Rare mine wall collapse at Pogo A rare mine wall collapse incident occurred at the underground Pogo Mine in late August, blocking one portal, or entrance. Safety was not jeopardized and mine workers used other portals to exit. Northern Star Resources Ltd., the mine owner and operator, and the federal Mine Safety and Health Administration, are investigating the cause. The company said “seasonal factors” may have played a role, but did not cite surface water or heavy rains in the…
Chinese tariffs on seafood hiked China imposed an additional 10 percent tariff on U.S. seafood imports, bringing total tariff to 35 percent. Chinese tariff increases were ordered beginning in July in response to U.S. tariffs on China’s products imposed by U.S. President Donald Trump. Seafood imports from the U.S. dropped 35 percent after the July tariffs, with a $340 million loss of sales, much of which was borne by exporters of Alaska fish products. Rising interest in mariculture Interest in…
Tax consequence of BP-Hilcorp The sale of BP’s Alaska assets to Hilcorp Energy will cost the state treasury because Hilcorp, as a Subchapter S corporation, does not pay a state corporate income tax unlike BP, which is a normal corporation. Instead, Hilcorp’s state income tax liability passes to its shareholders. But because Alaska has no personal income tax no payments will be made. How much this could amount to is uncertain and may never be known to the public (and…
Anchorage’s retail flagship, Nordstrom’s, closes Sept. 13 Anchorage’s flagship retail store, Nordstrom’s, will close Friday, Sept. 13. The only luxury retail department store in Alaska, Nordstrom’s closing is not only a big hit on local morale – it seems symbolic of economic malaise – but it will leave a big, 97,000-square-foot hole in a prime downtown location at 5th Avenue and C Street. The store acts as a feeder to smaller nearby shops and to restaurants, and is connected to…
Campaign to recall governor hits a milestone, but lawsuits loom The campaign to recall Gov. Mike Dunleavy reached a milestone, with organizers turning an application with 49,006 signatures in to the Division of Elections Sept. 5, well over the 28,502 signers needed. Under state law this triggers a formal review of the legality of petition, the claim that Dunleavy has acted unlawfully, and of the signatures themselves to ensure they are valid and from those registered to vote. The extra…
Battery power in Kwethluk Nuvista Light and Electric Cooperative of Bethel is working with Kwethluk, a small village in the region, on the installation of a 675 kilowatt-hour lithium-ion battery storage system that will provide backup power and, when a planned local wind project is built, allow surplus power generated by wind to be stored. This will allow the community to use less diesel for power generation. The U.S. Department of Energy has provided a $477,050 grant for the project,…
Doubt on Medicaid emergency State Superior Court Judge Jennifer Henderson ruled that the state’s move to cut Medicaid reimbursements to health care providers was not an “emergency” justifying immediate action outside normal procedures for rate adjustments, but the judge did not rule on an injunction requested to halt the action. The Alaska State Hospital and Nursing Home Association filed the lawsuit, challenging the expedited action by the state administration on an emergency basis. Judge Henderson said the action was not…
The question of who will operate the Prudhoe Bay oil field BP’s sale to Hilcorp Energy is unresolved, it turns out. ConocoPhillips spokeswoman Patty Sullivan told us talks with Hilcorp are currently underway. ConocoPhillips, ExxonMobil and BP (Hilcorp after 2020) own the field in differing percentages. ConocoPhillips owns 36 percent; BP owns 26 percent, and the remainder held by ExxonMobil and the state’s 12.5 percent royalty share. Normally, the company that owns the majority of resources becomes operator, but BP…
Much of the expense borne by feds, but state share substantial The total cost of this summer’s heavy firefighting season won’t be known until later this fall but as this is published the tally is above $125 million. This combines state expenditures (about $74 million and an additional $36 million paid for by the state but reimbursable by the federal government) and an additional $15 million-plus expended by the U.S. Bureau of Land Management for fires on lands it is…