire U.S. In 1978 less water from the Soviet Union's than 1 percent of this potential Big Diomede Island. The sed­ had been harnessed as com­ imentary rock area (oil is found pared with 39 percent of the in these areas) of offshore Alas­ entire U.S., and 13 percent for ka is 57.67 percent compared, the world. Since 1978 many with the entire U.S. 1 hydroelectric plants have gone This percentage is extremely on-stream and these are iden­ important because offshore tified in the section on hydroe-

Vll I I I

· lectric power. note to a table throws up a flag .· .. While population is not con~ ofcaution, "This 1980 estimate . sidered an energy resource; it for Alaska is now (in 1983) is very significant that the pop-· known to be far too large." ~r ..· . \dation of Alaska is only 0.15 Hydroelectric Power: percent of that of the entire During the past ye~ the Alaska ·U ;8, The fossil reserves and Power Authority, funded by resources in Alaska are h\lge the State·of~laska, has been in total and also large per the lead organization in con­ square mile, but the number of .struction ofhydroelectric power people, or energy users, i!!l in~ - plants. From Tyee in Southeast credibly small. Just the oppo~ to Terror near Kodiak, on­ ·site is true ofJapari, Korea and stream opera~ions have been Taiwan, countries in need' of· . successfully achieved. energy a:nd .separated from. Part 1 of the 1985 update -Alaska only by water " a very gives both a hydro history and economical·. mode -of energy recent accomplishments of the transportation. Indeed, the_ Alaska Power Authority, the Pacific Rim countries have Corps of Engineers and the been (LNG to Japan) a.nd·~re Municipal Electrical Utility at (coal to Korea), energy markets Sitka. · for Alaska. :In the future these · The Alaska Power Adminis­ countries could become hqge tration, afederal agency, under .energy. markets for Alaska. Robert Cross continues its long Uranium was addressed in · history of serving economical the ARERPP volumes, Explo­ hydroelectric power to Juneau ~-. ration for uranium ha8 occurred and Anchorage residents. .throughm~ot the state. Mining The coming year will con­ · and: shipment has occurred tinue to see· key decisions on from Bokan Mountain, near Bradley, Susitna and long term Ketchikan, tQ the Lower-48. A power sales agreements with ]. . nuclear power plant, now de­ members of the Four Dam Pool. commissioned, operated by the U sibelli Coal Mine has pro­ army at Fort Greely has pro­ duced more than 800,000 short duced power.The Alaska Power tons in the Nenana coal field Authority is not permitted to for in-state use over a number examine' the nuclear option by "" ofyears;however,inearly1985 statute. The January to Jurie shipments were made to Sew­ 1984 AJKiAERserles did not ard and on to Korea to open for update the ARERPP study. . ·the first time important for­ · Peat was not examined in eign Pacific Rim markets. the ARERPP st\ldybecause of Exploration and/ or drilling ·lack ofprojectfuriding: Another is underway by various groups study, "Peat Resource Estima- in the following coal fields: . tion in Alaska,'' was prepared Beluga, Bering River, · by EKONO and Northern Creek, -Chignik-Herendeen Technical Services and pub­ .Bay, Jarvis Creek, Matanuska, lish~ in Augul!lt; 1980. On page Cape Beaufort and Yentna. ·. six the .following staterilent is With a supply of coal of low made, "Byfarthelargestdom­ sulfur content that can supply estic resource of peat is found much of the world markets for .· within the State of Alaska. centuries, Alaska is poised to Excluding permafrost a:~:eas, wing its way deeper into inter­ · the estimate shows 51 percent national markets. of the nation's peat is in J\l~s- Wind and Geothermal: ka." · · . ·. · ·· Several-Alaskan communities In the concluding statement utilize geothermal waters for on page 56,"Alaska does ind~ space heating; however, no contain a considerable fuel pe~t power plants have been con­ resource." The book,"Energy f. structed using geothermal Alaska", by Dr. Neil Da~s. energy in Alaska and no serious gives an excellent summaey of plans are underway at this Alaska's peat resources. Afoot- time to do so. .

IX The St. Paul pro­ Pacific is continuing the role posal is under consideration of getting the buyer and seller by the Alaska Power Author­ together as well as orchestrat­ ity (May 2, 1985); however, the ing state legislation that will recent significant action on permit the state to lease land wind energy in Alaska is the associated with the gas pipe­ U.S. Navy contract at Adak line. Sixteen companies are in­ which has been let. The Navy volved with the effort with six is buying kilowatt-hours, not from Korea. hardware. This project war­ Solar and Alternate Ener- rants tracking. gy: Solar and alternate energy Natural Gas: Anchorage _ option~ are more attractiv~ to and other Southcentral energy ~ potential customers dunng consumers are still using low ~~~- -:;>~~ times of increasing oil pri~es. priced natural gas for both ~ ~~- Such was not the case dunng space heating and electricity. ~--.~~~- · the past year. Most of the low priced gas Pf'21!:Ait ~~';.., .....:..~ Nevertheless, technological which Chugach Electric now :.~ --~~- • _,.,'_:·-: _.:,:~ ~~::; ~dvances are being ~~de to uses will be consumed by 1994. _· .. > , _ •··~ -~· ~ Improve the acceptability of Also, the DepartmentofNatu­ ~ ·.d-..-. ____ ,_.~ the options. For example, an ral Resources increased the Alaskan firm began commer­ price of Royalty Gas April15, cial production of HEAT MIR­ 1985. ROR in early 1985 which has The action will have an ad­ favorable weight and light verse effect on about half the transmission properties. people in Alaska. Enstar com­ Bioenergy programs are also pleted a one hundred mile, underway in the State Office twenty inch gas pipeline from of Energy. Beluga to Anchorage which Oil: Everyone knows that gives Anchorage two sources Alaska has the largest produc­ of natural gas. ing oil field in the United States With respect to the huge (Prudhoe Bay). Not everyone quantity of Prudhoe Bay natu­ knows that Alaska has the ral gas, the Alaskan Northw­ second largest oil field in the est Natural Gas Transporta­ U.S. (Kuparuk). tion Company has now received The "easy-to-get" oil in Cook approval of fourteen "compre­ Inlet, Prudhoe Bay and Kupar­ hensive plans" plus sections of uk will hopefully be followed a 30-chapter pipeline design by the "very-difficult-to-get" oil manual by the Office of the in the marginal _oil fields of Federal Inspector. Endicott, Lisburne, Milne The $50 billion project is on Point, West Sak, Seal Island, hold until adequate financing Mikkelsen Bay and Gwyder is obtained and the Lower-48 Bay. natural gas market improves. While the cost per barrel of Some of the above studies were oil recovered will be very high approved as recently as April for the oil companies, the sup­ 16, 1985, and those not yet port industry will benefit by approved will be completed fol­ supplying more products and lowing remobilization of the services. project. - Of great interest to Alaskans Another gas pipeline effort is the statement given below, is underway by Yukon-Pacific which was published in the Corporation f which believes ARCO 1984 annual report­ that the foreign Pacific Rim "An 80 by 35 mile area on the countries are a more likely fut­ North Slope contains at least ure market than the Lower-48. 60 billion barrels of original oil Two joint pre-feasibility in place, less than half of which studies are on schedule - one is in the Prudhoe Bay and with Japan and one with Korea. Kuparuk River fields." Atlantic Richfield Company will do the engineering part of the capital cost estimate. Yukon

X HYDROELECTRIC POWER ... 1985 UPDATE

A number of years ago a The findings were encouraging, major driving force with respect there was little likelihood for ·to hydroelectric power devel­ federal funding of the Susitna opment in Alaska was the fed­ project. eral government. The construc­ State feasibility studies were tion arm was, and is, the U.S. initiated in 1979 to include all Army Corps of Engineers. The the engineering, economic and operating arm was, and is, the environmental studies neces­ Alaska Power Administration. sary to file a FERC license. The Eklutna project near These studies were completed Anchorage and the Smetti­ by Acres American in 1982 sham plant near Juneau have and in February 1983 the state's served Alaskans for many license application for the Sus­ years. itna project was filed. FERC Today the major driving force expects to issue a decision on for hydroelectric power in the application by November Alaska is the State of Alaska 1987. through the Alaska Power The proposed Susitna hydro­ Authority. The goal of the electric site is located on the AlaskaPower Authority, which upper reaches of the Susitna was created in 1976, is the River north of Talkeetna. The orderly and economic develop­ proposed project consists of two ment of hydropower, fossil dams, the first being the Wat­ fuel, coal, geothermal and other ana phase with a generating electrical energy resources - capacity of 1020 megawatts, except nuclear generation- so followed by the Devil Canyon they will contribute in a sub­ phase with a 600 megawatt stantial way to the economic maximum generating capacity. vitality of the state. Power would be delivered While some electrical utili­ .... through 345 kilovolt transmis­ ties in the communities in sion lines to the Fairbanks and Alaska (private, co-op; munic­ Anchorage load centers via the ipal) are independent of these existing Anchorage-Fairbanks two APA's, most of the activ­ interti e. ity currently underway on hy­ The project will serve the droelectric power involves communities of the railbelt funding from either the federal from Fairbanks to the Kenai government or the state gov­ Peninsula where over 70 per­ ernment. cent of the state's population SUSITNA currently resides. Awareness of Susitna's en­ Existing railbelt generating ergy potential spans a number capacity in 1985 for this region of decades, beginning in the is: Simple combined gas - 664 late 1940's. The first definitive MW; Combined cycle gas- 317 recommendation on Susitna MW; Coal-steam- 70 MW; and was made by the Bureau of Hydro - 46 MW for a total of Reclamation in 1961, with their 1097MW. proposal for a four-dam system. By 1993, when Watana will But it was not until the mas­ still be four years from com­ sive proposed mercial operation, projected for the Yukon River was aban­ railbelt generating capacity is doned that a project on the expected to drop to 796 meg­ upper Susitna was revived in awatts unless new projects are earnest. In 1975 the Corps qf built. This is due to retirement Engineers completed a reasses­ of gas and coal-steam generat­ sment of the Susitna project ing units .that have reached and recommended a two-dam their 20 or 30 year life. hydroelectric project. Curre:r:ttly energy consump-

1.1 tion by railbelt communities is trative hearings · November, ley Lake $5 million for FY '82 in the range of 3,000 gigawatt 1985 and $10 million for FY '83. By hours (Gwh) per year. By 1993 • Need for power initial deci­ joint resolution, the 1981 state the utilities' forecast for energy sion· January, 1986 legislature requested Congress demand will be over5,000 Gwh; • Environmental adminis­ p-ermit the Corps to design and by the year 2010 the demand is trative hearings· April, 1986- construct the Bradley Lake pro­ expected to be between 9,000 0ctober, 1986 ject. and 10,000 Gwh. The Watana • Environmental initial de­ The '81 legislature pledged dam would initially supply cision· April, 1987 that financing and funding 2,900 Gwh. Devil Canyon would • Order drafted by FERC would be the sole responsibil­ add another 3,340 Gwh. Office of General Counsel · ity of the state and the Alaska Total project costs in 1983. November, 1987 Power Authority with the stip­ dollars are $3.51 billion for • FERC license issued· Nov­ ulation that the project be cat­ Watana and $1.53 billion for ember, 1987 egorized as an APA project. Devil Canyon, totaling $5.04 Design & Construction: The 1982 legislature autho· billion. This is a reduction in • Conditional power sales rized the development of the total projects costs from $5.37 agreements completed June, project by APA through House billion due to design refine-' 1985 Bill9. The '82legislature also ments for both dams. Details • Final design initiated· July, appropriated an additional $3 of these refinements were sub­ 1985 million for project development. mitted to FERC in 1984; • Construction of Watana Althouth state authorizing The 1984 legislature autho­ access road initiated· Novem· legislation and funds were rized construction of Watana ber,1987 available the federal govern· in SB 411 atacostof$3.75 bil­ • Watana dam construction merit apparently was unable lion. To support planning, de­ initiated· May, 1988 to request state funds and the sign and construction of the • Commercial operation of Corps was limited by the fed­ project the 1984legislature also Watana unit 1 -1997 eral funds then available. appropriated $100 million for • Devil Canyon rail spur/ac­ Faced with a lack of pro· FY 85 and $200 million per cess road construction · 1995 gress on the part of the Corps year through FY 91 for a total • Devil Canyon on line· 2002 and a concern by the APA that of $1.5 billion. An additional the project was not optimilly $32 million was allocated to BRADLEY Bradley Lake has been rec­ designed for the least reaso· support the FERC licensing nable cost and best schedule, process. ognized as a prime hydroelect­ ric site for many years and APA's board decided Oct. 22, SUSITNA TIMELINES was authorized by the U.S. 1982 that the power authority • Alaska Power Authority Congress as a federal project should take the steps neces· (APA) assumes in the Flood Control Act of sary to seek FERC licensing project from the U.S. Army 1962. The project's economic for the project. Corps of Engineers · 1979 feasibility diminished when Stone & Webster Engineer· • Feasibility study conducted abundant discoveries of natu­ ing Corp. was selected to com· by AcresAmerican-1980-1982 ral gas on the Kenai Peninsula plete the preliminary design • License application filed created a more inexpensive for the FERC license applica· with the Federal Energy Regu­ means of power generation. tion. The power authority sub­ latory Commission (FERC) · The subsequent reduction in mitted the Bradley license in February,1983 Kenai Peninsula gas reserves April1984 and it was accepted • Revised license information and increase in natural gas by FERC in June. filed with FERC ·July, 1983 prices resulted in the determi­ In February 1985 FERC issu­ • License application accept­ nation that Bradley Lake was ed a supplemental DEIS on the ed by FERC ·July, 1983 a feasible hydroelectric project. project which recommended License Procedures: This determination was formal­ Bradley Lake as the·preferred e FERC Draft Environmen­ ly made by the Army Corps of alternative for power genera· tal Impact Statement (DEIS) Engineers in 1978. tion on the Kenai. A final im· released . May, 1984 ' The Corps started prelimi· pact statement is expected in • APA DEIS comments sub­ nary engineering activities in September 1985. mitted to FERC · A:ugust, 1984 1978 and published a General State authorization for the • FEIS released by FERC · Design Memorandum in Feb· project was approved in 1984 September, 1985 · ruary 1982. The final Envir­ with SB 411 for a construction iFERC orders need for power onmental Impact Statement cost of$300 MM in 7/83 dollars administrative hearings· Sep­ was published by the Corps in The '84legislature also pass­ tember, 1985 August 1982. ed Senate Bill409 establishing • FERC orders environmen­ State funds were first appro· a continuing appropriation of tal administrative hearings· priated for Bradley Lake in $50 million a year for four years October, 1985 1979 for $80,000. In 1981, the for the equity investment in, • Need for power adminis- legislature appropriated Brad- and rate stabilization for, the

1.2 /i"~ Bradley Lake hydroelectric The Swan Lake hydroelect- (Eastern Prince William project. ric project is 22 MW capacity. Sound) ~ Construction on the project The project was acquired by Interim feasibility report could begin in May of 1986 Alaska Power Authority in completed. Limited funding for with commercial power on line May 1982. Commercial opera- FY 85 will allow a re-evaluation 'I.e in 1990. tion began May 1984. of economic and financial par- TERROR TYEE LAKE HYDRO ameters. Includes Power Creek, Silver Lake, Cordova-Valdez :..~ On March 26 the Alaska Pow- (Southeast Alaska 40 miles ~)· er Authority and their consult- Southeast Wrangell- T /L, and waste heat. ~ ing engineers performed the Petersburg) GRANT LAKE HYDRO ·t" final inspection of the Terror The Tyee hydroelectric pro- (Kenai Peninsula near '11 Lake Hydroelectric Project lo- ject includes: installed capac- Seward/Moose Pass) ;J cated 25 miles from Kodiak. ity of20 MW (expandableto30 Draft feasibility report dis- • . The project will provide 20 tributed March 1983. Release ~. MW); 73 miles of 138 KV, over- ~ MW of power to the Kodiak head transmission line; 12 cir- of final report pending. Capac- ~~,:. Electric Association with dis- cuit miles of 138 KV, oil-filled, ity would be 7 MW. fL tribution to the city of Kodiak submarine cable; three substa- KING COVE and surrounding area. tions, and one switchyard, all l· (Alaska Peninsula, East · During the initial testing and energized at 69 KV. Commer- ofColdBay)

~\::, commissioning procedures, fre- cial operation since May 1984. The contractor's report on quency regulating difficulties ATKA this small hydro project was were encountered and resolved (Atka Island-in the completed in 1982. Findings ~· through the efforts of the equip- Aleutian Islands) and Recommendations will be D ment manufacturers assisted The feasibility study on this available the winter 1985. ·:C.' by APA and its consultants. small hydro and waste heat is Design/construction decision '~ With resolution of the prob- to be released spring 1985 by pending. t! ::! lems, which are not unusual the Alaska Power Authority. PELICAN HYDRO ~ with new hydro projects, Ter- BLACK BEAR LAKE (Chichagof Island) g ror Lake is now capable of HYDRO Hydro study report completed s~pplying Kodiak's current "~, (Southeast Alaska, Prince in February 1983. Cost estimate load in a stand alone mode and of Wales Island, Craig, updated, fall1984. is well within industrial stan- Klawock, Hydaburg and dards for hydroelectric power. WEST CREEK HYDRO Thorne Bay) (Southeast Alaska near April 1 marked the day the The Black Bear Lake hydro- project went into commercial Skagway) electric project involves an Hydroelectric project with in- operation. The power sales ag- intertie of four commm;Uties reementbetween KEAandAPA stalled capacity of 4.5 to 6.0 and a two stage 6 MW capacity megawatts. Feasibility study was signed wherein KEA will with an initial stage of 3 MW. buy power from the facility on completed December 1982. Pro- Revisions to the feasibility ject on hold pending improve- an interim basis at 2.64¢/kwh study are underway. fbr debt service plus operation ment in local economy and and maintenance costs. CHAKACHAMNALAKE assessment of a Whitehorse/- The contract will cover an HYDRO Juneau lntertie with terminals effective period through June (South-central west of in Skagway and Haines. 30., 1985, after which KEA and Anchorage in the GREEN LAKE APA are looking towar4s en- Merrill Pass Area) (Sitka) teting into a long-term power No additional FY 85 funding This 18.5 MW hydroelectric sales agreement. available for feasibility study project· went into operation SOLOMON GULCH follow-up. March 15, 1982. For funding, (Valdez) CHESTER LAKE HYDRO the municipality floated bonds. The Solomon Gulch hydroe- (Southeast Alaska Sitka also has been receiving lectric project was constructed Annette Island) power from Blue Lake, 7.0 MW, by Copper Valley Electric The feasibility study was since 1961. completed in 1982. Legislative Association and later acquired CORPS/SNETTISHAM by Alaska Power Authority. authorization was received in FERC License transfer is com- 1983. Revised load forecast is The Snettisham hydroelect- plete. The capacity is 12 MW. pending. 1984 legislature ap- ric project is 28 miles southeast Construction and right-of-way propriated $3.3M for construe- of Juneau in the Tongass Nat- claims is in final litigation. tion of a new dam. Construe- ional Forest. It is at the head of Recently completed. December t1i of dam ~o begin in June the Speel Arm of the Port Clar- 1982 commercial operation 1 85. The installed capacity is ence Fjord. Two elevated gla- 1.5 megawatts. ~; . started. cier-fed lakes, Long and Crater .;,; ;~ SWAN LAKE HYDRO CORDOVA POWER lakes, are the water source for ~J (Ketchikan) SUPPLY the project. i ~-.. , 1.3 FERGUSON, YERKES, PERKINS & SMiTH, INC. CIVIL ENGINEERING ELECTRICAL ENGINEERING SURVEYING PROJECT/CONSTRUCTION MANAGEMENT

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CIVIL ENGINEERING, ELECTRICAL ENGINEERING SURVEY • Studies • Studies • As-Built Surveys • Planning & Design • Planning & Design • Route Locations • Water & Sewer • Generation • Utility Location • Streets & Highways • Transmission • Building Staking • Erosion Control • Substations • Subdivisions • Subdivisions • Distribution Systems • Cartographic • HEtrb~rs & Ports • Lighting • Hydrologic • Hydroelectric eSCADA • Hydrographic

..------•·1120 East 1st Avenue, Anchorage, Alaska 99501 (907) 276-1151 ______. The project was authorized A directive received March total of$59 million and is sche­ by the 1962 Flood Control Act 15 by the Alaska District stated duled for completion in early for construction by the Corps. the bid opening date "should 1989. Phase I tapped Long Lake The Alaska Power Administra­ be extended indefinitely pend­ in 1974 and currently supplies tion operates the project" and ing a decision of the Depart­ the majority of electrical power markets the power generated. ment of Defense Inspector Gen­ to the Juneau area. The project was authorized eral regarding continuation of CORPS/SMALL HYDRO in three stages to meet expand­ the procurement using the res­ In 1976, the U.S.SenateCom­ ingdemand. trictive language designed to miittee on Public Works direct­ Construction of the Long preserve a domestic manufac­ ed the Corps of engineers to Lake phase began in 1967 and turing and repair capability." determine the feasibility of was completed in 1974. Two Two major procurement con­ small hydroelectric plants in 23,580-kilowatt power units tracts are affected by the direc­ isolated Alaskan communities, provide a major portion of the tive. In addition to the con­ sff~s ·w~re\~'v'aluated on the immediate electrical require­ tract for manufacture of the basis of future needs for elect­ ments of the Juneau market. turbine, a contract to manu­ ric power and on the alterna­ Energy demand on the Long facture and install a generator tives available to meet those Lake phase exceeded capabil­ is affected because the specifi­ needs. Of the 256 sites that. ity in the winter of 1982-83. cations on the turbine affect were originally chosen, only Since then, each winter the the type of generator required. 30 were determined to be worthy local utilities have supplement­ The Alaska District original­ of in-depth study. ed the hydro power with diesel­ ly scheduled a bid opening Jan. Of those 30 sites studied, in generated power. 31 to open bids for procure· early 1985 only three were still The Crater Lake phase will ment of the turbine. Since then under consideration. Scammon consist of an 11-foot-diameter the bid date has been delayed Bay, in the western part of the rock power tunnel, a six-foot three times and then placed on state, was approved by the of­ diameter steel penstock, a con­ indefinite hold. fice of Chief of engineers for ventional vented surge tank, Since turbines are on the federal construction in August an underground gate structure critical defense eq ui pmen t list, 1983; however, it has not been as well as a 31,500-kilowatt all Department of Defense tur­ funded. generator with a 47,000 hor­ bine specifications are prepared The Chignik study (Alaska sepower Francis turbine to be by the Corps' North Pacific Range area) has been held in installed in the existing under­ Division's Hydro Design Cen­ abeyance, probably because of ground powerhouse. ter in Portland, Ore., to assure lack of adequate economic feas­ Existing access facilities, that technical requirements are ibility. transmission lines the power­ met. "" Unalaska, in the Aleutians, house were designed and con­ Construction of Phase II of was presented to the Board of structed to accept the addition­ the Snettisham project is al­ Engineers for Rivers and Har­ al generating capacity without ready underway. A $5.5 mil­ bors in March 1985. the project substantial alterations. lion contract to construct adit, was not approved for federal The third phase of the pro­ penstock and power tunnel and construction. ject, if constructed, will be a upgrade an access road was The present administration dam at the outlet of Long Lake awarded to South Coast Inc. favors construction of most hy­ designed to elevate the water Completion date is September. dro projects by local interests. level, providing additional res­ Meanwhile the Alaska Dis­ The board did endorse the tech­ ervoir storage. This phase trict is proceeding with plans nical and economic merit of wouid not begin until after the to advertise for bids this fall to the Unalaska study. Crater Lake phase nears com­ complete the construction work, RAILBELT INTERTIE pletion, despite the hold on procure­ The Alaska Power Author­ Initial construction on Crater ment of equipment. ity first studied the feasibility Lake began in November 1984 The final construction con­ of an Anchorage to Fairbanks on the tunnel, the construction tract, estimated to cost about transmission line in 1978. In camp and upgrading the access $30 million, will require com­ 1980 the Power Authority un­ road. The plant is scheduled to pletion of the excavation work, dertook a detailed feasibility be in full operation in early installation of a gate structure, study of the project including 1989. penstock, intake trash rock, preliminary engineering de­ The total cost of construc­ machine shop, and powerhouse sign. tion is estimated at $59 million. completion, including install- These studies, completed in Bid opening for the Snetti­ ' ing ~the turbine, switchgear, May 1981, demonstrated the sham hydro project's turbine transformer, governor and con- positive feasibility of the line procurement has been placed trols. ' and recommended construction on indefinite hold by the Corps Phase II of the Snettisham of an intertie to allow exchange of engineers' Washington head­ hydro project tapping Crater of economy energy and the quarters office. Lake is estimated to cost a sharing of reserve generation ::·· 1.4 NEWBERY ALASKA

ELECTRICAL. and:COMMUN. . ICA ·noNS· . CONTRACTORS & ENGINEERS . . A DIVISION OF ENERGY RESOURCE IISERVING ALL OF ALASKA". . . . '· ' r · •.• "· .• SYSTEMS CORPORATION .· •·

INDUSTRIAL WIRING TRANSMISSION LINES .COMMUNICATIONS CABLE. . INSTALLATIONS~· SPLICING AND PILE DRIV.ING ·. SUBSTATIONS PILE DRIVING . TRACK MOUNTED . VERSATILE PILEDRIVERS ,

~ . I CALL I . 338-6869 1120 E. 1st AVE . TELEX: 26484

·.·:: .i.J capacity between the Anchor­ from Douglas (Willow) to Hon· age and Fairbanks load cen­ olulu Creek. Five substations ters. are associated with the line, The feasibility estimated the two in the northern section at benefits from the project to be Healy and Gold Hill, two in the about $17 million per year. southern section at Douglas Following an appropriation and Teeland and one in Cant­ of $76 million by the Legisla­ well. ture in 1981 for design and Additionally, a 5 112-mile construction of the Intertie, the wood-pole section of 138kV Power Authority initiated the transmission line will link the route selection process and Teeland Substation to the ex­ final design activities. isting Matanuska Electric As­ InNovember1981 the Alaska sociation line. Power Authority Board of Dir­ Although designed for 345 ectors reviewed the updated kV, the Intertiewill initially be benefit/cost ratio of the pro­ operated at 138 kV, which will ject and selected the preferred allow the interchange of 70 intertie routing. In July 1982, mega watts of power. Ifthe Sus­ the Board approved the start itna Hydroelectric Project, or of Intertie construction. some other major generation The Anchorage-Fairbanks facilities is built, power from Intertie is a 170 mile, 345 kV that project would be trans­ transmission line with assoc­ ferred at 345 kV which would iated substation modifications boost the Intertie power capac­ designed to connect the exist­ ity to 350 megawatts. ing power generation systems Construction was completed of southcentral Alaska with in December 1984. In December, the Fairbanks area. during testing, a main trans­ Because the benefits of the former malfunctioned. The Intertie are expected to be so manufacturer of the transform­ great and the load growth de­ er, Westinghouse, estimates a mand in southcentral Alaska 6-8 month repair period which so rapid, the Power Authority will delay full operation of the expedited construction by pro­ Intertie until September, 1985. curing transmission line mat­ "Utilities receiving power from erials concurrent to the adver­ the intertie will be responsible tisement of construction con­ for operations and mainte­ tracts. nance of the line under an The contracting process was agreement with the Power initiated in September, 1982 Authority. and construction began in May, The estimated project cost in ,1983. The Power Authority sel­ November1981 was$130.8mil­ .. ected Morrison/Knudsen Co., lion. This figure was the budget :;'Inc. as the construction man­ amount when the Board ap­ ager for the project. proved the initiation of project Construction of the line was construction in July 1982. As a divided into two segments/ a result offavorable bidding, the . northern 72-mile portion from project budget was reduced to Honolulu Creek to Healy and $122.5 million in February the southern 98-mile portion 1983.

1.5 Coffman Engineers, Inc.

HELPING TO DEVELOP ALASKA'S RESOURCES

• Full-Service Engineering & Construction Management • Computer-Aided Design/Drafting (CADD) • Full-Time Staff of 60 Based in A11chorage ' ·' . >. ' ·~~ ". "'· . • . ' • ' • ~; \'' . • Field Offices on the North Slope

This innovative, award-winning $65 million North Coffman Engineers provided fast-track engineer­ Slope service base was completed on schedule and ing of process and utilities facilities for ARGO sub~t~ntially under budget with less than 2% Alaska, Inc. on this $75 million oil recovery pilot cont,"act change orders. Coffman provided com­ project. Initial operations began 12 months after the plete engineering and construction management start of design. for the .fast-track project.

550 West Seventh Avenue, Suite 700 Anchorage, Alaska 99501 (907) 276-6664 Alaska's Energy Resources Part 1: Hydroelectric Power

Written and compiled by Dr. Gene Rutledge

Purpose of the eneriJy aeries (ARERPP) volumes written Jr., the lieutenant governor. signed taaka. This supplement will cover ia to identify energy reaoun:ea 1976-78 as a starting point, In the summer of 1975, a D. Lane, who bad experience in reasonable detail the statue in Alaska, location of theee aupplementtheaevolumes with major geothermal conference in land planning and native of four of the 22 sites. reaourees, man's use of the excerpts from recent publica· was scheduled in Anchorage. iBBues, was the only person, Tbeae four are known ae lhe resources and the iuues ass~ tiona and invito articles from Gov. bad eel• other than Rutledge, who work· "Four Project Pool." The other ciated with the energy opera· authorities on eelected energy ected Bill McConkey, now well ed full-time on all fivevolumee. sites such ae Bradley, Suaitna, tiona. subjeCts. known in Alaska political cir· The last three volumes in· Green Lake, etc., will be ad· To address all the many com­ Forecasta made in 1977 vol· cles, to be the director. After valved Greg Edbolm as coau· dressed later; however, a on&­ binations is a task so over­ umea will be compared with Rutledge made a preeentation thor and Don Lyon in a man· line statue summary ia given whelming that all we can hope !984 realities. oftheenergyprojectahiaidabo agement role. More than 100 in this supplement. The eco­ to accomplish is an examina­ Work on the volumes was State Energy Commiaeion bad other people 888iated in aome nomics and politics of the foui­ tion of most of the key com· started in the Alaska Energy underway, McConkey suggest­ manner and lbsircontributione dam pool will be analyzed in a binations. Office, Office of the Governor ed that Rutledge become a are documented in the reports. later issue alao. A goal of the series is to and later transferred to the consultant to the Alaska En· This supplement addreBBes The Energy "Roadmap" make available to the reader Division of Energy and Power ergy Office. the development of an energy An early problem was the information on where Alaska Development. Funding came Rutledge came to Alaska in "roadmap" for all our energy development of aome type of a has been, where we are now from the federal Department July 1976as project leader and resources, energy sites, enersY "roadmap" or chart that would and where we are going in the of Energy. energy scientiston(ARERPP). operatione and energy iaauee. tell us where we are and where energy field. Prior to 1976, Dr. Gene Rut· McConkey was in charge of Empbaaia will be placed upon we want to go. After many Students and researchers ledge made a number of trips getting the funds and advising the hydro energy sites in AI· months a table of energy plan· hopefully will find the series to Alaska from as a on certain energy work el&­ aska wit& attention to the 22 ning elements wae developed. uaeful as reference material. director of the Western Inter· menta state officials wanted hydrosites eelected in-1977 as In any energy planning, one state Energy Board. During Method used to obtain the addreased. C. Quinlan played the most favorable for near neede to know: stated goal will be to uee the this time, Alaska's board mem· an administrative role. M. term development. Nine sites •Tbeenergyreaource(quan· five Alaska Regional Energy bera were Bob Ward, Red Rabm eerYed as an economist over2.5 megawatte in size had Resources Planning Project · Boucher and Lowell Thomas from Seattle to complete a&- been constructed prior to 1977. See SERIES, Paare 2 Energy "Roadmap" Comprehensive Energy Planning Elements

011 a. Gas Coat Wind (23 Prowlncea) (12 Flelcls) Tldu Wood Other ,_111811 5 litH)

Decommlulon/Reclametlon

Economic Conservation Technology • Demand & Markets • State-ol-lhe·Art • Supply Factors •Advanced • Employment •Costs •Incomes • Efficiencies •Modeling •Net Energy • Cosi/Benefit Analysis

lntemaUonal Alaska •State • Alaska 'Regions • Native Regions INFORMATION COLLECTION AND EXCHANGE Government Educational Industry • National LabOratories • Universities & Schools •Utilitiaa • Slata Agencies •Libraries • Industrial Corporations • Federal Agencies •NewaMedia • Alaska Native Corporations •Local • Individuals Page 2 ALASKA'S ENERGY RESOURCES Week of January 23. 191U

• The issue associated with fying our work with progress energy planning elements was hydroelectric· pOtential in .AI·

Bob Heath, Executive Director of the Alaska Power Authority, April 1985:

"Energy planning and management in Alaska is a dynamic process. We have a lot of issues here not faced by otherstates - the utilities, the communities and the state must overcome enormous economic an.d geographic differences and look at all possible alternatives for genera­ tion of electrical power that are appropriate to these regionalvariables."

W- of January 23. 1984 ALAIIIA'S ENERGY RESOURCES Page 3 Saga stretches back nearly 140 years Alaska's hydro history goes back to the Russians then and 1920,literallydozens products. hydro development are fairly 1372 contains· a summary of WATERPOWER of small hydro projects were Some of the early projects complete. monthly and annual discharg· INVESTIGATIONS, developed, few exceeding 200 are still in.operation (notably, Water supply investigations es through Septe.nber 1945 for DEVELOPMENT AND to 300 horsepower. SalmonCreekandAnnexCreek in Alaska were .started by the all previously published re. PRODUCMON 1840s-1977 Most involved minimum plants near Juneau, built U;S. Geological Survey in 1906. cords. as well as records of The Russians are known to power supplies (mechanical around 1915). Since passage of Initial studies were made on daily and monthly discharlies have developed waterpower at and/or electric powerlfor min· the in 1920, the Seward Peninsula, in the for the water years ' 1946-50 Sitka in the 1840s. Between ing, fish processing and forest -historic records. on Alaskan Northwest region. which had not been published Subtoequently, the investiga· previously. ' generation may occ:ur before girieer; ·· . tiona were extended to the In order to · meet interim the year 2000, a number of rec­ Carl Steeby; coneulting en· Interior region: the Fairbanks requirements. beginning ·.rn • Series ognized authorities were con· iineer, Retherford Aaaociatea; district in 1907, the Circle die­ 1961, theAiaaka District of the suited. Continued from Page 3 RobertCI'OIIII,administrator, trict in 1908 and the Forty, U.S. GeolOgical Survey ;...e. While 39 projects were used Alaska Power Administration; Mife.andSeventy-Mile Districts· annually a report c0ntainin11 as a Starting baH, the com• Dale Rusnell, chief of pilwer in 1910., · streamflow records for Alaska: munication to the expert care­ development, Department· of These investigations. which A waterpo,.er·field ProtP'Ilm review of 2,000 sites in the fully noted that they were not Commerce& Economic Devel· were in the placer gold mining state where hydropower could was initiated by the U.S. Geo­ limited to these 39 projects, opment, DivisionofEnergy and diaiiicts, were discontinued in logical Survey iri 1947 but has be produced. and added any that they felt Power Development. 1912. . had liUle aetivity since 1967. To limit the ARERPP anal· would be appropriate; many A waterpower .. reconnais8- Duringthel!1·yearperiod ..r · y.iis to a reasonable number of were added by the participants. 'i'wo tables are given which ance · was conducted in the summerfieldinvestigation,the · potsntially recoverable sites, Specificsitesexpectedtobave present a summary of the Southcentral reiion in 191.3. the ARERPP team began by USGS cooperated closely with capacities of lese Ulan 2.5 results. For the sites identified In 1915,aa a result<>£ an mllent the U.S. Districi Corps of Eri· concentrating on the 39 un· megawatts were included. as favorable, a one-line status need for information on the gineera during the l950a and developed hydro sites that had Experts who participated in as Of January 1984 is added. waterpOwer ·....Ourcea of the been recently (August 1976) with the U.S. Bureau of ftec. · this analysis were: The statue of four of the por- Southeast region, the U.S. Geo­ lamation (now the AIBIIka identified and analyzed by the James Williamson, aaaistant ject& is given in another sec- logical Survey.. and the . U.S. InsituteofSoclal and Economic Power Administration) durinII manager, Weatem Design Of. tion of this supplement. It is Foreat Servicea eetablished'.a the i960a .. Research (ISER) at the Uni· fice, R..W. Beck andAaaociatea; obvious that mach activity has .com)irehensive atream·gqing versity of Alaska. Potential damsitfotl and ....,. ' GeorgeRobertsori(andataff), occurredinAlaakawithrespect program in that region. ervoir sites . were mapped h)' To assist uain ranking/pre­ eolonel, Corps of Engineers, to. hydroelectric development . Sub.qaenUo 1920and until USGS, and t!te Bureau and th• dicting ·where hydroelectric ~. district enllineers, district en· sinee 1977. 1946, the U.S. Forest Service Corps prejlared ileological and eontinued·'limited inveatiga· feasibility studies. Site (Megawatts of tiona alon" or .in cooperation At the start Of the Alaska Community Serviced Hydropower Site · Installed CapaCity) With priva.. groupa investigat­ ·field program. surveys were ing possibilities for d'evelop­ \' made near the electric load merit of the pulp and paper centers thought moat likely to Anchorap Copper Lake 15 industry. expand and be in need of adcli·. Eklutna 30 The pieeent program or tiona! power. . · a-.n flow measurements of : Efforlll were concentrated in June~ Snettisham (Speel 47.2 the U.S. GeOiciiieal Survey was the Interior.and Southcentral River) init:iatedin1946.Surfacewater Regions .around Fairbanlui. Creek gagin stations have been e8th­ Anchol'll(le, Seward, and the Annex 2.8 lisbed in all regions of Alaska Salmon Creek Kenai Peninsula. called the 2.8 and malta of investigations "Railb.elt" area. and also are published annually. around Juneau in the South· Sitka Blue Lake Dalll 6.0 8aaie data on.surfae...water eaii't Region. . supply of Alaaka have been Preliminary appraisals of the Ket.:hikan Beaver Falls 5.2 publieh"d in ·bulletins or knowri pot~ntial sites near Ketchikan 4.2 water-aupply papera · of the theee load ·centers were made Geological Survey orin repol'lll by the Corps' and the Bureau. of other agencies. On the basis of these apprai· !'-fer !akatla Purple Lake 3.0 Water-Supply Paper

. , ALAIICA NYDIIatii.ECTRIC RUOURCU .. u ...... _

. 8 . 'otYI\.QPfO ~TU • ur.otYiLQPIO SITU .~ ..· . -AI,.ASICA.ItiGtOHIC~ ~/- .. -··

·'1 ...

"" .... •IIIII' •••

World War .II, reflectecl an • The Corpdollowecl with ita Inlet pa wu viewed u an The relatively lowcoet,oper­ lftftu 11-lioD vudy differ.. .me. of rqional reporta; the""' -tially aurplu, valiaeJHa atin1 efficiency, reliability, et fNm ~~!daTI ai-lion: l!r8tofwbich....,..outln1949. commodity,ed when naclelr mobility IIJid low faeJ colt of ••·lilstory · By&rtbelupRe«

What they said then and what really happened _ A 1977 survey of hydro sites

FollowinR is a compilation of hydrot>lectri<- projrcts in Alaska Virginia Lake (Petersburg-Wrangell, South•·a~ questioned i1t 1971. "Seriously question merit." Projects art• listed by product namt•, ftx,ation. region, the number "If demand dictates." of the five experts who <'Xpectt'd the project to br dt'11eloped. thr UPDATE: Tyee Lake selected as hydro site to serve area. power capac-ity, the l'arlit•sl and 1at••sl ,{,•t·adrs {ordevelopmntt, s<'lf'rted comme11ts {rhlrr rlw<'Xpt•rtson thl' pmjrcts Sunrise Lake ntral), 5, 792 MW, 191!0-:!000. Kisaralik River (Bethel, Southwestern), 2, :16 MW, 19110. "Only apparent si1111le project on th<' Susitna River which is eco- "May be good project to replace thermal in Bethel area." nomically {eot~ible by itself." "Question economics." UPDATE: Power authority is pursuing FERC license at 1,020 MW. UPDATE: Harza feasibility study for power authority indicates Devil'• Canyon (Susitna, Southcentral), 5, 726 MW, 1980-2000. major fishing impact. "Economically feasible only in conjunction with other upstream Unnamed Lake(Haines, Southeastern), 2, 9 MW,J!IIlO. development." "The only alternative to thermal in the area, but demand may bP UPDATE: Power authority is pursuing FERC license at 60 MW. insufficient." Solomon Gulch (Valdez, Southcentral). 4, 12 MW, UPDATE: West Creek selected for feasibility study. 1980·1990. Crystal Lak~ Expansion (Petersburg-Wrangell, Southeasterni. "OM of the better sites in Valdez area." 2, 2.5 MW, 1980-1990. "Awaitillll FPC license." "Presentl.v being considered." UPDATE: Power on line in 1982. Lake Grace (Ketchikan, Southeastern), 4. 20 MW, "Petersburg ha• rejected the proposed expansion of Crystal · 1970·1990. Lake." "Ketchikan load growth may require this f'Xpensive project." UPDATE: No action, federal land tenure problems. UPDATE: Rehabilitation of dam, new facing to control leakage problem. Green Lake (Sitka, Southeastern), 4, 14 MW, 1980-2000. "Insufficient demand." Power Creek (Cordova, Southcentral), 2, 12 MW, 1980-1990. "Green lAke should supply Sitka power needs to year 2000." "Difficult slope stability probkms." UPDATE: No action being taken. Power authority chose Stone & UPDATE: Power on line in 1981. Webster to conduct Silver Lake feasibility study instead. SneUiaham Es.pansion I (Juneau, Southeastern), 4, 27 MW, 1980-2000. Following are additional hydroelectric sites identified by experts "Future increase in fuel may make electric heat viable and require in 1977: accelerated construction." "Not if CGpital moved." Cheater Lake (Annette Island), 2.5-10 MW, l!;l70s. UPDATE: Design almoat complete, initial funds appropriated by De{i11ite project report Marly compkted. Congreas. · UPDATE: Harza feasibility study for power authority completed January 1982. Run of river (2.5 MW) recommended. Purple Lake Rehabilitation. (Metlakatla, ~outheastern), 4, 14 MW, 1970-1990. Black Bear Lake (Prince of Wales Island}, 2.5-10 MW, 19801i. "Insufficient ainount of energy." Preliminary appraisal scheduled 1977. To serve KUiwock, Craig, UPDATE: Project no longer being considered since power author- Hydaburg. ity decided Cheater Lake a inore economical alternative. UPDATE: Power authority pursuing FERC license for 3-6 MW. Goat Lake

Construction atatuaea and histories of the Solomon in operation only twO years communities of Wrangell and at Tyee Lake. Gulch, Terror Lake, Swan. Lake and Tyee Lake hydroelect­ and had a staff offour. Petersburg are expected to use In 1978, Thomas Bay's con­ ric projects are reprinted from the December issue of The Tyee project is nearly only about 30 pe~nt of Tyee salting engineer, International Alaaka Power Authority's "Energy Program for Alaska completed, but its development project's total generation cap­ EngineeringCompany(IECO) Newsletter.'' Alaska Power also baa supplied photographs and construction baa not been acity. proposed a 15-megawatt pro­ of the projects. Similaa statue updates on Terror, Tyee and without controversy. Thomas Bay Power • ject initially involving a lake Swan were presented in a special Augnat issue of Alaska Almost no one disputes that Commiasion'slnvolvement tap, power tunnel, powerhouse Journal of Commerce. from an engineering stand· In· the early 1970s the Tho­ and transmission system. point, the Tyee project is a mas Bay Power Commission. Plana called for the project good one. N evertheleaa, a group made up of Wrangell to be expanded by another 15 Tyee-A Perfect Loealioa longtailra£ the project caaal; . filled submarine cable baa been was baaed on . a 3;9 percent ThiS ·uuique eonfiguration laid in four sections average of annual growth rate that dim­ made Tyee Lake a perfect can­ two to four miles in length. inished to 1.4 percent over·20 didate for a "lake tap.'' The Coat of the project ia eati- · yeara.Itwaaalaollllllimedthat lake has been tapped with a mated t $127.7 million. It is the coat of diesel generation 1D-foot-diameter tunnel about bein1 financed by $82 million· would increase annually at a Tyee Lake ProJect Data 170 feeC below the surface. . in a state equity in-ent rata of 2.6 percent over the Water flows from the lake and the •balance throlllh the inilation rata. Tho Tyee projoclloa-lOP.-no doni· through a 4Do-foot-long upper sale of short-term, variable Since.these predictions were tunnel. a I ,200-foot ·vertical demand bonds that will be made, the anticipated rate of --- $1;-4.710-ai11Ho01-and1,380ol.... - shaft. and a ·7,1Do-foot-long eonvertecl to long term revenue · growth in the Wrangell-Peter. -T- 1.380 lowertunneltoanabowground bonds. · burg area baa not occurred and ·--of-tunnel;reotal1~---···cepl powerhouse near the Bradfield Power Authority's theeoatofdiesel baanotclimb- apocfflc ..... unlined. Canal. Firat Project edaarapidlyduetotheclec:reaea 2.--· impuloe Peltona The poweJ> house holds two The Tyee Lake project wes in the coat of oil 130.000-hourl 1D-megawatt turbina ~eDer&tor the fint undertaken by the Consequently, theeconomic:a 20--lllmlleaal 138KIIovoll-""d and units. After the water flows AlaakaPower Authority. When of the project have changed 12 mtln of 138 Ki5ovolt submanne. through the turbines, it i8 dis­ it began work on the project, and the market for the project $125.7 million (1982<10tloro) charged into a qlUirlel'-mile the Power Authority had been baa not materialized, so the

Jllge I ALAIKA'S -GY RIIOURCI!I W- of January 23. 19/U Terror to end Kodiak's diesel dependence SolatloaatoEnviromneatal diesel fuel. The plan to con­ that construction of a hydroe­ other dams in other refuges. project. ·Concernaa-ItalaProject atruct the Terror Lake Project lectric dam in a national wid­ The U.S. Fish nd Wildlife Ser­ This pitted wildlife concerns The Terror Lake Hydroelec:t- suddenly had a new lease on life refuge would set a danger­ vice agreed and refused to grant squarely against the need for ric Project, when it goea online life. ous precendent for building a special use permit for the See TERROR, Page 9 in 1984, will supply power to In 1978, the Kodiak Electric some 4,000 cuatomera ill the Association filed with the Fed­ the proposed project~ The pro­ in August 1981. and the award Kodiak aree. It will also be an eral Energy Regulatory Com­ ject would eonsistoftwo stages. of several additional procure-­ environmental modal forfutute mission (FERC) for a license to The first included a power ment contracts and the major h'dropowerprojects thateould _ conatruct the Terror Lake •Tyee tunnel and powerhouse with construction contract followed. be daveloped in other envir- Hydroelectric Project. No one Continued from Page 7 two 10megewattgenerators. The Construction of the Tyee "iunentally sensitive areas of questioned the need for a more second stage waa to be the project began in October 1981. Alaska as well as the Lower economical source of electric- addition of a small concrete Ae construction progressed, the 48. ity on the island, but many did arch dam at the lake's outlet power authority approved a , ·Bat irouically,. the project challenge ita· environmental voted unanimously to assume and a third 10-megawatt gen­ proposal for IECO to subcon­ almoatnevergoto1ftheground impact. responsibility for the design erator. tract with its parent company. becaue of the same environ- Half of the project is on 18 and construction of the pro­ Procurement of long-lead Morrison-Knudsen (M-Kl to mental concema that it is square miles of the 2,800- ject. The power authority later time ·turbines began in July perform construction manage-­ expected to help solve in the square-mile Kodiak national elected to continue with IECO 1981 in anticipation of receiv­ ment of the project. By March future. Wildlife Refuge crellted by aa engineering consultant. ing a FERC license to construct. 1983, M-K had personnel in Terror Lake ia neatled in the President Franklin Roosevelt IECO revised the aeope of FERC then issued the licenee place. mountain& 25 miles aoutheaat in 1941 to preserve the habitat­ of the City of Kodiak, which of some 3,000 Kodiak brown also ia the home of the U.S. beere and other wildlife, in­ Coast Guard Support Center. eluding mountain goats, bjlld Residents there pay more than eagles and rough-lenedhawka. $500,000 a month for diesel The bears wollld suffer, a· fuel togeneratetheirelectricity. 1979 Arctic Environmental The hydropower project in- Information and Data Center eludes a 193 foot, rockfilled study suggested. "the project dam - now eompletecl - at area provides good beer habi­ the mouth of Terror Lake, a taL ..( that) can be regarded as five-mile-long tunnel through an important bear donning which water will flow from the region," the atudy said. mountain lake to a near aea Envir

responsibility for the project The size of the rock-filled Although the project, when ation, the combined demancl of as partof.the Energy Program dam is not the only thing big iteomea online. m~y not reduce the City of Koclialt ancl the For Alaska. about the Terror Lake Project. K~"scurrentcostofpower, U.S.CoaatGwmlwillbeaboiit • Terror Industry leaden favored the A record number of bids total· the new electricity should ala· 65 pereent of the porject'o an· Continued from Pa1e 8 compromise becauae a neW ling $4.57 billion were received bilize the area's energy ~-· nual output. In fact. demancl hearing process could have for the project. And the con· The electricity from Terror may eXceed theproject'aannual delayed the project another tract itself- Cor$128. 7 million Lake already io in high de­ electrical power ae Kodiak year or more. KEA ·officials - is the largest ever awarded mand. In the first year of oper- See TERROR; Pa1e 10 Electric Association (KEA) of· wanted it because a lengthy by the State of Alaska. ficials argued the Terror Lake delay could have added up to Project contractors, S.J. Terror Lake ProJect Data Project would save Kodiak res­ $1 million a month to the pro­ Groves & Sons Co., of Bellevue, idents $200 million over the ject in adclltion to higher fuel Wash., and Peter Kiewit& Sons next 30 years. _ costa. Co., of Omaha, Neb., submit­ DoniDam­ .... -~~~.--113INI With the help of Alaaka'a Domlonglll 2,7GOINI Environmentalists agreed ted aa a joint venture a sue-. 1oe.aao .... INI congressional delegation, util· because a loao here could have cesaCul bid that was $44 mil· ity representatives. environ· meant mora projecto-perhape lion len than an engineer's ...3,1GOINiol ,,.. ____plpo mentalists and alate and fed· -T...... with fewer safeguards - in estimate. -- eral officials reached a rare other national wilcllife refuges. 5-- Although bad weather shut compromise by mid-1981 that T-­ The power authority backed down construction for five cleared the way for the project --~ 131.1110.,.._.._ the compromise by provicllng weeks late last winter, the pro­ T- 20--- to be constructed in ways T-Ino 2.----113-ol1·-- $500,000, aupplemenc,d by De­ ject quickly got back on sche­ ~-­ thought to be compatible with partment of Fish and Game dule .•hltn work_ ""'umecl. -Coot wildlife in the refuge. personnel a.nd equipment, for ·1·- In October 1981. FERC. li· a five-year study of the impact censed the long-awaited dam or Terror Lake Project COD• and po.werplant, and construc­ stroction on bear habitat and tion soon was underway on the behavior. largest dam yet to be built in Since only two years of the Alaska. study period have elapsed, it ilt The license then was trans· still too early for a preliminary ferred to the Alaska Power report. However, bearactivity Authority in May 1982 when does continue in the general the power authority aaaumed an!a.

TERROR LAKE HYDROELECTRIC PROJECT

I

Pap .IOALAsu'SINI!RGY REIOURCII WHk of January 23. 1984 Double-curved arch highlights Swan A Project ofFirata Engineers from the Seattle­ feature a failsafe warning de­ property in 1976. materials, thua adclingexpeno­ The Swan Lake Hydroelect­ baaed firm of R.W. Beck & vice:in compliance with new Swan Lake liee 22 miles DOl' es that other power projecta ric Project, which will serve Asaociateo, who designed the Federal Energy Regulatory theast of Ketchikan, ""'ting don't encounter. the Ketchikan area when it BtrllC:ture, ran a aeries of com· Commission (FERC) guide­ 236 feet above the Carroll Inlet Adclltional coots were en• goes on line in 1984. is unique puler leota to determine the lines. on Revillqigedo Island. The countered in· the clearing ol among hydroelectric facilities. atreu on various points of the Anelectricalcircuitrunuing project includes the 174·foot­ land lor thetrensminion litr€. In fact. the dam featureo two clam,andfoundadoubJe.curved through the structure will be high dam, which required More trees than iDitially antic· North American fireta. elliptical design would put the interrupted and an alarm will 26,000 cubic yards or concrete, ipated had to be removed. and Swan Lake Dam. whichc:roa­ leaatotreaaondam abutments. oound if the dam cracks for and a 1.950-foot-long, 11-foot­ the line over Carroll Inlet re­ aeo Fallo Creek about three­ Tbia design is expected to anyreaaon. cllameterpowertunnel running quireda.minimum waterclear­ quarters of a mile downstream enable the dam to withatand FERC established this re­ from the north abutment of the ance or 70 feeL from Swan Lake, io an engi· earthquake up to 7.4 on the quirement for new dama after c1Jm to a power bouse at tide­ Tbia above'-ter span ·is neering marvel with its double­ RicbterScale. Theneareotfault the Teton Dam in Southeast­ water. designed to withstand winds curved elliptical concrete arch line is 18 milee away. ern Idaho collapsed, causing The dam will raise the sur­ up to 180 miles an hour in ice­ - the firet of ita kind in North The concrete dam is alao the wjdii!IJII~ f1oocllng, loao of face of Swan Lake about 100 free conclitiono ancl winds up America. firet in the United Stateo to destruction of feet. to 55 mileo an hour when it is Conotruction of the total caked with ice. Tho power line project began in late 1980 ancl can tolerate 1·1/2 inches olice waa expected to be completed when there ia no Wind. bymid-December-wbichper· Setting paleo lor the pOwer hapeisanotherfiret,aincethat line aloo presented problems is two months ahead ol ached· because or unique ooil concll· ule. tiona. Attempts tocllg holeelor The powerhouse, which baa See SWAN, Pqe 11 been excavated into a hilleide. will have · a capacity of 22 megawatts from two ll·meg&· watt generators. • Terror The water, after it powers theturbineo,willbecliocbarlecl­ Continued from Pap 9 into Falls Creek. juat above Carroll Inlet. prpcluctionof136.800mega-tt A 115-kilovolt powerline, in· hours of electricity within five dueling a 3,()()().foot span over years. :(. Carroll. Inlet, will then carry The $190 million project is the power acroao rugged Sou· bein1 financed by a $86 mil· th-lem Alaska mountains !io_n appropriation from the to Ketchikan area coatomers ·l.Plature and bonds iuued 31 mileo •-Y· by the power au.thority. Swan Lake'• Clulllenp The power authority will own The reinote location of the the-dampower plant complex dam and power plant siteo ana whoesala power to KEA. made construction a logistical KEA will be responsible. lo~ challenge. Limited access re-. theoperationanclniaintenante quired prime contractor S.J. or the Terror Lake facilitieo Groves & Sons to barge or air and the retail cllotribution ol. lift in heavy equipment and electricity. Week ol January 23. 1984 ALASKA'S ENERGY RESOURCES Page I I

efforts; ain... helicopters had Ketebikan's Growing petroleum pri"" inereaoes of seeable future. This projeeted to be used for much· of tile ·Power Needs the 19708. . • need eould be met by conetroe­ •.. - wan work, and helicopter time is Whiletbeprojeetinitiallywas It now appears still more tiou of an interite between the S costly. Despite tllese added developed by Ketehikan Pul· eleetricity may 'be needed to Swan Lake project and Tyee Continued from Page 10 costs, however, the project is bie Utilities, it was assumed· serve Ketebikan in the fore- Lake projeet. expected to be completed within by the Power Authority as part 2 per...nt of its original $95.7 of the Energy Program for AI· Swan Lake Project Data pole foundations failed because million cost estimate. aska in 1982. they would fill in rapidly. Sin"" there are no salmon The community's need for a . Engineersdesignedasystem runs in thevicinityofthedsm new sou= of eleetricity had 174- to fit eonditions in whieh · because of the steep falls, the been established by loeal offi· 450- foundations were directly pile major environmental consider­ ----1,500- eialein1977,whenfuturepower ,_ driven 90 feet into the ground ation was the in'lpaet the pro­ shortages were predieted in the --alll.l ___plpo for maximum stability. Wood ject-espeeiallythepowerline abaeu"". of new generating 1.--.-­ p)Ies topped with steel ezten· -wouldhaveonloninlraetiv· facilities. 2,1~- sionswerethenboltedontothe . ities. Aa a reeult.leiotrictions Hydropower was aeleeted 22.5~ pilings. . . were plaeed on the powerline becauoeofitaeconomy-even -.aoo...... ,..._ Timing was erucial to th~ right of way. before the eecond round of the i10.S-al111-­ ..-(11111~

,._ 12ALAIICA'8 ENIRGY RESOURCES Week of January 23, 1984 Power came on line in 1982 ... Solomon Gulch hydro powers Valdez, Glennallen Flnt Project voir bearingtbenameSolomon with an initial $53 million fac8ana&omiboto660aeree. watts, with an annual average Construeted 1907 Lake, bits .and pi...,. of the inv-ent. ·_The Solomon Guleh power energy outpnt of 55,000 meg­ The Solomon Guleh HydrOe­ penstock and powerhouee ThepoW8ra!lthoritymarJI8ta plant was deligned'for a sen· awatt hours. leetrie Project near Valdez, the machinery and a "ruatic" oPer- tile wholaeale power1eniirated eratin1 eapaeity of 12 ·-a· See GULCH, Page 13 ator's cabin. · terminal city of the Trans­ at Solomon Guleh ·to CVEA, ' ' Alaska Pipeline, serves both while CVEA operatea and '·the Valdez and Glennallen A'combination of.faetore­ mainiaiiia the projeet. •· · · Solomon Gulch Project Data including the 1973-74 OPEC :SNU. ThenewSolomonGulehdam ;":. Solomon Lake and Solomon embargo ofoil aalea ofthe Uni· and power plantfacea the city t.edStateathatwasaecompan· ~- Guleh were lintused for power ofValdez from the ehore oppo­ «io-,.- ied by aharp inereassa in pet­ .. production in 1907, when a lite the port about three mil• 111--·----­ roleum prieea, c:onRruction of >-small eoneret.e dam was built from the Trana-Aiaska Pipe­ 4,111-ai4N8Incll-plpo ' at the mouth of the lake and a the Trans-Alaska Pipeline line terminal. ,...,...__ powerhouse was conatroeted t.erminaJ and reeulting indu­ Conotroetion of tile dam 12.._.. at.tidewat.er. trialpowtll-promptadCVEA raiaed the elevation ofSolomon 34UIG0.....-- An additional powerhouae to look for a more eeonomieal Lake from 610 to 685 feet and 1CII-al138- was built a few years later on and inflation proof meana of ineleased the reeervior'a ...,... --(1182-) the ·right bank of Solomon generating eleetricity. Creek just below the dam, and CVEA not only wanted to the site was lieensed for 480 generate power for Valdez and horsepower of eleetrieal ganer­ wanted to connect the Valez ating eapaeity in 1932. and Glennallen distribution Thatpowerprojeetcontiaued systems. .' . 1 . to operate until1945, when the The Solomon Gweh -Hydroe­ license for ita operation Was lectrie Project was determined surrendered to the Federal tobetbemoeteeonomiealpower Power Commission, forerunner eyatem to meet these goale. offoday's Federal Energy Rer· FERC aranted CVE"A.a li· ulatory Commission (FERC). eense to conotruct and operate The generators were aban· the Solomon Guleh Project in doned. and then-c:heap diesel' 1978. Constroetion was fi. fuel beeame the primary sou= naneed through federal Rural· of eleetrieal power for Valdez. EleetrifieationAdministra~ and Federal Finaheiq llaDk· By the time the copper Val­ loans. · I . ley Eleetrie Auoeiation

in early 1982led to power planl major industrial installation Salmon. power project hatcheryie more problems that caused a l().day like the pipeline terminaL With energy _available at a thanefficient-ithasactnally shutdown. But in recent months, earth· reasonable cost along with the made the Solomon Creek fish­ • Gulch CVEA officials determined quakes measuring up to 6.5 on right water conditions, the ery better than it was before. Continued from Page 12 that the problem was clogging the Richter scale have been of the power plant by decayed centered near Valdez, and the vegetationfromtheexpanding dam and power plant have Beneftte of the Project lake behind the dam. They also .withstood these shocks. said there should be no alarm The other concern was the Conatruction was completed over the then-low water supply Solomon Creek fishery. Valdez in January 1982, with com· and accurately predicted the Fisheries DevelopmentAasoci· mercia) operating beginning reservoirwouldfilltocapacity. ation, a privately-owned cor- on March 31. With the e:­ tion of normal shakedown The Solomon Gluch Project ~r:.:: ~=·~:he=u~ problems, the Solomon Gulch also included construction of a ces, responded by building a Project has performed well, 100-mile, 138·kilovolt trans· fish hatchery at the mouth of with only one power outage mission line from Valdez to the creek adjacent to the power since June 1982. · Glennallen to providethatarea plant. This 18-month performance project power through the Thefiahhatcheryutilizesthe record w~ however, achieved CVEA distribution system. clisch,..P of the power plant, ouly after early problems a!>' Solomon Gulch was the im· hich ·des ter that · peared to threaten the new pactastrongearthqnakemight :arm..:''d:n n.::W strsa!: project. Comparatively scant have~nahydropowsrfacility, temperatnrea; The warmer watersupplieoinSolomon Lake ·especially one so close to a.~ waterieidealforrearingCoho

SOLOMON GULCH HYDROELECTRIC PROJECT

P8ge 14ALMKA'SI!NIRGY RI!IOURCI!I W... of January 23. 111/U -1'urbine technology continues its advance through '80s Turbine technology continues . capture much more ofthe avail­ In thie cass, the water jet a squirrel wheel-like turbine. the location of the genarator. to advance today, moving far. able energy than the flat pad- strikes one aide of the bucket The Kaplan turbine, using The rim-generator, in which and it discharged on the oppo­ adjuetable bladee wae patented the generator rotor ie on the thor from the simple, early dl~ third type of impulee tar­ aita aide. by Viktor Kaplan, an Austrian, peripberyoftheturhinerunner, paddle wheels or "hurdy·rurd· bine, the firet .,•-o-impulee iea." ...... The other haoicclasoification in 1915. In anal turbines, was invented in 1919 by L. H. About 1870, Allen Pelton turbine, was designed by Eric for turbines ie the reaction water ie conducted found that a split cup could ~!"f:::.'dpatentedinBri- turbine. The common FraDcie the shaft, the mach- turbine uaeo a fiDd blade with 80...... ------to

Pelton Francis 60

....CJl 2(J)• 40 ::'2: Kaplan ¥

"'· 20

- '.~

0 0 50 100 150 200 Power Per Unit (MW) PHASE I ALASKA REGIONAL ENERGY RESOURCES Volumel /Ucouerabk /Usource Deacriptit>n by Site Capacity and Coet of Key Hydmekctric Projecte Cunent.Pl4n1 (or Deuelopment Hydmekctric Sites ScreeniRII . Additit>nal Hydmekctric Siteeldenti{ied by E"perta Hydroekctric Reeourcee · App/ictlbk Technology Coetlssues Further ln{ormotit>n Needs Volume2 Hydmekctric Resoun:ee Inventary History of A/aka Waterpower Inuestitlalil>nl, Develop- ment, and Production HameBOiRII Water to Generate Ekctric Power General AeseBOment Rutledge Analylis of Impact of HR-39 Summary of Analyei• of HR-39 Power Demonde Rutledge is Potentit>l Demand {or Hydmekctric Power OCTOBER 1977 Impacts of HR-39 on A/au Hydmekctric PotentU.Is energy dean Inventories of Alosu 's Developed and Potential Hydro- .._.. , ekctric-Bites The author of the Alaska .. Key Contocte, Hydroekctric Reeources Journal of Commerce's energy All*a Oiftsian of IEIIQY Mil A/au Hydmekctric Site Map• series, Dr. Gene Rutledge. is ___ A/au Hydroelectric Resources Bibliollraphy,l9061977 ~ .... E~~~ well known in the eneriiY field. 331D..aiS.,_. (By Re11ion, in Chmnolo11ical Order) Lisled in Who's Who in Ame­ Ancholage. AK HOSt PHASE II rica and Who's Who in the Volume2 World. he has hosled more than INTRODUCI'ION TO ALASKAN 200 television programs on Oivtlion of Rfllianll AQIIInlenU HYDROELECI'RIC DEVELOPMENT energy. received an honorary 0Himof T~ lmct~CU Hydmekctric Power {or Mid·Ran~~e Communities doctorate of ecience degree for Olfrc. of the AIII$Qn1 SKr~t~ry for the EnwttonnMtU Alaska's Hydroelectric Reeource Inventory his energy resource accomp­ u.s. D<~D~ttmen• of e,... lishments and participaled in M.tiScDDE201 RESTRICI'IONS AND REQUIREMENTS W&Wnflon. D.C. 20545 AFFECI'INGTHE CONSTRUCTION Alaska Pacific University's Under Conttc No. EY 78 C-015-2435 "Delphi Forecast: Alaska's I OF A HYDROELECI'RIC FACILITY Development the Year2000and Federat Licen~ee and Permits Beyond.'' ! Copi.. of tloP Aluira Re11ioru~l EneriiY Resources Plan· U. S. Army Corps of En11ineers Permit Pro~~Tam Rutledge has received spe­ '. ninll Projrct U'ere sent to the State Library in Juneau. each State Permits and Licenses Required for ihe Operation cial energy appointments from bomllllh library. state agencies and the Alaska Resource of a Hydroelectric Facility three governors. including Don Local Permitland LicensesRequired{or the Cons/ruction 1 Library in the. Federal buildiRII in Anchora11e• .Vany en~~i· Samuelson and nwrinll firms also purchased copies. 11 and Operation of a Hydroelectric Facility ofldaho and Jay Hammond of .. In each supplement of the si%·part ener11y series, a tabk Land Classification, Reserves and Withdrawals Alaska. 11( contents for topics covered in the issue and where they Sekcted Biblio11raphy He moved to Alaska in 1976 I can be found in the ARERPP uolumes i8 bein~~ printed to HYDROELECI'RIC TECHNOLOGY following a nuinber of trips to assist thou wishinll to conduct further research. History · the state as a director of West­ Fo/lou•ing is the table for hydro iBOueB covered· in the Continued Next Page· em Interstate Nuclear Pact f'tllumPR: representing idaho.

THE IDEAL OFFICE-... FOR ENERGY ENGINE-ERS FIVE FLOORS OF CLASS A OFFICE SPACE FOR LEASE OR PURCHASE

ADJACENT TO: •ALASKA RESOURCES LIBRARY •ARCTIC ENVIRONMENTAL INFORMATION AND DATA CENTER (UNIVERSITY OF ALASKA) •FEDERAL BUILDING COMPLEX •DEPARTMENT OF INTERIOR, MINERALS MANAGE­ MENT SERVICE FOR ALASKA OUTER CONTINENTAL SHELF REGION.

CON;TACT (907)-- 278-3813 FOR INFORMATION 801 'B' tht SADAR com,,.y STREET Coming ir1 the' Feb.20 en·ergy .cissue: ··coAL- > .. ·.· •Turb-ine Con&iaued ~m Pqe 15

Kuhune, in 1930, the tube tur- /_ bine gener&~r- is· oUiaide the ..water paaaacewaY.: · . In the bulb turbine, 'bOth tile I runner ~lid tlie ·,enerator· are in the water p8881ip, while the 1 generator ia encloaed il! a eteel capsule.; - · . · ·: · Patented by the Eacher-W.yea firm in 1933, the first bulb tur­ bine wae inatalled at Roatin in . Pomerania (Poland) in 1936. Bulb turbines, did. 1;1ot draw muchattentionuntiiWorldWar. II when tha Germano began installing them becaiue thay could not be differentiated from simple diveraioni ·dams by enemy bombera. · · . Although wideapread in EIIJ'o ope, bulb turbine generators have not been economically attractive in the United Stataa. However, bulb turbin.. may be valuable fll tapping· the energy from esiatingdalilathat ara being conaidered.forpner­ ation.,. .. : ·· . .· . Idaho Falla plana to·have it national demonatralion inataJ: lation operating by mid·1982. Lake Chelan Power'I>iiltrict in Waehington State hae a bulb turbine ptant under eonati-ae- tion. · •Content Continued from Page 15

Low·H~ TachnolotiY Ocean Energy TachnolotiY Applieability to Alaeka HARD WORK' PAYS· Recommendetiona i ENVIRONMENTAL IMPACT OF Being one pf Al~ska'sTop 100 businesses is proof HYDROELECTRIC DEVELOPMENT positive that hard work, determination, skilled ProblmuAaa~withtlt6 Conatrw:liD_II of Hydroel«trit: tnari(lgementand good business foresight pays off. Focility Lons Term E11uironme11ttd Not only forT~soro; but for Alaska as well. E{fecta Indirect Environmental Tesoro believes in Alaska. lmpaeta Volume·3 •. Makihg s_ure our customers get only the highest grades of SMALL HYDROPOWER Hgtory . gasoline and diesel ~el. Srrudl Hydroekctrit: Tec/o. MlotiY -ruad Appli£ability to • Our $92 million Kenai refinery expansion now under Alaak' . . • E11uironmeniial ImP.,.ct·· of c01}struction and nearing completion. · Very Srrudl Hydropower IW:OmmeiUl4tiDna • · • Marketing Tesoro petroleumproducts as well as lubricants ¥Key Colltoct Per110na' from ARCO, Conoco and Mobil at many Tesoro service . . . . . ' stations throughoutAlaska. 25 year:s ~a.;..i... _. and orgamza. lfonaara~ueated to mail · to the· Alaeka Jo.umal of Nlllf) mi'VtltiMI ~ Commerce-The Energy SerieB-'atorieaonenergy · in Alaeka 25 years ago. Duringtheapring;eev· We're oral pagea of the supple­ ment will addreaaenergy Energizing Alaska! ,~, in Ataeka at statehood. . . Ph-alao... ~Ueat­ ed. COAL... 1985 UPDATE

The past twelve·months have Usibelli coal consil'!ts of three seen significant progress with rourid trips per week. Unit respect to moving Alaska coal trains leave the mine at 6:00 to end users in a foreign coun­ P.M. on MondaY's, Wednesdays try. This enormous break­ and Fridays. The trains pass through in coal development through Anchorage between involved an interior coal mine 2:00 and 3:00 A.M. The trains (Usibelli), the Alaska railroad, arrive and are unloaded in the City of Seward, Suneel, Seward later that morning. The coal ships and Pohang, Korea. empty trains depart Seward in As of April, 1985, three coal the late afternoon, passing shipments have been made through Anchorage between with January 25, 1985, the red 9:00 and 10:00 P.M., arriving letter date for the first ship­ in Healy the next day. ment. The railroad will be buying 5 Significant planning is un­ new locomotives, but will not derway by a number of organ­ need to acquire more hopper izations that are interested in cars. the recovery, transportation In previous years most rail­ and use of Alaska coal from road tonnage was hauled the North Slope to the Mat northward. With the export of Valley to the Beluga coal fields I coal from Seward, that will in Southcentral. change and more tonnage will This update utilizes the min­ be hauled southward. When utes of the Coal Development MAPCO begins shipping re­ Forum of February 12, 1983, fined products from Fairbanks, the Matanuska Power Project over 90 percent of the railroad's Booklet;·and the Phase 1 final tonnage will be heading south. report of the Western Arctic . SUNEEL Coal Development Project. (Bill Noll) USIBELLI COAL ... It took a long time to build COMPANY the port facilities at Seward (Joe Usibelli) and it will take a year or so to Usibelli coal was first ship­ completely finish the work. ped from Healy to Seward on There have been some start-up :' December 12, 1984. On Janu­ -~~ problems but Suneel is very ary 25, 57,000 metric tons of ~. pleased. Suneel has a full-time the coal were loaded and ship­ ~o;-..-s..>:s.,;. '''"''·fi:~,_·,~~-:-:'-:-'-,..,~%-~~ representative in Seward now, ped from Seward to Korea. To Mr. M. J. Kim. The entire ' '~.·..: date, over 100,000 tons of coal export project took the support have been shipped to Seward of many people, many of them from Healy. The next shipment overseas as well as in Alaska. to Korea is scheduled to leave The Korean coal ships are Seward in late February. unloaded at Pohang, the big­ Start-up problems occurred gest steel manufacturing cen­ in the initial coal export but ter in Korea. As the ships return things went better than ex­ to Seward empty, the oppor­ pected. tunity exists for backhauling. ALASKA RAILROAD · PLACER U.S. (Bill Coghill) (Cole McFarland) Alaska has moved from talk­ Placer U.S. has 20 million ing about exporting coal to tons of underground coal re­ actually exporting coal. Alaska serves at its Jonesville prop­ has an abundance of coal, has erty in the Matanuska Valley. a transportation system,, and This coal could provide backup has a strategic location on th'e reserves if a mine mouth power Pacific Rim. plant were built in the area. The schedule for moving Placer U.S. has evaluated

11.1 ·~ I several market possibilities for ·eludes a 20 year lease for coal well in electrostatic precipita­ its Beluga coal leases includ­ and other resources with a tor tests as well. ing exporting steam coal, fuel­ renewable option. In September 1984, Diamond ing a mine mouth power plant To date, some 26,000 feet of Alaska entered into a joint pre­ and producing methanol. Plac­ drilling has been done on the feasibility with EPDC which er U.S. has changed its devel­ property. Drilling in 1984 also will be complete in the summer opment strategy and is look­ included downhole logging an­ of 1985. Diamond Alaska is ing at a scenario of 1 million alysis. Plans for 1985 include convinced that Beluga coal can tons per year as a base produc­ 7,000 feet of drilling. be delivered to the Pacific Rim tion level with the capability The developers hope for a for $2 per million btu. of increasing production up to 1989 start-up at0.5 million tons Markets should exist in Ja­ 5 million tons to meet market per year with production even­ pan in 1990 and in Taiwan demand. tually reaching 1-1.5 million between 1990-2000. Korea's In 1984 Placer U.S. estab­ tons per year with a mine life plans are not as clear as those lished a coal haul road route of20 years. The developers are of Japan and Taiwan. Diamond and potential borrow pits and also looking at the possibility Alaska hopes that the permit­ jointly filed a right-of-way app­ of a mine mouth power plant to ting for the project will allow lication with neighboring provide power for the city of the first shipment in 1990. leaseholder Diamond Alaska. Cordova as well as potential UNIVERSITY OF ALASKA Placer also met with the Elect­ developments in the Katalla (P.D. Rao) ric Power Development Corpo­ oil fields. The status of coal research ration (EPDC) and Nissho Work in 1985 is to consist of projects at the Mineral Indus­ Iwai, of Japan, to review coal further drilling to expand ton­ try Reserch Labortory, Uni­ combustion and storage tests, nage as well as do preliminary versity of Alaska, Fairbanks and to further study means of mine design and cost estimates. are described below. developing and marketing Bel­ Work on baseline environmen­ Projects completed during the uga coal. tal studies and an environ­ past year are: In 1985, Placer plans to com­ mental impact study will begin 1. Analysis of coal samples plete ongoing work, design the in 1986. from the northwest Alaska coal haul road and construct a DIAMOND ALASKA program (State D.G.G.S. fund­ 5 mile pioneer road to provide (Bob Stiles) ing). four wheel drive access to the Diamond Alaska began the 2. Analyzing coal samples Center Ridge mine site. The environmental impact state­ from the Cape Beaufort and company will also conduct ment for the project and will Dead Fall Syncline drillng additional environmental soon be filing additional per­ program by Arctic Slope Con­ baseline work and begin the mit applications as well. The sulting Engineers (State fund­ mine permitting process. Draft EIS is expected to be ing through Alaska Native Placer feels that an invest­ written in July of 1985 and the Foundation). ment of$30 million and a work final EIS may be complete as 3. Qaulity control analysis force of about 130 people can early as December 1985. The and assessment of coal ship­ produce 1 million tons per year project hopes to be fully per­ ment from Usibelli Coal Mine at competitive prices, as well mitted by early 1986. (Usibelli Coal Mine funding). as being ready for rapid ex­ To date, expenditures for continuing projects. pansion. baseline environmental and 1. Fine coal washability of CHUGACH ALASKA planning work has cost $10 Alaska's coals. Washability CORPORATION million. studies are bein,g conducted for (Pio Park) To date, expenditures for 50 coal samples from all over Chugach Alaska Corporation baseline environmental and the State to establish practical has formed the Bering Devel­ planning work has cost $10 limits of cash reduction for opment Corporation, a joint million. cold water slurry applications. venture with KADCO, a con­ Winter ice studies attempted Scheduled completion date is sortium of Korean companies this year failed as the weather September 1985. including Hyundai, Samsung, was too warm to form ice thick 2: Design of a small coal Daesung and Samch'ok. The enough for testing. Geotechni­ mine at Dead Fall Syncline. joint venture wants to define cal work is being done on the This is a graduate student pro­ the extent of the total coal dep­ design of the port site trestle. ject using information and osit by the end of 1985. Test burns on coal samples cooperation from Arctic Slope ¥Though the deposit has com­ sent to Japan resulted in ex­ Consulting Engineers. The plex stratigraphy, the Korean tremely positive results. The project involves detailed test­ companies are not intimidated tests showed the coal was clean ing of mechanical properties by~ the mining problems and burning, and was easy to fire. of overburden cores. have an existing marketing The biggest surprise was that 3. Projects on environments system. The agreement in- the coal performed extremely of coal deposition of Nenana,

11.2 Beluga, Little Tonzona, Cape a variety of services to the 150 megawatts of power for Beaufort and Kukpowruk fields mining industry. Hawley Re­ local consumption as well as is continuing. It is anticipated source Properties, a wholly distribution to the southcentral that some of the data will be owned subsidiary ofHRG, was Alaska electrical distribution availabie by this fall. formed to take an equity inter~ . system. MPP Associates: MPP est in mining properties. The The coal which will fuel the Associates has not proposed Wishbone Hill leases were power plant will be mined from selling kilowatt-hours from a Hawley Resource properties • the Wishbone Hill District of mine-mouth coal field power original acquisition. the Matanuska Coal Field. The plant to an Alaskan utility; Cook Inlet Region, Inc.: Cook . power plant itself will be locat­ however, their finance and Inlet Region, Inc. (CIRI) is one ed less than two miles from the lease plan comes close to rem­ of twelve regional corporations mine and will be interconnected oving all the risks from the established by the AlaskaNat­ with an existing transmission buyer. (See the Adak wind pro­ ive Claims Settlement Act in line approximately one mile ject where a vendor has indeed 1971. A diversified, natural re­ away. agreed to sell kilowatt-hours). sources based company, por­ The Matanuska Power Pro­ According to C. Hawley, the tions of CIRI's land holdings ject will have a gross generat­ Public Utilities Company of contain significant amounts of ing ca'pacity of170 megawatts. Colorado entered into a sim­ proven oil, natural gas, coal Since nearly 20 megawatts of ilar type of agreement, and and mineral reserves. electricity will be required to with over a year operating ex­ MPP Associates believes that run the in-plant equipment and perience the innovative con­ the MPP will be the most eco­ systems, the net generating tract has been successful. nomical source of electricity capacity (electricity for MPP Associates is a group available in the mid-1990©s and distribution) will be approxi­ of private, professional com­ beyond. Development, con­ mately 150 megawatts. panies dedicated to the devel­ struction and operating costs Coal to fuel the MPP will opment and implementation of are projected to be low due to come from the historical Wish­ the Matanuska Power Project the availability of surface bone Hill District of the Mata­ (MPP). mineable coal, the close prox­ nuska Coal Field. The Wish­ As a group, these companies imity to available labor, the bone Hill mine will be a truck/ have all the technical capabil­ nearby rail access and the shovel surface mine producing ities and financial resources to existing infrastructure of the 700,000 tons per year of run-of­ design, build and finance the Matanuska-Susitna Borough. mine coal. entire MPP. The preliminary estimate of Final reclamation of the mine Signal Energy Systems, Inc.: . the total cost to build the MPP area will include revegetation Signal Energy Systems, Inc. is approximately $410 miiJion with native grasses and woody (SES) is one of the Signal Com­ (in 1984 dollars). The power browse species to provide moose panies and a leading developer, plant itself, including the en­ habitat. builder, owner and operator of vironmental systems, will cost As of April, 1985, MPP As­ energy facilities. SES has suc­ in the range of $2100 to $2150 sociates has spent about two cessfully developed, financed per installed kilowatt. million dollars on a pre-feas­ and built over $1 billion in Once the feasibility of the ibility study. Also, Rocky en~rgy projects, primarily coal MPP has been confirmed and Mountain Energy bid $12,174 f~cilities and refuse-to-energy the appropriate commitments for the right to explore 5,224 pl~nts. The Signal Companies, to the project are made, all of acres in three state tracts along Iric., is a multinational high the funding required to design Moose Creek and Wishbone Hill technology and engineering and build the project can be which are adjacent to existing company with over 55,000 provided by the private sector. leases controlled by the firm people employed worldwide. The engineering; construction and Hawley Resource prop­ 'Ro'cky Mountain Energy: and operational phases of the erties. Rocky Mountain Energy MPP will not require any loans, Rocky Mountain will pay $3 (RME), the mining subsidiary grants or subsidies from the per acre per year in rent and a of Union Pacific Corporation, State of Alaska. royalty of five percent on the has four coal mining opera­ The Matanuska Power Pro­ adjusted gross revenue from tions located in southern Wy­ ject is a mine-mouth coal-fired any coal mined. A 1.5 million oming. One of these is a truck/­ power plant project to be locat­ dollar feasibility study will be shovel operation similar in size ed approximately 50 miles needed before the project can to the planned Wishbone Hill northeast of Anchorage near get underway; however, such a mine. PaJmer in the ~atanuska Val- study will be done only after Hawley Resource Properties,, · ley of Alaska. , some strong expression of in­ Inc.: Hawley Resource Group, The MPP is planned for com­ terest has been received from a Inc. (HRG) is a privately held mercial operation in early 1991 utility. MPP can be in opera­ Alaskan company that offers and will produce approximately tion as early as 1991.

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Prepared by Ad Art, Inc. ,/ Western Arctic Coal in July, 1984, contracted with in a preliminary estimate of Development Project the Alaska Native Foundation 22.4 million tons of strippable The Western Arctic Coal (ANF) to administer the coal. If reserves are projected Development Project is .a State WACDP. The ANI" retained beyond the limits of the mea­ funded project under the direc­ Arctic Slope Consulting Engi­ sured reserves, additional tion of the Alaska Native neers to provide the profession­ strippable reserves of some 25 Foundation. Its goal is to assess al services necessary to. per­ million tons are possible. the feasibility of developing form the multi-di~ciplined pro­ -Within the Deadfall Syncline the western arctic coal resource ject. project area, 7 seams were to supply coal as a substitute . In order to take advantage identified and drilled resulting for fuel oil to communities of the short summer season in in a preliminary estimate of along the northern and west­ the arctic and gain a prelimi­ 15.8 million tons of strippable ern coasts of Alaska. nary economic assessment of coal. If reserves are projected The Phase I effort consisted the project, the WACDP was beyond the limits of the mea­ of a site investigation of the divided into two phases. sured reserves, additional western arctic coal resource and Project Tasks and Objec­ strippable reserves of some 59 a preliminary determination tives: The major tasks of Phase million tons are possible. of whether the mine infrastruc­ I included an extensive on-site -Coals at the Deadfall Syn­ ture, marine transportation evaluation of the western arc­ cline are generally of higher system; and community use tic coal resource at two pros­ quality than those at Cape could be accomplished in a pect sites; Cape Beaufort and Beaufort. Of high interest was sound economic, technical, and the Deadfall Syncline areas, seam DFS-8 which averages: environmental·manner. and a preliminary economic, 13.1 ft. in thickness, 12,200 Project Description: The technical and environmental Btu/lb., 10.5 percent ash, 5.1 high cost offuel oil is a major evaluation of the project. percent moisture, and .11 de­ issue confronting rural Alaska Only proven technologies gree dip. The initial stripping today. Its citizens are depend­ and systems were considered ratios are very low; in the range ent on this expensive resource and conservative cost estimates ofl: 1 to 2:1. Coal samples from to meet their home heating applied. During Phase II act­ DFS-8 are classified by ASTM arid power needs, This depen­ ivities assumptions will be ver­ standards as high volatile "B" dency has created hardships ified and revised and innova­ bituminous. and altered lifestyles through­ tive as well as other conven­ -Sulfur content of all coals out rural Alaska. As a resident tional alternatives will be eval­ encountered were relatively low ofNuiqsutsaid, "Fuel you think uated. in both project areas. They of it when you wake up, you The overall objectives of this varied from .06 percent to .64 think of it when you go to 5-month Phase I project 'tere percent with the majority in sleep." to evaluate the coal resource, the .1 percent to .3 percent Many state and local agen­ select a preferred· mine site, range. cies are aware of the need to and utilizing existing informa­ -Due to the superior quality come to grips with this dil­ tion, perform a preliminary of the Deadfall Syncline coals emma. Recent studies conduct­ technical, economical and en­ and its vast potential, the Dea­ ed by the Alaska Power Auth­ vironmental evaluation of the fall Syncline project area was ority, State of Alaska, Division mine development, shipping selected as the preferred mine of':Finance and North Slope operation, and village end-use. site for continued study. Bqrough point to the western All the objectives were met for Preliminary Environ­ ar~tic coal resource as a poten­ Phase I. mental Assessment: tial cost-effective substitute for Project Results: The basic -With careful consideration fuel oil for rura1 communities findings indicate the "worst of environmental situations, along the northern and west­ case" annual production rate reasonable probabilities for ern coast of Alaska. of 50 thousand tons per year mine development exist. There Aware of this potential, the (tpy) can economically serve were no serious environmental 1984 State Legislature and the every community within the constraints or "fatal flaws" market area and that increases that would appear to hamper Governor of Alaska appro­ 1 priated funds to the State De­ jnthe annual productiort rate further consideration of the partment of Community and Will reduce the unit .cost of WACDP. Regional Affairs (DCRA) to energy to its subscribers. Pro­ Preliminary Permitting perform a preliminary engi­ gress under this. project has Plan:, .. neering assessment of devel­ been extremely e.ncoura:ging. ·. -9 ·federal, 12 state, and 1 oping the western arctic coal Preliminary Analysis of North Slope Borough permits resource for use in rural Alaska. . Fi~ld Data: may be required. As sponsoring agency for the '· ·. -Within the Cape Beaufort -12-24 months are estimated Western Arctic Coal Develop­ area, 4 of 26 coal seams were to process federal permits and ment Project (W ACDP), DCRA identified and drilled resulting 7-8 months to process state

Il.4 /A ANDERSON TUG & BARGE

\ : PORT OF SEWARD ~ TRANSPORTING ALASKA's ~ ~ RESOURCES

(907) 224-5506 'i. and local permits. POTENTIAL TOTAL DEMAND zebue and $13.70 per million Preliminary Market Eval­ Btu in Stony River. uation: Tons/Year -Burning coal in place offuel -127 communities were iden­ COMMUNITY 268,000 oil would result in cost savings tified in the market area which MILITARY 148,000 for residents of every commun­ stretches from Wainwright to FISHING 5,000 ity in the study area even at Kodiak Island, including the the "worst case" production Aleutian Chain, and stretch­ MINING 93,000 level of 50,000 tpy ing inland to the limits of barge -TheWACDP has the poten­ navigation on most river sys­ -GRAND TOTAL : 514,000 tial to displace over 50 million tems (see Figure 3) Preliminary Economic gallons of fuel oil annually by -Total potential market de­ Evaluation: the year 2008. mand for all sectors is esti­ -The mine scenario employed Based on these findings mated to be in the vicinity of the "worst case" production along with the conservative 500,000 tons of coal annually. rate of 50,000 tpy mine located approach use, the advancement -The potential maximum de­ in the Deadfall Syncline pro­ of this project into Phase II mand is large enough that at ject area. Using this mine sce­ should result in improved pro­ this time it is reasonable to nario gives a conservative pic­ ject parameters and a well­ postulate that even with sig­ ture of the feasibility of the defined mine, shipping and vil­ nificant reductions in demand, proposed mine since many of lage end-use concept. a sufficiently large market will the capital and operating costs exist to accommodate a small of coal mines are subject to coal industry in the western considerable economies of arctic. scale. The following are the resultsofevaluatingthe50,000 MJLITARY ENERGY DEMAND tpy mine: -A mine production cost of MilitarJ $76 per ton was calculated l•ttellatiot Tota -Handling and distribution costs add approximately $19 Ir Cape Lf sbourne 3821 per ton to the cost of coal Kotzebue 2858 -Sacking of coal in 100 pound Tin City 3618 Galena 4083 burlap bags add approximately Cape ,._h• 3061 $55-$58 per ton Cape R011anzof 2713 -Total costs of delivered coal Cold Bay 3011 King Sal­ 973 to Kotzebue equals $7.1Q. per Siteaya 40144 million Btu ($108 per ton) and Adak 48742 IC.odiak to Stony River equals $10.05 35011 per million Btu ($182 per ton). MILITARY DEMAND In comparison, diesel fuel costs GRAND TOTAL 148,036 $10.14 per million Btu in Kot-

''In my experience cleanliness, with respect tu coal handling, is 90% the attitude uf mana,;e­ ment and 10% equipment. Because management (Seward) has the ri,;ht attitude, the e£JUip­ ment problems can he easily solued. First ship loading problems not unusual. The lessons !t•arnl'd in loadin,; tht• pn•t•ious ships ltat·t· ht•t•n nduah/1' in ascl'rtainin,; ll'hat {ixl's art• 1/t'l"t'.~-~ary inordt'r to mal•;: this,facility truly tht• shu11plru·•· ltntlt·nc)· u/ till' tcurlrl ...

!Jick Stu/una .llunugt•r u/ Nt•st·an·h & IJ.·!'dutJII/t'lll ( 'ulll't'.\'OI' /'rutlucts .llur/tll Fll.~fllt't'ring Cu/1/flllll.\'

II.5 LONGSTAFF ENGINEERS INC

ELECTRICAL

DESIGN, PROJECT MANAGEMENT a INSPECTION

• Commercial I Industrial Parks

• Retail and Office Centers

• Hotel, Motel or Housing Projects

• Municipal Water and Waste Water Systems

• Utility Power Distribution Systems

' 2002 POST ROAD, ANCHORAGE, AK 9950 I

(907) 276-7933 Alaska's Energy Resources

Part II: Coal Written and compiled by Dr. Gene Rutledge

resources were tons 1977 ARERPP report. '!'his means 37 percent to 63 percent of the coal resources of the nation are in Alaska, even though the Alaska land mass is only 16.2 percent of the entire United States. Not only is the quantity huge, but the sulfur content is very (i.e., 0.2 weight percent as compared with western coal at about 0.6 percent, considered low) in most areas. As compared with the world, the percentage in · is 9 to 20. To move from "resource" to "reserve" reQuires an expenditure of large of money, including extensive drilling, to pinpoint the exact size and location of deposit. Alaska's reserves are small now but are increasing as markets develop that justify the exploration expenses. Early records show that English explorers were first aware of coal in the vicinity of Coal Cove(PortGraham on Cook Inlet) when Natha· niel Portlock stopped there in 1786. Samples of the coal were taken aboard Portlock's ship and found to burn well. Nine years later, in 1795, Alexander Baranov, then Factor for the Sheilkov-GolikovTrailing Co. in Alaska, experimented with coal from the same area, possibly for use in smelters. In 18fi0, mining engineer Peter Doroshin, the Russian Trading Co. with finding exploitable Alaskan resources than furs, examined coal Coal Cove. In this same in·ve11ti1!a-H tion, Doroshin also visited or at ·samples from coal beds in Southcentral Region at 1\.llcn•enoa~ Bay; in the Southwest Region Unga, PortMoller,and Korovin Bay; in the Arctic Region at Cape -Lis­ burne and in the Southeast Region at Sitka and Kootznahoo Inlet. On· his return to Russia in 18fi3, he urged the company to begin mining opera.uons 'a' Coal Cove. In lllfifi, the American Trading Co. first coal mine in Alaska .. Cove on the Kenai Penin· · the 19th century, whal· and U.S. Revenue cutters·. coal from beds near and Corwin on the The riverboats plying Yukon and ~uskokwim rivers gold miners ll.nd trappers also small quantities of coal wood was the more In 1888, the Wharf Mine Graham on Kachemak supplying lignite on a com· basis. During this same (up to 1902), several prospects the Home·r area were p- 2 ALAIIIA'S ENERGY RIBOURCU Week of Fet>ruary 20, 19/U Energy roadmap charts resource, Energy "Roadmap" site, operation, issue for series Anearlyprobleminevaluat­ Comprehensive Energy Planning Elements ing Alaaka'a energy resources was developing a chart, or .. roadmap," that would spec-­ ify where we stood and where we wanted to go. 01160.. eo.! Wind After many months a table 123-1 (12-1 of energy planning elements wae completed. In any energy TIIM Wood Oilier planning, one needs to know: • TheeMrgyresour

W- of Febtuo!l' 20, 19/U ALAIIIA'S ENERGY RIIOIIIICU P-3

In an effort to quell the debate teet the high coat; an act they Coal field late in 1919, created in the classic environemn&a· called tbe Cordova Coal Party. both the market and tranapor- Coal is stripped Coal list/developer straggle, on No- Between 1888 and 1914 the tationa neceeaary for large •• vember 12, 1906, President total reported coal production acale coal development. at Usibelli Mine Continued from Page 1 Theodore Roosevelt withheld of the Territory of Alaeka waa After the Riley Creek Bridge all Alaska public Ianda from 47,969 short tone, valued at at McKinley Park was finished mined and ai railroad to the entry under the Coal Lawo. about $362,000. in 1922 the Alaeka Railroad Strip mining ia employed by end of Homer Spit wae built. Congreae validated hia ac· Moat of this cool came from was complete between the City the Uoibelli Mine Co. at ita Later, mining lagged in tiona a year and a halflater, on the Wharf Mine at Port Gia· of Seward and the City of Poker Flats aile in the Nenana Alaska ae the Pacific Coaat May 28, 1908. ham, which produced up to Nenana. field. markets were captured by rap. Congreaaional testimony re- 3,000 tone oflignite- year at Between 1916 and 1940 coal idly developed fields in Waeh· vealed that certain General a price calcolated to be about production increased steadily The surface matteria cleered ington, California and British Land Office (GLO) personnel, $7.50/ton. to 174,000 tone. Primary pro- by a 36-yard bucket on an $11 Columbia. on the Bureau of Forestry pay· The total production figure duction waa of bituminous coal million dragline, which then On June 6, 1900, the coal roll, were hired to delay the alsc!iacladee several thousand from the Wiahbome Hill die- permits aarface mining. lawo of the United Statee first GLO Land tranaferproceaoand tone· of coal mined from the trict of the .l'datanueka Coa1 Rubber-tired front-end load- were elttended to the Territory were leaking information to McDonald Property on Bering Field, and of aubbitaminoua en are ueed to load from the of Alaska by making it poaai· Pinchot toembaraoe Ballinger. Lake in 1907. coal from the Healy and San· eltpoeed coal seam into 44·ton ble for proapectoro to claim Due to the Pinchot-Ballinger Not included in these data, trana areas of the Nenana Coal capacity trocka. coal as a locatable mineral controveray the Government_ however, ia the output of a Field. Many coal entries, made processing of coal claims mine on Chicago Creek on the . Until1943 virtually all coal The mammoth trocka move under thia act in the Bering baited, leeving the claimante Seward Peninsula operated in mining in Alaska was by un· from the mine aite to an under· River and Matanaaka Valley in the poaition of having to do Conjunction with local gold derground methode. after that ground concrete hopper on the coal fields, were not valid be- annnal .....,..,ent work bat miningoperationeand reported surface mining was the rule. eaatbankoftheNenanaRiver, cause the law only permitted unable to remove or sell coal. to have produced 60,000 to The military build-up in the discharging the coal into a location on ourveyed land and Hence,m-oftheclaimawere 100,000 tons ofcoal in ite three Anchorage and Fairbanks large circular hop- where there was no surveyed land in abandoned, with only two of years of activity. areae, because of World War gravity feedl the coal into a the Alaskan coal fields. the original 900 claime going There. were also mines at II, created a market and pro- croaher. The Coal Act ef April 28, to patent. Herendeen Bay, Chigmk Bay ject incentive for further .,.. 1904 changed the survey pro- Several railroads planning and Unga leland, operated in ploration and development, The croaher at the baee of the concrete hop- proceeMS vision. however, and moet1 of to traneport coal were never conjunction with local canner- and additional mines were the earlier claims were re- built and the coal indaatry in iee. Another coal mine operat- opened at ,Healy, Nenana, the coal into 1 7/8 • 2-inch located. Alukadied. ingin the early 1900a is known Jarvia Creek, Broad Pan, chanka and feeds the coal into About 900 claims were filed Daring thia period, Aluka above the Village of Kiana on Coettollo Creek, and in the Lit- a conveyer belt at the rate of under thia Act, bat becaaae of production oapplied only two the Kobak River. tie Snaitna and Wishbone Hill 600 tone - hoar acrou the cl'eim frauds by a few corpora· percent of the territorial coal After purchaeing the AJae. areaeofthoi Matanuaka Valley. Nenana River into the tippt. tiona all of the claims became conaumption, the remainder kan Northern Railway, Preai· Mosl. of these ventUD!Ii were area. eaopect. being imported from British dent Wileon intentionally chose short-lived, although produc- The tipple ia an A·frame The magazine Collier's Columbia, Aaatralia, Japan, a route close to or paaaing lion roee rapidly through the atractureoettingatop40feetof W"A)!y 'publicized the matter or the State of Waahington at through the Matanuaka, Sa- next few yeare to 412.000 tona gravel fill material through of aakan coal claims, mak· an average retail price of $15 aitna,BroadPaee,andNenana in 1950. which the tunnel-. lthae ing the iasue a national acan· -ton. Coal Fields for the continliB· The military market grew eo a capacity of 15,500 tone of dal and triggering a feud be- · Conaum;,.,. who had to bay lion of the Alaeka Railroad rapidly that the changeover coal. tween Gifford Pinchot, Chief expenaive imported coal while (which began in 1914). from coal to dleael fuel by the oftheBureauofForeatryanda· lOcal coal ahoald have been That aame year, Congreaa Alaska Railroad in the eerly Here the coal ia loaded auto- well·known preservationist available for $3 per ton, were enacted the Alaska Cool Leas- 1950a did not adversely affect matically bycompaterizedcon· and R.A. Ballinger, Commie- understandably unhappy. ing Act which aaaiated the de- the Alaoka coal industry. .trlitinto the unit trains -· oioner of the General Land Pinchot wae burned in effigy velopment of coal mining in In fact, production between . ing beneath the tipple atrac- Office (now the Bureau of Land at Katalla, near the Bering the Nenana. Matanuska and 1950 and 1953 .. doubled to a ture. The traine are Jooded in Management). River Coal Field, and the p..,. Bering River Coal ~'ields. peak of 865,000 tone motion. Just beyond the load· Later Ballinger was ap-. pie of Cordova sl)oveled aev·· The building of the Ala•ka ing chute ie a couple-weigh·in pointed Secretary of the In· era! tons of imported coal into railroadtotheMatanuakaCuul See COAL, Page 7 motion scale. terior. Prince William Sound to pro- field in 1916, and to the Nenana •. Pap • ALAMA'I ENERGY RISOUACE~ W-!k ot fetJruar, 20. • ~4 A took at Alaska's coal. circa 1977 Alaska's coal as the experts saw it then Following is a compilation of coal sites in Alaska MATANUSKA (Southcentral), no prediction experts viewed as most. likely to be developed by the of timing, bituminous, 137. year 2000 when they were questioned in 1977. Sites "Area will require underground mining at high costs. are listed by coal field, estimated time for deve/()p­ Production will be established only if significant local ment, magnitude fin million short tons) and quality, industry is established." I followed by selected comments by the experts. "Cannot open cut- could go underground if economics permit. Good coal. Strictly cost possibility between now and year 2000." "Not enough coal use around Palmer. Owner - Paul NENANA (Interior), now, subbituminous and Olmin- flooded in 1970-71." "The Matanuska field produced coal for a great number of lignite, 6,938. years(until1967). There may be 100 million tonsofcoalleft "Already producing 700,000 tons a year." for strip mining and a possible resource of merely a billion "The proven reserves exceed 120 million tons with an tons. The Castle Mountain seam is of a coking quality equal inferred reserves in the area near Healy. Th~ resource which would bring a premium price on the market. The is certainly several billion tons, the coal are th1ck, No. 1 railroad still maintains right-of-ways into the field. There is seam may reach 100 feet in thickness. The coal is subbitu':l'· a better than average chance that this field could be placed inous B with a calorific value of about 8,200 Btu and thrs, back into production this century inasmuch as a washed with di~tance from tidewater does not have an immediate product would be produced." chance for export; there is a chance to expand production in "With the exception oflocal 'sniping,' I foresee almost no this field. The Golden Valley Electric Association states future. Highgraded to the ruination of the field. The Chicka­ they would like to have a 150-megawatt power plant on line loon area ha.. ·some possibilities. by 1985 (updated to 1983 recently). The serious drawback in the Nenana field is the EPA regulation ofnondeterioration air quality within 60 miles of a national park." HERENDEEN BAY (Southwest), 1990-1995, insufficient data. SUSITNA (Southcentral), 1980-85, subbitumi­ "I am suggesting the Herendeen Bay field be dropper! and nous and lignite, 2,395. the entire region lumped into the Chignik field because the "This area is· No.1 for potential development of a large (5 coals are found in the coal member of the Chignik forma· tion. There are no minable reserves in the field although the million ton/year) mine. (Chuitna·Beluga area)" resource may be as high as 20 billion tons. 'The coal beds "The Susitna field is relatively unexplored. Coals within the field are probably subbituminous B. although they may very greatly in thickness and there is a great deal of irregu· larity, both parellel and transverse to the beds. The ash rank up to high volatile bituminous C. One known seam .25 content is high, production of the coals would require wash­ feet thick does have a calorific value of9,000 Btu. The major ing, however a wash produced would be a high-quality deterrent to development in the area is vegetation coverage steaming coal (plus 12,000 Btu) and the coals are ranked as which makes exploration difficult. Other deterrel)ts are high volatile bituminous B." probable high faults, steeply dipping beds, environmental "For export.market, including West Coast, United States. considerations and the general social political problems that would be associated with the development in this par· ticular area." CHIGNIK (Southwest), 1990-plus, insufficient · "The Beluga Coal Field has active leases, but the low rank data. of coal and the cost of a port facility are deterrents to "Lack data - possibly significant production if a good development." resource base can be established." "A small mine for export is hard to justify because of very "Important only for local use." high harbor construction cost, a minimum of 5 million tons "Possibly developed by Natives for local use and limited ~ryear may be necessary." Benno Patsch, Place-Amex, as export." P.!li:t of the review process. . . . . ~::•;A major mine-mouth power plant Will be budt 1f the Susitna project continues, and a smaller mine may be work· UNGA (Southwest), 1990-1995, insufficient data. irig for export." "Not significant - small resource base of lignite coal. "The Susitna Coal Field is based on coals in three geo· Important only for local use." "The Unga field is very small. The coals have both a high moisture and high ash content; are either lignite or no logic ·formations deposited over a long time span, hence the higher grade than subbituminous B, calorific value less great variation in rank and properties between the older 8,000.1 would conclude there are no immediate prospects for Beluga Coals and the much younger coals of the northern developing this coal field. Possibly developed by natives for part of the Kenai. The older, higher-r~nk coals do occur in local use and limi.ted export." the Northern Kenai, but only at depth~. ·.... 1 NORTHERN ALASKA (Arctic), 1990-plus, JARVIS (Interior), 1985-2000-plus, subbitumi- 345 billion to 4,7-plus trillion. nous and lignite, 76. "Very large potential production, but only when price "New small group will start drilling shortly- has been becomes significantly higher." mined in past 10 years." "Depends on coking coal situation - beds not all thin "Perhaps local markets." 11· · . some 8 to 20 feet thick. Area handicapped by lack of "The Jarvis Creek field is small and\probably stripping knowledge." 1 reserves will not exceed 60 million tons. Total resource, of "The Northern Alaska Coal Fields are great." course, is several times this but not of major significance in "There is one USGS report that I believe gives a theoreti· comparision with other coal fields in the state. The coal is cal resource of over 3 trillion tons; in general, the coals are of subbituminous B, calorific value about 8,200 Btu. There is fair quality. There are excellent steaming coals in this area. one possible development in this field. A local group has In addition, in the western region; there are known coking been drilling and exploring the field at the present time with coals. Although this resource is large by any standard you a consideration of a mine mouth power plant, possibly 50 wish to use, the inhospitable climate, Native lans claims, megawatts, which would supply power to two or three environemental and transportation all will combine to pumping stations along the pipeline and backfeed power to delay any large scale development in the area. Historically Golden Valley Electric Association. the Village of Barrow and Wainwright used coal as a fuel. WH. ol FetHwry 20. 1-Al.UKA'SI!NI!RQY RI!SOURCI!S PIMJO 5 • Looking back Continued from Previoue .Pace· 1984 Update There are several reasons why I do not believe this practice . ~e real world ?f _1984 has a!town us just how will be revived. However, when you consider the economics, hm1ted expert pred1ct1ons can·be on occasion. coal would be certainly a much cheaper and more dependa­ For example, in 1977 no expert suggested export of ~sibelli coal to a Pacific Rimcountry; nevertheless, ble fuel than oil. Here is one consideration for you- I have m May 1983 a contact was signed between Suneel discussed the possibility at various times with BP and and Usibelli Coal Mine Inc. to supply coal to the ARCO, there have been Canadian developm!!nt related to Korea Electric Power Corp. power plant. · transportation of coal in a slurry with oil.as a carrying Also, the suggestion that Golden Valley Electric liquid. Therefore, it is not inconceivable that coal could be Association may have a 150-megawatt (coal) power plant on line by 1983-84 was off baaed, as well as the mined and transported through the pipeline after the peak use of coal to supply power to "two or three pumping oil production in the area has passed." stations along the pipeline." . . Coal resources at_ Chicago Creek (near Kotzebue) were completely overlooked. The Bering River field BERING RIVER (Southcentral), 2000-plus, looks more promising fonecoverj than predicted in insufficient data. 1977...... "Very complex geology - production will require more . On a more po~itive !lOte with respect to the predic­ ~ons of our adVllien, many of the coal leaseholders effective means of mining." such aa Diamond · Shamrock, are very actively "Good coal, but too broken up-structure justimpossible. iJ?volved in trying til make our "experts" who pre­ Will never go anyplace. Pipe dreams. Real good coal, but ~lcted a near-term 5 million ton per year mine look botched up. Beds cannot follow. Japanese looked atit, but hke prophets. no.', Since 1977, the State of Alaska, under Ross Schaff that state geol«>giat, has expanded our knowledge of "The Bering River field coals grade from lignite through the hypothetical, speculative and identified coal anthracite, depending on the amount of folding and fault­ resources in the state with a limited budget. ing the Colli beds have been subjected to. This fact makes -In order to meet the moat optimistic predictions of projection of coal beds very difficult and would be unfavor- coal ~se and export, both the state and.the industry mus~ mcrease ':xploration activities to determine the able in attempting to mining plan." · _· Ql!ahty, quantity and location of the state's coal · "Possible test area for bore hole hydraulic operation or ail resources. a pilot of in-situ techniques tesiing." · ·

EAGLE (Interior), 2000-plus, insufficient data~ "Not significant_, lacks daQi _;_ only a few ~I outcrops Alaska's huge resources known." . . -, . - . of "No way - not even local use - 4-foot thickness coal are matched by maximum." . , _ , ._, huge recovery obstacles "The Eagle field is an interior field. I tis not at the present time at least close to transportation corridors and there is The following1977 coal forecast is from the Alaska little present demand for the coal within the immediate Regional Energy Resources Pl4tJning Project volume area. The coal is subbituminous.B, calorific value is about on, coaL) 8,000 Btu.", · - · Alaska's potential coal resources are enormous but are widely dispersed throughout the state and vary considerably in quality and potential recoverability. KENAI (Southcentral), 2000-plus, subbitumi­ Deposita are known to exist in Southcentral and Southwest Alaska from the Bering River region to nous and lignite, '318. the Aleutian Islands. "Anticipate production along Deep Creek- but more in In the Interior, deposita are known to exist in a dozen locations, ranging from near the Canadian the south Kenai." , · border to the Alaska Range southwest of Fairbanks. "Coal only about 6 feet thick. Operations at Homer until The largest deposits are found on the North Slope, the middle 1960s. Do not believe Kenai coal is the same as extending eastward in a broad band from the shores Beluga - not a good Btu, not as thick." ofthe Chukchi Sea through and beyond the National "The Kenai coals rank from lignite to subbituminous B, Petroleum Reserve, Alaska. · high moisture and high ash content. The resource appears In evaluating the potential recoverability of these resources, experts were requested to rank 12 coal very large, but the actual reserves are very small. Consoli· fields in terms oflikelihood ofdevelopment before the dation Coal baa a prospective permit in the araa and may year 2000 and to estimate when development might develop a sizeable reserve. The disadvantage of the coal is occur. quality, and the se&lD8 (2 to 7 feet). The advantage of the Experts asked to identify other areas in the state that may be of development interest were: field that is very close to ti~ewater and it would not be as • James Callahan, U.S. Department of the Interior, expensive to construct a JDCJOtage facility as on the westside Division of Geological Surveys; · of Cook Inlet. Land cl~ms and environmental factors could • Ernest Wolff, Mineral Industry Research Labora· delay production from the field for a great number ofyears." , tory, University of Alaska; · "With the exception of Homer subsistence use, there is · ·--. DGGS staff, State of Alaska, Department of Nat· ura1 Resources, Division of Geological & Geophysical little hope." Surveys; · !f • Robert Sanders, geologist, Federal Energy BROAD PASS' (Southcentral), no time esti­ Administration; • Robert Bottge, mining engineer, Alaska Field mate,subbituminous and lignite, 64. Operation Center, U.S. Department of the Interior, "Not significantly small resource base of lignite coal." Bureau of Mines. · In evaluating the responses to our· request. we "No way - low grade." found general conliensua among the experts that "Broad Pass coals .Jlre near surface within easy access to three areas in the state would almost certainly be the Alaska Railroad. Unfortunately, the coals rank as lig­ developed or developed fu#er before the year 2000. nite to subbituminous B, with a calorific value ofless than These were, in order of tlining, the Nenana field, Suaitna field and the Jarvis Creek field. 8,000 Btu. A serious deterrent to development of the field is In addition, sevt'ral of the experts were impressed its close relationship to McKinley National Park. with the possibility of development inthe Matanuska See POLL. Page 6 Poge e ALAsKA's ENERGY RESOURCES week of Februory 20. 1984

area. pipeline and activities at economical mining is not con· in centntl Aluka, which could The Matanuska coal field, Valdez. oidered feasible. be used to supply power for although not highly ranked by Problema with most of the The Eagle coal field has possible copper development • Poll the experta, did impress some remaining fields are due lar· many of the same geological in the area. provided adequate Continued from Page 5 as a possible site for c:oal rec· gely to the geology of the coal problems as Kenai, and is also coal reserves are confirmed. overy before the year 2000. deposita. very remote. Exploration forcopperisnow The coals are of higher qual­ In the Kenai, for example, The U nga Island field is unde~ay. &J;ld the area i~ field and at Herendeen Bay itythan thoaedeecribedabove, the deposita are generally thin, small, proximity to N aaonal thought to have very signifi­ and/ or Chignik on the Alaska ranging from bituminous to and thus do not lend them· Parka would di8courage de­ cant potential. Peninsula. .Agreement on these semi-anthracite. selves to economical surface velopment. The other field is a discovery fields; however, was not as The sulfur content is low, mining. In addition to the original on the Tonzona River west of atrong. and healing values range from In the Bering River area, set ofl2 coal fields deecribed Mount McKinley National Several areas were classified 10,400to14,000 Btu's per pound, there are numerous small dep­ above, two of our exPerts each Park, which is believed to be aohavingcoal which would be approachingtherangeofhigh ooita of very high quality coal, mentioned one additional field large, with a coal aeclioil up to difficult to recover economi- grade coking i:oal. but the coal seams are so with significant potantial. 120 feet thick, including non­ cally before the year 2000. The Reserves are not large, bow­ broken up and ac:attared that One is the Kobuk River field coal partings up tolO feet thick. Nasona for these cOnclusions ever, and there ia some con· are diocuaaecllater. cern regarding the economic Amongtheareasconoidered feaoibility of recovering the almootc:ertain to be developed, coal. the Beluga district of the Su- The final areao given some oitna field iJo by far the largest. chance for development before The total Suoitna field cov- the year 2000 are Chignik and ent almoot 6,000 square milea Herendeen on the Alaska Pen­ andiaeslimatedtocontain400 inaula. Theaetwofieldamayin to 700 million tone of coal rec- fact be part of one larger field, overable by strip mining with although there iJo some di&- modern technology. 8greement on thiJo point. Thecoalvariesaomewhatin The quantity of coal is not quality, ranging from oubbi- large, but the quality is bitum­ tuminoua to lignite. inoua grade with healing val- Beluga coala are heating uearangingfrom9600to12,400 values ranging between 6,300 Btu's per pound. and 8,900 Btu's per pound, as Sulfur contant iJo somewhat received,but9,400Btudriedto higher than other Alaokan 10 percent moioture. coals, ranging up to 2.3 per- The other major coal field cent for some Chignik coal. almoot certain to be developed The potanaal for develop­ further iJo the Nenana field ment at CJJignik and Heren­ southeaat of Fairbanks along deen deriveo primarily from the north flank of the Alaska the quality of the coal and ita Range.Extntctablereaerveoof ready acceaa to a deep-water coal in thiJo field are estimated port. at 95 million tons. , . Other poaoibilities do exiJot. The coal iJo aubbitnmil)ouain however, for future coal devol­ quality and low in oulfur, with opment in northern Aluka. heating values ranging from Some coal might be mined 7600 to 9400 Btu's per pound. for electric power generation RecoverabilityofthiJocoalis and /or heating for some of already well-proven. The Uoi· thevillageaontheNortbSiope belli mine hu been operating and for oil-and gas recovery in the Nenana field for nearly activities. forty yeara, supplying coal to In addition, there iJo a poaoi­ Fairbanka. ·the University of bility that in the. future, Nortlt AlaskA and militarY facilities Slope coal could .be finely in tbe area: around ~nd tranaport8d Operations in the Nenana through the Alaska pipeline in Field are expected to expand a slurry mixed with petroleum. overthenext20yearatoaupply ThiJo would have the adcli· the increased demand for elec- tiona! bonus of extancling the tric power in the Fairbanka:.~lit.=e~o~f~th~e:petro::::Je:um:!fi:e~Jda~,th~e~::::::::::::::::::::::::::::~::::::::::::::::::::::~ Assisting Government and Industry Develop Alaska's Resources . .. For Now and The Future .., .,. ---ENERGY wmR / .o Hydroeleclrlc Generation •· .. 0 Wa11r Sui1P1V n1 Tllllmlnl 0 RlgiDoal ... River Basin Pln*lg tnransmisskln and Distribution 0 Wallr Qual1y nl Wlslewlllr Tllllmlnt 'hCoinbustion Turbine Generation 0 Dams, Dials, Con!nll Slruc:Uns :o Eleclric System Management 0 Flood Mwgena1l ... Drainage 't:l A1temative Energy Planning UNO 0 r.tni1g ... waste Disposal ·- 0 lndus1rlaJ waste Management 0 LJnd Use ... Environmentall'lmillilg 0 Transpomtion. and Com~niiY lnfraslruc:lln 0 Agrlcabn and Irrigation

HARlA ENGINEEfJjNG COMPANY Consulting Engineers 2ID Wilt flftldl ~-lf!cllcnge, Alaslca 99501 PloiS. Rid, llliiil.nt*-' (9111)2711-U15 ~~.DC _ot__,20,1111U~'8--Pege7

ft. of c:orin1. It haa also eom- Japan;the1,200-loalndkaam· Ongoing development pleteclbulkcoalaampliqopel" pie paaaed ahippiq and IODI· atiODII on ita state II!IIM8 and a term &torap Ieete in the open 500-ton aample waa estraeted and in silos, and did not epon· Coal mine activity listed for shipment to Japan. taneoasly combaat. The company baa indicated The plan toconatracta coal- it may submit .a mine permit to-methanol convenion plant By ROY IIElUUTT ftliona: a 62 million loa tiCOJiomically apptication lhia year and ten- near the proposed mine haa nos--totN.-Ja-, • valley CoeJ Co. and Rocky minable-of high-grade tatively plane to be in prodac- baen at least temporarily Dhlalaa olllooiGCiaoload Mountain Enero completed bi&aminoaa (a....,...m112,500 lion by 1988, aaauminl a 111111'- ahelved. ~....,. an extensive exploration dril­ Bta) and antracite (a....,...m, ketiafoand,withthefin\ahipo Problema with the_...... Private indaatry haa bean liq prGiram- and OOIIth­ 15,800 Bta) coal meat of coal by 1989 or eariy involved the lltreDith charac- enppdin larp-ecalacoal .... - of Wiahboiut Hill in the ploration drillin1 pi'Qir&Die Matanaaka coal field d...U.. MA.IOR COAL LEASES IN ALASKA and 8lllineerin8 and premine the a~~mmer of 1983; atadies in several areas .of • Fov So11th Korean firma l.elllholcler eo.! Field ~TJPe Alaeka iil the put f- yean. in cooperation Mach of lhia activity haa withtheChiiii"ChNativealnc., bean on esistin1 state. federal completed drillin1 in the Ber­ 1. Beluga Coal Company a. Beluga a. State/Native andNativecoalleaaetracteon inl River field, abollt 70 ...U.. (Placer Amex) b. Capps b. State esistinland haa been centered -ofCordova. c. Matanuska c. State in -~ntral and interior Exploration in 1981 proved 2. Delta Coal Company Jarvis Creek U.S. Bureau of • Alaska's coal Land Management 3. Diamond-Alaska Coal Co. Beluga Stata (Diamond Shamrock) CoeJ prodiiCiion waa erratic Ret!ion Inc. aa a reealt of a d11rin1 the next twelve yean, tluee-way (Federal-State-Nat­ 4. Meadowlark Farms Nenana State b11t eventually clecreaeed aa ive) alf'eOment. However, the a. a. mi6tarY and indaatrial con­ coal may only be recovered by (AMAX Coal Company) b. Beluga b. State aumera in the Anchorap area in·situ proceaaea from the converted to nataral IU and · MooaeRanp. 5. Mobil 011 Corporation Yentna State oil fuels by 1968. Between 1971 and 1977 pro­ Currently, the only major 8. Morgan Coal Company Northern U.S. Bureau of diiCiion remained fairly stable commercial operation of coal Land Management atabollt700.000touannually. in Alaaka ia from the Ulibelli By the mid-1970s, the fed· Mine Near Healy, in the Ne­ eraliJUvemmentbadclaaaified nana CoeJ Field, wbere706.000 7. Uaibelll Coal Company Nenana State about 33 million acres of Ala· tou wera produced in 1976 by •ka aa prospectively valuable surface minin1. 8. Valley Coal Company Metanuska State fur coal. This coal, used in the mine­ The coal lando not located in. mouth plantorahipped to Fail' federal withdrawals were ..,. banke by Alaaka Railroad, A-10 foot-ofan­ 1990. PnJiminary miDI plan terietica of the coal, the poor lected by Native corporations belpe power the area aroand thnocite - diacovered and caUe for an eventaal pmdac- infraatnactmeofthentlionand pursuant to the Alaaka Native Fairbanke and local mi6tarY dafined durin~ the- lion of 8-13 million abort toDB ineaflicient equity aaeiatanoe. Claims Settlement Act. eatabUahmentein the Interior. • Mobil Oil Corp. haa con­ per year; The recent decline in oil pri- The extensive coal Ianda Other coal markete IIICb aa tinuedexplorationoniteleaeea • Bel- CoeJ Company (a oes and the_diecovery of aub-, remaining. in the fo'edoral Do­ the West Coaat of the United in the YentnabUin....:.Caliyon Placer Amex aubeidi8r;) blls ·· st&ntiaiPeti'Oieaind8poeiteofr main are in National Petro­ Statea and Japan, an inveati· and Johnaon Creek area. To eeeentiaUycompleted explora- the California coaat wera also l•um Reserve. Alaska(formerly ptin1 the possibility of the date, it haa completild more tion ofita Bei-Jeaaee in the important considarationa. Naval Petroleum Reserve No. fotareimportofAiaekasteam­ than 25.000 feet of proepect 811sitna Lowland weet of Bel- CoeJ Co. haa also 41, the Cbu((Beb National For­ inlcoals; driJiinl; ' Anchorap. performed a preliminary feaa. eat. Mount McKinley National Total coal prodiiCiion from • Dillinond-Aiaeka CuaJ Co. The company plane to even· ibility etady to determine ifthe Park and the Kenai National 1880thmUib 1977iaeatimated ba• completed more than· taaUy pmd-ap to 10 million Evan Jones coal mine on the Mooae Ran1e. at about 26 million abort tone 50,000 feet of exploration dril­ abort toDB of coal per year for - oida of Wiahbone Hill in Some of the coal reaoom:eaof valued at nearly $200 million. linl on ita Bel-area..._ export. the Matanlllka coal field can the Mooae Ranp wera traded aver&llinl about $7.70 per ton Thia haa involved abood 1150 with theNativeaofCook Inlet during that !f't.year period. ~~o~e.· and haa incladad 6.000 ...:.'!" == .::..=:! See IIJNBS...... 8

• Cold Regions Engineering • Civil and Strucfural EnGineering • ~ Plannfng and

• ~and Utilities Engineering • Conitructlon Managerilent • Land Surveying \ Public and Private Sector Pelroletin Industry . MineralsJndustry 313ESIIIIII,S11112 ~AIIIIll­ 'l'lllllllalil: (111)27Hn7 :-r=zr.:~ ,.,., ALMI(A'S _., RUOUACd Wftjrol,l'el>nMiy 20. 11/fU mine the feaaibility of mlDiDg · coal-aearWainwrisht .• nes on the North. Slope c:oaatal • M plain u an enel11Y ooarce for Condanecllro• P ..e 7 th! v:f:::fu Coal Mine bae practiced asucceaaful propam be reopened. . of coal mine land reclamation The area contains oome of since about 1970. the beat steam coal in Aluka Tbecompeny'scontractwith with a general run-of·mine Suneel Shipping Company heating value of 12,000 Btu. Ltd., Suneel Alaaka Corp. and If reopened, the mine would Korea Electric Power Corp. be an underground operation (KEPCO) calla for the even­ producing some 500,000 loDe tual transport of 880,000.1ons of coal per year. of coal per year to a KEPCO The coal would be trans- power planL ported via theuisleDtrailapur Coal export shipments from totheAJukaRailroadandthe the mine to Korea have been coal port at Seward: delayed until harbor facilities • Resource Aaaociatea of 818COmpletedatSeward, which AJuka (division of NERCO is now .,.pectec! by late 1984. Inc.) conducted a coal ""plora· Usibelli Coal'Miaecanetltly tion program with oome dril· employaabootlOO workers, reo ling in the Chignik area on the ceatly completed a new hend­ Aiaaka PeDiDBola in 1981; qoartera compleK, and pur- • Canadian Superior Inc. chased new trucke and other (now reorgonized under a dif- equipment. · · ferent name) clrilled the Little Overburden at the mine ia ToDBOna River coal deposita removed by the 33 cubic yard completed at Cape Beaufort tioDS in Alaeka. Thefirstaiteselectedforwork onthenortbflanltoftheAluka "Ace-in-th•Hole" drag6ne; and bae defined a major coal Thie would include. for e"­ ia at Houston in the Little Ranp in the interior in 1980; • The Aluka Division of de 'L ample, the mining of eoala in Soaitna field of oooth-central •DeltaCoalCompanybued GeolOiical and Geophymcal Alaeka. propame8:'.,.DGGScoalesploratiOD __ eompleted 111 areu oftheetateonderlain by inFairbaDltareceDtlyreceived s (DGGS) thro-..a. periiUifroe&; which w\11 present -•-· -;t from the U.S. orveya ' _.. ,_ a - ~- iouCODtnlclora,huCGIIlpleted Koyuk and Unalakleet. formidable~ for the B-oofLandM-L a geo1op: lield in....tiption In addition, a eeries of coal fotun. Tbe company hu conducted __ _. _, . ..-'"'-- -•oration .....,,. __ and faasi- """' _,..oration _...... , pro- atlaRe are in preparation hy DMEM ia DOW aloo­ _.,. _...... , gram in north-Aluka. thediYiaion lodeacriheindetail ing new coal prospecting per­ biJit)' etodiea OD ita '-tract · GeoiQiic mapping and ehaJ­ the major coal fie1da of the miteafteraaeven-year"freae" in the Jarvia Cleek coal fieltL lowaopringfailedto~ta etate; while the atate decided on the Althoqh the company was potential minable coalrMOur­ • ,... Alaeka Division of bonu iaeoe. A competitive inactivein1983,itplaneforther ceaonSL Lawnncelaland. MiDeraleandEne11!Y Manap etatecoalleuing echedole hu ezploration chilliq this year. A sigDifieant deposit of U.- . meat received primacy from a1eo been reinetituted after an The mine plan calla for a Dite hu been defined by mont 'the Federal Ofliee of Surface 11-year hiatoa. production of500 abort toD8 of than 3,000 feet of chilliq at Mining on May 2 for the im­ A coal-mined land inventory coal per clay (118118C1nal)y) to· be Chicago Creek on the Seward plementation .of the Alaeka for the etate was recently eom­ oaed for local power genera- Penineola. · Surface Coal Mining Contml pleted by DMEM and located tion and forqricoltoral grain-. . A eecond aite on the penin­ and llecliuaation Act (ASCM­ moNthan200formercoalmine drying facilities in the Delta eolaaearGro,.Cnelt(Death CRA; Alaeka Sta-41.45). Junction area; \Talley), which may boldhich The etate law ia u etringent m:,in~ miDOcl-limd • ArcticSiopeTechnicalSer- poleDtial for fo- devalop­ u the federal law, bot perfor­ reclamation plan hu been vicea Inc. eompleted geolotlic. meat. was aloo inYI!IItipted...... ,. etaDdarda have been drawn up to facilitate sit. uploration chilliq and eJIIP- More than 5,000 feet of ez­ modified to be moreapplicehle apecific reclamation activities .-ringinveetiptioDStodeter-'. ploration drilling bae be8n to ·the unique mining eondi- at poleDtial 1110blemareu.

WHk of Fe/n'uary 20. 1984 ALASKA'S ENI!RGY RESOURCES Page 9 A mutually beneficial relationship .... Coal, Al.aska Railroad grew up together small mine at Lignite Creek in larpat train in the history of 118118C1D when coal demand ie B,yWILLIAM COGHILL field. The first car of coal waa shipped from Moose Creek Apri11!l8. the Railroad coDBieting ofl64 lower. JlanqerofPiamliDg,. northeut of Palmer to Anch­ Within four years, a rail spur care powered by silt diesels on With almoat 70 years ofe"- Alaeka Rai1rolul orap on Aogoet17,l!l6. had been laid to Suntrana to atripbe-nHealyandFair- perience in moving Alaeka's TMPut Soon after, in Octoherl!l6, a eerve the Healy River Coal Co. bunka. . coal bebind it, the railroad ie Oneoftheparemountdrivea carload coal tariff wu pob­ Providing rail acceaa to the lnthemid.soa,whentheKDik keenly aware that tlie key to bebind the building ofthe Ala­ liehed. Matanukaand Nenana fielde, Arm generating plant and the succeaefolly marketing this aka Ril1road wu coal. u envisioned by the founders two military haaea in Anchor- mineral resource lies in - Sevftiy years AJrOOD March .oftheRailroad,waenow~m- age converted from coal to vidingthemoeteffective,eco­ 12,191),freeidentWilaoa-..,.a plete. natural gu, the Matanuaka nomical transportation - the Al~ka Railroad Enabling. In the 35 yeare prior to con- strip mine at Joneaville cloeed Bible. Act a;*"orizing the conetroc­ etroction of the Alaeka Rail- leaving the UaibeiH mine in The indDStry tested eeoaom­ tion 8iid operation of a rail­ road,atotalofonly70,000tone the Nenana field served by· ice uaocieted with rail mo­ road to colllleC& ••one or more of Alaeka coal wu mined. The Alaeka Railroad u the meat of coal have been in&. open Pacific Ocean harbore With the advent of the rail- only sizable operating mine gratedintorailroadoperatiOD8. with the navigable watere in road,avitaltraneportetionlink left in Alaeka. Ae an eumple, for over 30 theintariorofAluka and with wae provided, and coal prodoo- yeara the railroad hu oaed the a coal field or fielde.. .and to tion increesed dramatically. Tlw Praent oDit-trainconcePttomovecoal provide for the traneportation Although, much of the~ Tberailroad,overthepaat13 from Healy to Fairbanke. of coal... " mined in the early yeare wu yean, hu hanled more than Under thie concept, a train Tb,., the founders of the oaedlofoeltherailroad's-.., 7.7 million· tone of coal from iadedicatedtooneprodoctfrom Alaaka Railroad believed rail eaginee, oome interesting d• the Uaibelli Mine near Healy, onepointoforigintoonedeeti- traDSportetion wu eaeential 1 velopmenta toclk place. an averap of 600,000 toDB a nation. in order to develop the coal Forezample,Anchorapwae year. Ya!doperatioDB,amajora- deposita of Interior Aluka. eatabliehed u a Navy eoaling Throqh virtoally the entire peDSe to nillroade, are elimi- Within a few yean, the coal etation in1!19. life of the railroad, coal traffic natedreeoltinginlowertariffa mines of the Matanuka and Cogbill Up to 7,000 lone of coal a hu ezceeded any other eom- which are pueed on in the Nenana fielde- acceeaible year- eopplied; however, modit)'. form oflowercoetatotheeon- by rail. theratefromMooeeCreekto theNavymarketdidnut- While the amount of coal aumer. Coal beceme the principal Palmer .was 25 cents per ton rialize aa ezpected beca,. carried in recent. yeare bae Thie winter, five coal onit tollllap commodity haoled b)' and 75 cents per ton to Anch­ naval -Is etarted eonvert- remained etable, it ia ooly in. traiD8 each -k operate b. the new railroad and, acept orap. ing to oil. · - the laet few years thet gravel - Healy and Fairbanks. for very recent years, hae r. lnl!l7 track wu further ez­ 11 TbegreateatbooattoAJaeka hu eorpuaed coal in total Theaperiencegainedinmov­ mained the principal eommod­ tended to Eaka,. Creel and Coal production and rail mov. toDIUIP moved. ingcoalhubeenappliedsince it)' traneported. Chickaloon in the MataJ.Uka meat came with World War IL It ia_sigDifieant lo nota that 1977 to gravel traDSporL ·n.e coDStroction of the rail­ field. ' Coal output, which had. in1983 gravel and~ CODeti- The aame onit-train eoncept road, which waaetartedin 1915, Recordaahowthat:JO.arcoal reachedl74,000 toD8 in1940, toted over 83-percent of the adoptadforcoalhaebeenoeed j took eight ye818. trainacalled the ''Sourdough," BOOD ftpllllded.to a level of revenue lone haoled by the inthemovementofgravelfrom ~ I Bot well before Preaident operated between Chickaloon, ·between 600,000 and 850,000 railroad. Palmer to Anchorage_ Harding cliove a golden epika Eeka Creek and Anchorap tone a year from the Mata- Both of th- commodities In1983, the railroad operated at Nenana on Joly 15, 1923, during 1917 and thet the daily nuaka and Nenana fielda. DH molti-purpoH open-top up to eight gravel onit traiD8 lligDifying ofticial completion output from the Matanuka· The increaaed military a. hoppercarethatcanbeoaedin daily,movingoverfivemilUon of the Alaeka Railroad,· coal field ..... 200 toD8. maude more than offeet the Bither coal or gravellllll'vice. tone during the abort summer wae baing haoled on llllgiiUmta A year Jatar, the first coal in Railroad's switch from coal- ThieaDow.tlaibilitylomeet ...... _ of the railroad. the Nenana fiald wu tapped fired -.., to oil-fueled di-1 the aeaaona~ demands by Recent acquiaitioDS of new 'nle initial coel moved by when a coal bunker for lending locomotives. aw:itchinchoppercarelogravel · 1'1!!! eame fr<>~ th!)latluiuka railcare was built to eerve a Coal wae reeponaibl'!f!>r!lt!L .!!!'ri"" during the summer See ABR, Page 10 Pogo 10 ALASKA'S ENERGY RESOURCES Week of February 20. 191U

- ducing costs and time. TM Future viahllity of the railroad. coordinating the export of ,A, R R' -To- more effectively _utilize After seven decades of haul- The export of Alaska coal Alaska coal 10 Korea. It has • this·· new tipple,, seve·~ 3000 ing coal for rail belt cuatOiners. also -has state and national participated. in numerous meet­ horSepoWer .locomotives were tJ:!e railroad is on the verge of implications for it will contri· ings and eXtensive _negoti­ Continueclfrom Page 9 equipped with 'pace setters; a , ationsoverthe past three years. devi_ce designed to preciselr The general manager, at the heayY-duty hopper cars, the control the speed of a train_ as invitation' of the minister ·.of 'first with100·ton capacity and low-aol/4 mph and capable of- energy, visited Korea and· met 4-pocketbottomdumpingdoors being set in '1/8 mph incre- with the President and other hli.ve enhanced the railro&.d's "' ·menta. _ · · senior officials which resulted lleetof337multi'purposeopen-- Coal unit trains are now in a decision tO accept subbi.: top hopper cars for mineral eXpediently loaded in about one tuminous coal of "Alaska's service. hour.·. _ : . ..; . .. · . charilcteristics and convert two In 1983, corporate invest- How does the Alaska Rail- utility plants so they can use menta by local gravel com pan- road today compare to u.s. this type of coal. ies included the purchase of 80 railroads in' tonnage of- min· A test shipment of 30,000 new cars and the lease of 80 eral commodities transported? tons of coal, which moved by cars. In1982,'U .S. railroads trans- rail from Healy, left Anchor· The railroad has been test- ported 709 million tons of min· agefor Korea in December1980. ingrapid discharge hopper cars eral(including 624 million tons Followingtheannouncement for possible use in coal export of coal) equivalent to 60 per­ in April1911 that the test ship­ use. cent of the total tonnage for all ment resu1ts were acceptable, This is an example of the coThm~e.odiAI'tia.esska. Rai'-ad this the railroad participated in latest concepts in unit-train uv meetings which ·culminated in operation& that may be part of past fiscal year trimsported 5 signed agreements to establish the rail transport logistics of million tons of minerals (in­ a coal trade with Korea. moving intematioruil export eluding 626 thousand tons of The softening of world mar· coal. coal) equivalent tO 83 percent ket conditions delayed the pro­ In the last couple years, pos- of the total tonnage for all jected timetable and necessi· itive traction controls and fuel commodities. tated intensive and complex saverdeviceshavebeenadded In comparison the Alaska negotiations. · to locomotives to increase opet- Railroad on a percentage basis However, contracts. were fi. &tingefficiencyandsavecosta. does not carry ai mUch Coal nalized in 1983 between . the This year, the railroad pur· because :of the recent acceler­ coal supplier (Usibelli}, the chased four new ''state of the ated gravel movements; how· Korea firm, and the Alaska art" 2800 horsepower diesel· eVer, as a percentage of total Railroad on a 15-year, multi­ electric locomotives. minerals hauled, the railroad million-ton basiS. These super-series GP-49's, isconaiderablyhigherthanthe Aa presently envisioned the the first of their type to enter average of U.S. railroade. first export of coal Will move­ service on a North American Geiteratty,.the Alaska Rail· via the Alaska Railroad from railroad, feature a radar and road fits into a pattern of other ·the mine site near H.!aly 360 solid-state integrated circuit U.S. r8ilroade which brings miles to the PortofSewanllate wheelslip detection and control out the fact that bulk overland this ye~. with qu8.ntity move:­ ilystem, which dramatically volume Movements are 'the ment uain·g coal unit trains improves the pulling power of backbone of rail transporta- next year. This will begin a the locomotives. , ti.on. new eia for the railroad. A modem. rapid loading coal Thil is where the rail mode The essential elements tipple utilizing aUtomatic com· haS a clear advantage over entering the international ex· bute, in a significant -Y to necessary to provide effective puterized controls to load unit other transportation modes, port market. Alaska'eeconomicposture,and and efficient traneport of Ala­ trainoinmotionwascompleted and this is where the Alaska Tbil is a challenging -and have a favorable impact on the skacoalforexportto Korea are c in1982 near Healy by the Usi- Railroad has kept pace with exciting prospect, because of U.S. balance 'of trade. belli Co. to provide high-speed tecbnoloiiY and bas a wOalth its substantial impact on the The rai1ro&d bas played the See ARR, Page 11 loading of trains, thereby re. ofalmost70yearsofknow·how. lon~r·term earnings base and lead role in developing and

Understanding Through International Trade

P.O. Box 103577 Anchorag&fAlaska 99510 Phone: "(907) 277-2658 Suneel Alaska Corporation Telex: 25284 SUNEEL AK hu been dredged to a depth of ' · AR. R 45·feetandwill'includeal600 •• :· : . by25foottrealleconveyorplat- .form, three catwalb, five fen· Contblued ~m Page lO · der dolphilioi'·and a mooriq dolphin. · ',I alreadyinplaeeorbeiDgfirial- The Alaskil'baaed Korea 1 · ized this year. company is pivceedinc with Coal team At the Healy'miDe site; the planatoconatractthelandside Amoll6 tlwse inuolvetHn tM 1. modem tipple previoaaly dis- • unloading, itOckpiling and ARERPP otudy of cool in tM I cuaMd liu been iD operation tranaloadingfacilityon14 acres mid- to·hJte Iil10s were (left to i for two yean.'' · . · " of edjacent(Jiort land leased right) 'Don Lyon,. Greg Edb­ 'j 'lbiawillaaauretheiD-inotion from the railroad; lom, Gene RutledgeandSuaon loading of a unit coal tnlin' ' The combination of abund· Brody. · withiit ·two hoUr.. antcoBJ reaerveaalongtherail· : i The r&ilroad baa the Jocomo- belt in close proximity to tide- · 'I tivesimdcoalhandlingcarato water. a well..,.tabliahed rail· i initiate a '70-Cilrcoal unit train road with an increuingly and will be. considering the aophisticatedabilitytohandle acquiaition'ofaconaistofloco-. bulk materials through all motives and ·rapid discharge types·of terrain and weather hopper care that will be dedi: conditione and Alaaka'a atra· catedtothisexpc)rtmovement. tegic location at the eenter of The train running. time be- the Pacific Rim are important i tween Healy and Seward will advantages in aecarins entry be aboutlll hours' or24 liours' into the Pacific Rim intern&· round trip wiii{Joading and tionalmarket-the....,.which mloading to be accomplished is already known to have the Coalstudyconducted by ARERPP.team in. four hours. ·. . world'sgreateatfatoredamand Focaa of this month's "AlaalrA'• Enersr .the only person who worked fall-ti..;e with · By 11\eeting thia schedule, it for coal. Reaoareea" is coal. · laaueil included are Rutledge on the projeCt..· · can transport 1.3 million tona In nautical miles, the deep­ Aluka'a coal reaoari:ea compilred with tlie Otbera who worked oil the coal portion of of coal a year -which is well water, year-romd, ice-free port reat of the world, bistory of coal in Alaoka, the project wereGrejr Edblom; Caiol Bennet, ·above the· probable level of of Seward isl,075 miles closer the role coal hu played ill devalopment of Steve Levi, Randall · Montbriand, ·Kyle 800,000 tona a year. to Korea than Robert' a Bank, the Aluka Railroad and othero. W:eaver, Donald-Lyon, Clarioaa Quinlan. TheprincipalremaiDiDgtask Britiilh Columbia, 1850 miles . MuchoftliematerialiDcladedisfromthe. · MBrvin Olaen and Saaan Brody also aa' - the construction. of a coal closer than Long Beach, Calif. five :Aiuka Retlional Enersr Reaourcea =.,ln eection•. on·. the· Belaga.. Coal franaloadingfacilityatthePort and U50 miles closer than Plannins Proiect(ARERPP) vcilumea writ­ · Th Sydney, Aaatralia. of Seward~ ia underway. e Alaska· coal, in the mterna· ten between 1976 and 1976. l'urpoae oftheenersr aeries is to identify State of ·Aiu.ka appropriated tional trade, is now evolviDIJ Many forecaato from thoee volumes are . . enersr reao,..... in Aluka, the location of $3.6 million for a new dockiDs and the Alaska Railroad is 1iaed u a starting point far farther exami· · thoee iiaourcee. Dian's aae of them ·'and area. on Railroad off-shore playing a lead tole in maldns nationandupdating. · · ia8ae,a aaaociated with enersr· operations. It is hoped the aeries will aid readers iD Janda that will accommodate it happen first. . Work on volluneo besanln the A1aaka ohipa up tol30,000 dead-ight Transportation is the key to the detel'llliniJ!g whereAiaoka hao been, where Enersr Ofliee, Ofliee of the Governor, and it ia aow an4 where it'a going in the energy tone. this international market and later wu tranaferrecl to the Division of field. ' . Conatruction on thia, the first the railroad provides the vital Enersr and Power Development. F'uncliDs ··In.· addition to use of the ARERPP vol­ deepdniftcoal terminal iD the link betweeo thelnterioraoarce wu from the U.S. DepartmentofEnersr. IIDIH,·authoritiea onaetaeted enersr aab­ weotem United States, ia on- and tidewater. Project leader wu Dr. Gene Ratladp, jecto aJao are preparing aiticlea for the. 1oing with completion eati· The railroad hao a modem who is preparing ·the "Aluka'a· Energy energy aeries. . ' . ' mated iD July this year. fleet of locomotives and coal Reao_., aeries for Alaoka Journal of Gaeat authors in the coal luae are Kent Theoff..,horefacilitylocated handling care, a well-maiD· Collllrim:e. D. Lane, whoee background is Grinase, William Coghill, Roy Merritt, Wil- · between the Railroad dock and tamed roadbed and track­ in land planniq and Native iaoa.., wu ~ llam-ll and Rou Schaff. the Seward small boat harbor tore.

Contributing to resource development through baseline data collection, testing and mapping Page 12 ALASKA'S ENERGY RESOURCES Weo• of February 20. 1!11U Annual home heating bills of $4,000-plus North Slope: Vast resources, big bills B:r KENT GRINAGE. the National · Pe.troleum IIi,. call:r been uaed sparingl:r by are known or inferred to under­ coal in tbia area ia hi1h voJa. Enero/Utili &lea oerve Alaska (NPRA) into the the aparee indigenoua popula· lie 58,000 square miles of the tile bltuminouBwithbeadq Project Manaler Arctic National Wildlife Re­ tion, western whalers and ex· North Slope. values lrom 10,000 to 14.000. Arctic Slope fuge, south of Camden Bay. ploration parties. In aomeareu. the coal forma BTU.-poand, . Conlllllting Engineers The coal depoilita have been It wasn't until after the for­ up to 10 percent of the whole Noitb, on the ucdc coalal Alaska'a North Slope repre­ found tc> underlie approsi· mation ofNaval Petroleum Re­ a&ratigrapbic aection which ia plain, tha coal bode are narl:r sents, at one and the same serve No. 4 in 1923 (known considerably more &ban the one horizonlal and are .....,..Uy time, the repoaitoeyfora major aince 1971 aa National Petro­ to two percent common iD the aab-bltumi-Ain rank with pOrtion of the nation's energy leum Reserve Alaska), that Lower 48 Appalachian coal a heat valae ol around 9800 resources. and an area where geological evaluation of the tielda. BTUperJIIIIIIld. its citizens can pay between ...o~ began. Since then, The general quali&:J of the To the eut ol NPJl.A, there $4,000 and $9,000 annaall:r to aevera1 reconnaiaaanceatuclies caala range from lignite to hilb arefewcoalDiltaapewitba.& heat their homea. and geologic mapping have volatile A bituminou coal, all ol the area'• infonnadan ob­ The challenge of both the been conducted by the U.S. with low aab, moisture, and tained throqb eeiamic aha& rural enerc:r dilemma and GeologicalSurve:r. U.S. Bureau sulphur content. The general boles and oil well lap. Tbia maintaining the atate'a vital of Mines and, more recently, qualit:rtrendoftheCretaceou coal ia pnera!J:r .... -­ role aa one ofthenation'a major theS&ate of Alaska, Diviilion age coal increaaea from north­ and of lower rank, nb-bitn- enero producers in the future of Geological and Geopbyilical west to southwest. minou C and liiJiite, than may lie in the development of Survey. In the west central ArCtic found in other- the North Slope's "other~· Although geologic work baa including NPJl.A, coal occura Another coal buin of the abundantenero reao~­ been done, the liUie mining in the 1,000to 15,000-foo&thick NorthSiopeiaoiMileiuipplan coal. and lack of eaploratoey dril· Corwin Formation ol Cretaco­ ap(olderthanC-uap) Thia articleeaplorea tbia vast ling activities make the esti· ouqe. and liea in a narrow band reaource,looldng at past, pree­ mation of the total coal re­ Onehundredfort:r-eilbt(148) expooed in inteuel:r deformed ent and future activities relat­ au~. at beat, speculative. coal bede have been identified rocb aloftl the..-­ ing to ita use and potential for Several attempts, however, of which 28 are conilidered of the North Slope betweon future development. have been made b:r federal and thick; however, additional Cape Liabarna and Cape Tbe Resource matel:r 30,000 square miles of atate geologiata to aaaeaa the groupo of bode could be conili· Thom_,.. The North Slope reslon ia a North Slope Area. tolal reaoun:e. dered jointly aa "thick." ' The pnera1 qaallty or -1 vast geographic area in Arctic Al&hougbthepreHDCOofcoal In 1976, USGS geolociata Significant aitaa include in tbiaareaialow-Yalatile, bl&n­ Alaska. It apana more than appears wideapread, only 6 TiWJeurandB...... ,,apeculated Cape Beaufort and Deadfall minoaa coal with headftl 600 miles lrom the Canadian percentcanbecategurizedinto that the North Slope coal re­ Syncline where 12-foot and Ill­ valaisaroand 14.000 BTU per border west to the Villace of thedemonatratedreaerve base. -waa biltwean345 billion foot coal bode occur in proxim­ 'pomil. TheaacoaloarecllaliM& Point Hope and nearl:r 250 Much of the coal outcroP. to 5 trillion tona. ity to one another, and on the and anuaaciatad with tba miles south lromPoint Barrow are bidden b:r a thick net of In 1980, a atate geolociat. Kukpowruk River, where a 20- major c--.. coal­ to the Brooke Range. tundra vegetation making Rou Schaff, placed the tolal foot coal bed ol high volatile -or&ba North SJopa baaiD. Covering about88,000square points of observation few and reaoiJICe8 beMeen 402 billion bituminouacokiftlcoal occara. Fora com ...... anal:r­ miles, or 15 percent of the far between, thua reatrictiftl to 4 trillion of b:rpotbetical re­ Tbia area baa been atoclied aiaortbeqaallt:rorNor&bSiope atate'a land maaa, it ia larger theobaervableevidenceofout­ aourcea plu 60 to 148 billion estenaivel:r since 1954 b:r coalo,ouahoaldobtalna....., tonaofidentifieduaoarce fora than all but Dine of the lower crape to stream cuts and-coal MorganCoalCompan:r, Union of &be -&~:r nlaaad npor&. 48 atatea. power left on the surface when totel apeculative em-te ol Carbide Corporation, and Pe&Joloo vlc-uCoalo Within tbia vast upanae ol ground squirrels dig into the 482to4,148billiontonaolcoal. Kaiser Engineerinc. lrom Nortbern Alulla. land _, lie the world's larl· coal seam for nesting, Themajorportionofthecoal Preaentl:r, Morpn Caal Co. Tbia technical npor& - eat coal province, atretcbing Alau with ita location in the reaoarceliewitbincoaJ.bearini bolda &wo25!JO.acre land._ COJilllliaeioned b:r the U.S. IJe. for more than 300 milea from harsh arctic environment, IOCkaoiCretaceouap,mainly with the Arctic Slope Regional the Chukchi Sea eut through North Slope coal hea biatori· aandetonea and ehales, that Corp: The 11eneral qualit:r of. See SLOPE, Pap 13

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Week of February 20. 19/U ALASICA'11 ENERG'f RESOURCES Page 13 I I Herepi>rtid the coal oecarrence cial trips to Wainwright and i at Cape Beaufort in the west· the Meade Rivera. i em Arctic. Around 1921, the Brower • Slope Coal soon became a fuel Store in Barrow obtained coal Continued from Page 12 source for western whaling from the whaling ships and ships and arctic explor8tion sold it tothosewhohad cash or partment of.Energy and pre­ trips aa early aa 1879. trade. At this time, whale blub­ pared by Dr, P. Dhanna Rao, Twenty miles eaat of Cape ber, driftwood, and blubber· Professor of Coal technology, · Lisburne, the Corwin Mine was soaked earth were used more Mineral Industry Research started providing fuel to west· than coal. In the 1930's. pitch Laboratory, University of Ala· em whalers from 1880 to 1905 was gathered by dog team from aka, Fairbanks, Alaska. and to Nome in 1900and 1901. "Pitch Lake" or "Oil Lake" The report's objective was to The Inupiat who have lived Tulimanik the old Distant conduct a reconnaissance pet­ on the North Slope for thou· Early Warning (DEWI site 50 rological survey of the North sands of years, were nomads miles east of Ban:ow along the Slope coal fields, in order to ~t who lived off the land and sea. coast. a better idea of the potential Historically, their survival de­ Soon, both the Barrow Store for liquefaction of the coals. pended upon 'gathering local and the Native Store (started About 300 coal samples col· resources for food, clothing, in 1921) were paying people to lected from surface outcrops, shelter, and fuel.· haul pitch. seismic shot holes, auger hoi· At some time in unrecorded As the village grew from the ere, di&mond drill boles, and history, this resource depend· establishment of a local school oil exploration test well activi­ ence led to the discovery and and the economic opportuni­ ties conducted since 1969 over use of coal on the North Slope. ties provided by the operation an area oflO,OOO square miles From excerpts from the of the DEW line, Naval Arctic were analyzed. UtkeagvikArchealogy Project Research Laboratory (NARL), The highly technical report and conversations with Johny and Naval Petroleum Reserve concluded that North Slope Adams, North Slope Borough Four (NPR-4), the traditional coals were suitable for lique­ energy planner, and other res­ sources of fuel became scarce faction. The report is excellent­ idents of the North Slope, the in Barrow causing an energy ly done and ia a good begin· Inupiat aaed a wide range of dilemma. n.ing for someone who wishea energy sources necessitated by This energy dilemma promp­ to learn of the qaality of the their nomadic way oflife; scar· ted the territorial governor to North Slope coal resource. city of supply; seasonal avail· visit Barrow to witness the The quantity of the North ability; and the uncompromis­ hardships created by the scar· Slope coal resource is immense. ing demand for it in the h&rllh, city of energy sources. The quality is euellent for arctic environment. The following year the Bur­ bestingfuel,andinaomecaaea, These factora also ensured eau of Mines examined the baa potential for uee aa coking their uae in a wise and con­ Meade River coal outcropping& coale, the quality of which is serving manner. to determine ita feasibility to comparabletotheweatem U.S. The aoarcea of energy tradi­ provide Barrow with coal. and Aaatralian coking coals. tionally aaed were oil from sea Their findings were positive These factors sanest a pro­ mammals, driftwood, coal, oil and second-hand equipment mising futare for large-acale shale around the Brooks Range, purebaaed by the Alaaka Na· coal development on the North pitcll (a petroleum residue from tive Service was delivered at Slope and, as in the paat, read· seepage of oil that surfaces, the site later that year. Only ily available loeal energy apreada, and hardens), and 100 tons of coal were dug by source for rural Alaskans. blubber soaked earth. hand and sledded to Barrow The Put Coal was aaed for home heat­ the first year. The first written record of ing, cooking, and camping The commercial development coal on the North Slope waa tripa.Itaharvestrequiredhard arctic environment. Prior to the coal mine, indi· of the Mead River Coal Mine made in 1826 by A. Collie who work and provided a portion of Thefirotcommercialattempt vidwU& &om Barrow woulrl and its 20-year opelation dem- accompanied Captain Beecbey anenergyoetworkthatallowed at coal mining for indigenous gather coal traditionally by dog onavoyagetotheArotic

,._ 14 ALASKA'11-..GY RISOURCU W- ol Febru.ry 20, 1111U

With Native employment ancl snow tunnels 88 insula- think of it when you go to ough conducted an energy use euentlaUy aeaaoaal and un- lion around their homes and sleep." andresoun:eaaeessmentstudy employment frequently high, entry ways. The North Slope Borough for their region. Slope theopportunitiestoobtaineaab In Anaktuvuk Paaa. a fam· haa raken many steps in try. ·Battelle, Pacific Northwest •Contlnned from Pqe 13 for heating, power, retrofits and ily uaea caribou akin 88 weath· ing to come to gripe with the Laboratories waa the contrac· alternative fuel conversion &r1l arizati.on for their door, and a energy problem. Over the past tor. Battelle Lab's conclusion onatrates the technical feaai- slim and diminishing becauae young man moved into an old seven ye&rll, it haa had an waa "If the Borough is to bility oflllich a venture and the of the rising coat of energy. sod hat. aggresaiveenergyconaervation achieve energy independence traditional use of coal by the Togetharwithmoreandmore Also many people through· program. in the long term, it must use Inapiat even today ohows coal atriogentatateandfederalreg· out the North Slope have built Johnny Adams baa success- the coal reserves." as an acceptable fuel source. ~ationsendangeringsubUat- qanitcbaq (arctic entries) onto fully implemented a weatlieri· The borough's first attempt Thus, the technical feaaibil- ence living, the rural.t\laakan their new homes and look to zation program in several of at a coal conversion project ity and acceptance ofcoal may is progreuively becoming more the borough for weatherization the viUagea on the North Slope. began in 1979. make ita viable solution to the dependent on subsidy and iii aaaistance. His program baa reduced the The residents of Atqaauk, current rural Alaaka energy losing ita independent lifestyle. Hardahipaalsocan bring out fuel coat to the resident by who pay one of the highest pri· dilemma. Aainthepaat,manylnupiat hazardoaa and unhealthy so- reducing the amount of fuel ceaforfuel"oilandwholivejuat .'\.~.~. The Pre.eat today have reverted back to lations which are not uncom· needed and baa improved the l-ll2milesfromtheoldMeade ~Prices have risen to aa the subsistence way of gather- mon in Alaaka today and will comfort level by reducing tho River Coal Mine, realized for hig. , as 13.10 per gallon in ingfuel. increase as the coat of enl!l'IIY amount of air infiltration. some time the need to develop NortliSiopacommanities, even In the viii-of Point Lay, continues to rise. Enei'IY conaervation meaa- te indigenous coal deposita aa tholiirb the world price of oil Wain.,.qhtandAtqaaak, aev- This also is evident on the area are essential, especially a fuel source for their village. h88ctii>ppedand atablized over eral families take the same North Slope, where, families in arctic Alaska where 20,000 Tho village haa been unable thepaatfewyeara. Theincreaae journey aa their elders once did will move together to share the degree heating days yearly to afford the front end work Ia due to increaaea in trans_. gathering coal from the beach coat of energy daring the win· places a high demand on the and conversion costa. so in ta:tion Costa which can make or mine sites 10 to 20 miles ter montha when a home can need for affordable energy. January 1979, the village up 40 to 60 percent of the total away. burn ap to five barrela of fuel In conjunction with energy paaaed a resolution requesting coat of fuel oil. There ia a difference though; at a coat of $800/month. conaervation meaaurea, there the North Slope Borough to The impact of unaffordable today the homes are much I've personally witn08114!Cl a is a need to seek viable alter· aaaiat in the conversion. energy in rural Alaaka baa larger and more inefficient family of four burning wood native energy sources, prefer- The borough responded by never been wall-documented. making a need for more fuel IIC1'81!8 in the bottom half of a rably those energy sources appropriatingt312,000 toward, Very few tragedies are ade- and the sled of today is being 55-gallon dram on their living which are in abundance and the conversion project. quately investigated and, in pulled by the gaaoline:driv'en ,...,..floor. can be gath.!red locally. These funds wore to be aaed gen!'r&l, the rural citizen does mow machine and not tliefuel- · Another family removecj. ita The conversion from oil to a for the preparation of a mining not come about his lot.- efficient dog team. furnaceuhauatstack from the cheaper, more stable price fuel and operation plan. initial One w odoea not.aperience There are endless cases re- ceiling, plugged the hole in the source woald reduce the abeo- excavation. construction of a the day-to-day hardships ported where people spend a ceiling with raga, and bent the lute coat of energy to the con· storage facility and work pad, caaaed by hi1rh cost energy good portion of their time hunt- stack into the living area to get oumer. The North Slope Bor- stovepurebaaeand installation cannot adequately addreu the ing for local wood IIC1'8pe from more heat oat of the furnace. oagh baa taken several.,tepa and one-year•a mining super- trJJO impact. conatruction projacta. In the same viUase, a family in identifying and implement- vision. .al Having personally lived in A family in Kaktovik barns sbatdoWntheoil·firedfurnace ing alternative energy sources The economics established 11 the northern communities for whale blubber wrapped in old and aaed a small camp stove and energy conversion projects. by the report were baaed on aiz years, I can relay what I clothing. The traditiODal meth- i::' on. top of tJ>e kitcllen In March 1979, the North parameters established in 1979. 1.ul bave seen and heard. ode of gathering f.ae! --. Slope 1\orough contracted with At that time, there wore 21 I d In general, the impact baa are both time conioumint and This heated well round the the ~ka Native Foundation borneo housing about 100 II c&uaed restrictions on com.. conflict with job opp<>rtuilities kitchen area, however, the to study the high coat offuel on people. manity growth and individaal needed for casb to pay for the water and sewer .system were the North Slope. In addition to the homes J mobility, change in lifestyles, trips, rent, and other n....,. destroyed from freezing up. Entitled "Report on Begin· there was a power generating l;t ill unhealthy and bazardoaaaolu· sitiM.. Anyone who has lived for a ning Efforta to Reduce Foel facility, wann storage facility, tiona lowering of health stan- Hardahipacan also bring oat time in r:uraiA)88kacan relate Coats/' its conclusion for the · vocational education building, dardaandvirtuallystoppedall ingenuity. This is apparent on to the frustration and deapair long-term waa "Utilization of and combination community chances of economic oppor- the North Slope aa more con· high energy coat places on ita the North Slope coal deposita and school building. tunity and jeopardizing those aervation practices are appear- resident.. Aa a resident <>f was found to be the least coat A conservative heating fuel whichhavemanagedtoremain ing and reappearing. More Nuiqoutaaid, "Foel-youthink enetKY source." See SLOPE, Page 15 afloat. people &r1l uaina snowblocka __ of it when you wake up, you In September 1979, thebor· Week of February 20, 18114 ALAIIility of the coale are ·little per year (1650 gallono). understood. Includin1 the school and The intarnotional or out-of· other municipal buildings, the state market is currently soft totalconoumptionfortheentire becauee of the recent world· village in 1979 waa about 1500 wide recession. However, the bbl or 63,000 gallono per year, outlook fOr world dsmand of es.cluaive of power generation coal appeare very 1ood over and vehicle use. Fuel coot in the next 20 to 50 yeare with Atqaauk waa $2.09 per gallon new and axpanding markets resulting in an average coot developina in the l'acific Rim. for each family dwelling of In spite of the positive out- approlrimatsly $3450 per year. look fOr worldwide coal de- Heating upenoeo for the en· mand. experts vary in their tire village were in esceoa of asaeeenient of the North SIO)i!l $132,000 per year. A locally· potential for wP-Ie com- operated coal mine was calcu· mercial development. ·Jated to oupply most of the SomecoalaxpertsfeeiNorth heating requirements of the Slope coal can be competitive village at around $90 per ton. with other world oupPiisn in Today's fuel coot in Atqasuk the futoreifitcan produce coal is $3.10 per gallon resulting in at the mine site around $40 per an average cost for each home toD(1983). of $5,115 a year. Tbiawouldreqmreanllllllual A 1984 projected coat of coal production rata of at least 5 per ton would remain the aame milllon to":Jdyear. or even decline due to the Others fl the most likaly growth ofthevillageeince 1979 laqe acale exploitation of the especially in municipal flacil. reoouree.may be as liquid or ities. gaseous pipeline feedstock Today, the total amount of throUih in situ conversion. fuel used is about 347,000 This ia many ye8ra into the gallons. TbiaareawuchoMnbecauae ,iei:tad.annuaJCODIIIIDptionftte zena to look fOr altarnallve futore. Besides the obvio1111 fuel coot of the previ01111 poiQiical ra- increased. . . aolutiona to their problema. Still others feel the resource savings, there are other benef· llrVeevalua~by However; the vil1&le of At- The willingness of rural may never be developed on a its derived from local coal util· the Bareau of Mines and the qasuk, whichencampasiiSOYW Alaobno to convert from oil is Jarp-acale basiL ization. They are community AlaokaNativeServicein1944. 2500 acres, lies on top of a vast there; however, the local ahil· This wide diversity of opin- self-sufficiency and streng- Likeallauch aeolcilicU work, resource of coal-ding be- itytofundthetconvenionian't. ion bythoae who are knowled· thened economy. it can always be Wled down the yond the 19 ...... identified by Ifthat problem could be solved, gable in coal, demonotrata the The economy iaetrengthened road. the plan. there would be many villages difficulty of accurately- in two ways, not only ia coal Howard Grey 1IHd the taat If need be, additional min· on a viable energy altarnative iqthe 1arge-acalecommercial leas expensive than imported holedatato._nainthequan- inl area could be identified in today. potantial of ouch areoouree. oil but the money spent on coal tity and quality of .coaL He the distant futore to accom- Thell'utue A8 long aa there is a lack of remains in the community to found all reports indicated the modate the growth ofthttcom- What does the futore hold '>e recycled one more time. coal to be aubhituminoua with munity of Atqasuk. for pOtantially the world's See SLOPE, Pqe 18

Page 18 ALAII

by aubetitutin1 inclipnou ra- ·aveilabletothecoalfielda, ouch .opment. high volatile 8 to A hitUmi· sources for imported oil. aa the hard rock mininlefforta On an individual sits basis, no1111 ~thjowash,lowaulphur The most fi!CODtand promia- in weatam Alaska, i.e., c... the study shows all five. sitos (leas than 1/2 percent, low Slope ing studies cominiaaioned .by minco's' Red Dog Mine and . have the potantial of provid· moiatore and high dsnaity. •Continued from Pa1e 111 the Alaska Power .Authority GGO'a Lilt Mine; onohore suP' in1 coal on. a smaJI surface Heating value r&n~es from and the Stat& of Alaska, Div- port' flacilitles fcir offshore oil mineecale(100,000-200,000ton 11,000 to 14,000 Btu per poimd sitHpecific geological date and ision of Legislative Finan:ee, andc gu development in the per year.:.. local and regional at the Howard Syncline site. the phobia against arctic devel· point to North Slope Weotarn Chu!aJ region fOr centuries. ling activity d!)De to data. This may be · mialaadin1, tunity'' remains open for just Cape BeaufOrt COal. sits of the F'llrther, if .weatam Arctic This can be misleading and however, inasmuch as many so long and thoae companies, Weatam Arctic COal fields baa coal industry is expanded be- as more geologic knowledge is of the early coal aamplea from states, and nationo which start · been highlighted in each study · yond the initial vil1&la market obtained, more opportunities the Cape Beaufort sits were or have started their p1anninl as bein1 the mO.&. attnictive some. time in the futore, the arise. collected from outcrop~~ and and development today will be for community hletinl and expansion will improve the Forinotance, the most recent minedumpeandwereanalyzed in the driver's seat when the power needs becauee of appar- economy of acale of the mine, drillingproaram conducted by monthe Jatar. futore increasa in dsmand ma· entquantity and quality, prox· thaeby driviDI down the unit the Stata of Alaska DGGS Analyllcal results from ..ea. tarializes as the world comes imity to navipble tid& 'watar coot··of energy to the Alaskan under the direction of Jim Cal· thered coal aampl• or im· out of its economic receaaion. and mineability. conoumer. laban. asaiatant district man· properly llaled aampl• show Even if there were •uch a Unlike paat reports, the ra- The Legislative Finance- qer for JlliDeraJ.- Bureau of a higher moiatore contant and commitment today, it would cent studies COIIUIIialioned by dieaidentifiedfiveopecificaitea LandManapment, took place oftan a greater ash· contant ap)I8U that the large-ecale the Stata of Alaska, lAPIIa- within the ...... Aicllc. The thia.paat 1ummer at the Dead.; withlowerheatinlvalueathan intarnational markst scenario tive F'lnance did not im~ five sites aeJected - Cape flaJJ Syncline area after the last properly taken, fresh aampla ia unlikely to occur in the near any lnarketin1 boundariaa Beaufort, Deadlal1 Syncline, stadiea were completed. from the same bed. futore. However, the devalOP' available to the WeatarD Arc- Eplsetka Anticline, Howard Short offuDdl, the- AcconliDI to the ·American mentof a 111118llsr-acalin-alate' lie coal fieldl. · 8;DciiDeandBubara8yndine only drilled 32 sites. The dril· Socisty for Testing and Mate- market llrving the needs of' It looked at the bHtata mar- to SnoW!Iuk Anlldina. 1inl depth was lsao than 200 rials, rank classification of Alaskans is not ODiy tecJmi. kets as wellu the oat-of..tate All five~underCOD- fest and no coals were conoi· coale may not be made from caJ1y and economicaJiy feasi- markeU. The repart identified lideratioD--tegica)ly )C)o clered with a strippina ratio aampla that ha¥e been nb- bleb¥ is way overdue in light 811 viliqa focated aloDI the cated wiihiD tha Corwin p..., greatarthanli:l. jected to waatlaerina and oxi- of the current energy dilemma Alaskan cout • navipble maticni ofcma-u ap and CaJJahan reported thae are dation. In 1eneral. the Cape in rural Alaska. ' riven from Banow to Kodiak are ID.cl.- piusimity to one .everalacellent beds that lay BeaufOrt coal aampls taat re- A8 mentioned aarlisr, the ahcnriDI proJDiae as the - another coveriq a trianplar- ahaJiow and puaJJel to the suits are not indicative of the North Slope Borough has taken tann market I• the ....tar~~ ahaped area 20-by-40-bJ-46 ourface, two which lis alonl in situ quality. :;;:, stops..!t uaist the vil1&le of amie coal t5elda. miles aloDI the ...... amie the uia and have a co_. A8 Legislative Pinance i:. Atq with reactlvatin1 the It foand that an 1Dtra4ate cout. This area may contain tive -eallmataof20 miJ. porta. the ...... amie coaJ old Meads River Coal Minai• ocean transportation .,.._ as inuch as 2.2 bilJioD- of lions - of strippable coaL rqionlooke Jllllllliainl, bat far- local uee. fotmded on tha diatrl1ndion of coal as projected bJ Bnd Cur- enOUih to provide 100 years ther knowled1e of the coal The borough has also in- coal but available fOr adler t:ia, Arctic Slope Conaulting supply for a amall200,000 ton bearing region mut be ob- tigated coal utiliaatioa iD the caqoe would appear to have a Eqineera' polOiiat. per year operation. tainecJ,. DrilliDIPftlllf&D&8 have communities of Wainwright, Jon1 and _.... future, espa- Dubbed the ueape BeaufOrt CaJialian fllels more work bae'!\;sparce and more are Point Lay and Point Hope. ciallywheiacoalcouldbemilled Trianlle"(it'laafetoflyover), should be done at the Deadlal1 needed to-opecific West- Likewise, Alaska Power and shipped at pr;- which the area baa tmnando1111 flaxi. Syncline ·site to close the ernArctic-withcom- Authority baa conducted sev· are competitive with fuel aiL hility in - ~ sitinl, "ppa". ·.. 11181Cia1developmeatpotential. eralenergy-tstudiea In adclitioD to the DMI'tann mineespllllaion may allow The rank and quality of the Ca1lahan. who has spent 18 in rural Alaska with the same mar~tet_,..;.,tuturein-atate forconaolidationofflacilitieliif WMt&m Arctic coal is general goal of reducing energy Costa market opportunities m&J be reqWredfDrmultiplesitadevaJ. high.Coalarangein rank from See SLOPE, P&le 17 ~~ Time Line ~ 1918 Alaska Railroad is built to Matanuska Coal Field. of Alaska~s Coal 1922 Alaska Railroad reaches Nenana Coal Field. 1788 1924 Capt. Nathaniel· Portlock, English trader, linda coal at ~j~· Navy b&glna converting ita coal-burning ships to Coa_l Cove (presently Port Graham) on the Kenai Pen1naula. 1940 1855 Nearly all coal mined In Alaska comes from Evan Jones Coal Mine in the Mata.nuelca Field and Healy River Coal Mine in the Nenal)a Field. Coal used to power dredges 1879 and large placer mining oparatlona near Fairbanks. ships and U.S. Revenue cutters start ualng 1942 coal from the Corwin mines along the coast belWMn Alaska Railroad reopens Eska Mine. Coal needed for Cape Sabine and Cape Lisburne, Northam Coal Field naw Army posts and military airfields. on the Arctic Coast. 1943 1888 Traditional underground coal mining In Alaska gives Wharf Mine near Port Graham opens. way to surfaca mining methods. 1888 1948 Sternwheelers uae coal as fuel to transport gold aaek· A.leaka Railroad converts coe~urnlng engines to dla­ ers to gold flalda. . . .. · , ' . ael engines, Eska Mine closes' in Matanuaka Field. 1900 Extension of coal laws to Territory of Aleaka. 1988 Fort. Rlchardaon and Elmandorf Air Force Baa& con­ 1902 vert coal-fired steam power plenta to natural gas Yukon River steamers convert coal and wood burners MatanUika Field lhuta down axcept for small locai to petroleum engines. needl.

11M)4 ! ~ 1973 Coal Act enacted, allowing coal claim loi:atl~ with- '. Orllanlzatlonof Petroleum Exporting Countries (OPEC), out previous survaya. ·· ·a pnidomlnantty Middle East cartel, seta high oil prices alld niducea supplies to the.Unlted States, prompting 1908 Increased demand for other energy sources, including President Theodore Rooeevelt closes Alaska public c:eal. land to entry under coal laws due to Plnchot-Balllnger feud. 1977 President Carter's energy policy includes conversion of·utiHttes and Industry to coal, prompting an interest u.s. In opening the Beluga and Jarvis Coal Fields. ALASKA REGIONAL ENERGY RESOURCES PIL\SBI Vol-1 R«ouerable Ruoarce. By Site Applil:able Tei:luiDloiiY ll«ouery &M(U:iotioll Sto- Spollton.eou C..mbutio11 Trt.Mportotioll

OCTOBER_.,... 1177 __ __ .. More on ___ Gene Rutledge The man compilinar .:---­... "Aiuka'• EnerirY Reeoar­ --- cee",for Aluka Journal of _.,---·_ Conmierce;. well known in eneqy cildee. __ Dr. has Gene Rutledare -OIT--u.s._.,_ received ,eneTifY appoint­ -OIIIo--lorllo-__ ... ment. from two arovemcmo of Idaho and Aluka'e Jay ·-D.C.2111M5 --llo.IEY1Wc:.-.- HammoDd. He moved to Alulra in Copin o{tlw At...MRQiolllll Eurn ...... ,._ Pllm•,, , lli"'l Project, uo1umu were ""' to 1M s- Librm"y ill !l'!t.':?:.:.::.~ .r,.,.,., ad& boro1111la library, - _.tda Gild 1M of Western lntentate Nuc­ A/aM Ruource Library ill tlw Ferkral &ilditlit ill learPed~IdahD. Allclao,....e.MOIIY~r.,...u.opurt:lr.oaedcopin., Rut1edpi.liatedin Who'• r,. nt:la .,.pte,.,., o{tlw ,;.,.part ..na, a totn. otco11· Who in .America and Who'• tem. for topin couered ill 1M iou Gild wlwre tlatty CIIIIN Who in tbe World. and be found i11l/w ARERPP 1101,..;. beintl i.Ju:ludMl to....;., .-ived an honorary doc­ llaoN U/Uiaintl to condiu:t (uri/In raeair:la. torate of ecience, dearne for Followi"'l;. 1M ,toble for iou.couered illlla;.edilio~to{ hi. eneqy lell8lllcll accom· "At...M'• Ennn Re.. ,..,., .. pliahmenla.

Why join the Alliance? • It takes strength in numbers and concerted action to influence public policy. • The Alliance focuses on a limited number of impor tant issues and,concentrates its actions on them. • Meetings and special events bring together leaders in the support industry and leade,rs in the petroleum and mining industries. • Often competitors hi business, members of the Alliance find common cause and friendship in dealing with issues on the Alliance agenda. 1 • The Alliance will intervene in litigation affecting the support industry. • Unless support industry'companies help foster better conditions for their busi­ nesses ... who will? • Throughout the year, the Officers, Directors and staff of the Alliance serve and protect the interests of its members. JOIN US!

Alaska Support Industry Alliance .. .tor responsible economic d~elopment

P.O. Box 100100 I Anchorage, Alaska 99510 I (907) 561-Q100 f r;~ ~ t: ii t· WIND & GEOTHERMAL... 1985 UPDATE

The status of one significant Several firms attended the wind project (Adak), and one proposal conference in Adak significant geothermal project and a number of firms bid on (Unalaska Island) have been the project. · updated. The wind project is The Navy has agreed to pur­ especially interesting because chase kilowatt-hours at the rate of the contract arrangements of 9.5 cents per kwh for 10 whereby the customer (U.S. years with a renewable option. Navy)is buying kilowatt hours, The highly technical request not hardware. Should this con­ for proposal requires the-elec­ tract prove successful to both trical generation capacity to buyer and seller; other energy be between two and three mega­ equipment vendors who are watts. confident of their products may This type of contract was . choose to enter into similar used successfully by the Navy risky arrangements. years ago on a geothermal pro­ Successful geothermal pro­ ject at China.Lake. jects require users near the Alaska utilities may desire resource. The cost per mile of to track the Adak wind project moving hot water is high com­ closely to determine whether pared with other methods of similar type contracts should moving energy. Space heating be considered within the state. using geothermal waters have The Navy requires construc­ been successful at several lo­ tion to be completed and power cations throughout Alaska - on line within 360 days. Plan­ Manley, Circle, Chena, God­ ningis underway and construc­ dard, Tenakee, Baranof and tion is expected to begin soon. Bell Island. Request tflr. Proposal Other candidates for geoth­ Excerpts ermal-use are Mt. Spurr, near The site being considered for Anchorage, the Copper River ... the location of wind energy area west of the Wrangell vol­ system is described generally canoes · and Pilgram Hot as the White Alice site. Springs near Nome. A road The successful bidder may was completed from Nome to recover capital expenditures Pilgram Hot Springs the sum­ during the term of the contract mer of 1984 which enhances after system startup through , the potential of that area for charges for energy sold from v,0 geothermal utilization. the facilities. Charges for en­ Some preliminary discuss­ ergy sold will be based, Qn the ions have centered on the pos­ successful bidder price. sibility of a combination reha­ The wind farm is subjecfto bilitation/greenhouse - agri­ the following design constra­ culturecenteratPilgram which ints: upper size limit-3 mega­ is 68 miles from Nome. watts; lower size limit-2 meg­ ADAK WIND awatts; rated windspeed-20 The U.S. Navy has selected mph; minimum starting speed-9 a wind energy contractor at . 1 inph with 5 percent of output Adak, Alaska; however, theco:ri-.. · at rated wind speed; cutout windspeed-no less than 60 mph; tract is somewhat novel. The J I Navy has elected not to pur­ and height of above windspeed chase equipment, rather it is measurement-10 meters above buying kilowatt hours. ground level. _~..I The .bidder was selected ~ The system shall employ r·' March 15, 1985 and the winn~r fail-safe controls to protect the I·' was Michael Consortium, a' Ger­ rotor from overspeeding in man firm with an office (Box winds greater than its rated 56) in Satsop, Wash. 98583. speed.

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Reeve (907) 243-1112 Aleutian Capt. F. H. Keith VP·OPS. r I?

The design and operation of the strong possibility ofa water' the wind farm must cause no dominated geothermal system instability to the existing power in excess of 480 degrees F on plant and electric grid system. the eastern flank of the. vol- Peak wind speeds have been cano at a depth of less than measured in excess of108 knots 4,000 feet. or 124 mph. In summer, gusts Phase II was initiated in the frequently e~ceeded 50 knots. Spring of 1983. The explora- Typically frequent local shifts tory well was started in early and rapid changes in wind June. speed and direction are evident. Initial well testing confirmed Total precipitation is about a water-dominated system with 68 inches annually with snow- a steam cap and bottomhole fall in excess oflOO inches. Lit- temperature and pressure of tie snow actually accumulates 379 degrees and 478 psi respect- because of the wind, except at ively. high elevations and as drifts Phase III of the project was against buildings and embank- conducted in 1984 and consisted ments. of further well testing and res- The areas contaminated by ervoir analysis as well as dril- World War II ordnance con- ling a fourth temperature gra- tinue to pose a major problem dient hole and conducting an at Adak. The station periodi- electrical resistivity survey. cally publishes warnings in The survey revealed the site the station newspapers about of the current well is the most the dangers of the old mine accessible site where signifi- fields. The signs posted around cant geothermal resources are the contaminated area soon likely to be encountered at a fall victim to Adak climate. reasonable depth. Despite attempts by ord- Flow tests and reservoir ana- nance teams to clear the area lyses. conducted in 1984 indi- since,the end of war to present, cate a single commercial-size the passage of time, the eli- well located near the current mate~ and the thick mat of exploration wellsite could pro- tundra make successful efforts duce between 1-1.5 millionJbs.- virtually impossible. /hour of fluids. UNALASKA 'fhe figures indicate the re- GEOTHERMAL source' is capable of meeting In 1981 the Alaska legisla- current and projected power ture·appropriated $5 miUion to needs oftheisland for hundreds be administered by the Alaska of years. Power AuthQrity for geother- The existence of the resource mal drilling and exploration by itself does not justify devel- at Makushin Volcano on Un- opment. That decision must be ~!:11 alaska Islahd. made based on an analysis of \, The program consisted of economic feasibility. three phases: 1) data review Unalaska has long been de- and synthesis; technical plan- pendent on the ups and downs ning; land status determina- of the fishing and crabbing tion; permitting requirements; industries. Its power require- acquisition of environmental ments, likewise follow this cy- data; geological, geochemical clical trend. Power demand may and geophysical investigation range from a peak of 13MW at

and mapping and drilling of 1 tlie height of a good fishing three temperature gradient· season to an average of2-3MW holes. during the off-season. Phase II included continued In recent· years, Unalaska and more extensive testing of has attempted to diversify its

the geothermal resource, the economy with the development :II·· drilling a fourth hole and elec- of marine support facilities, a trical resistivity surve~ to del- t bottOmflsh industry and, most ineate the extent of the res- recently, tourist trade. ervoir. In addition, the U.S. Coast The Phase I final report was Guard is considering the island ::: completed in 1983 concluding as the site for a large search

111.2

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Call us at: :.:;,· . 522-3343 1300 East 68th Ave., Suite #104 • Anchorage, ·Alaska 99502 . and rescue facility and the pet~ • Assessment of thermal­ roleum industry could use U n~ spnng sites in. southern sou­ alaska as a staging area for theastern Alaska-preliminary offshore oil development. results and evaluation: DDGS A geothermal power plant at Open-file Report 127. unalaska would have to be lo­ • Map of geothermal resour­ catedatthesiteoftheresource ces of Alaska: Alaska Dept. of which is·15·miles west of the Natural Resources and Na­ communities of Unalaska and tional Oceanic and Atmos­ Dutch H~irborin a remote, road­ pheric Administration. · less,.rugged terrain. • Geologic map of the Maku­ It is anticipated construction shin geothermal area, Un­ of a lOMW power facilityinclu­ alaska Island, Alaska: DGGS . ding road ahd transmission Report of Investigations 84-3 . line would cost at least $40 Other maps and reports that ;million. · are presently in preparation • . DDGS PROJECTS: include: The Division of Geological • Map of the geothermal and Geophysical Surveys of resources of southeast Alaska. the Department of Natural • Final report on the inves­ Resources, State of Alaska, has tigation of the geothermal­ thre.emajorp:.;ogramobjectiyes energy. resource potential· of with respeCt to geothermal the eastern Copper River basin. resources in Alaska: • Regional maps(1:1,000,000 • To inventory, assess, and scale) of the geothermal re­ map geothermal resources in sources of southwest, south­ Alaska. central, and interior Alaska. • To assist federal, state, and • An assessment of the local agencies in geothermal Makushin area. development and production. • A geothermal-resource • To conduct research ·and assessment and inventory that explore 'the potenti~l of geoth­ includestheresultsoffieldwork ermal energy. at Pilgram Springs, Goddard A number of significant re­ Hot Springs,. the Copper River ports and maps have been com­ · basin; and Akutan, Atka, and pleted.and are available from ... U mnak Islands. · DGGS: The fieldwork in the geoth­ • Assessment of thermal­ ermal inventory program has spring sites, Aleutian are, Atka been completed and the results Island to Becharof Lake-pre­ of this· work are being com­ liminary results and evalua­ piled for publication by R.J. tion: DGGS Open-file Report Motyka, project manager. 1«. .

"Alaska is rich in energy. The problem is that it hasn/t yet decided · how to best use its energy resources. Hydrocarbons ()r hydropower? Domestic use or. export? Subsidies or marketplace? The answer to these questions can come only when Alaskans decide in what direc· l tion they want the State to go." .~

Jack Roderick State Energy Director

111.3 COiiiin"erce & pacific rim reporter FOR 8 YEARS· ALASKA'S STATEWIDE SOURCE OF BUSINESS INFORMATI OTHERS SKIM THE SURFACE. WE FILL IN THE DETAILS WITH COMPREHENSIVE COVERAGE OF THOSE EVENTS AND PEOPLE WHO SHAPE ALASKA'S ECONOMIC FUTURE. WHAT DOES THE "jOURNAL" OFFER- • MAIL DELIVERY to your home or office 52 weeks a year. • BUSINESS NEWS coverage of the whole state- Barrow to Ketchikan- with regular regional coverage of: MAT-SU, Kenai Peninsula, Fairbanks, Juneau and Southeast, etc. • SPECIAL COVERAGE of major Alaskan industries- oil and gas, mining, timber, fishing, tourism and others. • OFFICIAL PUBLICATION for industry trade shows- DPMA, AGC, Office Products, Arctic Oil & Gas, Alaska Miners, etc. • ECONOMIC FORECASTS of Alaskan business activity at beginning and mid-year by the State of Alaska and respected Alaskan economists. • REGULAR COLUMNS - "Rukeyser Report" - "Exporting Alaska" - "Courtroom to Boardroom" "Deak-Perera Metals Prices" • COMPANY COMMENTARY- A weekly news section of business happenings around the state. • SPECIAL SECTIONS - "lnfotronics" - What's new in computers and office automation, "Real Estate News"- "Petroleum News"- "Pacific Rim News"- "State News"- "People On The Move." ' • MEETINGS AND SEMINARS- A weekly calendar of meetings and seminars around the state. • ON THE RECORD- Alaska's comprehensive summary of legal notices, Court filings, state and federal tax liens, state and municipal bid invitations, bankruptcies, UCC filings, sub-bid requests, new business licenses and more. ------~------~------·FOUR ISSUES FOR FREE! 1 SUBSCRIPTION ORDER That's right. Subscribe today at TEAR OFF AND MAIL THIS the regular price of $49.00 for a CoalaskDiajouDirnael ofrce CARD OR PHONE OUR year ($90.00-2 years, $125.00-3 SUBSCRIPTION DEPT. ye~rs} and we'll send you the first a p~~c:itic rim reporter TODAY! (907) 243-1.513. four issues for FREE! YES!BEGINMYSUBSCRIPTIONTODAYTOTHEALASKAJOURNALOFCOMMERCE •RISK ANDPACIFICRIMREPORTER-IDON"TWANTTOMISSASINGLEIMPORTANTISSUE! OUR No o 1 Year $4900 o .2 Years $9ooo , 0 3 Years $12500 GUARANTEE! ~ o Check enclosed.- .. 0 Mastercard 0 Visa · Exp. date ____ If after receiving four issue~ you 0 Bill me. -Card No. ______do not wish to conti'nue your NAME ______TITLE ______subscription, just write "cancel" coMPANY______on our ivvoice and return it to us AooREss,--______PHONE ______or ask for a refund at any time. CITY/STATE/ZIP ______We're sure you'll want to con­

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Part III: Wind and Geothermal Written and power

Much of ths material in this 'Modern' windmills originated in month'aenergyresourcesspecial is from the five Alaska Regional 19th Century Midwestern states Energy Resource Planning Pro­ ject(ARERPP)volumeareleased Milltivanefanwaterpump, ancient times, seafaring (B.C.) in Babylon. in 1977 (Phase I) and 1980(Phaae ing winclmilla, the type of countries used the wind to He also mentions that m. wind machine most widely move.· boats and ships, Hinduwritingfrom400B.C. ·Project leader was Dr. Gene in the world today, agrarian nations captured is cited by H. Wulfin Tradi­ Rutledge, who is compiling the developed in the Uni- the power of wind to lift tiontJl Crafts of Persia as "Alaska's Energy Resources'' ted States in the Midwest- water and to grind grain the first written document series for Alaska J oumal of em plains region during the and in Oriental societies to make reference to wind­ Commerce. middle of the 19th Century kites were developed as toys, mills. Other project members were by . artisans, mechanics, scientific instruments and There is general agree­ D. Lane, who worked full time, farmers,manufactmeraand as an art form. ment that-Persia, during the and W. McConkey, C. Quinlan, others who had little con- Some authorities cite first 1,000 years A.D., was G. Edblom and M. Rohm. tactwiththeworldofscien- China and Japan as early the only nation making Assisting with the update by tific analysis. users ofwindmills, possibly extensive use of windmills. providing photographs, informa­ The combination of pro- as early as 2000 B.C. References to tion; articles and interviews were: ductimprovementandcost M.F. Merriam in Wind began appearing in litera­ David Denig-Chakroff of reduction through factory Energy {or HunuJn Needs ture in western Europe, Alaska Power Authority. production brought these (1974) notes that several notably France and Eng­ John Reeder of Alaska Div­ wind machines into large- authors give Persia credit land, during the 12th Cen­ ision of Geological and Geo­ scale applications. for the invention of the tury A.D. physical Surveys. Electricity-producing wind windmill at some uncertain In the next 700 years, wind Sandi and Emil Remus of 4 machines are not mass date in the remote past. power continued to be deve­ Winds of Alaska. produced on a large scale at It is believed that large loped and utilized in areas C.J. Phillips of Pilgrim,Hot this time. Navertbeleaa, variicalaziamachineawere where wind capture was Springe. research in use of wind first used to pump water. feasible. Ray Morris of Arctic ReaoUl'­ .energy conversion systems They also were used to mill Horizontal azia machines cea Drilling. (WECS) in power grids as a flours and grind meal. were in widespread use in MarkNewellofPolarConsult supplement to diesel fuel ~erriam lista two sources Europe, with large numbers Alaska. currently is under way in thatgiveHammursbicredit of windmills being used in Steven Konkel of the Alaska Alaska. for planning to use wind- DepartmentofCommerce&Eco­ Hopefully,thsengineering ·milia in the 17th Century See WIND, Page 2 nomic DevelopmeJ!.t. talent and interest of Ol'- .,.,, · ganizations such as Grum- man Corp., coupled with the determination and talent of the homesteader and the Native Alaskan mechanic will help control the enOl'- moua cost of electricity in '~~ the sparsely populated re­ gions of our state. -.~~etCh ot dynamic loren on a wind gen. .. ;et~~tor cour18Sy of PolarConsult Alaka HISTORY Wind has been a source of energy for milennia. In

_lu_oi __ V_onU-IIIond.PIIotobJJ. --Geothermal energy Geothermal uses go back to Ancient Greece, Rome Geothermal resources have been in use for centuries. Ancient Greek and Roman baths were well known, and geothermal baths were being used as far away as the Andes Mountains by the Incas. l!li Lese sophisticated bathing and cooking was done by I t:~~ numerous groupe throughout the world, including peoples in Alaska. < The use of geothermal chemicals probably predates use ,,!I by Etruscan potters, artisans, miners and merchants in b~~ 500 B.C. in what is now Italy. The borates, sulfates and qulfur from the springs were later used in the Middle Ages. Boric acid extraction led to the use of pressurized geoth­ ermalateam in a system invented by Francesco Larderal in 1827 in Tuscany. See GEO, P ... ll ,.,., ALAIICA'I ____ol_rar- •Wind

•·Wind The Ogle Equation Thepowerobtainedfroma wilideDer~YmachiDeia a function ofthe density ofthe aii- aad of the cube of the velocity of the wilid. TheiiUUiimam power that can be extracted ia 59.2 percent of the power ori8i· nally in the moviq air. William O.le etaU.: "For conuenieJICfluM, the power per sq1111re meter thai I7UIY be recowred by 11 36 pen:flnl ef(icknl machine Ill Nil lewl;. giwn rrillllhlY by the fol­ lowinB eqlllltiona: Power (watt.) eq.W. 0.031 V (cubed) (lmote) or Power (watt.) eq.W. 0.02 V (cubed) (mph) Foraample,aJO.Iurolwindilroultl produce 248 11111U.Imeter (aq1111red), .lllltla 20 mpla wind elroultl prodru:e 160 11111118/meter (aqllllred). n

o-tioa project uinl" a 12- Four other major iDetella­ foot diameter Seaceabaa.-h tioae han MrVed u demon­ . Region wiadmill &ad ia fimded by a llratioaprojecteforwiadpower applicatioae iD Alulra: Kota. (Arctic) federal .-rant...... Northern 5 Tbe UaalubDilllliteWECS bae, U.-uhik, McHqh Creek Nortbweet ~- will be ued by a eoiiUil8ldal aad Neleoa Lqooa. Western 19 eheep herd OWDer to ...... ENVIRONMENTAL Soathc:entral 23 electricity for a three kil­ DIPAcr SoathWMtem 30 eyetem. Electricity will be EcolOI"ical ~ ... Soatheutem 11 iltondiD 15qht-vol& batteriee. DOt ...,.....Uy ueocieted with 9 ·· Ia Uaalaldeet, a muk-oz theoperatioa ofwiad tvbiDee; Interior eooperatin hae iDHallecl a 18 WECS topzovidelil"hqfora ho-, there are - pot. 140 eatially ad-effect iD both ~Total farmhoaa aad electrici.ty for. the eoaetractiOD aad the CIPft­ IDIBi1 power toobo. tioaal ph-of Wiad Eaeqy lwaepriq. Thent ia a 10.5-foot diameter A wooden tower with akeJe. Coavenioa 8)'8teme (WECS). wiadmill iDetallatioa to power Sewralrelativelymiaor­ &al bladea otarula at Krupm­ the telm.ioa relay etetioa epa(aowl'ilpimHotSpriqa), w-Kip.-SeimaoAirF...,. of"JF.'!""lhaft beea diacuoed forty· fin mil• north of Nome. byWIDQ powerpJOpOIWiteaad Station aad DilliDI"ham. -.chen. Thent ... aJao nmaiDa of a The North Slope Bomqh bau.,- baDk ...... ,...... Someaeptin impecte mq huiDdelled two3Kw Dlmlite be realbed iD the iDitial COD­ at Hope where aa aUempt wu WECS toprovideelectrici.tyfor made to - ~ power to the hom. at Poiat Lay. See WIND, Pqe6 _a_tain_ridptop or oo111t1 other path ofpnftil. IDcwiiW. •Wind Bued.ODAJubbiLih~ Coadaaecl from Pap a habita ud wind paUema, it may be IIU1JJilocl thai alipif· ic:ant portion, perbapa half, of the energy generaiocl by a winclmlll will be unU...ble; Lo••• may occar when wind-derived voltagee are Jeaa the the bettarybankvoltap, beuerieaarefllllycharged and unable to accept e~Jua pn· ention; or winclmilla are ebat down for aafety dariDc m.h wiJW. . TaniaWenlinkcak:olated.the coat of a &-Kw windpom inatallatiODat Upblk, AJaaJra, in1976. "AaaiJmlna fee labor and no in-.& paymenta, the lnaW· Jation coat woald be aboat $1,670/Kw." Hcnre'far, remota CODliDuni· tiee ... alnady payinl .... tremely m.h clieaeJ fael.m-, and theee coata can ODiy be espectad to riae .. foalil fael -andepleted. Tbroqb aaYIDp OD fael coata alone, aitable - coald - the capiaal coata of a wind plant In foar to lliz ,.an. 'l'lleAiubStata~ -~aatabiUboclaJ.nf(md for the~. c:onalnl:tkm and lnRallatioD of altematift ...,..dnbL lw an alterutift ayatam, a WECS Ia elilibla for a lou of ap to $10,000, to be rapid In ap to 20 y.ma& not more the 8 a--tannaalln-TheM Jouacanbeaaied tofiuanceu machu80a--tofaprojeci. The fund ia lntandocl to encoarace the atiliaatiOD of energy-otbertheDOJio renewabla foaaiJ or naclear See WlND, Pap4

•Wind Coat:laaecl frOIIi Pap4

Se,ected Alaskan Wind Power Sites YMIIJ-8peeci(IIPH) ...... _,. 21.0 Amchitb lalaDcl Soatb.... 17.1 ColdBQ 8o1dlntwt 17.1 TiD City N~ 14.7 Pad lleidea 8o1dlntwt 12.8 ICoCDhe . North.s 10.9 Nome North.S 9.8 BiaDelta la-­ 8.5 J- Solatbeut 8.1 Yakatat Soatbeui 7.6 v.w. ScRdbcilitnl 5.8 .Aaclulnp (MenillliWcl) Soa&laatnl 6.6 .Aaclulnp(BJmeadcid) Soa&laatnl 7•. 6 Sltlia . 8olatbeut 4.9 Fairbub lat8ia&o snow? Wind generators E.Remus:Norealproblemezceptgettingtoavillage INTERVIEW: in a snowstorm can increase travel coste due to travel could trim costs delay. Arecentatadybytba.Aiuka Sandi & Emil Remus Department of eo- " Economic Development indi­ (Following i8 Dr. GeM RUtledge's illteroiew of Rutledge: How about cold weather¥ cates there are apots in tba Sandi andEmilRemuB, owMrsof4 Winds ofAluka, E.Remus:TheHCntistosteywithmech•nicalsub• state where wiud -eration authorized dealer for Jtu:Obs & Bergey.) ·· componente. Avoid hydraulic and electrical com~ ccndd play a aisnificant role in nente. Watch lubricante. Also buyfromafirm where cuttiq .electricity coats over the controls are being built and to meet tha nm 15 yean. Rutledge: Jut~t wluJt does a wind mtJChiM cost? installed Amoq tha prime locatious utility conditions. in the 1930s, go E. Rema&Aaaumethe buyerwilldobialherownllite Alaska As ""wind-tioneqaiJIIIIIIlt, preparation, which can vary in coat greatly from mechanical- few moving parte. according to a recent apeech permafrost to steble soil, a 10-kilowatt generation by R. Stevan KoDkel, eaero can cost from $20,000 to $30,000. ICODOmist fw.thadepartmeDt, Rutledge: Discut~s ill more detail past problems. are Saud Point, Naknek, S. Remus: Prior to 1982manyofthelocationsofthe Gambell, Unalakleet, Hooper Rutledge: Where does a buyerobttlin$30,000? How field installation8, both government and industry, Bay, Platinum and Chevak. much down ]111yment? were too far removed from the technical operating Konkel IBid at aome loca· S. Remus: With'a Btete loan, the first $15,000 coste staff, and the coat of travel resulted in O&M and tious wind _...tion woald 5 percent over 20 years and the next $15,000 15 per­ research coste that were euessive. One odd problem be economically feaaible at cummtdi.-1 pri-,ande.s· cent over 20 years. In acldition, various federal tax was one village accused the wind machines' owner of latinc fuel pri- would make. credits and business investment credits are availa· chan!P.ng the weather in the village as a result ofthe proj-even m.,.. attractive. ble. There is no down payment. wind installation•. Initially, ayatema coald be made 10 wind omd dieael woald work in CODCil't to -erate Rutledge: Jut1t whot i8 the monthly ]111yment for a Rutledge: Do you luJue dealer representstiues in electricity, he aaid. $20,000 loan? the uilloges? "The future of wiud _.... S. Remus: $165 per month. E. Remus: One sub-dealer network grew from zero ton u a viable alternative to oil in rural Aluka dependa on in 1978 to 12 in 1981. Results were not too satisfac· lmowledp about tha techno!· Rutledge: How mony kilowatt hours per month can tory because too few locations have people with the OilY in Alaaka," Konkel aaid. you ezpect from your wind mtJChiM? business, technical, local reepect and most impor­ "The ecouomica ahould be E. Remus: About 1,500 to 2,500; therefore, at 10 tant, interest. Therefore, our sub-dealer network fell improved throagh proper site cents per kilowatt hour, assuming 2,000 kilowatt from 12 in ·1981 to three in 1984. The other installa­ planning and technical aual­ hours, you save $200 per month - more than the tions are aerved from our Anchorage office. ysia, continning ·an cmcoing monthly payment of $165. monitoringp!'Oirlllllandeatab­ liehing a technical auiatence Remus: But, you must go where the wind.is and S. omd information prcllrlllll." where the cost of power is high. Rutledge: WluJt does the future hold for wind Knowlqe of. applicationa mtJChiMs in Aluka? · in Hawaii and California c8n E. Remus: The need and interest have been in auiat Alaaka in its wiud -· Rutledge: What are typical operation and mainte­ Alaska for many years; homer, reliability for erationdecisiona, he added, hat nance (O&M) costa? Alaska conditions became availabls in about 1982. cloae attention ahould be paid E. Remus: Usually O&M is done by the owner; For the next five years the industry growth will be tolpec:ialconditiona inAluka, however,$500peryearpermachineisagoodestimate. ezceptionallygood. Theresearch prograDIB and strong including weather, coat, con­ atructlon techniques, air omd interest of the State of Alaska certainly assisted the barge ahipment and IIOil con·· Rutledge: Let's dillcut~s some problems. How about industrywithreepecttoourcurrenifavorablegrowth. ditious.

Bush seeks power cost savings

By MARK NEWELL (AVEC) villages in 1983 - in Alaska ia attributable to the daring tha gold ruah. The ftrst wind -eriaton KONKEL whereas the costa to individu· Alaakan Natives with limited Scattered accounts of wiud· (generatonrunbywindj,ower) •sTEVE were broaghttoAiaaliadurina Electrical energy coste in ale for heating oil often exc:eeda accounte of ll8iling veaela. mills, or wiud/water pampen, $2 per gallon. The early ezploren omd the havebeeufound(Dillinsluun'• gold ruah daya and placed on rani Alaska have traditionally miner'a cabins for lighte. been very high when compared The Hiatory of Raaaian fur traden CIJDe in "Windmill Hill" for example) Evidence of theae early witli Juneau, Fairbanka and large sailed lhipe, u did the by the authors in Alaaka's history. . "windchargere" or "light Anchorage. Thefint Ull ofwiud eners:r pioneenomdSMirenoffortunes plants" can be-today, their There are numerous reasons. atabtowen now being Uled for POH•LE W- IYaTBI COIIPIIIURA~ Firat, it ia ezpeDSive to oupply radio or TV anteunaa. electricity for small deiDlUlds. Outside of the amall cabinl It ia aleo difficult to match the ftrstcommercialelectricity generator size to loada. in the coaata1 villqes waa To provide reliable backup producad by wind -ton often requires a standby gen· at the BIA schools. eratorwhichcancarrytheload ~·-=~ But IOOD tha dieael genera· in the event of a major "' tor could be he&Jd throaghout mechanical failure. Therefore, tha villqe u tha white there are large percentagae of man'• -Y• wen brought to the idle equipment. AJaelum natives. A lingle generator muat fie. In recent yean, tlae abropt quently be run at inefficient ipcreaee in oil pri-, coupled loadings. The coat of buying with hip. trauportation coats omd installing a generator in a ofbrincintroil tocoJDJUanitiea, rural community is expensive, hucauaed tha pricaofeJectric. as ia operation omd mainteu· ity to riae oubatentially. ance. In 1979, AVEC'a averap Over the yean diesel gener­ dieael fuel price wu $.97 per ators have proven to be a reli· pllon; it waa $1.56 in 1983. able aoun:e of electricity and when oil was relatively i:oex· State Procnua peDSive !!bey compriled virtu· · for Raral AJuka ally all of the generation Tile State of Alaska hu capacity in rani Alaska. acidraNed tha problem in MY• Tranapo~tioncharpafrom eralwaya. the region~ centers of diatri· Firat, throagh tha EIIHIY ~- bution, lilie Dutch. Harbor, Prosram for Aluka, it hu Nome, Barrow, Bethel, Kotze. implemented alternative ener­ bue and Kodiak, are signifi· gy projects, wasta heat utiliaa· cant-foreXIUiiple.itcoatsthe tion projects, · intertiu and utility about 43 centa per .gal· hydroelec:tric projcts. Jon to tranaportdiesel fuel from SecoJ'!,it there have been a Nome to Gambell. verietyirteDerii)'COII8UYBtion Totaldieeelfuelcoatstoranl projects,inclnding-theriza­ utilitieafrequentlyexceed$1.50 tion, audits and lftD&s omd per ia nlzofits of inatitutional build· gallon - as the case in Source: PotarConault ~ over one-half of the Alaaka Village Electric Cooperative See RURAL, PapS ..... , MAIKA'IIMIIGY~ -otMerclllt, lfiiH

Dl81lt (DEPD) illclucled ChNe The COIDIDIIJiity of Hooper 1984wind~eDer&torinveoklr)'. IIUICbinee at UDa!aldeet($1QO. Bay hu a oecood 10-kW wind Thereareeboutad018Dwibd · Southwea~ Alailka luis'&be · ,QOO), a $100,000 project at leDer&klr dliot ia expected to ,...... _ which are emauer· moatwindpnera-(30)that • Rural Skqway, &be Beriq Straits be in in &be sprm, of are in o~ticiii; pliuuled eli.• -w:. thllll.5 kW lllld801D8inzemote were Ple\'IOwdy inBtoilled. · ' wind clemonaValion pfQiriiiD 1984. areu of Alaska thaf are not 11ft1Dt8 The inventory ·contains at (400,000) aod for New· laventor)' ofWbld liated in &be inventor)'. 1-20.wind ,...... __ over baleD, Pilot Stalioll, Sheldon Geomatonbu\lukaToday Thia informationiadJ'IUIDiic, PoiDt,N~l.agoooaodotber 10 k!l that are mown to be -' Alaskan commiUiitiee. AA update of &be inveoklr)' eo that &be working status may working on a cooeiatent basis: Privata individuals have done b)' Mart N-ell in the be expected to cllaoae -=ord· &haze aze another 30 working · probabl)' apaot over a million Alaian Wind EMrgy Hand· iDg to machine perfDniiiiDce wind generetiora wfth rated dollara on wind projecta: The boo1c wu perfomaed by Stave ud CODditiooe at the site. capacities of from 1 to 4 kW. Departmeot ofCommm:e aod Konkel. in a report entitled Local knowledge ia invalua­ It can no longer be llllid that Economic Development (DC­ Alak'• Wind E,..,.n 8-p· ble in aaeeaaiq &be experieoc:e wind pneratora are a n- or ED) hu approved 36 Altema· at a apecific installation.• experimental teclmo!OIIY. Th.,. tive EDersJ' LoaDs for wind Then are 140 wind ,...... Although theze are installa­ azeCOIDDielciallyavallableand poeratiOD for $504,500. ---illclucled in the Ju....,. tions throughout the sate; proviiiiJ to be reliable. POWER VS. Wl40 SPEED

Ve~-• CUT•IN.ePEED Va • RATED SPEED Vco Vco•CUT-oUT SPEED

a: I 2

Source: PolarConsult Alaska

WIND SPEED

Win·d generation technology gains in favor BJ MARK NEwELL wind generalioll ia a lolical rofitting &be existing utility Wind,...... tion u a power choice forfutozedevelopmenL ayatem witheomeformofland produciqtechnoiOIIYiaalowly Presently Alaska ia far MIUl&II'IMent (or upgrade) of coming iato ita own. The behind &be west coast in devel· &be diaUibution network u developlll8llte which have oc­ upment of wind generators well. .,.... in the la.t ten yean which will reliably meet power Furtherdifficllityia encoun- have been l:emarkable. needa. tered due to &be high coat of The Wlucl Energy induetry Themainconatnlnthaabeen doing· buaineu in the zemote hu pne from &be aperimen­ thefinaneial-ofthoae areu. _ tel pii\iwthroqh.-archand ioetallingthe wind ~eDer&tora. Factora contributing to this ~tudianowenter­ Lack of funds limite their aituetion illclude &be lack of a ing ilito COIIIIIIelcialition. ability to eolve equipment cheeptraoeportationnetwork, 'l'hea strides are due princi· problema aod make &be wind &be mohilixetion and de-mcibil­ pall)'. to efforte by private II'ODeraton a reliable..,....,. of izationcoataofbeavyconRrac­ entrepnneunwho have_. power. tionequipmentandhill'hlabor ed ventoze capital to develop Prior state programa have coste. what are mown .. "wind been concentzeted in the now The proposed Wind Genera­ farms." ' defunct Division of Energy klrlncentivel'rogram(WIP)ia 'l'hiMwiniltarma, which are Power DeveioPDl81lt (DEPD). designed to give the private -tzeted primarily on &be The projects. that DEPD -r entlepreneur or the Wea&CoutinCalifomia,(4.000 generated wezedemODBtration innovativeutility&befinaneial machines inatalledu of12183) in nature ud had little com- ...... ,. to .....,.,.,..qny 111l­ ...mwti-mrbinearraye,alarp mercial application. dertake a wind farm project in Dumber of small wind IeDer&· In moat caeea th-projecte Alaska. . · lackedadeqaatefo&w~ The main parpoae of &be - tied top&her to prodaee ,PDWft to aeU to a utility. becaaaoflimitedt.indi'Dg.,. . _.a ia to zeimburee the '11uoallbamechaniamcallec1 TBB PROGRAJI utility, ud throqh the utility "awided coat" &be utility 1111,.. Under the Alaeka Power the developer, on a per kWh this eleclricity at &be .... of Authorit)"aPowereoatAui& leDer&ted baaia. their prime fueL ance Program, which hu been Thia 8llowa &be utility to The utility hu no risk since wellreeeivedandvery- J1811'0tiate a -very zeuonable it only pays for electricity ful in rural Alaska, a utility ia price per kWh from the wind de6wnd. zeimlnmed on a per kilowatt- farm IIDd thue paea that aav· In miiDY - the utilities hour(kWh)orfuel_,..._ inga on to &be connmer. are very amdou to lip ncb buia. · ·~ Italeoallowathewindfarmer -te aod reeeive this Thia~whilheapiq~ to....Uwhatmighthavebeeo power since it hu the pilten· &be coat ·down w tile conn- a maqina1 c. noopiVfttable tiallll allowing them to meat -., ia providing ·a diaineera· veotoze into one which now ia. demaucl- withoat havinll' to ~veforin...... ,inwindfanlla ecoaomiceJ]y'Viable. balldaddltinale1ectricalpn. who are a-pting to ,...... It allowa &be atata to inved ;.! .atioD capacity. tiateahigh IHIJ beck rate from ita IIIDIMy in .., alternative ,,j The Wind Generator Incm­ &beutilit)'eotheycanalfordto ~~ri8k~­ llw Program ia cleaiped to inatallafim.ratefadlily. ln..,._L . tabadYIUlapofaJI &be good TraditiDnall7, in moat caeea · qilalitlea of &be wind farms. inrural-AlaakaitiaaoleDOllllh And laad)', it provides the Coo.lderiDg the high-of limply to inata1J a wind,...... inceotiveafor &be lllllllllfadv. Win-Alaaka aod &be atororaa.ieaofwind.-a- s.epaD.. P.,.lO Wind generaUon growa In popularity In Alalka -u.a& wind-theN, - withcMat innelling or • - ,..._ fll_.. -Y-IIICU'-otlilorch fl, 11114

_... uul m.mw.. it ...... -.iorntPcmalcenlel'ill West- eumplewoaldbeUOperkWb larp. ....tall7. em AlaUa which;. zeuoua- hour uul that woald be the However, thewilldfarmerill ADIIDIIlple woald be a atil· ble ef&lent (pneraliJla 12,3 muimam the utilitywoald be rural Alub hae , clifficalty Farm itywhich_tl,.haeaprice kWh per pllon of m-1 fuel, williDato p&J'& wind farmer. mlll

. · Resources ••• For Now and The ·Future .., V" /~ ----ENERGY 0 Hydroelicbic Generation •· . 11111110 W111r SupiiiJ ;nt Tltllmlnt -/ / . __,...,.- [J lllg1anal .., RMr Basin l'lllrilg ~ 0 TrausmissiGn and llis1ribullon [J W111r Quilty ;nt ~ Tltllmlnt , "-. . / _.,., 0 Coinbustion Turbine Generation [J Dims. IJillls, (:aniJal S1rucbns t I v ...... _ / 0 Eleclrlc Syslam Management [J flaad MngiiMnl;nl Dnlinage ~'-..- o Allamative Energy Planring IMD 0 Minilg .., w.. Oisposal [J lnMirill Wasta MINQimenl [J !Mid Ula .., Envinlmadall'8nniltlng 0 TrnportatiOn ;nt Comnuily lnlniSiruclure [J Agricullln .., llliglllan

HARZA ENGINBNG COMPANY Consulting Engineers 2111 Willi ...... --Anl:lllnge, Allllll iasoi ,... s. ,_ ..._...., IIIII 2111-4415 ...... , ~DC WHk of MilCh 18, 191U ALAIKA'SI!NEIIGY RUOURCU ,_ 11 litlri'cultural applicationa. lleaidenta of Klamath Falla lo the ooufac8 is limilad. however, were not near R... N- Zealand IIN8 pother-. havemiuleuaeofthereaoarc:e Three of the Klamath Falla oian aettlemenla. mal reaourcea for epaee heat- on a noncentralized basis oince ocboola help lo conaerve this Aflar Alaoka'a piiiChaae by •Geo iDs, electricalgenaration and at leaot 1900. By 1974, there walaraupplybyoperatingay• the Uailad Stateo, theN wu · indu.atrial pnrpoaea. were allout400 hot waterwella lame that return the walar lo littlet\artberdeveiopmontuntil Coadlluecl from Page 1 The ayatem at Waitekei u8ed for .the space beating of· the reaervoir after is uae in earlyanlreprelleuncamenortb reflaabea the walar, providing about 500 atructuree. beating. with the gold ruoh. 1n i904, Prince Piero Ginori for grealar utilization of the Uaed principally for epaee Boiae,ldabo, baa one of the Following the tum of the Conti oet up an experimental inatalled electrical generating beating ofreaidencaa. oldeotdiatrictheatingeyotema. centary,roadhoaoeoandomall geothermal genaralor, which capacity. ochoola and bueineaeea, the Built during the 1890o, it con­ aetUemonla appeued at Sitka, wureplacadbya205-Kw-, Japan baa a number of geothermal walar Ia alao uti!- tinneet.Ooerveabout200b- Tenakee Spring& and Baranof tem in 1913. tbarmal areaa and a variety of ized 1o beat ewimmiDs paola, and 10 or 12 buoineaeea. in Soutbaallt Alaaka; Circle, By 1976, only the Unilad applicationa, inclUing opaca· paateurizemildandmeltonow ALASKA ChmaandMaaleyHolaprlnp Stateo aurpaeoed ltaly'o el..,. heating, electrical generation, from pavemonla. Prehiotoric uae of Alaakan near Fairbanb, and Pl1srim trical generation from pother- iadutrialpc~WWpneratiaa,hor- CJooed.Joop, downhole heat geotbarmalreaourcea for batb­ and Serpentine Hotapriap malooarc:eo(ahout400,000Kw) ticul-andraiaingaoticftoh uclumgen have replaced the .iDs andcookingwaa probably near.Nome. Ao the proopectora left h~==~.;..":.J,'::O: ...... ~ :' :c,. ~.;." . -~':J Alaaka, uae of tba bot apringa are healed with centralayotem declined. Some of tba lodgeo geothermal ateam. oarvived OD a marginal baoio, Geotbarmal welar wu lim but there wu JitUe chanp in uaed for opaca heating in 1..,. the Patlarn ofgeotbermalutil· land daring the 13th Century. i&iltion until the 1atR ~. Seriouo drilling for central uae Now with ·the· COIIliDercia1 bqan in 1926 and upanaion growth of the State and the continnee today. renewed inlereat in non·foaail Geothermal .....urcaa DOW fae1 mergy ooarcea, pother­ provide heating for half of tba mal-baveuoumeda popala.tion of lcaland in addi· . -importance. tion 1o much·of the country'a Preaont uoage and uap eJectrical power. under COIUiicleration rangea The beet elt&IDple of a large from apace and w-heating ~geothermal heating­ to eJectrical generation and tem io Reykjavik,. Iceland, agricultural lo aquacaltual where 99 percent of the city of application. · 88,000 is oervicecL The city is Worthy of opecial note are divided into dilltricla, each the Navy-funded aploratary pumPiDsfroaireaoarc:eowitbin drilling on Adak and the the city or from Reykir aboat recently funded s- projoct 15kmawey. at Pilgrim Hot Springe in the lnpat. tempera-. range Nome-. .. · . from 80 degreealo 119 degree Theoe~&Nindicatift C, lower than tba 138 degreea a.o-..... Wall dllhcl by ...... Geolllermlll· oftbaincreuodin-in the C tempera- in the north at ..-cu.,_, MyvaiD. s-··An iiHioptb potbermai-­ otady, .Al&Ma •• and animalo. Plano are alao baiDsmade lo original - of natural bot qaite COIIllllOIL Hot apriDsa Geotlumnol.a-byDoa oapply the .12,000 people of UNITED STATES opringoaatbaprinciplemeana -'1111111 bad religlouo llil· Markle, flllided by the u.s. Alaueyrifioamgeotbermal weJ1a Ia North America, theN baa of1llilization.Welldeptbarange aificancelotbainhabltaalaof DopuaentofEIIeqytblaagb in Laagaland, 12 km aoath of been a long hiatoey of geoth­ from 27 lo 549 m. depandiDs the .... At timlo, - Orepn Iaotitate of Technol· the lawn. ermal bathe andopaca heating upon the required hut oatpa&. waelndltforbetterutillaation ogy, wu pabliabod in Janu-. Both eytRama pomp geoth­ of reaorla. For inatanca, the Residential wella are uoaally of the aprinp. uy,19'19. ermal watar from the we11a 1o developmantoftheuniiRalcll)' betWeen 70 and 100m, whlla Aneumpleatillin-iotbe · APPLICABiLlTY TO llor&ge timb, wheN it io held otaam fieldofCalifornia'o Big COIIlllleiCiol wellaareconimoD- 'lftiCidon criba conatrai:ted. the . RURAL ALASKA Goy- baa __ullad ·in tba ·1o maet demand and eventu­ ly 300 to 400 in in depth. the Tlinlit IadiaD8 at Chiof .'l'be dolllograph)' of Awb Ally circalalad 1o tbacuotamer world'o larg.. t seotherinal Tompera- vary from' 40 1o Sbakea Hot . Springe near baa aniniportantinflunceOD .at 80 degreea C. electric-~nction-. 11 the...... ,."-in the State. Other countri.. aoegeotber­ However, the moot - ~ ;,.oantofheatin ~Ruooi&na continued the Halflo~oftbe400,000 .mal power aa -11. Huilgary ful U.S. apace' heating devel· otorage at Klamath Fallaionot inotlitll, inlariDittent - of .th~ people live in the "Rail Belt" IIN8 geothemal bot walar for opment baa taken piaca in criQcalforpreaentuoage, walar bot apriDsa where it wu con· apace heanng and,· notably, Klamath Falla, Oregon._ availahlalolr&Difertheonergy venlon&. Moot of the opringo, SeeGBO,PapU ...

We provide them

• Cold Regions Engineering • Civil and Structural Engineering • Transportation Planning and Engineering • Energy and Utilities Engineering • Construction Management · • Land Surveying . Public and Private Sector Petroleum Industry Mfnerals Industry 313 E Street. Suil8 2 Anchorage, Alallal 99501 Telephone: (907) 276-0517 Teleclipler: (907) 27W213 Telex: 09025168

.I'

arctic·~ ~ A SUfiSIDWIY Of ARCTIC SlOPE REGIOIIAI. COIU'IIRATIOII ,..,. fi~'SINIRGY IIUOUIICU-ol-111. 11114 pothemud wAter). to- each ae Nome aeinr the hM been propoeed that 90 per­ thermalreaoaree ~for exam­ Expanaion of the.. a ..a local reothermalrradlentcould cent of the atimated Bta'a to ple, a reaidence. The-ofhot woald noduce dependence on be anderlaJren, thoarh more be needed for apace healinr by water a:vaem. aainr caet iron imported fael8 and help pro­ dateiledreoloaicalinformatiOD 1994 be provided by pother­ radiators hM been around for •Geo (each ae would be obtained Coadaued fl'oa Pqe 11 vide a local .oaree of food8 mal--. dacad•. that mirht not otherwiM be flom tat bola) ia -.ar:v. Geothermal watersnquiJeno available to the community. eince this type of information GOETIIERIIAL SPACE fael. However, the waters an­ between Anchorare and Fair- PN.ntinterwtal80incl11de8 ia llpare8 in - of Alaeka BEATING TECHNOLOGY ally corrode plumbinr materi­ banD. The rat an acaUend aq1UIC1Iltun and reindeer h,.. other than thoeeforwhich ~ SincepothermalapacehM~ ala at an ac:celerated rate dae 8CIOIIII a rerion that woald handry,alonrwithdryinrand roleum well information ia inr hM a low annual opera· to their hirh aalt contenL stretch from cout-to-cout of Nfrireration facilitiee. available. lion coat, aUention neede to be The coat of pothermal en­ the Lower 48. Another pouible-of po- err:v for diNCt heat applies· Beoa- of th~ character- thermal ....,_ ia in die tion ia pnodominandy a fun. iatice, t:ranaportation ayaem. tzeatment of .olid - and ctionoftheintialcoatofdrilliDr an quite limited. Moat anaa .....,._ and caeinr a well followed by an IICC888ible only by ama1l Althoarh hirb-temperamn the inatellation of heat ex­ plane, boat. dor aled, or foot. potbermal--=-with vat chanren. pipiftr, valva and One of the unavoidable con· economicpotenlial an located iDaVamentation. aeqa- of the size of the intheW.....,.UMoanteiuand GEOTIIEBIIALDRILLING ateteiathe-mely birhcoat the Aleutian Chain. develop. IN ALASKA of fael. A banel offael oil will meat of theBe ....,_ ia a A number of yean aro at coetover$100inmanytowna. lonr·term pouibility and ia Pilpim Hot Sprinp, ·it waa Another result of people Hv- hirhlY dependent upon - ..-rytoelevate the reoth· inrintownaofander300iathe kednr and technoloaical fac. erma! hot water to a leval of15 relltriction offtnancial reaov- tma. to 1s· feet &hove the nrface of c:ea. It ia quite anJildy that a the pound 80 that the heat villare will be- doinr mach · coa1d be traDaferred into a reothermal exploration and DMdty charch. drilliDr 80iely for ~-hM~ The chan:h oflieiale decided inr enerrY· to menly hand-drill a pipe 'l'beNCole, with the-=eptiOD ahoateirhtfeetintothepoand. ofthe U.S. NavalbueatAdak . With thetemperatunand pne­ and the atet.e-funded projec&at ...&omthepothermalwater, Pilpim Hot Sprinp. canent it waa pouible tocibtain a flow development of pothermal flom eirht feet beneath the --in Alaab ia limited earface of the water to the to aimple development of na~ deeinod 15 to 20 feet above the ural hot eprinp. levelalthepolbonaal-.air. There an nearly 80 located Thiaaimple,yetappropriate, Alaabn hot eprinp and an teehnolar:v altampiftrthe pipe additional22 reported thermal into the pound ehowe what aitea. Httle inrenaity can do to With the low-temperature c1ne1op an enerr:v NIIODJCe. climateandzelativeiylowtemp­ Mme-d:v. the...,m-. erabmt of the aprinp. reoth· have drilled a hole 1,911 feet erma!-an quite ni~ deep at Adak OD the A1eatian able for DOD-electrical applica­ tiODL·. Chain. .. , •. Whilelow-tomoderat.e-temp­ Utilbation ainlldy include. eratue ehallow-well teclmol­ ~bethinr.ll)lllceand ar:v ia aimilar to that aeed for water beatinr and arricultun ~and pWdinr in SeeG~Pap18 anae haated by nbnrface

coatpneral veruinformatiOD fMtandbyJolmManavilleand ~erally available in - CPVC pipeq~&terial ia feaeible for pipelinea. othen. nchaeSeanandMontromer::v for - in pothermal waters There are eeveral pipiftr Another pipiq material ia Warda. for temperatarea ap to 180 •Geo materiale which can beaeed to the atandard carbon ateel pip­ Above 120 d- F, the derreeaF. Coadaaed &om Pare 12 t:ranaport pothemud waten. iq. Al80, polyvinyl chloride, temperatun and the~ Other pothermal pipiftr in· One ia tranaite, a trade name PVC pipinr, ia aeed on waters will be too rreat to permit the for the aebatoacementmana- ap to about 120 deireee F. It ia atilbatioil of PVC material See. GEO, Pap 18 -ter welle, the drillinr equip­ ment that ia aaed for a deep tional aUthority ingeothsrnatalenergy whohsld a key pothermal well i8 .omewhat CJdugory pOsition With tM (edertJl eMrgy Gller&ey. aimi1ar to the equipment that INTERVIEW: Wa there cmy (ollowupf ia aaed for an oil and rue well. Nevertheleu, there ia on Phillipe: Yea. Ogle returned with a bir group of28 ~or concern with reapect to C.J. Phillips people incladiag Wamer and K1111Z8 and later a pothermal drillinr that ia dlf. amalier groap visited aa. ferent from that for ail and (FoUowi"'l;. Dr. GeM Rutkdge'• interuMwo(C• .T. rae. and that i8 in the atilba· Phillips, prelident of Piltlrim Hot Springebu:J Rutkdge: In our ARERPP oolume• (1911-1980) we tion ofdrilliDr mad. IIIJY tJaia about Pilllrim: "ForrMrly known a Kruz­ While drilliDr mad ia accep­ Rutkdge: W1aeA did you first become interftted in gamept~HotSpri"'la, thsepri"'l• were uacd by 110tiw table for an oil and rae well, it the geothermal potential at PilllrimP Alakllu for bathi"'l, yeara before ths Ruaaicu can be a problem with reoth· Phillipe: 1D 1948 when I wu worldlitr fcir U.S. arriwd in Aluka. Tom accoiiiiiiOdate ugitora from enaal wellinthatitmaycement Smelting. ' the fractarea and plq of the Nome and othsr mini"'l centers, a reaort waa built in pothermal reaoaree. Rutled6e: What is your role wit/a rapect to land about 1906. A fire in 1908 destroyed the roadhouae Sometimea aalt ia need in· OWMra/aip and who Cite your neighboraP and IIIJioon. and ihs property waa do110ted io ths stead of mad to contrul the Phillipe: I obtained. a 1- in 1969 from the CathoUc Churr:la. Fr. FrederU:k A. Ruppert S..T. and pothermal preaaare.Itia ai80 Catholic bishop and in 1973 it wu revilled for an aoirae 120 orpluJu who Clllll4! to ths church a a reeult important to carefally record 100 yean. In 1974 I hind a Tau con· of ths Spt~r&iah ill(lu.eraza epidemic uaecl the geothsr­ temperatue meaeiiiiiDltiDta at ~for 1 101D8 Bill' mal apace varioaa~,aleueaaenlia1 tractor to do of the naiativity teatll. The e"MrllY from 1919 to 1942 (or heati"'l and procedure in an oil and rae roandiq land belonp to the Mary Igloo Native gardeni"'l. Siuplu Wlletabke were sold in Nome." efforL ;roup, which haa bMn Yftq cooperative in oardevel· . Now in your own worda, wluJt luJa IUJppened since The drilliDr plane for the opment efforts. that time, holea ..-ry for a demon­ Rutkdge: Giw ua a lillk hilt.ory of Pilgrim. Phillipe: Well, two welle were drilled to 185 feet, stration •INIP heetinr project Iivia&' the total of about 400 gallone per minute at are riven iii a report by R.C. Phillipe: It wu Oll8 of the fim·homeatead Bites Stobr(l975).Stokeridentifiea granted by the U.S. goverDJilent-: to Henry Becku minu 195 degrees Fahrenheit. Now m welle have the drilinr materiale for the in1905.Itaerveduawayatationf0rminenandeon been drilled with one to 1,001 feetandoneto800 feet. caainr, drill ~te. caeinreqaip­ of a health 11J1L The tim fbi epidemic of 1918ldlled An ucellent report was iaeued April 15, 1983, by ment. drill ~. drill rod and many adult nativea, leaviq nUIIUiroUB OIJihana in Woodward-Clyde prepared for the state. Also, a "'tabinr. northweat Aluka. The bishop of northern Alaalra report by Economidee atatea, ''The exiatence of a hot GEOTIIERIIAL PIPING acquireclthepropertyforueuanorplumage.Ihave water· zone of about 150 degmea Celaiaa and at a Both at Chena Hot Sprinp some moviea made in the 1919 to 1941 time period'­ depth of aroand 5,000 feet is DOW virtually certain." reothermal pipinr ayetmea have aaed wood. A number of both blaek and white and later color; Some people lbaledge: What does the future,bpld (or Pilgrim? other materiala (black ateel, feel themovieaarea veryvaluablepartofthe history Phillipa: The road from Nom'\' to Pilgrim Hot CPVC, PVC, cartina and of~ . Springs and Mary Igloo will be completed thia aebeatoa cement) have bean Rutkdge: In ths early 1910a Iuiaited PilBrim Hot ll1llftlller. Evaluatione are under way for uae of the analyzed for coate by I.A. Eqen(1978). Spri"'l• a chairman of ths Thernatal E(flunta Bite for health, recreation and reHareh- electrical Al80, anAiaakafirm, Enerr:v ApplicatiDu(TEA)ColrllnilteeofthBWeetemEMrgy power generation and spaces heating uaea are a poa­ Syaem. Inc., waa to pabliah Board and bt'OIIIIht tUo"'l Dr. BiU Ogk, an intema· aibility. ,.,.,.M.MKA.. ____o/Amclt f8, ,,..

Energy roadmap charts resource, Energy ''Roadmap" site, operation, issue for series An early problem in evalua~ Comprehe~sive Energy Planning Elements ing Alaaka'i energy reaouniee W88 developing a chart, or "roadmap," that woald BJIOC' ify wbora we stood and wbora we wanted to go. Calli Wind • · After many montba a table 111-) of energy planning elements w88 completed. In any energy Wood planning, one needs to know: • Tlu! I!Mf'BY reaoruee(quan· tity/qilality)~ laitcoal, --· ou, .wmd. etc"! • Tlu! •ill! of this - ...... - Whereiait? • Tlu! operation- What baa man done With this raoo.....,, from ·ozploration to tranapol' tation to elec:tric:al generation to rac:lamation of land, etc:.? • Tlu! iaaue 8810c:iatod with ._.._ the Operation -· economic, Technology ea~ental. etc. • State-of~AI1 •·~·...,_...... ,,Ktors ...... For.aamplo, one may ~t ..__ •C.... to del8rmine the coat of gone~' • Etltcienciea atingeledricityin Betbelaainlr ._..,. •Net Energy wind mac:binea - a work ·-·-"'- element. • Tlu!I!Mf'BY-iawind; • Tlu! aitl! ia Bethel; • Tlu! opertJtion ia elec:tric:al pzaeration; • Tlae U•ue ia economica. Tbe.tableof"Comprebenaive Energy Planning Elements," INFORMATION COLLECTION AND EXCHANGE our energy roadmap, ia the lint alllp toward identifying onr Edu~alaMI work with prograea 88 a func. •UniwretSitift & Scltoole tiOn of resource, site operation •UbrWtel andiaeae. The roadmap W88 developed 88 pert ofihe Alaaka Regional ·-­ Energy Reaonrc:ea Planning ·- Projec:L.

and-lion. Thera are ahou 96 known. Alaakan thermal oprinp four having tempera- great.er than 150 clegraea c. and :u withtemperamreaof90.,_ to 160 delreu C. Tba many known llurfac:e indlcationa of tbia low tempera- geotb.,.. mat· .walllr are a oignific:ant energy_...... in Alaaka. Norm4l Gnu&nt Syatl!ma From any llurfac:e loc:ation on -..rtb. if a bole ia dog d­ onongb, ageotbarmal raaourc:e will be located. A normal haat gradiant ia ahoUS~Cper100metiera belowtheeartb'aanrfac:e. Some haatgradients88bigb8815to 18 clegraea C per 100 emtera have been obaerved in geoth· erma! araaa. Drilling in an .,.pec:toci DOl' mal iradiont location, the def. inite _.;bility ezial8 that the gradient may be above normal in Alaaka, and thara ia oven the jlouibility of a rapeat of the Hunguian Rperianc:e - diec:over of oil and g88 dnring geothermal .,.ploration. APPLICABLE TECHNOLOGY ·Technology of beat tnm.fer for geothermal ayatsma covora a wide . l'&Jlge of date ·and information, ainc:e tempera· __from ambient to graalllr than 540 degraea C are in· volved, and ainc:e applic:ationa inc:! ode both apace beating and elec:tric:al goi>eration. Hot lgneOu ·SyateiU (M,.,.,.J (more thma IISOdqreuC) See TECH, Pqe18 ,..,.11~'8-Y ___ol_11, 1fllf •Tech

C'allllltal ...... _ _,..., - - u -~ .. UJIJ ·-...... ':"J::...... - ~~ ...... , ·- ~...... ·- ';'I'm.-...... a:rwu.. ··-·-- ~~..... ~...... •• ·- ~...... •' ...·- ·-,_ ~...... ~ ...... II~ -:r..t: ...... ,_ ...... ,. u· .... ~···- .. .. ~- ...... •• ._- •• J ~- ,._ T~ ...... = .,.~ ...... It C..- ~ .. _ ~~ .. ";:r~.,;.,n _";:P,.t:o:, ...... •;:r.,~:;;,,...... ·-.. ___ ...... =t-. .... ,.. ,_ "::':::~ .. ~ ..

_,.... ~----...... -.~.,-----.., ...... ,._,. IIALMIIA'S 1N810YIIIIOUIICUIII""'ol- Ill. IIIIN

equipment and tremendoaaly more costly. Where ARDI can mobilize and demobilize its equipment INTERVIEW: quickly to and from a drillllite, the much larger oil drill rigs on the North Slope up to conduct •Tech are set Condaaed from Papl'l' Ray Morris large diameter hole drilling to greater depthe within (Followifiii is Dr. Gene Rut/edge's interoiew_w!th a emaller area ofoperation. To have moved a drilling In weter

''to

M111at DIIIIIMIGf-.,-· _. -----·---·------.._.. T __ Oftloeol ..-·-- .....AIIIIalll...... ,tor _--.. _ ...... _...... ::.:"D.':'- f --110.071~ \ Coming in Copiu of tM Alakllqiollfll EMI'IlYB.....u.n Pllua­ ning Project uo1uma were unt to t1u1 s- Librat"Y in J-, """" boro1111h lil>rat"Y, otate "'ICncia and tlul April: Gas Alak lluou""' Librat"Y in tlul F«kral BuiJdinB in Ant:hort~~~e.Many.,.,;n.rinll(imuaJ.o,...,.,hoNdcopia. In eaeh auppkment of tlul ai%-port uria, o table of eon· Natural, Liquefied """for topiu couered in tlul ;..,., and whse they...,. 6e found in tM ARERPP uoluma ia beinll indlukd toGUiot & Synthetic thou UJiahinll to conduct furtMr ,...... rch. Followinll ia tM table for iaauacouoredin thiatdidonof "Alak'o EMrgy Reoo..,..:" ~20AI.AIKA'IINIRGYIIIIOUIICD_ol_fl, , ... Three vital facts that will simplify your turbine decision:

• Fact •t: UnCquallcd dlicienq• iiid reliability means only the. Vc:stas v~•~ can ~te to utility staiKiard'i while producing more revenue!

• Fal.1 •2. Fofl."C: 12 rugg~ is provided by extra margins of strength and safety of the'V-15 design! . . . 1 •Fal.1"'3. lbeV·I~_is the leading Clioice of l."ClliUUlee'l.ial windpower uperators in Amerka and Europe! For more vital /acts, write: Box 276, Tellacllapi, CA 93561

lf•lliiBC-R' NORTH AMERICA LIMITED ' .-1 .... ·, : ·~ :.~-·; ·:.::..·~·· ~., ·~ ·:- ...... I ! WORlD I.EAI)JiRS IN WIND 1URBINE TECHNOLOGY 1 I i~ NATURAL GAS... 1985 UPDATE

The natural gas reserves in 19841.2 billion cubic feet was Alaska, as of January 1, 1985, consumed. Another field, Wal­ are shown below as compiled akpa, is about 19 miles south and published by the Alaska of Barrow, and contains about Oil and Gas Conservation 250 billion cublcfeet of natural Commission. Natural gas is gas. A Barrow energy study currently being used in three was completed by Coffman areas in Alaska ... Cook Inlet, Engineers in April, 1983. Barrow and Prudhoe Bay. Only Gas Pipelines: The North­ one area, Cook Inlet, ships nat­ west Alaska Pipeline Company ural gas outside the state. Phil­ retains an interest in trans­ lips-Marathon makes a ship­ porting natural gas from Prud­ ment ofliquified natural gas to hoe Bay to the Lower-48 via Japan every nine days. Canada. .The Yukon-Pacific is interested in moving gas to Estimate of Gas Reserves in Alaska tidewater and then to Pacific Reserves* (BSCF) Rim markets. Neither project January 1, 1985 made any major advance in schedules for delivery in the Non-Associated Gas by Field Associated Gas by Field Shut·In Gas by Field past twelve months. Beaver Creek 221 Beaver Creek I Birch Hill 11 Beluga River ·676 Granite Point· 18 Falls Creek 13 APA Study: The Alaska East Barrow 10 Endicott 731 Ivan River 26 Kenai 751 Kuparuk River 1,480 Nicolai Creek a Power Authority has decided I..Rwi.s River 21 McArthur River 29 North Fork 12 McArthur River 600 Middle Ground Shoal 9 West Foreland 20 to re-examine the possiQility of North Cook Inlet 812 Prudhoe Bay, Total 85 building an electrical generat­ South Barrow 9 Lisburne Oil Pool BOO Sterling 23 Prudhoe Bay, ing plant at Prudhoe Bay and TTadingBay 29 Prudhoe Oil Pool 28,500 West Fork 6 Swanson River 259 moving the energy via a direct Total 3,158 Trading Bay 2 Total 31,829 current transmission line to the Fairbanks-Anchorage in­ Alaskan gas reserves are up tertie. In April of 1985, the to 35 trillion standard cubic APA requested a number of feet. Majority of the gas is still companies to estimate how contained in the Prudhoe Bay much they would charge to do Field. TheadventoftheKupar­ various tasks that would in uk River W aterflood and the ·. ~otal comprise a feasibility commitment by operators to study. develop the Endicott and Lis­ A 1983 reconnaissance study burne fields added over two wa:s completed by EBASCO trillion cubic feet to Alaska that examined three options gas reserves. for the use of Prudhoe Bay gas: In the Cook Inlet area, oper­ (1) The electrical generating ators of the Trading Bay Unit plant at Prudhoe, (2) Pipeline have committed to placing a to Fairbanks plant and gener­

ating there, (3) Pipeline to tide­ I new platform for the develop­ , I ment of the Grayling Sands water in Southcentral Alaska. above the McArthur River Cook Inlet Natural Gas Field. They estimate reserves (ENS'l'AR): The 100 mile, 20 of600 billion cubic feet. inch gas pipeline from Beluga * See footnote page Vl.1 to Anchorage was completed Barrow Gas Fields: In Oct­ under budget in the fall of1984, ober, 1984, the ownership of a year before the scheduled the Barrow Gas fields moves date. The pipeline completion from the federal government now means that Anchorage to the North Slope Borough. has two sources of natural gas. As of January 1, 1983 the East Since the Lewis River gas field Barrow Gas field had reservjE!S is on the pipeline route, the of 11.6 billion cubic ff:Jet and peaking capability has been the South Barrow· Gas field improved as a result of the had 10.4 billion cubic feet. In winter contract associated with

IV.l Sometimes there's n1ore to a bank than n1eets the eye.

Rainier Bank Alaska is a lot financing every kind of project. Expe­ specially trained staff that only we more bank than some people give us rience that comes ftom having roots can provide. 1 · credit fOr. in Alaska that go back more than 50 It's a combination of expertise The reason? Our affiliatioh with years. and ready assets that you can only get the $8 billion Rainier Baricorpora­ Our specialists will give you at Rainier Bank Alaska. · tion. It means we have resources that skilled financial advice in Alaska's Because we're no ordinary bank. let us put together financing fur your traditional industries, or in the state's But then, this is no ordinary state. business~without having. to involve developing economic segments such several other lenders. as energy. . The ~e5ult is a more efficient We also have an entire 'loan process and often faster loan department devoted solely to RzuNIERBANKl\IMK\ approvals. We have experience Public Financing, with a · The natutal resource.

· ...... · ---

the now available gas field. financial burden on the resi­ Since the new pipeline reach­ dents of Southcentral Alaska es gas fields not available to whilecloudingtheenvironment the old pipeline, the ability to for future resource develop­ negotiate with more gas owners ment. is now possible and the likeli­ Last month the state Depart­ hood of more competitive pri­ ment of Natural Resourcesre­ ces for Anchorage consumers vised its decades-old policy and is evident. ordered Cook Inlet lessees to The pipeline also gives more collect the state's one-eighth site options to electric power royalty gas share based on companies that desire to use market value rather than the gas as a fuel for electrical gen~ much lower contract rate. eration; In the case of Chugach Elec­ With gas distribution sys­ tric Association, that decision tems in Palmer and Wasilla, raises the price of gas from service is now available to the about 26 cents per thousand valley. cubic feet (MCF) to about 40 Cook Inlet Natural Gas cents per MCF. (Marathon): Marathon Oil Utility Bills for the approx­ Company announced in Jan­ imately 250,000 residents of uary, 1985, plans to spend more Southcentral Alaska will rise than $100 million to build the by as much as 4 percent as the first gas production platform state collects about $3 million in more than fifteen years in more per year from Chugach Cook Inlet. The "Steelhead" consumers in increased royalty platform will be located about fees. 22 miles northeast of Kenai. Chugach, along with its The Steelhead will produce wholesale customers - Mata­ gas from the Grayling Gas ;nuska Electric Association, Sand Reservoir which is part Homer Electric Association and of the Trading Bay production the City of Seward-vigorously unit in Upper Cook Inlet. It is opposed this decision and will estimated that the reservoir explore all avenues to protect contains between 600 and 800 our customers. Residents of billion cubic feet of natural ... SouthcentralAlaska should not gas. be penalized for residing in an Marathon and Union Oil own area where natural gas is both the field, and Marathon, with plentiful and cheap. 54 percent interest, will oper­ The state's decision appears ate the platform. particularly paradoxical when With construction of the plat­ viewed from a statewide pers­ form beginning late in 1985, pective. In all parts of Alaska - company officials hope to begin except for Southcentral - the ~ production in 1987 of 160 mil­ state is subsidizing energy costs lion cubic feet per day. for its residents. Royalty Pricing: An energy Since 1981, the state has ap­ issue that suddenly descended propriated $449 million to help upon half of Alaska's popula­ equalize power costs in 136 tion was the announcement communities. The. state spent (March, 1985) by the State De­ about $122 million to build an partment of Natural Resour­ electrical intertie between An­ ces that the cost of royalty gas chorage and Fairbanks to help would increase. ,. , lower power rates in the Inte­ Exerpts from Robert Martin's rior city. article in Renergy (April, 1985) And more than $500 million are given below. Mr. Martin is from state c9ffers have gone to ·general manager of Chugach build dams for the communi­ Electric Association. ties of Kodiak, Ketchikan, Pe­ The state's decision \O _col­ tersburg, Wrangell, Valdez and lect higher royalty payments Glennallen. from natural gas producers in Thestate'sdecisionalsorais­ Cook Inlet places an additional es questions over the defini- I' IV.2 T

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' ! tion of market value. The term Alaska court decisions to sup­ "market value" is a nebulous port that decision, although it one. Is it the highest price ever will impact more than half paid for gas? Is it an average Alaska's population, from of "prevailing" price paid for Homer to Fairbanks. gas? Is it what producers could "The state would change the realistically sell their gas for basis for valuing royalty gas today? which has been in effect for 25 Dale Teel, president Enstar years or more. It would set the Natural Gas Company, ex­ stage for similar and more sev­ plains his position on the royal­ ere changes (price increases) ty gas price increase. by the federal government and "Most of our gas comes from native corporations which also the Kenai gas field. The pro­ have royalty interests in gas ducers, Marathon and Union, we buy. Many millions of dol­ have seven-eighths of that pro­ lars per year would be taken duction and they sell to us at away from gas and electric long-term contract prices customers throughout the rail­ reached in tough arms-length beltarea. negotiations in 1971 and in 1974, running to 1992. "It is trying to depart from "Recently (in 1982) we nego­ the 25-year standard that con­ tiated contracts for additional tracts properly negotiated at future supplies from others, and arms length on "working in- we are now paying more for . terest gas" are the proper bases this additional gas to the year for valuing "royalty interest 2000 because the market has gas." changed since 1971. "Royalty gas cannot have "The state has now decided any higher value unless the that its royalty share of the state takes it in kind and sells "old" Kenai gas will be priced it to someone at a higher price, at the level of the new contract which the state is free to do rather than at the old level we and would be fine with us if the negotiated with Marathon and state could do so. Union for their seven-eighths "We will resist the state's of that gas. The state would do arbitrary pricing of this gas in this with no established legal the courts and every other way basis - with no public hear­ we can. We hope our customers ings, no regulations and no will support us."

Excerpts from R. H. Weavers' remarks to the Alaska Support Industries Alliance "Meet Alaska '85" March 2, 1985

"Exxon remains convinced that an aggressive search for oil and gas must go on despite the uncertainty about the near term oil price outlook that has been the recent subject of statewide concern. This is evidenced by the high activity level of Exxon's exploration in frontier areas. In 1984, we drilled five wells- two in the St. George Basin, two in Norton Sound and one, using state-of-the-art technology, in the Beaufort Sea. This. ac;t~vity is continuing in 1985 with exploratory drilling proceeding in the Beaufort, a return to Norton Sound and a new effort in the Navarin Basin of the western Bering Sea, which will get underway this summer."

"Exxon temains.bullish on Alaska. We are actively exploring, committing dol­ lars, and continuing to contrj,bute to the decision making processes on marginal fields in which we htz~e \an interest." '.

IV.3

Alaska n·atural gas has great p.otential Natural gaa is one .of nature's finest fuels. Those communitieS in efficient small liquefier which has about the corre¢ capacity for this Alaska that have it, Anchorage, some parts of the Matanuaka.Susitna sized community. . area, Kenai· Soldotna, and Barrow, lite its economy and its cilfan A second repon ia ~t,the natural gaa which will be liquefied is burning characteristica. • inexpensive oil-.the North Slope. The reason for this ie ~t the price of Natural gaa, which is mostly methane, is a very prevalent fuel and is the gaa is establiel]ed by the alterDative market. Because of high trans­ much morewidelydistributsdinAiaakaand the world than oil. Natural portation costs, an estimate by Alaska Power Authority is in the $4 per gaa burna cleanly aa it is composed on one carbon and four hydrogen million Btu range, and a low market :value, the price for gu at Prudhoe atome. · must remain low. · When it burns with olcygen it gives off mostly -ter and a small Thia meana ~t the tima11 ainolints uaed by the local communities amount of carbon clio:dde gaa, unlike oil or coal which produce greater should be Priced correeponclingly. Compare this to diesel fuel which is amounts of carbon clio:dde and hi some caaes sulfur clio:dde and other produced atNorth·Pole Refinery and sold at99 cents per gallon, trucked gases .. well. toPrudhoeforanother52cente per gallon, then shipped to the village. H Where the demand for gaa is minimal and where distancee from a the costs ·of cli-1 fuel at the village were .a.ll per gallon, the same source of gila are considerable, it is un!ICOnomical to transport gaa by eneqryequivalentinLNGwouldbeworth$1.94pRgallonaaagallonof pipellile. The communities with this circumstance ~ve had to burn oil LNG contllina 1-heat than does a gallon of clieiel oil. or coal or both aa in the caae ofFalrbanb. Hthe feed~ gaa uaed to make the LNG were$1 per million Btu, Thereia a solution, however, and ~tiatoliquefygaand transportit over6 tim•thecoetofgaaat Beluga, thecoetofgaa to produce a gallon in tanka aa oil ia now traneportsd. In the industry, liquefied natural gu of LNG would be 10 cente. This ewt takes into account ~t there is is called Ui'G. Gaa ia liquefied at atmospheric preuare by reduciug itll about a 210 pm:ent loa in.the liquefaction procees. temperature to a cold ·259 degrwa F. · Thia-~t there is $1~ dollare available to liqU!!fY, traneport To accomplish this a sophisticatsd form of refrigeration Qlltsm ia and atoz.the LNG aa well aa to provide aavinp to the community. The uaed. Tokeepthegaacolditmuat benoredand traDaponediJiinaulatsd flirara$1permillionBtuiaarbitraryaaitcummtlycostlltheoilcompan­ tanka; Th- tanka are made·with special inaulation Qlltsmll and of a1110118J' t.o Ninj_. ..._ special matsriala. · • . Afurthtlraample olpriciug policy being set by the aVIIilable market Currently,astatsfundedstudyiatakinaplawwl)ich~Mw~iptsathe is tha l!8la of Belup Gaa ~ Chugach Electric. Beca-there waa no tschni.cal probl-and economics Of~ a limaJl Yillqw Oil tbr .IUIIM~ wu • ..._.to naptiate a very good contract, slichtly NorthSlopewithLNG. ThiaW]qe,aCOIIIIIl~of301iPtOPie.isuiDI -16-t.~ million Bta. _· · dlNel oil for mo.t of their heat. Theewt to the 'rillap~dlNel oil hu · ~ Nillill.,...o4 wBl 'oCear in other areu, wharevv gaa ia ciisco. been aa much aa .a.u per gallon: Thia 1e iroJdc, u ~ u 10111!1 ....,.iaa&id11iatta'tooama1Joriatooisolatsdtomakeitec:onomicalto teiUI ofmiles to the eafi ia 26 trillion cubic feet ofgaa uacl tW largeet ati marke& or when the tnuportation COIItll are high. ~.Prudhoe, evwr discovered in the Unitsd Statsa. . Nowtha&-llllllketllh&ftdeveloped,gaaaoldbyEn.tarispricedat LNG offers a potsntlal solution fur thia villap's hiP energy coR. about S2J! 11ft millioa Btu ben in the Anchorage-Kenai- Belup LNGwouldbeproduc:edfromgufrpmtheKuparakR.ervuir.whichia 40 miles a-y and tran8ported in tanka, overland and ice during tfae• ln addition to gaa and oil fleluu a source. methane gu can also be winter to the village.~ tanka would be ~uled on rolligons Or other -atractsctfrumcoal ...Uand thia mayrepreeent the mo.t economical all terrain vehicles. · - ofllliniha deep CN1 deposits fur small uaers. ·BecausetransportationisacroutheColvilleRiver,itiaretll:rictsdtoa The Dew liqUIIfactimrtschnology, with a small ~ent plant, offers period when the ice can carry the vehiclee, which is from December to the opportunity fur Al8akan communities totakeadvantag&ofincligen­ April. Because of this, there ia a requllement for a large 8torage tank to oua energy-urcea.Asmoreandmoreuploritorydrillingtakes place supply fuel to the village through the time when LNG is not in A1aaka; there will be additional discoveries of gu. transportable. · . Wherever thia occDrs. even- in aituations where the gaa is non­ The LNG remains cold in the tank aa a portion ofit boila off, extract­ commm:ial (the ec:onlllllic8 are not there to eell or use it) there is an ·~. ingtheheatgained through theinaulation. Thia boiloffgaa, along with opportunityforthecommunitieitoacquiresmallamountsofthefuelat . '1' gaa which is produced when LNG runs through a device called a vapo­ a very low cost.. . rizer, will be odorized and eent through pipee to the village where it will Subaurface mineral owners should require ~t all of their contracta be supplied to power electric generatore and heat public buildings and for exploritory welle in the IRate contain provisions to require the supply homes. · of 1J.!8 to the local remdent... . There are several reasons why LNG ia an economic fuel for the vii· The ·liquefiers manufacblred by Geoeouree are a complete unit lage. One ieaaon ia that thftl'l haa been a recent development of an Continued on Pqe 2 EN STAR's 100-mile pipe line work smooth niuka Pipeline Co., a aab­ AlukaPipeline'acaatombrok· The final two ahiploscle of 'The pipeline conavaction eldat, apwarda of 300 people lidiary of ENSTAR Natural er, Marvin H. Parker. pipe wen nceiftd at Sewud c:ontractorillajoint"""tareof CIID be on the job at one time. GuCo.,ill builclinaa1CJO.mile, Foaa, for ita partl towed darina Janaary, 1984. North· Alaska. International Con· Completion of the project ia 20-inch pa pipeline arouul !he two baqa to Bel,Pwhere, ern SteYedorin1 a. Hanillina atraetion of Falrbanb and required by the fall ofl985, bat CooklnletandKaikArmfrom dae to the lack of IUI!CIIIdina Corp. loaded the pipe onto rail Soatbeu&PipelineContracton thecontractorintencia'totryto Belap to Anchorqe. docborfa,ciliU..,thepipewaa . -forlllinaporttoBirchwoocl of Lakeville, MimL The COil• finiah by the.fall of 1984. The ateel pipe haa been helicopter.qhtered uhore to the pipe wu c1irect diachupd tractor colllllleiiCed work With Hill early completion inten­ aappUedbyC.Itoh&Co.,Ltd., a pipe atoraae yard. to rail-aide atockpilea while at 1mWiiq operationa on Aua. tion ia predicated on natare from the Ka waaaki S.teel The helicopter H~rhtr ·a~r, Palmer it waa ahattle tnu:bd 15,1983 alonathe Glenn HiP· providin1 the proper froat Corp."aChitsandChibaworb provided by Aluka HeUcopo tothePalmeryazdorhauledto way and the Knik Road. conditiona. Since thia ill im· in Japan, with pipe and coat­ ten, Inc. couaialed of 110111e the "Mlle 40" yard. Thia pipe Clearina and ll8clina work pouible to predict, no one ill 1,300tripeuthewm.htofthe handlinl and tranaportation able to aay when the job will be ina inapec:tioJl farniahed by - started - ihenafter AMF taboacope. 50 foot jointa of pipe ljmited evolution waa aJao done by uaina contractor equipment complete. 1~ ~ The firat ahipload (25 milea) the aize pfeacflload to one or· Wea,.. Blotben. , newly arriftd in Anchorap Preaeully the contractor ia ll[t of pipe arrived at the Port of two joint. per ~p. Mach of the pipe req..U. from Seattle on a Foea Aluka worllinaeaatwardfromBeluga .~·· AnchorapinearlySeptember, Ro11Dd tripe varied between wm.hlina to prevent floalin!J Lin• barge. The pipeline COil· aodhaareachedthevicinityol 1983, on the Tohai Shippin1 1 and 5 milea. The entire inthenrampyareaaaoduuler tractorhu-blillheclahesd· the Suaitna River .. There are Co."a -t, Tokyo Rainbow. Anchorage to Bela1a pipe rivenanda-.Aboat8,000 quarten and operalina facil­ aboat 12 milea of "wet" work UulCIIIdina of the pipe to tranaferwaathereaponaibiHty ....-weilhtawererequired ity in Wuilla. mnaiJiinain thiaM!IIDentplu ahuttle tracb for tranafer to of Northern Technical Servi· to pro'licle the enceaaar -· Project I1I8JIIIina levela and another coaple of milu of wet waitina bars- of the Dillina· ceaofAnchorage. tinbllO)'allCJ'. - ... hiPIY -ther work at -tlencl locationa ham Corp."a Fou AJaaka Line A second ahipload of pipa Tbe weilhts wen cut by dependent due to the need to alon1 the Kaik and McKenzie COIIIm8IIC*I immediately fol- waa nceiftd at Anchorap in Laiulmark Conat:raction, Inc. work the - portiona darina Roada. . 1111rina clearance of the .... mid-Septemberandlnn8palted at 11i1ea at Belap and near the winter when a froG layer ill The - work aroaod the by the ahipe .....t, North Star by track to atorap yuda at Palmar.Additioaalweilhtaare available for npporl Aboat md of Kzdk Arm (iulcudha1 Terminal and SteYecion Co., Palmar and "Mlle 40" by blinacUtataaitanearPa1mer 50 pm:entofthe project ill-. the river crouizap) waa com· and ciMiance of the ...... by w.,.. ~Inc. on an u-needed batch bulL JfMpod" -ther-.tilioalo Continued OD Pap 19 • the smaller communities could have access to gas

AIIIIIIIT8111ca...... _.--,.,y_. .,.. a.(...., Dly .... ,....., Alllllllll c..uL Alllllllll cu-t. 1810. 10 123 115 812 1- • 132 210 1,2110 1-,. 3,142 13.223 8.701 28,311 1170 117,441 253.(124 131.CIII2" 311,418 1171 115,702 774,1177 131,107 1.003,857 1- 730,308 2,852.114 1117,201 1.808.412

Serving Alaska & Western United States •••

• Commercial/ Industrial

• General Construction

• Design/Build

• Construction Management

"'·~LANDMARK COMMERCIAL 907/522-175" ..___,CONTRACTORS, INC. 1207 E. 74th • SUITE 201 • ANCHORAGE, AK99502 lUNG: P.O. BOX 10-4340 • ANCHORAGE, AK 99510~340 iI END-UII NATURAL GAl PRICES (U.S. $/1,000 Cubic Feel) TRANS-ALASKA GAS PIPELINE lncluatrlliiSeclor c:-w. 1171 11110 1H1 1ia United. states 1.87 2.52 3.08 3.71 Canada 1.52 1.89 2.30 2.88 Yukon-Pacifiq Corp. has a plan Weat·Garmany 2.88 3.74 3.90 4.82 Japan . 9.02 11.32 11.95 10.81 M-"'kkleCiw . United States 3.19 ·3.92 4.48 5.44 Canada 2.39 2.88 3.34 3.81. WeatGeimany 8.71 7.93 7.87 8.88 Japan 11.45 14.73 18.48 14.11 EJeclrlcltr a-tklli 8eciDr urittilci·States 1.11 2.24 2.84 3.44 Canada 1Al6 NA NA . NA West Germ4ny 2.20 3.02 3.42 3.78 Japan 3.08 4.87 5.87 5.42 The above sliltlstlcs ware compiled by the lnaUtuta of Gas Technology, 3424 South State St, Chicago, Ill. 60618. • LNG for the Esush Colldnued from Pap 2 collectedcloaetothe-wheN Ford and other auto manu· it ia to be 1llllld, ao l:riUiapOria­ fad1lnra have been looking at tion coote are redUoed. Flirth­ Compreooed Natural Gao ermore, the worker prodvciillr (CNG) the twin to LNG. Why the product will be A1ukan LNG ia preferable for vehiclo and the money iaow lOins oat trauaport ia that one can otore ofatate will bereteinedintem- mach more fuel ln. a livm ally. . . volume. Why it ia BOt prefera­ By EARLB AUSMAN, P.E. ble ia the lack of eorvioe eta­ Polareollnl& .AJaab. lllc. tiona hanclliDa it aud the boil ott requirement which coald ca111111 real problemo ifthe veh­ icle ia in· an incloeed opaoe . Excerpts From· . lachuaa- However, the boil off can lie E. M. PRINGLE'S PRESENTATION ued to nm a bot -ter baetar for thelll!lillB coolant ID.IIkiDa Presented By James D. Weeks theYihicleindependelltofplq Kuparuk Operations Manager· Ina, which ia uefal in remote areu. Beprdleoeofthia LNG ARCO Alaska, Inc. in"the etatel hu a £u-. Jfoil for the j)riOII rile it coald very well be that LNG will be the fuel of Alaska Support Industry A/1/iance choice for many .Americana. March 2, 1985 In AJaoka, the economicllitll­ ation ia · dlfterent and LNG allowa u a chanoe to ue oar • At this point 1 want to directly compare Prudhoe and West Sak, as they represent the opposite ends OWil fueJ withont ~&, of the economic spectrum. Energy effort • We discussed that their size and oil in place are huge and similar. In fact, West Sak may be the largest accumulation of oil in ihe United States, even larger than Pnidhoe Bay. updates the .... previous work • The estimated cost of developing West Sakis expected to be quite similar to Pnidhoe--in the 10-15 billion dollar range. The current ~Aiaaka'aEner­ n Reoonroeo" Alalro.loumal • But there the similarity ends. of eo- Supploment ia hued upon thefive-volame re­ • One of the greatest differences is the expectation of economic return, expressed most vividly by the porto co-authored by Dr. Gene Rlitlodp wban he wu project well flow rates. · leader of the Aluka Rolional Enezv...... _PianninaPro­ • If we can unlock the technology to do so, West Sak could recover in the range of about one quarter ject. initiated in the Office of as much oil as Prudhoe, due to less favorable reservoir characteristics. the Govemor in 1976. ~April, 1984,npplement • As a bottomline, this means West Sak investment per recoverable barrel would be several times more ~Aiuka'a..-Jau --. operationa (iDclad­ than that of Prudhoe and the production would be recovered over a much longer span of time. lq LNG) and related iaa-. In addition to the ARERPP • So we are looking at a large reservoir similar to Prudhoe in size, with similar costs to Develop--but project team lllellliben - WU­ jar less expected return. IIamlofcCoakeJ,a.z;..Qam­ lin, M. Rabm. and fa)] time • We can't do a lot about the reservoir characteristics that make the oil difficult to produce, but we are teammemberD.Lule-allam­ currently conducting research to develop new technology to enhance the ultimate oil recovery. ber of other paoplo 8lliated in the 1984 update Prudhoe~-jor • CUrle~ L. Lopdon, etate • First, the number of wells required to develop West Sak will be over five times as many as Deputmoat ofRavmae; the same area! That is a lot of wells by any standard.. . • Daniel Diekcruft, EN­ STAR Natural Gao Corp_; • In order to improve/he technology, our initial step in the West Sak field has been to conduct an ex- eS.....,Andrewe,ARCO AJ­ perimental pilot: .. ' ' · . · ukalllc.; • c.v. Cbaltertoa, Alaaka • Already, in this small experiment, we have invested about $85 million in 13 wells and a plant to inject 0111: Gao CoDMnation Com­ JDiaUD; hot water. And, we are looking at even further expansions to try to get the answers we need. The results •W.F.Strue, w• .,.. Broth­ are encouraging in that some of the questions of how to produce a thick, molasses-like, low rate oil ere 'l'rlldliDc are being answered. We have not, however, found a completely satisfactory way of dealing with the •Jimmy no,te, w• .,.. Bra­ then '1'rllckblc and, unfavorable characteristics of the West Sak formation. By this, I mean the reservoir itself is an. uncon­ • Fnd Fneman, Depan. so_lidated, mushy san~ w~ich tries to flow in~o the wellbo~e when the we( Is are produced a! substantial -ofNataral..__ 01! rates. ,.We are contf'numg to expenment with screens, lmers, and the ltke, as well as vanous comple­ ~~-··~ Alao, thanka to CODirilnltina aathon: LeD McLean, Pecific tion technique}. . · Alaaka LNG; Edward J. Dan­ iell and Philip J. Andereon, • This expensive pilotprogram demonstrates industry'S commitmeilt to the project. . What. industry needs both with the lnatitate of Gao are incentives to continue .to-develop marginal fields like West Sak, not ones.ihat may eause marginal Technolon. fields to remain undeveloped: The way to increase petroleum revenue jar the state is. to encourage these The ARERPP vol11111811 aoon became DDiverllity referenoe newfields to be developed as rapidly as possible. In addition to state revenues, this new development tntboob with thefiret coane produces more contractor support and more jobs. · in "Aluka'o Energy Reaoar­ w' teqht by Dr. Ratledp at Aluka Methodiat Univerllity (IIIIW Aluka Pacific Uni,.... lity~inum. BLACKLEDGE William, H. Blaekledse, a Trans ~Iaska Gas System.(TAGS) .u-tor ofYukoD·Pacltic, hae EGAN ~ted GaJf Oil '1'radius William A. EPD. Co. iii an eDOIItive eapaeity a .u-tor for the p&H 25 yean. ofYakOD·Paciflc,illtheadmiD· Duriugtbattime,BJackledp ilotzator of the Electri· Alaab worlred cloeely with ap~ora. cal Trut FaDda. He ill a former Gowmor of tiOD.aud prodactionoperatione· A1uJra, u the etate'a ill the United Statee; Veneza. ier9iDc e1a, Bolivia;. parte tint cblaf eucative•. He. wu Ecuador, of electacl to the U.S. SeDate by Africa aud the Middle Eu&. the A1u1ra Territoryandartba T- P1aD aud wu a LOUNSBURY leader ill the flsht for A1uJra Lonm H. Lcnuuobary, a clir­ Stat.haod.. -ofYukoD·Paeiflc, 18.,.... ldent of H. V. Loaaabary aud LOUGBNBY A.oc., an mtematicmal eq;. Edwud D. LoqlmeJ, a .-riDs aud ~ llrm dlractor of YulroD-Puific..hae hued ill Allchorap. x..nm. )llimar7 napouibllty far. the bury ill .a diretol' of ENSTAR Na&aal Co. worlcl'lricle ail aud p d~tea Gu of the D. K.Lad,q illtiiNata. '-lfmqillmldafall­ B1Tl'NEB witb GaJf Oil Companiea, ID­ WUliaia H. BlttMr, a cJlnc. clad!DI at!Dta .. the pnaldmt tor of YulroD,Paeiflc, ill a pan. of GalfCanada (formaly Brit­ ner ill the Jaw firm Birch, Bor­ iloh Alaeiican), aud eucutive ton, Bittner, Peatinser and vice-pnaldataudadlrectorof Alldereoa. with . offices In GaJf Oil Cacp. A1u1ra aud WaabiDctoD. D.C •. Alaska gas reserves pegged at 32 ·ycf--- ToW AlulwliU _,. Lawts River (SI) 22 Tb...... iDciDded iD uoflan.1,19Mareabooat32 McArthur Rl- 80 2hepuate-ulatiau.Tbe trillion .wulud calric feeL McArthur Rl- (AG) 28 1arpat aecamulatiOD 18 iD the PTIUTUOI'GAS Middle Shoal Ground (AG.} ·11 Pradhoe Sa)' Field. Pradhoe RISIERVU IN ALAI«A Nicolai Ctllek (SI) . . 3 Sa)' Oil Pool, -which _,.,te Nottll Cook Inlet 851 ·for almo.t 89 pucimt of tba ...... _(HCI') North Fork (SIJ . 12 toteL ...... ,,, .... Prudhcie Bay (AGt · 21.850 Over 800 BCP of IU - lleewrCtllek '230 1 Eaet Barrow 1 --'aced -·-- 1tith the oil Bea-Ctllek(AG) 1 South Barrow 10 ..~ -- Beluga River 778 S!8fllng · 23 flom Pradhoe Sa)' Field Dv- BrichHIII (SI) 11 Swanaon Ri- (AG) 259 0..1983. Ofthi8 volume .... Falla Crwk (SI) 13 Trading Bay 30 almoet'lliOBCF-niDjected Granite Point (AS) 28 Trading Bay (AG) 3 iDto the Pa cap. Tba other 150 1v11n River (SI) 28 Welt Foreland (SI) 211 BCP - either uad iD the K~ 845 Waat Fork 8 fte1d • fu1 or ao1d. · Kuparuk River (AG) 185 TOTAL a,110 Gun-...m&lrePradhoe

. ALAsKA ENVIRONMENTAL CONTROL SERVICES, .INC.

W-Till RuovRCU ENqiNEoiNq 6 MMIAqEMENT T~ehNic:Al WlliriNq, EdiriNq, * * PublishiNq ENviRONMENTAl Huhh 6 ENqiN&ai-.q * ENViaONMENTAliiMpACT * Soils~ * AisEuMun' * NAYUMl Ra0u.ca INWNTOily AMI Srvdia WnW.ds S'I'Udia ~ * I Futillilby,S7Udia * * CoASTAl ZONE SnHia "' ~ I 1200 West 33rd Avenue, Suite 8 I Anchorage, Alaska 99503 (907) 561-5040 mr '~r Pacific Alaska LNG is· poised to transport AK gas to outside markets PacificAlukaLNGCo.iaa have asked the California partaer in a project to 1ather Public Utilities Commiaaion to na&aralpa flom production autainitaapprovaloftheLNG fielda in the Cook Inlet area of nceiviDI terminal lit at Little AJuka.liqaefy it at a facility Cojo Bay OD the Califomia a& Nikiaki near Kenai on the cciaet while· allowin1 the pro-·· inlet, tranaporl the LNG by ject to remain alive bot inac­ Uiptoancei!infterminalat ·ave.AcleciaionflomtheCPUC LiUie Colo Bay near Point iaexpectedbefcneJIIDltofthia Conception in Soathem Cali, year. • (omja, and ftluil:v the liqaid · LNG remaine a pa nppl]t fwdiatn"bolion throalhoat the option for both aponoorina a&ate. companies for meatiq fatare Ileaalliqpanpplieawoald demands in the 1!190L The be ahuacl eqaally by Soathem ccimpany plana to keep all ita Califomia Gas Co. and Pacific permits in Aluka and CaJi. Gaa and Electric Co. The pro- fomia wortina by_ J:elleWina tlleloww •ltlldl ....ocl comer of tile aboft photo Ia·•~ tMIIHintof •- ject oponaora an PG.s.E and any the& milht have ezpira­ ,...... would._ oniMICenlll...... _ . PacificLilhliDICorp., thelat- lion dataa. Jut -tly, a espiftth;.year. lion to bepD on thi8 phaea ownaorcontmJ.throaPJoaa- tar beinl the puentcompany nm-al was nqaeatad flom l'lla. I of the projeCt woald woald be 1987. Thi8 phu. tarm ~ ofSoathemCalifomiaGaaCo. the stela of Aluka for the air liquefy 200 MMcfcl. The MOD· Woaldlllllid one Dip. When bail&,· the plu& will The aponaorinc companiaa qaaJi&t permit, which ia dae to eet poMble. data for conatrac- Phue n woald doable the inclade ,.. pre&rae&men& · project vcilame to 400 MMcfcl. eqaipinen&for~,.and It ia echedaled for ebollt 01111 two nfriaeradon "trabae'-lcw year after l'lla. I or. when liqaefyincthepe,OIIIIfar.cb additional au npply can be 200 MMcfd phaea of the pn­ developed. J!'hue U woald ject. The LNG will be beld iD . l8llllire an edclitionalwp. .. two&&O,ooo.banwl,cloable-wal- Gu eopply contracta ·..... led etae1, IDealatad lanka llldll lianad iD 1974 with Atlantic loaded llboud Uipe. Richfielcl Co., Chevron U.s.A.. A 2,200-foot tleetle ud pier Inc., Cities Service Co., PacUic will mend from the pluteita LilhliDIGaaDevelopmen&Co., • intotheCooklnleLAcryaplic and SiJDalko Prodacli.on Co. line ·a a V.por l8&anl line An option for additional rru will be bailt. for l:raDefer of IaheN with Cook Inlet Bellon. LNGflom thelltolqetankato Inc.~ot1.61:rilliooare theUipe. • neadadtofallyeopportthefinlt . Aboat 300 miles of aubon phaeaofthe-project. and o&hole Jli..a- will be . The liqaefaction plat will neadad to briDa na&anll pa . · OCCIIJI7ali8-acruitaatNikiaki: from the Cook Inlet ...... In the North Kenai iDd~ prodaction fieJde to the Nlll1b -which .the company DOW

• Pacific Alaska LNG Japan gets LNG from Abu ~Dhabi via a joint venture On May 14, 1977, the flnlt incladfDI eqaipmen&, pi.U. wpload of LNG from the Du. etractaralelectrical,udiuaJ. Ke';:~":'.:;";!:::DIplant. Cone&naction of thi8 ~4... ~rA~ leland liqaefaction plant off. ation work, WBI8JII""'-blecl portion of the project will be ~~ ~ ahcneflomAbuDhabi,arrived andmovedtotheialandaeinl coorclinatad by the project's at Tokyo Electric Power Co., a conventional barce and panmteompaniaa. (J ~.. __ .. Ltds.'a terminal at Sodepara hydraalic lift dolliea for mOfto C&pitalnqairemanlaforthe ..-- SUSITNA PLATS aboard the Hilli. mentofallmodaleaandbeava Althoqhclifticultiea-.riththe loada. The peak pencmpilww :::::,~:~~!:.:: M·-~~ now-famoae "bolte in the loadinl for conlnction wu alloat $1.5 billion for an on- • "' 'P' . . .'8"1' .anloadiftl line" delayed off· 4,500 repneenliq37 natioaal- dcne and offehore pipeline .:'., ... . -<. ,n. loadinaoftheCUIIO,thearrival itiea. · e:ratem, a pia. D& incladintr or r «.- @? oftheintialCUIIO,&e-Uua Plant -ap co__. etorap and marine loadiftl . 'v . --...... , NCODdCUIIOinAQIIUitmarked with commiuionlDI of the facllitieaandaeimllar amoant. -·'"" · TVONO,I< '\" theinitialionofanotherhe.- alllli1Jar:r.,...... ~ID18'18. load LNG eoppl:r project. . Gas was inlrud-.1 ID&a tniD lcwtheCelifomiaIn California, the terminaL tarmiDal ~ ,..._...., --~+· ~ • The Abu Dhabi Gas Liqae- 1 on Aq. 21, 1978, and the wasoriPWJyplannedforLoe , 00 . · . faction Co., formed to prodace aecondofthetwoniutuaed AnpJ. ~· bat poli~ "' . --- andmarkettheLNG,aelectad overtheAboDhabiGaaLiqae­ entared the pietare. The C&li· ,_ .. Bechtal,Inc.,iDajointventare faction Co. on N-ber 21, fomia lecialatare pueed The - with. Chiyoda Cbemicel En- 1976, by the contnctaw. . Na&anll Tenai- . l.iqaefied Gas ~andConetraclionCo. Ae of Jau 30., 1979, 48 Da1Aetof1977. • .. \ .. s \J ... ,.. to coDHnlct the plant. British ..._hadbeenoWiwnod&.. Thla act nqaind the caJi. . I' e...... Petrolftm, a partaer in the Du leland to the Soclepara fAinliaPublic UtilitieeCoiiiJDia. _.e.,. "'' ~ Aba Dhabi. Gas Liqaefactlon term1DaL lion (CPUC) to make a deci· 1 lion on a remote, DDBhcne ails .. · .. Co., ..... ealectad .. the .... ,...... -- ...- .... l!inMrtoThe liqaefaction JIIIUUIIie the procea.-.el- project.. SMART CHART ~ttN'G=~tyin! - ectad wastheAirProdactaand the Celifomia cout. Chemicala, Inc.,malti-compon­ After 10-:veaft of heariDp, ~.• ..-c.r ent refri1erant (MCR) cycle the project wu finally ap­ with propane prec:ooliq. The proved. Bat prior to the ian· two niDe proceae a total of ance of the 4nal permit, the 4liO million SCF/da:r. . two aponllorina companiee . Conatnction.. of the plu&, petitioned to pot the project on . i ' . , whidl beaan in September bolcl. The nq- was to both ipatad market? 1'wo tbinp: ) retirement in .Ddd-1985. After 1,973, wu complicatad by the the Celifomia Public Utilities conaervation'cat.,.,...... plion that, the company" plane to flict that it was locatad on an COauniuion and the Federal bya&leutone-third;ud2)the keepa~iDAlukaa&a iaJand with limita!f _.. and Ileplator)' Commie- denaalation !>f pa eaddenb redaced eCale; anti) the project Buru IDiniaW port --100 miles ,:11,1 lioiL prodaced a eafticient amo!Uit . ia reactivecl. · flom the mainJaDcl. Ae aneolt ;,;,.,,,·'''' The major IU80D for the of pa for the market. Theee Ittakeathiapolitionoecaue of the limitad 8pace available nqaeatacldelayiathe&at- eappliea_ellould 1aat throqh itfo....,..alOJitr-tarmaeeocia­ and the ~ clilferential for ent ud into the fcneeeaable the 1880e. tion with the stela ofAluka­ work on Du leland, It wae ''The next time you're fatare(throqh the 1980e), the Pacific Alaeka LNG will not ~ for the pa iD Cook decldad to ....-ble. 1111&1'­ neecl for the LNGID California continue to IIIB1f an ofllce in In1e&, tin a1eo for na&anll pa ehal matariale, and fabricate ..... 'HoW'I ia Jackiq. · Ancho- antil the -t-yet to be ~ iD mcne ...... On the mainJaDcl. ~1·.~­ Whathappmadtotheantic- IIUIJI&Illl'LenMcLou·~ remotaareaeinanearAluka.· 'CH)ULENGINS,' nat, Moclalariaed plat aactiona, 'TERMINAL'." Reviewing the Al~ska-J·apan LNG deal ctianimportpric:ea,~tbat tiena. tbat the -table pri· in the future Canada may ces will ai.o be determined by ch001e a. different mecha.niam the altemativee within the tbat the p.....,t one to eetab­ market. For 8l181Dple, indica· lieh ita border price. In tbat tioiUI are that SNAM of Italy cue, automatic linlrage would will offer about $4.50/million be inappropriate. Btu for g88 to be imported via EUROPE theTrana-Med pipline and bu ID Emope, there are indica· otated tbat 188 prices at Btu parity with oil would render the g88 UIUialable in tba Ital­ ian market. lntherestofW..temEarope, negotiatiOn.oanddeterminelion of prices for imported g88 are atthepointwherethereiacon· eem about 188 loaiq ite .,.. peeled marketahare ofenergy nppliu to the altamativee of nuclear energy, c:oal and oil by the and of this centuy. A. otated by Dr. Bergman of Rnhrlaa, "Even in an ara of ecueeenergy,gaaianotiniso­ lation. Gas offezed at a price which does not .reflect ite market value bu no place in tbat market." EXPORTERS Altamatively, from the es· por:tan' side, there ia a need to providelldequatecompenution for the risk incurred in devel· oping an LNG aport project due to ite capital intensity. However, over the put few years, energy prices have in· creued tothepointwherenew alternative• are becomina attractive. Coneervation has toaomeatentnduceddemand, and this, in tum, bu led to a IIOftanin8 in oil prices. ·: In ·aellllral, tba dioparity between altamltive meqy pdce~ ia clecreulnlr thJoqh­ out the , wadd, and this in· cnueB the diftlculty of DIIIO­ fiafiona. Marathon/Phillips join on LNG project

&Umr'a Ntlllc tlw (ollt>ulilv with the firBt CBrJrO of LNG which contaillll about 99 per­ pumped to the LNG storage Thoe turbines produce a total inforrrullioft ;. uarptlitl (rom aboard the Polar Alaeka leav· :ent methane, consieta of pre, tanka. The vapor generated in of84,600brakehoroepower. The "A" Overvkw o( LNG ap.,... iq Alaeka on·Oct. 26, 1969, treatilig the g88 stream by theflaohiagetepiacomj>reoeed design capacity of the plant tioM," by Philip ./. Allderwoft Jliacluu1lilllrofthecarJrOWU removing· water and ciarbon to200 psig and utilized 88 plant was the equivalent of 172-6 ,.,.., EdlllfJnl ,J,l1fJ,.;.t. (or tM completed on November 11, dio:lide; Thegu etream ia then fuel. Each refrigeration loop in million SCF of gu per stream lnaeitute of 0... TeclaMIDyg 1969, at NOJriahi, From tbat · in a cascade refrigara· this Phillipsoptomizedcaacade day delivezed aboard ship. IJrad pruefttlid "' the N1Jtaral thJoqh J~e. 30. 1979, utiliziDII Jm>p&ne, refrigeration cycle contains two • Start-up of the liquefaction o...s,,.,;..... w.oa.N;s.· train W88 preceded by start-up ria. TIN .,.,;,. PfiiMT. mn.w, oftheauxiliarysyetemeinclud· tlw~o(IJae..IDtMlLNG ing the boilere and otaom •Y• ptOjete~prit:el,(lldl­ tem, water cin:ulation pumps itia ..,.., co,.,.,....,. ap,,.. and cooling tower, fuelayotem, tioMO(uiaan.,._,_,pro­ air oyetem, and the wuatewater jcU ..... rerMwerl ift~ . treatment and disposal facili· Tllil oetio,.··daiJa un'rl& tlw · · ties. The g88 turbine driveo for Altulto../tJP~~ALNGcoMtltifiDIL thecompreoaorowerechecked, In Mudl1967 Philli P-. iolled, and rechecked beforo !Oleum CO. and jw.~ Oil the load couplings were con· Co. signed a 16-jearaal. COD­ nected. tractwithTokyoGaaCo~Ltd.. After purging the liquefac­ and Tokyo ElectricPowwCo., tion train, it was cooled down Inc., for deli_,. of 50.67 lril·: and a omall volume of LNG lion Btu per year of lu to W88 produced and fiared. since Japui betlimliDlr in 1969. the firet otorage tank had yot Phillips wu to aappl)o '70 tl. be completed. After compJe. percent of·l88 from ite North lion of the firot tank, it W88 Cook Inlet Field and .operate . pursed and then cooled by the liquefaction plant aild spraying LNG from the lique­ loadinir facility. Marathon Oil faction train into the top of the Co. wutoauppl130perceatof· tank. the.gu for Jiqu8taciimi from The three otorage tanke and ite Jtenai Gas Field~ OJIIII". · loading linea were commiasi· ate the. LNG tankera. oned over &·period of about 60 Tokyo Electric Poww Co., daya prior to the arrival of the Inc..-to ncen. 75 petCellt .,Polar Al88ka.. During this of importlitl LNG for aa aa period, planned production fuel at ite(fOO.IR,' ~- ruiUI were made, which estab­ ,,., · YokohamaJ:DAm~UU power Bta· lished tbat the plant could meet tionfortheproductionofl!!iQa& the deeign rate with oome 41 billion kWhr of electricity. manPn of esceu capacity. Tokyo G88 CO., Ltd.; wu 'to Durina the initial plant operate tl!e Nelliahi Wo~ka. operations, two unplanned Terminal in the port of Yoko­ .Vente occurred tbat ..,.ulted hama, and- ite 30 ~& - c:8rpieii ha~ beBD loaded compreaaoro driven by oepar­ in the 8\fivauon of the plant'a ahareofthepafordialribafion. -' the l!llllllivalBDt ofaboat 480 ate g88 torbinee operating in emerJrency ohutdown oyatem. . CoiUitractionofJirojectfadl­ billion CF ofgu th!oqh 1981. parallel. The aye tem performed a a iti•-carried out from the Simply .tated, ·the.~ The flaoh vapor compreoaor designed. iatterpartol1967throach1969 for liqaefyiDJr the natural aM!. ia alao driven by a 888 turbine. Continued on Paae 9 I ·~.:~ :' ••LNG from·Aiaska to the· I Orj.nt begins h1 Oci.1969 i

...

"I would like to talk about Endicott in what I feel is its proper perspec­ tive. That is; Endicott as a marginal field which can be developed only if the economic climate will allow us, as producers, to develop it profit­ ably. And I repeat, profitably. Although some in Alaska view the oil industry primarily as a revenue generator for the State, I can assure you that the shareholders of the Standard Oil Company, many of whom are Alaskans, feel that profits are also ofgreat interest. I feel it is especially important that we, as Alaskans, understand the econom­ ics of bringing marginal fields into production. Alaska has a great deal ofpotential for new field discovery and development. But most, if not all, of these future finds are likely to be marginal."

G. N. Nelson, April, 1985 Remarks before the Resource Development Council _,': Taking a look at the future of gas

The foilowinl information. Gas pri""" not llllbjed to ANGTS or TAGs. impU. a miuionfuilityia bullt. Atthat tha FY 19841evel of 4781!cfld on natural iiU revenue 'fore. contziu:tual ._te were poMible net back price at the time the- average 1J1ice at the to the .FY 2000 1eve1 of .640 cuta ia taken frOm the .State eeoalated one penny per quar­ wellhead of $0.00/Mcf dariq wellhead fa11a to. $1.25/Mcf, Bcflcl. . Petmleam RaftDu Diwaon's ter ill accordaJu:e with the early yean ofoperation ia that crowinl to $6.99/Mcf b:v FY . Theae ficmeo &Ill haled on a Dac:ember 1983 Quarterly Be- Federal Power ComnriMion'a price acenarioa &Ill entered 20()9. completedPacificAlukaLNG port. . Opinion 770. . which vary frOm $0.00/Mcf to CookiDlet fuility ...me 200,000 Mcfld The aeverance laJt floor of inflationadjaated priceo haled Gaa Producdoa b:v FY 11187. Aqaet 1983 pro­ North Slope ·$.064/Mcf wae. aaanmed til on today'a prices. daction averaged .510 Bcflcl. Gaa Producdoa remain conatent.. Tbe 8daa1 The averap pa price ia Gae prodaction ill Cook inlet Note: eae article on CDrii!Dt The ncently re1eued report weighted averace price. for !IZp8Ct8d toillcll!aeeattherate ia anticipated to illcNaee over atetaa of Pacific Alaelra LNG on the fauibility of a - Aacut 198Jiwaa UII/Mcf. . of inflation until a pa- the 17 yearfimlcaetperioilfrlim by JAn McLean. AlukaGaeSyatem(TAGS)to . North Slope . mtmoPrwlhoe Bay pa to tide water· for liquefaction and Gaa~ Uport ..... tbia a:vatem Carrently, North Slope_ gaa coald be bililt IIOODBr;at lower ia l!lbd llllllerraleaeatebliahed coat,andwithmuch-terill· by tha Natural Gae Poliey·Act &tete beoefit lban theof6cially of 1978, which allow tha price For Ufe.lnsurance, ._ aenclionedAlaakaNatnral Gae toillc:leaae at the rate ofiJdla.. Tramomiuion Syatem (AN'G­ tion. The September 1983 aa1ee check with State Farm~ TS). price of Prudhoe Bay natural UnfortonatelyTAGSsharea caa averqed $1.86/Mcf. many of the aame problema Flltare price will depend ill •Permanent Life. •Retirement, the&ANGTS does with respect larp ...... -ine on the tinrinc •Term Life. pension and to financing and markatinc and coat of a au triiDaiDiAion and carries the adclitional ayatem lndlt to - either group plans. burden of high polilieal coate illternatioual marble, ae ill llince ANGTS already haa the caae of the Trans A1uka official approval. Gae 8yatem (TAGS), or lowet: For tbeae· reaaona, oar car­ 48 market&, ae-ill-the caae of rent projectiona aaeameonly a theAlukaNatural GaeTiana­ 40 perem&t c:hanee that either nriaeion Syatem (ANGTS). ayatem will be bullt ill tha nezt Given the carrent and pro­ tenyean. . jected low pri• for oil the Cook IDlet ~ Pricee appannt-aapplyofJ!ION eallil:v acceuible -- of Gaa 'pri... were adjuated nataralgae; and the high coat .acc:orclinc to contract -..!a­ ofllither.tran-iMion ayatem, tion agreement& and were it ia aaaumed that there ia a 40 inflated· at an annual rate percent c:hanee that a pipel!De. approximating the rate of will be bailt and ill operation inflation after the termination b:v FY 19113. of contracte. The high coat of eithe

• Changes suggested William K. Evans, Agent

to expand LNG plant 80S Gambell Off: (907) 278-2424 Anchorqe, Alalia 91501 Rea: (907) 344-9507 Contblaed from Pap9 -., and llle aa&bon ...,ted_ valu of the natural au would llince a D1l1Dber of acceptell1e include adclition ofwaete heat e:vn.n>• e:odat, they iroald recovery faciliti• ill the lique­ obtain propoaa1o frOm ahip­ faction plant. Other chanc­ ~ on ahipe ,rith contain· Like a good l!elghbtx. ..._ted woaldillcludelarpr ment oyatemo of their choice, lizecompreNOnand turbinea, bat oabl~. to the oWIUII"e Stare Farm is thf!re. · ae tbeae have 11ince become approval inataadofoielectillc a availebleandareecononrimUy a:vatem and obteilllnc ~­ Sl&tl ..... advantapoaa. (Thia ahift to QoDI limited to ahipe uill8' larpr trailllizee ae the opti· that.,-. mamlizeiaacontinnillctnnd.) Other oaueated _ch&npe A . The atorqe te.nlto conatzuct. illcludld thoae nolated to the INSUI.ANCI ed for the project were 225,000 position of Clft7ill8' Uck ·liq­ • '.:· -. bbl capacity. Larpr capacity uid, oliip'eCOJ!.ftDtioualequip­ ment. the qamion of reliqae­ mete! storage tanka ap to ~~ 841,000 bbl capacity are DOW . faction ofahip'• carco boil.off, and conaidenf;icng Nlated to - bailt. They noted that they woald aelect larpr tanka and the environment ill which the 1 , " .r l'r, t1u< nnqlon ,.,,, woald optfor aOQendedcleck ahip operateo. inaalation a:vatem ill contraa to a doable-roof aheU if lite conclitiona were aaiteble. The:valeowoaldillcreUethe ratio of plant LNG atorqe to llincle ahip capacity frOm ite approximately 1.5:1 valu to a value of 1.75:1 or even 2.0:1. 1 Alth01l8'h they &tete that they ALTERNATIVE ENERGY ENGINEERS have experienced no failare to ~ met comnri-ta, lhity feel 'lhat the aiatiq-ratio ia un· comfortably low, eepecially when ohipe get oat of normal polarconsult alaska, inc. arrival oeqaence. ; Other chanc- ill the plant woald be iiade 111lilted to the !=NGtNEERS • ARCHITECTS • ENERGY \,·1NSULTANTS ojl IIIIDOva1 a:vatem. the fall ~ pacompreo8or,andillcll!aeed specializing In energy conservation systems llttention to noiae control At the 1oadillc ~ti... quick· "' COilll8CtiD8' ffin1ea woald be """' ill place of conftDtiouaJ liDlted f1anc- . 2735 EAST.TUDOR ROAD • SUITE 201 • ANCHORAGE, ALASKA 99507 _.For the LNG carrion, ahip PHONE (907) 581·1933 • TELEX 26708 PCA AHG - Hlection mi1ht be revised iliaofar .. speed and veoael ~ lize conlliderationo &Ill con· etrned.Cbangeein theOeAreae iii! '~ ieoald..ealtfrlimc:lumpathat haveoccarreclill ohipCOIIftrac., tioncoatabdchang.ill bunbr Jlriceo. .,JiepJdinccon~ ~~------__;~ J Introduction offers ~r------~----, 1900 an examination of the 1800 1700 economics of LNG "'e ~ 1600

~ 1500 i I~ 1500

1100

~~----~~~-==--~oa=~~~~--~~~~~--~ea~~~--~~~~==~--~ - StiP SIZE, rt/ tiOD, thaeotimatad total .....dad lion tbetotalllllDaaloperalbic- plant colt for a 1 billion CF --for a 1 bi11ioD CF/dar daybaoHoad liqaafactionfac. liqaafactiOD facility _.. be iljty ia $1,028.8 million (1981 about U4 millioD. a-. U.S. dollario). the w.-t aiDg)e 8llllaal OJIII" Escllllling capital cbargeo, atiDI' coat for &DJ' capital operatiq-fora bue- Coatbuaed-...... a

LNG COSTS ~LNG Import­ iecta are hiah1Y capital inten- · aive. That ia; llllDaal capital cJuq. for depNCiation uul __lft'ricintrtertlumnormaloperatiq of debt are mach Natural Gas uul maintmwu:e ...... The capital uul operatiq -...... wedwith!Ja..loed LNGprojecta will becliacUued below in two oec:ticmc land· bued facilltiea-IIIUI. obip­ piq- LAND-BASED FACILlTIES COSTS ... The total capital colt or inv.. -t for both liqaefac. lion(~) llllllvaporization (import) facillti.. ia a fanction of clirect coota that include equipment aJUl COnetractiOD coato; iDdirect - that .in· clade fni&ht. teseo, and '-; contiDcmcYcooto;uulOWDIIl"o OCT-tm cbarpthatincladeolandcooto, -t-uul inter- _...._....- .. .._... __ - Oil coDOtraction flmde. ______.. TYPicaJJy, iDdirect- for !Ja..load liqaefactiODfacilltiM can be Mtimatad at about 42 percent of ~ - For ---~ importterminaloin~­ areaoaally aboat33pen:entof --.-----....,_ .. clinct coot. .. .,___. AalODa' the ..a...... for the _...... -­_,.., __ cti«eNDcein the in~­ _....- .. are that import terminalo are _.___ ...... _ aoaally COilltraeted in an in· ..,,. __ daotrializedCODDtzyuuifreiPt ___ cbarpo are not·u -.;,., -.. - for import facilltieo. ----- ADd obvioaoly, the liqaefac. lion facilia involve more oophioticated and complex teclmolotPea than do vapori· zation fadlitieo.. Conlinpncy te.. or an- for da­ pectad-areMtimatad at about 16 pe1C81ltofthe baa plantcoatforbotbliqaefactiOD uul vaporization fadlitieo. The baa plant coat ia the llalliofclinctuulinclinct- .. Owner'o c:harleo are very aite­ opecificuulC&DDOtbeeotimat­ ed by a rule ofthamb for land· bued facilltieo. However, tho oam of~ -;.inclinct-. uul COII- -tiDa'eacieo Pl'"ideoaneotimate of the total erected plant coot. Detarmination of owner'• cbarP -aid JIIOvide the total plant inveotment. ~FuUitlee Since inclinct-uul COD- • Cost play major role in siting LNG facilities

For Energy Solutions... Call GDbert/Commonwealth Not only .solutions, but tcichnological.arw:l engineering support to aid you in implementing new or alternative PDWer gimerating systems. Gilbert/COmmonwealth has been solving erierml problems for utilities and industry for ouer seventy-five years. · Our staff of profesiionaJ engineers in Seattle and Anchorage prouides a wide range of design and sup­ port services fol: both large and smaO energy related prOjects. Our range of power engineering expertise covers: •. Generation planning !I Feasibility studies • rmancial planning • Complete power desigJ) services • Construction management ' • Startup and operatioris . • QA evaluations Whatever your need, Gilbert/Commonwealth's staff of power ensineering specialists is here to help you. Give us a call: Seattle Operations Center Alaska Operations 11400 S.E. 6th Street 3601 "C" Street Bellevue, WA 98004 Anchorage, AK 99583 (206) 454-0065 (907) 562-0625

--/Com1110nwaltll ,; I

COMPETITION - ANOTHER ALASKA RESOURCE Algeria LNG project was the first

Sbu:ellw(imLNGbGMIINul' NCeDtly JeDeCOfiated it. 1U fo beliD liD ft)ierimeatel iD· project ,.,_,. Algeria Gild npply coatract with AJpria, ...tigat:ioaofLNG. . flu• U11ifetl Ki11gtlom 1111tl esteaclin« cleliveriu to a per­ Coaatoc:klatemat:imWMttb­ Fran<:.c:ameoiHfnlamin1964, iod of25 yean...... withtheBritiahGuCoaa· az moN projecg MINI joiMtl The llipiDg of CODtrllct. to cil, formed Jmtiah Methaae Uw OJMNfiolllll 1m a of l4te "implemeat thie bue-load np- Ltd. CoutOck moved a 7 mil· 1981. ply project - the culmina· lion CF/da:r berp.moamed Jiq­ To"'- projecg one mAY tioaofaeady6yeenofdevel· aefact:ioa plaat to Lake Cha· adll tlclium. fo SPAin Gild fo opiBeat. The prosram IIepa rlee, LA tollqaef:rluforover­ Uw U.S.(romopei'GtiDMl(Gt:il. iD 1967whea the Britiah Gov· -abipmeat. ilia in ..u.r.n... The foflll uol- emmeat app!Ovecl a plaa for Two yeara later, iD .Jaauary ,._ of .... in. il&femlltiolllll the North Thamee Gu Boud 1969, tb,e very lim abipload of ,..,.praental by,...pro­ i«U if!LBll billio11 CF/tl4y. r.. ,. Hefioll, we will ,.. uial 1/w.tluigll, conefructiclll GlldtJIMNfiolllllp'-uo(etU:It. . proiet:f. empluuizi,.. the liq,. I (tldioll Gild •lt.ipping. Anew, ~eria- UDited . ! Kiqdom aDd FraMe The fimiatematioaal b....­ 1 load LNG project; had it. iD· ceptioa iD 1961whea the Brit­ illh Gcm!mmeat approved a plaaforllqaefyiagaal!lnlpa at Arulw, Al1eria a:ad abip­ piDI it iD two taDkera to Caa· vey Iala:ad, Ea,laad. A coatract betweea the Brit­ illh Gu Council a:ad Coach latemat:ioaal Methaae Ltd., callecl for delivery of 100 mil· Uoa CF/day eqaivaleat LNG to Brifaia over a period of 16 The IU beiDg dellvencl to Caavey Ielaad-ntrUified -aadfediafoEagliahpamaiaa. Thetwot.uken ...... theMeth· -.-~aad~Pria- Eadyia 1962, Gaz de Frllllce lipedforthenc:eiptof50miJ. Uoa CF/day of LNG over 16 yeen at it. nc:eiviq tenaiaal at lA Havre. Gaz de Frllllce

Excerpts From Senator Murkowski,s Support Industry Allianc_e Speech

I • The U.S. West Coast can only absorb about half of our production. The other half must move thousands of extra miles along a ridiculous route en route to Gulf Coast refineries.

• We are making the Panamanians rich at our expense. It may interest you to know that roughly half of Alaska's crude moves· through an eighty mile pipeline across Panama. That pipeline tariff alone adds about $120 million per year to. the cost of transportin~ Alaska crude to market.

• It's interesting to note that the Panamanians make more money from that pipeline than they do from the passage of U.S. commerce through the Panama Canal.

• Add to those costs the costs of shipping Alaska crude thousands of extra miles ~ to the Gulf Coast, and you discover that the export ban costs us an extra $3 per barrel in transportation costs. That's billions over the long term.

• We must continue our push to allow the export of Alaska crude oil and nufi1ure new trade opportunities for Alaska resources. • Algerian LNG effort sees use of 3 'trains' Coadiauecl from Pqe 111 after the ebort of conatnu;tioa, the steam aDd electric power stream ia eompl'8818Ci frOm pianbo we~ecolllllliuioned. The pipaline pdUare to 595 paia pipaline briDirialr pe to the prior to pretreatmanL piBDt waeeompleted aDd eom· Pretzeatmaat involv• ·mou· miaaioned in March 1964. edlauol•miue(MEA)ilerabbiJqJ The other plant eyeteme, in· to remove C02 follo....t by iu­ ellldiac -water eoolialr aDd jee~ou of diethyleue.rlyeol plant etonsce; weni &leo eom· c:ombiaed with abeorpt:ioa with miaaioaedinthe~of1964. &lamina to remove waterfiom The eeeoad train came. ou· the feed ldniua.. stream in Nowmber 1964 aDd The f..d stream ia cooled thethinl traiaeameoa-. apUm three preeaare ~ in Maldi 198&. . each of eveporatiq propouie, In theinitialoparatioaofthe elhyleaeaiidmat!ume.Thefeed piBDt, the followiq problem stream aibo the methaae a· areu were obeerwd aDd·lllllv.­ ehaqen at ·240 F aDd ·259F tioae imp~led: aDd 20 paia aDd iapampadinto • Equilibrium of the eaeeade atorap. vapor. if the parity of the pro- Storap conaiate oftbrM ab­ -· refripraat ia not ...... ove lr!OIIIld J1!etai taab with filetory, tbiaca-aftldlarp oae eryopaie ia11101Uld ator­ on the eom~ due to the ap taa1t. Two of the ·abofto .,._ ofbeaviar ~ crolllld metal taab aae iaaer bon prodacta. ohella of9 pm:aat Diclral.-L Tbia problem .... conected The thinl baa ... iDDer Uae1l of by farther.~ of the alamiaam ~y. . . . ~bo· aad the addiliOD All tbreeofthetaab haw a of a amt to-- earp!• capacity of70,000 bbl. Tbeery, vaJI«. . . ..,..uieiJl.c:iouad taDlr,iD which • Vibration of the mMhaDe LNG is atondin dinc&eoatact tarbocom~. vibraliau, with the fio&ell soil; baa a cap­ notably tboee at hlch ..,... acity of310,000 bbl. bl• have beau ....,.,;.ted with Thelliatliquid waaprodaead ~==-)·pnead- -conectedbyaDd the. iautiafiletoryworlananahipor from train 1 into ltanp in NPJ-tofaeoapliq. quality eoatnll, while the -1 Aapat 1964. The flm .mp. • FCIII)Iq of~ by etraetare fraetaree were liD· maat of LNG uriwd in the m__.·thefclaliqwueJim. doubtedlycauedbypoorwork· U.K. atCaavey Ia1and on OcL iDallod byinanilltenehecbloro manlhip and iuattention in 12, 1964. The lint lhipmaat illatiOn aDd. the - of mt.r =pof....,;qlymiaor uriwd in FraDCe at·Le Havre ..... in February of the fo11owlq •Premamn-oftbebail• Caqo pampa, other eqaip­ year. . ere·tbia-waacOrnctedby mant,iaetramantotion aad the Planteoutradioaaildlll:a& the aaeofQdruiaeiD the feed pefaalbamialrplanthaveall up proceeded emotbly with watertoimprove ... _...._ parformed emiaaatly utiafac. millimaldelaJLAboat-year Tbe-taaboftheeani- torily.

NATURAL GAS TO LIQUID NATURAL GAS Japan begins importing ... for use In· your community Indonesian LNG in 1977 INDONESIA-JAPAN JaP'G ia imporliq aboot 1.9 produced on July 6, 1977, only On Aq. 14, 1977, the flm billiouCF/dayofnatoralpe 33 montbe later. In fact from lhipload ofLNGfiom lndone- . u LNG. theinilialiouof~toebort u uriwd at Oaeka, Japan, TheBadakLNGprojectorilr· ofprodaelioa wae only olichtl:v aad wae ofl1oaded. Tbia iaq· inated iD · Aapat 1988, when over6.5 :vnn. which ia a truly orated oae of the 1aboet LNG Pertomina, the Iudoaeeia remarlrable achiavemeuL bue-1~ PtOi-. . etot8-owned oil company aad TheJ-bnyere8JII:The Theillirpwaecarriedaboud thr Hafrco Group oiped a ChiabuElectriePowereo~ The the-.-! LNG Aquariue. The prodaclion-ehariq coutract Keaaei ElectriePowereo~ K:v· Aqaariae,. conetncted at .the tbatprovidedfcwthe"economic aehu Eledric Power eo;, Nip­ General Dyaamice Quiuey, clevelopmentofnatural~aDd ponSteelCorp.aadO.U.Gu Mae., obipyud, wu the lint other petroleum." · · ·eo. Americ:an·buik LNG curier After thrM yean ofapiora· Ther..do....iai.LNGproject, Iince the orilriDal· ~-· tlon aad evalaalioa work iD when fally oparalioaal, deliv· ere 388 trillion Btu a year of "Our project(Yukon Pacific Corp.'s trans-Alaska LNG in -·Geaera1 Dyaa­ gas p1peline) It could bring four nations together· mieaLNGcUrienprovidedby --Japan, Korea, Taiwan and the United States- =::,.<:=b~,.!;:!:· to develop a transportation system that is potep- eportation Corp. nbeidiarieL tially the world's largest private construction pro- . Araa.theeeeoadlndoae8ian ject. It can deliver gas to Asian markets at· a aost · ~~\= ~ ~ which ilf competitive. It is a bold new step in the plant, located ou the north rapidly growing American trade with Asia, which eout of s:vmatra. lnd01le8ia, last tor the first time outpaced the United ill owned ·by. Pertomiaa· and year oparatedbyP.T.ArnaNatoral States' 200-year-old dominant trade with Atlantic o.. Liquefaction eo., an In· nations. doneeian company owned by Pertamiaa, Mobil Oillndone­ ·-Wa/ter J. Hickel, Chairman· u BDd by Japan Ind0De8ia jec:t comprised of field devel· Gu reeerv.. are available OPm&Dt. field produCiq facili. aad iaetolled plBDt aad field --0. Pendleton Thomas, Pre{li~ent~ LNG CO. · • ti•, pe and coadaaeate pipa­ faeiliti•are pre-inve8ted to ac­ · · r Tbe~8QiiDeerinlraad liDMBD4 LNG pianL commodate planned doubliac Pl-wueonverteclbLNG the field, the Badak eiractue . conetraCtioil contractor .wae Tbe overall compla is de­ of capacity. iD1988•. wu idaaliliad and a ~ ·Bechtallno; ·wider a c:oatract liped to proc:eM 1.5 billion To date, the Arnn plant hae With the initiation of deliv· procramiailiated inlabo 1971. with Perte:miDL . SCF/dayofpefiom theArnn demoaetrated ibo capability to eri• from the Badak LNG Tbia procram ~ed. a Plant feed .Ia· eappliecl from field, reinjeet 600 million produce above ibo deeip cap­ plant iu Eaet Kalimatoa, Jap­ major pe m-vW:v of _. the iDlaDd .Aruil pa-coadaa­ SCF/da:~> into the prodacinc acity. an now baa eomefoilr­ thBD 70 ....,.,;.ted aad DOD• Ute field cliDv....d by Mobil formation, produce LNG equi­ Reported prodnelionfor 1978, ofLNG epply: AJu1ra, Braaei, ...-iatied p. _,.._ Oil IadoaisiaiD late 1971 aad valaat to 600 million SCF/day for example, wae 22.926 billion Abu Dhabi aad Indo..-.. Ae eoaetrliclion of the LNG located20aiileefioni tbepianL ofpe, aad Prociuee 76,000bbL .CG ofpe ae LNG. No stalie­ Abu Dhabi ·aad lnclonl.ia fac. piantbeirBDintheftmqaarter · . eompletipa repreeellte the per day of etobilized. hydro­ liee have beau published for ililie8 reached fall deliveriee,. of1975,aildtheflm~G~ ftilal phaee of q overall pro- cUboa i:ondaaaabo. oubMquent yean. Energy roadmap charts resource, Energy "Roadmap" site, operation, issue for series

Comprehensive Energy Planning Elements An early problem in evaluat­ ing Alaaka'o 0Dtlr1D' neo...... wu developiDtJ a chart, or ''roadmap," that would opec­ if)' wheze we etood and wheze · OMAGM eo.! Wind we wanted to ID·. · .. _, (12-) After many monthe, a table of entlr1D' plenniDg elemanto ~ Woad Other wu completed. In any ODtlr1D' planniDIJ, ODe needo to !mow: ·--·-) • Tllunnnruo..,...(qD&D· tity/qnelity)-ioitcoal, wator, oil. nataral pa, wind, etc.? Decommlulon/Reclematton • The ,;,. of thilo...,....,.­ whezeioit? • The operation - what baa man done with thilo noource, from exploratiOD to truupor­ tation to eJectrical pneration to reclametio"-of land, etc.? Technology •Demand&Martets • The ;..,., auociated with •Siafe.ol·lhe-Att the operation - economic, ea­ • 5upptv Factors •Advanced • Empfoylfteftl •C• vironmen&al, etc...... •EHic:lancies For eumple, ODe mey want •ModtlinQ •Net Energy • Coet/Benefil AnalyM, to determiDe the coat of mov· ingnatll!lll,..from BeiDtJ& to Ancborqe- a work elemenL • Theo11t1171Y reeo..,...io JWo 11!111,..;, • The .ue g Delap; • The operation ill tnnepor- tation; . • TM ioue i8 economic:L Tbetableof"Compreheneive INFORMATION COLLECTION AND EXCHANGE·- En....,. P1aDnintJ Element.," ouren....,.IOadJiulp,iotheftnt Govllftllltftt Educ•llan81 lnduetry etep ~ identifyintJ our • NIIIOMI Ultoreloliel •Unlverlitift & Scftoota work with---. fiiDc. eLi..,_ tion ofJHOarce,lite opaatiOD andioeue• ..... Tberoadmapwuclevelopid ·-­ ·-­ .. part of the AJaaka RePonal ·- Eneru llaoo.....,. PlenniDIJ Project.

Transportation is key for tapping resources Our en....,. roadmap note. MeMiJiiaD,AIUkaNataraJGu that Alaaka baa been bleued Tranomiooion Syelem (ANG­ with many en....,. nooureee TS). bat will zemaiD antouched and McMilliaD wanted to move of little benefit to IDIUl. aataraJ,..fromPradhoetothe A key eDtlr1D' operation ill lower 48 via Fairbanko and truuportation. Some way the Canada. Hereeeived the bJeoo.. 8Dtlr1D' ...... iD thilo en. iD1 of WaebiDtJton, D.C., and eauion ,.., mut be DDiocked Canada but, try u he mey, be from Natoze and truuported never reeeived otroDtJ beckintJ to ,_ One mode of­ from Alaaka. . portation ill the pipeliDe; how­ At a meetiDtJ of Common· ever. Natue doe. not create wealth North he otated that he pipeliDee - man mut. ka- he would never be Ala. Many people and orpniza­ ka'o fizet Jove bat be hoped be tion have been iDwlved iD try­ would be the aecoad. ing to move utaral tJU iD After the meetiDtJ he aeked AJaaka to market; however, "did I eat ODOUIJh crow?~ He oibility zeota with ENSTAR theze aze thzee people who aze had not. EntJineeriDtJ, Inc:. with eDiiD· wrywellkDowafortheirefrorto Tbe·coaeumero of ODtlr1D' iD eeriq, procurement and field· iD thilo field- Dale Teel, John thef'\Dchorqe Bowl do have a meD&tJement beiDg furnitohed McMilliaD and Wally Hickel. by Wilcnst EntJineeriq Corp. Former Gov. Hiekel ill better ~~;,: b~:...:~ :..~ ICOIOlpl.eti

12

L P GAS for HOME, AGRICULTURE and INDUSTRY

FAIRBANKS Petrolane-Ataska Gas Service, Inc. 23i9 Cushman P.O. Box 2135 Fairbanks, AK 99701 (ilo7)458-4341 (907)452-1051 (907)452-3141 PALMER Petrolane-Aiaska Fuel Service P.O.BoxP Palmer, AK99tU5 (907) 746-4216 SOLDOTNA Petrolane-Aiaska ; •.. ·t Service P.O. Box410 Soldotna, AK 996'19 (907)262-4683

ANCHORAG~ Petrolane-AltuJiuJ Fuel Service 1200 Whitney Road ~· Anchorage, AK 99501 (907)272·7581 FOR ELECTRIC USE ... Japan signs for Brunei LNG BRUNEI-JAPAN lion acheclale auel atertecl in eat carry-over illto the eaud 0.. .Jane 2, 1970, a a>ntnd 1972.Itc:ameon-etreamill.Jane filtero, which necessitated fre. - llicDed coveriDa sale of 1974. quent backwuhing and a>n· LNG to .Jap&D for a period of Plaut &tort-up wu began eequently reclaced the illput 20,_.. to bet1in ill April1973. when the utility and awdliary from the freahwater supply. Tbe uataral pa - to be aniu...... , broaght illto open· Ezceseive pump wear due to piVVided~lmmeiLNG Limit, tion III'IUiually during the finrt solid material ill the waterwu eel, a COIDpany iDcorporated half of 1972, while the actoal · aleo a problem that wauolved aDOier the lawa of BI1Ulei and proeesa aniu were -arecl by modificatioD of the pumpo. OWDICI~abelll'elraleamM.V ~ for -•P during July and Only miDor problema ...... , ~ MitaabJabi Shoji Kaiaha, Aupat. encountered with the· lique- and the lmmei Govemment. The finrt loading eU.ted on factioD traiDo, auch as blocking llnDei LNG woald liquefy Dec. 7 at a reel aced rate aincait of filtero by mi11aca1e and rut - · thapaattbeplautCOD8Irllded - neceaary to a>ol doWn. andfoalingofthewateraideof at Lamat in Bl'11Dei. After the whole of the LNG ayotem a>olere and a>ndeJUiel'l. llq...r.ctiaDBrmaeiLNGwoald on Gadinia, which liailecl for Improved ~t performance deliverLNGtoColdpa'l'radiDg .JapaD loadecl·with LNG on. wuachiewdbyacarefalotady Limited which lnop the LNG Dec.9. ThuthefinrtLNGwu to improve the availability of f.o.b. and traDajoort8 it to the deliverecl to Oaalra Gao ~ plant and eqaipmeut and to CIIAialelllill.Japanillthe..,.. Ud., on Dec.15, the nact date· reel ace the dowD time for taDIIea chartencl for the par­ eotebliahecl for plauniDg JI1U' maintenance. ThereauluweN C::'!d.mShellT&Dken(U.K.) -some 2 yean· earlier, 3- to.Ubillzetheplantoperetion 112montho aft,er the finrt gao andreclucathenumberofohat- Tbe .JapaD cutomera - went illto tho proeesa plant. downo and -ape. ToQoGMCo~Lid., TbeToQo The aecond ~ - auc- Tbia, ill tom, a>ntribated to Eledric Poww ~ Inc., and ceeefully atertecl ap. ill May reclucingenergyuqailemeuu Oub a.. co., Ud. .1973, the -third ill November fromapproslmatelythooecalc- Tbo liqald pa -.. ia 1973, the fourth ill December alated ill tha.deaiiD to a lave1 nbcooleol below iu boiliDa 1973, anlf the fifth ·in .Jane of aboat 80 pi!ICeDt. ·· · paint to llliDimiae flub ~ 1974. . · Neeclleu to say, the Branei · elvillg prodac:l trauofer to Among the more oitrnificant LNG plant ezpecta to faifil1 ...... problemoofetort-upandiDitial and oceed iu contraclaal Tbe ,_ nqailw Jarc• ·oporation-includeclftoa>al- obliptionooverthepnjectlile. comprenan auel heat ez· ~&Mh~nqDireoduoellaiDtarlliJie.clriWDc:eDt- J~iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii~ riiDpl -.....-. toU1iDc 115,000 hp. Tbe maiD eryopuic hll&achauprill-=h~ia MUiy 9.0 foot hiP. 13 foot ill ....,_,andWiillho100tou. Tbo facility will illtab-u Paet/ie iOtdalt ~UH4 la1l oponticiD - - 900 miJiloa ca ft ofuataral.pa per clay and II cleoipocl to cleliver 6930 OAKWOOD DRIVE '780 llliiUOD ca ftill Jlqaicl f­ to otanp &Dcllcw taDir.en. . CcmRnM:t!ODoflbeflrllfoar ANCHORAGE, ALASKA 99507 ...... heaD ill IWeh 1970, and lbe tint of lbeoo ~ -um. CcmRnM:tiOil- ill of October a fifth tNIDaddecltolbeillitimpnject - pbMoclillto the-- *Writing: -. 58'11 ot Hdlmentary • Annual reports for energy related firms U.S. rock offsho,. • Renergy, monthly supplement to Alaska Journal of Commerce Is IOCIIted In Alaska Tbe 18'J'7 .AIMb BelioDal • Industrial operating procedures ..... --- l'lamliDc • Proposal preparation rr:::-~-==rock-olrah- oflbe u.s. • Alaska's energy resources II *atocl ill Alub. * Lecturing: mlin~- of am318,200 ill offohore -a­ .AIMbhulbepoteutialforoil • College and University anel gao. In aclclition, the • Banquet circuit oubololllclimmtuyrockarea ill AJulra II 2112,000 eq,_ • Television (over 300 programs) lllileL Tbe A1lERPP Dotel that the • Radio _...... ODihCWI_an 31.722theo«IDpriiiCWI uecl for JIIIIDIIiq North Slope oil .. ...uataral .... So ill 1984 the ...,..Uty ... Gene P. Rutledge, Owner (907) 349-4979 far the nau at North Slope w1Dam.nttot2Amillloaplu ~~action.,... of

SOLAR & ALTERN ATE ENERGY ... 1985 UPDATE

The sixth Annual Alaska form at its potential - about Alternate Energy Conference one-third of the fuel energy it of March 9-11, 1985 was held in now·consumes. Anchorage. The "Sourcebook (Authors note: the results and Preceedings" of the con­ tend to confirm to some extent ference documents the activity the predictions ofShurcliff. The of recent solar research as well school children should be aud­ as a wide range of energy sub­ ited for work performance jectsincludinginsulation, ven­ under daylighting versus arti­ tilation, micro-hydro, wind and ficial light.) geothermal and even tax cred­ The preceedings also includ­ its and State of Alaska energy ed a paper by Dave Brook, policy. Energy House, on "Residential Three papers on solar energy Stand-Alone Photovoltaic Sys­ provide the reader with some­ .terns - A Guide to Selection" what of a solar update. Wil­ and Don Markle on "Consider­ liam Shurcliff of Cambridge, ing Wood Heating." Massachusetts, discusses "The The Opening Policy Keynote Coming Demise of Passive speaker was Dr. Neil Davis, Solar Heating as a First-Rank Professor Emeritus, University Cost-Effective Means of Reduc­ of Alaska and author of"Ener­ ing Annual Auxiliary Heat gy Alaska." The title of his Need." He predicts that by 1987 address was" Alaska's Energy architects "will come to under­ Policy, Power to the People at stand that no amount of pas­ any Cost." Governor Bill Shef­ sive solar heating, not 25 per­ field gave the luncheon key­ cent, not 10 percent, not 2 per­ note address. cent is cost effective relative to super insulation." However, he HEAT MIRROR continues, "In specifying med­ A significant solar technol­ ium or large south windows, ogy operation occurred in Alas­ they will do so on grounds of ka on March 25, 1985. Arctic daylighting and view." ThermoGlass, a division of (Authors note: These predic­ Glass of Alaska, started. pro­ tions may be true; however, duction of HEAT MIRROR. there is no doubt that daylight­ Within thirty days this Alas­ ing is "'~ry important to some kan product has been purchas­ Alaskans who are subject to ed by glazing contractors and the dark winter "cabin fever" millwork shops (window fabri­ '·· disease. More scientific studies cators). are needed on the efficiency of A number of mon_ths ago, human beings as a function of HEAT MIRROR, fabricated "daylighting." Such a study outside Alaska, was installed could show that passive solar at the Anchorage Museum of heating is indeed cost effec­ History and Art, Charter North tive, even if not BTU effective.) Hospital, both in Anchorage, Richard Siefert documents and N erco Mineral Office research on the performance ·Building and the University of of a passive solar design. at .. 1 · Alaska, both in Fairbanks. high latitudes. The rural school · Wavelength selection is the tested has a five-fold increase sdentific break-through that in actual fuel energy use ver­ makes Heat Mirror insulation sus predicted use. Siefert points possible. Here's how it works: out that the "building needs to the sun's radiation, which in­ be audited, and mechanical, -~ cludes visible light, has short ventilation and control syste~s wavelengths. Heat radiation, thoroughly tuned and balanced the kind you want to keep inside 10 that the building can per- inthe winter and outside in the

V.l Name ______

Address ______

Mai! to: BANK OF THE NORTH P.O. Box 6608 Anchorage, Alaska 99502 Attn: Bankcard n.,.,,,.rt·rnont summer, has longer waveleng­ some reduction in visible light ths. transmission. The low shad­ Heat Mirror insulation works ing coefficient plus high insu­ by selective transmission of lating capacity make HEAT these long and short . wave· MIRROR 44 suited to hot cli­ lengths. It is highly transpar· mates or cooling load domi­ ent to the short wavelengths""'"" nated buildings. making it visually clear like The colder a surface, the more an ordinary pane of glass - readily condensation collects but it is highly reflective to the on it. During cold weather, the long wavelengths ofheat, mak­ interior surface ofwindow glass ing it an effective heat barrier. is one of the first places con­ Wavelength selection, in densation forms. A HEAT short, is what gives Heat Mir· MIRROR equipped window has rorequipped windows such out· a warmer interior glass sur­ standing insulating properties face temperature in winter - - keeping you warm in win- therefore less condensation for ter, cool in summer. a given outside temperature. Heat Mirror is made by dep· ositing an invisible heat-reflec­ Exterior temperatures that cause tive coating onto a special poly­ condensation on window glass: t ester film. This insulation is Of mounted by Arctic Thermo­ Glass inside a double pane win­ 52° dow.Itisinvisibletothehuman eye, but radiant heat "sees" it like aluminum foil. Heat liter­ ally bounces off the insulation back to the source. And it works both ways. Heat Mirror insu· lation keeps you warmer in winter by reflecting heat back inside, and cooler in summer by keeping heat out.

The work on developing Heat 'Interior r~latlve hurfn~itY. 60%, interior temperature 10• F, exterior wind Mirror insulation was conduct­ 15 mph, 1 ' overall uOit thickness. ed initially at the Massachu­ setts Institute of Technology and later through grants from A window's insulating abil­ the U.S. Department of Energy. ity is measured by its U-value. The Southwall Corporation Heat flows from warm to cold. produced five Heat Mirror pro­ In winter, heat flows from a ducts: HEAT MIRROR 88, 77, warm interior, through win­ 66, 55 and 44. The numbers dows, to the colder exterior. represent the approximate vis­ The lower U-values of HEAT ible light transmission. MIRROR equipped windows Arctic ThermoGlass is only reduces heating costs. fabricating HEAT MIRROR88 at this time. It is colorless and In summer, heat flows from transparent and is suited for outside to inside, and a low U­ cold climates or heating load value again indicates that less dominated buildings where it heat will pass through the win­ is important to have clear win­ _.•: dow - hense reduced air condi­ dows that are highly transpar­ tioning costs. ent to solar radiation. HEAT MIRROR 88 is the preferred HEAT MIRROR is now being product for passive solar appli- sold to window manufacturers cations. . in Japan, the United Kingdom, and Canada as well as the U.S. HEAT MIRROR 44 rejects,, O:he recent feature article even more solar near infrared published in the lower-48 was than HEAT MIRROR 88, with headlined with "High-tech

V.2 ,~ YOU SHOULDN'T HAVE J;v )'~~ TO GO THROUGH A WHOLE lOT OF SOMETHING TO GET A liTTlE BIT OF NOTHING. A GOOD PRINTING ~· ~~ JOB DOESN'T HAVE TO BE COMPLICATED MATTER. CAll US AND SEE HOW EASY IT CAN BE. NCHORAGE PRINTING, INCORPORATED 272·2213 3110 SPENARD ROAD • ANCHORAGE, ALASKA 99502 .. ~ ' i ' Typical Glass· Iasulatioa Valaeill Single Pane Double Pane Study -this project addresses the sawmill's overall produc­ tion· economics. A goal is to reduce the production of waste 314" wood through efficient mill operation. A marketing survey aimed at using sawmill waste U-valile I1.10 I .48 I for fuel will also be conducted. A-value .91 • Juneau/Sitka Woodwaste 2.04 Planning-the purpose of this project is to find alternative Triple Pane Heet MlrrorTillaa solutions to current land clear­ Equipped ing disposal practices within Do.ublePane the two municipalities. Prop­ osals spanning a 15 year as­ sessment period will be pres­ ented to the two municipalities for consideration. lw···lw·~l I~ I~ I • Wrangell Forest Products U-value .36 .26 Plant Expansion- Alaska's largest sawmill operation will A-value 2.78 3.85 examine the possibility of ex­ panding current plant to in­ windows work like see-through clude co-burning of MSW and walls." bark residue. Co-generation BIOENERGY and possibilities for selling The Alaska Department of back power to the City of Wran­ Commerce and Economic Dev- gell will also be studied. . elopment belongs to a u.s. The Alaska Office ofEnergy Department of Energy regional started a Biomass Information bioenergy program adminis­ Service in 1984. This service tered by Bonneville Power Ad­ has available a lengthy index ministration in Portland. Pro­ of biomass resources. gram activities are centered on the efficient use of wood residue .... and agricultural, animal and municipal solid wastes for en­ ergy. Major areas of study and demonstration include: • Resource recovery • Types of biomass-fuel con­ '· version technologies • Environmental concerns related to the use of biomass forfuel . Alaska Projects Focus on Biomass Planning, Development and Resource · Use . This year, the Department· of Commerce- and Economic Development· awarded ·:.~four grants under the State Bio­ energy Program. These include: . • Charcoal Plant Feasibility Study - the goal of this prp­ ject is to complete a prorpectus outlining the feasibility of sit­ ing a charcoal plant in the Matanuska Valley. • Valley SaWmill Residue Use

V.3 •Enlarges to 200% in seconds• •Reduces to SO% in seconds• •Takes the place of some time­ consuming, costly film work •Enlarges from 18" to 36" instantly •Strengthens w~ak drawings and improves drawing contrast •Eliminates the need to splice 2080 copies together by producing one large-size copy •Allows quick, economical change of scale nonphotographically •Copies even the longest original onto a wide variety of materials •Makes cut marks, tape images, Size Limits of the Ridgway's SHACOH920 ghost lines, and cut and paste Input: 36" wide x any length revisions disappear OUTPUT: 36" wide x any length •Produces clear or matte film copies that can be used as over­ lays or final produd •Reduces to standardize formats of bid proposals and to make oil logs, seismic logs, and computer output easier to handle •Frees up "plotter-bound" CADD units by allowing for the enlargement of smaller plots •Makes giant presentation graphics . 1 ~ eCan be used with the Ridgway's Xerox 2080 to reduce cost and turnaround time \

~EE Pick~up I Delivery " jc 561-1555 •In preset increments of 200%, it, 100%, 7S%, 66.6%, and SO%. . I Solar energy- has advantages and -disadvantages....._

The earth baa alwa:ra iJldi. ever,eincethecoataof-t the -likelieat to- into nctlydepended on the I1ID for me&hoa of prodadq en..., ..-...... -'111iekl7iahe& euqy. Ita ra:ra provide the are libly to coalin• to Jiae, iq and CIICilfq. -· heat that hiUIUUl, animal and time may help nmove -of tooaly200inDec.mber.Ciowl plat life need to IRII'Yive. the economic buri-.. - and IMI!a)lhlal ~ With tha cli8co,..,. of file, Solar. B..._ A Coollq _ _ tloul8oaft'ecta the-tof There ... ..vera) ..,. to- .olai aes17 -~' the ==:=va.:-z.: uae IIOiu enezu dinctly, bat- eartb'alllllfML today on•thinl"oftheworld'a -ationdepenuonftrewood aa ita principai.ource of fueL Designing a solar installation requires precise Bathed in the IUD'a ra1\w data on energy. OneYiay_i&to use a pyranometer millions of years, the rema1Da which measures solar insolation in Btu per of plants and anima1a were square foot hours. chemic:ally chansed into the foalil fuela - coal, petroleum A heat flow sensor can measure the instan­ and naturaliJaa. taneous rate of heat flow, in Btu per square The sun continuoualy evap­ foot hour, into the collector's conducting orates .ome of the earth's wat­ medium; Heat flow readings can.be-compared - which return aa rain to _to insolation· data to show how efficiently a feed etreiune and rivera. Water mille powered man's_early in· collector- is operating, that is, what share of dustry,andmodemhydroelec­ available energy is- being car-ried off via the tric plants are an important collector system. · .ource of power. Finally,the unequal amounts - Each year 20 perceJ~t- of our And. duriq the mpt there of .olar heat falling on difflll' nation's energy ia uoed to heat ia no .olar eDeriiJI at all, Con· ent parts of the earth'ollllrfacs and cool homes. Each day the eequantly, deoipiniJ a .olar 11enerate ·.mu, which move eundeliveraanaverqeofl.COO · inetalliatiorneq11iraeprecieoin· asiliniJ ships and power wind­ Btu's per -929 square centim• formation on the amoant of_ millo. tsre(l aq. ft.) to the U.S.· IIOiu .ner.:v-availa~ at the Compared with other ways But the sun's output variea proposed lite. of produciniJ energy, .olar en· from 500 Btu's _on a June day ~ .olar healing installation ergy baa many advantaiJeo. It ia inexhauotible, available ev­ COOK INLET AND ANGOON erywhere, n!quireo nofllel,doeo not umqe the environment, and cannot be rationed by other nati.cma. Alaska has favorable tidal power sites Solar energy, however, aloo Cook Inlet, with an average Althoqh a tidal plant may baadiaadvantqeo.Itiaapread pin Ann (..,800 MW) and one Great Britain-~· u1961. diffuoely over the earth; hence tidal r&niJe of about 26.7 feet, beeconomic:allycompetitivein and two pool projects uoin1J. Inadditiontotll oimplewat­ thouiJh .olar energy ia in a hu the hi11heat ranp in the the lODI( term, it ia Dot likely to both erma (3,560 and 2,800 er wheel turned the tide, aenae "free,'' it muot be col­ U.S. and-one ofthehiahntin- .P.e aerioualyconeillered ezcept, MW), and aits one at Anpon many inpniouo, althoqh rel· lected &om larp areas to make the world. _. 1 jlerhapa, in conjunction with (30 M,W). Attention waapven atively primitive, dtachinea it practical to uae. Despite aubetoui.tial el(viron· the construction of a bridp to en"innunental, Hcioecono­ were uoed to power lhe lrind- mental impact, the iite baa the acroaa the Inlet. mlc, lagal and h;vdrolocic fee. iqdevicea. ; Second,itiaintermittentand, advantqeofpro:D.mity to An· Another potential aite 18 at therefore, requires aomemeaua tors. However, with the appeu. chorqe, the state's lar11eat Angoon in. Southoaat, where ·· TIDAL POWER ance of impu and ...,.,UOil · of storage when there ia no electrical conaamer. the maan tidal ruip ia 10.6 Aecordin . to L.B. Bemah· turbiD• and the ina~.,. ll1lll. Thio "on-again, off-again" Presently, much of the area feat (Stone & :Webater Enlli· feature of .olar energy ia the tsin, !idea :ave been uoed by potioer&omlhennaleleolm!Ud 18 served by electricty pnlll' Deering Corp.) . - man uan ellerlD'·aource Iince ...,.teat barrier to ita wid.. ated by low cost natural pa. hJdroelec&ricaenentin~r~ pread uae. A two-volume report waa at~ aa,lona qo aa the tidal power devicea IJ8Derali7. Ae lhia re.ource ia exhauoted publiahed by Stone & Webater fell into diauae. over the neat decade, itl8libly Middl1l A. .Tidal mille­ Added to th-taclmical bar­ funded by Enera:v Re.u:h & uoed OD ahoraa of Gaal, France baa led in the devel­ to be replaced by the develop­ rae rienareeconomicODeBinYOiv­ Development Adminiatntion. Andaluoia and what 18 DOW opment of modem tidal­ ment of the Belup Coal Field iq hiah initial coats of build­ The Alaalra oitaa addreaeod Enl(land duriq the 11th -­ use. In 1737, Balidor, a FnDeb iq IIOiu facilitieo and devel­ and/or the propoeed Suoitna .... four in Cook Inlat, i._e. tory.One~lllillclalingbeck artillery deldl(ned Dam project. ..,.m-, a .... a IIOiu induotry. How- Knik Ann (7&0 MW), Tanaa- to 1170-atiitlapparationin Condaud 010 pq. a Rutledge to author new energy series StartinginJuly,1984 anew special photographs/mapa· tiaen, we have found that the mouth (Ohio), Pittsburgh and as a registered energy lobbyist monthly energy supplement /aketchee, and aelacted copy· high technology, geological. Idaho Falla. ·and baa boated over200televi· aeries called "Renergy by ri«hted humorous "Glacier acienlificandengineeringfirms Rugledgewaacommendedby aion programs on enerp. Rutledge" will be publiahed in Energy'' tales involving inter­ in Alaaka.feel very comforte· Westinghouse for his manage­ Aa a member of the board of the Alaska Journal of Com· eating personal experiences of ble aaaociated with the writ­ ment(analyeis and testing) role Directors ofa western federal/· men:e, according to General Dr. Rutledge. ings of Dr. Rutledge, perhaps on the famona Nautilae proto­ state energy compact repres­ Manager Jim Martin. Attention will be given to becauaeheiatrulyoneofthem," type, the world's first naclear enting the State of Idaho, ha Thia new aeries is a follow· the accomplishmente of firms notes Martin. power plant for submarine traveled to maaka in tba ear1y up to the six very popular in Alaska that are involved in Prior to coming to Alaska, propulaion. 1970s on several enerp pro­ "Aiuka Energy Resources" energy operations as well as Rutledge was a nuclear scient­ As executive director of a jeCts. Hiscoantarpartfnllll 1968 supplements which will be long-range energy planning ao ist with extensive experience state energy agency in Idaho, to 1976 in Alaska was the U. completed in June, 1984. important to thenear·term and in technical and management he administered over 30 con· Govemorinoftlce-Bob Ward, "Renergy by Rutledge" will long-term plana of Alaska positions with Union Carbide tract& on solar, wind, water, Red Boucher and later Lowell be baaed on the energy "Road· companies. and Westinghouse Electric in fiaaion, faeion, wood and geo­ Thomas, Jr. map" developed by Dr. Gene "With ieapect to oar adver- Oak Ridge (Tennessee), Porta- thermal energy. He hila served Con&iaud OD Pep 8 Rutledge and hiscoll-ea in 1976-1978 when he was project leader of the Alaska Regional Enerp Resources Planning Project(ARERPP)Teamin the • The price of solar cells is dropping Alaska Office of the Governor. Con&iaud from Paae·l aolar cella are aeed in light ·baV.: been identified u well and fouil fuel plants. Renergy is defined aa a ne­ Uaiqthephotovoltaicefrect, meters, and .in the apece pro­ suited to aolar· electric plants. One of the dispened appli· utide baaed on vu:iona c:om­ the sun can also generate elec­ gram, where they have provid­ One is in ~e powerplantein catiuna ia a totul enerp aya­ binationa of the energy ole­ tricity directly without the en· ed electricity for a variaty of a utility network. The second tem that generataa electric mente making up the energy ergy·waatingatepainvelvedin apace vehiclea. . is in diapeiaed applieatiuna. power by thermal conversion roadmap. thermal - Thia effect The Price of aolar cella baa Solar electric plante are eap­ and also uea the by-produc& A mix ofenerp iilaaea, (eco­ occara when light bite certein fallen dramatically in recent aciallyauitahleforamall appli· heat. whlchianonnallywuted, nomic, aociel. environmental, aenaitivematerialaand creataa for apace heatlna' and coolin& govemmentul, technological) an electric earrent. . or for hatlna' water. aaaociated with the energy A typical solar cell, which ia "Solar heating systems req~ire storage for Another dispened appllea· operations (exploration/dis· the basic unit for this device, heat collected during sunny days for use at tion is in lrription ayatema. eovery, storage, development­ contains apecially coated lay· One type of solar iftigatian /recovery, proc:euing, genera­ en ofsilicon with ouaidewirea night and in overcast weather. Insulated tariks eyatam - a lield of para· tion, tranaportetionltranamia­ attached. for heat storage can be placed above or below boiic-ehaped mirrors that fol. aion, end use, decommiaaicml Cella can be connacted elec­ reclamation) on Alaska's trically to form aolartnodulea, ground and can store heat In water or In rock low the II1IIL An oil·lilra fluid energyreaoarcea(oil,gaa,coal, tba building blocks ·of solar beds. The size of the reserve storage tank will circulatina' through tbalieldia heated, then goes to a boiler hydro, uranilllll, geothermal, electric ayatema. For example, depend ort the dem11nds of local weather heatexchanpr where it wind, tides, wood, aolar, oil 40cellaconnectad toptber pro­ va.,. conditions." rixea fraon, a chemical - shale, peat. and others) will be vide enough electricity to taic enOfl)' can also be ued to addressed. charge a 12-volt auto hattary. The Renergy by Rutledge Thefiratpracticalaolarcella years. The goal ia to bring the cations becaaee they may be The .hot high-_.are ... format will involve special were made in tba mid 1950s to price down atill further ao that built in many amall unite. AI· drives a turbine that operates int.e•viewa withenergyexperta, aupplyamallamountaofpower by the mid 1980a sow cella though economics naually im­ tba irriPtion pump. The fluid irp.. ! ted articles by energy in suCh devices as remota-· might be making a substantial prove with abe, the economic may also flow to a atorap authorities, abstracto of energy ther equipment. ·contribution to meetinatba na• ~of solar plante appears to tank for later a8e. Photovol· publications of interest to the The moat familiar appliea· tion'a enerp needa. be significantly amaJler than taic enerp can 1aao be ued to AJC re•· • rs,energyeditorials, lions are in phoiiJtlraphy, where Two types of applications the. economic abe of nac1aar power lniption pampa.

• A history of tidal power Con&iaud from Pap 1 but was dismantled a& the be­ tides are the highest. their _, to produce continuous ginning of World War I. magnitude depending on the power aeing a double tidal ha· physical characteriatice of the sin scheme. Later four French There were many tidal milia shoreline. acisntiate proposed a multi· on the shores of New England, Although tides lag behind a buinplan. • including an 18th century bit becaaeeoffriclion, the moon Seriousconsideration oftidal Rhode leland inatullation with and sun exert their forces in a powertoproduceelectricitydid 20-ton wlieela. In 1734, a 50 hp aeries of cycles of diffaring mill was built by Slade's Spice le,.tba. As the earth rotatee, not come until about 1920, led Mill in Chelsea, by Defoar of the "Blue Coal Maaa. tides due to the moon occur Commiaaion."Finallyinl967, In 1920, Dexter P. Cooper ever 12 houra-25 minutes and a atata suhaidized 240 MW proposed a two haain scheme tides due to the sun every 12 plan& was completed on the with an auxiliary pumped stor­ hours. LeRance-.ynearSt.Malo. age plan& for Plla88JIWiuoddy The angle ofincidence oftba Jnlluaia, tidal milia existed and Cobacook Bays on the mooa'a and 811D.'I attractive aa early aa tba 18th century. -Canada border. In 1936, forces changa from day to day Work concerning modem tidal the U~. Corps of Engineara as the moon and earth revulve ene117 and development was initiated a single pool project; and rotate. Also, the magni· pabllahed in that coantr)' in Canadian interaR in the pro­ tudeoftbagravitationalforcea · 1923 and 1936. ject contin- to date. varies with the position of the Benahtain proposed a plant Oennic Tjdea earth and moon in their ellip­ tical orbidL Th- forcaa and others, "The forces of the sun, moon and earth's which are not aa yet clearly rotation and others (which arfl not as yet understood, combine to diJnin. ishorexagprate'thereaultina clearly understood), combine to' diminish or tides. . exaggerate the resulting 'tides. Combining Comiliniqtbeaefoleea, with­ th~ forces, with periodicities ranging from paiiodlcitiea l'UI8in8 from u 3.1 hours up, results in a theoretical maximum h0ur8and up, reaultein a theo­ tide ev4VY 1,600 years. The neXt super tide is retical maximum tide every 1,800 years. Tha next - not due until 3,300." . tide ia not dna until3300. Aa already mentioned, tba for tba Kislaya Inlet daring Deepita modern ...,.... in shoreline also aff-the mag· ConuDuecl frOm Pep 2 Pacific University; tauah 1938 and 193!1._ In 1968, a 400 pndictiq tidallevela, lcient­ nitude of tides. Extreme tidal Rutledga ia listed in Ameri­ eneqy coareea a& moat of e.Kwpilotplantfraaconatracted iste ati11 are in diaagreement ranges are especially likely in can Men of Science, lnterDa· University of .Alaaka at Kislaya Gaha on. the &r­ abou& such baaica as whether estuaries such as tba Bay of tional Who'a Who in Atoms, munity~andconducted ente Sea. 25 mile8 north .of tidal enerp ia caused by tba Fundy and tba Severn River, Who'a Whc;>in America, World a opecial "Energy Turns Marmanak. , earth's kinetic ene117 of solar where the!e ia a funnel effect. Who'• Who in CollllllerC8 and Wodd~daaeattbal982Wodd'o Since 1950, Red China baa heatenerp. Where tidal wave length is Indnatry and Who's Who in Fair in Knoxville, Tenn. actively developed amall tidal While the axact cauea of from2-4timuthelengtbofthe the World. Following, the publieation power plants. Generally aeing tides ale unkno- the gravi· estuary,~ can signif­ Rutl~graduatedfrom tba the five A\IERPP volumes, existing dams and dikea, 40 tational attraction oftba moon icantly increase the tidal ...,.. University of Tenneaeee, re­ Rutledga forlned Pacific Po planta were operating and an and, to a leaaerextent. the sun, plitude. . ceived an honorary Doctorate Rimoin late 1978 whichaervea additional 88 were under con· areimporten&factora.Loc:ation Another important factor ia of Science from Wotrord CoJ. as tba vehicle for his taaching, atruction by 1958. maet u1ao be considered~ mid· the coriolis force which ia ex· lege, served as thesis advisor writing, conaultiq and high ertedbytheeartb'arOtationon for the Uni~ty of Idaho technology ...,...;..,u.,. acti.,;. In Germany, an experimen· ocean tides are in the order of ties. . . tel plant was built at Husum, about 2 feet while the coaatul a stream moving north oraootb. •.. Solar expert: check out your installer By TOll JANEZICB ia confident !be aolar eyatema Baerllwl, ADch-p wiD wort on lariJe ecale pro­ UoiqoolarenergyinAiaaka jecte and baa varioae financ. i8 inlriping and intenoling. ing pecltqea availableinclad· Variou metboda and means in1J a lease parcluue arrange­ olea~ atoriDtr the 11111l'a ment. energy shared aavinga mioru have been tried with contract and an energy service 9U7iq~ofi11CCOOII. contract. Take lhe Mary Siah Rec!ea. AU these arrangements ars tioll Cenler in Fllirbanlto, for deliiDedtopayforlhemeelveo eumple. Here wu an ""'*-' in a relatively abort period of J.t JIIOiect that ...... t utray. lime. Tlut~employo40DEC. The feaoibility of an evacu· SASUIIJIIUteroolarwalercol· ated tube system i8 a proven 1octon and .... initially de­ option as moat of the owners of oiped tooapplemmtthaboiler . more than 30 each oyoteme in and heat lhe pool Alaolte can teD you. Dne to the Tbla wu a beautiful co....,pt nature of the vacuum, iluilaa­ with lhe aqle of lhe roof cle­ tion (which is similar to !her­ liiDed to reflect 10-20 pemmt moo bottle), when the light ·more light onto the evacuated alriltealhe blaclt eeleclive oar­ tube compoand parabolic re­ face it tame to beat and than tlecton. Tbia would enbaDce late very little beaU-bact to lhe~yPft{~oflhe lheatmoopbore(nocondaction, ayetem. convection, absorption and The Mary Siah ayotem a1oo very little radiation). aHewlett-Packarddataloner These ayotema can get apo and compaler to mollilor var­ warda of 650 degreea under iou tampenotaree in lhe aolar stagnation conditions, but you ayetem. Pointe of inlereat in· can put your band on the oat­ cladad apace beating, domee­ TlleelectJicholw--ler-lhutolflnMorchandllle aide glau and feel virtaaUy DO licbot-ler,JI!Miitampenotan, beat eacapiniJ. Add to lhi81he etc. . lema in the ayotem. P0111"bb' SUIIJIIUterdeoiped it to be theritia worth exPanding into fact that the oyotema are - It wu a1oo aat ap to mollilor tile"*"-·-· moot lii!Dificant wu the a cluad coup ayotam and the oimilar-larp eyatema- parlie­ engineered to work u a water a -etand thatcompuedev­ ue of a abeD and tube heat vacuum bntaker wu not rec­ alarly whore energy coota are dninbaclt ayotam (freeziq ;. acaated tube coDeclora, flat' Ucbanpr which wiD be re­ OIIliDI!IIded bylhemanafactar. high. • · noproblemaelongaelbeboua plate and !henna! diode col· placed BOOD due to ruling of er. ltwoaldnotbave been need· ·ArecentSUIIJIIUtercompa· doea not freeze). 1ecton. lhe -lobeD. , . ed if the eyotem -. inetaUed ler ran OD lhe Mary Siah aya­ Matcbingelorqetanb and Tbla particalar concept-. Then there wlhe ~­ acconliDIJtolheft!COIDID8Ilded tam delermined it wiD ..ve at beatexcbangere malta lhi8 an aaocl in theory inzt, Wlforta­ qe tank (about 500 IJallODI) pbma. 1eaat 15 pemmt of the domee­ ideal application for Alaolte. nateiy, due to lhe delailiDg which, even lhoqb lheccmect Batalloflheproblemooboald lic bot water n.eeda of the rec­ The oatoide tampenotan i8 not problema,lhe~wu­ otepo were taken to redac:e cor­ be comocled ooon aolhe North reatiOD center. critical in the Pft{ormance of uad at ita muimum effac. rooion pri>b!emo, it· corroded Star Boroqb i8 taking a poai· The actual aavillp wiD be the ayotem and - u with aU ti-. afler oewral yean of·-· live approac\1 in pttiDg lhi8 determinied when electronic aolarayotemo-lhoreiaalwayo AioDa with lhe fact that lhe lioiL Tbia wao poooibly dae·to sywtem on line and monitoring flowmetere and other D...,. abeclmpbealeremployed. Tbi8 c:aalpalel'ayotam -...... fa!. the inataUation of a vacuum each that it wiD be able to aee ury equipment are inetaUed one uaea an electric element iD ·1y lnoqbt on lille, there a1oo bnllkerwbichkeptze.introdliC' information for compari8on of and operating in collillDCiion a alorqe tank...... ,oomeUDiqaecleoipprob- iniJ O"YYJ8D mto the I)'Otam. the coetoflhoteya~em and who- with thecompaler. SUIIJIIUter Continued on Pqe 5 Week of Mot 14, 1984 AUSICA'S ENERGY RESOURCES P~~g<> 5 • Solar heating

Colltinaed hm Pap 4 a Mat-S flat platecoDectoraya­ There8ftolherBOiareyoteme tamcanatteot. Tbeeyotamwae inetaUed aroand lheetete. The plumbed and inetaUed each mo.t common of which ia a that when it was eappoeedly flatplatecoDector ayetem. Tbia fiDUohed, energy billa ·were normally uea a cop- obeet bi1her afler they pat the aya­ with cop-tubea bonded to it tam in than before! and a low iron 1Jlaeo cover and Fortanately, after"the owner aluminum caoe. stopped payment on the lOIID, Normallylhebetleroneaaee it waa reworked eo lhatitfanc­ noD-peliniJ inealation and lioned proporly. blaclt cbrotile or Dietel elec­ Tbenlherearelhemacboim­ troplatedontolhecop-oheet pler breadbo" beaten which ·!0 prevent oatiJaeoiq of lhe employ a elorqe tank painted -tiq. It a1oo i8 more selec­ blaclt with a fiberrlaeo or low tive than blaclt paint. iron 1laao cover. Bat, Wlfortnnately, due to These..,...... normally are oar cold and cloudy climate, uad aoa prebeaiertolbeaiato­ aee but, qain, there i8 lhe ret bard facta, not altetcby are weD pleaoed with the per­ th.-eyotemodon'tperformae m, botwaler healer and are freeziDg problem and the -· IJtnaralilieo. Don't befooled by formance of the system. waD aelhey could. There wlhe mountedoatoidethe boue. The eonallimitetiona. Tbia eyotam aomeone promising the moon Even on a cloudy· day, they wind heat looa problem, ref1ec. muimum temporatano you uea a paeoive lhenno-eypbon - checlt it oat first. There have have never seen temperaturea teclmiqae. lioaoflightofflheiJiauoheet, could upect are about 85-96 been oome leaothan reputable leaathan115.~in lhehot radiation to the atmoopbore, ~ OD a lUDDY day. Alao There i8 a di81inct advan· aolar i.natallen working in -tertankeven lhoqblheelec­ candacliODandCODveclionlhro­ due to fleezing problema, aa t&le in putting a aolar eyotem Alaolta. lric element& are not tamed in, but watch your iDa&aller UIJh lhe udaed air" apace and the ayotam Ia mounted oatoide, A good aoarce of informa· on. Tbi8 in iteelfteolifieo to lhe aboorption ~ it i8 a eeaaoaaJ ayotam for U cuefally and checlt him out efficiency of the ayslem. lhoroqbly. · lion is the etete Divioion of Normally a flat plateayotam monlhe in Alaolta. lnYBitmeDtawbicblumdleolhe Another ayotam employe a A1ao due to oilr hazy 11111l. To make a long atory abort, uea a nontozic propylane1Jly• 5 Percent State Eneru Loan when yon loot for a solar .,... colanlifreae oyotam that baa flatplatecoDeclormountedbe­ condiliona, you should gat the qbeot efficiency eyatam on. Program. They are locate( in tam to work in Alaelte -check lhe potenliel of tarDiDg acidic low a breadbo" healer.~ the Frontier Baildm, at 3601 ayotemo are good·f!Jl' ~ !he market. Sbopand compare, oat the record. See ifit will-· andar otegnalion conditione CSt. form ae is claimed - slick to aadlhereforeoboald be checked · Another good aoarce i8 the high efficiency and jaat be­ and changed periodiCally or cause it worka in Colorado or corroolon could occur. put cuotomere of the part!ca. 1ar inetaller. HopefaUy, they Washington doeen't mean it Anolherintenolingeolaropo wiD wort in Alaolta. lion i8 a !henna! diode coDec­ wiD be able to teD you length of torwhichemployofnon,ailher inetaUation, bidden coote, re­ Don't .,.pect mach perfor­ in ·a eealed flat plate coUector liabiity of inetaUer, coat aav· mance in December and Jan· oruinaoyoteminAncborqe iD.p,etc. aary ••• and always have a wbicb uea a compreaoor to An eumple of a good work· bacltap ayatem that wiD work pamplhefnontolhecollectoro. inr evacuated tube oyotami8 a u thOugh there were no solar The date OD lb-e)'OtemaW gepdeoic dome home in Palmer eyatem a taU (unleaa, ofcoarse, oketeby at beat, and unfortu­ you don't need hot water for nately there io no aipificant ~=:.:.:t!~r:!::; ohowen,etc.). dataiJalheredutoactaalcoet 10andalooareptlingaptoll Shop around and compare aavinle one would aspect and bonn of apace beat on a aanny anddon'tforptlhet.axcredito the reliability of lhe oyateiDL day with only about 6-7 .boaro (buineao and pereonal) along Hapefally there wiD be moni of apace beat on a cloudy day. with the etete'a 5 pemmt lOIID information plhered on the program that make these ayo. Mary Siah lhennal diode­ Tbia i8 a 2,400 oq. ft. home employiniJ 117 oq. ft. of coDec­ tema all lhe more attractive to collecton later lhi8 year. reduce yoar eneru billa. When cboooiniJ a particalar tan.ltwwor!tingwaUinuceao ayotam for parcbaoe lhinp to oflheSUIIJIIUtercomp-ran • Solar eneru i8 a viable opo walichforinclodeatraclnecord AboNiaana...... of ...... ,._lftllleMMy­ (which i8 normally a coneer­ lion for many Alaakane-cbeclt olyoarinetaUeruanownerof IOiaro'-tenlr. valiveealimate)andtbeowaero it oat and you wiD-· r

CRITIQUEING SUSITNA HYDRO Report finds two flaws with Susitna ByT.D. BBOWNE Project" wen examined. eulate a ·•present value" of the Decision, London, Prentice.. torical utility bills are not taken BROWNE, BORTZ & "In addition, a June 1983 c:oets. of each alternative. /Hall International, 1978, p. into account in the update. CODDINGTON,INC. Paul Weir Co. report, two 1983 Financial analysis, poses the 15) Sunk Coat: Expanlion will reports by Burna & McDonnell question, "Can the requited occur to the Railbelt genera· The Coal Operaton and for Chugach Electric Asaocia· repayment obligation be met?... SUiitna revenues are over· tion system between now and Alaoka I •eeholderarequeeted lion, the 1981 Battelle report · (Principle• of Engineering stated. When revenues are 1993. As reported on p. 5-6, it Ia a critique of cartain upecte of "Railbelt Electric Asaociation, EconomU!a, Grant and Ireson, overstated, other sources, such anticipated that the Bradley the "Suitna HydroeleCtric the 1981 Battelle report "Rail· p. 458). Thne, if a project looks as the Stete of Alaska, will be Late Hydroelectric Project (90 Project Economic and Finan· beltEiec:tricPDW11l'Alternativeo favorableinthelong-runinan called upon to eervice debt or MW ofgeneretingcepacity and cia! Update," a clreft report Stlldy,"theHarza·Ebuco"Es· economic eeDH, but. cannot aelit in meeting varied finan· 347 GWh of average annual dated Feb. 'Jf1, 191M and pre­ cial obligationo. The beaic energy) and the· Grant Late pared by the· Alaeka Power n.-in therevenueeetinteteo Project (7 MW and 25 GWh) Authority. "Coal is the bridge to Alaska's are: will be operational. Capital It was their· belief that tbU • The price per unit of elec· investment in th- projects report, along with cartain aer­ tricity Ia too high; re-ts a aunt coot. lier nperte, have improparly resource development future." anaiyzeclcartain economic and • Sunk coete, or prior capital Mention ia also mede about financial conaideratione re­ - Ralph Stefano. inveotment, in eotabliahed tbeconlideration ofFairbanks lated to the Suitna Project. generating capacity are largely Municipal Utilities System adding a 25-30 MW cogenera­ Following an examination of ecutiveSIIIIUDaryofEconomic generate aufficient revenue to ignored. the Draft Report and other and Financial Update" pob­ cover ita debt in the abort-run, • Exiating power oourcea in tion unit toreplacetbreeCbena docaments. I abare their COD· liabed in September 1983, and. 1996 are given little conlidera­ Units. Further, Chugach Elec­ it will fail. tric Asaociation ..... reported - tbeJanaaryl!IIHWilliamKent To be totally 1111CC8Ufol, a tion;and, There are two basic theoreti· and Co. publication were ccln· to be atodying the feasibility of projectahould be economically • Exceuivepowerlareported adding a 34 NW and 80 MW calfla-intheanalyeee.Fint, liclered. The auiatance of the efficient in the long·run and to be solei. the revenue eetimetee have Alaoka Power Authority -t­ combustion turbin... None of meet its abort-term financing the above units are included in been . oventated. When reve- ly aided thia procea; ·it ia needa. If only one of then Price: Tbeapplicetionofa20 nueo fail to meet expectation, appreciated. queotione ia anewered affirm. pereent premium in price over the 1993 generation capacity. anothereource offunde will be ,Two typee of analyeee are atively, then the project will the thermal coot ofenergyia in Baaed upon the "Power called upon to meet variou· normallyappliedtbenevaluat­ moet likaly fail. direct conflict with the Sep­ Supply Planning etudy," Burna financial obqatione. ing alternativee: economicll,lld When a substantial otate tember 1983 Harza-Ebaaco­ &McDonnell,November1983, Second, the important Ben• financial. The Sulitna update financial aublidy ia requited "EzecutiveSummeryofE~ the Chugach expansion ap­ fit/Coet ~J¥Cl ratio ia not as utiliua both techniquee. to mate the Su.oitna Project nomic and Financial Update," peere to be needed in the short · eetfortb;ttuactaallyasCoetl· Fint, an economic analylie viable, ~ecoetoaooociated with p. 31, where a fint year elec­ term. In any event, a large,· Coet ratio that bae almoet no looks at the qu.. tion, ''ia the tbU ouhlidy abould be part of tricity coot equals the non· divenifiedgeneretioncapacity value in project evaluation. projectecouomicallyefllcient?" the economic compar'.aon of Sulitna elternetive. A premium will be present to supply the Thi• etatement . briefty dia- or limpler, "will it pay in the alternativu. pricelanotrationalwhenprior market before and after the cuaoed th-two....,.._ long run?" The report eum· inv-ents, and oupply and­ Su.oitna Project ia opentional. REVENUES demand att conlidered. BACKGROUND inu coal fired, gao fired, and This capacity re-ts a Beyond the document cited hydroelectric generating al· Revenues 11n a by iaeue in It ia acknowledged that one aunt coat from prior capital aboVe, other report. were re- ternativeo. the e!7aluation of the Suitna mightergue.thatahigherprice · inveetment; it would be unus­ viewed to eecure additioital The cbeapeet alternative in Project.Tbeezpectednven­ today will permit lower future ual to cliacard it or place a aul>­ background. For example, each yqr ia uaed to ietabliab mut be utimeted &om the price.. However, Conaumera atantial portion in renrve on eeveral volumeeofthe"Appli· the ealie price for the hydro very beginning of the project. could have a difticult time the day· Watana produce• cation for Licenee for Major alternative in the early yean. (Levy and Samat, C11pital accepting tbU rationale when power. Project Suitna HJdroeleetrie Then the nporte go on to cal- 111111fat,..,.,t. and Financial -l>liahed capacity and m. Continued on Page 7

- oiMoy 14, 1111U ALAIICA'8-..oY-PaQe7

Caat:IRed INa Page 8 More power ia eold than An examination of revenue analyeia conducted in the Bld8l;iq (1888) generated; tbU error also re­ requirements tenda to combine update ia Dot a - Benefit/. Power a-.­ eults in inftated revenue - the elements of the economic CoR analylie. BUilth 8.15 tm»Yidn the jectlona. analylie along with the finan.. P. 6-2 provid.. the following .•••l• for &he followla• Another notswortby com· cia! analyaia. When revenue formula for creating a Bene­ ft..- pariaon can be mede when requirements are Do& minim- fitleo.t (BIC) ratio: pnducliaallcm.fromExhihi& 3.6 are placed alide the energy !!!! !!!!!!U !!!!!!!! generation data N& forth in lHJ .. ,,. Exhibits 7.3 and 7.4 The latter data are uaed to illutrate the .... •••12 ··­... ,, _.,._per kWh. lHI Ia a llitnatlon where filred The definitione that follow _..ofteapndominaterather tliia formula clearly indicats ltH ··-1,715 ··­.. .,. than qriabJe ...... lnftation tlia& the above ratio ia really a 1H7 1,111 of the output eetimets can Coetleo.t ratio; as etated; it ....-~ower- than actQ.. bae a relatiyely -ninglew .... l,IIJ ··­ ally apply. Tbe-pertWhia role in tbU repart. 1Ht l,i:ao •••u ~'llllllen&atsdoiace Whileoaecandellaethe­ ··­ the --tion ftpru uaed to difl"elace between - 81..... 1,172 eelbnatsenergycoetefar...... nativee as "benefit" and con- alatsd~. . dact ncb an analylie it do. - ··- no& provide the....,.infonna. Wat•n• -"Ill' -au... tion .. a - Benefitleo.t ibbibu J.SI l&hlLl£ 7.3 • 7.i) analylie. SUIDIARY 4,530 Based .._ tba above con­ 2,t40. 4,601 llideiatione, i&ia8111111U1ed that therevenuellideoftheSuitna 2,970 4,611 Hydroelectric Projeet be _,.. amined in order to baUer 2,9t5 4,767 aJIIIftCiate the full atent of future financial ohllptiODL J,024 4,145 Pllrtber, a properBonfitleo.t ratio woald be a helpful tech­ men- m..- be -blialted nique for J110iect evaluatioa. to fbtance the Suitnal'roject; The input of a "third party" tbU.nvenue flow ia not­ would be one approach to_. en& to the aten& augguled in uring realiatic revenue fore­ the February 1984 Draft caets as well as meaniDcfuJ Benefitleo.t ratioe. a:=-PIT/COST RATIO 0.... technique that ia fie. quctlyappliedtoan.bze.. Your capitalintenliveprojectaia the Subsc:•ription Benefit/CoR ratio. When it ia properly utilized it can be a Is <\Jist A meaniDcful method for ...... iningaltemativeo. TbeSuitna Phont.• Call Project could belieft& &om a careful uamination of the Away benefits related to the coetj of 243-1513 the JIIOiect. Unfadaaataly_tba •.. PHASE1 Volume1

Findings and Analysis

Volume II

Inventory of 011, Gas, Coal, Hydroelectric and Uranium Resources

PHASE.2 ...... , Volume 1 .._...... Beluga Coal District Analysts __...... __ - ...... Volume II ------.._.. ... Hydroelectric Development ., _.,...... ,.----.,.,___, ______Volume Ill ... .__...... Alternate Energy Systems ...... ------Note: See also Tables of Content Coming C...,.fl(iA...,._~....,.__JIIa.----··-_, of Part I, II, llf and IV Energy .,...... ,....,.,., ...... _ _ .....,, ...... ,...., .. Supplements ...... _. -- ,...., ...,...... ,..,.,,..,...... ill in June: _,.,...,._.,,...... ,...... ~., . ..,.,...... ,__ .,.. .. ,._iiiiMAIIDil'...,._u616w_,..,.....,....,...... ,_,.,_,.. Oil ...,...... ,.,.,.__ _.,...... , -...... ~...... , ...... - For Energy SolutiQns... ·call GDbert/Commonwealth Not onlv solutions, but technological and engineering· supPort to aid SIOU in implementing new or alternatille poW. generating ...... Gilbert/CommOnwealth has !Jean aolvD,g enersv problems for utilities and induatry for eMil' seventy-five years. • Our staff of Professiolal engineers in Seattle and Anchorage prcMdes a wide ra19 of daisn and sup­ port lllvicel ror both 1arge and sma0 enersv related projec:ta. . Our raJ9 of power ensineeliii!J expertise c:Ouen: • Generation planping • F4lillibility lludies· • FIMnCilll Planning • Complete• power clel9t services • Construc:tion management • Startup and operations • QA evaluations ----~---- Wliatever your need, Gilbert/Commonwealth's staff ol power enginee~ing specialists is her, .' help you. Give us a caD: Seattle Operations Center Alaska Operations 11400 S.E. 6th Street 3601 "C" Street Be11ewe, WA 98004 Anchorage, AK 99:583 (206)~ (907) 562.()625 Energy programs at Rubicon BJ' KURT 8. DZINICB Lqiala&1lnl 1a1W to a~ to allow it to complete U... havins entered unknown rataa in the early,...... which ·TbereillaPDeral.,.,_ riate tile fallUIIOIUit &beD all projecte already· uder con· -ten! were not only not "cheap" bat AIDOIIS tile intereeted ae weD projecte to· include Watana Mraction. By 1983, it wu ~miq ectnaUy hisherthan theulet­ cleu' the projecta would have lq thermal altarnadvel The &;ual~~~tt: bi'!~~== toN:;:t!"l:.t":!:=: to b8 completed uinlr bond. pioblemwufalther...-bat­ eeema to have reached ite laet paint ill cnclal becaaeelt maintain the conetruction financiq and that tile debt ad by lower than predicted oil Rubicon. In cmler to better contraclicte tile wiclelJ' bald echedale and complete the aervice woald reaalt in power COntiDuecl on ....e 10 anclentand the -te in llliecollceptiOD tilet eomehow projecte. favorof,orqainetcrouinsit. Watana or Saoitna maid be Th• • ' 1 •b I it wowd ~~e worthwhile to bailm·;_~a~,.iftileclaaeewut.ft ~=:::d~:·.:: IS ISSUe S COn fl U OfS briefly auJnbuo how and why -~ 1 -.- we arrived here in the lint lfth-hydropowerprojeete :.~--::-:~';;.~ Machoftilematerialinthie mation,articleeandintarviewe place. . bad been completed aeiJIIroalJ' belief that withoat them APA montll'a eMriY --- for thie aection were: Daetomolllllinlr&aetration state -te, &beD lhe _.. wwklbeanabletoeecarebond clal ill from the five Alaeka Ralph StefBDo, Stefano &: with the pece at which the tent wholeeale power rate llllancinc needed to continue RecionalEIIOIIIYllemaftoel'laft. Aaaocietaa Inc. Federal GovemJ1181lt wu de- woaldhavebeoncheepbecaaee _,_.develo-t. ninsProject(ARERPP)volum- Kurt Daillich, aenior advi· velopins Alaeka'a abUIIciallt lbrhydzapowwprajectetbecoet ,.._. • releued in 1977 (Phaee I) eor, Alaaka State l.elielatare. 8ftl!r!D'--hydiOJIOWIIL' offael !a uro, and the coat of Becaaee oil~ -edll and·1980 ll'haeell). · P81D Root. Ener'l'ech. in particalar- thelepalamre operation and maintnana le beincf-.eted tocontinaeto Project leader wae Dr. Gene WllliantNoli,SaneelAlaaka created tbe Alaska Power verylow. . rlaa,noonapvemacheeriou Rutledp,whoillcompilincthe Corp. authority in 1976. The perception by the..,... thoalrhttotileimpactthiedebt "Alaeka's En"''IY Raao....,.." Tom G&De&ich, EnerSun. AS 44.83.010 clearly apeUed ...... ,.. wae tilet it wae thiil eervice wu IIOiq to have on aeriaa for the Aluko Jo..nu.I out leclaladve findinp and in :heap power that ·they - the power rataa. · of Co,.,.,.. Alaska Solar Auoclation eseence ateted the policy of the trains to receive upon the com· Farther, there wucondnued Other project members were Gerald W. Hu&trer, Repub- State to be the redw:tion of pledonofthevariouprojecte. hopathatthel.eillalaturewoald D. Lane, who worked on the lic Geo'l'bermallnc. coft81l1Derpowercoate,achieve- By early 1982, it became appropriale more funds later project fulldme, and W. Me- Da!e Brooke,. Enersy ment of lowest reaaonable apparent that tile Admlnatra· thereby eliminatins or sub- ·Conkey, C. Quinlan, G. Edb- Houe. power coate, and encourqe- tion woald not requeetand the etandallydecreaeins the debt 1om and M.,Rohm. .. Alaska Power Authority ment of beneficial loq·term lecialamre would not approp, ·eerv~ce. We continued ·eteam· Auiatiqwiththeupdateby Steve Jon.. , Popo Atria economic crowth. riate aaftlcient faacle to APA lq alfall epaed ahead deepite providiq photos and infor- Solar. The purpose of APA wae to , . . · anceplan, andconstruct. operate acquire, power pro-fin· 1r------~------·' jecta in aupport of thoae 1etr1a- I · :;'!i:.ly mandated policy and I Remarks By Due to lack of enthuaiaem, I slowpro-andcleardirec-1 tion with which the State I ERNEST ESPENSHIED administration was imple- I mendns the lecialeted coala Alaska Exploration Manager and policies, theLet!ielamrein I 1981 took the leaderahip and 1 eatabliahed the E'n"''IY Pro- 1 Chevron U~S.A. - Western Region cram for Alaeka to be admin· .I iatered by the APA. At that time, the Lqielature I was intendins to conetntct hydropower and other rea­ uwhat Makes An Uneconomic Field Profitable?, able reaource power projeC:te uains oil revenaea and 100 To percent &tete equity f1lndiq (direct appropriadona) ae a maane of inveatins in ...... Alaska Support Industry Alliance thins that woald be tanpble and of benefit to pneradone 2, offamre Alaakana. Anchorage Alaska- March 1985 Ofco-. theywoald beaeft& only if they choae to continue livinlr in thie -t lawl. The leclele~damonetratedeoar- • Our ability to improve the recovery .and productivity of many -· vieion and leaderahip in creadq thie procram becaaee marginal fields in the has been spectacularly impressive over itcoaldhavebeenmacheuier u.s. and more apodiant to epend the last 15years. As an example, I would like to point outthe very the...,...,.._,.._ in many of their successful methods of steam stimulation and fracture stimulation It ill worthwhile to conei4er here in little more detail one of numerous fields in California, particularly those fields which part of that 1981 lecleletion which became rather contro­ vereial - that aection beiq have low gravity oil, shallow production ant! low productivity, As AS44.83.398. Tbiaaectiotldaalt an example, I can point out a Chevron le0$e .in the San Joaquin with aale of power from power 1 projecta and amons itecriteria 1 contained the provision that if Valley that wa.S' very marginally productive in the late 1960's at 200 the leclalature did not approp­ riate at least S5 billion to the barrels a dayand recently has been produCing up to 4, 000 barrels : power development fund by JUly 1, 1986 (in 1983 amewled a day as a result of enhanced recoverY through steam drive~ Oil· I to July 1, 1991) then the APA wholeaele poWer rate would recovery has increased from,less than 10% of the oil in place to . have to include a retam anna· greater thqn 30%. · ally to the state equal to 10 ( percent of the state equity in the procram to that date. Stated simply, all crante woald be con.,ned into 1oane • Chevron last year successfully bid on and purchased several leases ""'luirinc . 10 pe~C~Dt annual return. .. in the Beaufort Sea in water depths of up to.175ft. ·The state of So-hat 1IDiairly thie proo my wisdom and knowledge in the late 1970's did not Include the viaon tile Suitna~::..=- claaee.. or Sim!tnaequityclaaee. Unfairly foresight that mobile arctic drilling structures similar to the CIDS becaue if thel.elielatore had in fact appropriated ·$5 billion currently being used in the Beaufort Sea would allow economic drill­ into the fund by 1986 then we · coald have bailt or acquired ing and production in water depths greater than 50 or 6qJt. and forcaehSolomoaGulch,S­ Lalle, Tyee Lake~ Terror Lake, provide protection from severe ice conditions. · Bradley LalleandWatanadam phaee of the Suitna project :!tedll have had_, t.ft ~ • tile o~~~er haDd, tile L ••• •••••••••••••••••••••••••••••••••••••••• • .1 ... .r :~ .. Ccm&luaed lnna Pap 8 of evaluting tliree related erie. · magic black bo:o:ea for obtain­ '!'hOBO pricea ue beyond our meet the financial and risk price ini:reUO. U.d decreUed .8ria- marbtability, afforda. ing the answer. DeciaiOn will ·control. · criteria. A load growth, and in addition bility anddeairability. Market- require judgment and a viaion The four-dam pool problem While the S60 million Green increaaed coata for Tyee. ability refen to the fact that of a better future. mut be aolved before the end Lake project haa been touted Ia it pouible to have an eco­ the product, in tbia cue elec· Where do we go from here? of thio legialetive eesaion and by the critics of the ettel'IIY IIOJIIicallyfeasibleproject that tricity, mast be competitive There ia no doubt that hydrop­ in line with thelegialativegoalo programaaaneumpleofhow -uld-be financially feasi­ with the nut beat alternative owerrepreaentathebeatmeane and policiea outlined earlier. a amall community could build ble? Ia there a difference evenintheinitialyeareofpro- of generating aubatantial The etate haa the option of a good size project better than between the two terma? The ject operation. amount& of electricity - an starting to collect back ita the atate, the facta ue that anawer to bnth qaeationa ia ' U that ia not the cue, there enel'IIY form of today, tomor­ equity in Phaae II, and ceJ.' Sitka received over $9 million ,yea. . will be Uttle incentive. for the row and beyond. tainly in Pbaae m. in etate granta and an addi­ Economic feaaibility of a utilitiea to aign power Ale When. generated by nonpol· tional $15 million loan at only projectia determined by calcu­ -.menta thereby making luting and renewable reeour­ Whether to collect or not, 4 percent intereet. It ia doubt­ latinlf the benefit& and coata revenue bond financing diffi. ceo such aa water, wind and and what the amount should ful whether Green Lake would u:pectedfromconatructingthat cult if nnt impouible. sun, electricity represent& the be ia a major policy decision have been financially feasible project. U the life cycle benef. It ia clear that Pbaae I rates beat aaaurance of not polluting thatahould be made only after · without tbia etate aaaiatance. ita aceed the life cycle coata, m.ut be lltructllred in ouch aa anddamagingourenvironment acarefulaaaeaamentofthefull The fact remeina that APA then typically it iuaid that waa aa to be acceptable to the while at the same time provid· implicetiona or the deciaion can obtain the moat favorable the BIC (benefit coat ratio) ia conaumenwhoaremachmore ing u with the meana to conaidering such tbinga aa financing terma and therefore greater than one and that the intereeted about now rather enhance. the quality of life of state's revenue needs, cost of should be able to offer the low­ projectiaeconomicallyfeuible. than 10, 20 or 50 yeare into the the reaidenta while improving alternativea, conaervetion, etc. eetposaiblerates. Thetwomein Becaue the life cycle (eoc­ future. . their meana ofeaming aliveli- It ia important to remember raaaona for that ue that, firat nomic life) of a hydropower One way to aaaure market&· hood. that one of the major raaaona APA (and thereby the etate) project ia normally taken aa bility in Pbaae I it by provid· -Aa·we become m.ore' depend· for J;re8ting APA waa to be aaaumea moat if nnt all of the being 50 yean, and given the ingstateequitywhichleadauo entoftherenewablereaourcee' able to finance projects, atleaat riab, and aecond APA will natureofconatantannualdebt to the queation of affordabil· we would alao become inc:rea&­ in part, by. aelling revenue continue to increase ita ufin. aervice nnlting from the uu­ ity. Stated simply, how mach inglymaatereofourownfuture honda which the communitiea ancial maaa" aa additional ally available revenne bond state equity will be required to aa we became 1- dependent themaelvea were not able to do projects are built and added to achemea (lib a bonae mort­ auaremarbtablepowerin the on non-renewable thermalfuela beceuae of not being able to theayatem. gage), it ia eaay to-that the This ufinancial masa" is hydropower rates ue goinlf to :r.!!f years of project opera- 1-U~ti-::li-ty_e_x_e_c_u_t~iv_e_s_d_r-ea_d_n_o-th_i_n_g_m_o-re_t_h_a_n_a_' critical aa it to aome extent be higheet in the early yean Aa the equity requirement replaces the financial advan­ when the ue ia the lo-i.e. increaoea the affordability self righteous customer sttutting into the of:... tages atemming from an inter­ eaaentially fixed coata opread decreaaea. The oituation ia fice thumping his chest demand the utility connected power ayatem(a), over fewer KWHa oold. · ouch aa found in the lower 48. Unfortonately, tbia ia when i::h!':!.~~~~~u!!:r; kneel down and graciously give him trouble- It ia therefore in the beet the conaumero pre alao moat $20,000 per year then moot free interconnectioin (for hls electric power- intereat of all Alaskans that aenaitive to rate increaaea - likely you could not qualify to producij'lg alternafive energy effort). If ·you the enel'IIY program be COD· eepeciallyiftbere areleaocoatly tinned with the atate building ahort-termalt.enlativeo.Itcoald ::::.;:J!::.:>=:a":'..;:.~ want a fight, there is no better way to find one. and owning the facilitiea ther­ beoaidthataalongaatheaftll The deairability criteria re- "Strike a balance. You are making a reaso- eby aaauming the financial between curvea A· and C in preoenta the final and probe. nable request and you should not be intimi- riab and·obtaining loweetcoat Phaaeiia...... U.thanthearea lOIUIL between curve. A and C in ~~~.:::.,c:::;:~ dated.by the utility. But, do not be pompous. Ia our pace of. hydropower Pbaae II and III. then theB/C it involved. prioriti:o:ing alid The utility is not there to. serve your interests development too faat? will begreaterthanoneforthe chciooingamongmanycompet- alone. Interconnection is a· business transac- ·The Bradley Lake and Snet­ hydro aolution. ingand~whileprogramo t' d l'k tiaham projects were finally It should be noted that the _ many more than funda to JOn an , 1 e any other, it can be handled in a authorized byCongreeain 1962, B/C ratio ia calculated with­ aapportthemalL · cordial manner." baaedonatudieainitiatedyean out conaidering any State earlier. Snettiaham went into equity or aubmdy. 6~:!t":i.!~=~.,!!;;£ -"Wind energy," by PAUL GIPE intitial commercial operation Financial feuibilitycoaaiata the beholder. There are .no Stackpole Books Con&luued on Page 11

WHk of May 14, 191U ALASICA'SINIIIGY RUOUACI!I P-11

Ccm&bnaed lnna Pqe 10 be oome criticiam. When Snet­ in late 1973 while Bradley ia . tiaham waa being conatracted now in the FERC licanaing n1llllllioaaqnerieo wereiecelved ... Typical Diesel vs. Hydro Costs and deaign otago aa a State queationing the need for all project. that energy and e:o:preaeing The Suaitna project atudiea concern that 'coat i:ncreaees w.reinitiated by the Bureau of -uld double the rate from 11eclamaponover30yeareago. about 0. 75 eenta/KWH! (The Phenl Ph-Il PU..IIl In tlut 1f&Otl, the Bureau con­ current rate ia 2.5 cents/KWH ducted on-lite geotechnical and inclndea deferred intereet inveatigationa. Sabaeqaently, ch8rgea ..-well .. the cciat of darilqr the 1970., the Corpe of relocating a portion of the Engineer• conducted moro t:ranamiMion !ina.) comprehenaive and detailed The queatioa i., "Do we ete invutiationa concliullna plan for the abort term (5 to 10 uound 197!1 that the Watana yean) or for the long term?" (B) aite waa auitaUe or an earth The pl.anning horizon ia'criti· -·-·-·-·-·-·- Hydro (C) fill dam and"" Devil Canyon cal becauae it practically - eta for a concrete ~rr&vitl' or determinea the 'beat oolution. i udldam. For eumple, if our planning The current Eldual,. plant horizon ia abort term, than the ~ Hydro 0 A M Only (D) waa atadied by the B~u of obviouoolution to the Ancho­ ~------Reclamationinl948 d went raga!Railbelt electricity needa on !ina, at what mut conai­ ia gaa generation. ·~o~-----,-.~-----~------~-----.~J~-4D------~-o------,.----~ daredalightaningpace,in1955! Ofco-. whowillbearound Given that hydropower baa to anawer qaeationa when the demonstrated a long record­ "cheap" lfU runs out or the TlmelnYeera over 50 years - of producing gaa pricea increaae dramati- . cheap or low coat and otably cally dne to oil aapply inter­ priced electricity in Alaab .. ruption or·. general price in- 1 . wallaa the Lower48, and J!iven creaaea? · ' : . . -1. J)u«"'~ &.. 1 "" ·~·l~Ee' ~... ,_., ...... ,. loh"bft ~,...... :...... ,....,.,~ ,...... that it ia a wall known mature • What ia in it' forjlle Buh ~.,,.,. "'"...... ,....., I ~·'IW ...E .... ~ "a;4: ...... 'D• ... ._... 1 taclmoloiY,dOBiitmabaenae communitiea who are iaolated f«t,CI!; 4 0...... 1\... M"!!L ..... f"ll-.nrc:t IITU.o1'9•TIOM , thot it abould require 80me 10 and not lucky enough to have or 20 more yean to develop hydro or. other renewable re­ Z. J>vcl~o~c. &..w :1 M- '88<... 0 IIICOI!!.Ulii"-Y ,_. ' - ...... _ ..,.. ,_ ...._ ,_.;. a hydropower project when W. oourcea? For .the foreaeMble £1&"'--IIY-.. Ma ltrldiiiii6.D Jill..l-=a> """'"'... T'\e ... "'Qc ...... ~ ~ tileD ... .-,.._.. were able to p~t a man on the fature, dieMI generation will mOoD in 1-than 10 yeara? remain u .the moat practical ...... I! X. 'lie .....,... ~ .tltll/r fti.I..WCTtM4- '" ll:ofut, ·liACIC ..,...... , ...... ,.,.~ ~,_ ~ ~ ~---~ While no one ·ia advocating anawer~ ...... , ...... ,._ •llllt"'''!., ...... . mindleaa development baaed .That meana we ohoul4 """" ...... ~-~~- .... --~ NC-·D ,_T_ -· · on inaafficient lmalyaia and tinne to atrive t.. impro't the data, it ia clear that moat ailf· efficieney --..._ (I) abort run and the riab are in ordlir to mab the. rates borne moatly byth-who fol­ between the urban and blllh 4- (0~\JMfttC't. C"O~IN£. 'TO 1!'& ...... 4"- ,.. Ztl&.aiEqTtte.:!f"MML o....now "uUt low in our foot stope; areaacomparable,andalwaya PJcf'll4tCat<"'E C"OM'I"Uhi"U."'' IIIC'CEAt.lHG- a-....sC AiM'~!.$ ...... _,,.,_ {6). To be oure there will alwaya Coll&iuaed OD Page 12 ,_,.12 AUIICA'S ENUGY RUOUIICU-ol May 14, 1111U

lnt.nlew wH11 Boyd J. Brown- In tidal power is itecoet. Very lleld,-AIMflan Inc., An- preliminarylnveetiptionlndi· c11e1n1ge oil "TTUU ,._,.. cate8,pvm aauitableeonvm· ticmal byclropower oite In the Q: Before we 11t11n, pve -. the coat of developinc u aiiUie llllekpoaad oa wouldpJObablybethelllllllllae &lletldUpowerexperie- tidal power. ID temuo of oar -... of Acree AlllericaD. local feel tidal A: Acne bae been Involved power·-tioll, of eqaal output- ._ In tidal power for rome time KDik AnD coald coat on the or+------aow, primarily in CBJUU!a. order fo 6().80 pen:eat of that --IILL- There are aalimited areae In foreonvmticmalclevelopmeat. I., the world where tidal pow. Tbia Ia aa eDemel:v ....,d -- caa be tapped; that,olcoane, point.Nooaentallybaea....,d beiDa thOM wit){ aafficieat haadle on the ecoaomica of tidal ac1ioa to warraatcoaoid· tidal po,.. here In Cook IDiet ...tioa. Other tbaa oar study ~-therebae-bema ofoarowaCookJ'aletiDAiuka, detailed aaalyeia. We caaaot .. ,,,, . Acne· C!IJ!dacted a .,_,. lup belia to llllrio.Wy coaolder or -...... -tof tidal power In ~~!"~~~~-=t!'ottil~te the Bay of Fuady, Nova Sc:o- ,.... - "' tia. Wenmadeteiledatadyln apecific coata are atebUihed 1988aadjaatnceaUyapdated Acne,lnoarprelimiaary._ ,.,....,.. 17 it, aboat 19'1'7...... ,t,dewlopeda-alflc· _ .... I'Nj_ Q: Je tidal power a viable ania but they ,...coaftDecl by opdoa ill Alaaka? the commiaolon of oar lltad7. c.a•••• A: Yoa bet it lei However it ID fact they probably -ta :-.:."C::"r!.~= !::....~.:~ -· =:~-~-.. - ...... s... . is baeed on the tidee aad the are they detailed IIIIOIIIh to be '------,....----..:______J nnltaathydraalicbaeditcaa abuiafordecioiOD. Thent~~~e however,attbie.tepJ·-w lliODa UO.t a eaaawaJ'/tl• aetloatotbat? pJOdace.Simplified,aethetide other oipificaat ienee .aach dee! with the --'a. · dal power facllit)- -- A: Cleatilta a tidal power comee In through a banaae. it· aetheeaviroameatelimJIIIC&e; Q:Tbenlluheellclt.u- KDlk Ani. What'e )'0111' re- Coatiaaad oa Pqe13 rubapthebumbehlnd.~ ~------~---...... ~--~-~ the IIIUiatam tidal heicht Ia -~J'::.i."' o:.-a: tide drops aafficieaUy below the water level of the baeia, low head tarblne rates 1118 opaaed aad besiD to _...te power off the hydraalic baed until the level of the tide apo proachee the bum level aad KEEPING A' ASKANS therateaaredoeecl,thealaieee are thea opeaed lo belia the ..,.,... again. Withtbiaoaecaareadilyaee thatticlalpoweriniteoimpleet form Ia oa-agaia, off-111111in by WARM I.NTO THE aatun. n is .. nliable .. the tidee collliq In aad aoiDir oat bat a«K a coatiaaou IIOIII'Ce of power. Therearewayatomake it coatiaaoae each ae pomped st.orap, compreNed alorap 11st CENTURY aad a doable bum arraara- meat. Theee optioaa aeed spa- cial aite coaclitioaa aad, of courae, quickly drive ap the costa. ENSTAR Natural Gas Company .has signed two contracts ensuring at Q: How aboat the -1 A: The major problem I aee least 470 billion cubic feet of gas will be flowing our way in the future. To transport the gas from the Beluga field to Anchorage; w~re building a • Energy plan 105-mile pipeline, guaranteeing jobs for Alaskans and natural gas energy to can be made to work ... keep our homes warm into the next century. Coatlaaed from Paaelt Energy today. Energy for future days.- At ENSTAR, we're committed to l:ioa. Looldag Into the 19908 . aad clecreaeiag &tete oil ...... the future of Alaska. eaaea, thefaadiagorthepower coat aeaiataace PIOIJr&ID coald be obtelned from a JDiDimal IIDidtarpoa alleledricity sold b:vAPA . la811JD111817, whilethe8111111D' J1111118111 for AlaaJra baeatomb­ led ~- 1>1 the chaagee made In the 1114tbod of fiaaac. iq the - pJOjecte, the PIOIJr&ID caa be made to work. aad it Ia In the beet IODtJ·term ENSTAR ia-alallAiaekaaalomake it o:""decioicnf maken man =:.~t.~ decioioaa each ae th- who paJChaeed ~ from Rae­ lie; who built the\ripelille, aad who pot the 1D8D Oil the mooD. While they will a«K.beebleto ._pe all cril:iciam a:ow, their coaaolationcoald be the Jmow. ENSTAR Natural Gas Company, 3000 Spenard Road, P.O. BOX 6288 ledp that tea yeare after pro­ jed complel:ion. they will be Anchoratre. Alaska .99502 praised aeleaden aad mea of viaioa -· and IDight evea ..._fallt ...... lhoaldthere 'be aaotber oil priee criaia liJre the lee& ia the 19'10e. Week of lllq 14, IIIIU ALAIKA'S ENERGY RI!IOURCES Pogo 13 • Planning for tidal makes good long-range $ense :,::k ·. ,_., ContiDaed from Page 12 op11181lt of hydropower. How· barrap and desipiu.g it to ever, this really ilm't an addi­ ~ ...... iDclade a c:roaaiDa baa been a tiona! requhemmt because if ,;+-.-...... matter of diecuaaion for some done correctly, PERC would .;r,...,...o.ua time.Webrieflyaddreeaeclitin uaethnameEISthatacrou- ! '---''o.f""--.._ -IIOIXI'IU-11111111 oar_,entandlthinkit'a ing would requhe. lnveaf:ip· tI a eaperidea. There areothen, tiona would become' moze in-~1 however, who do not thinkitie volved.u more ieeoee are add· a good idea primarily becaaee reseed; but, this doee not JI8Co they JNII"'!ive tidal power u eaeari1y indicate a •--• hindering rapid development eeement. It would be a moze I of a croeaing. There are two intenoe one. pointe 1 would make-· Onetbinaieforcertein,ifwe • this: are to eeriouly coui4er tidal "'f Firet, creating a project power with a erouiq, to pro­ which would ultimately pro- coed with a erouiq witluiat ~-aerouiqandtidalpower regard to tidal power and then , •.,. 1G-18 ,. emart loiii·I'BIIP p1aDuiDg determine we really wanted -TidolPrQoct in my book, at least 11Dtil we both down the pike would be Cook J•1et ayetematically clet.emjiJle one clieutmuaNOWiethetimeto ofthetwonottobeinthebeot make that clecielou, ·we may !J!!O.!IC! ..., !I !!!lUI' _, •-,_.., ""''-'"'.....,.,...,, Ttdol ,._ •!!!dr· loug-nuigeintereeteof.Ancho- alraadybetoolate. -·~1m. · rage. The bigpat oppoeition •Thuec:ondpoint,and·one L------~------~------' -me to beonaofaperceived CODIUICtedtoiiCOilOIIIicoo,iethat and-'Babout$2billloD.Let'e u.tthemf 5people.A "wild"liReaatimate delay of a Cl

JOHN GRAHAM COMPANY (ALASKA) INC.

MidtoWll Plaza BuildiDg, Suite 202, 471 West 36th A venue, Anchorage, A/ash 99503~ (907) 561-4010

. "':

ARCHITIICT& • • ,_ 14 ALASKA'S ENIRGY RISOURCU WHk of Moy 14, 1111U Heat/cool is big userofenergy I Each yeer 20 percent of the aollally, &Om 2,000 doWil to RadiantODefiiYpuaeethrouch Double glazinc permits aun­ aulation, not all of the energy natio11'a energy ia used to heat . 500 Btliperaquarefoot JMI'day the collector'alayer(a) of claz­ licht to enter the eollectOr but reaching the eollector can be and cool homeo - more than &om June to December. Fac­ inc and ia abaorbed by a metal limits the reradiation ofODftiY traneferred to the fluid( Collec­ that in Aluka. , ton ouch u cloud cover and. plate. &om the metal plate. The ab­ ton typically operata at efll­ Solar energy ia an alterna­ l(eOil'llphical...,.tiOJlaffectthe Heat energy io traneferred eorber plate of a eollector ia cienciea raqine &om 30-00 tive for healinc and coolin.c amount of IDlar eneri!Y receiv~ from the plate to a workinc aioo painted or plated to aboorb percent. . that can reduce the nation'• eeL At uichtfall, ao1ar energy fluid(wataror air) being circu­ the maximum enercY and re­ All averace home requirea dependence on foaeil fuels Ud drope to o Btu per square foot. lated throuch thecollectortub­ tard reradiation of ODefiiY. 500-700 square feet of c»llector their increuillc priceo. While aolar radiation ia uni­ ea; The working fluid carrieo lllaulation at the back of the depenclillc on efficiency,IIIC&­ The federal guvemment ia veroally available, it ia a clif­ off heat for immediate uae ill collector retarda energy 1011 tion, orient~t.tioi:l, area and. lay· npportincdemollltrationpro­ fuea form of energy requiriDi the healinc oyetem or for ator­ there. Despite double glazinc, out of the hoaae and energy jectoacroea theeountrytoetim­ 1-collectioll ...... _ Qetlinc ap. aelectiveplatecoalincaandill- eoDOerrinc faaturea. ulate the eommercialization of the moot &om aolar. enercJ' reuonablyprioed 8lld reliable requireaputlingtogetheraey• oolar heatillg and coolinc IIY• tem tocolleCtJow.eoncintratioll lema. IDlar energy efficient!,: and to Each day, the oun delivera •tore heat ·energy to W18. at Splendid on looks. an average of 1,400 Btu per llicht iand on. cloudy daya. square foot to the U.S. All area The- collector ·aboorbe. the theequivalentofa 1,000 square IUD'a radiant energy 8lld trau­ foot boWie receiveo 511 million fen the energy, ill the form of haat, a which Stingy on energy Btu a year. to medium c:8n But oolar enef!IY variea -- proVide heat ·to .the hou,..

The nistic elegance of a Undal Other optional features Uke Polar ~Home has Some uety practical Aoors. Polar Walls and Polar Cap advantages too. Besides its natural beau· RoofS can make aUndal Home even ADIIIIIIAUY ISLAND ty, cedar helps keep you wann in the stingier on energy. winter and cool in the summer. Naturally. Come visit us for the full story I..mdal Hames have other features on the beautiful and practical ad· buih·in to keep energy consumption and vantages of cedar. Or, send $5 costs down. Our unique cavity-wall for our 58-page color design and ,standard thennal Win·· Planbook. It offers a gener· ·cic)wS give you an added ous look at lindal bmrier against ihe Cedar Homes. ~outside.

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~- SCAU·TUDS A IIIRDIII GEDIR RimES"' Independently distribuled by Alaska Cedar Homes. Inc. FI91N 10.19 I 8113 Jewel Lake Road Anchorage, Alaska 99502 • 243-3328 Proposed Tl411 '"-'-' ...... I .: 0 Enclosed is $5 for Plan book and Design Guide

I Name • Tidal power and the Cook Inlet I Street Co11tinued from Pace 13 dealt with now. Waitinc ia I 0ty · . State ___ Zip I long lead time for development tacit admiuion to eliminate It I~ Location or building 1ot I in Cook Inlet. However, this io for all practical~ not to say that a Knik Croo• L------~------~~ ingwillnottakealongtimeuwell. I can recall there were -~-• oome people several years aco: actively talking of a croaing in three yean. That, I didll't believe would happe11 ... 8lld it didn't! • Tidal power will brine Oil· lite employment to a level of ALTERNATIVE ENERGY ENGINEERS 1,900-2,500peopleforaboutl0. years with an addftiolial off- ~. lite employment of aoo-coo ·. . · people. . . •Theredoeonotappeartobe polarconsult alaska, inc. any recuJatory requinments or eonatrainto which would 'Clade tidal.Power develop. ENGINEERS • ARCHITECTS • ENERGY CONSULTANTS mr 't. Obviodly liloremut be • Depeuclillc upon the lite specializing In energy conservation systems picked~ 900 MW to 1,500 MW of · donenet plant in thiaarea.· caP4itY eould be ~...·. . cFeveloped. · • More detailed analyoie 8lld ..ork mut be accomplilhed to 2735 EAST TUDOR ROAD • SUITE 201 • ANCHORAGE, ALASKA99507 mme tidal power potential. PHONE (907) 561-1933 • TELEX 26708 PCA AHG . theTheoearecertainlynotallof eoncluoioDO of the atudy • · and it went illto eouoiderilbly more depth than we've cliecue- '"' oed'· I believe it actually orent

a eoneideration, it muot be < :L~!:~:a:;:e1t~ .· ·.·.·.· ...... "... ·------~ ~· Week of Moy 14, IIIIU ALASKA'S ENERGY RESOURCES Pagel5 APA files Susitna application The Aluka Power Author· extended time period and be the economic feasibility of the initial CQst of energy from that the Susitna project is eco­ ity baa filed for a Federal the moot reoiotant to in11ation. project. Thelicenoeapplication, Suoitna is competitive with the nomically feasible and can · EneriY Replatory Collllllia­ An addendum to that report as supplemented, was accepted coot of energy from the least provide long-term benefits over ..,(PERC)liceDaeto­ noted that there had been a by the FERC on July 29, 1983. cost non.Susitna alternative. the non.Susitna alternatives. udoperatetheSuaitnahydro­ decline in world oil priceo dur­ FERC io presently estimat­ If REA or tax exempt financ­ In order to compare the electzic: project. The Suaitna ing the period from January ing that the license could be ing cannot be made available, Suoitna and non.fiusitna al· JIIOjectwoulcl play a major role tbrou1h March, 1982. issued in March 1987. This the state's equity contribution tematives, the long-term costa illmMtingthefutureelec:trical Although theoe lower world schedule includes 20 months will have to be increased and benefits of the projects clemancl of the AlaokaD RaiJ. oil prices would make the for Need for Po.wer and Envir· • Major changes in cconom~ differ considerably from tiler· belt, where over 70 pen:ent of Suaitna project leas attractive onmentaVDam Safety Hear· icoand ill load projections could mal projects such as gao and the&ate'opopolatioac:arrenlly economically, the addendum ingo. change the anticipated coot coal-fired generation. · ...... concluded that the Suoitna Economic and Financial savings of the Suaitna project. A hydroelectric project is · Previou Studin project still was the beat means Update Draft Report Lower world oil pricu, lower characterized by high front­ of meeting the Railbelt'o long· Concurrent with FERC's energy demand, higher con­ end construction costa, low A U.S. Bureau of Reclama· term power requirements. directive to addrese the 1983 struction coste or higher inter· operating costs, and a useful &ion reconnaiaaance atudy The Suaitna hydroelectric reduction in world oil priceo, eat rates could reduce project life of·so years or more, while completed ill 1948 firot identi· project FERC license applica· the Power Authority Board of feasibility. Conversely, higher thermal plants generally have · &eel the hydroelectric potential tion was · prepared based on DirectoroinotructedthePower world oil prices, higher con· lower front end costa, high of the Suaitna River Baoia. A data developed in the feasibil· Authority otaff to prepare a struction CIJ8t8 or higher inter· operating costa, and a life 25 to . project feuibility otudy wao ity and· project alternatives complete "update" report on est rates could reduce project 30years. completed by the Bureau in studies and, with IAgislative the economic and financial feasibility. Conversely, higher. The coot of power from a 1961. It recommended a &ve authorization, was filed with feasibility of the project. world oil prices, higher energy hydroelectric project is rela· atap. river development plan the FERC on Februsry28,1983. The report wao to 11118 the demand, lower Susitna con· ti.¥ely insensitive to inflation be authorized by the U.S. Noting the sensitivity 9fthe moat current data on the key struction costs, lower interest once conatruction is complete, Con8reu. project's. economic feasibility economic variableo affecting rates or would increase the while the·cost of'\>ower from a . The U.S. Army Corpe of to world oil priceo. the FERC theproject'afeuibility,inclnd· Susitna project's feasibility . thermal plant increaBH as the Eqiaeere completed a com· directed the Power Authority ing world oil pricea ud the Summary fuel cost in11ates. pNhenoive feuibility study ill to refine the relevant studies in pricin1 and availability of The results of both the Over a period of time, the 1975 and recommended a two the application to reflect up-to­ alternative fuele. Suoitna feasibility study. and annual operatin1 coots of a damdevelopmentconcept. Tbio date projections of world oil Conclueions of Update the update of that study i11di· thermal plant may more than report wao updated ill 1979 prices and other sensitive data. Draft Report cate that the Railbeltelectrical offset the hi1h early capital • witho.vi!Canyonud Watana In order to provide revised energy generating capacity will coste of a hydroelectric facility. beia1 reaffirmed ao the ap­ electrical demand forecasts, the The DraftSuaitna Economic and Financial Update Report have to be increased to meet A hydroelectric project io JIIOpriate .tteo. The economic Power Authority retained Bat· projected demand. · usually developed for maximum &uibilitywaoalooreaffirmed. telle Northwest to review the was presented to the Power Authority Board of directors The limited supply of natu· utilization of the facility over Po-r Authority Studin computer-based electrical de­ ral gas in Cook Inlet and the the life of the project and may mand forecasting effort. on March 9, 1984. The Draft Panuant to a requeet from Update report concludes: projected high cost of natural have some exceas capacity in the 1960Lelialature, a detailed The effort was necessary to gas for the North Slope are the early years of operation, respond to FERC'o specific • Assuming the SHCA fore­ ·otudy of the. economic, eDii· casted world oil prices, the ""pected 10 require the Rail· while thermal plants can be Deerial'. enviromnental, and request regarding forecasting added in small incremento that methodology as well as to pro­ Suaitna project is economically belt electrical utilities to look . ftn8ncial feaoibility.of the pro-. more attractive than non.Sus­ to other energy sources for more closely match the growth ject W.. undertaken for the vide a means of periodically in power requirements. updating the project feasibili· itna alternative plano. The electrical generation. Power Authority by Acreo conotruction of the Susitna The most likely options for The Railbelt io reaching a American, Inc. ty. critical period in which in· On July 11, 1983, the Power project would result in a coot electrical power generation for · To. enoure .an iadependent creased elec~cal generation Authority complied with the oavingoof$1.06 billion(in 1983 the Railbelt appear to be either and · objective evaluation. of dollars) over the non.Suoitna the Susitna hydroelectric pro­ capacity will be required. Elec· · alternativeo, the 1960 State FERC directive and submitted trical demand in the Railbelt is .oupplemental data and an ultemativeo durinlj' the firot50 ject or a fossil fuel-based alter· r..W.ture had aloorequeeted years of operation. native. This fo..U fuel-based predicted to increase, and sev­ thatanilldependentconeultant ·electric powerdemand forecast eral utilities have publically based on a "no supply disrup­ • The construction cost est­ alternative would rely primar­ pnpere a otudy of Railbelt imates in 1983 dollars for the ily on coal-fired generation discussed problema associated et.ctricalpower altemativeo. tion" oil price forecast deve-­ With providing adequate gen· loped by Sherman H. Clark Watana and Devil Canyon after the year 2000. AccoldiDgly, the Office of phaaeo as submitted to the The Power Authority has eration to meet those projected the Governor contracted with Aoaociateo (SHCA), a firm needs. opecializin1 ill oil price fore­ FERC are $3.8 and $1.6 billion, conducted extensive engineer· Battelle Pacific Nortbwut respectively. System desilft in.. environmental, economic, The decision hydroelectric Laboratoriee, Inc. (Battello) to caoting. project or to rely upon non­ The SHCA projection wao refinements could result in a and financial feasibility stu· aaalyaud prepareaoerieoof reduction of the Watana phase dieo of both the Susitna project Susitna alternatives is one that zeporto on alternative meana adopted by the Power Author­ will be· made by the people of ity Board of Directors after costa of about $300 million. and non-Susitna alternatives. . ofmeetiileanticipated Railbelt •The electric energy demand The conclusion of these stu­ the State through their elected · eledric power demand, inclnd· extensive review of several representatives. other world oil price forecaote forecast for the Railbelt is auf· dies and of the Draft Update is · ingaf'ancli8tofe1ectricalpower ficient to absorb the entire d.nandill theRailbelttbroqh and is almoot identical to the State Department of Revenue output of the Watana phase of the Joeu 2010. . the project in 1996. The Power Authority'sotndy Forecast. (DOR) uoed in the wao completed ill April, 1982 December 1983 Department of ·Based on either of two recom­ uad coinduded "that there io a Revenue, Petroleum Reven~e mended financing options, hi1h probability that develop­ Forecast. about $2 billion (1983 dollars) ment of the hydroelectric The electrical demand fore­ in state equity and rate stsbil· poteDtial of the Suaitna Baoia caat of a 2.8 percent increaoe ization fund contribution• Will woald.provide lliiDificant mot per year incorporated the ef· be required for the total pro­ 8dvan~ when compared to fecto of world oil priceo as fore­ ject. These contributions are alternative meane of meeting caat by SHCA and supported necessary to ensure that the p.ojected Railbelt power d• llll&llda. •· 'n On Apri126, 1982 the Power Altern·ative energy is on move Authority Board of Directors forwanled their recommend&· By PAM RoOT ing period. In moot caaes dem· the vulnerability ofbusiaeoses the next legiolative sesaion is ti.,.,. to the Govemor and the TheotateofAlaokaisfinally onatratic:tn projects were too based primarily on state-funded now. We must push for incen­ Lelialature concernin1 the starting to move again in the small to have any silnificant programs. It's very important tive programs, a corporate en· future· development of the direction qf developin1 alter· economic value to the people to get a)temative energy into ergy tax credit, and acceler­ Suitna project. The Board's native en~ and conserva· they· served, and there was no the open market, under real ated depreciation allowances­ recommendations were: tion programo. Altholilh .no incentive to maintain the in­ economic influences and make all the mechanisms that fuel •ThePower Authorityehould real progreoo baa made il1 ti\io stallation or even to assume it Ieos subject to the whimo of development Outside:· · ·continue~natruction dev· leiiolative Be88ion, a number ownership. government. The Native corporations must recognize the potential elopmental efforts of the Su­ of proposals have been put for· This hao to change if alter· Alternative energy busin... itna project; should learn to view the for local control of enefiY ward that hold real promioe. native energy ia to become a eo • The IAplature should for next year. marketplace as a way to nor­ oourceo through private devel· reality in Alaska. Decliniag oil opment, not state ouhllidiea. authorize the Power Authority The. otate io 1unia~ toward reeervea mean lesa money for maliZe their activities, creat­ . to aabmit a FERC licenoe measures thet would encour. ing a veoted illtereot io Aia. State funds can be spent on the otate to opend on reoearch knockiag down institutional ~tionud, age private illveetment in Ill· and development projects. ka'a energy,picture. • The fAiiolature should ternative energy projecf:8 and The techonolgy is ready; .it's barriers, oupplementin1 utility appiOpriate additional fund& At the same time, privately reliable, it'savailableand there buy back rates; land acquioi· io -kiagto minimize ito ri¥. developed wind fanna, solar tion and a hoot of other prob­ for the continuation .and in· !'I'd~ ito limited cai}- are skilled people in Alaska mini-utilitiee and other iluch ready to implement it. It io lemothatnowworktodiscour· tenaifk:ationofenvironmental ttal. ' Jf a&udiee, llite exploration, and projects Outeide are proving wilrthy of a marketplace teat. qe project developers. Many of the oiate'o previous altemativeenergytechnologieo . The role of the otate should We can create a symbiotic laitiation of project deeip. efforte ill alternative energy are indeed mainstream tech· be to encoura~& a favorable blend of public and private Bued on the Board'• recom· were ouly partially aucc:eosful. mendation, the IAplature nologies, as attractive ta pri­ economic climate for such pro­ financial that can put money They demonotrated the paten· vate illveotment as oil and gas jects. It can do this tbrougli in the ri1ht place and greatly authorized funda for the con· tial of appropriatetechno!Qiies tinaation of ~notruction developmsnt and able to make . taxiDcentives,moreaggreaaive illcrease the cbanceo .of ouc· ouch ao wind power and waste use of the same inveetment enforcement of federal regula­ cesoful projects. activitiee on the Suaitna pro­ heat recovery. ject. vehicles. tion (l.Dd by looking at altema· Pam Root ;. tM owMr of In ite Dicember 1982 report, But the atate wao unable to AU of this holds great paten· tiveenergyasalegitimatepart EnerTech Alaska, a wind iya· Battelloconduded the Suaitna maintain equipment, keep it tial for those ofua ill the ihduB­ of the mix of energy technolo­ tem dealership. SM luu b«n project would provide the low· operatin1 and carry the pro­ try. The demias of the Energy gies to Alaska. tJCtive in alter1Uitive en.ergyof­ eet coat of power over an jects beyqnd the initiul fund· Audit pro,gram demonatrated The time to start working on fairo for tM ptJJit four years. Alaska coal has oriental future By BILL NOLL occaional journalist - theee Suneel Alaaka were the Weetamera who...,.. "East is Eaat, and West is broqht to tha Eaat'• doorstep Weat," etarta the old KipJiua by command, choice or wca· homily. No doubt, our frieud tion. Kudyerd would be very 11111' But,ah, thedi1femu:etoday. prieed at the regularity with Don,t we aU Jmow, even ill oar which Eut and West meet o- outpoat here in Aluka, today. that lle&t contacta now aiat But .Kipliq'o East wu that which couldn't have been of the MoiUIICh of the Sea, tha dreamed ofbefore?TheSecoDd Britiah Empile in full panoply. World ·war, thell tha Konen Mancalay, Calcutta, Now CDJdlict, thell Vietnam-three Delhi, Sina'apore, Hoq Kane violeat epiaodee broqht miJ. - they ...,.. tha Eut. Weeb lioua into dinct contact with and montha ...,.. nquind for thaEut. IDUild-triptrawlandCOIIIIDIICe ~IIIICCIIIive.-ationa between thole far.fluq a& of AmeriaDa learned penon­ ~andtha--of ally ahout tha moll& iniimata . homL at~Creta of aeveral Eaatam Without oatellite-aaiated natlona. And, durinl th­ television, telephone and tela, tralllll8ticand trqicii!Cbaqo with the~- oonfined ea. the But a1ao leerned.. to the contenta of tha moll& The ...... oaiallaldeamay rec:eutly arrived diopatcbea, etill appear buy to the~ amall wonda that East and riana. Not ....,..... tbM hu Weetmi!Jbt-meetformoet paaaed for the. -.lemice to of the 19th century world. have pined tha clarity that A Weetamer, to meet a anotharftfty-maybriq. member of the Eutern rae. There is that certain middJe. on their home turf, Dlll'IUlly diatance, •that iukicht .... had to make a concerted effort pective tn.... which beautlfal D..,.._...... tiMIMMM or be a part of a larpr force art and welkppnciated JU. makinl that effort. toey is heat viewed. The bllllineeamen ofthatday c..am..im, ...thaot~.-haad, would make the journey, aloq - to enjoy ratha c'­ with tha ehipa, captains, ui· quartara. And not only tha Jon. tradenandothamemben COIDDierce of war fita that. of the merchant's retinue. deacription. Nobility or 10vemment mem· The full apec&rum oftrada is bere were also taeked with.per­ written by banda which Ilea& aonally oveneeinlr new dom­ each otha. Oftom arapplina inion•, accountiD• for new like wriat·wreatlere, often char,ee and intarfacinl with wieldin, aubtle -pona of new neighbon. diplOIDeC)', Eutern and w .. Soldiere and prieata, the em partlcipanta in the dance

l'aflei8ALAIICA'SI!IIDGY- -o1AIIy14,11114 • The ins and outs of the orie.nt Continued from Pa1elT to have many of them. thedancerithemaelveeexperi· 3.Mr.andMra.Johneoahave IDCL aupriee dinner IOI8ta duriq Oddly, it aeema. many ob­ the middle of the week. They aervere of the tradin1 ritoala would Durmally ahopcuefully hear atran1e rhytbma and for hotb quality and price, aa huten to warn potential dane­ they do when ahoppilaa on era ofroqh daya ahead nnda ...... _However,aincehoth tha aJM>tlilht on the 1YD1J18o of the Johneona work. They siam floor. ThaoryZ, they will don'thavethetbM. Therefore, murmur. Decision by concen· theyatopatthefoodltoremoet ...., they will mutter. hpeda conVODient to their route from loqdaciaion period andma:yba work to home. There they buy no deal at the end, they will what they need to enllltain safely- their eveniq'a peste. The Before continoiu1, it will be Johnaona are conteut with inatruclive to indulp in tha their aclione. meaninl of aeveral common The relatioaehipe w­ acenarioa involviq the· bali· Alaakan .._and trad­ neea of buYinl and aelliq. iq partnera in the Far But 1. Mr. and Mra. Jonee have bear aome important aimiJari. decided to buy a car. They tise to th-aimpleatory-linee. ahop carefully, atodYinl the AlthOlllh our amaD populao offera made by many deaJer. tlon ia a...... ,._. of the­ ehiPL tha apecificationa and mal array olretail and ind­ qualitiea of the care are com­ trial prod,., .our eepouaed pared, aa alit the pricee. Even­ viewaare to broadea 0111'.,.,... tually, at their o- pace, Mr. ~buethroqhanincreue ud Mn. Jonee make their in a iaDp of a;port actlvitise. decision, baaed on their ~ · Th.e activitlea ue primar- beetintareata. One caraellais ily iD the eali8fied, the other an not. The timber, fiah, --·area:oil ..... coal and Jonee are IIlith ealiafied. niinerala. Tourism is an added, 2. Mr. and Mra. Smith oWn a ~-ofactivity. emalletorewhii:haellawomen'e Relatinl to our earlier - clothee. They wprkhard atock· narioa, then, Mr. and Mra. iqtheiratoreWjbclothaathey Alaaka .... in the ah-of the think will be pilpular. Pricinl Smith a ofator:r (2) They want ia very important to the to aell. From the Alaakan fam. Smiths, because they know i& ily'a point of view, their bu:r· isimportanttoth~ era. includin1 th-In tha Far by careful etockina' and pric. Eaat, .... tha Mr. and Mra. in1, they are selective ahout Jonea of atoey (1). how they market their IIOOda. Tl1le to life, the Far Eutern But they are notaelectiveahout familiaa ahop cuefully for tha aellin1. The Smitha will aell to beetval-inqualityandprice. any and all buyen. They hope They make their bQinl Uci- W- of ~y 14, 1984 ALASICA'S ENERGY AEIOURCIS PogfJ,19 Photovoltaics:· ·how good in Alaska The queetion often an-ao typically etronger in winter ley Park coneiota of twelve 35- 0.7; Feb-1.63; Mar. 2.93; etc. 15VDC. Tbia lowers the field to bow wall residential photo­ than in aummer, an integrated ·-ttand twelve37-wattoingle Average-· or load, varieo c:ummt allowing a 3-4 Amp voltaic (PV} aystema -rk in generation system ofPVa and cryetel type modules. An av· from 2.93 KWH/day in mid charge in a 5-6 mph wind. Alaska. and bow much elec­ a wind energy convereion aye­ erage inoolation level of 2.5 llUDIDer to 1.73 KWH/day in The annual average wind tricity they can produce. Thia tam (WECS) makeo for a loli· KWH/aq. meter/day will sup­ midwinter(wbenthe&.zeria apeedia5.8mpb,howeverdur­ article provides a technical cal combination, in addition to ply aU the electricity required turned off). The PV ayotam ia, in1J last November when the cliacuuion of oome of the fac. promoting ayotam reliability. for the home. integrated with a wind eneqnr · average inoolation wao 0. 78 tors to be coneidered, and cl.­ Actnil1 WorldaiJ 8-y8tenl Actaa1 inoolation averatres conversion oystem conaiot;ing .KWHIM2/day the average cribee the aystem inHalled by The PV array inote1lad at are u followe: of a 1939Jacobo32VDC1800 wind speed wu 7.77 mph. It the author at bia home in the author'• home in McKin· Month(KWHIM2/day)Jan.- watt machine derated to Continued on Pqe 20 McKinley Park, and evaluable ita performance. Tedmical Conalderatioaa The perfonn&DCe ofphtovol· • Dealing with the Far Eastern buyer taic modulea ia dependent on inlolationlevela.Atinoolation Continued from Pap 18 Alloft&.e,...bleawcanbe ka'o ability to ..U in the Far ...... -. levelaoflOOmilli-u./aquare When a buyar from the Far nmmed up in the word,...,.. Eaat markela. . · With therecoveryofl983lit­ centimeter end tll!npera- Eaat loob at what he bao to latione. ID thia fnlatratinc · For, if Alaekan ...... ,t tie comfort came to the miner· of 25 d-C, the peri'onn- pay fi>r an item, he bao to look miaama are fonnd the quota offidala or buaineumencould ale and timber departmenta. anceofmoatPVmoduleelllll8tll not only at the price lfut the aysteme, the primary·proceee- packapourplentifulcrudeOn lronically,oilandgaoremained manufactutoft'upecificationa. rateofucbaqe. Thelllnqth iniJ rulee, land - _pe, aloqwithoarother...... ,.., regulation-Jocked,holdingthem Atinlolationlevelnuder50. of the U.S. dollar - aU environmmtel coneiderati- -michtmoreeaoilyovercome 11-Y from the otabilized and milliwatta/aq. em. end temper- other world C1ll'NDCieo _... end maCh more. · · the otherobotaclesattacbed to growth marketaofthe Far Ean. a-otherthan25d-C, that the oft-ehon bnyar of Allofthemarethe-end our-. AnotherofRudyardKipling'a lheperfonnancec:harac&elialic Alaekan ..,..U bae to epend daqhtara of lawa conceived. . Tbattheoub'.... of-'--'-- poema condemned the word, of PV modulee vary JIIUtly, moreofbialoc,ialC1111811C'Yper- for the public pod, ID that ,_.. ..._ "if," ao one of the Addeat in even for different modele by dollar, per unit,pven that the they perform a pod, they wiD oar ail for· aport to the Far lhe Englioh language. That . -"11--.. ,_ ___.. ...,__ Eaot bae been temporarily admonition _ _._,.,_~--din•, theaameman..r.cturer. "price"appearatheoame. JIIIIVm _W_,... __ ....._,_..in w~ ... ,_ _._D does ~oWUIIIOWUI e IDMcKinleyPark,atypical Thia,ofco,...,ia_acroee replatioaa are peraiWd to ...,._ -- if.Mr.andMra.Alaabareto eintJle cryete1 type 37 -tt the entire United Stable end uveoV.tlivecltheiruefu1nea. not cbaup the buic raalitiee oucceecl in· increaoing their mAmodulHe ~ :'dverage( a12bout1~-.5) bae.. ~edth_e JI!Bin ca~~-a theyW"thwiD ~didruckb• d~ :'!ahi!., ~nch~ .='~ =-Y into·thdoemFoarreEthaet,an p- o...., ay at vo-. con-a noemour...... ,.tm . 1 ou. ou.,...... , are that.theYmuotbeengagedand .!i'if.!":. from mid. February to mid internationaltndo,deopiteour ftiiQlationo, which now el

Page 20 ALASICA'S IENIRQY RESOUIICU WHir of Moy 14, 1984 Center is best solar use example B:rTEDMOORE in the health centar ia fitted critaria for what ia known ao of fiberglaae. The flat boilt-np Finally the whole - Perhepe the beet eumple of with an-ticaUy operated ouperinoulation, the above roofcontaino4\!oincbeeofrilid ia eet oeverel feet into the the application ofpaoeive oolar inoulated curtain walla. Temp- gnodewaUoareofdoublemetal inoulation. grooud, and additional earth and energy efficient design erature oenoora near the glaao otodconotruclioncontaininiJ a The north aida of the boild· ia bermed up along the north techniques to inotitutional· activata the curtian opening total of9\!o inchesoffiberglaao in1J containo no windowa, and oideto make ita partially earth /COIIIIlllldaluchi-.ein the mechaniom when the temper- baU'inoubltion for an R-val"" only a f- relatively omaU obeltered building. Anchorage area ia the Ancho- ature rioeo above a predeter- . of32. Pre-ino!llated metal waD windowo ware inote1lad on the According to information rage Neighborhood Health mined level, end then..,_ penela ueed for onderior ehea· eat IIDd west oideo. All win- npplied by Don Bantz, aecu· Center. · theprocedarowhen &he temper- thiniJ bring the total R-veiDe dowo are of double pane COD• tive Director of the health cen- The 13,000 aq. ft. twp otory atorefallaqainintheevening. upto34. otruclion,IIDCI theeUtend west ter, the oolar featureo and health facility,located at 1217 Below ...... the wan. con- wiudowobaveinteriorinoulat- additioaalinoulationraioed the Larp brightly painted -- oiatof12inchblocbfunedout E. lOth Ave. wao cleoigned by pOeed dacte were inote1lad to inc ebuuer.. Th-are manu- coot of the balldiniJ $55,000 the localucbitei:tural firm of on the inoicle with metal ltndo ally operated to allow light to circulate hot air from the oolar 3\!o inches Continued on Pqe 21 Jameo Dalton Clark. It - collection areu to every room end inouJated with entardaring daylicht houra. coutructedin1981atacootof of the health centar. These are S2 million,largelycominiJfrom integratedwiththehotairducU State and Municipal grante. fromthecaaventioaalgaoflred Whet-thiabuildingapart furnace which p10videe the • Residential photovoltaic use from virtually every other primary oource of ~t for the Continaed floa Pqe 18 mal-electric 1Jenerator. ~le and reliable. F.or bniding. . Tbiaunit-eho.nbeca- example, we left the aytam for commm:ial end inotitotional reqairao a 7.5 mph average otnu:ture in Anchorage ia ita it makeo.no noiae and bae a 30 a five week vocation in mid Unfortunately the lana in- windepeecl to power the~ year deoip life. Wute heat, a wintar 1983-84, and returned cleoign, which ia both aeethefi. etelled to circulate the oolar entinly from the wind. caDy appealing IIDd eneqnr beatedairbavepooventobeoo "T·productofthia 8ystem,- to find the batteriea fully I II efllcien&. The combination of the two Vldee heat for the houe when charpd end DO problema. noiaay that they are tamed Off aystema often carries the 1oM in-tion We feel we have demon· ~:n The moat prominent vina1 moat of the time; natural con- when neither one could alone. Electric ...... allowing 7 otrated the viability ofelectric- I' feature ia the vertical claao vectionianowtheprimaryheat For eample, on Feb. 8, 1984: dayoa-om:r,iaprovided by ity from altamative 10-. tijFI face of the oolar courtyard on transfer ...... niem A MCOD• Accumulatedinoolation- a2660AH12VDC&at8yblmk, Weconoerve,butdon'theveto the oouth oide of the building. dary air circulation .,-, 1.82KWHIM2 with AC power provided by a ekimp. We believe thia aystem I·~jill' Thia8 foot wide by 50 foot long ~tated for frequent air PV prodaction wao 0.89 1000 -tt line -ve inverter. iacooteffectivecompared with two lloryroom ia iaolated from cb-in a medical facility, KWH. 1''11 Con&rola include au-tie other available options over ll:ftl!l thereetofthe~bya transfer aida in the heat from Averagewbidopeeclwao2.86 load dlllllpe to prevent OVH- the life of the Vllriou com- brownpeinledCIIIICNtebloekwoiL the oolar heiotcollection- KWH. cbaqing, automatiC load cfia. ponente. .111 Wind...... ,._l.OOKWH. The eolar courtyard ia de-· connecta end an an-tie About ~he .Aathor 111' The oolar ~can W Total Production wu 1.89 oigned to act ao a form of vented directly ontoide to - KWH •. atan-updevicefortheheek-up Steplwn Jo-• is tlw owner : ~1111:' Trombe wall, both collecting ofPopoAgMSolor,e~distributor vent esceui.ve heat' build-up Ctortopreventnceuive 'H~ and otoiing the san's beet for during the a-, the inn- Total CODIIIlllpQOD wao1.56 wdown: The battery bank of p#wtoJJoltaic equipiiU!nt, aee when needed in thereat of KWH. ia float-charged, end typical ,ill' lated curtaina are kept clooed (Stronger wiudo typi'cany be~sed in McKjnley PArk, the buildiniJ. In adclition to the darinc these timea •. - cyclee the batteries 5 per- Aluk H".. co...,..ny ary~plin oolar courtyard, two rowe of ariae betw- 411Dd 6 PM) cent dall:r and 15 percent plwtoJJOltiJic modulu nitatk by ',., the10ath facing aimocoopeare lMo inunediately obviou, The inteplted oyatem - annoaUy. /iJJe diffnmt 1n1111U(tU:tunn, mounted on the niof, provid· but undoubtedly of JIIUter ·duceclaU bat18.74 KWH of the The overall cleoip lifo of the Gnd IJI.o •uppU.a perfol'm4m:e ing both light and eolar beet laotinglligniticanceareoeveral electricity required for the aystem ia 25 yearo, end the monitorin.g iutrumenta irae d,eep within the building. building fea- cJ.iped to houae durinc the paat 1-2 total coot wao $30,000. The eluding amp·ll.our meter•, muimileeaerv...... wtion. DIODtba. The ~WU piO- aystem, which -.begun in UNJtt-lwur IIU!terll Gnd p:yro- All oftlie oouth facing glaao While not quite fitting the ducecl by a propene tired thft. 1978 bae proven to be both -... Week of May 14, 191U ALASKA'S ENERGY RI!IOURCU ,._ Zf • Low gas ·Energy "Roadmap" prices-hurt Comprehensive_ Energy Planning Elements payback of photovoltaic Continued fn»m Pqe 20 abovet.hatofaeonventionally Colli WliMI deaiined building of tbe II&IIUI (11-) size. The.fint year·oaviup ill Wood Other boating eoata went eetimated to be 13,161. Thia. nlativeb' low initial payback ia attributable to tbe artificially low coR of natural gaa ill the Anchorage - at Decommlulon/Recl-tlon the preeent lime. As tbe fQel eoata inevitably increaee, the fuel coR oaviup will beeo,.. ever more· oiJnlificant._ . Deaign featuree to~ 8I181'ID' eoneervation, ow:h aahea..YiD· Economic aalation, p8riial earth• ahel· Technology tering, and

YOU MISSED IT FOR 1 983 BUT ... Look at tax savings with energy credits

By LOUISA RAND your equipment moot be likely If you bought items on the or cool your principal home, or equipment Aluka Solar Ene1'13' tolaotatl-threey88N. The firatlistyoo will need to report provide electricity or hot water • wind energy equipment Ao.aciation muim- credit ia 15 pereent the detaila on form 5696 (for­ to it," for ezample: • geothermal equi~t of $2000, or $300, for such tunately one of the more • Active solar energy .,.,.. • ocean theriaal equipment You may have miaoed all the common improvement. ae: etraightforward IRS formol) tema (collecton; storage eom· Foran11pm:entenM6t: taaadvant&poofalltbemoney • cauldng :md weatheretrip­ Thia will aok you other qo­ ponenta, heat exchangers, • certain hydroelectric BeD· you -ntlaatyear. Ifyou had pillg tiona, such u; wu your home eontrol devices) erating equipment boulht tbe right things for the largely eompleted by April20, · • Passive solar energy ey• Fora 10 pereentcredit: right · reaaono, the Federal • energy efficient lornace bomero 1977? (It moot have been to tema (illclodingsolariumo, bot • biom8a equipment -.gycnditoeoaldhaveoaved qualify) Did you receive any theoo moot meet IRS criteria • automatic energy eontral you up to $4,300 aa an individ· • energy efficient flue dam­ aubeidized grantoorloano since for paaaive solar enern equip­ eynemo oal, and many items that pen 1978? (If so, they don't eoont ment, and mlllit-ooeroomaare • modificationo nbetitoting amount lor b...m- • automatic oethock thermo­ toward you m.u1m- aeore of frowned upon) 211 percent of oil or po uoap A taa credit ia a lovely ph• otato $300) • wind energy converaion with ren-ble 8I181'ID' nomenon which Iande on your oyotema for_ residential ooe • equipinent related to alta­ taa liability at thelaat minute AlaM Solar Erutrn Auoeiationiru:. •labor eoata . nata enet'ID'. ench aa h.. t ach. and red...,.. tbe final ftpre of 7'1ae AlGMo Solllr Enertn Aaoeiotion Inc. ;._,. profa­ Apin,Form5696cleterminM • certain iDtoMity bueo taaeodua. aiDnol ..--u.un tor b...... _ llllll indiuiduaJ. ;,. the your credit, which ia added to In partnerohipo (aa oppooed The fallowing checkliat can NMUJGbia eMrgy flllll coiiMI'IIGiio11 induatry Ua Ata..U. the credit from eonaervation, to eorporationo. and aole-pro­ prepare you for claiming the AKSEA'a-dtarter ia to prolltDte a {11uol'!lble·but1U... erwir­ ow:h aa the $262.60 fiPred prietorohipo) the credito are m.uim- benefit ill energy o"""'llttor MMIIHible e1Utf'6Y""" tl1lll to edtlt:ate the people abo­ clivide!l tbe paaaed on to tha taa creditll, to help you attain of AlGMo to the bcM{ita.of aut:la -. lndividualportnen.O!Mr­ t.hat certain oatiofaction of Fedara!BenewahleBnaru EdacafioMfmaetilwa ""' hefd IIIDnthly.A M1118t.fWr ia illtricata queotiono to - paJillg tbe minim- anunmt /notlueed bi"ffnthlY 11nd other •JMCilll ewlita .U.O..,.., apo,.. Creditofor&.-- of taa clollaro;·· before claimina the Federal •red. We enco..,..llll ~ perao~~a to JJGI'IieipiiN. . Buineooea, on the other bullineeo energy illveotment In Alaoka . the mdividoal For/llnherill/o1'111Gtimo,eolltlldAKSEd,otP.O.Bm<.u632, hand, can pill energy credito credit ue: How do tbe illveot­ taapayer baa · only Federal AN:IiD"'Ife 99609; onalargern-berofteclmol· ment and boaineu 8I181'ID' taa Reoidential Energy Credito to ogieo, bot at a lower pm:en· Credito affect tbe depnciation claim oiDee - ... filrtonato Haveyouboughtanyenergy taP level than~ ~tial of energy equipment? (1983 enoulh tohavenoStateincome eoneervation goodo for a new buyer can. Again, eqmpment ~newcalc1llaliono).H­ so they claim moot be new. The energy credit •hoald recovery vo. non·.. -·hFederal...... and State Energy home? (If ao. you can etart a new11Cor8fort.hathome).And, ia applied after application of covary property be -ted? Credito and Federal and State. Doyoo})avemorecreditothan tbe iD-t credit. . How ... leaaed propertieo In-t Credito. For bui· you have taa? (If.,., you JD&Y· 'I'he best 'credit opportimity' affected? How are lodBilla n- which out not eorpor&· carrytbecredittopaotorflltore ia equipment which q~eo related. booilleo- unique? tinn• the Federai'Energy and •taa-.> . ftir both tbe inv-ent taa Conoalt IRS Publication 572 ~t Credito apply. credit and the boaineu 8I181'ID' · Cor more detaila. To earn residential energy (.:redft OD Solar · iD-t credit. Buildinge credito, you moot haV. bought En....,. Equipment andlllroctoreleomponentowill Federal ReMarcJa a: the energy-related ecjuipment not earn a regular illveotment Ezperlmentotion Credito For credito on solar entr~:J ·Solar eontlll!:ton, deoigDero for your principal home, which itemo-you moot have new credit, bot may. well earn a yoomayownorrent. Vacation bollineoo energy illveotment and engilleaiilioald not.over­ "equipment which willbelillely look the credit for ''increasing homeo don't eoont. to laot five yearo. The maai· credit. The followillg itemo ·creditoon definitely qualify: IUellrCh activitieo." Eligibility m- benefit ia haeed on 40 depends on illcreaae above Co...... ,.tioli Equipment pereent of $10,000, or $4,000. For a 15 pm:ent credit: aD For thia category of credito, Thiaiaforayotemo which "h.. t • active (not paaeive) solar Contillned on Pqe 23 Us'ing the versati·lity of solar • solar tax Vlriully ~J poww 011tpat The U.S. Foreat Service of uiDc oolar enero. One credits and CIID be nppliediby co~· employa a .16-watt anay to approach invol.... concentrat­ IOW mOdaleo !into a .Oiar power a voice-radio ra-ter big lbe aUD'a ...,. onto oolar anay.Anplalorialllllllledto atop White Moi1Dtain in Cal· cella with minora or le.._. the savings \ coatrolthnoltapandel8oto ifomia.A1.7-wattanayoper- Thia.may booat tha poww of · direct it to a atoraP battery if a tea a backpack·moUDtecltwo- an iDdlvidaal aolar cell by a Coodllaecl from Pap 22 -ianqlliNcl. way radio carriecl by Foreot. factorof50ormora. tha averqe reaearch and ex· ~IOiarcellapnorated.c. Service 1u'arda patroliil1 Another approach ia a com· periDieotati.ODexpmaeill 1980, electrical eo~r~y, •a PG.wer moUDtain traila· in :lnyo Na· ·bioatioo heat-photovoltaic 1981, and1982 tax,..... CODCiidqoer 18 oeeeuary to ti.ooal Foreot iD Califomla. aolar collector that could pro­ The ciraclit amoaotl to 25 coa...nittoa.c.pcrwertomake 'ThelarpRIOiaranayever vide heat, cooliJig, and eJect. percent of ia portion of tha solar electridty coaipatable built waa the 10,000.watt Ullit ricity for an ilulividaal home. iDcieaalcl expaDcli- for a with lbe llliatiJll dlatiibuti.oo thatpowendtheSkylabapace Thia combination milht ue pilot model, computer~ .,..... in tha UDitecl Siata atati.oo, which waa pat into aa mach aa 50 parceot of tha a plaot ~ formula, in· liluy factora maat be COD· orbltio1973,andwaaoccapiecl 110lar eoeqy reachio1 the vmti.on oraimilarproperty,u by toidoNd in deoiiDiDI an.anay teama of. aatrooauta for collactor.. . 'IMll ~ aprovementl ~D exi- for a reUable 110lar power period.al"aDiiDiupto&tdaya. .ECONOIIICS .,...... ,. total number of .Inthafatare,oolarcellamay Deopifeth8}1io11118eofeJect.. 11;:.,..-:;r·ia .....w Ucl 11Mraofl1iD,aa.,;ellu....a..aJ poerate elec:lricitY U. ceotra1 ridty ie""rate.d by solar cella, adyi,ce from your taX coial!ll• c~aanpoi· in ~e aUD'a ...Pe, power plaota in a utility oft. ecoiUIIIIic8. mUiD a llllriou toot ia racomiDeDdeil.. I{ you mut be determined. . work or for inclividaal homeo barriiir to ita mo.. wideopnad havelllltalraadytakellad•!U'". A-...waathercoDcliti.oa. or bliilcliDp. A 20;, 30-foot -.ID1976,aolarcellJDOdaleo tap of thl8 craclit, it 'lrill be ill mutbecouidereci.Aloo,"-1 piUlel of IOiar cella, operati.q lllitabl8 for- oil !aDd were effect. for expelicli- made .terniD hu an iDipact-moUD· at 10 parceot efllcimcy and priced at $15 to $20 per ~ up throa&b lbe ad of 1986. taiDa and lakea affect cloud with a ~ 011tpat of 5000 watt. State lteDewable Eaercr· · i:oftr, wblch in tam idrecta tha watt. at midday in tha north· Thia 18 nbataoti.ally lower Credit& for Corporad- ..-tale of clirect and ill· eaaterD U.S., would yield an thantha$80priceilltheapace direct IIUIIliPt reachiollbe averqe of mora than 1000 pracram,wherehilherqaality Aluka corporati.ou may anay. wau. over the entire year. coatrol lltiDclarda are D..,.. caah in OD reoewable eoeru Therel8couldanblevarla· Thial8morethaneDODihto aary, becauae land-baaed expeDclituraa. The maxlmam ti.onill-.,bicallocat:icma, meetthaelactricaJpowwiUIIIda eqaipmmt:can be maiDtailled creclit 18 $1,750 (35 parceotOi bat a aolar anay will work oftheaverqehoue..Forlarpr perioclicallyandrepllindwheD $5,000). Thia 181ipncl OD pal' virtually anywhere io the ho- tha area of the piUlela · -.ry. cbaaeo. ccmatracti.OD, iData1Ja. coati.Deotal UDitec!Statea;the ~Je c:orraiiiOIIclily ill· Buteveoat$15to$20,a20x ti.oD, and labor- Ja."--rabbelocati.oDawilljaat ---- 30-foot panel of IIOW cella · .To qualify, the eqaipmeDS oeod larpr anaya. A IOiar However,itwiDplobablyoot woaldcoat$71i,OOOto$100,000. mut provide at laaat 30 per­ anay 18 rated ill ~ poww, be ecooomically attracti.ve to Whila initial coati are hilb. cent of hot watar beat or at wblchl81bewaltapitdelivera atoraelectricit)'onalarpacala ~coatlforiOiarelectric laaat 10 percent of thermal, atDoODonacl8arday. 'toproviclepowwclaJiDiporioda .,.fema would be relati.veb' electrical.arnwh•niraltlllei'D Solar anaya have been fab- of clarlmeu or when poww low. ued by tha facility. ricatld for a wide Variety of demand exceeda the· capacity There -aid be DO fuel billa, Detaila ahoald be filed on applicati.ODI where poww re- oflbeiOiarcella.Ccmaeqamtly, and the cella bave a hilh Alaaka Corporation Net fD. qm-..taareralativelyiDOCI- l>Kk-ap ooarce of electricity potmti.al for raliabllity and come Tax Forma. Schedule C IlL Solar anaya provide 50 would be oeecled. lODilife.MaiDieDancenqaire­ (available at lbe Alaaka DepL waU. to power 0.8. Coast DOEiaaleonadyiligwaya mentlanutNmeiylow.BaiD of Reveou Office. ill AocJuw. ~ baoya in Looa Ialand of combiDiDI photovoltaic for example, takeo care ·of -· 276-2678) • ...... _ CODveraiOD witholbermelhoda cleuliDitheaolarcellamfac&

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ARCTIC GLASS CO. LIBERTY GLASS 422 Arctic Blvd., Anct10rage, Alaska99562 901 E. 5th Ave., Anchorage, Alaska 99501 (907} 277-753,7 (907} 277-7537 f

ARCTIC ThermoGiass Manufacturing 704 West 26th Ave., Anchorage, Alaska 99503 (907} 277-7537

Manufacturers ofHEAT MIRROR™ OIL... 1985 UPDATE

The oil issue (Part VI) of the barrel arrived at the Valdez 1984 Alaska's Energy Resour­ terminal38 days later. ces series in the Journal of One way to obtain a quick Commerce covers the history update on the oil status in Alas­ of oil in Alaska beginning in ka is to compare oil reserves the year 1853. Russian traders from one year to the next. Data reported natural oil seeps along from the 1983 and 1984 statis­ Alaska's shoreline in that year. tical reports of the State of In 1902 ChilkatOil Company Alaska Oil and Gas Conserva­ brought in Alaska's first pro­ tion Commission are given ducing oil well at a depth of below. 366 feet at Katalla. A small Alaska oil reserves increased topping plant was constructed significantly during 1984. The in 1911 and provided gasoline, Kuparuk River Field added sig­ kerosene, distillate and diesel nificant reserves with the ad­ oil for the Kennicott copper dition of a waterflood. Two mine at McCarthy. new fields, Endicott and Lis­ The Richfield Oil Company burne, were· committed for discovered the Swanson River development. Lisburne may Field on the Kenai Moose ·start production as early as Range about 50 miles south of 1986. Endicott is scheduled for Anchorage in 1957. Without startup in late 1987 or early this important discovery many 1988. people believe that Alaska In all, these developments would not have had an eco­ boosted oil reserves by more nomic base strong enough to than one billion barrels. support statehood in 1959. *Reserve is defined as petro­ With the award of statehood leum or natural gas discovered, Alaska obtained about one defined and producible, but not hundred million acres of land yet produced. and in 1965 the State of Alaska .., A map of the oil fields in the conducted its first lease sale on Cook Inlet area is given in the the Arctic Slope. Oil was dis­ section on Natural Gas (Part covered on the Arctic Slope at IV). Prudhoe Bay in 1968. Prudhoe The marginal oil fields have Bay is the largest oil field ever been the subject of much dis­ discovered in the United States cussion in Alaska during the and the eighteenth largest in past year. While large quanti­ the world. ties of oil are known to exist in The highlight of 1977 was several locations throughout the completion of the "golden Alaska, there is real concern weld" on the trans-Alaska whether or not economic rec­ pipeline on June 20th. The first overy is possible. Estimate of Oil Reserves in Alaska Oil Field Reserves* (MM STB) • January 1, 1985 January 1, 1984 ,, Beaver Creek ··'' 1 1 Granite Point 25 27 Endicott 375 Kuparuk River 1,480 375 McArthur River 58 74 Middle Ground ShoaJ 14 15 Prudhoe Bay Oil Pool, Li!;!bume 1 219 Prudhoe Bay, Prudhoe Oil Pobl 5,812~ 6,174 Swanson River 18 22 Trading Bay 2 3 TOTAL 7,995 6,691

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PioReer Oil Field ~ervices, Inc. 349-5944 • Frontier Transportation Company M9-6474 · Frontier Equipment Company 349-5944 ·• Frontier Rock and Sand, Inc. 349-3066 ~ Alaska General Construction Company349-4438 .. Given below is ~ Prudhoe WOA and EOA of the Prudhoe million barrels of recoverable Bay update followed by some field. Those wells will be tied liquids. The reservoir also con­ . of the m~rginal fields of great into the Prudhoe production tains about 1 point 5 trillion interest to' Alaskans, including system .over the next two to cubic feet of gas in place and the oil companies, support in­ three years. about 800 billion cubic feet of dustries, trickle down compan­ Kuparuk River field: At recoverable gas reserves. ies and the person on the street the Kuparuk River field, 30 Endicott will be the first off­ receiving royalty oil perman­ miles west of Prudhoe Bay, a shore development in the Beau­ ent fund checks. second Central Production fort Sea. Production is sche­ Prudhoe Bay: Crude oil pro­ Facility went on stream in mid­ duled to begin in 1988. Grow­ duction remained steady at 1.5 October, 1984,11 weeks ahead ing to a peak of about 100,000 million barrels per day during of schedule. As a result, Kupar­ barrels of oil a day. The cost of the past year; however, a new uk production, which averaged developing this field is in excess era of development began at 114,900 gross barrels of oil per of $2 billion, or some $20,000 Prudhoe Bay in 1984 with the day during the first nine per production day barrel. startup in June of the $2 bil­ months of 1984, increased to The permits necessary to be­ lion Prudhoe Bay waterflood over 190,000 barrels per day by gin development of this field program. This program is ex­ year end, a level that is expected have been obtained and the pected to recover an additional to be maintained during 1985. work is underway. 1.1 billion gross barrels of oil. Kuparuk is the second larg­ With respect to the permit­ By yearend, waterflooding was est oil field in the United States. ting requirement, G.N. Nelson, under way in both the eastern Endicott: Endicott is located Sohio, made the following re­ and western operating areas in the Beaufort Sea. Just about marks at the April 11, 1985 of the field. To increase recov­ 20 miles from Pump Station breakfast meeting of the Re­ ery beyond that possible with Number 1 in the center of the source Development Council: waterflooding, a miscible gas Prudhoe Bay oilfield. the devel­ "You are aware, I believe, of project is scheduled to start up opment plan calls for two grav- the 4-year-plus permitting pro­ iri 1987. cess we went through, and how The project, which will affect approximately 10 percent of the field, is expected to cost some $750 million, and includes the construction of a Central Gas Facility to remove natural gas liquids from Prudhoe Bay gas. The lighter components ·will be used in the miscible gas process and the heavier natu­ ral gas liquids, initially amounting to about 40,000 gross barrels per day, will be sent througl: '::he Trans Alaska Pipeline for marketing, repre­ senting the first major com­ mercial use of the huge gas reserves on the North Slope. TRANS ALASKA Ultimately, .the project is ex­ el islands: one a main produc­ PIPELINE SYSTEM pected to recover at least 115 tion island, and the other, a million incremental gross bar­ satellite drilling island. rels of crude oil and 350 million These islands will be linked close this project came to being gross barrels of natural gas to each other, and to the shore, scrapped becauseoftheinabil­ liquids. by breached gravel causeways. ity of some of the permitting Sohio will build the WOA The average water depth at agencies to make a decision in distribution system for the mis­ tllle. island sites is 7 feet. But a timely fashion. cible injectant and facilities ,/even with this shallow water "For example, we went before for blending natural gas liq­ depth, this project will require 13 reviewing agencies in 3lev­ uids into crude oil a Pump Sta­ the placement of some 6 mil­ els of government, and we went tion 1. Modules for this project lion cubic yards of gravel for through 25 review processes will arrive on the 1986 sealift. the islands, causeways, and plus·a 2 year EIS process. We Startup · .f tl•P«P facilities is asfociated to4ds. filed 2,800 pounds of paper in sche

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McDONALD INDUSTRIES - ALASKA, INC. 7260 Homer Drive • Anchorage, Alaska 99502 907 I 344-9682 Jl "In excess of 50 people devot­ reserves for this field. Conoco's first major step to­ ed 12 man-years of effort in the The North Slope Borough ward producing oil in the Arc­ 4-plus years we were seeking has approved both the onshore tic has been achieved with the government approval to bring and offshore construction seg­ completion of an operating 100,000 barrels a day of.dom­ ments of the project, but the complex at Milne Point on the estic oil to American consum­ U.S. Army Corps of Engineers North Slope of Alaska. ers." has called for a full environ­ The Continental Pipeline Lisburne Field: The Lis­ mental study. The Corps claims· Company is a subsidiary of burne Field is a carbonate construction of a roadway into Conoco and is constructing the reservoir with an estimated Prudhoe Bay to develop the eleven and a half mile Milne three billion barrels of oil in Lisburne reservoir could affect Point Pipeline. These emplo­ place underlying Prudhoe the fishery there. yees and construction workers Bay's Sadlerochit reservoir. State officials estimate $100 were the first to move into the Field startup is scheduled for million annually will flow into new operations complex. early 1987, with production in­ the state treasury from Lis­ The new pipeline will carry creasing to about 100,000 gross burne production. the Milne Point crude oil to the barrels per day later in the Milne Point: Conoco has Kuparuk Pipeline and from year. decided to bring Milne Point there to the Trans Alaska Pipe­ ARCO Alaska has an ap­ into production. In 1986 this line. proximate 40 percent interest field will begin producing ap­ The Milne Point Pipeline is in, and will be operator of, the proximately 30,000 barrels a scheduled to be completed in Lisburne field. In 1984, the day. Milne Point is located May, 1985. Company committed to fund northeast of Kuparuk. West Sak: The West Sak its $575 million share of the Conoco, a subsidiary of the sands contain an estimated 15 initial primary development DuPont Company, will be the billion to 25 billion barrels of phase at Lisburne and added third operator on Alaska's oil in place; however, its poor 131 million barrels of proved North Slope. reservoir rock quality, shallow

VI.3 ,: . cotpotation ,,& • ~ I

GENERAL CONSTRUCTION OILFIELD SUPPORT SERVICES AUTOMOTIVE SHOP BUS AND PICKUP RENTALS CATERING AND CAMP FACILITIES AVAILABLE

PINGO·• CORPORATION 721 Sesame St. ~ P.O. Box 6271 ·. A.nchorage, Ak 99502 (907) 562-2426 . depth, and co~l. viscous . oil coniains about eight to eleven LPG, heating oil and jet fuels make it more difficult to pro­ billion barrels of oil. The oil in of this light product in the .· duce at economic rates. Ugnu has a temperature of 40 amount of about 25,500 barrels Results of a$.715 million pilot to 50 degrees Fahrenheit. This per day. . proj\!ct has been encQuraging temperature compares with 190 Since the refinery has and suggestthat, given favor" ·degrees Fahrenheit in Prudhoe "downstream" processing cap­ ableoilpriceexpectations, West Bayand 70 degrees in theWest ability with a hydrocracker and Sak could start up in the early Sak Sands. The Ugnu forma­ a reformer, the volume mix of 19908 and continue producing tion is above West Sak Sands the light products can be altered well into the 21st century. at a depth of about 2,500 to as market demands dictate. ARCO Alaska has ·an ap­ 3,000 feet. Tesoro Alaska's refined pet­ proximate 50 percent interest roleum products are currently in the field and will be operator Beaufort Sea Dry Holes being marketed in the South­ if development occurs. If this Two major disappointments central area of. Alaska, the supergiaitt.oil reservoir proves occurred in the Beaufort Sea, Railbelt and in Western Alaska . to be economic, it would help . during the past year .~. the through distributors in Dutch maintain Atlantic Richfield's Muklukdry hole and Exxon's Harbor, Dillingham and Nome. domestic production at current . dry hole northwest of Mukluk. levels well into the 1990s~ Exxon used, fot the first time' Tesoro Alaska product also Seal Island: A discovery . in (J.S: ar<;tic waters, a reusa­ reaches a variety of other cit­ made by Sh-ell Oil-Company is ble gravity drilling structure. ies and villages in Western estimated to contain approxi­ Alaska through barge deliver- mately 300 billion barrels of­ _ . 'l'~soro Refinery ies. · recoverable reserves. The loca­ Constrll.ction work on the ex­ The expansion of Tesoro Ala­ tion is in the Beaufort Sea at a pansion of the Tesoro Alaska ska's refinery is expected to w:aterdepthofaboutforty-eight refinery at· Kenai commenced help meet Alaska's demand for feet (Endicott is seven feet). .in June 1984 after the state petroleum products through the Production oflOO,OOO barrels a legislature approved a contract 1980s. day. could begin as early as for the sale of 26,000 barrels 1992...... -- per day of Alaska North Slope MAPCO Refinery Point Thompson: The field royalty crude oil to Tesoro Ala- MAPCO acquired the North is primarily gaS and no IiUlrket ska Petroleum Co. · Pole Refinery in 1981. Since for North Slope gas exists at Completion of the $93 mil­ the acquisition MAPCO has this time, · · . - . · · lion project is scheduled for invested $43.7. million in the Mikkelsen Bay: .The geol­ §eptember. The construction refinery and will complete a ogy is promising but no an­ -projectc_lirrently employs abbut $60 million dollar refinery ex­ nounced discovery of hydrocar- 1&3 people with a projected pansion in 1985. bons has been made: . . peak work force of about 300 Begim1ingin1985, MAPCO Gwyder Bay:. This unit is jobs during the summer months will be able to produce 2,000 east of.Milne Point and small .· before completion. · barrels of asphalt per day for amounts ofoil have been found The laborforce is comprised the summer construction ses­ . but no plans for development of 100 percent Alaska local sion. Later this year (1985) ba:s been announced> 'hire, Upon completion of the · ·MAPCO will complete the sec­ North Slope Ea:si: The first · construction phase,. 30 addi­ ond phase of the expansion and only well spudded in this tional permanent jobs will be which will increase the pro­ entire area is one currently added at the refinery. . duction of existing products, being drilled on land owned The expanded. facility will (military jet fuel (JP4), Com­ joi~~ly by the Kaktovik Inupiat have a refining capacity of mercial Jet A fuel, Diesel fuel Corporation · and the Arctic 80,000. barrels per stream day No. 1, Diesel/heating fuel No. . Slope · Regional Corporation. and the capability of process­ 2, Diesel Fuel No.4 and Tur­ This well is located just out­ ing 100 percerit Alaska North . bine fuel), and will produce side the boundaries of the Arc­ Slope c~ude oiL Tesoro Alaska 5,000 barrels per day of gaso­ tic National Wildiife Range. . ,,will begin receiving the 26,000 line to be sold in the Alaskan Leases on the outer continen~ barrels per day of royalty crude Interior. tal shelf in this area have just oilfrom the state on Oct. 1, A sixteen page Renergy sup­ been issued and the first dril­ 1985. . plement of the Alaska Journal ling .could occur there in the ·_ ·After completion, the Tesoro of Commerce, March 18, 1985, next year or two. Alaska refine:ry will continue · gives a history of the North

Ugnu:. . . The. -..Ugnu formation. . .. . I .. I ~o 1,prdduce ·gasoline, diesel, Pole Refinery. r

VI.4 Weare Pacific Industrial Company!

A prime contractor specializing in industrial mechanical, electrical, instrumentation, and communications construe tion for Alaska's changing economic and labor environ­ ment. Integrated Oilfield/Industrial Construction & Maintenance Services • Truckable modules and equipment packages • Fabrication • Transportation • Installation • Commissioning • Mechanical Systems • Process Piping • Equipment Installation • Electrical • Power & Lighting • Power Generation • High Voltage Transmission • Control Systems • Electrical Utility Work • Instrumentation, Installation, Calibration, Commissioning • Pneumatic • Electrical • Electronic • Business/Industrial Communications • Satellite Earth Stations • Data Transmission • Radio Systems • High Tech~Satellite Systems . .. I provide the merit shop alternative for development of Alaska's resources, backed over seventy years of corporate experience and a skilled staff of managers and superin­ dents with.. a wide variety of Alaskan service .

~ For more information CALL:. Walt Ratterman, Darrell Waters, or Jim Butcher at (907) 561-0407.

PACIFIC INDUSTRIAL COMPANY • 201 East 56th Avenue, S~ite 200, Anchorage, Alaska 9950~ ALASKA'S OIL ENERGY Part VI WRITTEN & COMPILED RESOURCES By DR. GENE RUTLEDGE ------"16 • MONEY PROBLEMS? FEDALASKA CAN HELP!

ARE YOU TRYING TO BALANCE YOUR BOOKS AGAIN? FEDALASKA OFFERS ITS MEMBERS FINANCIAL RELIEF. WE HAVE A VARIETY OF SAVINGS AND CHECKING PLANS TO MEET YOUR NEEDS. CALL THE OFFICE NEAREST YOU!

FED.lLA)

Serving the Alaska Oil Industry Needs with a Complete Line Of:

• Drilling Fluids • Coring Fluids • Workover/Completion Fluids • Solids Control Equipment • Oil Muds • Engineering Services

Magcobar North America 721 West 1st Avenue Anchorage, Alaska 99501

.. '; Anchorage 274-5564 Fairbanks 456-3721 II North Slope 659-2694 Kenai 776-8322 II' :m ~ 4 AL.ulcA'SI!IIEIIQY IIISOIIIICU WHk of Ally 25. t9s. World Oil Consumption 1960·1982 Mthion Tonnes Oil history 3250' • 3000 ~-· Coa&illued fft>m Pap a reserves are found at the -.communis! World di8coven oil at Prudhoe Bay. Prudhoe Bay Field the 2750!- Cl!ina Within 1 1 Rest or World Eastern Europe Eatimate IIC! .....,.. include Nortl! Slope Baain. · 9.4 billion hanela of ~>iL . . Between 1976 and. 1980 the 1969-The State of·AJaaJra state i.aaued 103 exploratory ~~DECO U.S.S.R. holcla•laaaaaaleontheArelic drilling permits for areas 2250' Slope, aouth of Prudhoe Bay, throughout the state. 200Df .-lviq honua hida ~ · During this same period of Rest or World $800 million. . 1976 to 1980; 421 deveJopmen. 1750 1969-Teaoroopenaa48,500 .talandaervicedrillin1permita ,. bpdnft'*Y,PbillipaMalathon -iaauedfortheAicticSiope 1500:...· Canada/Australasia-! 30 opens a 230,000 mel per day (North Slope) and Cook Inlet Japan I LN~ plant and Uniiln Chemi· Beaina. . 1250~ -a~ cal DivUion opena an 8JIIIIlOo llaportr of oil -pa have nial-plant,alloutheKenai bouded in Alaalra since the 1000•·. DECO Europe ~20 PeniuaaiL belinningofexploratiouofthe I 1973.,... ConB--!he ...., by Europeana. Oil~ lOOt- TJaa.AlaalraPipelinaAuthor- ontheweatah01eofCookJnlet, l'5 ixation Ad, clearing the' way . cJilectly .....,.. from AnchOl' forconatructionofthepipelina apPoint- known by the U.S.A. 1'0 from Prudhoe Bay to V aida. Ruaaiana aa aarly aa 1985 and -!5 · 1974-Conatrnction on the claiqla....eatakldinthengiou 800-tniJe.laDITAPSiinabetlins- in 1882. · . J 1977 - Oil be1ina to Row Namea ncb aa Oil Bay, Oil through the TAPS lbie:AtiWl Reel and Oil Point a-on )lftldlli:tiop the pipeline will mapa of the Ini8ldn Peninaula ica of the project. . . - drilled aa early aa the the Gulf of Alaalra about 60 cury 1.5 million hanela of oil on the west aide of the Cook Eakimoa and white traders 189!1& . . miles aoutheut of Cordova. per day. Inlet to this day. 1D lact, the o~ oilaeape on the Are­ PetiOienm ezploration in where the first diacovery well 1979 - The federal IoVern· &at oil Well in A1aaJra waa tic cout aaat of Barrow u other parta of A1aalra bepn in Alulra waa drilled. -tand the State of A1aa1ra drilled prior to. 1900 in the aarly aa the first decade of the early in thia century. Wildcat­ Completed in 1903, at a total eonduct a joint laaaa aa1e of ~ Paninaulaana, but no l.900a. Aloq the ·aaa~ern II'Uil ten drilled weJia in 1902 near depth of560 feet, this teat well 514,192 -·in the Beaaior& positive recorda have been cout naar Yekutat and in the ·Cold Bay. There ue many oil ...Wted in. amallCOJDJDelcial Saa which ~·ti.,. ciaii- loand to document the llp&Cif­ Cook JDietana. aomeoil we11t -pa in the Katalla ana, on See HISTORY, Pqe 8 matea .-iact CODtaina about 760 million barrela of-- able oil and 1.660 tdllioncuhlc latol...... The stata - -leuing metbod.l- fbad hon-. fbad IOJUty and a net profit ahaN aallid vulableon -tracts; eliding acala royalitiea aBd • honua bid vulable ou olbera. 1980-The State of A1aaka co~!idoo a Prndhoe Bay - · aaJe uaing a Jeuinll' option (20 poreolltroyalty and30 poreollt net profit ahare with honua bidding) deaiped ·to -­ amaller bklden u wellaa the majoroilcompaftiea. A total of 43 of the 77 tracts 11'0 to amall bidderii'IOUp&. 1981 - ARCO begina pro- duction froiD the Kuparuk field weetofPrudhoe Bey, pumpinll' "Looking at the longterm development of Prudhoe, we have to view it about80,000barrelaadayinto the TAPS line. When the field not as one field, but as many fields, each with specific drive mecha· reachealullp!Oduction,in1986. the pipeline will cury 250,000 nisms, reservoir conditions and production requirements. In one area barrelaofoil from the Kuparuk you'll have waterflood: in another area you'll have waterflood plus field. Estimated reserves in the enhanced oil recovery (miscible gas injection) and even another area, Kuparuk field are about 1.25 billion barrela. the central portion of the field, gravity segregation and gas cap drive. The total weU production for The real challenge will be to obtain the best {rom each of these fields the otate and federal Janda in Alulca,~ 1902and1980, without adversely affecting others. This planning to "get the most" ineludea 1.550,885,286 barrela of oil, with the North Slope from Prudhoe is a process that I feel is more technically challenging Baain produCing moet of the oil. than anything done at Prudhoe to date." From· statehood throush 1982, the State11f Alaslra held 38competitiveoilandgaaleaae aall!f. A total of 5,633 tracte containinl(ll.211.542.67 aeres Brian Davies, Prudhoe Bay Unit have been offered for leaaing. Programs, Sohio Alaska Of that amount, 3,377 traeta eontaining 6,411.958.27 acres Petroleum Co., I~tercom, have been leased on a competi· th·ebarda. March, 1985 Not incluite.t are land whieh hal-·e been le:ised noncompeti· tively. sjncc noncompetitive leasingoftliiandgashaabeen · prohibited sinee 1978". · The stateo•s £urrent five-year leasing prolltam call• for 14 lease S..Jes through !987.. Dur· ing 19~2 the state conducted fi"·e lease saies, and acreage offerings for tfi.ese sal~s total .iJilore than threfmillion acres. )lore decailed .information · about the leasing program and p_roposed sale ar•s can be obtained from the Division of Mineraisand Energy Manqe­ menL O.partment of Natural Resources. .. Current. eatimatea of oil reaerveainAlaalrainclude8.454 billion atandard hanela of oiL The majority of these oil A MEMBER OF ARTHUR YOUNG INTERNATIONAL

SERVING THE ENERGY INDUSTRIES

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I I'' !!II Thousand Million Tonnes !fWr- • Oil history 90~··-, Coatiaaed from Pace4 ReNrve.No. 4 which iseptecl strike and a refiDHY waa aab- Smith'• eleim. . . aaquendy built there in 1911. a.-1923apd 1944.­ Aboat 154,000 barrela of oil of ·the exploratory work in were produced &om the Katelle NPR-4 couiatecl of aeOiolical field form 1902 to 1933 when aarveya. Ia 1944, ia pNIIUB· the refinery bamed down and lion for a pouible oilebortap the operation ended. II the s-ad World War COD· ID1917,SandySmith,a10ld liDaed, the Na"Y "SeabeM" proapec:tor, biked the Brooke (andlater,pri,.tecoatnetoral llaqe to the A1ctic Ocean on ~anambitioaaaplo­ bia way to Poiat Barrow. Tra· ration and clrilli.,. ~ veli1111 acrou the tundra be that contiaaed. until 1953. Jr unk knee-daepin a pool ofoily Althoqh the J1101ra1D npnoeo l mack.Hewaaabletoatricate ented a relatively limited bimeelf and coaliDue bia iolll' aploiatioll eflbrt. it lacluded ney,latertellillll Standard Oil 36 teat ..U. and 44 cine-. Company of bia uperience. over3,400 line milee ofeeiamic :l . Stendard Oil waa iatereatecl eoverap, polocical mapplaf in staki1111 a claim to thaae oil of 21,000 ...... mileL lakeaand ...... tooallltSmith Nineoilandpadiacoftriet to lead a party of pol.,.Uote were made aftelo an aplora beck to the oil field. tiu apeadl- of about '" Smith and bia aroap arrived millioa. The Umiat Oil Field in Nome in 1921 .aboard the ~Ia 1943, ia thoacht Victoria bat diacovered that a tocontela~tecl70mil· L __...:.:,_.:....:..:..._..:._ ___ ..:.__;_..,...... !;!!'-...!!;~__!!~-'~'-'~:11...--....;...... --...-..-' rivaloilcompaaybadalio-t .lion banela oflol!lovarable ail. a team of polotriate on the Tbe Sim-Oil PMild ia eeti· dlarap&the..-Jfteb·raio coiote.•OiJwaadl-....l·on tittaled lnto.an .....,....t ume boattoatake.theaamaoil mated to contain -12 mil· and, aa .a ...JI, t!ae lllliulic ,Jaly :!&at a teatad rate of900 ~Btaadardbecametbe fielda. Both partiea ocrambled 1ioa banelaof-..Nble oiL - -...... rtot~~es.... ~aclay,aadthew..n- -•forthejaiabentlan. for charter boate and another Ia 1947-48 a PGIOiial &o!ld - RiYel'-iDtha.illll'lh«D -plneciSepL 23,11157. Tbia Aftft.. a lltate compelitiw oil raab besaa. pmy..,...,..the__...,_ ~oftheiUPUPanlaAla...... aipiflcanl' diacowl7 ...... ialaiatheadja· Before either party waa able ofthto~ l...... _aad the TfielliclJ&oldOIICorp.aJ!da · ._ later ..0. ...,..... the -&Cook 1D1eL ---.U.. to reach the oillakea, winter ftm.._,...,....yof!M Jaiat-&lireOitbeUnioeQil s-Bi..,. Flold to be a covered.- at Mlcldle Groaad aet in and ice blocked the riv· lower portion of the peniaaala Company and the Ohio Oil liaat ail·fteld.with w..n ,_ Shoalln.Jaae,1962.AaaildJa. era. U ndauntecl, the Smith waa conducted ia 111114 with a ComPB!'Y (n- Martbon .Oil lOOmillioa~of...,;,.... 'cowry in Saptambat the fol. party aet oat in a akin boaL larpportioaofthe_.....,. Co.)IM881hbepnera1Swaa· able_,.; · . . lrnrinnear-mtecliafurther Twenty·ftvedayaand 100milM at'aboat the aainelime. Some - Ri.,.. area ia 19114. By tbe The diaco,..Y facueed the upl.oration and davelopmant later, Smith and bia party laid .. minor .marine eeiamic work to end of 1955 Ofrera to leaee the attention of :the entire oil of ~ latp fielda in ·the . claim to the oil lakea for determine the offahale poten. remainder ot the lcnrlanda oli indutry on Alaaka. The odda Cook ID1eL Offeboni lauinain Standard OiL tiel Cor oil waa conducted Ia tbe...,.u..wa-made.' qaiaat diacoveriq oil with Cooklnletin19631edtomany Hia efforts ·were in vain, 19115 near Anchor Point .an Swaaaon Ri•er Uilit No. ·1 tbeftratW..Uinan-bUinare iJilpronmente in ••11-~rctic however, for in 1923 President later in the ·Forelamla-Kallin -.,j,nddedApril5,1957, with extremely bigb. After the dla· olfebore technology; · Warren G. Harding designated Island area in upper Cook lnlit. Union Oil and' Marathon Oil cowry of .the SWIIIiaon River The Swaneon River diacov· 37,000aquaremileaoftheNortb Tbe U.S. Fiab·and WUcllife Co. join&ly partieipating ia. Field, Richfield and Standard erynotonlygavetbe'induatry Slope as Naval Petroleum· Servicefearedthiaworllwoald abou& 10-112 percen't of the Oil. Company of California See HISTORY, Pale 7

e Matert•la T"llng • Site Exploration •Inspection a QU811ty ControiTeatlng • M81er181a Engl.,...rlng .

4040 B Street, Anchonige Ak 99503 . (907) 562-2000

... l!i ~ Week ol May 25, 19/U ALASKA'S ENERGY RESOURCI!B Page 7

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A MO.NOLITHIC MEMBRANE - LINE IT STRONG EXACTLY WHAT A LINER SHOULD BE Sprayed on the recommended thickness over· a Chevron Industrial Membrane (CIM) is a liquid reinforcing fabric, CIM quickly forms a solid tex­ urethane. Once sprayed-on it forms a monoli-: ture. Servicable in 2 hrs. Tough-enough even for thic membrane: No se~ms. A big-advantage over leach pads. And holds up in S~udi heat and conventional liners: And there are more advan­ Arctic col~. CIM- the liner you need. tages. PROTECTION LINE IT THE WAY YOU WANT IT Witn a fuel resi-stant coating added, CIM pro­ Spray':'on application <~llows fl~~ible, on-site -~ides excellent protection for splash and spill fabrication. Line 1 acre Jr 500 acres. Line any conditions involving fuel storage containment shape or size. So easy, a local contractor can lay dike liners .. ,. 8,000 sq. meters in 8 hrs. wit.h only 6 men. Chevron !II LINE JUST ABOUT ANYTHING . . . . ~ ALASKASEALING CIM qualifies for a far gre~t~r rj:mg~ &f u~es. than ' conventional liners. Holds potable water to acid waste. llijll ~7~!!N~~~~~~~!K~~ CHEVRON 349•4654 ALSO LONG LIFE, LIQUID lndustral . Membrane .cHev~

Coalillaecl hill p ... 7 ita biaMt impetU anlil &he Prudhoe Bay strike ill 1968, bat oil de,.,Jopmeat helped SllbetaDtiata&heec:oDOIIIicju. tiflcatkmfol' Alaakaatllteboocl. The diacove~y of oil at s...... , Riv• eJ.o renlted iDaDIUDWoffintafor AJuka witbia • abort period of time: &he fim cnde oil pipaliae; the fimmarilletaabrt.eraliulat Nikiski, the firat modem lll&lel:y, aad the fim ...... chemical plaat. AB of tllia pniYided a - IIIIIIUiou booat to the Stille's - aad tnae~Dy. EzpJo. ntioaaad~toa&he. Kenai P81liDnla CODtiD- to t11ia day althoqh at a mach ...... pace thaD th- earb dnmetic )'8lin of diaco-:r. Tbe oil iDdutry, worlllq from &he renlta of &he Nav:r'a 1944-53 - ...... driJ. ling wildcat we11a mto the c.... taceou...... , aoath of Prudhoe Bay oa· the Arctic Slope. No COIIIIIII!II:iadepoaita ..... foomd It im't worth mach PH p)· OD foderaJ Jeuee olfeNd be­ loa, or evea PH barrel, bat for FIVE-YEAR OIL a GAS LEASING PROGRAM - 1968 to 1968. dacadao the valu of the total ALASKA DEPARTMENT OF NATURAL RESOURCES DrilliDIJproceededa«thwud world proclaction ofpetrolaam ontoleaeec!State luul ARCO'a DIVISION OF OIL GAS Pradhoe Bay State No.I eaplor­ - oftea caUed "black goldw - a atory well resalted ill a major hu been muy lim• that of .....,..,_.DIM all the 1old milled dma, the discovery. lD Mardi, 1968 tlie ....,.period. The annul world ...... well toated at 1,152 banela of " oil oatpat Ia ilow aboat 20 bU· 41 ..... ~~ oil between dep&he of9,505feet lion banela, Which amoaata to and 9,825 feet. The diaco-:r ..---41ACIIIII ... H 8D ·-e of 760 liten (200 __ -u. located on land 1eeeec1 pllona)forewryh1lm8Dbeiag • from the Stat.e, procloced from .. the Sadluochit formaliOD of on earth. Tbe United Statoo .. cou-aboat30 pen:ent of . . tllia total or more thaD 4160 Permo-TriaoaicThe confirmatioa -· well, Sq -­ .. liten(1100pUono)PHperao1l ·--..u ...... - RivM State No. 1, spudded ill .. _ May 1968, tested at 2,300 bu­ PHY8Bf· . _ 'nuoagh itamuyimportut relaofoil PM day. I lo applicatiou u u eliel'IJ' .. .. The Prudhoe Bay Oil Field, ...... ,., a labricut, aad ita .. .. the largeatoa the North Amer­ ...... I ican contiDent, had an eacoa· lllliqae poteatialu a ao111ee of ·-­ .. thoaaaado of valaabla peRo­ .. mging effect oa An:tic oil "-" chelllicaio, petrolaam hu pro- exploration. In September, «•t. .. ---..lc-. 1969. the state aold leases to bably had • -- a....mU --CoUt ... c- Janda east of Naval Petroleom. uofaJDeeo to maDkiDd thaD .··~. .._.,.._.._...... c-... c-...... Reserve No.4 betwen the Col· uy othe mat.erial ewr foaDCl viDe and CanniDg RivMB, real· ill aetareexcepttheair, -•· menta, carbon and hydJ'OIOD, eJ.owidelyuedtocaalkahipe, C181CieWIOpiDeDlotUieOUii8kla izing over $900 million in and land of &he earth itaolf. aometimeacombiDed withothH lncladillg Noah'a Ark, accord· of &he Baka PeniDaula, DOW ill Some 44 pen:ent of &he U.S. bonuses from the sale. As a elemeata ouch u sulfur and ing to certaiD -.~Dna of the &he USSR, in a eection which ·result. oil companies ·have 8D8fiD' reqairementa &le DOW oxygea. Although uuaUy a otor:r of the Great Flood. Thio wu &he area that anpplied supplied dinctly or iDdirectly liquid, petroleom mngeo from drilled in the immediate area -tile mat.erial wu even Raoaia'aflieldariDgWorld War by petroleam. Over half of &he light-colored -ter-tbia pro­ U. of the Prudhoe Bay discovery aup~.to have -t cara· Tbeprimitiwreligiouculta and south and. east of the petroleom couamed ill oar. dacta to black aolid piteh·like the me worahipPftl ;, tllia coantry Ia ued for lmnaporta· bitumen. tive-. reservoir. lD the early Chriatiu daya, area WHe baaed on &he "eter­ In the immediate vicinity, tionbyaato~~ Petroleum depoaita an uaa­ nal fires," which may haw tniDo, and boato. Modfta tech· allyfoandiD rockacalled "oed· the Arabo developed methode two othM poobr, the Liabume for dialilliDg petroleum to pro­ been caued by natoml gu (below the main producing aology hu not yet proclacecl a imentary,'' becaaoe they ...... , --ignited by lilhtnillg oatiafactory aabotitnte fo~ oil formedeouqofromacoaaol· ducevariou proclacta for light­ reservoir at Prudhoe Bay) and ing,cleomingtaxlileo, and other ;, prehioloric timea. theKuparukRi-(Cretaceou uaaeaergyll01li'C8formootof idation of oaad aad other miD· ' lD &he mid·19th centory, rei· these lmnaportatioa applica· emla ill -•-oftea the oea. uae. The CJUne. eJ.o accid· formatioa above the SadJero. eatally diacovencl oil ill the atively limited qautitiea of chit, located west of the main tiona. Withoutuadeqaateand Frequntly, petrolaam Ia inter­ liquid faela ...... regularly ...... contiDuiag aapply of crada oil 3M centory A.D. while clrilli· reaervoir) haw beencliacoviorecl. miDI! lad with aetoml gu aad ingforaalt. dacacl in t11ia country aad DrilliDgaoathandfarth•• - oraoatisf'actoryrepioces!lant oalt wat.e~ in coasolidated abroad, mainlv for illumiDa· for it - t11ia coantry ud &he (aoliclifiecl) or IIDCOnaolidated Marco Polo, d1lriDJ one of hu resulted ill a string of dry hio celebmted 13th centory holes. civilized world woold come to (1-)oud. aa abrupt atop. tripe, aoted the early commer- See CONSUME, Pqe 11 lD 1974, Conireae ciireCt.ed Petroleum Ia oeldom, if.-, the Navy to resume ita explo­ The Orillia and Nature of foand ill a large undergroaad mtion procram ill NPR-4. pool (although the termia often Petroleum ued),batioll8uaUymixedwith The _....,. coaaiated of Early aci.,tioto cluoified conductiDg ud mterpretiq oalt water aad gaa in the poreo petroleum ¥ a miDeral pro­ ofrocka. Tbeaerockaappearto aeiamic reeoDnaiaance pro­ ducecl within the earth oru a llfiUD.deeipedtogivea b1'0RCI be aolid but are fillecl with residue aomebow tramlllllitted minute pores. When a well ia pict1lre of the atnctural c.. here from outerapaee. The con· acteriaticaof&hegaologyofth. . drilled into oil-bearing niek, aensll8 of knowledgeable opiD· the preaeure of the geo trapped ~alightlya....r5,0001iae ion now is that Petroleum was miJea of reflection aeialllic ud in the oil often forces part of created handreda of millions the oil to the oarface. Thio Jed gnvity da~ gatherillg wu of years ago from the decom· completed tliiough May, 1976. to &he early·"oil I!Dihera" that p<\Sition of simple forma of -opectecalarpmof, batalao Since 197 4, the Fede~al plant or animal life. a-wuta, of &he Oil fields JOverD1118Dt hu apoii&Dred a "There ia evidence that these nf Texu ud elaewhere. broad program to increase organic substances were later aetional oil oridactioa ill an buried by oeclimentation and, SU.I')'oiPetrolonula Uee ltffort to make d.e coomtryJeaa through the action of beat and Petroleam hu a fucineting dependent on foreiga oil. Aa "pressure over millions of cen­ hiotory becaaoe it hu been partoftllia prognlm, the Inte­ turies. were transformed into known to mukilld for thoa­ rior Department w8a directed petrolealm. aaadoof:yllll8thMugh&he­ toillcreuetheleaaingoflanda Petroleum conaiate of a mix· - thatheve come aetarally on the out. ContiDental Shelf tare of a large nom&..of com­ to &he earth'• aarface. (OCS). plex chemicala called byclro­ lD uciantPeroie the kiDdof lD Aluka, the offehore pet. carbona.Aa theaameouggeota, petmleam DoWD U bitomen ~oleam proviaceo of the these compoando conaiot Jar. wu ued u a boncliQ mate­ Chakchi Sea, Buofort Sea, gely of &he basic chelllical ele- rial.....,_ nf~. It wu Woek of Moy 25. 191U ALASKA'S ENERGY RESOURCES Page 11

World consumption Tanker Fleet ··u.s. 1965-1982 was built on oil finds Continued from Pege 9 is because petroleum itself has no characteristice that enable Fleet• tion and cooking, by the sim­ ite presence underground to be ple distillation of raw petro­ specifically pinpointed from the leum available as ground seep­ earth's surface. ages or skimmed from the oar­ The only sura way to deter­ face of certain creeks or rivers. mine whether oil is present in Near one such stream - a given spot io to drill for it. OilCreekinnortbwestemPenn­ This explaine why weU dril­ sylvania- U.S. oil history's ling is a frustrating and often mostimPC!rtanteventoccarred financiaUy ruinous activity. in 1859. This was the drillling Drilling deep wella requires at Titusville of the first weU in a very substantial investment which oil was found at a dl!pth in thousands of feet of weU of only 69 feet. casing, tubing, and driU pipe; Oilincommercialquantities the familiar derrick; a anb­ On Order was alao discovered and ~xplo­ stantial"powarsource;driUbits; ited in the late 1800s in other aasociated driUing muds; and widely separated parte of the chemicalo. Italao requires a lot world, but .the United States of trained manpower. Scrapped and RUSIIia accounted for 90 · Many yaars ago it wu dia­ percent of the world's crude oil covered that oil peoducing­ output at the beginning of the voirs were alao located under 1 b.chades Combin:ed tamers 20th century. the sea. Sw:cessful tappins of From 1903 to 190, a severe thesedepoaitsjustoffthecoast men1, 8UIDOrata proVUilOns tor mto au variou eompoaenta or -of the many diffO..nt com­ petroleum shortage developed of such states as California livingquarters,polirerauppliee. "fractions."'rill. may, in later pounds that make up crude oil. in the United Stetes. This occur­ and Lonisiana, marked the and often a helicoptft landing stages of operations, be re­ The more complex and effi­ red because of the rapidly ex­ beginning of an uteuivs off­ pad. combinedorchemic:ally altered cient methoda ofrefining deve­ panding market for gasoline shoredriUingactivityinlakss, to yield the desired prduets for loped in recent yaars involve due to a·ten-fold increase dur­ bays, and shallow coastal Re"""'- Crude Oil filial consumption. the alteration of the hydrocar­ ing that time in the number of waters all over the world. The Petroleum refining consists· Refining was originally bon molecules - the basic "borseleu caniagea.'" offshore platform in effect is of a series of complez phyoical simply the selecllve diatilla­ building blocks of the various Scientific research, stimulat­ an expensive man-made island and chemical processes by tion - boiling off at various compounds. The full series of ed by this shortage, produced containing weD-drilling aquip- which crude oil is aeparatad charaderiatic tamperaiuree- the invention in 1913 of the See CONSUME, Page 13 "cracking'" process. This in­ genious chemical procedure doubled the refinery yield of gasoline and helped to estab­ lish the energy basis for the automotive and aircraft indu&­ tries. Between World Wars I and II many improveMents were made in the techniques for lo­ cating, recovering and refin­ ing petroleum. Gasoline pro-­ duction increased enormously in order to take advantge of the innumemble convenient ap­ plications of gasoline and die- sel engines. . During l93i-47 (which in· eluded World War Ill more pet­ roleum was taken from the ground than had been produced in all previous history. After World War II. the ratA! of dis­ coverv of new wells in the U ni· ted s.;.tes began to fall off. but the demand for petroleum and its products continued to in· creat~e. Recently, apart from ita use as a source of many different fuels, petroleum has also been increasingly in demand by the .giant petrochemical industry that now annually turns. out billions of dollars worth ofsyn­ thetic chemicals and useful sub­ stances of all kinds. In addi­ tion, hundreds of miUUons of Tools our machines and engines­ most notably, automobilea­ -depend forefficientopeiation on specially de•igned lubri­ cants refined from petroleum. of the Each is an integral part of yo~r Vt(Ork. At Executive The development and wide­ Travel, our tools are organization and the ability to spread exploitation ofcrude oil has teken place in just a tittle lirade get the job done., We specialize in meeting all of your over 100 years. Particularly during the last half of this travel needs, from booking single flights to planning a complete period, a substantial percen­ itinera_cy,.Lwith all the nuts and bolts thrown in at no cost to you. tegeofthe world's known crude oil supplies has been< ·wed. · New developmente, st h as additional petroleum fields, more complete recovery from Executive Travel Service known deposits, or the discov­ Anchorage: (907) 562-2324 ery of satisfactory substitutes, will be needed in the near future Prudhoe Bay: (907) 659-2502 to meet the constantly increas­ ing demand for the end pro­ , Falrbc;m~s: (907) 452-3285 ducts of petroleum • , r , Finding and Producing Oil Modern methods used to search for oil are based on sen· Executive Travel sitive magnetic. gravity and HEAD OFFICE, IIOZ W.INl"L AIRPORT RD•• ANCHORAGE. ALUKA 9950Z, 1907l56Z·Z3Z4 seismic(shock)measurements. PRUDHOEIIAYTRAVELOFFICE,P0vatl40tli.PRUDHOEMY.!\LASKA997l4.«07l•S9-Z50Z But even though these tech­ FAIRBANKS TRAVEL OFFICE. 4_JI OW STEESE HWY. FAIRBANKS. ALASKA QQ701 «907} ·UZ·JZIS niques involve complex tech· nical equipment and ingenious analysis, oil prospecting is stiU far from an exact science. This Week of May 25. 1984 AI.ASKA'S ENERGY RUOUAC:.S Page 13 • Consumption spurs search

Continued from Page 11 that time, the use of this tech· willaleocontinuetoberequired overable oil, whereas the Mid­ are vast quantities in the intricate modern refining nique has steadily grown and to produce lubricants and use- die East area po88e&aes 62 per, westem part of the United­ chemical processes include: now the United States is criss­ {uJ petrochemicals. It is pre- cent, of which 25 percent is hi States. craeking to break down the croeoed by over 200,000 milee dieted that U.S. oil conaump- Saudi Arebis. Ordinary oil recovery larger hydrocarbon molecules, of oil pipelines. (Thie does not lion wiU double in the final Thus the clear and urgent methods extract about one­ reforming to change the inter­ include an even larger network quarter of thia century. This . meaaage for the United States third of the oil at a apecificaite. nal molecular structure, and of gaa pipelines.) prospect forces the country to today is to find more petro­ Enhanced oil recovery tech· purifying for environmental The Ia- development in face some hard and sobering leum,lo proce88 it for carefuUy niques are deeigned to recov· reasons. this technology waa the Trans­ facta. planned uses, to recover more ery some of the remaininltwo­ Thesucceoaesofrelinerytech· Alaska pipeline which bringa U.S. oil production dropped petroleum from known domes- tbirda. The moet COiftlllliD pro­ nologiats in improving gaso­ oil from the North Slope of 10 percent during 1973-1976, tic deposita, and at the aame cedure now used ia to pump Jinequalitymadepoosibledram­ Alaska to a tanker outlet in an and this continued a downw· time to e~:plore other alterna· water under preaaure into an· atic increases in the use of aU-weather bay in the south of ard trend that began in 1970. lives and options for suitable oil reservoir, in order to sweep internal combustion engines Alaska. From there it travela For the first time in hiatory, subetitute energy sources. a sizeable portion of the re­ for automobiles, trucks, air­ to the Lower-48. Thia remar­ the U.S.S.R., not the United Two of the most important maining oil toward the pro- · crilft, and farm machinery and kable pipeline snakee ita -Y States, waa the world's lead· specific areas of investigation ducing weUa. contributed greatly to the aboveandbelowgroundacrou ing oil producer. relating to petroleum are: en· In fact, about 40 percent of "quality of life" and high 800 miles of some of the wild· Furthermore, oil imports hanced recovery of oil remain· current U.S. production ia by industrial productivity in the eat and coldeet country on have been increasing for many ing in the ground after active "waterflood. "Otberprocedllft!8 United States and around the earth, where average winter yeara, and in 1976 finally fields have been "played out"; U...detergenta, solvents, acids, world. At the same time, it readings range down to 51 to reached a.rate of half of our andthepoaaibilityofuaingthe 10nd heat, depending upon must be recognized that this 57 degreee below zero Celaiua total conoumption. If such oil contained in certa1n types conditions. · high productivity requires the (60 to 70 degreee below zero aizNble imports are not hal· of ahale rock. of which there Source: ERDA Pub/kat;otL consumption of tremendous Fahrenheit). Special newly in· anced byc:orrNpODding-rta amounts of energy. · vented dsaign features opeed of other goods and services, the movement of warm oil aerioue currenc1 and other Petrochemicala tbro1111h the huge 48 inch dia· economic problema a1aynnJt. Updating on energy The term "petrochemicalo" meter pipe without meltin1 or National eecurity will aJao be usuaUy does not refer to fuels. deetabilizing the perma-tro.t, jeopUdized by heavy depend­ Thia oil supplement, Part VI •, Senator James McClure, such as gasoline, kerooene, jet thepennanentlyfroanground, .....,onfonigneo.....,.for111ch of the Alaska Energy Reeour­ R-ldaho; fuel, and heating oils, but ia which ia a nalural feature of a c:ritical commodity. cea Series, was baaed on two of • Bill Hom, Deputy Under restricted to a 1-number of the environmant bf Alaaka. It ia olgnificant that, of the the five volumee of the Alaaka Secretary, ~t of the useful nonfuelsubetancea and N-to pipelinee, the cheap­ · nation'• total original petro. 'Regional Energy Resources Interior; chemicalo aJao derived from eat mode of ~rtation ia leum depoaita that can be rec­ Planning Project (ARERPP). • David Garman and Kevin petroleum. Some of the moat by ocean tankera. "l'heM have overed by known technology, The authors. in addition to Coyner,ofW:eofSenatoeFrank importantofU..arefeedetock been used utenaively aincethe about thne-foartbo · are U• project leader Gene Rutledge, Murkowald; chemicaloforayntbeticrubber, fintJohnD.Rockefellerlanta ~to beconeumedbstween included William McCoakey, • Jady Flury, Miaerale Man­ many different !dada of pfu. clipper ehip full of Pennaylva· the Great ~on of the Clariaaa Quinlan,. Mike Robm agementSorvice, ~t lice, eolventa, detergents, tea· nia crude oil Uound South 19301 and the end of this and Dee Lane. of Interior; tile fibers, fertilizen, conetruc­ America'• Cape Hom to Cali· ....tury. Additional information for • Hugh DePiand,SohioAJu. tion matariale, coatinp, ad· fomia aa early aa1860. The United Statee ia es­ this iaaue came from many ka Petroleum Co.; heeives, and paints. There ia now a fleet of over timated to have only 8 percent persona: • Alaaka Commiaaioner of Basically the acience of pet. 3,500 ouch vesaela, but there of the world'o remainina rec- • MichAel Hatba-y, staff Natural Reaourceo Esther rochemiatry ia an extension of ant some economic UDcertaiD­ director, U.S. Senate Commit­ WunnickaandroaaSchaff:and. petroleum refining.· It eom· tiee regarding the dsmand for tao on Energy and Natural • Wesley P. Nason of~ priaea the comple~: procedures aach a~ number. Many of Reso ...... ; ICIRI. bv which petroleum hydrocar- · the oupertankare .have capaci­ bon molecules, consisting tiee ranging from 100.000 to mainly of hydrogen and car­ 400,000 lone. bon. are broken down. com­ Movement of crude oil and. bined, intemaUy altered, and ita producte io aJao undertaken rearranged into new molecules e~:tenaively by lartre towed that form different subetancea bridgee in the Great Lakee and with uniqueanddeeireblechare­ the 48,000 kilometer. (30,000 cteristics. miles) of the country's inland These processea use control· waterway oyetem. Moat other led conditions of temperature, transportation - particularly pressure.andtime,andrequire of petroleum fuels - ia accom·. special catalysts that stimulate pliohed by the familiar high· aiid hasten the chemical way tank truck, of which there reactions. are now more than 160,000 in this country. Tranoportation Much of the world's petro­ The Future of Petroleum leum prOduction is located in u... areas remote from centers of · TI.e :v~tsiataa;ia~nO!"' population. In its movement cOiiouiDinlt'Pe&rifellm"U tlie' from the oil field to the refin· rate of about 17.million barrela eey. and on to the conSuming -perday.butthefuturedemand public, petroleum and ita pro­ for petroleum will undoubtedly ducts require many different continue to expand as more kinds of transportation. These machines,heatenergy,andelec­ include pipelines. oceangoing tric power are· needed for. in­ tankers, barges, railroad tank duetry, agrieulture, trenspor· • Surveying canl, and highway tank trucks. tation, and business operations Shortly after the first U.S. to keep up the steady pace oil well was drilled in 1859, the toward a higher· standard of nation's first pipeline - 110 living for a larger proportion • Engineering miles long- waalaid in north· of the world's population. western Pennsylvania. Since· Greatqll'lllltilieeofpetrolelim Next s_ale September • Computer Services The state's proposed sales !Sale,46).' • Project Management included in the five-year prO- , May 1985.Kuparuk Uplands gram are at various stages in (8ale4i). the leasing process. Proposed Sept. 198.5. Basin !Sale ~51. sale areas jlr which formal Jan.1986. Kuparuk Upland• nominationsorcommentshave IS~Ie4Rl. not yet been solicited are con­ May 1~86. Cook Inlet tSale sidered nomination areas. -~9). Generally. nominations and/ or Sept. 1986. Beaufort Seat Sale comments are ..licited 22 to32 52)." 10 months before the sale. Jan. !98~. Prudhoe Bay Once nominations and com­ Uplands tSale 51). OceanTech ments have been 1-eceived and May !987, Camden Bay !Sale analyzed, a proposed sale area 50l. 2502 West Northern Lights Blvd. map is prepared. The follow· Sept.I987,lcyCape(Sale53). ing sales comprise the state•a Jan.I988, KuparukU plands Anchorage, Alaska 99503 l five-year oil and gas leasini (Sale 54). Telephone: (907) 248-3888 program. May 1988, Demarcation Point Sept. 1984,Briatol Bay (Sale 55). Telex 26-485 Uplands (Sale 41). Sept.1988, Alaska Penineula Jan. 1985, Holitna Basin (Sale 56). ... . 11U0U11CU WHit olllay 25, 111/U

Alaska Oil Resources Biblio­ matched with the first lour years ··Phase 1 graphy, 1896-19n ol production history. Kuparuk (By Region in Chronoloeical River Field reserves were esti· Volume I Order) mated from operators reports and cumulative production from Alaska has eight oil produc­ the field. Recoverable Fossil Fuels ing fields located with the state. Oil Estimated reserves vary !rom • Reaerveia defined aa petro­ Recoverable Resource Sites one million barrels in the Beaver leum ornaturalgaadiacovered, (Onshore) Creek Field to just over 6 billion defined and producible, Estimates ol Alaska Onshore barrels In the PrUdhoe Bay Field yet produced. Undiscovered Recoverable as ol Jan. 1, 1984. BeaverCreek- 1; Resources Resarve estimates lor Cook Granite Point- 27; Onshore Province (Oil) Inlet fields wera made using Kuperut River- 375; Oil. Site Ranking (Onshore) production decline curves in McArthur River- 74; Recoverable Resource S.ite conjunction with water-oil-ratio Middle Ground Shoal - 15; (Onshore) hls~ies and producing pool PrudhoeBay-· 6,174; Ollshore Province (Oil) . data.PrudhoeBayresarveswere Swan.on River - :12; Estimates of Alaak.a Offshore determined·..Vng.a thrae.dim­ Traclina Bay - 3; Undiscovered Recoverable analonal raaerYoir modal TOTAL- 8,691. Resources ··OCToeatm Oil Site Ranking (Oifshore) Current Plans lor a-top,.,t Out!Stlon: How much proved and currently .._...., Recovery (Pr'oductlon) _.. . recoverable crude oil does the world contain? ______.. ___ .. Status ol: Cook .Inlet on Flesourceoi (19n) · Answer: About 579 to 703 billion barrels, or Transportetlon Systems 3,361 to4,079quads (10tothe5th power) BTU. Applicable Technology ---~ Coet laaues --- . Exl-1 Marliet ~-· _.,---...... ___ _ Next Month _.,,.__, __ Phase 1 _.... ___.,._ .... _ Next month, the Alaska Journal of Volume U Commerce kicks off a continuing . u.a.-·-- . aerte) of indepth looks at the Alaska ene~gy scene with "Renergy with -...--·· Oil Aeaouic8s Inventory Rutledge." c.-fll•~---··- ...... 6cre~"- History ol 011 Exploration, ,..., ...,._-_, ...... ~- a...toilmint llld ProduCtion ... In Alallla 1153-1177 The new format wm·allow Dr. Gene .,_.,A-...... £ilwwy 116Nr7.-- Ia •.,..,., ...... Ia .Oil HlatOry ~ .. Rutledge. much greater flexibility to ~-.,.,;..... -..,_ ,..._.... . Oil ProcJuctioft. . . laoildl•...... _,.,,.~...... ,_. focus on a wide range of energy .--..sOII~EslimatM ....,.,.,,..._...,.,_...... "-7 .... lnwntory by Field of Alallla Oil issues that have come to the fore in t-MiaiM~,...,._u._.,...... ,....,.. ..._...,... .. CIIIIIIIM,__.... . : ~ the 49th state. ~ Contacta (oil) ,...... u.•,...... _,., ..._...dil..,_.., Alallla ...... ·....-~ ...... _.

ENERGY I MINERALS LANDMAN ... ALASKA

MINERAL/OIL & GAS ABSTRACTS STATEWIDE FIELD SERVICES. LAND RESEARCH MINING CLAIMS. PERMITS. TITLE SEARCHES ST A.TUS REPORTS · ACQUISITIONS LAND TAKE-OFFS

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.WILLIAM 0. VALLE~ . I ; ~- CIRTlfiED PROPUIIONAL LANDMAN 430 W. 7th Ave .• Su•te 1 \. P.O. Box 2794. Anchorage .. Alaska 99510 (907) 272-2753 I 272-0733 I 2n~9712 W- of Ally 25. 19/U ALASU'S ENERGY REIOURCEI P1ge 15 • Energy "Roadmap" Energy roadmap Comprehensive Energy Planning Elements charts resource, site, operation, E issues for series 01ao. c..e Wind • .._. ttl_, • An early probl-iD evaluat­ iqAiuka'aeaeqy_,.,.. ,...... o...., waa developi... a chart, or "roadaiap," that woodd ·­ ..... ify wb.. - atoocl ud wbae ---· -wutedtop. TIONS All« IIIWIY moalha, a table ~ of-~ ..a-te waa coiiiJIIeted. lD uy eaeqry ~.- ...... bow: •The--(qUUl• lity/qaality)-iaitcoal, -· ail, D&blnl .... wiDd, ..,, ...... T-...... , • The lite of tbia-­ •SiaM--of-ttw-Art wbaeiai&? ...... _ •c- • The -li--what bu ·-·­ •Efflc:ieftciH ..... doae with tbia­ ·---...... e_, ·­ flam eaploratioa to.-­ ·- ...... ta- to electrieal &-allaa ·- t....Jemetioa,etc. • ,...... u.ociated wilh lhe~-~.­ vilaouDoatal, otc. For.....,ple,-tiaayW&Dd •NabweflllioM·-~ to~ lhe- of IDOV· ·­ iq oil flam Prudhoe Bay to Valdea ·• work elemeat. INFORMATION COLLECTION AND EXCHANGE o'l'he-.y-..:eiaoil. Qc II Uti I*IDdiMI o The lite ia lhe pipeliae route &om Prudhoe Bay to Valdez. •Libreriel·-"~ •lndullrill·~ CorporatiON ·-~ _ ...... ·--­·~· •lndiYkhJell. ·--Cotpor-

Construction in Alaska's rural and arctic regions presents unique challenges. Meeting these challenges calls for a special blend of experience, commitment, and professionalism. It's these traits that have made Alaska International Constructors a leader in the field .

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ACKNOWLEDGEMENTS

Many acknowledgements were .Wi~·dand Geothermal: Lieut~~ant . · made in each of the six AER sup­ Ball and K. W. Kreidler of the plements to the Alaska Journal of Naval Air Station at Adak; :Mar­ Commerce. The reader is invited to nie Isaacs of Alaska .Ehwer note the assistance that so many Authority. . ;· people gave to those publications Natural Gas: Dave Webb..' and which are now the key parts of this Harold Schmidt of Enstar;'Meade book. Treadwell of Yukon-Pacific Cor­ Without the support and advice poration; C. V. Chatterton of of Jim Martin, associate publisher Alaska Oil and Gas Conservation of the Alaska Journal of Com­ Commission. .. ~ '' merce and Pacific Rim Reporter, Solar and Alternate energy: this booklet would not have been Lenore Senko of Glass or'}t}aska; possible. Pat Woodell of the Alask~ State Many people helped with the Office of Energy; Karin Holser of mechanical aspects of the publica­ Alaska Bush Energy Systems. tion - Dee Gilbert, Vicki Cunn­ Oil: Susan Andrews of.:ARCO ingham and Kathy McGee on Alaska; Gary Bock of Ocean Tech­ typesetting and/or layout; Marlyn nology; George N. NelsorilJ.Sohio Scott-Garcia for cover design; Jim Alaska Petroleum Companyi;·R. H. Westover of Ridgeway's for special Weaver of Exxon; Kay :atown of page reductions; Anchorage Prin­ · the Department of Nitural· Re­ ting for book printing services; and sources; Thomas Cook'artd.E. K. Louise Rutledge for some typing Espenshield of Chevron; E:· M. and editing. Pringle and James D. :Weeks of At attractive book mail-out was ARCO Alaska on West Sak; printed by Mike Higgins of Senator Murkowski. Graphic Printing which included The patience of the prepublica­ negative reduction contributions tion book buyers and the· support from Steve Sparks of Air Photo of the advertisers are also gratefully Tech. The mail-out included acknowledged. . •,, favorable comments by Martha Sheppard, Gina Flamm and Stephen St. Peter which were very much appreciated. About the Author The six part updates received Gene P. Rutledge is owner of assistance from the following Pacific Polar Rims of Anchorage, people:' Alaska. The company, formed in Hydroelectric Power: Carolyn 1978, serves as a vehicle for his Rinehart and Pat Richardson of writing, teaching, consulting and the U.S. Corps of Engineers; the high technology marketing activi­ staff of the Alaska Power ties. Authority. The May 14, 1984 issue of Coal: Jodie Morrison and Pat Sur­ "Alaska's Energy Resources" rena of Diamond Shamrock; Joe (Solar, Part V, pp. 2 and 3) an­ · Usibelli; Kent Grinage of t~e Arc­ nounces the coming publication of tic .. Slope Regional Corporation; a monthly series called "Renergy Charles· Hawley of. Hawley of by Rutledge" and gives the educa­ Hawley Resour'

Anchorage Nome 645 G Street Front Street and Federal \\lay Anchorage. Alaska 99501 276-1911 Nome. Alaska 99762 -1-B-5-\26 Commercial Banking CL'ntcr Wasilla 449 E. 36th Avenue Lakeview Professional Bldg. Anchorage. Alaska 9950.3 276·1911 Wasilla. Alaska 99687 376--11-17 Fairbanks Dillingham 710 3rd Avenue Main Street Fairbanks. Alaska 99701 .. '; -152·1428 Dillingham. Alaska 99576 Bethel Bethel Native Corporate Office Bldg. Bethel. Alaska 99559 543-3875 UnitedBa·nk·Aiaska . MEr.;t!lER FDIC'. @ ARLIS -,ou"'ooou"""' . LENbER. · Alaska Resources Three-year-old Amy isn't concerned about her future .. . but we are. Planning for Alaska's tomorrow, today, will help t keep her smiling in the years aheaci. ARLIS t Alaska Resources • u • MAPCO PETROLEUM IN( Library & Information Sel.'"VlRs A SUBSIDIARY OF MAPCO INC. ~ch orage,PUaska