mike media

Fueling a crisis:
Closure of tank farm could cripple Kiana

July 15, 1993

Michael Gerhardt
Arctic Sounder

KIANA — You can only pull up to the pump at one place in Kiana.

The only source of gasoline in this village of 435 is the Kiana Trading Post. Gas from Don and Margaret Dorsey's business keeps snow machines, cars and trucks moving year-round.

The couple, like most other owners of tank farms in rural Alaska, have long-known that their facility did not comply with many regulations that are routinely enforced in urban areas. But just as the cost of fuel is higher in the Bush, so is the cost of making repairs that many feel are dictated by the needs of urban areas.

"With this tank farm — even with the improvements we're going to make this summer — we're sitting on a time bomb," Don Dorsey said.

Regulations that were once routinely ignored in rural Alaska are now beginning to be enforced. Dorsey is concerned that the costs of complying with those regulations will force him to shut down his tank farm.

"It would be a hardship for us here because that store is the store that sells gasoline," said Vera Atoruk, Kiana Traditional Council administrator. "We use gas to hunt, to get wood, to travel between villages and for transportation in town."

Kiana needs gas for their fire truck and for other emergency vehicles, Atoruk said. "If we didn't have gas and we had an emergency, that would be a problem for us."

Kiana Mayor Maurice Minks said the city was unsure what would happen if the trading post stopped selling gas. There is no one else who could easily step in to sell the fuel, he said.

"I don't know anybody who doesn't buy from us," Dorsey said. "It's my tank farm, but it's not just my problem — it's a community problem."

Several months ago, the U.S. Coast Guard threatened to shut down the Dorsey's fuel tank farm. The facility was one of dozens in Alaska cited by the federal agency, which regulates facilities that receive fuel from barges.

The Coast Guard decided to postpone any action for one year, giving the state time to figure out how to deal with tank farm problems that could cost hundreds of millions of dollars to fix.

In the meantime, the Coast Guard required tank farms owners to file an interim operations manual with the agency. The manual is a one-page form asking for information about spill cleanup equipment, the most recent hydrostatic testing date and the name of the person in charge of overseeing fuel transfers.

Dorsey filed its interim operations manual and was sent an interim letter of compliance, allowing the gas to continue flowing in Kiana.

But Dorsey knew that if one regulatory agency came knocking, others were soon to follow.

"You can't have one regulatory agency out there seeking compliance without all the other agencies jumping into the hoop," he said.

In early June, Don Dorsey received another letter — this one from the Alaska Fire Marshal's office.

The fire marshal, part of the Department of Public Safety, is in charge of fire prevention for the state. Their regulations have earned the agency a reputation as one of the toughest to comply with.

"It's really the most serious one. Basically, they have the broadest set of regulations," Dorsey said. "They're like a bulldog. Once they got their teeth sunk into you, they can't let go. The courts will hold them responsible once they know about you."

Fire marshal regulations require Dorsey to move his tanks and to install dikes, according to a letter he received from the state fire marshal's office in Anchorage.

"The major problems that are readily noticeable are tanks too close to property lines, too close to buildings on the same property, gas dispensing not in compliance, and no dikes," the letter read.

Dorsey has been given until July 21 to come up with a plan to bring his tank farm into compliance with fire marshal regulations.

But Dorsey is not sure whether he can afford the expensive changes required by the state agency. Making the changes, he said, could put him out of business. Even if he decides to make the necessary changes, Dorsey said he would have to raise both fuel and grocery prices to cover the costs.

Dorsey now sells his gas for $2.69 per gallon. The costs of complying with the fire marshal regulations could send that price soaring to $4 per gallon, he said. And since that would probably cause people to haul gas up the Kobuk River from Kotzebue, the price would go up even more to reflect a smaller customer base, he said.

Dorsey has hired Anchorage-based consultant Jim St. George to help figure out what it would take to comply with the fire marshal regulations.

St. George said both Dorsey and Kiana are in a bind.

"He's not going to be able to come into compliance," he said. "And it's the community that's going to get hurt."

And it is not just Dorsey's tank farm that is in trouble, according to St. George. No tank farms in Kiana or in most of the rest of rural Alaska could meet the standards of the fire marshal, he said. The only reason other tank farms are not being threatened with closure is because the fire marshal has not been actively seeking out-of-compliance tank farms.

Dorsey's was brought to the attention of the fire marshal by a village public safety officer, according to a regional supervisor with the fire marshal's office.

"When we get a complaint, like we did with Mr. Dorsey, we investigate the complaint," said Bill Davis, southcentral regional supervisor.

VPSOs are in some respects an extension of the fire marshal, Davis said.

Dorsey is just playing a waiting game at this point, but is worried he will have to shut down his fuel operation this fall. He recently wrote a letter to Mayor Minks and the City of Kiana explaining his predicament and asking the city to take action.