CSSB 255(RES): "An Act relating to best interest findings and land use permits, rights-of-way, and easements issued by the Department of Natural Resources; and providing for an effective date."
00CS FOR SENATE BILL NO. 255(RES) 01 "An Act relating to best interest findings and land use permits, rights-of-way, and 02 easements issued by the Department of Natural Resources; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 06 section to read: 07 FINDINGS. The legislature finds that 08 (1) AS 38.05.035(e) provides that the director of the division of lands in the 09 Department of Natural Resources, with the consent of the commissioner, may approve 10 contracts for the sale, lease, or other disposal of available state land upon a written finding 11 that the interests of the state will be best served; paragraph (e)(6), however, specifically 12 exempts certain land uses, including a permit or other authorization revocable by the 13 commissioner, from the best interest finding requirement; 14 (2) AS 38.05.850 specifically authorizes the director of the division of lands
01 in the Department of Natural Resources, without the commissioner's consent, to grant land 02 use permits for specified purposes, including electric transmission and distribution lines; 03 (3) in 1999, the Department of Natural Resources, in accordance with the 04 direction given to it by the legislature in AS 38.05.850, issued a conditional, revocable right- 05 of-way permit to Golden Valley Electric Association for construction of an electric 06 transmission intertie between Healy and Fairbanks; 07 (4) in accordance with AS 38.05.035(e)(6)(C), the Department of Natural 08 Resources did not issue a written best interest finding, since the conditional right-of-way 09 permit granted to Golden Valley Electric Association was a permit and was revocable by its 10 terms; 11 (5) in December 1999, the Alaska Supreme Court held that the conditional 12 right-of-way permit that the Department of Natural Resources had granted to Golden Valley 13 Electric Association was not "functionally revocable" and that the Department of Natural 14 Resources should have issued a best interest finding under AS 38.05.035(e); 15 (6) the Alaska Supreme Court's recent decision jeopardizes the status of 16 permits previously issued by the Department of Natural Resources under AS 38.05.850, as 17 each of those permits may constitute a disposal of state land for which a best interest finding 18 is required; 19 (7) in order to comply in the future with the Alaska Supreme Court's recent 20 ruling and to avoid challenge to its permits, the Department of Natural Resources will likely 21 have to issue a best interest finding for every permit issued under AS 38.05.850; 22 (8) issuing a best interest finding for each permit issued under AS 38.05.850 23 will necessitate substantial additional expenditures for which the Department of Natural 24 Resources is inadequately funded; 25 (9) the consequences of the Department of Natural Resources' having to issue 26 best interest findings for permits issued under AS 38.05.850 without additional funding include 27 (A) the creation of uncertainty on the part of prospective permittees; 28 (B) the rapid depletion of the Department of Natural Resources' funds; 29 (C) substantial delays in the permitting process; 30 (D) a negative effect on the development and use of state land 31 resources; and
01 (E) potential impairment of the safety of Alaskans; and 02 (10) in passing ch. 113, SLA 1981, the legislature's intention in enacting 03 AS 38.05.035(a)(14)(C), now AS 38.05.035(e)(6)(C), was to create an exception to the best 04 interest finding requirement that would apply to all permits issued by the Department of 05 Natural Resources under AS 38.05.850, including the permit issued to Golden Valley Electric 06 Association. 07 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 INTENT. It is the intent of the legislature to confirm by clarification that all permits 10 issued by the Department of Natural Resources under AS 38.05.850 are exempt from the best 11 interest finding requirements of AS 38.05.035(e). 12 * Sec. 3. AS 38.05.035(e)(6) is amended to read: 13 (6) before a public hearing, if held, or in any case not less than 21 days 14 before the sale, lease, or other disposal of available land, property, resources, or 15 interests in them other than a sale, lease, or other disposal of available land or an 16 interest in land for oil and gas under (5) of this subsection, the director shall make 17 available to the public a written finding that, in accordance with (1) of this subsection, 18 sets out the material facts and applicable statutes and regulations and any other 19 information required by statute or regulation to be considered upon which the 20 determination that the sale, lease, or other disposal will best serve the interests of the 21 state was based; however, a written finding is not required before the approval of 22 (A) a contract for a negotiated sale authorized under 23 AS 38.05.115; 24 (B) a lease of land for a shore fishery site under AS 38.05.082; 25 (C) a permit or other authorization revocable by the 26 commissioner; 27 (D) a mineral claim located under AS 38.05.195; 28 (E) a mineral lease issued under AS 38.05.205; 29 (F) an exempt oil and gas lease sale under AS 38.05.180(d) of 30 acreage subject to a best interest finding issued within the previous 10 years or 31 a reoffer oil and gas lease sale under AS 38.05.180(w) of acreage subject to a
01 best interest finding issued within the previous 10 years, unless the 02 commissioner determines that substantial new information has become available 03 that justifies a supplement to the most recent best interest finding for the 04 exempt oil and gas lease sale acreage and for the reoffer oil and gas lease sale 05 acreage; however, for each oil and gas lease sale described in this 06 subparagraph, the director shall call for comments from the public; the 07 director's call for public comments must provide opportunity for public 08 comment for a period of not less than 30 days; if the director determines that 09 a supplement to the most recent best interest finding for the acreage is required 10 under this subparagraph, 11 (i) the director shall issue the supplement to the best 12 interest finding not later than 90 days before the sale; 13 (ii) not later than 45 days before the sale, the director 14 shall issue a notice describing the interests to be offered, the location 15 and time of the sale, and the terms and conditions of the sale; and 16 (iii) the supplement has the status of a final written best 17 interest finding for purposes of (i) and (l) of this section; 18 (G) a shallow gas lease authorized under AS 38.05.177 in an 19 area for which leasing is authorized under AS 38.05.177; 20 (H) a surface use lease under AS 38.05.255; 21 (I) a permit, right-of-way, or easement under AS 38.05.850; 22 * Sec. 4. AS 38.05.850 is amended by adding a new subsection to read: 23 (c) If the director determines, by evaluation of the nature and duration of the 24 intended use, that an easement or right-of-way issued under this section will not be 25 functionally revocable, the director shall provide public notice before issuing the 26 easement or right-of-way. 27 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section 28 to read: 29 RETROACTIVITY. Section 3 of this Act is retroactive to, and applies to permits 30 issued under AS 38.05.850 on or after, July 27, 1981. 31 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).