02/22/2006 08:30 AM House FISHERIES

HJR 29-COLLECT MORE EXXON VALDEZ SPILL DAMAGES                                                                                
                                                                                                                                
8:42:07 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  GABRIELLE  LEDOUX  announced  that the  only  order  of                                                               
business  would  be HOUSE  JOINT  RESOLUTION  NO. 29  Urging  the                                                               
United States Department of Justice  and the Alaska Department of                                                               
Law  to identify  all  natural resource  damages  from the  Exxon                                                               
Valdez oil spill that were unanticipated  at the time of the 1991                                                               
settlement,  to  develop plans  to  remedy  the damages,  and  to                                                               
present the  ExxonMobil Corporation with  a request for  the full                                                               
$100,000,000 that is available through  the "Reopener for Unknown                                                               
Injury" clause  of the 1991  civil settlement to carry  out these                                                               
plans.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  CROFT, Alaska  State  Legislature, presented  HJR
, Version 24-LS1603\A, as prime  sponsor, paraphrasing from the                                                               
sponsor statement,  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     HJR  29  urges the  federal  and  state governments  to                                                                    
     request the  $100 million available for  unforeseen and                                                                    
     unanticipated  damages  stemming  from the  1989  Exxon                                                                    
     Valdez oil spill. The 1991  civil settlement contains a                                                                    
     "Reopener  for  Unknown  Injury"  clause,  which  makes                                                                    
     these  funds   available  if  additional   impacts  are                                                                    
     discovered. Under  the terms  of the  settlement, there                                                                    
     is a limited window in  which to apply for these funds,                                                                    
     which closes  on September  1, 2006.  Plans for  use of                                                                    
     the  funds  must  be  submitted to  Exxon  90  days  in                                                                    
     advance of the claim, or  approximately June 1. This is                                                                    
     unrelated to ongoing  litigation regarding the punitive                                                                    
     damages Exxon owes to individual Alaskans.                                                                                 
                                                                                                                                
     The  resolution  also  requests   an  update  from  the                                                                    
     Attorneys  General  of  Alaska  or  the  United  States                                                                    
     regarding the status of any reopener claim.                                                                                
                                                                                                                                
     Since the  spill and  settlement, scientists  funded by                                                                    
     the  initial  payments  have  determined  a  number  of                                                                    
     unanticipated  injuries to  the spill  zone. One  major                                                                    
     impact  that did  not become  evident  until after  the                                                                    
     settlement  was the  1993 crash  of the  Prince William                                                                    
     Sound  herring population.  Scientists have  determined                                                                    
     that crude  oil affected the reproductive  processes of                                                                    
     the herring,  which explains the  delayed onset  of the                                                                    
     crash. Other  significant discoveries  regard lingering                                                                    
     oil. A number of beaches  in Prince William Sound still                                                                    
     contain  significant amounts  of  oil that  has yet  to                                                                    
     biodegrade. Since the  spill and settlement, scientists                                                                    
     have  also learned  that  they  had underestimated  the                                                                    
     toxicity of crude oil to  wildlife. These issues, among                                                                    
     others,   show  the   necessity  of   these  additional                                                                    
     restoration funds.                                                                                                         
                                                                                                                                
     The  Kenai Peninsula  Borough,  Kodiak Island  Borough,                                                                    
     and City of Cordova  have passed resolutions in support                                                                    
     of this action.                                                                                                            
                                                                                                                                
                                                                                                                                
8:46:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS  asked for an explanation  of the procedure                                                               
to be  followed in order  to pursue  this clause and  receive the                                                               
funds.                                                                                                                          
                                                                                                                                
8:46:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CROFT  responded that  the consent  decree states:                                                               
"Not   withstanding  any   other  provision,   Exxon  shall   pay                                                               
additional  sums if  it meets  the standard."   Further,  he read                                                               
that the standard shall have been met when:                                                                                     
                                                                                                                                
     There  has been  a substantial  impact on  one or  more                                                                    
     populations,   habitats,   or   species   that   is   a                                                                    
     substantial loss or substantial  decline, that that was                                                                    
     caused  by  the  spill,  and that  the  injury  to  the                                                                    
     effected  population or  habitat  could not  reasonably                                                                    
     have  been  known nor  could  it  reasonably have  been                                                                    
     anticipated   by   a   (indisc.)   trustee   from   any                                                                    
     information  in  the  possession  when  we  signed  the                                                                    
     agreement.                                                                                                                 
                                                                                                                                
REPRESENTATIVE CROFT  stressed that if  a request for  payment is                                                               
not  made to  Exxon, then  their obligation  to pay  any of  this                                                               
money will end  in September 2006.  By making  a request, he said                                                               
that  a  negotiated agreement  could  be  reached, but  if  Exxon                                                               
refuses, the  action would  be handled  in court  as a  breach of                                                               
contract.   Responding  to  a  question, he  said  that the  $100                                                               
million is  not automatic, but  it is the  cap.  He  stressed the                                                               
need to prove  the criteria to receive any amount,  and that will                                                               
be up to the scientists and lawyers.                                                                                            
                                                                                                                                
8:48:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS  inquired whether  there is  any indication                                                               
that  the administration  is currently  attempting  an appeal  to                                                               
Exxon for more damage money based upon this action.                                                                             
                                                                                                                                
8:49:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CROFT there  is a  fair amount  of work  to prove                                                               
these   issues,  despite   the  complications,   and  the   state                                                               
departments are working to establish  proof of the standards.  He                                                               
stressed that  this request should  stand independently  of other                                                               
negotiations for the oil pipeline or a gas pipeline.                                                                            
                                                                                                                                
8:50:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  moved  to  report  HJR  29,  Version  24-                                                               
LS1603\A, out  of committee  with individual  recommendations and                                                               
the accompanying  fiscal notes.   There  being no  objection, HJR
, Version  A, was reported  out of the House  Special Committee                                                               
on Fisheries.                                                                                                                   
                                                                                                                                
8:50:41 AM