Legislature(1999 - 2000)

04/10/2000 02:15 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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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