Perhaps you know that sinking feeling when a single keystroke accidentally destroys hours of work. Now imagine wiping out a disk drive containing information for an account worth $38 billion.

That's what happened to a computer technician reformatting a disk drive at the Alaska Department of Revenue. While doing routine maintenance work, the technician accidentally deleted applicant information for an oil-funded account — one of Alaska residents' biggest perks — and mistakenly reformatted the backup drive, as well.

There was still hope, until the department discovered its third line of defense, backup tapes, were unreadable.

"Nobody panicked, but we instantly went into planning for the worst-case scenario," said Permanent Fund Dividend Division Director Amy Skow. The July computer foul-up, which wiped out dividend distribution information for the fund, would end up costing the department more than $200,000.

Over the next few days, as the department, the division and consultants from Microsoft Corp. and Dell Inc. labored to retrieve the data, it became obvious the worst-case scenario was at hand.

Nine months worth of applicant information for the yearly payout from the Alaska Permanent Fund was gone: some 800,000 electronic images that had been painstakingly scanned into the system months earlier, the 2006 paper applications that people had either mailed in or filed over the counter, and supporting documentation such as birth certificates and proof of residence.

And the only backup was the paperwork itself — stored in more than 300 cardboard boxes.