00                       CS FOR HOUSE BILL NO. 244(FIN)                                                                    
01 "An Act relating to a grant of state land to the Denali Borough for a railroad and utility                              
02 corridor and a railroad development project; repealing provisions relating to a grant of                                
03 a right-of-way of land for a railroad and utility corridor to the Alaska Industrial                                     
04 Development and Export Authority; and providing for an effective date."                                                 
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
07 to read:                                                                                                                
08       GRANT FOR RAILROAD AND UTILITY CORRIDOR.  (a)  The Department of                                                  
09 Natural Resources shall grant to the Denali Borough state land for the purpose of supporting                            
10 economic development in the borough by enabling Kantishna Holdings, Inc., and its                                       
11 successors and assigns in interest, to provide for a utility corridor and for the design,                               
12 construction, development, operation, and maintenance of a railroad and facilities to support                           
13 that development project.                                                                                               
14       (b)  The Denali Borough, in consultation with Kantishna Holdings, Inc., and the                                   
01 Department of Natural Resources, shall identify a railroad and utility corridor that runs from                          
02 near the community of Healy to the eastern boundary of Denali National Park and Preserve.                               
03 Except where needed for construction, safety, or environmental considerations or for required                           
04 ancillary facility development, the corridor may  not exceed 300 feet in width.  The borough,                           
05 in consultation with Kantishna Holdings, Inc., and the Department of Natural Resources, shall                           
06 also identify ancillary land necessary to support the development and operation of a railroad                           
07 and facilities to support economic development in conjunction with the railroad development                             
08 project.  Upon approval by the department of the land identified under this subsection, the                             
09 borough shall survey the land and, upon the submission of the survey to the department, the                             
10 department shall convey the land to the borough.                                                                        
11       (c)  The borough may receive not more than 3,500 acres of state land under this                                   
12 section.  The grant to the borough may not impair valid property rights in the land.                                    
13       (d)  The amount of land transferred to the Denali Borough under this section shall be                             
14 applied toward fulfillment of the borough's general land grant entitlement determined under                             
15 AS 29.65.030.  However, other provisions of AS 29.65 do not apply to the transfer.                                      
16    * Sec. 2.  Sections 24(c) and 25, ch. 109, SLA 1998, are repealed.                                                 
17    * Sec. 3.  This Act takes effect July 1, 2001.