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The illogic of cultural appropriation

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By WIN GRUENING
SENIOR CONTRIBUTOR

Melting pot: a place where a variety of races and cultures assimilate into a cohesive whole that often results in invigoration or novelty – Merriam-Webster Dictionary

The bulk of my life experience has been centered around two highly regulated and regimented careers – the military and the banking industry.  It goes without saying that neither tolerated much diversity of opinion or creative flair.

For that, we have the arts.

That is, until some in the arts community decided artists had to ask permission to be creative, take risks and be provocative.

I’m, of course, referring to the recent dust-up involving the Wearable Art Show sponsored by the Juneau Arts and Humanities Council (JAHC).  Titled a “Spectacular Celebration of Creativity”, artists were encouraged to “explore, experiment, and showcase.”

Despite this glowing promise, one entry this year caused considerable controversy and was ultimately removed from the show.  The entry, by artist Beth Bolander, “Doragon,” was heavily influenced by Asian artwork and fashion. The piece included a silk kimono-like garment with a dragon-inspired theme and facial makeup reminiscent of a geisha.

When Dani Gross (who has Alaska Native ancestry) modeled Bolander’s creation, it was roundly cheered and won third-place.  Yet, some said it promoted Asian stereotypes.  This sparked a heated debate about cultural appropriation that led to its removal and several apologies by the JAHC Board.

Additionally, JAHC promised to hold meetings about cultural appropriation, implement policies for next year’s Wearable Art Show, and provide “equity” training for staff and board members.

Fordham law professor Susan Scafidi defines cultural appropriation as “taking intellectual property, traditional knowledge, cultural expressions or artifacts from someone else’s culture without permission including…… dance, dress, music, language, folklore, cuisine, traditional medicine, religious symbols, etc.”  (Neither Bolander nor Gross are of Asian descent.)

The issues involved generated a firestorm of criticism of JAHC from all sides – from those believing “Doragon” was not only insensitive but racist – to those believing JAHC’s response was caving to “political correctness” and was an example of reverse racism.

As the apparent arbiter of all things cultural, JAHC should have realized what a slippery slope this can be.

While waiting to learn what the limits of free expression will be in our community, here are a few questions the JAHC Board could consider before diving headlong into this quagmire.

  • Will there be separate committees monitoring every featured art form?  Who will give permission from the appropriate culture, if needed?
  • Will these new policies apply to artwork, jewelry and merchandise sold by the JAHC?  What about food served at events?
  • Will information be requested on the ethnicity of artists?  How will that information be verified?

I don’t dispute there are instances of artistic insensitivity (intentional or not) that mock, marginalize, or exploit other races and cultures. Those are never okay.  But that isn’t the intent of “Doragon” – which celebrated the beauty and artistry of Asian culture.

Most art organizations, in the name of artistic expression, have had no problem defending other “offensive” works of art such as “Immersion (Piss Christ)” that depicts the crucifixion of Christ submerged in a small glass tank of the artist’s urine.  Despite the controversy it generated, it was a National Endowment of the Arts-sponsored award winner.

It’s illogical that any arts organization advocating freedom of expression would yield to the tyranny of the cultural-appropriation crowd.

Creative collaborations, and yes, cultural appropriation, can enrich our lives.  Conversely, guarding cultures to preserve them stifles creativity and prevents the free exchange of ideas, styles, and traditions – which should be the hallmark of any multicultural society.

In a larger context, our culture of freedom is slowly being erased by increasingly militant groups: oversensitive critics offended by anyone coloring outside the lines, speaking their mind or straying across some arbitrary boundary of political correctness.

Juneau, like many communities across our state, is a true melting pot.  Only 50% of children in our schools are Caucasian – with the other half mostly Alaska Native, Asian, Hispanic, or an ethnic mixture.

Why deny anyone the full richness of sharing of cultures by telling them they “can see but not touch”?  For over 200 years, this has never been the inspiration that brought people to America.

Juneau can do better.

Win Gruening was born and raised in Juneau and retired as the senior vice president in charge of business banking for Key Bank in 2012. He is active in civic affairs at the local, state, and national level.

Kito says if per diem cut, he’ll likely not run

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Editor’s note: This story was written before Rep. Guttenberg was taken to Bartlett Memorial Hospital to be treated for an unknown medical condition earlier today.

LEGISLATIVE PAY: THE JUNEAU EXCEPTION

Rep. Sam Kito, who chairs House Labor and Commerce, continued his habit of inconveniencing citizens (this time naturopaths) who traveled to the Capital City to testify on a bill, and instead continued discussion of a bill that impacts his political future: HB 309, a bill that rejects changes to legislative pay and per diem.

HB 309, sponsored by Fairbanks Rep. David Guttenberg, would reject all of the recommendations of the State Officers Compensation Commission, which cuts the salary of all legislators and decreases per diem of some legislators if session extends past 90 days.

Kito’s committee continued to review his recommendations for changing the bill on Wednesday.

For legislators to reject the salary commission’s recommendations outright is problematic in a year when they are running for office, but Guttenberg must be seen as a safe seat, drawing the short straw to carry the bill that is politically sensitive.

The salary commission recommendations impact Juneau legislators more than those from elsewhere, by dramatically cutting their per diem. Kito has been on record saying if the recommendations stand, he won’t run again because being a legislator is expensive. He added to that sentiment on Wednesday:

“This job has been costing me out of my savings, but not an excessive amount of money. I am single parent, head of household with a daughter in college, and it is not inexpensive. As an engineer, I was able to save up some money for her college,” he said. “With this reduction, I am in a situation now of having to choose whether I run again or whether I take money out of my daughter’s college account to continue this job, and I am not prepared to do that. So if we don’t resolve this issue, I already made the comment and will say here I will not run again. If the choice or the decision of the compensation commission was to pressure legislators to not run, they’ve succeeded, at least if [their recommendation] goes forward.”

Two Juneauites have filed for the District 33 seat: Democrat Sara Hannan and Undeclared candidate Chris Dimond.

 

Slip of the tongue? Walker admits he’s a Democrat?

SO CONFUSING

Gov. Bill Walker often uses his no-party status to distance himself from the Alaska Democratic Party, while in his actions he has increasingly aligned with Democrats, pushing for bigger government, more social programs, and higher taxes. He also ran and won with the full support of the Alaska Democratic Party, a feat he hopes to repeat in 2018.

But, at a recent event at University of Washington’s Evans School of Public Policy and Governance, even Walker got confused about his own political identity, first calling himself a Democrat, then catching himself and correcting, renaming himself an Independent.

He told the group of students he had cut spending by $1.7 billion in response to dropping oil revenues. But he needs revenues: “A few of my predecessors assumed that oil was a renewable resource and the price would always go up,” he continued. “I introduced nine new pieces of revenue. I wasn’t trying to put a target on anyone. A little bit of income tax, a little bit of fuel tax…not a single one of them passed.”

Here’s the clip with Walker’s confusion about his political identity:

 

Transgender files complaint against shelter for abused women

VULNERABLE, ABUSED WOMEN MUST NOW SLEEP NEXT TO BIOLOGICAL MEN?

[Editor’s note: The transgender individual in this story is referred to as a male for purposes of clarity, because he is a biological male who presents as a female, and because no legal record of his female identity or name change could be discovered through research.]

“They” said it wouldn’t happen under AO 96, which in 2015 liberalized Anchorage non-discrimination laws to include sexual orientation and gender identity.

They, meaning the ACLU and advocates for gender-neutral bathrooms, promised that no transgendered individual would ever abuse the law — they simply want a place to pee.

ENTER TIMOTHY ‘SAMANTHA’ COYLE

Along came Timothy Paul Coyle, also known as Samantha Amanda Coyle. He had other plans, plans that the ACLU lawyers had perhaps foreseen but dismissed.

Coyle was banging on the door of a shelter for abused women, and he was demanding entry.

In late January, Coyle was homeless, as he so often is. He was also inebriated and got into a fight at the Brother Francis Shelter, according those familiar with the incident. In some of his legal records, he lists Brother Francis Shelter as his home; readers can safely assume the staff is familiar with him.

The Brother Francis Shelter takes both homeless men and women, but because of the circumstances of his inebriation and fight, the staff sent him over to the Hope Center, which runs a shelter for abused and battered women who are homeless.

It’s likely that Brother Francis staff figured Coyle’s assumed female identity would be enough to get him in the door, and they were just trying to move him along.

The Hope Center is run by Christians, with over 30 church partners. It also runs a soup kitchen, a culinary school to train people for jobs, and offers showers and bathrooms for both men and women.

But at night, the sleeping mats are rolled out where the food was served hours earlier, and desperate women, some who are escaping human trafficking, find safe shelter in one big room, crammed next to each other on the floor.

The women sleep beneath a large wooden cross, while the staff does their laundry for them overnight. In the morning, they have breakfast before leaving the shelter, and the staff turns its attention to providing lunches, showers, and bathrooms for all homeless people in need.

The line for lunchtime soup starts up all over again, day after day, with hundreds of people served in a clean, relatively safe setting.

A TRIP TO THE EMERGENCY ROOM

The Christians running the Hope Center took one look at Coyle on the night of Jan. 28 and determined he needed medical attention; they gave him cab fare to get to the emergency room for treatment of his injuries, and they directed him to then go to the AWAIC shelter, which houses both abused men and women.

Coyle came back to the Hope Center the next day, Jan. 29, and tried to gain entry, but was also turned away, this time because he had shown up at the wrong time of day. The “women’s shelter” portion of the Hope mission doesn’t start until after 5 pm, and Coyle showed up in the early afternoon.

He had now been turned away twice.

A COMPLAINT IS FILED

Four days later, Coyle filed a complaint with the Anchorage Equal Rights Commission, saying that he had been discriminated against at a place that provides “public accommodation.” He alleges he was refused entry because he is transgendered. Transgendered means he is in a protected class of individual, his complaint says. He cannot be refused service.

The matter is now before the Anchorage Equal Rights Commission, which has set a hearing for March 15. Will the commission rule that the Hope Center must accommodate those who appear to be biological men?

The Hope Center hopes not. It will argue that it is not a “public accommodation,” as it does not cater to the general public. Its showers and bathrooms and soup kitchen serve the homeless, but its women’s shelter is there to keep vulnerable abused women safe from the dangerous nights in Anchorage.

The Hope Center will also argue that it has a First Amendment right as a faith-based mission to operated its charitable services for women and exclude biological males so that women can sleep in a place that feels safe.

In fact, if the Hope Center had to admit men, it would not have the physical means to segregate them from the women.

WHO IS TIMOTHY PAUL COYLE?

His court records show that Coyle is a man with an extensive criminal record, including violent crimes. There are no court records found in extensive research by Must Read Alaska that pertain to his assumed female identity.

Coyle, 52, appears to have lived in Anchorage, Colorado and Idaho. He has a long list of prior arrests and convictions that include charges for armed robbery with a deadly weapon (dismissed by prosecution), and other theft charges, including shoplifting, resisting arrest, and violation of probation.

As late as January, 2017, his last interaction with the Alaska criminal justice system, the court referred to Coyle as a male, and no records were found for a name change.

But in June of 2017, the media said he was a woman. KTUU quoted Samantha Coyle as a client of Bean’s Cafe, a soup kitchen, where “she” was when a homicide took place outside. A man had been stabbed in what has become one of the most notoriously violent areas of the city, and Samantha Coyle was quoted.

Again in October, Alaska Public Media quoted Samantha Coyle in a story about Anchorage homelessness, referring to her as a woman. “She” told the reporter that there needs to be more affordable housing.

Alaska voter rolls list Timothy Coyle, age 52, whose address is the Brother Francis Shelter.

Coyle’s complaint is clean, legalistic, and notarized. He may have gotten help from Abused Women’s Aid in Crisis (AWAIC) in filing his complaint against Hope Center.

Coyle lists the AWAIC address as his home address on his complaint and he filed his complaint online:

Whether the complaint made to the Anchorage Equal Rights Commission is legitimate remains an unanswered question, since it’s hard to determine if Samantha Coyle is an actual legal person or operating under an assumed name. Samantha Coyle’s complaint is notarized.

If indeed AWAIC is helping transgendered persons file complaints against another women’s shelter over the issue of men seeking entry into a place reserved for the safety of traumatized women, then the AWAIC board of directors may have some new policy decisions to make.

VOTERS WILL DECIDE, COMMISSION WILL HEAR REAL CASE

At the same time the Equal Rights Commission is hearing the Coyle complaint against a women’s shelter, voters in Anchorage are being asked to reverse the Anchorage Assembly’s actions that prevent private businesses like the Hope Center from keeping men out of “intimate places,” when those places have an open architecture that doesn’t preserve privacy.

On the ballot voters will receive in the mail about March 15, they’ll be asked to vote yes or no on Proposition 1:

A yes vote will restrict access to public facilities such as bathrooms, locker rooms and now, it appears, battered women’s shelters on the basis of sex at birth, rather than gender identity. It will allow private establishments such as businesses and religious organizations the right to make their own bathroom rules.

A no vote is against restricting access to facilities such as bathrooms or locker rooms. Members of the public would be free to use bathroom facilities consistent with the gender identification they might feel on a given day.

MUST WOMEN’S SHELTERS NOW BE OPEN TO MEN?

The vote that Anchorage voters cast between March 15 and April 3 will be pivotal to many nonprofits and charities serving battered women.

But what about the Hope Center’s women’s shelter? How will they decide who is a man or woman?

The Hope Center is accustomed to dealing with women who dress more masculinely in order to afford themselves more protection as homeless women.

The staff has to make a judgment about who is actually eligible to stay at the shelter. For instance, they don’t accept those under the influence of alcohol or drugs, and they only accept homeless women. Their focus is on abused women, although for a few years they have had an agreement with the Brother Francis Shelter to accept overflow when the Brother Francis shelter is full. The Hope Center will take women from Brother Francis, if there’s room.

The women who come to the Hope Center for the night are usually suffering from some of the most horrible traumas imaginable. Their experiences with men have left them with what is a form of post-traumatic stress disorder, in many cases.

That’s not something that proponents of gender-neutral intimate spaces have thought through:

  • Former School Superintendent Carol Comeau wrote, “It is not true that the current law allows men to simply dress up as women to enter women’s restrooms. It is not true that the current law makes it more permissible for someone to harass anyone in public facilities.” But Comeau is not the one staffing the door of the women’s shelter. She’s speaking from on high as a retired educator. The people staffing the doors of shelters are now presented with men dressing up as women, and then filing complaints.
  • Former lawmaker Arliss Sturgulewski wrote: “Proposition 1 is one of the most divisive, harmful initiatives I’ve seen on the ballot in our beloved city…Let’s be clear: Proposition 1 targets transgender individuals who want to safely and privately use public facilities, just like the rest of us.  Most transgender individuals have been harassed using public restrooms, and many have been physically assaulted. The current non-discrimination law provides them with the freedom to choose the facilities in which they are comfortable and safe.  That freedom should belong to the individual, not put up for a citywide vote.” (It’s unlikely she wrote that voters should not have a right to weigh in on important public policy, but she signed off on the op-ed and it was printed in the Anchorage Daily News).

But Jim Minnery of the Alaska Family Council wrote back in 2015:  “While not fully repealing the misguided law, our intent is to bring balance and create equal protections for people of faith who want to live and work in the public marketplace without fear of governmental intrusion and legal intimidation.”

Minnery was prescient. It only took 30 months from the passage of AO 96 for a women’s shelter run by Christians in downtown Anchorage to come under attack for turning away biological males.

COMMISSION TO HEAR RESPONSE FROM HOPE CENTER

The Anchorage Equal Rights Commission is governed by nine commissioners appointed by the mayor and confirmed by the Anchorage Assembly. The AERC also has six paid staff, including an executive director and staff attorney, three investigators, an intake and outreach coordinator, and a docket clerk.

The Commission meets on a regular basis in the Mayor’s Conference Room at City Hall (632 W. Sixth Ave., Suite 830), and the next meeting is March 15, from 6-7 pm, when this matter will be heard.

The lenient arm of the law: More ‘catch-and-reoffend’ car thievery

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Must Read Alaska readers will remember the case of Saliloimanatu Toilolo, who was caught stealing cars repeatedly in Anchorage, only to be released by a court order, so she could get caught stealing again.

To review: On Oct. 26, she was stopped  by Anchorage police in a stolen silver 2003 Cadillac Escalade on West 44th Avenue. She already had a list of priors that included attempted car theft as far back as 2004. Toilolo was definitely known by the criminal justice system.

[Read: Catch and release through the court system]

The driver of that vehicle was Shane Muse, who drove recklessly throughout the Midtown before ramming police vehicles in an attempt to evade arrest.

Officers arrested Muse, 28, and passengers Crystal Tui, 24 and Toilolo, 32. They faced multiple charges including vehicle theft 1 and vehicle theft 2.

Toilolo soon was out and back to her old ways. She was busted driving a stolen car on Jan. 11, but under new relaxed pre-trial guidelines, she was released on Jan. 17, ordered to wear an electronic ankle monitor. She never plugged it in, and was busted in February driving another stolen car.

Shane Muse was released by the judge after being charged with numerous Class C felonies in this case and prior felony charges relating to an arrest a month earlier.

MUSE BACK AT IT

Muse wasn’t busted again until this week, when he was caught in a 2006 black GMC Yukon that had been reported stolen Feb. 25 from a parking lot on East Tudor Road.

[Check out Toilolo’s eye roll during court hearing]

On March 6, 2018, police saw the stolen GMC Yukon in a church parking lot at E 11th Avenue and Ingra Street. The Yukon was parked next to two other vehicles: a silver GMC pickup truck and a silver Chevy Malibu. Both were occupied.

As the officer who spotted the activity waited for backup, the drivers of the three vehicles noticed him, and started to leave. With all three vehicles now evading the law, patrol units were on the tail of the Malibu and the GMC pickup, while another officer used a maneuver to force the Yukon into a snowbank at 10th and Juneau.

Officers arrested the driver, 25-year-old Crystal A. Tui, on charges of eluding, vehicle theft 1 and vehicle theft 2. They also arrested the passenger, 28-year-old Shane Muse.

At some point in the proceedings, numerous shots were fired not far from the police officers. No one was hit. Officers found a stolen handgun inside the Yukon, tucked beneath the seat where Muse had been sitting.

Muse was booked on criminal mischief 5, two counts of theft 2, vehicle theft 1, and misconduct involving a weapon 3 (felon in possession).  He also had an outstanding felony warrant.

After Tui and Muse were cuffed, officers began looking for the source of the fired shots and found shell casings about 150-200 feet from the scene.

Although official charges are not yet recorded, Muse has previous charges that he has not yet gone to trial on, including forgery and fraudulent use of a stolen access device.

Both Tui and Muse are housed in the Anchorage Jail for now. They’ll undergo a pretrial assessment to determine whether or not the justice system finds them at risk of reoffending.

Readers of Must Read Alaska may provide their own “pretrial risk assessment” below.

The ‘nothing to report’ videos keep rolling on Berkowitz

Another “Nothing to Say Mayor” video hit YouTube last week, part of a series of Anchorage Assembly meetings featuring a mayor of Alaska’s largest city, one overrun with crime, who has “nothing to report” week after week.

In this video montage, Assembly Chairman Dick Traini chides the mayor for never having anything to report: “Tell us about your new city manager,” he says, encouraging Mayor Ethan Berkowitz to deliver some kind of report.

Must Read Alaska has posted the other videos that “Reformed Snowflake” has produced in recent weeks, including these:

Mr. Mayor continues to have ‘nothing to report’

 

‘Nothing to Say Mayor’ video is direct hit at Berkowitz

 

Walker’s China Syndrome: Ignoring the human rights problem

REPUTATION OF CHINA IS SUB PAR

Gov. Bill Walker knows China has an image problem. It’s a threat to his plans for the AK-LNG project — the Alaska Gasline.

The image is well-earned: China is supporting terror, killing dissidents, and recently created a system of classifying politically acceptable citizens in a “social credit” system that will keep everyone in line. Think of it as a credit score given to you by the government that will determine if you can get work, housing, or services — or perhaps be assigned to a labor camp.

Ah, communism. It’s all in a day’s work.

China hasn’t developed a love of democracy, even while it becomes a major economic powerhouse. The Trump Administration, following up on the promise of Trump-the-candidate, announced steep tariffs against Chinese steel. Trump is weighing whether to penalize Chinese investments in the U.S. and impose China-specific tariffs on other imports as a way to punish the communist country for its intellectual property theft.

But if President Trump is finding China to be in need of course correction on the trade front, Gov. Walker sees opportunity for Alaska.

What better time to stand up a “reputation management campaign” for China than right now, as Walker is trying to get investment into his newly socialized gasline?

TIME TO HOLD AN UPBEAT PRESS CONFERENCE

On Monday,  Gov. Walker held a nearly content-free press conference to talk about his next trip to China with Alaska Gasline Development Corporation President Keith Meyer.
He used the event to describe the many ways that China is a great partner to Alaska. The wide-ranging topics were aspirational. Reporters, brought in to hear what was supposed to be big news, struggled to find anything to write about.
There was this: Walker is inviting Alaska business owners to go along with him and Meyer on the May trip they’re making to China; businesses can apply to be part of what is described broadly as a “trade mission,” that isn’t just focused on the AK-LNG project, although that is clearly the main topic.
The deadline for applying to participate in the trip to China is April 1, and participants will be required to pay their own way, including $3,000 in a “participation fee” that covers logistics, interpreters, and other associated costs. Participants must cover their own travel and lodging costs.
During his press conference, Walker introduced a representative from the Alaska Chinese Association, who said how pleased the Chinese community in Alaska is to have a governor interested in the relationship between China and Alaska. She put a soft focus on the country, although her relationship to the Chinese government was never explained.
Last month, Walker paid a visit to that organization and its Yen Wulin Chinese School in Anchorage.
Gov. Bill Walker and First Lady Donna Walker at the Alaska Chinese School / Xinhua Net News photo by Liu Quan
Walker also gave the new manager of the Ted Stevens International Airport a chance to talk about the aspirations the airport has to get direct flights to and from China.
Airport Manager Jim Szczesniak spoke about how there is a pilot shortage, an aircraft shortage, and a “slot problem,” a term for scheduling, which he said Anchorage is in a unique position to address.
But Szczesniak had no specifics during the press conference — he stuck to the familiar talking points that describe Anchorage’s great strategic location. His remarks were, too, aspirational.
Keith Meyer, head of the gasline office for Walker, was asked by reporters whether the steep new tariffs would impact the cost of building the gasline. Meyer gave no specifics but said the tariffs would have a negligible effect on the $0-60 billion project. He reiterated that the gasline is an important piece of the puzzle in addressing the U.S.-China trade imbalance.
Meyer said that Trump’s tougher stance on trade with China was actually a good thing for the Alaska gasline and really harmonious with our mission.”

CHINA BUYS ALASKA SEAFOOD, TOURISM COULD FOLLOW

China is Alaska’s largest trade customer, accounting for  30 percent of the state’s seafood exports.  Alaska has also exported mineral and timber, but in spite of that is at the bottom of the states with overall business with China.

Visit Anchorage CEO Julie Saupe was invited to speak during the press conference and cited anecdotal stories about China’s increased interest in Alaska as a tourism destination. She, too, spoke of Alaska’s aspirations to drive more Chinese tourists this way.

CHINA: POLITICAL REPRESSION ON THE RISE

If softening China’s image with Alaskans was the goal of the press conference, Walker succeeded with the press corps, as reporters didn’t ask him about his views on the nation’s human rights violations and whether that is a problem for Alaska.

China executes more people, including political dissidents, than any other country, practices forced abortion, operates slave labor factories, and covertly has supported rogue countries like North Korea and Iran.

Dissent is being quashed, with censors now banning the phrase “personality cult,” “emperor” and “Winnie the Pooh” — a phrase that has been used to mock President Xi Jinping.

Maya Wang of  Human Rights Watch describes the current repression as the worst since 1989’s bloody crackdown on pro-democracy protests centred on Beijing’s Tiananmen Square.

“We feel we haven’t hit bottom yet,” she said in an interview with the South China Morning Post.

President Xi is being granted increased powers that include an unlimited term of office by China’s People’s Congress, which convened this week. Not since Mao Tse Tung has the country’s leader been able to serve for more than 10 years.

As dictator for life, Xi is consolidating power, and at 64 years old he could retain power for another 20 years or more.

Gov. Walker’s focus on China legitimizes the highly authoritarian, Communist one-party system that is crushing dissent and criticism. With China’s increased interest in the Arctic, Walker may be creating a relationship with China that Alaskans will have more questions about than the few that were asked by the press corps on Monday.
Must Read Alaska readers are invited to pose their questions below.

This changes everything: LNG imports ahead for Kenai

NOT PART OF WALKER GASLINE PLAN

Last month, Andeavor (the company formerly known as Tesoro) purchased the Kenai Liquefied Natural Gas facility from ConocoPhillips.

The Nikiski plant, which had previously operated as an LNG export facility since the late 1960s, came at an attractive price: $10 million. This is the believed transaction price for what is a massive waterfront property with potential to make substantial sums of money — an enterprise with a view. Andeavor said it would strengthen the “integrated value chain” and “provide low-cost fuel for our refinery to produce the fuels that consumers in Alaska need to keep their lives moving.”

Where would Andeavor be getting this low-cost fuel?

One hint is that the company allowed an important export license to expire, because Cook Inlet natural gas is not competitive for export. That can only mean one thing: Andeavor plans to import LNG to bring down the cost of its refinery operations, not export it as the plant has traditionally done.

At a time when Gov. Bill Walker has pinned his legacy on building the largest infrastructure project in North American history, the AK-LNG project, Andeavor has quietly done what the private sector does best: optimize. Andeavor found a way to lower the cost of operations at its refinery by responding to market conditions. Clearly, they see it as a risk worth taking.

WHY DID CONOCOPHILLIPS SELL?

ConocoPhillips scaled back operations in 2015 and started looking for a buyer for the Kenai LNG plant in 2016. The operation was transferred to Andeavor on Jan. 31, 2018, allowing ConocoPhillips to exit its footprint in Cook Inlet and direct all of its efforts to the more profitable North Slope oil fields, where it has been investing heavily.

The Kenai LNG plant began operations in 1969 but has been in “warm shutdown” mode since 2015. It can liquefy 0.2 bcc per day of gas, or 1.5 million m/t per year of LNG.

WHAT WILL ANDEAVOR DO WITH IT?

That 1.5 million m/t of gas can be used to operate Andeavor’s refinery, which produces 62,700 barrels of product a day — jet fuel, diesel, gas, butane, and propane, for example.

In fact, Andeavor makes nearly all of the fuel used in Alaska except in Southeast.

The natural gas likely will be purchased on the international spot market and stored in tanks at Nikiski. The company will also have the ability to sell imported natural gas to customers from the Kenai to Fairbanks.

It would be a small operation in the global scheme of things, but in fact Andeavor could make a tidy profit selling gas on the side.

“We are still considering our options,” a spokesman for Andeavor told Platts, an energy publication.

WHAT ABOUT WALKER’S AK-LNG PROJECT?

The AK-LNG project envisioned by Gov. Bill Walker is, many experts agree, at least a decade away. That project has three major components:

  • A gas treatment plant on the North Slope
  • An 800-mile gas pipeline
  • A liquefaction facility in Nikiski on the Kenai Peninsula, along with docks and an export facility for shipping to Asian markets.

The AK-LNG project filed with the Federal Energy Regulatory Commission to start the permitting process last April, but has been rebuffed by FERC, which sent a scolding letter in January to AGDC, Alaska’s publicly owned corporation, saying its application falls well short of acceptable.  In effect, FERC gave it a classroom grade of “Incomplete”.

AGDC wants to be on a schedule to get gas to the market by 2025 and would like to start construction next year. But things are dicey now with FERC. The governor and AGDC President Keith Meyer have been conspicuously silent since receiving the letter from FERC.

All last year, Walker and Meyer worked to establish a relationship with China. They desperately need a buyer for the large of Alaska North Slope natural gas, and even more urgently they need money to build the project.

The AK-LNG project is the platform Gov. Walker ran on in his bid for governor in 2010 and was again the center of his platform in 2014 when he won office. He felt the companies were going too slowly. He sold himself as the leader who would get the AK-LNG project done soonest and most certainly.

“The State needs to ensure completion of a large volume gas line to tidewater at Cook Inlet for shipment of LNG to Asia. No company should be able to halt progress while demanding concessions from the state,” he wrote in 2014.

Once he actually took office, Walker pushed the private sector out and made it a State-owned and State-managed enterprise that has since spent hundreds of millions of dollars to develop the $45+ billion project. Since the private sector partners exited, AK-LNG has struggled to gain traction on any front, ranging from markets to permit applications.

Gov. Walker, with support from his well stacked AGDC board, recently made agreements in principle with China to take over major components of the project, and last month, Walker’s supplemental budget included language to cut out the Legislature as the appropriator for the project, consolidating his authority over it as he goes to his new funding source: China.

However, these agreements with Chinese state enterprises are not binding and are most accurately seen as a willingness to discuss certain ideas further.

[Read: Storm clouds gather for AGDC]

COMPETITION FOR THE WALKER GASLINE?

Long-term state project aspirations aside, a company like Andeavor is stuck in the present with Cook Inlet prices for natural gas, and those are just not competitive due to the high cost of operating in Cook Inlet.

While Andeavor may not want to upset the Walker Administration’s gasline efforts by importing gas to Alaska, it’s simply cheaper to get it from elsewhere, and the Kenai plant can be up and running in just two years.

That would mean Andeavor could provide more affordable fuel to Alaskans and also to the air carriers that stop over at Ted Stevens International Airport to refuel. The cargo jet refueling capacity at Ted Stevens represents a major part of the Alaska economy that must remain competitive, and Andeavor is likely aware that it needs to be nimble with its jet fuel prices, or air carriers will look elsewhere.

LNG coming into Alaska could also allow the fertilizer plant in Nikiski to restart and bring back dozens of jobs on the Peninsula, which urgently needs them.

Agrium, the fertilizer company that is now called Nutrien, cannot manufacture fertilizer without economical access to the raw material — natural gas. It’s been in shutdown mode for years, as a result.

And then there’s Fairbanks: A source of natural gas coming on line in the next two years is going to be of great interest to the Interior Energy Project (IEP), where tens of miles of gas delivery lines have been laid around the Fairbanks business core but, as of yet, stand devoid of actual gas. They built it, but the gas has yet to come. But with Andeavor’s LNG plant acquisition and apparent business plans, that could conceivably change.

Construction of the new LNG storage tanks in Fairbanks could be fast-tracked and come online by 2020, which would allow the IEP to get $15 million in state tax credits that would help cover some of the facility’s cost.

With its own storage capacity, Andeavor will likely be able to sell its excess natural gas to these and other projects. All it has to do is bid on cargo that is floating around the Pacific looking for a home. The recently growing spot market for LNG has given Andeavor a new possible line of business and a leg up as an energy provider in Alaska. Hilcorp, you’ve got company.

SPOT MARKET CHANGE EVERYTHING

The LNG spot market started originally in the late 1990s as new projects came online and old contracts expired. LNG began to be sold on an as-needed/as-available basis. If winter was less severe somewhere, for example, the excess LNG is sold at a cheaper price elsewhere. That market has grown exponentially in recent years with the emergence of a gas glut in the Pacific Basin.

As a result, long-term contracts are not in fashion in the LNG market in this era, with so many competing LNG projects coming online.

Sen. Shower opts not to join majority

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Sen. Mike Shower, just one week into his term in the Alaska Senate, is following in the steps of his predecessor Mike Dunleavy, and has decided not to join the Republican-led caucus.

His concerns and his decision involves budgeting issues and the growing size of the State budget. Caucus members stick together on the budget. Without being a caucus member, he will likely have just one staff person assigned to him and will not be included in important caucus meetings.

“As the budget stands today, and with a governor and House majority wanting increased spending, it’s likely there’ll be a budget increase more than our district would support at the end of the process,” he said on Facebook today.

“All members of a majority caucus must agree to vote for the budget no matter its size. For this reason, I’m unable to commit to be a member of the Senate Majority caucus at this time. I believe we need additional cuts, not an increase in government spending. I appreciate the Senate Majority members who have been very gracious and welcoming. However, I need to focus on the priorities of District E.”

The governor’s proposed operating budget is $4.7 billion, larger than what he proposed last year and the same budget he signed off on at the end of last year’s budget wrangling.

But with more than $200 million in supplemental requests, Gov. Bill Walker’s budget actually is pushed to nearly $5 billion in this fiscal year.

Shower, who was chosen by Walker to fill out the term of gubernatorial candidate Dunleavy, is concerned that the House Democrats and the governor will overpower the Republican Senate and force spending even higher, like they did last year. Another Valley Senator, Shelley Hughes, also stepped out of the caucus last year and remains out because she can’t support a growing budget during a time when revenues are not meeting expenditures.