HomeMy WebLinkAboutNative Village of Mary's Igloo TEDC Project Narrative1
Unaatuq, LLC: Creating a Tribal Energy Business Structure
for the Economic Benefit of the Bering Strait Region
Native Village of Mary’s Igloo
Teller, Alaska
VIEW FROM FUTURE GEOTHERMAL POWER PLANT SITE
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Table of Contents
Executive Summary .................................................................................................................... 3
Project objective, Technical Description, and Scope of Work .................................................... 4
Unaatuq – Kawerak – Mary’s Igloo Relationship ....................................................................... 5
Tribal Capacity ........................................................................................................................... 8
Project Goals and Objectives ...................................................................................................... 9
Key Personnel & Project Roles .................................................................................................... 9
Scope of Work .......................................................................................................................... 11
Timeline for Project Activities................................................................................................... 13
Methods & Outcomes............................................................................................................... 13
Project Deliverables ................................................................................................................. 15
Conclusion & Benefits ............................................................................................................... 16
Glossary of Key Terms & Project Stakeholders ......................................................................... 18
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E xecutive Summary
The Native Village of Mary’s Igloo, a Federally recognized Alaska Native Tribe located in Teller,
Alaska, requests $91,100 to study the creation of a tribal energy business structure for Unaatuq, LLC. on
site at Pilgrim Hot Springs, the location of an abundant geothermal resource.
Unaatuq is a seven-member consortium of regional and tribal entities in the Bering Strait Region,
including the tribal consortium Kawerak, Inc. As a member of Kawerak, the Native Village of Mary’s
Igloo has a vested interest in the economic development of Unaatuq, which owns Pilgrim Hot Springs, a
well-known geothermal resource on the Seward Peninsula of northwestern Alaska. Pilgrim Hot Springs is
surrounded by the Tribal lands of Mary’s Igloo Native Corporation, as well as Bering Straits Native
Corporation. Mary’s Igloo tribal members, along with Native corporation shareholders, have strong
historical and cultural ties to the property, and are committed to the responsible development of the site.
In order to develop the renewable energy resources at Pilgrim Hot Springs, the Tribe, along with
Unaatuq and its supporting members, need to explore options for organizational structures, and create a
pathway for development. Energy is necessary to power base level infrastructure at the site, and to create
economic development opportunities for the region. It is the goal of this grant project to develop the
capacity of Unaatuq to provide the maximum economic benefits to its member organizations, directly
benefitting the residents of the entire Bering Strait Region.
During the year-long project period, the Native Village of Mary’s Igloo will work with Kawerak and
the selected contractor to complete the following deliverables:
• Strategic Planning Session for the Unaatuq Advisory Committee
• Economic Analysis for Energy Development Options and Scenarios
• Feasibility Study for an Energy Business Structure for Unaatuq
These deliverables will provide the organizational, regulatory, and transactional capacity needed to
increase the economic independence of Tribes of the Bering Strait Region, and increase Unaatuq’s
capacity to further energy resource development at Pilgrim Hot Springs.
This project will result in the readiness to develop renewable energy resources, increased
economic independence in an Opportunity Zone, and a replicable regulatory framework for other entities
in the region to follow. The deliverables produced will have immediate, exponential benefits for the
Bering Strait Region of Alaska, as Unaatuq works to achieve their mission statement: To promote the
wellbeing of our people through sharing, protecting, and responsibly developing the resources of
Pilgrim Hot Springs.
The Native Village of Mary’s Igloo requests that the funds be added to our compact funding
through Kawerak, Inc. so that they may act as a sub-recipient of this grant, and manage the project
objectives and goals contained in this proposal, according to our signed Tribal Resolution, which is
attached to this application.
The Tribal President of the Native Village of Mary’s Igloo, Lucy Oquilluk, is the Tribal Lead and
will oversee program activities for the Tribe. Amanda Toerdal will be the project director at Kawerak, and
Anahma Shannon will be her supervisor. Together they will coordinate all project activities, fiscal
matters, and all narrative grant reporting. Kawerak’s Chief Financial Officer, Donna Ray, and Revenue
Accountant, Dani Smithhisler, will submit financial reports in coordination with project staff.
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Project objective, Technical Description, and
Scope of Work
Unaatuq, LLC is a for-profit entity owned by five Native Corporations, one regional Tribal Consortium,
and one regional Community Development Quota corporation in the Bering Strait Region of northwestern
Alaska. Unaatuq owns Pilgrim Hot Springs, a well-known and widely explored geothermal resource
capable of producing at least two mega-watts of energy, with the potential for more.
It is the goal of Unaatuq to turn Pilgrim Hot Springs into a self-sustaining,
indigenous-owned business that is focused on ecotourism, agriculture, food
security, preserving history, and creating economic development opportunities for
the region – all powered by renewable energy.
The business name “Unaatuq” comes from the Inupiaq word, “Uunaqtuq,” meaning “it is warm or
hot.” The word “Uunaqtuq” has been used in local and regional contexts to refer not only to temperature,
but also as a locally-recognized place name for Pilgrim Hot Springs.
The geothermal resource at Pilgrim Hot Springs is the hottest geothermal resource in the State of
Alaska, not directly associated with a volcanic system. The thermal anomaly at Pilgrim is part of a belt of
over 30 known natural hot springs, stretching from the Seward Peninsula, through central Alaska, and
into Canada. This belt includes Chena Hot Springs, located outside of Fairbanks, which is the only
geothermal power plant in the state. When completed in 2006, Chena Hot Springs became the lowest-
temperature geothermal system of its kind.
At Pilgrim, the water is hotter than Chena. Temperatures have been measured up to 196 degrees
Fahrenheit (91 degrees Celsius) at Pilgrim Hot Springs, and according to the most recent exploration
work performed by Alaska Center for Energy and Power, Pilgrim could be expected to produce
approximately 2.5 megawatts of electric power, which is five times greater than the Chena Hot Springs
low-temperature geothermal system.
GEOTHERMAL WATERS IN NATURAL SLOUGH, KIGLUAIK MOUNTAINS IN DISTANCE
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Geothermal Exploration Timeline at Pilgrim Hot Springs
2010-2014 ALASKA CENTER FOR ENERGY & POWER DRILLING PROJECT AT PILGRIM HOT SPRINGS
Unaatuq – Kawerak – Mary’s Igloo Relationship
In 2009, Kawerak became a part-owner of Unaatuq, LLC, a consortium of seven organizations
who came together to purchase the Pilgrim Hot Springs property. As a member of Kawerak, the
Native Village of Mary’s Igloo has a vested interest in Unaatuq, and a strong motivation to see
successful energy development at the site. Of all twenty Tribes in the region, the Native Village
of Mary’s Igloo has the strongest historical ties to Pilgrim Hot Springs, which was a sacred site
to their ancestors for millennia.
According to their Local Economic Development Plan (LEDP), one of Mary’s Igloo top
ten priorities is to focus on alternative energy development projects, including geothermal energy
development at Pilgrim Hot Springs. The village of Teller has extremely high energy costs, with
TODAY
2010-2014 Alaska Center for Energy and Power Geothermal Exploration Project
1982 7-mile road constructed; 4 wells drilled up to 1001 feet at temperatures of 91°C
1980 Helicopter surveys and remote sensing studies of the greater Seward Peninsula
1979 The first major geothermal studies take place at Pilgrim Hot Springs
1970-1974 USGS performs initial evaluation of the resource at Pilgrim Hot Springs
1970's USGS designates Pilgrim as a known Geothermal Resource Area
1915 First recorded map & temperature measurements at Pilgrim Hot Springs
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residential electrical rates topping $0.54 per kilowatt hour and stove oil at nearly $7.00 per
gallon. If a substantial geothermal energy source were to be developed at nearby Pilgrim Hot
Springs, or on surrounding Tribal Lands, energy could be produced at a much lower cost with the
potential to power nearby villages, or offer relocation sites for interested residents.
In order to achieve their goals of developing renewable energy projects, Mary’s Igloo has
created the following action plan items, as part of their 2016-2021 LEDP:
• Mary’s Igloo needs to take an active role in Pilgrim Hot Springs project development
which may mean sending a tribal representative to be a part of exploration planning.
• Ensure good communication and coordination with the Mary’s Igloo Native
Corporation.
• Review prior agreements regarding land access negotiations so that current
exploration can proceed in a timely manner.
• Interested tribal college students should apply to work with the UAF team as they
explore the Pilgrim/Mary’s Igloo area.
• Mary’s Igloo will stay in good contact with UAF to ensure that they are well aware of
exploration data.
• Continue to seek ways to help individuals and local entities reduce energy costs and
install alternative energy systems to reduce costs.
Through this grant project, Mary’s Igloo will be able to address a majority of action items listed
in their LEDP, related to alternative & renewable energy development. In partnership with
Kawerak, the Tribe will have expanded opportunities to engage with Native Corporation owners
of Unaatuq, and realize opportunities for increased energy development.
Besides Kawerak, Unaatuq is comprised of six other organizations including Bering
Straits Native Corporation, Council Native Corporation, Mary’s Igloo Native Corporation,
Norton Sound Economic Development Corporation, Sitnasuak Native Corporation, and White
Mountain Native Corporation. Unaatuq is governed by a board of directors with representation
from each owner-organization.
About Mary’s Igloo
The Native Village of Mary’s Igloo is a
Federally recognized Alaska Native Tribe
located in Teller, Alaska, and part of the
Bering Strait Region of northwestern
Alaska. The Bering Strait Region consists
of the Nome Census Area tract number
02180000100, which is a Qualified
Opportunity Zone according to the United
States Treasury, Community Development
Financial Institutions Fund.
Mary’s Igloo tribal members are
part of a displaced community; the Tribe
has not always lived in Teller. The original BERING STRAIT REGION M AP
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village site was abandoned in the early 1900’s after the Spanish Flu Epidemic devastated the
community and wiped out over 70% of the Indigenous population. Relocation became necessary
when the school and the U.S. Post Office closed.
The majority of Mary’s Igloo tribal members relocated to nearby Teller, which is where
the tribal offices are located today. In 1973, the tribes of the Bering Strait Region came together
to form Kawerak, Inc. a non-profit entity with a mission to work for the benefit of all tribes and
residents of the region. As part of this self-compacting tribal consortium, the Native Village of
Mary’s Igloo is part of the greater Kawerak mission:
“To advance the capacity of our people and tribes for the benefit of the
Bering Strait region of Alaska, which is the homeland and waters of the
Yup’ik, Inupiaq and St. Lawrence Island Yupik Peoples.”
According to the Alaska Energy Authority FY2019 Power Cost Equalization Program
Statistical Report, Tribal Members living in Teller pay utilities to Alaska Village Electric
Cooperative, at an average rate of $0.54 per kilowatt hour. In the nearby hub community of
Nome, residents pay an average of $0.38 per kilowatt hour. While residents in our communities
enjoy a subsidy from the Power Cost Equalization Program which lowers the per kilowatt hour
cost significantly for the first 500kWh of use, the rates for our Tribal members are still over
200% higher than the national average.
Additional Historical Ties & Project Motivation
Mary’s Igloo Tribe has a strong motivation for seeing responsible development,
culturally-relevant activities, and a thriving economic influence in the region; specifically, at
Pilgrim Hot Springs. The motivation for this development, specifically for energy development
on site at Pilgrim Hot Springs, lies in our history.
People from the Native Village of Mary’s Igloo are known traditionally as Kauweramiut
(also spelled as Qawiaraqmiut) or "The People of Kauwerak” (also spelled Qawiaraq).
Kauwerak was originally located on the northwest bank of the Kuzitrin River, on the Seward
Peninsula, northeast of Nome. It was relocated forty miles southeast of Teller, and is one of the
closest communities to Pilgrim Hot Springs. All land bordering Pilgrim Hot Springs is owned
exclusively by Mary's Igloo Native Corporation and is considered a sacred site to the
Kauweramiut; including both shareholders and Tribal members.
The present site of Kauwerak was called “Aukvaunlook,” meaning “black whale,”
although the original village before the Gold Rush years (1899-1909) was located fifteen miles
downriver. During the gold prospecting boom, non-Natives renamed Aukvaunlook to “Mary’s
Igloo,” after an Alaska Native woman named Mary who welcomed miners, trappers, and other
newcomers into her home for coffee.
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Supplies for the gold fields upriver
were transferred onto river boats
here. A post office and store were
opened in 1901. By 1910, "Mary’s
Igloo" had become a large mixed
community of Kaweramiut, white
traders, miners, innkeepers,
missionaries, and support crews for
barges.
The flu epidemic of 1918-19 and a
tuberculosis epidemic two years later
devastated the community leaving
many children orphaned. A Lutheran
orphanage was built at nearby New
Igloo while a Catholic orphanage,
“Our Lady of Lourdes Mission,”
was created at nearby Pilgrim Hot
Springs in 1918 by Father Bellarmine Lafortune. The Mission operated for 20 years and closed
in 1941 after most of the orphans had grown up and moved away.
The Mary's Igloo Bureau of Indian Affairs school closed in 1948 and the Alaska Native
school was closed in 1952 for lack of students. The US Post Office and local store also closed in
1952. The traditional village of Aukvaunlook, or "Mary’s Igloo," is now a summer fish camp and
used by our Tribal members for subsistence purposes.
Today, many of the Kauweramiut and descendants of the original Native Village of
Mary’s Igloo orphans reside in Teller alongside members of the Native Village of Teller. Though
the Mary’s Igloo community no longer lives at the old Mary’s Igloo site, Pilgrim Hot Springs
and the surrounding lands are considered sacred and are under tribal protection.
Tribal Capacity
As part of Kawerak, the Native Village of Mary’s Igloo takes part in the regional effort to reduce
energy costs and improve the quality of life for residents. Lucy Oquilluk, Tribal President and
Tribal Lead on this project, is an elected member of the Bering Strait Regional Energy
Leadership Committee, and has presented to her community about energy saving ideas, energy
efficiency, and how to reduce high energy costs.
The Mary’s Igloo Tribal President, as part of the Bering Strait Regional Energy
Leadership Committee, insured that the Native Village of Mary’s Igloo had a strong presence in
energy capacity-building activities in the region over the past year, including quarterly Energy
Leadership Committee meetings, planning sessions for energy development, and contributing
ideas for future educational opportunities. In 2019, several of our Tribal members participated in
the Bering Strait Regional Energy Summit, and brought back valuable information about energy
efficient, energy development, and planning strategies to the community.
1907 IMAGE OF PILGRIM HOT SPRINGS
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There is great capacity for energy development at the Tribal level, as well as the regional
level in partnership with Kawerak. Our Tribe has high capacity to develop and manage activities,
including current efforts to construct a new, energy-efficient building to house a community and
cultural center, through a recently awarded grant from the Indian Community Development
Block Grant program from the U.S. Department of Housing and Urban Development. The Tribe
also manages an Indian General Assistance Program grant through the Environmental Protection
Agency, a grant we have managed successfully for over five years. Government matters are
managed in a consistent manner with regular board elections, updated ordinances and policies,
monthly Council meetings, and we place a strong focus on community engagement.
Project Goals and Objectives
Over the course of this grant project year, the Native Village of Mary’s Igloo will direct funds to
the tribal consortium Kawerak, Inc., which has a robust Environmental Program that oversees
various programs including the Kawerak Energy Program, and co-management activities related
to Pilgrim Hot Springs.
Kawerak will work with contractor DeerStone Consulting to develop the identified
project deliverables. The goal will be to determine the best path forward in developing,
managing, and selling the geothermal resources on site at Pilgrim Hot Springs.
The contractor DeerStone Consulting has been chosen because of their longstanding
working relationship with Kawerak and the tribes of the Bering Strait Region. Since 2018, Dr.
Brian Hirsch has provided technical assistance to the Kawerak Energy Program to develop
energy projects and assist with energy planning efforts for various projects in multiple Kawerak
communities.
With this grant project, the Native Village of Mary’s Igloo hopes to increase the business
capacity for Unaatuq, LLC to manage energy resources at Pilgrim Hot Springs. Capacity is
needed to further develop business planning activities, a utility structure, and regulations for
selling power at the future geothermal power plant.
Key Personnel & Project Roles
The Tribal President of the Native Village of Mary’s Igloo, Lucy Oquilluk, is the Tribal Lead
and will oversee program activities for the Tribe. President Oquilluk oversees project activities
for Mary’s Igloo Tribal Members under various grant projects including the EPA IGAP program
and ICDBG program.
Tanya Ablowaluk is the Tribal Coordinator for Native Village of Mary’s Igloo, and will assist
with Project Administration, Grant Reporting, and act as Coordinator between Kawerak, Inc. and
the Tribe. Tanya has been the Tribal Coordinator for the Native Village of Mary’s Igloo since
2016 and provides administrative support to the Tribe at the local level to facilitate information
exchange and delivery of services from Kawerak, Inc. She is responsible for office operations for
the Mary’s Igloo Traditional Council.
Amanda Toerdal is the Pilgrim Hot Springs General Manager for Kawerak, Inc. and manages the
Pilgrim Hot Springs property as well as project activities related to co-management of Unaatuq.
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She will be the Project Director for this program and oversee all grant activities in partnership
with Mary’s Igloo Tribe. Ms. Toerdal previously worked as the Energy Development Specialist
at Kawerak, Inc. and has experience in renewable energy projects and grant management. She is
committed to working with the Tribes of the Bering Strait Region and furthering the visions of
Kawerak, Inc. and Unaatuq, LLC.
Anahma Shannon is the Environmental Program Director and oversees the Pilgrim Hot Springs
General Manager, as well as four other programs including the EPA Indian General Assistance
Program (Backhaul and Recycling), Emergency Preparedness, Tribal Response (Brownfields),
and the Energy Program (Department of Energy-Indian Energy Technical Assistance Program).
Donna Ray is Kawerak’s Chief Financial Officer and will manage the financial reporting for
Kawerak, Inc under this program. Donna oversees a crew of nine financial team members that
manages Kawerak’s annual budget of $38.8 million. Donna is responsible for annual financial
reporting, audit activities and cash flow management across the corporation. Kawerak is
fortunate to have zero audit findings in the last several years.
Dani Smithhisler is a Revenue Accountant at Kawerak, Inc and will submit financial reports in
coordination with the Chief Financial Officer and Kawerak project staff. The project director will
work with Mary’s Igloo Tribal staff to provide financial information to Dani for reporting
requirements.
Dr. Brian Hirsch is the President and Co-Founder of DeerStone Consulting LLC, a renewable
energy consulting firm focused on microgrid, utility, and community development in remote
locations. Kawerak will contract DeerStone to complete the project activities. Dr. Hirsch will be
the main contact for DeerStone Consulting and manage contractor activities as described in the
scope of work. He has been involved in diverse energy initiatives throughout the
Kawerak/Bering Strait region as well as other parts of Alaska and elsewhere, including with
development of intertribal energy organizations and development of renewable energy resources
for community and economic development.
Tashina Duttle is the owner of Savak Consulting, and is part of the DeerStone Consulting team.
Ms. Duttle will work with Kawerak, Inc. and Mary’s Igloo to complete the project deliverables
and provide support to project staff, directly related to energy capacity building and the
feasibility study for energy business structure development. As well, Ms. Duttle will lead the
community engagement component and participate in the strategic planning session as described
in the proposal. She has expertise in community and infrastructure development working in
remote communities all across Alaska through her current consulting work and in her previous
positions as Program Manager for Alaska Native Tribal Health Consortium’s Rural Energy
Initiative and as Project Coordinator for the Cold Climate Housing Research Center.
Alan Mitchell is the owner of Analysis North, and is part of the DeerStone Consulting team. Mr.
Mitchell will work with Kawerak, Inc. and Mary’s Igloo to complete the economic analysis
portion of the scope of work. Specifically, he will collect data and perform analysis tailored to
the individual development scenarios identified in the Strategic Planning Session to help project
stakeholders make informed decisions on the challenges and opportunities associated with each
scenario. His analysis will contribute to the overall Feasibility Study and each development
pathway identified. Mr. Mitchell has been performing energy and economic analysis for over 30
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years and has contributed to past Kawerak and DeerStone projects in the region, including
conducting a techno-economic evaluation of converting excess wind-to-heat for Nome Joint
Utilities and the Nome School District. He is the author of AKWarm, the home and commercial
building energy efficiency rating software used by the state of Alaska to conduct certified energy
audits and has been involved in numerous aspects of energy technology, monitoring, and
evaluation initiatives throughout Alaska and elsewhere.
Please see resumes file in the Project Narrative Attachments for more information about key personnel.
WELL HEAD NEAR HISTORIC CHURCH COMPLEX AT PILGRIM HOT SPRINGS
Scope of Work
DeerStone Consulting will work with all project participants and stakeholders, led by the Native
Village of Mary’s Igloo and Kawerak, Inc., to assist in the following tasks and deliverables:
• Facilitate a Strategic Planning Session with Unaatuq Board members with advisory
support from the Native Village of Mary’s Igloo and the Bering Strait Regional Energy
Leadership Committee to define scenarios and energy development options for Pilgrim
Hot Springs and more broadly for the Kawerak/Norton Sound region.
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• Perform an Economic Analysis of the income potential and requirements for an energy
provider as well as a load analysis for various prospective businesses and enterprises
based on development scenarios identified by project participants and stakeholders.
• Conduct a Feasibility Study to determine an appropriate business structure and define
development options for Unaatuq, LLC to optimize and manage the locally available
energy resources—including possibly geothermal, solar, biomass, hydropower, and
wind—for a sustainable economy and business foundation for Pilgrim Hot Springs.
The objectives for the study are broken down as follows:
• Determine what type of business structure is best suited to the energy development goals
of the region (profit vs. nonprofit)
• Develop options for a conceptual model for selling geothermal power at Pilgrim Hot
Springs to outside entities
• Outline the economic benefits of developing a tribally-led business utility structure
including expected income, cash flow, and regional economic benefits
• Determine how the business structure could also develop regulations, best practices, and
resources to other regional utilities and standalone power plants
• Engage Unaatuq with the Bering Strait Regional Energy Leadership Committee as an
advisory group regarding energy development strategies
Assumptions
1. DeerStone Consulting team includes Brian Hirsch, Devany Plentovich, Tashina Duttle,
Alan Mitchell, and Peter Crimp.
2. DeerStone will work closely with designated staff from the Tribe and Kawerak. Amanda
Toerdal or her delegate will be primary Point of Contact for the Tribe and Kawerak and
Brian Hirsch or his delegate will be primary Point of Contact for DeerStone.
3. The Economic Analysis will be a stand-alone activity but will be included as a major
component of the broader Feasibility Study. The Economic Analysis will primarily be a
techno-economic optimization of various energy options designed to meet different load
profiles based on expected business activity at Pilgrim Hot Springs. The Feasibility Study
will incorporate the Economic Analysis and Strategic Planning outputs into a much
broader review of development pathways, approaches, institutional considerations, and
overall strategies to support goal- and value-driven development of Pilgrim Hot Springs
to serve as a role model for the region.
4. All Unaatuq partners will send at least one representative available for the Strategic
Planning Session, which will take place in Nome, Alaska, as travel restrictions allow,
including a site tour of Pilgrim Hot Springs.
5. The Strategic Planning Session will be for 2 days in-person (if possible, or 1 day if
virtual), and will require 1-2 person-days of preparation and 1-2 person-days of follow-up
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from DeerStone (depending on if in-person or virtual), including a write-up of the event,
follow up next steps, and outreach support to participants before and after.
Timeline for Project Activities
Methods & Outcomes
Though additional work is necessary to fully characterize the geothermal and other energy
resources at Pilgrim Hot Springs, we know that there is a high quality and unique energy,
economic, and community development opportunity there. The challenge is to convert this
opportunity into a shared benefit and reality for multiple stakeholders. The process and
deliverables described here would outline the creation of a tribally-led business utility structure,
most likely a microgrid set-up, to focus on the development of natural, cultural, organizational,
and financial resources in the region.
Assumptions
The project proposed here is premised on the following assumptions and relationships:
• Pilgrim Hot Springs has an abundant, commercially viable, low cost, clean and renewable
energy resource that will attract Tribal members, Native corporation shareholders, and
businesses to the site.
• Unaatuq, LLC, as a consortium of regional stakeholders with traditional, contemporary,
and economic ties to Pilgrim Hot Springs, will lead the development effort through its
Phase I -
Months 1
•Contracts are negotiated and signed
•Tribe and Kawerak coordinate project activities with DeerStone Consulting
Phase II -
Months 2-3
•Strategic Planning Session takes place (in-person or virtually)
•Unaatuq Advisory Team engages with Bering Strait Regional Energy Leadership
Committee
Phase III -
Months 3-10
•Strategic Planning Session helps formulate economic analaysis
•Economic Analysis Work
•Feasibility Study Work
Phase IV -
Months 11-12
•Deliverables Produced in Final Versions
•Final Reports & Summaries Presented to Tribal Council, Kawerak Board of
Directors, Unaatuq Board of Directors
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own capacity building, outreach, and laying a foundation for others to support and
mutually share benefits.
• Energy, water, food, shelter, and eventually tourism and hosting others to experience the
beauty and history of Pilgrim Hot Springs will be the areas of focus for community and
economic development.
With these in mind, the broad project objective for this TEDC initiative is to leverage energy
development through detailed technical and economic planning that requires contribution
from many entities into a shared vision for cultural healing and re-connection to our land.
Hence, our methods are based on collaboration and establishment of working protocols with
all stakeholders with a vested interest in Pilgrim Hot Springs.
Methods
The consortium of stakeholders and other project participants described in this proposal who
have an interest in supporting Unaatuq, LLC will conduct the following activities:
1. Convene for a Strategic Planning Session to identify “development scenarios” for
Pilgrim Hot Springs. The planning session participants will use traditional and modern
communication techniques to select preferred outcomes for re-establishing a presence at
the site. Guided by an understanding of the regional potential and impact of this effort,
defining these outcomes will be based on energy availability and development
opportunities as well as cultural and social expectations of participants for Pilgrim Hot
Springs and the Bering Strait region.
Prepare a Development Scenarios Report based on the input and activities from the
Strategic Planning Session. This report will be circulated to all participants for feedback,
approval, and buy-in. This will guide the remaining activities and provide performance
metrics for the final feasibility study and report.
Conduct Economic Analysis for energy and related developments for each of the
identified scenarios. This analysis will be led by our project consultants who have both
energy and economic expertise and are familiar with the region’s development
opportunities and challenges. This analysis will frame the feasibility study and provide
critical information for decision-making and capacity development prioritization for
Unaatuq, LLC. The appropriate business and regulatory structure along with
transactional framework for energy development will guide the economic analysis,
incorporating past energy resource availability studies as well as consideration of energy
options beyond just geothermal, if appropriate. The Analysis will estimate the cost of
energy under different assumptions and scenarios and compare that to current energy
prices in the region, which are extremely high due to diesel dependence and small scale,
remote infrastructure with limited support for operation and maintenance.
Draft a Feasibility Study that incorporates the Economic Analysis outcomes from each
scenario and is guided by the cultural and social parameters identified in the Strategic
Planning Session. The Feasibility Study and Report will identify development pathways
for each of the preferred scenarios and offer recommendations on next steps,
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opportunities for further collaboration among project stakeholders, and further capacity
building that can support Unaatuq, LLC to achieve its stated goals and objectives.
2. Distribute the Feasibility Study among stakeholders to advance the effort and marshal
commitments for next steps in the development process. The Feasibility Study will be
presented as a PowerPoint presentation and discussed in detail at a Stakeholder Meeting
to solidify group support and buy-in. We will collectively review both the outcomes and
the process to ensure it adhered to the original intent from the Strategic Planning
Session. Funding and additional resources will be identified to continue the capacity
development of Unaatuq, LLC and to further on-the-ground development at Pilgrim Hot
Springs.
Outcomes
1. Unaatuq, LLC and its stakeholders, including the Tribes and Native corporations of the
Bering Strait Region, will increase their capacity to develop low-cost energy solutions
and economic development opportunities for tribal members and shareholders.
2. There will be an increase in shared commitment in site development at Pilgrim Hot
Springs between local, regional and statewide entities; including an enhanced working
relationship amongst stakeholders.
3. The renewable energy resources available at Pilgrim Hot Springs will present new
opportunities to the Bering Strait Region that encourage organizational development,
cultural and historical preservation, food security, and energy independence.
Project Deliverables
During the year-long project period, the Native Village of Mary’s Igloo will work with Kawerak
and selected contractor(s) to deliver a Feasibility Study for an Energy Business Structure for
Unaatuq, an Economic Analysis for Energy Development, and a Strategic Planning Session
for the Unaatuq Advisory Group. These deliverables will provide the organizational,
regulatory, and transactional capacity needed to increase the economic independence for Tribes
of the Bering Strait Region by increasing Unaatuq’s capacity to further energy resource
development at Pilgrim Hot Springs.
Strategic Planning Session
Economic Analysis
Feasibility Study
Native Village of Mary's Igloo - TEDC
16
Status Updates and Reporting
Kawerak, Inc. will work directly with the Native Village of Mary’s Igloo to prepare quarterly
reports and status updated to present to the DEMD-IEED office about the strategic planning
session, economic analysis, and feasibility study development over the course of the grant
project year. The Tribe and project staff will communicate frequently with contractor to ensure
adherence to scope of work and timely project completion.
Project staff at Kawerak and the Native Village of Mary’s Igloo will collaborate to
develop project reports to present to the Mary’s Igloo Tribal Council and Kawerak Board of
Directors at least two times during the project year. They will also work with Kawerak’s
Accounting Department to complete all financial and narrative reporting for the grant funding.
The final TEDC project report will include the three deliverables listed in the section above.
Specifically:
- A report of the strategic planning session carried out by the grantee for the Unaatuq
Advisory Committee; including the information present to the Tribal Council Members,
Unaatuq Board of Directors, and Kawerak Board of Directors
- A Development Scenarios Report, which will be a product of the Strategic Planning
Session, and used to influence the Economic Analysis and Feasibility Study activities of
the TEDC grant project
- A document containing the results of the Economic Analysis for Energy Development on
site at Pilgrim Hot Springs; which will use information gathered in the strategic planning
session to formulate economic strategies
- A document containing the results of the Feasibility Study for an Energy Business
Structure for Unaatuq; which will help the Tribe determine which organizational
structure will best suit Unaatuq and regional goals for sustainable and responsible energy
development
Conclusion & Benefits
This project will increase the Native Village of Mary’s Igloo’s capacity to collaborate
with Unaatuq, LLC regarding the development of the Pilgrim Hot Springs site and increase our
capacity to manage the renewable energy resources located on our ancestral lands, especially if
we ever decide to relocate back to our ancestral lands near Pilgrim Hot Springs.
If developed to its potential, all current and future infrastructure on the site would have
access to clean, renewable and affordable energy. With a sustainable energy solution such as
geothermal power, the tribes of the Bering Strait Region would be working towards fulfilling
goals set forth in the 2009 Strategic Energy Plan as well as the 2015 Bering Strait Regional
Energy Plan: to decrease the dependency on fossil fuels for the Bering Strait Region.
The development of geothermal power for Unaatuq, LLC at the Pilgrim Hot Springs site
would have a significant economic impact for the Tribe. The geothermal resource is suggested to
Native Village of Mary's Igloo - TEDC
17
extend greatly beyond the 320 acres of Unaatuq land. There is the potential to find an even
stronger resource, deep within the Tribal lands of Mary’s Igloo Native Corporation or Bering
Straits Native Corporation, creating expanded opportunities for partnerships in energy and
economic development between Tribal entities of the region.
With strong cultural and historical ties to the property, Mary’s Igloo Tribal Members and
Native Corporation shareholders, in partnership with Unaatuq, LLC, will have the opportunity
for small business development activities (powered by geothermal energy), potential
employment opportunities at year-round and/or seasonal ecotourism facilities on site at Pilgrim
Hot Springs, and potential for future camping sites, cultural sites, and relocation sites.
Through the Tribal Energy Development Capacity grant from the Bureau of Indian
Affairs, Department of Energy and Mineral Development, Indian Energy and Economic
Development, the Native Village of Mary’s Igloo will have the opportunity to expand tribal
energy capacity for energy resource development in partnership with Unaatuq, LLC and
Kawerak, Inc. and be able to achieve our goal to seek out alternative energy resources. With
geothermal energy developments on site at Pilgrim Hot Springs, Mary’s Igloo may have a
pathway forward for seasonal relocation near our original village site, or even permanent
relocation opportunities for our Tribal members. Quyaana!
VIEW FROM FARMING LANDS LOOKING SOUTH TOWARDS KIGLUAIK MOUNTAIN RANGE
Native Village of Mary's Igloo - TEDC
18
Glossary of Key Terms & Project Stakeholders
Mary’s Igloo Traditional Council – a term used to refer to the Tribal Council of the Native Village of
Mary’s Igloo
Native Village of Mary’s Igloo – a term used to refer to the Mary’s Igloo Tribe, also known as Kauwerak,
Qawiaraq
Mary’s Igloo Local Economic Development Plan – a five -year plan developed by tribes that include
prioritized community and business development projects as well as strategies for implementation.
Kawerak’s Community Planning and Development Division assists with the development of these plans.
Mary’s Igloo LEDP can be viewed online at: https://kawerak.org/wp-content/uploads/2018/10/Marys-
Igloo-LEDP-2016-2021-final-ready-for-publication.pdf
Kawerak, Inc. – a non-profit tribal consortium organized during the Alaska Native Claims Settlement Act
(ANCSA); part owner of Unaatuq, LLC and co-manager of Pilgrim Hot Springs https://kawerak.org
Unaatuq, LLC – a seven entity consortium of owners who purchased the Pilgrim Hot Springs site
Pilgrim Hot Springs – the site owned by Unaatuq, LLC which is the location of a geothermal resource,
recreational hot springs bathing pool(s), and an historic orphanage https://www.pilgrimhotsprings.net
Bering Straits Native Corporation – a for-profit regional corporation set up by ANCSA, part owner of
Unaatuq, LLC https://beringstraits.com
Council Native Corporation – a for-profit village corporation set up by ANCSA, part owner of Unaatuq,
LLC
Mary’s Igloo Native Corporation – a for-profit village corporation set up by ANCSA, part owner of
Unaatuq, LLC
Norton Sound Economic Development Corporation – a non-profit Community Development Quota
organization, part owner of Unaatuq, LLC, www.nsedc.com
Sitnasuak Native Corporation – a for-profit village corporation located in Nome, set up by ANCSA, part
owner of Unaatuq, LLC https://snc.org
White Mountain Native Corporation a for-profit village corporation set up by ANCSA, part owner of
Unaatuq, LLC
Alaska Center for Energy and Power (ACEP) – an applied energy research program based at the
University of Alaska Fairbanks. ACEP provides leadership in developing energy systems for islanded,
non-integrated electric grids and their associated oil-based heating systems. Their work with Pilgrim Hot
Springs can be viewed online at:
http://acep.uaf.edu/projects-(collection)/pilgrim-hot-springs-geothermal-assessment.aspx
Native Village of Mary's Igloo - TEDC
Native Village of Mary's Igloo - TEDC
Native Village of Mary's Igloo - TEDC
Native Village of Mary's Igloo - TEDC
Native Village of Mary’s Igloo – TEDC Grant Budget Narrative
1
Unaatuq, LLC: Creating a Tribal Energy Business Structure for the
Economic Benefit of the Kawerak Region
Tribal Personnel Rate Hours
Mary's Igloo Project Administrator – Tribal Coordinator $ 25.75 300 7,725.00
Tribal Fringe Base
Mary's Igloo Project Administrator – Tribal Coordinator $ 7,725.00 0.35 2,703.75
Total Personnel & Fringe 10,428.75
Contractor (Sub-Recipient)
Kawerak, Inc Project Management
22,781.25
Contractor
Deerstone Consulting, LLC
52,500.00
Total Sub-Recipient & Contractual 75,281.25
Other Cost Amt
R/T Airfare from Anchorage to Nome $ 350.00 4 1,400.00
Rental van for meeting participants $ 250.00 1 250.00
Stipend for Board Member participation $ 225.00 7 1,575.00
Conference food, supplies, printed materials $ 800.00 1 800.00
Per diem for participants $ 195.00 7 1,365.00
Total Other 5,390.00
Total Grant Budget 91,100.00
The Native Village of Mary’s Igloo, a Federally recognized Alaska Native Tribe located in Teller,
Alaska, requests $91,100 to study the creation of a Tribal energy business structure for Unaatuq, LLC. on
site at Pilgrim Hot Springs, the location of an abundant geothermal resource.
The Native Village of Mary’s Igloo requests that the funds be added to our compact funding
through Kawerak, Inc. so that they may act as a sub-recipient of this grant, and manage the project
objectives and goals contained in this proposal, according to our signed Tribal Resolution which is
attached to this application.
Tribal Personnel & Fringe
Tribal Personnel and Tribal Fringe rates are calculated at $7,725 and $2,703.75, respectively, for
a total of $10,428.75. These line items correspond to project activities to be completed by the Native
Village of Mary’s Igloo.
Mary’s Igloo Tribal Staff will be responsible for coordinating project activities with Kawerak,
Inc. and the selected contractor, DeerStone Consulting. The hours for Tribal Personnel are budgeted at a
base salary of $25.75 per hour for the Tribal Coordinator, for a project administration commitment of 300
hours related to the TEDC project. Fringe rates are calculated at 35%, and include company paid benefits
of Medical, AD & D, Basic Life, Dental, LTD, Pension, Pension Fee, STD, Vision, FICA, MEDIA,
SUTA:AK. Holidays, personal leave, and subsistence leave are also included in employee benefits
provided to the Tribal Coordinator.
Native Village of Mary's Igloo - TEDC
Native Village of Mary’s Igloo – TEDC Grant Budget Narrative
2
Contractor (Sub-Recipient) Kawerak, Inc.
For purposes of this budget, the “sub-recipient” costs associated with Kawerak, Inc have been
included in the “contractor” section of the budget. The Pilgrim Hot Springs General Manager Amanda
Toerdal, at Kawerak, Inc. will commit 450 hours of her time to TEDC grant project activities. Her salary
is budgeted at $37.50 per hour, for a total of $16,875.00. Fringe rates are calculated by the employer at
35% of the salary base, for a total of $5,906.25. Fringe rates include company paid benefits of Medical,
AD & D, Basic Life, Dental, LTD, Pension, Pension Fee, STD, Vision, FICA, MEDIA, SUTA:AK.
Holidays, personal leave, and subsistence leave are also included in employee benefits provided to
Kawerak employees. The total amount budgeted for Kawerak, Inc as a sub-recipient (contractor) under
this grant project is $22,781.25.
Kawerak Project Manager (as sub-recipient)
Pilgrim Hot Springs General Manager $ 37.50 450 $ 16,875.00
Fringe Rate Base
Pilgrim Hot Springs General Manager $ 16,875.00 0.35 $ 5,906.25
$ 22,781.25
Contractor DeerStone Consulting, LLC.
During the year-long project period, the Native Village of Mary’s Igloo will work with Kawerak and
the selected contractor to complete the following deliverables:
• Strategic Planning Session for the Unaatuq Advisory Committee
• Economic Analysis for Energy Development Options and Scenarios
• Feasibility Study for an Energy Business Structure for Unaatuq
These deliverables will provide the organizational, regulatory, and transactional capacity needed to
increase the economic independence of Tribes of the Bering Strait Region, and increase Unaatuq’s
capacity to further energy resource development at Pilgrim Hot Springs.
The Native Village of Mary’s Igloo asks for funds to be directed to sub-recipient Kawerak, Inc. in
order to negotiate a contract with DeerStone Consulting, LLC to fulfill the grant activities as described in
the scope of work of the project narrative. All DeerStone hours are budgeted at $175/hr. and a break-out
of the included activities is listed here:
DeerStone Consulting Contractor
Activity Est. Hours Total ($)
Feasibility Study 150 26,250
Economic Analysis 100 17,500
Strategic Planning Session 50 8,750
Total 300 52,500
Other Budget Items (Plan A)
As part of the Scope of Work and Project Activities, the Tribe will work with Kawerak, Inc and
DeerStone to hold a Strategic Planning Session for Unaatuq Board of Directors Advisory Committee, as
well as Mary’s Igloo Tribal Members and the Bering Strait Regional Energy Leadership Committee. For
purposes of this session, there are costs associated with bringing together these folks for an in-person
Native Village of Mary's Igloo - TEDC
Native Village of Mary’s Igloo – TEDC Grant Budget Narrative
3
meeting, as travel restrictions allow. These costs are not listed under the “Travel” section of the budget,
because the stakeholders and contractors are not personnel of the Tribe.
The budget for this planning session is calculated as follows:
Unaatuq Strategic Planning Session – Plan A: In-Person Session
Item Cost Quantity Total
R/T Airfare from Anchorage to Nome $ 350.00 4 1,400.00
Rental van for meeting participants $ 250.00 1 250.00
Stipend for Board Member participation $ 225.00 7 1,575.00
Conference food, supplies, printed materials $ 800.00 1 800.00
Per diem for participants $ 195.00 7 1,365.00
Total Other 5,390.00
There are two Unaatuq board members living in Anchorage, and the airfares for two contractor
participants are also included in this budget, for a total of $1,400 for four round-trip tickets between
Anchorage and Nome. In order to meet at Pilgrim Hot Springs, a rental van is needed to transport
participants from Nome to the site, for a cost at $250 for an 8-passenger van. A stipend for the seven
Board Members to participate in the day-long planning session is budgeted at $225 per person, for a total
of $1,575. Conference food, beverages, supplies, and printed materials for the meeting are budgeted at
$800 total for the one strategic planning session. This includes food and supplies for the 7 Unaatuq board
members, contractors, Kawerak Project Staff, Mary’s Igloo Tribal Members, and other invited guests. Per
diem for the 7 Unaatuq Board Members is budgeted at $195 per person for the one-day planning session.
Standard per diem rates at Kawerak are $60 per travel day and $75 per working day. The total cost for
“Other” budget items is $5,390.
Other Budget Items (Plan B)
In the event that the in-person Strategic Planning Session for the Unaatuq Board and Advisory Committee
members cannot take place due to travel restrictions, the costs associated directly with travel will be used
to run a virtual meeting platform for all participants. This may include the use of audio and video
equipment, and an online meeting platform such as Zoom, Teams, Skype or GoToMeeting. Other costs
associated with a virtual or remote session will include additional printed resources, and shipping all
printed materials to participants in advance of the session. Many community members in the Bering Strait
Region may not have access to a strong internet connection, so teleconference platforms will also need to
be organized. All participants will still be paid a stiped for attendance, however the one-day in-person
session may need to be broken up into a two-day or three-day virtual session to allow time for breaks and
technological delays. The cost of a virtual session is expected to be similar to the in-person session.
Native Village of Mary's Igloo - TEDC
Critical Information Page
Bureau of Indian Affairs Tribal Energy Development Capacity (TEDC) Grant
Unaatuq, LLC: Creating a Tribal Energy Business Structure for the
Economic Benefit of the Kawerak Region
Lucy Oquilluk, the Tribal President of the Native Village of Mary’s Igloo, is the designated
Tribal representative for this project. Her contact information is as follows:
Lucy Oquilluk, President
Native Village of Mary's Igloo
Aka: Mary’s Igloo Traditional Council
P.O. Box 546
Teller, AK 99778
PH: 642-3731
FAX: 642-2189
Email: tc.mi@kawerak.org
The Tribe (Native Village of Mary’s Igloo) is registered in SAM.gov.
Federal DUNS number: 174986112
The Tribe has an active ASAP number. The recipient ID is 0220424
The project is located in Nome county, in the Bering Strait Region of Alaska.
The Congressional District is Alaska – At Large.
Native Village of Mary's Igloo - TEDC
Native Village of Mary's Igloo - TEDC
Native Village of Mary's Igloo - TEDC