Legislature(2001 - 2002)

05/10/2002 02:17 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 219(FIN)                                                                                               
                                                                                                                                
     "An Act establishing and relating to the Navigable                                                                         
     Waters Commission for Alaska."                                                                                             
                                                                                                                                
RON  SOMMERVILLE,  CONSULTANT,   HOUSE  AND  SENATE  RESOURCE                                                                   
COMMITTEE,  testified  in  support  of  the  legislation.  He                                                                   
explained that Senator Halford  and Representative Porter put                                                                   
the concept of  the joint commission forward.  The purpose of                                                                   
the Alaska Navigable  Waters Commission would  be to expedite                                                                   
transfers of  title on submerged  lands. Under  the Submerged                                                                   
Lands Act,  when Alaska  became a state  in 1959  it received                                                                   
the ownership  of submerged  lands that  are under  navigable                                                                   
and  marine  waters  up  to  three  miles.  Approximately  60                                                                   
million  acres of  submerged lands  were  transferred to  the                                                                   
state  (as  long  as  the state  can  prove  that  they  were                                                                   
navigable at the time of statehood).  In order to claim title                                                                   
under the act the  state has to file under the  Act with 180-                                                                   
day  notice  stating its  intention  to  claim land  under  a                                                                   
specific body of water. The courts  and federal agencies have                                                                   
taken  a narrow  interpretation  of the  federal Quite  Title                                                                   
Act.  The   courts  have   ruled  that   the  state   has  no                                                                   
jurisdiction  if  the  federal  government  is  silent;  this                                                                   
creates  a barrier to  the state's  acquisition of  submerged                                                                   
lands.  The  definition  of  "navigable"   has  also  created                                                                   
problems. In  Oregon, the definition  centers on  the ability                                                                   
to float  a log down  a body of water.  He noted that  in the                                                                   
Gulkana case of 1987 the Ninth  Circuit Court upheld that the                                                                   
Gulkana River was  navigable all the way up to  the lake. The                                                                   
key  point  was that  the  river  was  used for  purposes  of                                                                   
commerce  or could  be used for  the purpose  of commerce.  A                                                                   
rubber  raft or  canoe could  be  floated up  the river  with                                                                   
approximately 1,000  pounds. The  Court ruled in  the state's                                                                   
favor. The problem  was that there were a lot  of conveyances                                                                   
prior  to  1987. The  Bureau  of  Land Management  (BLM)  has                                                                   
refused to  correct errors in  these cases. This  has clouded                                                                   
titles.  The  state  has  not lost  its  title  to  navigable                                                                   
waters, but the determination  of which waters were navigable                                                                   
was not made.                                                                                                                   
                                                                                                                                
Mr. Sommerville  noted that the  BLM was not required  to use                                                                   
its  own  manual for  surveying  instructions  for  conveying                                                                   
lands  in Alaska  until after  1988.  The BLM,  by their  own                                                                   
manual,  is  required  to  meander  boundaries  around  lakes                                                                   
larger than 50  acres or a stream wider than  three chains or                                                                   
198  feet,  which  would prevent  the  submerged  lands  that                                                                   
belong  to  the  state  from  transferring  to  the  adjacent                                                                   
landowner.                                                                                                                      
                                                                                                                                
Mr.  Sommerville  explained  that since  statehood  title  on                                                                   
submerged  lands has been  resolved on  13 rivers.  There are                                                                   
22,000  rivers that could  be considered  navigable.  In 1992                                                                   
and 1996 the state submitted to  the BLM a list of 217 rivers                                                                   
on  which  quiet  title  was requested.  The  state  did  not                                                                   
receive federal cooperation and  decided to take three rivers                                                                   
lying  in  the northeastern  part  of  Alaska to  court:  the                                                                   
Black, Kandik  and the  Nation Rivers.  After nine  years the                                                                   
court ruled  in the state's favor  on two of the  rivers. The                                                                   
third  river was  determined  not  to have  jurisdiction.  He                                                                   
concluded that  it would take  99,000 years to  resolve title                                                                   
at  the current  rate. Mr.  Sommerville pointed  out that  it                                                                   
took approximately  $1 million  dollars of state  and federal                                                                   
funds to resolve navigability  on two rivers. Title is needed                                                                   
for  many  reasons:  to lease  rivers,  manage  trespass,  or                                                                   
extract  gravel. He  stressed that  it is  not a  subsistence                                                                   
issue. Subsistence is a reserve  water rights issue, which is                                                                   
a separate court issue.                                                                                                         
                                                                                                                                
Mr. Sommerville observed that  SB 219 is a process worked out                                                                   
with  the  federal  government  to  create  a  commission  to                                                                   
identify  navigable and  non-navigable rivers  and develop  a                                                                   
list  and where  possible  work  with the  Administration  to                                                                   
certify the  list. He  observed that  Congress and  the state                                                                   
legislature might  need to be  consulted on certification  of                                                                   
some rivers.  There  is a CIP  fiscal note  of $200  thousand                                                                   
dollars,  which  is  exclusively   for  the  conduct  of  the                                                                   
commission.  The operation  of the commission  would  have to                                                                   
come from the agencies and federal assistance.                                                                                  
                                                                                                                                
Vice-Chair  Bunde  referred  to  the  number  of  members  in                                                                   
section 3.  He observed that  the membership composition  was                                                                   
different in  state and federal legislation.  Mr. Sommerville                                                                   
explained that  the membership  component was altered  in the                                                                   
Senate Finance Committee. The  congressional version was made                                                                   
prior  to  the   Senate  change.  He  anticipated   that  the                                                                   
congressional version  would be changed to correspond  to the                                                                   
state version.  The sponsor  was agreeable  to the  change in                                                                   
the Senate Finance Committee and  did not think that it would                                                                   
be difficult to  change the federal law to  coincide with the                                                                   
change.                                                                                                                         
                                                                                                                                
Representative  Croft questioned  if  any part  of the  Katie                                                                   
John  decision   was  based  on   the  title  of   land.  Mr.                                                                   
Sommerville  observed that some  jurisdictional issues  occur                                                                   
with the exercise of submerged  title. In the Katie John case                                                                   
the  state  maintained  that  the  area  in  question  was  a                                                                   
navigable  stream. The  claim  revolved  around the  reserved                                                                   
water  right. The  argument did  not center  on the issue  of                                                                   
navigability.                                                                                                                   
                                                                                                                                
Representative  Croft questioned  if the  fact that  the land                                                                   
had never  been certified  under the  Quiet Title Act  played                                                                   
into the  jurisdictional issues in  the Katie John  case. Mr.                                                                   
Sommerville observed that he is  not an attorney, but did not                                                                   
recall it being part of the case.                                                                                               
                                                                                                                                
In response to a question by Representative  John Davies, Mr.                                                                   
Sommerville  discussed title  meandering.  He explained  that                                                                   
the mean high waterline of a river  or lake estimated for the                                                                   
conveyance  in order to  assure that  no submerged  lands are                                                                   
convey. The boundary of the uplands  would be conveyed to the                                                                   
adjacent landowner.                                                                                                             
                                                                                                                                
Representative John Davies observed  that Mr. Sommerville had                                                                   
indicated that there were mistakes  made in the Gulkana case.                                                                   
Mr. Sommerville  clarified that  mistakes were made  prior to                                                                   
issuance  of  the order.  The  BLM  did  not follow  its  own                                                                   
surveying  instructions  until  told  to  by  Congress.  Some                                                                   
streams less than  3 meters wide and some lakes  less than 50                                                                   
acres  were transmitted  as  submerged  land.  Some of  these                                                                   
bodies are clearly navigable and  should have been corrected.                                                                   
Those titles are still clouded.                                                                                                 
                                                                                                                                
Representative  John  Davies   asked  the  interpretation  of                                                                   
navigable  land  through  a national  park.  Mr.  Sommerville                                                                   
explained that  ownership of submerged  lands in  parks would                                                                   
belong  to the  state of  Alaska.  The question  is how  much                                                                   
authority   does   the  adjacent   landowner,   the   federal                                                                   
government,  control.  The federal  government  can  exercise                                                                   
some  control  if  the activity  would  impact  the  adjacent                                                                   
federal land. If  the state controls the submerged  land in a                                                                   
national park or  refuge area they could exercise  control of                                                                   
access to the  navigable water. For instance  the state could                                                                   
limit by permit  the number of people or how  they access the                                                                   
water.                                                                                                                          
                                                                                                                                
Vice-Chair Bunde  observed that as  long as an  individual is                                                                   
on the water  afloat that they  are in state territory.  If a                                                                   
foot  were stepped  on the  land than  they would  be in  the                                                                   
private  landowner's  water  and would  be  trespassing.  Mr.                                                                   
Sommerville pointed  out that  the submerged landowner  could                                                                   
exercise some  control. If  a person floats  down a  river on                                                                   
private  land the  state law,  which  applies to  the use  of                                                                   
state  waters, would  apply as  long  as they  remain on  the                                                                   
water.  If the federal  government owned  the submerged  land                                                                   
they could  exercise "quite a  bit" of control on  the water.                                                                   
Representative Bunde  pointed out that  if the state  did not                                                                   
have control  and a  dispute occurred  over the  recreational                                                                   
use of submerged lands, state  residents would be in trespass                                                                   
on federal  land if  they put foot  on the surrounding  land.                                                                   
The state  would not  have significant  use for  recreational                                                                   
purposes  of the land,  even though  there  is access to  the                                                                   
water.                                                                                                                          
                                                                                                                                
DICK BISHOP, ALASKA OUTDOOR COUNCIL,  FAIRBANKS, testified in                                                                   
support  of the  legislation.  He observed  that the  Gulkana                                                                   
case was  just the beginning of  the story. He noted  that he                                                                   
had been contacted by the BLM  regarding the use of rivers in                                                                   
Alaska,  which  indicated that  the  task was  difficult  and                                                                   
moving  at  a glacial  pace.  There  has  to  be a  means  to                                                                   
expedite the  process. There are  a number of lose  ends that                                                                   
could cause  problems in  the future.  There are millions  of                                                                   
acres of state lands in limbo.  The federal government hasn't                                                                   
asserted  interest  in  the  lands.   The  legislation  could                                                                   
provide the factual background  and legwork to allow it to be                                                                   
settled by the courts.                                                                                                          
                                                                                                                                
Representative  John Davies  asked  if the  Commission  could                                                                   
identify  rivers that  are less  controversial  and could  be                                                                   
presented  to Congress  and  resolved.  Mr. Bishop  responded                                                                   
that  resolution   is  contingent   on  a  determination   of                                                                   
navigability  and the process  by which  a decision  is made.                                                                   
There is  not a lot of controversy  about the basic  issue of                                                                   
the  terms of  the  Submerged Lands  Act.  He concluded  that                                                                   
bureaucracy  is  more  of  an  issue  than  controversy.  The                                                                   
difficulty is in getting a determination.                                                                                       
                                                                                                                                
Vice-Chair Bunde  observed that some  of the rivers  would be                                                                   
used for travel during frozen  periods. He questioned how the                                                                   
legislation  would interplay  with the  Katie John  decision.                                                                   
Mr.  Bishop responded  that they  are  different issues.  The                                                                   
Katie  John  issue  relates  to  the  reach  of  the  federal                                                                   
authority  and Federal  Reserve  waters.  The controversy  is                                                                   
tied  to   federal  authority   under  the  Reserved   Waters                                                                   
Doctrine, not the Submerged Lands Act.                                                                                          
                                                                                                                                
Co-Chair  Mulder  MOVED  to  report CSSB  219  (FIN)  out  of                                                                   
Committee with  the accompanying fiscal note.  Representative                                                                   
Croft OBJECTED for the purpose  of a statement.  He concluded                                                                   
that the issue did not interact  with the Katie John case and                                                                   
WITHDREW his OBJECTION.  There being NO OBJECTION,  it was so                                                                   
ordered.                                                                                                                        
                                                                                                                                
CSSB 219(FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and  with a previously published  fiscal note:                                                                   
#1 LAA/DNR.                                                                                                                     

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