As billion dollar bailouts keep getting voted on in Washington D.C., the state of Alaska is working to save one of its vital resources. The Flint Hills North Pole refinery could face a shut down with dismal market conditions and high state royalty oil costs to blame. However, the state says that won't happen.

A shutdown of one of our state's three refineries would be enormous as everything from the airlines to the railroads to the port of Anchorage would be affected. Preventing this major disaster is why the state is getting involved.

“The idea that Flint Hills might shut down the North Pole facility is simply not acceptable the economic consequences would be significant,” said Joe Balash, the special assistant to

(KTVA)
Governor Palin.

Accounting for a major portion of Alaska's economy through the railroad and airport with its refining of jet and home heating fuel, the Flint Hills North Pole refinery is important to the state and its functions. “It goes without saying, the Flint Hills refinery is a foundational component not only the interior's economy but the state's economy,” said Fairbanks North Star Borough Mayor Jim Whitaker.

“It trickles right down the spine of the rail belt,” said Balash. “It affects the interior as well as south central Alaska in terms of jobs, economic sales, impacts.”

Impacts which if closed would affect all Alaskans.

“We need to as a state look at what happens

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if we lose a key asset, how many millions of dollars do we stumble over,” said North Pole Mayor Doug Issacson. “Without Flint Hills here the railroad no longer cash flows 45 percent of the railroads income is derived from having the Flint Hills refinery in North Pole.”

“It is silly for us not to find some way to keep that refinery open,” said Whitaker.

Wednesday afternoon, the state announced a cooperative effort aimed at positioning the North Pole

Joe Balash - Special Assistant To The Governor - (KTVA)
refinery for long-term success. Something, Alaska's leaders say is needed.

“At this point in time given the national economy, the global economy and the effect that it would have on Alaska, for us to even consider putting a functional component at risk is silly,” said Whitaker.

The refinery provides 100 percent of Fairbanks jet fuel and 51 percent of Anchorage's.

To keep the refinery the state is looking into options such as alternative owners including an interim state ownership.

Despite the recession Flint Hills says none of their employees will be laid off.

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