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July 2004

Vol. 9, No. 29 Week of July 18, 2004

PETROLEUM DIRECTORY: Cruz Construction Inc.: Windfall acquisition increases capabilities

Cruz bumps up business by acquiring Western GECO LLC assets

Susan Braund

Petroleum Directory Contributing Writer

An emerging business trend is transparency — operating above board, with no hidden agendas, closed books or executive secrets. With Cruz Construction Inc. that’s a way of life — what you see is what you get, and it’s all good.

“I’m up front about things and I’m solutions oriented,” says President Dave Cruz, who co-owns the business with his wife, Dana. “I’d rather resolve problems now, not wait around. I say, let’s figure it out right here on the hood of the pickup!”

Cruz keeps the company small enough to remain hands-on and involved. For instance, he’s there for the startup of each project.

“Getting started and off the ground is the hardest part and time is critical,” he explains. “I make certain our projects get going and monitor them to keep them going smoothly. I plan to keep specialized and not lose the perspective of my customers. I devote resources to the job and don’t spread things too thin or take on to much work. That way I always deliver the goods.”

Before starting the business in 1981, he worked heavy construction, on the trans-Alaska pipeline in Valdez, then on the North Slope for Kodiak Oilfield Haulers for four years, where he learned about remote site work. Cruz Construction has grown to three offices in Palmer, Fairbanks and Deadhorse. The company specializes in winter ice roads, ice pads, land clearing and pioneer roads, exploratory support, off-highway transport, remote fuel transportation, and heavy civil construction.

Pioneer roads and land clearing

Recognizing the importance of timely start up in a short construction season and minimal disturbance in environmentally sensitive areas, Cruz Construction uses innovative, customized equipment to get the job done. Dave designed and built the Enviro-Groomer, which can clear and grind vegetation without disturbing the root mat, avoiding problems with permafrost melt.

Cruz’s experience with large-scale land and right-of-way clearing combined with its mobilization and logistic capabilities get the right people and right equipment wherever it’s needed. Land clearing clients include the U.S. Army Corps of Engineers, U.S. Department of Agriculture Forest Service, state of Alaska, Federal Emergency Management Agency, Golden Valley Electric and Copper Valley Electric and, for over a decade, according to company materials, Cruz Construction has been designated a “first responder” for the Alaska Division of Forestry due to its proven ability to mobilize fire suppression equipment statewide on extremely short notice.

Amazingly mobile

The company’s brochure stresses its ability to mobilize quickly. “Few, if any, companies can match our ability to mobilize quickly to virtually any location in Alaska. We bring all necessary equipment for remote road construction including camps, temporary bridges, specialized timber harvesting equipment and all-terrain vehicles. And by keeping a self-contained man camp where the work is, valuable man hours are spent building your road, not traveling to and from the jobsite.”

Ready to go remote

“We’re geared up for work in arctic conditions and in environmentally sensitive habitat. One big advantage is that my fleet, including low ground pressure vehicles, is sized for transport in a C-130 HERC,” says Cruz. “

We’re ready for you. For example if your site is 100 miles from a road, we will pioneer a winter trail to your lease, build an ice pad, transport the drill rig and supplies, support your operations with water, fuel for the duration and then demobe for you.”

Boosting the business

Last spring when Western GECO discontinued work in Alaska, Cruz purchased its assets, including two shops and a pad in Deadhorse, and the fuel transfer and storage capabilities at Lonely. Tundra-approved ATV trailers and power units capable of hauling 30-ton loads, and some small track units, Tucker Sno-cats, top the list of acquired equipment.

Cruz also owns a hydrocarbon recovery and disposal system unit, on-site cleanup for small spills. The unit separates water and oil, processes the water until clean, and the oil is used to fuel the incinerator. The company’s portable self-contained man-camp is equipped with a snow melter and incinerator.

Current projects and recent work

Five current projects are on the docket. For the Corps of Engineers: Fort Wainwright Landfill Slope Stabilization and the upcoming Emergency Bank Stabilization at Galena, Alaska; Peak’s Kenai-Kachemak Pipeline right-of-way clearing work; Copper Valley Telephone Cooperative’s right-of-way clearing; and horizontal directional drilling for utilities in Valdez.

In 2001 and 2002 Golden Valley Electric’s high profile Intertie project wound through the sensitive Tanana Flats area. Cruz’s role was to construct a 78-mile ice road, once each season. “We utilized equipment such as Foremost Commanders low ground pressure vehicles to move all necessary equipment, supplies and personnel to support the construction effort. No materials other than snow and ice could be used on right-of-way, and ice bridge and the vegetative mat had to be maintained intact,” says Cruz. “When the project was delayed by lack of snow, we innovated snow-making equipment on site to build snow up to the depth required for the access road. The project was completed both seasons on time and on budget.”

Cruz Construction is also a reputable pipeline contractor, recently completing the Drift River crossing project for replacing more than 1,850 feet of 20-inch diameter pipe under Drift River on the west side of Cook Inlet, and a 2,600-foot six-inch steel pipe horizontal directional drilling project for Aurora Energy Services under critical wetland habitat at Shirleyville, Alaska. “We did pipe stringing, welding, hydro-testing, pipe pull-back and finally, tie-ins and necessary prep for oil to flow through the line,” says Cruz. “And, again, we completed both projects ahead of schedule and on budget.”

Well-earned recognition

For its role in the Drift River crossing pipeline replacement, the Associated General Contractors of America awarded Cruz Construction the 2002 Excellence in Construction Award: Meeting the Challenge of a Job under $3,000,000 Transportation, Marine, Heavy, Earthmoving. In 2003 the company won again, for the Golden Valley Electric Northern Intertie Project ice road and ice bridges.

For the 1999 Chena River dredging project in Fairbanks, Cruz earned the prestigious Commander’s Medallion from the U.S. Army Corps of Engineers.

In 2004, the 47-mile Teck-Pogo winter road built by Cruz crews in less than 30 days did not go without accolades. A post-project letter to the company praised its work:

“Now that the winter road is but a memory we have had time to take a moment and reflect on just what an amazing feat was accomplished. In the course of less than a month, your crews successfully built 47 miles of meandering ice road in rugged terrain and maintained that road for two months in such superb condition that we had virtually no problems in bringing over 600 loads of freight, including a Cat 385 excavator and 88-foot bridge, to the Pogo mine site … Your team must be complimented on their enthusiasm and dedication under often hostile conditions. Your ingenuity toward the unexpected problems that surfaced virtually daily is much appreciated … and we are particularly pleased with the success of this project in the eyes of both the federal and state regulators.” (From Peter Olson, PE Construction Manager, AMEC E& C Services Ltd.).

Cruzin’

“We’re gearing up for NPR-A. We want to offer more options, the latest equipment, competitive pricing and quality personalized service. We pay attention to detail, stay on top of agency restrictions, and attend to customer needs.” says Cruz, “Like our saying goes, ‘where the road ends, our work begins.’”

Editor’s note: Susan Braund owns Firestar Media Services in Anchorage, Alaska.






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