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Cover image for article: Draft study backs regional co-ops for rural Alaska tank farms, comments due Friday

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Draft study backs regional co-ops for rural Alaska tank farms, comments due Friday

by Cale Green · draft by Maggie AlaskaNews(4w ago)
3 min readAlaska

The Denali Commission is taking public comments through Friday, Oct. 16, on a draft study that recommends regional cooperatives as the preferred way for rural Alaska communities to share bulk fuel purchasing, maintenance and training while keeping ownership of their own tank farms.

The draft study, dated Sept. 9 and prepared for the commission and the Alaska Energy Authority, asked whether pooling the work of rural Alaska's bulk fuel facilities could cut costs, extend their life and reduce spill risk. Its answer: "Yes. Working together can save money."

Its starting point is that the tank farms it examined aren't charging enough to replace themselves. Tank farms in the study's data charged an average of $7.68 a gallon. Its figures for independent operators come from nine publicly owned tank farms, including Allakaket, Ambler and Golovin. Without financing, a small facility operating on its own would need to charge $11.51 a gallon to cover routine upkeep and save enough to replace the facility when it wears out. In a regional cooperative, the study estimates, that figure would be $9.71.

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