Legislature(1999 - 2000)
04/10/2000 02:15 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 175
An Act relating to state mining law, to methods of
locating mining claims, to the granting of larger
mining claims using a legal subdivision based on
rectangular survey descriptions, and to mandatory
rental payments for prospecting rights.
JULI LUCKY, STAFF, SENATOR RICK HALFORD, stated that SB 175
proposes changes to the Alaska State Mining Law that would
reduce the mining claim processing time and cost for the
State, while improving the accuracy and accessibility of the
claim location data. The changes affect methods of locating
mining claims, rental payments and other related items.
They would have no effect on the rights established by
claims.
Ms. Lucky noted that the Department of Natural Resources
currently has a substantial backlog of claims that have been
filed but are not yet on the land status plats. Changes
proposed by SB 175 would improve the situation by allowing
the Department to use a format, whereby, mining claim
corners conform to an aliquot part legal description and can
then be electronically entered onto (or removed from) the
State land status plats.
Ms. Lucky stated that the changes proposed by SB 175 would
incorporate several years of work between the mining
industry and the Alaska Department of Natural Resources. The
primary concern for DNR is the amount of manpower, time and
cost that are now required to process the paperwork for
mining claims.
Ms. Lucky pointed out that from the viewpoint of the mining
industry, the changes would simplify the process of staking
mining claims and reduce errors during the staking,
recording and filing process. One change would make it
simpler and more feasible to utilize the Global Positioning
Systems (GPS) to establish claim corners in the field.
Another change would allow the location of a larger size of
mining claim, which would decrease the number of stakes in
the field and reduce the amount of paperwork by 75%. The
existing claim location system will continue to be available
for those situations where the new positioning method is not
practical.
Ms. Lucky concluded that other changes proposed regard
prospecting sites including the establishment of a rental
charge, repeal of the limitation of the number of sites that
can be held, and clarification of the terms.
Ms. Lucky stated that SB 175 is supported by the Alaska
Miners Association and the Department of Natural Resources.
Representative Phillips emphasized that the mining industry
would be very happy with the change proposed in the
legislation.
Representative J. Davies asked for more information
regarding the rental aspects. Ms. Lucky explained that the
labor rate would remain in place. There would be a change
in the rental rates dealing with the prospecting sites.
BOB LEOFFLER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION LAND, MINING AND WATER, DEPARTMENT OF NATURAL
RESOURCES, stated the SB 175 is a solution to a problem that
the Department has had. He pointed out that over the last
few years, the mining claims have been expanding. New
mining claims average about ten thousand a year and have for
the past five years. As a result, the Department has had a
difficult time keeping up. It takes four to six months to
process a mining claim. He noted that SB 175 would provide
for some automation. The bill will not change the
relationship between the mining industry and the State but
would allow for better service.
Mr. Leoffler addressed the fiscal note. He stated that the
bill could make it more efficient for the State and the
locator. It applies to renting the processing sites. The
Department believes that would result in $150 thousand
dollars, new income from the mining industry. Approximately
half of that would go to the permanent fund. The fiscal
note attempts to capture the other half, so the Department
could decrease the time to process a claim to a six-week
period. The bill recommends using funding, which the
industry pays, to bring the service level to a more
agreeable time.
Representative J. Davies asked if there would be less
incentive to develop the lands by making the system more
efficient.
STEVE BORELL, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTION, ALASKA MINERS ASSOCIATION, ANCHORAGE, voiced
support for the legislation. He stated that the provision
of the bill affects the process of location, which would not
decrease the rights established by the claims. Mr. Borell
noted that the provisions of the legislation would provide
for more rapid distribution of information to the public.
He urged enactment of the legislation at the earliest
possible date.
Representative Foster inquired about the existing system
claims. Mr. Borell replied that they would remain the same.
Representative Foster wanted a guarantee that the small
village people would not be required to purchase a GPS
system. Mr. Borell acknowledged that they would not.
Representative Foster MOVED to report SB 175 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 175 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by the Department of
Natural Resources dated 2/29/00.
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