Interesting stuff: Anchorage water wars, a Doyon pipeline deal and a law firm’s look at the Permanent Fund
Interesting Stuff is back from hibernation. Items include a feud between bottled water companies and Anchorage's water utility, a Doyon subsidiary's acquisition of a share of a major pipeline on the North Slope and continuing turnover at the Regulatory Commission of Alaska.
After a long hiatus, Interesting Stuff is back! For new readers: This is a news digest, with short items on several subjects. If you've got tips or feedback, I'm all ears: Reach me at nat[at]northernjournal dot com.
A couple of other things: If it fits in your budget, please consider a voluntary membership to Northern Journal — I depend on them to keep the business running and, seriously, to pay my mortgage. Also, a reminder that if you bought black cod after reading my recent piece on the species, I'd love to hear how you prepared it. Thank you.
An intense, year-long feud between Anchorage’s public water utility and private bottled glacier water businesses came to a head this week, with a multi-day public hearing before state utility regulators.
The city-owned Anchorage Water and Wastewater Utility in January asked the Regulatory Commission of Alaska, or RCA, for permission to cut off the bottlers’ access to the utility’s main treatment plant, near Eklutna Lake and downstream of the Eklutna Glacier.
That’s where the bottling companies can currently fill their tanker trucks with water that’s been disinfected but not yet chlorinated and fluorinated.
AWWU cites risks to safety and security from allowing bottlers to access its treatment facility, saying that its infrastructure could be the site of a possible "physical attack" and that bottlers' truck drivers aren't "thoroughly vetted."
The utility says that bottled water businesses could still use glacier water from city hydrants — after the utility has fluorinated and chlorinated it. But the businesses — including one existing bottler and multiple companies hoping to bottle in the future — have vehemently objected, saying that the addition of the chemicals would change the water’s taste and damage their sales.
"A fire hydrant with chemically treated water is a business killing alternative," David Gottstein, the president of a startup called Pristine Alaskan Water Co., wrote in public comments in February.
At the hearing Wednesday, Gottstein attacked the utility’s leaders and said they had taken a “scorched earth, take no prisoners, Sherman’s march to the sea” decisionmaking approach.
In an email, Mark Corsentino, the utility's general manager, said the proposal is "about the need to protect Anchorage's long-term water supply."
“Putting a community of nearly 300,000 at risk for the benefit of seven customers does not make sense, especially when those few customers can get all the glacier sourced water elsewhere in our water distribution system,” he said.
AWWU wants attorney to defend water rights
In other Anchorage water news, AWWU is asking the Anchorage Assembly to approve a contract with an attorney to "defend" the utility's water rights to a local creek.
Ship Creek, which runs past downtown Anchorage, feeds into an AWWU backup water treatment facility that operates at times of peak demand, or when the city's primary Eklutna facility is offline for maintenance.
A recent determination by Republican Gov. Mike Dunleavy's administration has "prioritized" AWWU's water rights to the creek over those of the local U.S. military installation, Joint Base Elmendorf-Richardson, city officials wrote in a recent memo.
"To defend these rights and clarify the situation," AWWU is asking to hire Eric Fjelstad, a local attorney and "expert in water rights law," the city officials wrote.
Doyon subsidiary wants 20% of key North Slope pipeline
A subsidiary of Doyon, the Fairbanks-based Alaska Native corporation, is asking state regulators for permission to acquire 20% of a major North Slope pipeline from a ConocoPhillips affiliate.
The two companies applied Wednesday to the RCA for permission to transfer the minority share of the Kuparuk pipeline, which currently moves up to 175,000 barrels of oil a day.
Earlier this month, another minority owner of the pipeline, a subsidiary of Chevron, also asked for regulatory permission to transfer its 5% interest to a small, Texas-based firm, Pontem.
Nathaniel Herz
Doyon already has significant interests in energy-related businesses, including a pipeline company that moves oil between the trans-Alaska pipeline system and a refinery.
The RCA application says Doyon’s subsidiary will assume “full responsibility and liability” for its newly owned share of the pipeline, including for decommissioning costs. But ConocoPhillips, whose affiliate will own 75% of the pipeline after the transaction, will continue to manage operations.
RCA shakeup continues
Another member of the RCA is stepping down — this time Bob Doyle, who served as the commission’s chair until earlier this year.
Doyle is just two years into a six-year term as commissioner. But he said in a phone interview Wednesday that he’s “retired” so he can spend more time with his family.
His departure leaves the five-seat commission with just three commissioners, following the resignation earlier this year of Keith Kurber.
Doyle said he will depart the commission toward the end of the month. Remaining commissioners include Chair John Espindola, who was appointed last year, John Springsteen, who was appointed in May, and Bob Pickett, who has held his job since 2008.
Dunleavy appointed a new commissioner, retired state attorney Steve Devries, last month. But then Devries decided not to take the job, Doyle said.
Dunleavy administration hires firm for Permanent Fund review
Dunleavy has hired an international law firm to review the leadership structure and conflict-of-interest policies of the state agency that manages Alaska's $80 billion oil wealth endowment, following multiple controversies.
Dunleavy's office last month hired WilmerHale under a contract capped at $50,000 for its review of the Alaska Permanent Fund Corp.'s framework, and its "board composition, expertise, diversity and succession planning." The firm will recommend improvements to "governance processes" and for avoiding "perceived conflicts of interest,” according to the contract.
The WilmerHale representative who signed the contract was attorney Alyssa DeCunha, who’s done high-profile work with Ivy League university presidents during congressional hearings, according to the New York Times, and also worked for Texas Attorney General Ken Paxton in his legal fight against securities fraud charges.
The contract runs through the end of December.
Opponents of Juneau’s proposed cruise ban raise big bucks
A proposed one-day-a-week ban on large cruise ships in the Southeast Alaska destination of Juneau is drawing major opposition from big tourism businesses.
A new group that’s opposing the local citizens initiative to ban ships on Saturdays has reported raising more than $300,000 to fight the proposal. Donations include $75,000 from an affiliate of Norwegian Cruise Line, $75,000 from Westmark Hotels, $10,000 from Wings Airways and $8,000 from Northrim Bank.
The anti-initiative campaign has hired Anchorage-based Thompson & Co. as its campaign manager, according to filings with state campaign finance regulators.
