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SCS CSHB 244(RES): "An Act relating to a grant of state land to the Denali Borough for a railroad and utility corridor and a railroad development project; repealing provisions relating to a grant of a right-of-way of land for a railroad and utility corridor to the Alaska Industrial Development and Export Authority; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 244(RES) 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., shall identify

01 and select a railroad and utility corridor that runs from near the community of Healy to the 02 eastern boundary of Denali National Park and Preserve. Except where needed for 03 construction, safety, or environmental considerations or for required ancillary facility 04 development, the corridor may not exceed 300 feet in width. The borough, in consultation 05 with Kantishna Holdings, Inc., shall also identify and select ancillary land necessary to 06 support the development and operation of a railroad and facilities to support economic 07 development in conjunction with the railroad development project. The department shall 08 review the selections within 90 days after the selections are made. Upon completion of the 09 review by the department of the land identified and selected under this subsection, the 10 borough shall survey the land, and, upon the submission of the survey to the department, the 11 department shall convey the land to the borough. 12 (c) The borough may receive not more than 3,500 acres of state land under this 13 section. The land shall be located in Township 12 South, Range 7 West, Range 8 West, 14 Range 9 West, Range 10 West, and Range 11 West, Fairbanks Meridian. 15 (d) The grant to the borough may not impair valid property rights in the land. To aid 16 in a timely land selection process, the Department of Natural Resources with the assistance of 17 the Denali Borough shall, by September 1, 2001, identify all valid property rights in the land 18 described under (c) of this section. 19 (e) By September 1, 2010, the Denali Borough shall lease the land received under this 20 section to a person for a railroad development project. Otherwise, on September 1, 2010, the 21 title to the land granted under this section reverts to the state. 22 (f) The amount of land transferred to the Denali Borough under this section shall be 23 applied toward fulfillment of the borough's general land grant entitlement determined under 24 AS 29.65.030. However, other provisions of AS 29.65 do not apply to the transfer. 25 (g) Within 30 days after the effective date of this section, the Department of Natural 26 Resources shall authorize a qualified employee to act as liaison with the Denali Borough and 27 its agents in matters relating to carrying out the provisions of this Act. 28 * Sec. 2. Sections 24(c) and 25, ch. 109, SLA 1998, are repealed. 29 * Sec. 3. This Act takes effect July 1, 2001.