A diesel spill along the Yukon raises fears about Hilcorp's drilling program
This photo, released by the Alaska Department of Environmental Conservation, shows the parking lot where a tanker truck released some 1,000 gallons of diesel fuel earlier this month.
A 1,000-gallon diesel spill earlier this month near the Yukon River has prompted renewed objections to plans by a privately held oil company to drill in the region later this year.
The truck was operated not by Hilcorp, the oil company, but by Brice Inc., a Native-owned construction firm that has worked with Hilcorp on its preparations for the summer drilling efforts in the remote Yukon Flats basin, north of Fairbanks.
Hilcorp is staging equipment for the drilling program at the Yukon River Camp, where the Dalton Highway, which connects urban Alaska to the North Slope oil fields, crosses the Yukon River. Once the ice on the river clears, the equipment will be barged up the Yukon toward drill sites.
Above the Yukon River, on Native land, Hilcorp is set to drill for oil this summer
Thom Leonard, a spokesman for Brice's parent company, Calista, said Brice's truck was 'between jobs' when the spill occurred earlier this month at a parking lot at the camp, which is run by a Fairbanks-based tourism business on federal land.
The lot is typically used for 'multi-day barging storage,' according to a post-spill report from Brice to regulators at the Alaska Department of Environmental Conservation, known as DEC.
There's no indication that the fuel reached the Yukon itself, according to documents released by DEC.
But critics of the drilling effort say the spill still serves as an example of the type of incidents that can happen during industrial operations like oil exploration.
The spill left some 600 gallons of pooled fuel in the parking lot that had to be vacuumed up by another truck. A video of the site obtained by Northern Journal showed workers walking through an ankle-deep pool that one of them described as diesel.
'We were told over and over again that we were overhyping the danger, we were alarmist, and that everything they were doing is perfectly safe,' Rhonda Pitka, the chief of the tribal government in the Yukon River village of Beaver, said in a phone interview. 'It's so disappointing.'
Oil companies often hire contractors to perform specialized tasks, and Brice affiliates have worked for Hilcorp in the past.
Leonard, the spokesman for Brice's parent company, would not say whether the truck had originally been in the area supporting Hilcorp, adding that 'we don't typically comment on clients we serve.' A Hilcorp spokesman also declined to comment.
But an online update last month from Doyon Ltd., the regional Native corporation that owns land in the Yukon Flats where the oil drilling will take place, noted that a crew from Brice was doing debris clearing for Hilcorp's exploration program.
A Doyon official said the company is aware of a situation that was reported to DEC but referred questions to Hilcorp as the 'appropriate point of contact.'
Hilcorp's search for oil in the Yukon Flats has support from Doyon and tribal leaders in Birch Creek, the Native village closest to where the summer drilling will take place. Other tribal leaders along the river and in Alaska's Interior have harshly criticized the exploration campaign, saying that its potential risks are incompatible with the region's salmon-dependent Native communities.
While the spill took place April 6, according to documents released by DEC, drilling opponents only learned about it in recent days through word of mouth, according to Pitka. She described the incident as 'exactly what we were afraid of.'
Opponents of the drilling program point to Hilcorp's history in Alaska: The company, which traditionally has acquired and operated aging oil and gas infrastructure, has been fined for numerous incidents, and regulators have pointed to a 'track record of regulatory noncompliance.'
A DEC official involved in the spill response, Terra Meares, described Brice as the 'responsible party' for the spill and said that the purpose of the company's equipment at the Yukon camp is beyond her agency's jurisdiction.
Decisions about potential penalties or enforcement actions, she added, would be made at higher levels of DEC. The director of the department's spill prevention and response division was out of the office this week and unavailable for comment.
The truck was originally left at the parking lot April 4, 'with no indication of leaks or issues,' according to Brice's report to DEC. The spill was discovered early in the morning of April 6 by a camp resident who was watching the northern lights and saw or smelled fuel.
The truck's tank holds 3,000 gallons, and the 600 gallons of 'pooled fuel' were ultimately vacuumed up from snow- and ice-covered ground by another truck that was dispatched to the site, according to documents released by DEC. An excavator subsequently arrived at the site to remove thicker layers of contaminated ice, according to the documents.
Leonard, with Brice's parent company, said the businesses 'always strive to respect the environment.'
'We are Alaskans,' Leonard said in an email. 'It pains us when incidents like this occur, although we are proud our team members took immediate action and followed all regulatory requirements.'
Nathaniel Herz welcomes tips at natherz@gmail.com or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link.
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USA Today
an hour ago
- USA Today
Small Michigan auto suppliers face a tariff crisis with thousands of jobs at risk
Small Michigan auto suppliers face a tariff crisis with thousands of jobs at risk Show Caption Hide Caption Appeals court allows Trump tariffs while appeal plays out An appeals court ruled the Trump administration will be allowed to levy tariffs while an appeal on previous court rulings plays out. Michigan auto parts suppliers are struggling with the 25% tariffs imposed by President Trump on imported vehicles and parts. Smaller suppliers are especially vulnerable, facing potential job losses and business closures due to increased costs. Industry experts warn that tariffs could lead to supplier consolidation, potentially driving up prices for consumers. Michigan-based auto parts suppliers are getting creative in their attempts to mitigate President Donald Trump's 25% tariffs on imported vehicles and auto parts. They must, because many industry experts worry the tariffs could put smaller players — which constitute the bulk of auto suppliers — out of business and result in widespread job losses. Take Michigan-based Lucerne International in Auburn Hills, which is looking for the U.S. government to grant it foreign trade zone status to help it delay its tariff bills and free up its cash flow. Another supplier, Team 1 Plastics Inc., is reassessing its business model, including what to do about a much-needed factory expansion that may no longer be affordable. Still others are asking automakers to help foot the bill. 'We've had a lot to think about when you take an industry that is as far-flung as the supply base is in automotive, and then throw in tariffs.' said Gary Grigowski, vice president of Team 1 Plastics, Inc. Adds Lucerne CEO Mary Buchzeiger, "I wake up in the morning and I deal with tariffs. I go to bed and I deal with tariffs. Then the policy keeps changing and when that playbook continuously keeps changing and we don't know what is going to happen two weeks from now … that's a challenge for any industry.' In Michigan, auto parts suppliers are huge employers and contributors to the economy. While experts believe the big suppliers will adapt to tariffs, it's all those smaller companies, such as Team 1 Plastics, which has just 80 employees, that industry observers worry about. In case you missed it: Economists estimate new tariff costs to range between $2,000 to $12,000 per vehicle "University of Michigan economists said tariffs on the auto industry, along with steel and aluminum, can be expected to reduce employment by roughly 13,000 jobs over the next several years. That's a lot of jobs," said Glenn Stevens, executive director of MichAuto. "This is what we've been concerned about because our industry is so tied to Mexico and Canada and the global auto supply chain. We were concerned that the tariff situation would cause an outsized impact on Michigan's economy.' Industry consolidation could drive up prices On May 28, the U.S. Court of International Trade ruled that the president had overstepped his authority in imposing 'reciprocal' tariffs globally, as well as duties on Canada and Mexico. Some in the auto industry said they were encouraged by the ruling, until they realized that the tariffs Trump put on autos still apply, providing no relief from the worry over possible supplier consolidation and job losses. The next day, an appeals court ruled Trump can continue to levy tariffs — which are taxes an importer pays on goods when they cross borders — while challenging the court order that had blocked them. Stevens said there are 'absolutely conversations going on' between suppliers and their customers, including automakers, about ways to shoulder the extra tariff costs together. 'When you have a tremendous increase in costs … that has to either be absorbed by the company, which is very difficult for small suppliers, or passed along to the customer,' Stevens said. 'What we don't want is it passed to the consumer, because that means repressed demand and lower sales, which leads to job losses. It's a fine balancing act.' Other industry experts report that the topic of the day among suppliers is how to remain solvent when faced with the tariffs potentially eating up their operating cash. "We are actively speaking with the tiered supplier community about this topic," said Joe McCabe, CEO of AutoForecast Solutions. "Everyone is taking the tariff talks seriously and looking at ways to improve efficiencies internally and investigate secondary supply strategies. The further down the supply chain you go, the more exposed the supplier will be." McCabe said the Tier 1 suppliers are in the strongest position to adapt to tariffs. They are bigger suppliers that sell directly to automakers. They have a diverse product portfolio to either relocate production and/or pressure the lower-tier suppliers — those companies that sell parts to the Tier 1 supplier — with price-reduction demands while investigating new suppliers in low-to-zero tariff regions. But in times of volatility, there has always been concern that the smaller suppliers will not be able to weather the storm, allowing larger suppliers to buy the distressed suppliers on the cheap and strengthen their product portfolio, McCabe said. As the number of suppliers dwindles, it could allow those that remain to strong-arm carmakers on the prices they pay for the parts, he said. The number of suppliers According to U.S. Census data in 2022, 3,814 firms operated at least one plant classified as producing auto parts in the United States, with a total of 4,846 plants in this industry. Those plants shipped $278.24 billion in parts and employed 575,338 people, said Jason Miller, a supply chain management professor at Michigan State University. Even the small suppliers shoulder big economic muscle. Miller said 3,045 companies with fewer than 100 employees operated 3,111 manufacturing plants that shipped $17.66 billion in parts and employed 54,561 people. In Michigan alone, data from the Upjohn Institute, a nonprofit, nonpartisan research center in Michigan, calculates that the state has 117,675 auto supplier jobs. Team 1: A typical small supplier On an afternoon in mid-May, Grigowski drives down the highway, going from meeting to meeting as he talks on the phone to the Free Press about his ever-growing to-do list to mitigate the impact tariffs will have on his company. The company, Team 1 Plastics in Albion, Michigan, is a small supplier, bringing in about $20 million in annual revenue. Its size represents the bulk of companies that make up the auto parts supplier base, Grigowski said. "We're little companies in little towns," Grigowski said. "We employ 80 people, so it's a big deal in a town of 7,000. And we have one location, so we're making decisions that impact everything." Team 1 makes the plastic vehicle parts such as covers, switch components or underhood components. Its business is "almost 100% automotive with a little bit of plumbing," Grigowski said. It provides parts to suppliers that eventually end up on vehicles made by General Motors, Ford Motor Co., Stellantis, Toyota, Honda and Subaru, he said. The parts they make are links in the complex supply chain that weaves across North America. The good news for Team 1 is that some of the materials it uses to make plastic parts are made in the United States, so the company dodges paying tariffs there. But dies used to make other parts will face tariffs and have "a very big impact" on the company's books, Grigowski said. Team 1's troubles Grigowski said the dies, which are used to shape or form plastic into the parts, are made from suppliers in Canada and India. India is subject to a 10% tariff, but Canada and Mexico got 25%. "That was a big surprise for us — 25% is a lot," Grigowski said. "A typical die cost might be $70,000, so that's going to be $17,500 more. So it's a lot of money. We typically get 10 dies a year from Canada, so that's $175,000 more. That's real money were I come from.' Grigowski said it is unclear whether the dies will be exempt from the Canada tariffs for being compliant with the U.S-Mexico-Canada Agreement because it is not a part, but rather a piece of capital equipment. "It's unclear if that will be covered or not" under the exemption, Grigowski said. "We will have to figure it out in the next week or so" before putting in new orders. If the dies are not exempt, he said the extra cost for the tariff will be passed onto Team 1's customers. As for the dies Team 1 already ordered before the tariffs were applied, it already had quoted its prices to its customers so it will not raise those prices to offset the added expense. He said some companies in Michigan make dies, but they don't have enough capacity to meet all the suppliers' needs. And, as those companies get busier, they will raise their prices too. On top of that problem, Team 1 also needs a new injection molding machine, which is made in Japan. Grigowski ordered a new one even though the 24% tariff on goods coming from Japan tacks on $72,000 to its price tag. He is hoping the tariff on Japan will be lowered to 10%, bring down the bill to $30,000. It would be less of an impact, "but it's still painful," he said. Finally, because Team 1 has added new clients in recent years, it has outgrown its facilities and needs to make a 50% expansion to its plant. It got a construction quote six months ago and had hoped to break ground this summer. But Grigowski said he has to get a new quote now because of the recently imposed 25% tariffs on imported steel and aluminum. "We're using an American company and an American building supplier and they will use as many American parts as they can, but they will probably import some of the steel and even if they didn't, the domestics will raise their price because they can," Grigowski said. "So it's a lot of things for a company our size to keep track of." He said it's a tough situation that feeds his bigger fear, which is "nothing we hear sounds like it's going to lower the price of the car.' "Cars are already super pricey for most customers," Grigowski said. According to Cox Automotive, in April the average transaction price for a new car was $48,699. "Which means, it could lead to lower volumes for us. Lower volume is never good.' A bigger supplier's strategies Across the state in Auburn Hills, Lucerne International, which makes chassis, powertrains and body structural components for passenger cars and commercial vehicles, is a bigger supplier at the tier one and tier two levels. CEO Buchzeiger declined to provide Lucerne's annual revenue or employee count, but she has been grappling with Trump tariffs since 2018 because of Lucerne's scale and reach into Asia. Trump was threatening to boost tariffs on China to 25% back then too. So she has learned a thing or two about mitigating tariffs that she's willing to pass on to smaller suppliers to help them. "The biggest issue with the supply base, especially with paying more cash up front, is cash flow and liquidity," Buchzeiger said. "The smaller suppliers can't pay that up front … it sucks cash flow out of your organization." Buchzeiger said her company has been working to get more of its supplies from domestic providers. She shares other strategies, such as what to do when the goods clear a port, as duties are due within seven to 10 days. Sometimes, the goods "aren't even at our door yet and the tariffs are due," Buchzeiger said. To offset that problem, Lucerne signed up for a U.S. Customs and Border Protection program called Periodic Monthly Statement, Buchzeiger said. That program allows a company to pay all the tariffs on the 15th of the month. So if the parts clear the border on the 16th, the company has a full month to pay it, she said. Buchzeiger said the company is also applying to be a foreign trade zone. "That allows us to bring the goods in and sit on them and not pay duties until they clear our door because we're considered a foreign trade zone," Buchzeiger said. "It's just to save millions of dollars in our cash flow because the longer we hold onto our money, the better." Buchzeiger agrees with the president's goal that more goods should be made in America. But she said to make that happen, tariffs have to be executed strategically. The U.S. aluminum manufacturers, for example, can produce only 15% of the aluminum her company requires, she said. So Lurcerne has to import 85% of it. With the 25% tariffs on aluminum now, "you just made me uncompetitive to manufacture here. To help me manufacture here, you have to understand where raw materials come from.' Find 'a path out' Like Grigowski, Buchzeiger believes tariffs will raise new vehicle prices. Buchzeiger is on the board for MEMA and MichAuto and she said the expectation is tariffs will drive up the average price of a new car by $5,000 to $7,000. As for the impact on jobs, MEMA, the group that represents the auto parts supplier industry, told the Free Press it did not have a precise estimate for supplier job losses so far due to tariffs. But it referred to the Bureau of Labor Statistics' April report that noted a national net decline of 5,800 U.S. jobs in motor vehicle and parts production since February. The bureau does not distinguish between parts and vehicle manufacturing. In March, steelmaker Cleveland-Cliffs Inc. said it would idle some operations at its Dearborn plant this summer, tied to tariffs. It said it will lay off about 600 employees. In a statement at the time, the company said, 'We believe that, once President Trump's policies take full effect and automotive production is re-shored, we should be able to resume steel production at Dearborn Works.' But MEMA spokesperson Megan Gardner said that based on its internal surveys, a growing number of MEMA's 1,000 members have reported reducing U.S. employment — both production and nonproduction — and investment since the tariffs went into effect. She said many indicated they expect to make further cuts if tariffs remain in place over the next year. Still, Grigowski said he is sticking to his plan to hire a couple people this fall to work on that new machine from Japan. He even sees a potential upside to tariffs if some work that is currently done in Mexico shifts over to Team 1. 'That's a very real possibility," Grigowski said. "We've had some additional inquiries from a Canadian company." He also believes the Trump administration will negotiate tariffs country by country and come up with something workable for the auto industry, creating a "path out" of his problems. "It's like COVID. When it first happened, we thought we'd have to shut our plant down. Then we saw a path out," Grigowski said. "Ultimately, if these tariffs were to stay in place and they drove volumes down dramatically, then yeah, we'd have to make adjustments. We have to hope cooler heads will prevail. We're in a good financial position that we can wait for a solution. I feel like it's a significant problem, but a problem we can start to work.' Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
Newsweek
2 hours ago
- Newsweek
Italy's 'Ultra Fast' Hyperloop Train Reaches Major Milestone
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. One of Italy's most ambitious transportation projects is set to begin testing after passing its feasibility study. The Hyper Transfer hyperloop project, on which research first began in 2013, will commence construction work on a test track in Veneto, spanning 10 kilometers (about six miles) between Padua and Venice. Why It Matters The hyperloop project is designed to transport passengers and cargo at record speeds of up to 1,200 kilometers per hour, thanks to the use of magnetic levitation through vacuums. The vacuum means there is no air resistance on the front of the vehicle, allowing transport tubes to move at very high speeds. The technology has been tested in various parts of the world, including India, but the construction of a test site in Italy would be a major breakthrough for the concept in Europe. What To Know The hyperloop project has completed its feasibility study phase, with Luca Zaia, the president of the Veneto region, announcing that the test track would be built in his area. Zaia told the Transportation Logistics Fair in Munich this week: "It is not a futuristic vision but a concrete project born in Veneto...A revolutionary technology, strongly desired by the Veneto Region, which is now entering its operational phase." A consortium of four companies is managing the project: HyperloopTT, a Los Angeles-based technology provider and designer; Webuild, Italy's largest engineering contractor; Leonardo, a multinational aerospace and defense monitor; and Hyperloop Italia, the body that licenses the infrastructure. Rendering of Italy's Hyper Transfer project from HyperloopTT, one of the companies working on the technology. Rendering of Italy's Hyper Transfer project from HyperloopTT, one of the companies working on the technology. HyperloopTT The test track will occupy a 10-kilometer stretch of land. It will be designed to carry both passengers and cargo, allowing the loop's safety systems and energy management technology to be properly tested. What People Are Saying HyperloopTT CEO Andrés de León said in a statement to Newsweek: "This is the moment HyperloopTT has been working towards since 2013. We thank the Italian government, the Veneto region, and CAV for their vision and commitment to sustainable innovation. "We've partnered with some of the best engineering and transportation companies in the world, all with deep roots in the region. We look forward to bringing this first of many hyperloop systems to the world." HyperloopTT COO Andrea La Mendola said: "Italy has always been a cradle of creativity, innovation, and progress, from the artistic brilliance of the Renaissance to the engineering prowess behind their high-speed trains. Today, we stand at the dawn of a new era, poised to redefine mobility once again with the 'Hyper Transfer' project. "This hyperloop system is not just about connecting Venice and Padua in record time; it is a testament to Italy's unwavering spirit of innovation and their commitment to sustainable and efficient transport." What Happens Next The testing process is expected to take several years, although engineers hope that parts of the infrastructure will be operational by 2030.
Yahoo
16 hours ago
- Yahoo
Road near bottlenecked I-77 Lake Norman exit to close for highway widening
Crews will temporarily close a road near a Lake Norman-area retail center anchored by Belk, Kohl's and Big Lots for the $249 million N.C. 150 widening project, state highway officials said Friday. Portestowne Way in Mooresville will be closed 8 a.m.-4 p.m. Monday, June 9, through Thursday, June 12, so crews can safely install a storm drain at the N.C. 150 intersection, according to the N.C. Department of Transportation. That's just east of Interstate 77 exit 36. Drivers will be detoured from Portestowne Way to Forester Street and Corporate Center Drive, and back onto N.C. 150. Crews plan to widen 15 miles of N.C. 150 from just west of the U.S. 21/N.C. 150 interchange in Mooresville to N.C. 16 Bypass in Catawba County. A 5.5-mile stretch from Greenwood Road in Terrell on the lake to U.S. 21 in Mooresville is under construction. Charlotte-based contractor Blythe Development LLC is expanding the highway from four to six lanes, officials said. Part of the stretch includes the old two-lane bridge over the lake. An additional bridge will carry westbound traffic, from Mooresville into Catawba County. Improvements to the bottlenecked I-77/N.C. 150 exit 36 interchange are planned.
