Tuesday, February 9, 2010

Adak fight boils over into new arena

Deckboss visitors know we've been keeping pretty close tabs on the standoff between Adak Seafood and its reluctant landlord, Aleut Enterprise.

Thus far the dispute has been waged vigorously in the bankruptcy court, the state courts and U.S. District Court.

Now Adak Seafood is taking the fight to a new arena, filing this
formal complaint today with the Regulatory Commission of Alaska.

A lawyer for Adak Seafood, which is trying to re-establish fish and crab processing in Adak Island's lone packing house, accuses Adak Petroleum of abusing its monopoly by refusing to sell diesel fuel to the plant.

Adak Petroleum, the island's only fuel supplier, is an Aleut Enterprise subsidiary.

Without the fuel to run a backup generator, tons of seafood could rot and go to waste in the event of an electrical power outage, Adak Seafood's complaint says.

Indeed, it appears this is the landlord's intent — a catastrophic loss "to kill" Adak Seafood, contends company lawyer Brewster Jamieson.

He urges the RCA, which regulates utilities, to extend its authority over Adak Petroleum, which currently "operates illegally, far from the watchful eye of any regulatory body."

Jamieson says Adak Petroleum charges exorbitant prices to "gouge" its customers, and is putting the island's environment at risk as evidenced by a recent spill.

Well, Deckboss will be sure to watch for the other side of the story, which he trusts will be filed in short order with the RCA.


Anonymous said...

You can accuse Adak Petroleum of a lot of things, but price gouging is not on the list. When fuel prices shot up in 2008 Adak had the cheapest price in the state. They have the same lag in fuel prices as any other remote location in the state. Generally the fuel price in Adak is a few cents above Dutch Harbor.

As far as the plant is concerned, from the fuel company's perspective, they are looking at a plant that is being operated (or making the attempt to operate) by the same guy who has stiffed them in the past. Are they really refusing to sell fuel altogether, or just refusing to extend any more credit? I'll bet the plant would get fuel if they showed up at the fuel office with some cash.


thASS crazy talk. everyBODY knows; If U DO-N'T pay the bill$$ just buy a poletician. MUNCH CHEAPER. CHEAPer to $$-PILL Ruski GAZ. A?? COssacks & COwboys. THERE COmes CHUCKI!!! NOstrovia!!!

Anonymous said...

yep. Just pay your f'ing bills...problem solved.

Anonymous said...

i read the case online; it saus adak seafood put several hundred thousand dollars in escrow for future payment of electric and fuel. so it looks like the problem isnt adak seafood, it is the aleuts. big surprise.
who would not take cash payment?!?! someone with other motives. I bet the utilities commission goes with adak seafood.

Anonymous said...

I understand it doesn't have anything to do with the fuel. I hear it is about the lease. The lease was not renewed so it expired at the end of the year. Why would anyone give fuel to people illegally occupying their property? I have friends in Adak and the current price for home heating diesel out there is $3.49. Out of curiosity I looked at the State of Alaska's fuel survey and the statewide average price was $4.68. Adak was cheaper than the Unalaska, Sand point, and Nelson Lagoon prices. You'd think given the remoteness it would be a lot higher.

Linduh said...

Adak fuel prices may be lower because it was purchased at a time when the market for heating fuel was cheaper. I doubt Adak goes thru their heating oil quickly. I would think once they get a new shipment in, the new market price paid for the heating fuel is then figured into the previous pricing (different in price from what is left in the tank from the previous purchase with the new purchase) and then the new heating oil price will be such and such.
I agree this has all to do with the Lease. What is the word on the other food processor which was also interested in taking over this site?

Anonymous said...

Adak Petroleum "operates illegally, far from the watchful eye of any regulatory body." I think the State regulators and the Coast Guard would have issues with that statement.

How much closer is Adak Seafood from the same watchful eye of regulators like FDA, USDA, and AK Dept of Environmental Conversation?

Anonymous said...

can it be anymore obvious that the aleut lawyers are posting comments on this issue?!

Anonymous said...

I'm a Aleut shareholder, is this where my money is being spent? On some idiotic lawsuit???

Anonymous said...

ROFL. The only people capable of stating facts are thought to be attorneys! No wonder the world is going to hell in a hand basket!

Linduh said...

The longer this gets drawn out, the harder it will be for Adak to get ANYONE to want to operate a business there. Time for the folks on the island to begin brainstorming other possibilites to bring in money or make money. There is a lot of potential.