Legislature(2007 - 2008)BARNES 124

03/02/2007 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HJR 4 KENAI/KASILOF SUBSISTENCE PRIORITY TELECONFERENCED
Moved CSHJR 4(FSH) Out of Committee
+= HB 134 PROTECTION OF SALMON SPAWNING WATER TELECONFERENCED
Heard & Held
HB 134-PROTECTION OF SALMON SPAWNING WATER                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the next order of  business would be                                                               
further public testimony on HOUSE  BILL NO. 134, "An Act relating                                                               
to  conservation  and protection  of  wild  salmon production  in                                                               
drainages  affecting  the  Bristol  Bay  Fisheries  Reserve;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
[The motion  to adopt CSHB  134, Version  M, was left  pending at                                                               
the 2/28/07 meeting.]                                                                                                           
                                                                                                                                
8:48:48 AM                                                                                                                    
                                                                                                                                
MARC  HELLENTHAL, Hellenthal  and Associates,  provided testimony                                                               
on  HB 134,  to report  on  a statewide  public opinion  research                                                               
survey, which the Renewable  Resources Coalition (RRC) sponsored.                                                               
                    thth                                                                                                        
Between  February 12   and  February  20,   2007, Hellenthal  and                                                               
Associates  interviewed  402  respondents;  with  a  4.9  percent                                                               
margin of  error.  The  survey used  a random digit  dial method,                                                               
which restricted  contact to residents  with land  line telephone                                                               
service.   He  explained  how posing  questions  in a  particular                                                               
sequence  serves to  establish a  valid base  for response.   The                                                               
survey  began  with  positive/negative recognition  questions  of                                                               
organizations and  individuals in  the state, prior  to awareness                                                               
questions  specifically  about  the  Pebble  Mine  project.    He                                                               
continued, reading  the results  of each  question leading  up to                                                               
question 4, directed specifically at HB 134.  It read:                                                                          
                                                                                                                                
     The Bristol Bay watershed is  the source of the world's                                                                    
     greatest wild salmon fishery ....  A bill is now before                                                                    
     the state legislature to  protect this valuable natural                                                                    
     resource, and to prohibit  the draining and destruction                                                                    
     of  salmon spawning  streams  for industrial  purposes.                                                                    
     Do  you   strongly  favor,  somewhat   favor,  somewhat                                                                    
     oppose,  or  strongly  oppose  protecting  Bristol  Bay                                                                    
     salmon spawning areas in this manner?                                                                                      
                                                                                                                                
MR.   HELLENTHAL  reported   that   83.2   percent  favored   the                                                               
legislation  and 11.2  percent were  opposed  to the  action.   A                                                               
similar  question,  number  5,  addressed  the  bill  before  the                                                               
legislature,  which  seeks to  establish  a  game refuge  in  the                                                               
headwaters of  Bristol Bay, to  be named after the  late Governor                                                               
Jay Hammond [SB 67].   The summarized results indicated that 66.9                                                               
percent   favored,  and   22.9  percent   opposed  this   action.                                                               
Subsequent questions  addressed:  a ballot  initiative to require                                                               
large mines  to pay a  percentage of  their gross profits  to the                                                               
state; a percentage  of mining gross profits to  be paid directly                                                               
into the  Permanent Fund;  whether a large  scale mine  should be                                                               
cited  at the  headwaters of  the  Bristol Bay  watershed; and  a                                                               
ballot  initiative to  strengthen Alaska's  clean water  laws and                                                               
enhance the safety of its earthen dams.                                                                                         
                                                                                                                                
MR.   HELLENTHAL  provided   that   question   number  14   asked                                                               
specifically for the respondent to  make a preference between the                                                               
developments of renewable  resources vs. non-renewable resources.                                                               
Every  respondent was  decisive, with  a result  of 87.9  percent                                                               
favoring  fish, wildlife,  and native  habitat, and  12.1 percent                                                               
choosing gold and copper.                                                                                                       
                                                                                                                                
8:55:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked if any  of the questions  were posed                                                               
in a manner to illicit a particular answer.                                                                                     
                                                                                                                                
MR.  HELLENTHAL responded  that cautions  were taken  to minimize                                                               
interview bias.   This is  accomplished primarily  by considering                                                               
the sequence  of the question.   He provided examples of  how the                                                               
outcome of  a survey  can be  changed by the  order in  which the                                                               
questions are  asked.  Additionally,  in this poll,  the question                                                               
of opposition  to the Pebble  Mine was asked  twice.  In  the mid                                                               
section of the  survey, the response was that  49 percent opposed                                                               
the  mine,  but  when  asked  again, as  a  final  question,  the                                                               
response  was   63  percent  opposed.     This   illustrates  the                                                               
importance of  sequencing questions, and  the effect on  the over                                                               
all results.                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked who paid for the poll.                                                                              
                                                                                                                                
8:57:31 AM                                                                                                                    
                                                                                                                                
MR. HELLENTHAL reiterated that it was commissioned by the RRC.                                                                  
                                                                                                                                
8:57:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  inquired if  there  was  any attempt  to                                                               
define reserve versus refuge.                                                                                                   
                                                                                                                                
MR. HELLENTHAL stated that the  responders were expected to apply                                                               
their own understanding to the terms.                                                                                           
                                                                                                                                
8:58:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON queried  about  the area  covered by  this                                                               
statewide poll, and asked if  boundaries were drawn between rural                                                               
and urban regions.                                                                                                              
                                                                                                                                
MR.  HELLENTHAL disclosed  the locations  of the  402 respondents                                                               
interviewed:   Southeast 52; Valdez, Kenai,  Matanuska-Susitna 76                                                               
interviews;  Anchorage 164;  greater Fairbanks  area 52;  and the                                                               
remaining rural area 58.                                                                                                        
                                                                                                                                
8:59:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON   asked  if   there  was   a  significant                                                               
difference in the regional responses.                                                                                           
                                                                                                                                
MR. HELLENTHAL answered that the  Pebble Mine was opposed more in                                                               
the  coastal regions,  than in  the  interior.   Responding to  a                                                               
committee member,  he agreed to  provide a regional  breakdown of                                                               
the survey results.                                                                                                             
                                                                                                                                
9:00:07 AM                                                                                                                    
                                                                                                                                
MICHELLE POPE  RAVENMOON paraphrased  from a  prepared statement,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Salmon  have  sustained  my  people  for  thousands  of                                                                    
     years.   And  I support  HB 134  because salmon  is our                                                                    
     most  precious  resource.    I come  from  one  of  the                                                                    
     richest areas  in the world,  because of  our renewable                                                                    
     resource.  We have not  damaged our lands like the rest                                                                    
     of the  world.   Why not protect  our food  source, our                                                                    
     way of life,  and our land.   We as a people,  and as a                                                                    
     region, have a potential  for economic development that                                                                    
     doesn't    include   molesting    our   lands    beyond                                                                    
     recognition.   As [an]  Alaska Native,  I am  tired and                                                                    
     ashamed of being  looked at as a victim  who comes from                                                                    
     a place  with no economic  hope.  Alaska  Native's have                                                                    
     been portrayed  as victims for  hundreds of  years, and                                                                    
     it is not  OK.  I have worked hard,  I went to college,                                                                    
     and  I'm  employed  by  my  home  region,  which,  with                                                                    
     initiative and entrepreneurship, my  people can do this                                                                    
     to.  We do not  need giant corporations coming into our                                                                    
     homelands and  risking what we, as  Native people, have                                                                    
     left.   The Wild  Salmon Protection Act  will safeguard                                                                    
     against  destroying our  salmon  and  ensure our  clean                                                                    
     water.   This  is  the only  home  I have  -  if it  is                                                                    
     destroyed, I don't have anywhere else to go.                                                                               
                                                                                                                                
9:02:40 AM                                                                                                                    
                                                                                                                                
STEVE TUTT, as a generational commercial fisherman with a long-                                                                 
term interest in the renewable resource, stated support for HB
134.  He stated that he and his family have a long-term, vested                                                                 
interest in the protection of the Bristol Bay fisheries.                                                                        
                                                                                                                                
9:03:48 AM                                                                                                                    
                                                                                                                                
RON BOWERS paraphrased from a prepared statement, which read as                                                                 
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     I have  been an  Alaskan resident  since 1979  and have                                                                    
     lived in Bristol  Bay or on the  Alaska Peninsula since                                                                    
     1983.  My  wife and daughter are  lifelong residents of                                                                    
     this  region.   My  wife  set  netted commercially  for                                                                    
     Salmon  many  years  in  Ekuk and  South  Naknek.    My                                                                    
     daughter  spent  many  summers in  fish  camp  and  has                                                                    
     worked on  fisheries research  projects both  along the                                                                    
     Nushagak [River]  and around  Lake Clark.   While  I no                                                                    
     longer consider  myself a commercial fisherman,  I have                                                                    
     fished for  Halibut and Salmon in  Port Graham, Chignik                                                                    
     and Dillingham quite a few years ago.                                                                                      
                                                                                                                                
     As  a  family  we  participate  almost  year  round  in                                                                    
     subsistence activities  and benefit  from what  God has                                                                    
     blessed  our Bristol  Bay region  with.   From  hunting                                                                    
     Moose/Caribou/Ducks to  berry picking, to  catching our                                                                    
     share of  Salmon/smelts and Halibut.   We fully support                                                                    
     efforts to protect our region's natural resources.                                                                         
                                                                                                                                
     But, we are  not in favor of HB# 134.   We realize that                                                                    
     many  of our  region's  residents are  being forced  to                                                                    
     leave the  land they love  for less costly  urban areas                                                                    
     in our state  such as Anchorage and  the Mat-Su Valley.                                                                    
     While  these communities  offer much,  they are  a long                                                                    
     way from the subsistence  resources and rural lifestyle                                                                    
     we so  dearly cherish.   The main reason  residents are                                                                    
     being  forced to  leave our  region, is  for an  honest                                                                    
     job.   House  Bill  #134 will  only  serve to  decrease                                                                    
     economic  opportunities  for  our residents  and  cause                                                                    
     more to have to move out.                                                                                                  
                                                                                                                                
     While  most testimony  on HB  #134  centers around  The                                                                    
     Pebble Mine and the impacts  of mining.  If passed this                                                                    
     bill would also eliminate  almost any chance of onshore                                                                    
     Oil &  Gas exploration to  occur on most of  the Alaska                                                                    
     Peninsula.    While  offshore  Oil &  Gas  has  been  a                                                                    
     divisive   issue   throughout  Bristol   Bay,   onshore                                                                    
     exploration  has gained  broad  support.   Bristol  Bay                                                                    
     residents  are in  great need  of  new and  diversified                                                                    
     economic  opportunities  such  as  the  employment  and                                                                    
     energy resource the Oil & Gas industry may bring.                                                                          
                                                                                                                                
     This past month my family  has to pay over $700 dollars                                                                    
     for basic services  including electricity/telephone and                                                                    
     internet.  This  does not include the  almost $5 dollar                                                                    
     per gallon gasoline to drive  our small pickup Truck or                                                                    
     the oil  we use to  heat our home.   HB #134  will only                                                                    
     add  another very  thick layer  of bureaucracy  towards                                                                    
     creating economic benefit for  our region.  HB#134 will                                                                    
     chase  off businesses  and investors  who  may want  to                                                                    
     help develop oil  & gas or other  very doable resources                                                                    
     in Bristol Bay.                                                                                                            
                                                                                                                                
     Few things  are more near  to our region's  hearts than                                                                    
     subsistence.   For many  Commercial fishing  is forever                                                                    
     in their  veins.  But  if more economic  development is                                                                    
     not soon  brought to Bristol  Bay, fishing  permits are                                                                    
     going  to continue  to  out-migrate,  young people  are                                                                    
     going to continue to leave  and not come back, and many                                                                    
     will unfortunately  enjoy subsistence activities  for a                                                                    
     few  weeks only  in the  summer when  they return  from                                                                    
     Anchorage.                                                                                                                 
                                                                                                                                
                                                                                                                                
9:07:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON referred to the importance of work                                                                        
availability, and asked how many job listings are in the current                                                                
Dillingham paper.                                                                                                               
                                                                                                                                
MR. BOWERS answered that there are usually about 65 listed every                                                                
day.  However, Dillingham is the hub and for most of the smaller                                                                
communities, he said, "It's very slim."                                                                                         
                                                                                                                                
9:08:14 AM                                                                                                                    
                                                                                                                                
ROGER BURGGRAF paraphrased from a prepared statement, which read                                                                
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     I  have lived  and  worked  in Alaska  since  1953.   I                                                                    
     majored  in  Wildlife  Management and  Conservation  in                                                                    
     college  and  worked  for  the  US  Fish  and  Wildlife                                                                    
     Service for 3  seasons in Alaska as a  stream guard and                                                                    
     Fisheries aide.   I was working for the  USFWS the last                                                                    
     year fish  traps were allowed to  operate and monitored                                                                    
     their activities.   I saw  how Alaskans  interests were                                                                    
     being exploited by outside interests.                                                                                      
                                                                                                                                
     I  am opposed  to HB  134.   Putting  another layer  of                                                                    
     bureaucratic red  tape on management of  the land would                                                                    
     serve  as  another  disincentive  for  the  mining  and                                                                    
     mineral  exploration industry.    The  State of  Alaska                                                                    
     will  not   be  allowed  to  promote   the  responsible                                                                    
     development of other high value resources on its land.                                                                     
                                                                                                                                
     The land encompassed by  the so-called proposed Bristol                                                                    
     Bay Fisheries  Reserve was  originally selected  by the                                                                    
     State for its high mineral potential.                                                                                      
                                                                                                                                
     The Pebble  project has the  possibility of  becoming a                                                                    
     World Class  mining operation, if permitted,  and would                                                                    
     provide millions  of dollars  in revenues to  the State                                                                    
     of  Alaska.   It would  provide for  thousands of  high                                                                    
     paying jobs  for Alaskans (especially local  people who                                                                    
     live  in an  economically  depressed area).   Spin  off                                                                    
     benefits to  local communities  would flourish.   There                                                                    
     is no base for that now.                                                                                                   
                                                                                                                                
     Under  the constitution  of Alaska  you as  Legislators                                                                    
     have an obligation  to see to it that  Alaskans get the                                                                    
     maximum  benefit from  the lands  it selected  from the                                                                    
     Federal  Government.   The passage  of this  bill would                                                                    
     send a  strong negative message to  the mining industry                                                                    
     and   other  resource   development  industries   doing                                                                    
     business   in   Alaska,   thereby   discouraging   many                                                                    
     potential investors.                                                                                                       
                                                                                                                                
     I  see  HB 134,  as  nothing  more  than an  effort  to                                                                    
     subvert   the  existing   permitting   process.     The                                                                    
     permitting process  is thorough  and time-tested  to be                                                                    
     state-of-the-art in  determining whether a mine  can be                                                                    
     developed  and  operated  in an  environmentally  sound                                                                    
     manner.  However,  lodges in the area  would be allowed                                                                    
     to  continue operations  in their  exclusive playground                                                                    
     for the rich and influential  and be undisturbed.  This                                                                    
     is very discriminatory.                                                                                                    
                                                                                                                                
     The future  of Alaska  is dependent on  the responsible                                                                    
     development  of our  natural resources-petroleum,  gas,                                                                    
     minerals, lumber, and fisheries.   All effort should be                                                                    
     made to facilitate that  development for the betterment                                                                    
     of  Alaskans  in  accordance  with  our  Constitutional                                                                    
     mandate "It  is the  policy of  the State  to encourage                                                                  
     the settlement of  its land and the  development of its                                                                  
     resources  by making  them  available  for maximum  use                                                                  
     consistent  with  the  public interest."    A  balanced                                                                  
     approach  is imperative  for the  benefit  of all,  not                                                                    
     just  a few  influential special  interest persons  and                                                                    
     groups at the expense of the general population.                                                                           
                                                                                                                                
9:13:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON  pointed out  that  when  the Bristol  Bay                                                               
fisheries reserve concept  came forward in 1972, oil  and gas and                                                               
mineral exploration were  listed in the language.   However, when                                                               
the Alaska Native  Interest Lands Claim Act  (ANILCA) was passed,                                                               
mineral exploration  was omitted.  Additionally,  he offered that                                                               
he has had the opportunity to tour  the Fort Knox Mine.  The Fort                                                               
Knox Mine,  as well as  the Pogo  Mine, are located  in sensitive                                                               
ecological areas, but  not to the degree that  surround where the                                                               
Pebble Mine  would be sited;  in terms of salmon  bearing streams                                                               
that support the richest sockeye fishery in the world.                                                                          
                                                                                                                                
MR. BURGGRAF opined that the permitting process will insure that                                                                
the fishery reserve is protected; it may disturb a large area of                                                                
land but it can be done in a responsible manner.                                                                                
                                                                                                                                
9:15:37 AM                                                                                                                    
                                                                                                                                
BRIAN KRAFT, Trout Unlimited paraphrased from a prepared                                                                        
statement, which read as follows [original punctuation                                                                          
provided]:                                                                                                                      
                                                                                                                                
     TU [Trout Unlimited] and I  support HB 134 and for that                                                                    
     matter any  bill that would promote  the protection and                                                                    
     conservation  of  our  rivers   and  the  habitat  that                                                                    
     supports  our fisheries.   The  proposed protection  of                                                                    
     the area  that [HB] 134  addresses , is and  has always                                                                    
     been,  needed.    We  are  just  fortunate  that  until                                                                    
     recently  our rivers  and fish  habitat  have not  been                                                                    
     threatened.   HB134 addresses the  need to  ensure that                                                                    
     these critical areas remain intact  and able to provide                                                                    
     the nutrient  rich environment that allows  our Bristol                                                                    
     Bay  salmon stocks  to continue  to  return in  massive                                                                    
     numbers  each summer.   It  also ensures  that resident                                                                    
     fish  populations,  which   are  used  for  subsistence                                                                    
     choice of  lifestyle and support  a $100M a  year sport                                                                    
     fish industry, will  also remain healthy.   A bill such                                                                    
     as [HB] 134  would be needed no matter  if the industry                                                                    
     to  come into  the  area  were going  to  be Oil,  gas,                                                                    
     logging,  mining,  or  a bunch  of  fishing  lodges  or                                                                    
     tourism based  businesses.  Since spawning  and rearing                                                                    
     grounds are  of vital importance  in the life  cycle of                                                                    
     ours salmon, a law should  be in place that ensures the                                                                    
     compatibility with  this habitat  of any  industry that                                                                    
     wishes  to  operate  in  these  critical  areas.    The                                                                    
     industry  should  not be  allowed  if  it is  going  to                                                                    
     destroy rivers,  lakes and groundwater.   Therefore, it                                                                    
     should be a  law, such as HB134, that  makes it illegal                                                                    
     to do  so.  It  just so happens  that our luck  has run                                                                    
     out in regards to the  status quo for the headwaters of                                                                    
     some of these critical rivers in  the Bay area.  We are                                                                    
     no longer able  to just rely on  Mother Nature combined                                                                    
     with conservative  fish and  game management  to ensure                                                                    
     us of healthy fish stocks.   We must now take action to                                                                    
     protect these waters and habitat.   The threat that has                                                                    
     expedited the need for this  bill to the forefront just                                                                    
     happens  to be  large scale  chemical metallic  sulfide                                                                    
     mining.   The  reason that  threat to  these rivers  is                                                                    
     very  real  in  respect  to  this  industry  is  simply                                                                    
     because  of  the  location  of  the  minerals  and  the                                                                    
     process in  which it takes  to extract them  in regards                                                                    
     to vital habitat.   The very nature of  the large scale                                                                    
     mining  industry  is that  it  crushes  up earth  on  a                                                                    
     missive  scale -  or  as is  the case  in  this area  -                                                                    
     spawning  grounds.    The recent  track  record  [that]                                                                    
     chemical mining  has had in  the Western US  is dismal.                                                                    
     Montana has outlawed the process  that would be used at                                                                    
     Pebble.   We are having  water quality problems  in the                                                                    
     Nevada desert.   But as bad as the  mining industry has                                                                    
     been  in sensitive  areas like  Montana that  have some                                                                    
     similar  environmental characteristics  as the  Bristol                                                                    
     Bay area, this  bill is not an anti-mining bill.   As I                                                                    
     stated,  the protection  of  clean  rivers and  healthy                                                                    
     fish habitat  is paramount.   All other uses  should be                                                                    
     consistent  and compatible  with operating  [while] not                                                                    
     destroying  rivers  and  fish.    This  bill  does  not                                                                    
     scrutinize the  permitting process or  DEC requirements                                                                    
     or EPA  regulations.  This  bill is simply a  pro clean                                                                    
     water and pro healthy habitat bill.   It is a bill that                                                                    
     does  not  prohibit  any  industry  from  operating  in                                                                    
     Bristol  Bay.   Since DNR  and ultimately  the Governor                                                                    
     have the authority,  and as I learned 2  weeks ago, the                                                                    
     discretion,  to  determine  if  it  is  ok  to  destroy                                                                    
     habitat  because  of  a perceived  benefit,  a  law  is                                                                    
     needed  that eliminates  any  political  agenda and  in                                                                    
     plain language  states that we,  the people  of Alaska,                                                                    
     will not  allow the spawning  grounds of our  salmon to                                                                    
     be ruined.   This bill  would make  it the law  that an                                                                    
     industry can  operate in  the region,  but it  just can                                                                    
     not destroy rivers  and healthy fish habitat  to do so.                                                                    
     What is  wrong with that?   Do the project,  just don't                                                                    
     take  the  water from  our  streams  and destroy  vital                                                                    
     habitat to do so.  How  can you not support a bill that                                                                    
     promotes that?   I would like to know  exactly how this                                                                    
     bill would  make it  so that Pebble  or any  other mine                                                                    
     would not be  able to operate in the  Bristol Bay area.                                                                    
     Maybe that  question needs  to be  asked here  today by                                                                    
     this committee.  The answer  might open all of our eyes                                                                    
     as  to what  really is  planned for  the region  and to                                                                    
     further justify the need for the passage of HB 134.                                                                        
                                                                                                                                
                                                                                                                                
MR. KRAFT stated uncertainty whether this bill would prohibit                                                                   
other mining activity.                                                                                                          
                                                                                                                                
9:21:56 AM                                                                                                                    
                                                                                                                                
RICKY  GEASE referred  to the  previously  mentioned survey,  and                                                               
opined that  the questions may  have been leading.   He explained                                                               
the  way  in  which  an   "either/or"  vs.  "both/and"  questions                                                               
influence  the  outcome  of  any  survey.    Additionally,  water                                                               
reservation systems are  already in place, and  he suggested that                                                               
a discussion  should address what  the minimum water  amounts are                                                               
for salmon.   On the Kenai Peninsula water  reservations are made                                                               
for that  purpose.  Reading  from the  bill he commented  that it                                                               
appears as  though a  de facto, 100  percent water  allocation is                                                               
being made  to support fish  and wildlife, and he  suggested that                                                               
the minimum  water requirements be identified  instead.  Further,                                                               
he  opined that  if this  bill were  being applied  to the  Kenai                                                               
Peninsula,  it  would have  devastating  effects  on the  diverse                                                               
economy that exists in that area.                                                                                               
                                                                                                                                
9:24:17 AM                                                                                                                    
                                                                                                                                
VERNER  WILSON,  III,  as a  generational  commercial  fisherman,                                                               
stated support  for HB 134.   He related his family's  history as                                                               
fishermen,   and   emphasized   the  benefits   of   eating   the                                                               
uncontaminated fish  produced in  the region.   By  expanding the                                                               
fisheries marketing techniques, he  predicted that the demand for                                                               
untainted  sockeye will  continue  to  grow, replacing  standards                                                               
such as tuna.  Fresh, clean  fish will always be sought after, he                                                               
opined.                                                                                                                         
                                                                                                                                
9:28:14 AM                                                                                                                    
                                                                                                                                
DICK MYLIUS, Acting Director, Division  of Mining, Land and Water                                                               
(DMLW), Department  of Natural Resources (DNR),  paraphrased from                                                               
a   prepared  statement,   which   read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The  Department of  Natural Resources  does not  have a                                                                    
     position on this bill but  would like to explain how it                                                                    
     impacts  DNR's  water  management program  and  how  it                                                                    
     could impact state lands.                                                                                                  
                                                                                                                                
     First, I would like to  briefly explain the Division of                                                                    
     Mining,  Land and  Water's  role  in water  management.                                                                    
     DMLW  is responsible  for  allocations  of the  state's                                                                    
     water  resources  under   Alaska  Statutes  46.15,  the                                                                    
     Alaska Water Use  Act.  Our authority  deals with water                                                                    
     quantity.  We  approve water rights for  long term uses                                                                    
     of water,  issue permits for  temporary water  use, and                                                                    
     are responsible for the state's instream flow program.                                                                     
                                                                                                                                
     We  do not  deal  with  water quality,  that  is a  DEC                                                                    
     issue.                                                                                                                     
                                                                                                                                
     DMLW also manages the state  owned land, including land                                                                    
     under  navigable  waters  and tidelands  and  submerged                                                                    
     lands out to three mile.   DMLW issues permits for uses                                                                    
     of these lands.                                                                                                            
                                                                                                                                
     House Bill 134  has a significant impact  on these DMLW                                                                    
     programs.   The bill would  limit where we  can approve                                                                    
     water rights or permits for water use.                                                                                     
                                                                                                                                
     HB  134  requires  that  no water  can  be  taken  from                                                                    
     surface or  subsurface waters of  this area  except for                                                                    
     uses  that area  already approved,  drinking water  and                                                                    
     domestic  use,  municipal uses,  traditional,  cultural                                                                    
     and   residential   uses,  energy   projects,   seafood                                                                    
     processing, and transportation.                                                                                            
                                                                                                                                
     This  would  impact  DNR's water  management  authority                                                                    
     over approximately 19 million  acres of land and waters                                                                    
     within  the   watersheds  of  the   Nushagak,  Kvichak,                                                                    
     Naknek,  Egegik, and  Ugashik Rivers.   Because  all of                                                                    
     the state's water resources are  reserved to the people                                                                    
     of Alaska,  any restrictions apply to  all water users,                                                                    
     whether  on  state,   municipal,  federal,  or  private                                                                    
     lands.                                                                                                                     
                                                                                                                                
     There are no resources in  Alaska that can be developed                                                                    
     without the use of water.                                                                                                  
                                                                                                                                
     If this  legislation passes, DNR  would not  be allowed                                                                    
     to issue  water rights  or water  use permits  for many                                                                    
     activities that  may occur within these  watersheds, or                                                                    
     even for many existing uses  that do not yet have water                                                                    
     rights.                                                                                                                    
                                                                                                                                
     The state  owned portion of these  lands (approximately                                                                    
     9 to  10 million  acres) contain  numerous, significant                                                                    
     mineral  deposits  and  is   considered  to  have  high                                                                    
     mineral  potential.   The area  also has  potential for                                                                    
     oil  or  gas  development,  DNR has  held  lease  sales                                                                    
     within this  area and  portions of  the reserve  are on                                                                    
     the  state's areawide  leasing  schedule.   These  uses                                                                    
     need water for exploration and development.                                                                                
                                                                                                                                
     In  addition to  mining  and oil  gas potential,  these                                                                    
     lands   are  suitable   for   other  commercial   uses,                                                                    
     including commercial  recreation.  Most  new commercial                                                                    
     and industrial uses,  including commercial recreational                                                                    
     activities, within this area  could not get approval to                                                                    
     use  water  and  could  not  be  developed  under  this                                                                    
     legislation.                                                                                                               
                                                                                                                                
     In  addition,  DMLW  permits  in  water  uses  such  as                                                                    
     erosion control  structures, fish  weirs and  under the                                                                    
     bill these uses would generally not be allowed.                                                                            
                                                                                                                                
     The  Department has  three general  concerns about  the                                                                    
     legislation   as    proposed   -   first    it   raises                                                                    
     constitutional  issues;  second  the  location  of  the                                                                    
     proposed   statute   raises    questions   about   what                                                                    
     department  and third,  the exceptions  in  part b,  on                                                                    
     page 2, lines 17-21, are not defined.                                                                                      
                                                                                                                                
     Briefly on each of these:                                                                                                  
                                                                                                                                
     Constitutionality:   The water rights program  that DNR                                                                    
     administers   is    based   on    specific   guidelines                                                                    
     established  in  Article   VIII  of  the  Constitution.                                                                    
     There  are serious  questions of  whether the  proposed                                                                    
     action to out rightly  prohibit most appropriation, use                                                                    
     or  management   of  water  resources   by  legislation                                                                    
     violates    Article   VIII    of   the    Constitution,                                                                    
     particularly  Section 13.   It  is  suggested that  the                                                                    
     Attorney  General's office  review  this  bill for  any                                                                    
     constitutional conflicts.                                                                                                  
                                                                                                                                
     Whose  Authority.    The bill  creates  ambiguity  with                                                                    
     regard to  which agency  determines whether  a proposed                                                                    
     water  used  is  prohibited under  AS  16.10.015(a)  or                                                                    
     allowed  under (b).    Currently  the appropriation  of                                                                    
     water  resources  is managed  by  DNR  under AS  46.15,                                                                    
     however  the  bill   places  the  prohibition/allowance                                                                    
     language under DEC's authority  under Title 16, Chapter                                                                    
     10, Article 1.  This  conflict in statute and authority                                                                    
     for determination of water use needs to be addressed.                                                                      
                                                                                                                                
     Terms:  Several  of the terms used in the  bill such as                                                                    
     "ordinary   existing   and  future   municipal   uses",                                                                    
     "traditional   uses",  "cultural   uses",  "residential                                                                    
     uses",  "energy projects"  are  not  defined either  in                                                                    
     this proposed legislation  or in the body  of state law                                                                    
     dealing  with water  use and  management.   These terms                                                                    
     need   to  be   defined  in   order  that   the  proper                                                                    
     legislative intent is made known.                                                                                          
                                                                                                                                
9:33:20 AM                                                                                                                    
                                                                                                                                
BILLY MAINES stated support for the intent of HB 134.  He said:                                                                 
                                                                                                                                
     When  you   look  around  the  state   you  see  [that]                                                                    
     different regions bring different  things to the table.                                                                    
     You  think of  the North  Slope, you  think of  oil and                                                                    
     gas; Southeast  - timber, tourism;  Bristol Bay  - it's                                                                    
     always been fish.   The state and  residents of Bristol                                                                    
     Bay  have benefited  and utilized  this rich  renewable                                                                    
     resource  for  centuries.    Those  benefits  and  that                                                                    
     utilization   [are]  at   threat   currently  in   many                                                                    
     fashions.   The state has invested  millions of dollars                                                                    
     in  promoting,   and  advertising,  our   wild,  clean,                                                                    
     pristine  salmon.   Consumers, whether  you know  it or                                                                    
     not, are  really fickle.   The  hint of  anything wrong                                                                    
     with  something drives  them  away.   I  don't need  to                                                                    
     mention the  Mad Cow disease,  what it did to  the beef                                                                    
     industry;  Bird Flu for  poultry; farm fish, for awhile                                                                    
     they were  the answer  and that  drove our  wild salmon                                                                    
     down.    But  guess  what, they  found  out  there  was                                                                    
     something  wrong  with farmed  fish.    Well, our  wild                                                                    
     salmon's  coming back  up.   I don't  understand what's                                                                    
     changed in 35 years.   The 7th state Alaska Legislature                                                                    
     understood the importance of  our salmon; our resource.                                                                    
     Lease Sale 92 was put on  the shelf.  Now it's back up.                                                                    
     I don't  understand what really  has changed.   I don't                                                                    
     understand  why  we  have  to  give  up  something  for                                                                    
     jewelry,  or  for the  promise  of  maybe getting  some                                                                    
     lower cost of  fuel.  But where it's at,  has no chance                                                                    
     of  making it  to Bristol  Bay.   Dillingham is  at the                                                                    
     bottom  of  the watershed.    I've  been studying  this                                                                    
     issue now for four years;  I'm trying to become a miner                                                                    
     in my  mind.  The  mining industry doesn't have  a good                                                                    
     record.  In the state  of Alaska, Pebble [Mine] that is                                                                    
     being proposed right now, for  the possibility of being                                                                    
     permitted,   or    submitting   an    application   for                                                                    
     permitting, is something that the  state has never seen                                                                    
     before.    Other states  in  the  country, as  well  as                                                                    
     around the world, have seen  something close to Pebble,                                                                    
     and  they've had  to pay  the adverse  effects of  that                                                                    
     happening in their backyard.                                                                                               
                                                                                                                                
9:36:58 AM                                                                                                                    
                                                                                                                                
LISA KREBS,  speaking as  a long  time fishermen,  stated support                                                               
for HB  134.  Although she  does not live in  the immediate area,                                                               
she opined  that [the  ethos] lives strongly  in the  Homer area,                                                               
through the  various local  fishermen and  crew members  who hold                                                               
permits  to  harvest  Bristol  Bay.   Citing  the  importance  of                                                               
Bristol Bay  to many  regions, she stated  surprise at  having to                                                               
come  before  the  legislature to  request  protection  of  these                                                               
waters.      Considering  putting   this   area   in  danger   is                                                               
unconscionable, she said.                                                                                                       
                                                                                                                                
9:38:37 AM                                                                                                                    
                                                                                                                                
NANCI MORRIS  LYON, Vice Chair, Bristol  Bay Regional Subsistence                                                               
Advisory Council; Board Member,  Bristol Bay Chamber of Commerce;                                                               
Board Member,  South West  Alaska Conservation  Coalition; Owner,                                                               
Katmai  Fishing Adventures,  King Salmon,  stated support  for HB
134,  paraphrasing  from  a  statement,  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     The Wild  Salmon Protection Act would  protect Alaska's                                                                    
     greatest   fishery   resources   by   prohibiting   the                                                                    
     withdrawal,  obstruction,  pumping,   or  pollution  of                                                                    
     surface  water  in  any   Bristol  Bay  drainages  that                                                                    
     support our numerous, pristine, trophy fisheries.                                                                          
                                                                                                                                
     These fisheries  have become known  world wide  for the                                                                    
     legendary  sport  fish   opportunities  they  offer  to                                                                    
     residents and visitors alike.   The recent study funded                                                                    
     by  Trout Unlimited  showed that  our recreational  and                                                                    
     commercial fisheries have  a multimillion dollar value.                                                                    
     That value  is a sustainable resource  value, something                                                                    
     that  I like  to call  the gift  that keeps  on giving.                                                                    
     The information it contained even  surprised most of us                                                                    
     locals.   Quite  frankly I'm  not sure  we were  giving                                                                    
     enough  value  to our  fishery  before  this study  was                                                                    
     published.                                                                                                                 
                                                                                                                                
     This  legislation  also  prohibits the  destruction  of                                                                    
     salmon   habitat,  creates   a   fining  schedule   for                                                                    
     violating  these  protections,  and  protects  existing                                                                    
     water uses including the historic  uses we have enjoyed                                                                    
     for more  years then  we can  count.   I think  that it                                                                    
     will  be a  positive  step in  the  right direction  to                                                                    
     insure  that  anybody  coming into  our  back  yard  to                                                                    
     remove    a   non-sustainable    resource,   be    held                                                                    
     accountable.   Most of the resource  development I have                                                                    
     heard about plans  to leave very little in  the area to                                                                    
     support  us  financially  after   they  leave  or  with                                                                    
     promises of the ability to  feed our families in future                                                                    
     years.  Because  of that I find  it extremely important                                                                    
     that  we offer  protection to  the resources  that have                                                                    
     been our past,  present and I hope will  be our future,                                                                    
     the out standing fisheries and clean environment.                                                                          
                                                                                                                                
     I would like to add that it  is not my purpose nor do I                                                                    
     believe that  it is this  Bill's purpose    to preclude                                                                    
     development  in   Bristol  Bay.     We   need  economic                                                                    
     development  and help  for our  villages on  the Alaska                                                                    
     Peninsula.  I  firmly believe that the  purpose of this                                                                    
     bill  is  to create  standards  of  protection for  the                                                                    
     fisheries and  environment in  Bristol Bay!   Something                                                                    
     that has  been recognized in  the past and I  feel that                                                                    
     it is  again warranted  the highest priority  to ensure                                                                    
     future use of our precious resources.                                                                                      
                                                                                                                                
     There  is currently  tremendous growth  in the  Bristol                                                                    
     Bay  commercial  sport fishery.    We  are seeing  more                                                                    
     Native Corporations and  area Villages taking advantage                                                                    
     of   the  opportunities   available  from   owning  and                                                                    
     operating  lodges  to  offering  support  services  for                                                                    
     visitors  to  our area.    Our  local Southwest  Alaska                                                                    
     Vocational and  Educational Center here in  King Salmon                                                                    
     in conjunction  with UAF just completed  freshwater and                                                                    
     saltwater Coast  Guard Licensing Classes.   They had 10                                                                    
     students  in  the  Freshwater class  of  which  7  were                                                                    
     Alaskan  Natives.     They  have  held   these  courses                                                                    
     successfully for the past several  years.  In addition,                                                                    
     last year they  offered a class on  sport fish guiding,                                                                    
     graduating a  total of 10  students of which  over half                                                                    
     were  Alaskan natives.   These  classes were  all fully                                                                    
     funded from BBEDC, a TRIO  grant and UAF itself, so the                                                                    
     cost was not a factor.   My operation hired one of last                                                                    
     year's graduates and we were  looking for 2 others, but                                                                    
     none  of  the students  were  available,  they all  had                                                                    
     commitments.  The  class is scheduled to  be held again                                                                    
     this year and  we will again be  looking for graduates.                                                                    
     I  know this  isn't the  forum  for job  search, but  I                                                                    
     listened on  Wednesday and  heard about  several locals                                                                    
     who couldn't  find work in  the sport fish  industry, I                                                                    
     encourage  them to  send us  a resume,  we love  hiring                                                                    
     local and are  always looking for more  Alaskans to add                                                                    
     to our staff.                                                                                                              
                                                                                                                                
     The  sport fish  and  commercial  fish industries  have                                                                    
     worked hard,  for decades on  bringing a  message about                                                                    
     Bristol Bay,  a message  that not  only states  that we                                                                    
     have  the largest  abundance and  size  of fresh  water                                                                    
     fish and  salmon available on  earth, we also  have the                                                                    
     most   pristine,  crystal   clear,   clean  water   and                                                                    
     environment available.  Users  of our precious resource                                                                    
     all across  the globe, give our  markets sustainability                                                                    
     because  of   the  pure  environment  we   can  and  do                                                                    
     guarantee.    Once again  testimony  to  the gift  that                                                                    
     keeps on giving.                                                                                                           
                                                                                                                                
     In  closing, I  feel  the Wild  Salmon Protection  Act,                                                                    
     along with the Jay Hammond  State Game Refuge bill will                                                                    
     offer immeasurable  help to the fisheries  by enhancing                                                                    
     the  pure, pristine,  contaminant  free  image of  Wild                                                                    
     Bristol  Bay and  will help  to  protect our  renewable                                                                    
     resources far into the future  by ensuring that habitat                                                                    
     protection   standards  are   carefully  designed   and                                                                    
     implemented.                                                                                                               
                                                                                                                                
9:43:08 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if she  holds perfected water rights  for the                                                               
lodge.                                                                                                                          
                                                                                                                                
MS. MORRIS LYON responded, "Yes."                                                                                               
                                                                                                                                
9:43:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON referred  to previous  testimony regarding                                                               
the minimal  economic benefit  of the  sport fishing  industry to                                                               
the area, and asked if her business hires local residents.                                                                      
                                                                                                                                
MS. MORRIS  LYON responded that  locals are her first  choice for                                                               
hiring.   If  a local  is not  hired, housing  becomes an  issue.                                                               
However, many  of the local  residents are  commercial fishermen,                                                               
and  are  absent  during  the  openings.    This  is  an  ongoing                                                               
conflict, she  said, but they are  still the priority hire.   She                                                               
suggested  that Natives  hoping  to work  in  this field,  expand                                                               
their job search.                                                                                                               
                                                                                                                                
9:44:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked how many Natives  she employed last                                                               
year.                                                                                                                           
                                                                                                                                
MS. MORRIS LYON  responded that out of her total  staff of ten, 2                                                               
were Native and 9 were Alaskans.                                                                                                
                                                                                                                                
9:45:03 AM                                                                                                                    
                                                                                                                                
GARVAN BUCARIA, Retired Biologist, stated  support for HB 134 and                                                               
the establishment of  the Jay Hammond Refuge area.   He discussed                                                               
the importance and  action due to lake  temperature, which causes                                                               
a semi-annual turnover in every  lake including a dead lake; that                                                               
being  a lake  created for,  or used  as, a  depository for  mine                                                               
tailings.   These  tailings will  contain chemical,  and mineral,                                                               
residue that  will leach into  the water.   He explained  how the                                                               
adaptability of insect larvae will  manage to live in the adverse                                                               
conditions and  eventually emerge,  during the  seasonal turnover                                                               
of  the  water.    These aquatic  insects  will  incorporate  the                                                               
harmful residues into their own  hemoglobin's, and serve to carry                                                               
it into the  various trophic levels of the food  web.  The result                                                               
will  be  that  these  materials will  eventually  penetrate  the                                                               
entire  ecosystem.   With  the  occurrence of  biomagnifications,                                                               
even  a "dead"  lake can  have  effects on  salmon resources,  he                                                               
opined.  It is  hard to know how many years it  will take, but at                                                               
some point in the future the  build up of these heavy metals, and                                                               
other materials, will render the  fish contaminated and inedible.                                                               
The Kensington mine  [north of Juneau] has won  approval for this                                                               
type of an  approach to mining [settling  pond, repository lake].                                                               
He  cited  his  master's  thesis,   available  at  the  Auke  Bay                                                               
Laboratory,  University of  Alaska Southeast,  Auke Bay,  Alaska,                                                               
for further information.                                                                                                        
                                                                                                                                
9:50:13 AM                                                                                                                    
                                                                                                                                
TERRY HOEFFERLE,  stated support  for HB  13[4], opining  that it                                                               
will build on the future of  the ecosystem of Bristol Bay.  Steps                                                               
have been taken  in the past to protect the  Bristol Bay area, by                                                               
those who  worked to  frame the Alaska  Constitution, as  well as                                                               
      th                                                                                                                        
the  7   Alaska  Legislature.   Governor  Jay  Hammond worked  to                                                               
preserve this area  through the land settlement  agreements.  The                                                               
protection  provided  by this  bill  will  lay a  foundation  for                                                               
responsible  development.   It is  incumbent  to step  up to  the                                                               
plate, and continue  to recognize and protect  the unique aspects                                                               
of Bristol Bay.   Mining laws in  the state of Alaska  are not up                                                               
to date,  nor do  they provide adequate  protection.   He stated,                                                               
"This area is  not just Southwest Alaska, it's a  blessing to the                                                               
whole state."   He called attention  to the residents as  well as                                                               
the   wildlife  that   inhabit   the  area.      The  burden   of                                                               
accountability, he suggested should  be placed on the developers.                                                               
They should be required to  "come-up to our standards, to respect                                                               
the way that we feel about Bristol Bay."                                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON opined that  this bill would eliminate all                                                               
the development in the area.                                                                                                    
                                                                                                                                
MR. HOEFFERLE responded  that he does not believe  that this bill                                                               
will stop  all development of  the area, and cited  the exception                                                               
clauses in provided in Section 2.                                                                                               
                                                                                                                                
9:56:01 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON referred to the  testimony received from DNR stating                                                               
that,  under the  current draft  of the  bill, water  use permits                                                               
could  not  be  issued  for any  development,  including  fishing                                                               
lodges and weirs.                                                                                                               
                                                                                                                                
9:56:43 AM                                                                                                                    
                                                                                                                                
LUCY  WEEDMAN,  speaking  as  a  generational  subsistence  user,                                                               
stated support for HB 134.   She stated concern for the danger of                                                               
pollution,  with the  mining industry  in the  "back yard."   The                                                               
fresh water fish, as well as  the salmon require protection.  Not                                                               
only do  the salmon use  the watershed but  so do the  people, as                                                               
well as  the game, she pointed  out.  She said,  everyone here is                                                               
dependent on the  fish and game out, due to  the ever rising cost                                                               
of living.  She continued:                                                                                                      
                                                                                                                                
     Bristol Bay  specifically has the most  pristine water,                                                                    
     and it  is getting polluted by  mining industries doing                                                                    
     exploration studies.  ... We  do have some  states that                                                                    
     have  outlawed  mining  ...   due  to  the  devastating                                                                    
     destruction  of  salmon,  fish   and  game,  and  their                                                                    
     habitat.   Until  the mining  industries  can prove  by                                                                    
     example and not by  technological analysis, that a mine                                                                    
     can operate  safely, without environmental damage.   To                                                                    
     date  the mining  industry cannot  prove that  they can                                                                    
     operate safely without any damage.                                                                                         
                                                                                                                                
MS. WEEDMAN stated that she  has taken courses on mining provided                                                               
by  the mining  association.   One question  that stood  out, she                                                               
noted, is that  the mining industry has stated  their interest in                                                               
mitigating every subsistence  user, should a mishap  occur.  This                                                               
is a fallacy, it would be  impossible, she opined, and people may                                                               
end up depending  on the state welfare system.   HB 134 should be                                                               
passed to insure the livelihood  of the people for generations to                                                               
come.   Last year Northern  Dynasty applied for water  rights for                                                               
two water systems.  The amount  of water that was requested would                                                               
dry up the rivers,  streams, and creek beds.  It  equated to 2 or                                                               
3 times  the amount  of water  that the  city of  Anchorage uses.                                                               
This would eliminate the salmon runs.                                                                                           
                                                                                                                                
10:01:56 AM                                                                                                                   
                                                                                                                                
ROBERTA HIGHLAND,  stated support  for HB  134, and  stressed the                                                               
need to prevent  development that creates pollution.   She opined                                                               
that harmful,  watershed pollution should not  be tolerated, from                                                               
any industry or  municipality.  There are  many developments that                                                               
can be  done cleanly.   She  said, "The  humans and  the wildlife                                                               
deserve to have the clean water."                                                                                               
                                                                                                                                
CHAIR SEATON established that this  bill is not on pollution, but                                                               
rather on water  use, and asked if she wished  to voice a concern                                                               
on the aspect of water usage.                                                                                                   
                                                                                                                                
MS. HIGHLAND  clarified that her  statement addresses the  use of                                                               
the water, and anything that would destroy salmon habitat.                                                                      
                                                                                                                                
10:04:14 AM                                                                                                                   
                                                                                                                                
SHARON ANDERSON,  Member, Truth About Pebble,  paraphrased from a                                                               
prepared statement,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     I  believe  it is  a  priority  for  Alaska to  have  a                                                                    
     balance  of  economic   development  and  environmental                                                                    
     concerns.   I  am opposed  to  the passage  of HB  134.                                                                    
     Alaska  has laws  and regulations  to protect  our fish                                                                    
     and game resources and they  are important, but HB 134,                                                                    
     which  is to  take effect  immediately, inappropriately                                                                    
     brings to  a halt  future development  in an  area that                                                                    
     was specifically  selected for its  significant mineral                                                                    
     potential,   without   allowing   Alaska's   permitting                                                                    
     processes to  be completed.   More importantly,  HB 134                                                                    
     restricts  those that  live in  the Lake  and Peninsula                                                                    
     Borough  the  opportunity  for  alternative  additional                                                                    
     economic development;  i.e. new skills and  trades, and                                                                    
     improved medical  care.  This  area of Bristol  Bay has                                                                    
     some of  the highest  unemployment rates in  the State.                                                                    
     HB 134  will make  a blanket  moratorium on  nearly all                                                                    
     future  mining  development,   including  the  proposed                                                                    
     Pebble  Mine project  that has  an  estimated value  of                                                                    
     over $200 billion.  Mining  and fisheries can co-exist.                                                                    
     In British  Columbia's Frasier River area,  the world's                                                                    
     2nd  largest salmon  producing system,  none of  the 64                                                                    
     historic  mines  or  eight   active  mines  has  had  a                                                                    
     negative  impact  on  the fishery.    One  of  Northern                                                                    
     Dynasty's sister  companies has operated  the Gibraltar                                                                    
     Mine since the  1970's - this mine is  six times closer                                                                    
     to  the  Frasier River  than  Pebble  would be  to  the                                                                    
     Kvichak River and ten times  closer what it would be to                                                                    
     the  Nushagak  River.   What  HB  134 does  achieve  is                                                                    
     legislation  based on  emotional outbreak,  assumptions                                                                    
     and  a lot  of "what-ifs",  instead of  those based  on                                                                    
     sound  research and  data from  the  rigor of  Alaska's                                                                    
     permitting processes.   We do  not need to lock  up any                                                                    
     more land and limit Alaska's future opportunities.                                                                         
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  EDGMON  clarified  that the  Truth  About  Pebble                                                               
organization was  recently formed, and is  comprised primarily of                                                               
people who do not reside in the  region.  He pointed out that the                                                               
chairman of Northern  Dynasty has made a statement  to the effect                                                               
that any efforts  to stop the permitting process,  for the Pebble                                                               
Mine, will fail  miserably.  This contrasts with  the Truth About                                                               
Pebble stance that  the permitting process will be  taken up with                                                               
confidence.  He asked for her comments on this disparity.                                                                       
                                                                                                                                
MS.  ANDERSON stated  that the  Truth About  Pebble has  over 200                                                               
members  from  across the  state,  whose  primary concern  is  to                                                               
insure  that   any  developer  in   the  state  be   allowed  the                                                               
opportunity of the  permitting process.  She opined that  it is a                                                               
stringent process.                                                                                                              
                                                                                                                                
REPRESENTATIVE EDGMON concluded that  Truth About Pebble believes                                                               
that "the permitting  process still has yet to occur  and that it                                                               
is  a fair  process, and  when it's  completed it  will basically                                                               
make the decision."                                                                                                             
                                                                                                                                
MS. ANDERSON  responded affirmatively  and said that  the project                                                               
is still  2 years away  from completing the  Environmental Impact                                                               
Statement (EIS).                                                                                                                
                                                                                                                                
10:09:12 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE LEDOUX  observed that several comments  have cited                                                               
Alaska's rigorous permitting process.   Referring to the issue of                                                               
having the  Office of Habitat  Management and  Protection (OHM&P)                                                               
located within the Department of Natural Resources (DNR) vs. the                                                                
Alaska Department of Fish & Game (ADF&G), she asked if Ms.                                                                      
Anderson wished to comment.                                                                                                     
                                                                                                                                
MS. ANDERSON offered no opinion, but she reiterated her personal                                                                
confidence in the process.                                                                                                      
                                                                                                                                
10:10:27 AM                                                                                                                   
                                                                                                                                
RICHARD KING, stated support for HB 134.  He said:                                                                              
                                                                                                                                
     The developer  for the Pebble [Mine]  project said that                                                                    
     there would be  no net loss to salmon.   Then why isn't                                                                    
     he standing  in this  room saying  "I support  [HB] 134                                                                    
     ...?   I'll  tell you  why, he  knows the  truth.   You                                                                    
     can't put a mine and  its mixing zones in the watershed                                                                    
     and still have no net loss.   He himself stated that if                                                                    
     [HB] 134 goes  through, it will shut  the project down;                                                                    
     because he knows the truth,  it must pollute.  Northern                                                                    
     Dynasty  came to  our  village, which  is  Ekwok.   His                                                                    
     representatives  told us  about  the  Pebble Mine.  ...                                                                    
     Every time  [that] we  look at  the Pebble  project the                                                                    
     representatives  of  the  company change  the  subject:                                                                    
     "Look at  the jobs!"   If they  can keep us  looking at                                                                    
     the  jobs,  who will  protect  the  fish and  the  real                                                                    
     Alaskans, ... who  live here?  If his  technology is so                                                                    
     good  he   should  be  here  saying,   "I  support  you                                                                    
     Alaskans."   This isn't  a job  search, this  is Alaska                                                                    
     wild and pure.                                                                                                             
                                                                                                                                
10:12:45 AM                                                                                                                   
                                                                                                                                
GINA MARIE POPE, stated support for HB 134, paraphrasing from a                                                                 
prepared statement, which read as follows [original punctuation                                                                 
provided]:                                                                                                                      
                                                                                                                                
     I've   grownup   in   the  Iliamna/Lake   Clark   area,                                                                    
     specifically Pope-Vannoy  Landing in the  Intricate Bay                                                                    
     area between  Pedro Bay and Kokhanok  Bay.  Pope-Vannoy                                                                    
     Landing borders  Alaska Peninsula Corporation  Land and                                                                    
     sits a mile and a half  away from Copper River, a world                                                                    
     class  trophy rainbow  river prized  by fishermen.   My                                                                    
     mother  owns a  Native Allotment  of 160  acres between                                                                    
     Copper River and Pope-Vannoy Landing.                                                                                      
                                                                                                                                
     The  last  census counted  about  7,520  people in  the                                                                    
     Bristol  Bay  region  (according  to a  report  by  the                                                                    
     Alaska Department  of Fish &  Game).  If you  count the                                                                    
     people  who  visit  as fishing/hunting  clients  or  as                                                                    
     summer visitors,  my guess is  that the  population may                                                                    
     rise to approximately 10,000-15,000  over the months of                                                                    
     June,  July, and  August.   I would  guess it  does not                                                                    
     rise cumulatively much above that.                                                                                         
                                                                                                                                
     In  addition to  the  current scant  population I  have                                                                    
     listened to  the radio  news and  determined that  if a                                                                    
     community  rises in  residency  to  over 6,000  people,                                                                    
     that community  may lose  subsistence priority.   Right                                                                    
     now  our communities  are much  below that  figure, but                                                                    
     large-scale development  in the future looms  (Think of                                                                    
     what 60,000  people injected into  the region  would do                                                                    
     to the social structure).                                                                                                  
                                                                                                                                
     By supporting  this bill, people  are asking  that some                                                                    
     assurance  be  made  that changes  will  not  wipe  our                                                                    
     region  of  the  salmon  that  it  has  taken  eons  to                                                                    
     establish.   Social changes of population  increase are                                                                    
     one thing,  but we all  seem to have agreed  to sustain                                                                    
     the salmon.                                                                                                                
                                                                                                                                
     I am  surprised that the  public support for HB  134 is                                                                    
     not  unanimous.   What  will our  region  look like  60                                                                    
     years from now  if we protect the river  systems?  What                                                                    
     if  we don't  allow obstructions  and pollution  to the                                                                    
     lakes  and  drainages?   Will  we  suffer  economically                                                                    
     because we  kept our renewable  resource in  a natural,                                                                    
     wild state?                                                                                                                
                                                                                                                                
     Besides eating  salmon for  subsistence, I  have gained                                                                    
     meaningful  employment because  of  the valuable  sport                                                                    
     fishing area  we have right  next to the  water bodies.                                                                    
     My first  job at age  16 was at  a lodge near  my home.                                                                    
     My  six  older  brothers  and sisters,  all  of  Alaska                                                                    
     Native  descent,  worked there  before  me.   I  earned                                                                    
     enough tips  and wages at  the lodge to buy  lumber and                                                                    
     build a house by the age of 17.   I did not feel like I                                                                    
     was living in poverty, nor do I today.                                                                                     
                                                                                                                                
     The label of poverty is put  on us not by ourselves but                                                                    
     is  a label  designed  to further  ideas  of those  who                                                                    
     overlook  cultural  richness  and  understand  not  the                                                                    
     value put  on an untainted  food source.   Even berries                                                                    
     benefit from  the nutrients  which are  present because                                                                    
     of salmon returns.                                                                                                         
                                                                                                                                
     I really  truly thank  each of you  for your  hard work                                                                    
     and endurance and hope you each have a good day today.                                                                     
                                                                                                                                
10:15:38 AM                                                                                                                   
                                                                                                                                
PATRICK  FLATLEY,  Outreach  Coordinator, Bristol  Bay  Alliance,                                                               
stated  support for  HB  134,  with reservation.    He offered  a                                                               
recount  of a  hunting trip  in  Wisconsin, which  resulted in  a                                                               
personal  lesson of  how to  relate to  elected officials:   When                                                               
important  issues arise  stand-up  and let  your legislator  know                                                               
what you want.   He requested that the  committee become familiar                                                               
with  modern  day  mining  practices,  particularly  the  sulfide                                                               
extraction process, and counseled  them to dissect the permitting                                                               
process.   Further, he recommended  that an answer be  sought, as                                                               
to why  major mining states have  outlawed this type of  open pit                                                               
sulfide mining.                                                                                                                 
                                                                                                                                
10:19:49 AM                                                                                                                   
                                                                                                                                
ROBIN SAMUELSEN, stated  support for HB 134,  with reservation to                                                               
allow for on-shore  oil and gas development.   He emphasized that                                                               
the entire mining  district should be scrutinized,  and the water                                                               
demands closely  evaluated.  Northern  Dynasty is only  the first                                                               
phase,  as there  are mining  claims throughout  the region  that                                                               
will  require   water  use  permits;  each   needing  to  utilize                                                               
voluminous quantities of water -  diverting entire river systems.                                                               
This would  effect fresh and salt  water fish stocks.   As a past                                                               
board  member  of the  Alaska  Board  of  Fish (BOF),  the  North                                                               
Pacific Fishery Management Council (NPFMC),  and as an advisor to                                                               
the  North  American  Anadromous   Fish  Commission  (NAAFC),  he                                                               
offered three guiding principals that he learned:                                                                               
                                                                                                                                
     First  [there  is] no  giving  up  on habitat  and  eco                                                                    
     system protections.  Number 2,  was conservation of the                                                                    
     resource.  And my  third guiding principal was Alaskans                                                                    
     first. ...  Every time I  left [a] board I  always felt                                                                    
     it was in  better shape than when I entered  it.  Those                                                                    
     three  guiding  principles  guided me  and  helped  the                                                                    
     resource.   We are very  nervous out here.   Our former                                                                    
     governor did away with mixing  zones, talked about fast                                                                    
     track permitting processes,  and moved Habitat Division                                                                    
     out of  Fish and Game into  DNR. ... We are  scared out                                                                    
     here.   We  don't  want something  that's  going to  be                                                                    
     developed  out here  that's going  to  be polluting  us                                                                    
     longer than  the pyramids of Egypt  [have] been around.                                                                    
     ... We  need the added  protection.  We've  got foreign                                                                    
     companies,  this is  all foreign,  ... coming  into our                                                                    
     backyard, ... wanting to turn  over our soil.  Yes it's                                                                    
     going to  give us 50  years of jobs.   But we  need the                                                                    
     added  protection because  water is  life, and  without                                                                    
     water we're not going to have anything.                                                                                    
                                                                                                                                
                                                                                                                                
MR. SAMUELSEN continued, stating that  the ground price of salmon                                                               
is making a  rebound, due to the global  marketing strategies and                                                               
increasing  demand.   As  a  son  of  a  miner, he  stressed  the                                                               
importance of not  trading a non-renewable resource  for one that                                                               
is renewable.                                                                                                                   
                                                                                                                                
10:24:45 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON  pointed  out  that   the  bill  has  two  aspects:                                                               
preventing water  use and monitoring  pollution.  He  asked which                                                               
of these aspects the witnesses' testimony supports.                                                                             
                                                                                                                                
MR.  SAMUELSEN responded  that water  needs to  be available  for                                                               
use.  However,  he pointed out, that the water  requirements of a                                                               
large   scale  development   cannot   be   compared  to   smaller                                                               
developments.  Water must be available on a reasonable level.                                                                   
                                                                                                                                
10:26:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE LEDOUX asked whether  he would be more comfortable                                                               
allowing the permitting process to take  its course if:  1) OHM&P                                                               
were located in  ADF&G vs. DNR, and 2) the  stringent mixing zone                                                               
requirements were re-established.                                                                                               
                                                                                                                                
MR.  SAMUELSEN responded,  "Yes."   He  also  suggested that  the                                                               
process include a complete, isolated, peer review.                                                                              
                                                                                                                                
10:27:34 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON asked  the witness to share  his opinion on                                                               
the market  perspective, and the  role which clean  water habitat                                                               
has played in the rebounding of the salmon prices.                                                                              
                                                                                                                                
MR. SAMUELSEN  offered that the  primary focus points  behind the                                                               
rise  in  the  marketability  of  Alaska  salmon  are  the  clean                                                               
pristine rearing/harvest  waters, and  the stories of  the people                                                               
who harvest  the salmon.   Although Japan  is still  an important                                                               
customer in  Alaska, the demand  for Alaska wild salmon  has gone                                                               
global.   The consumer  wants to  hear that  the fish  are coming                                                               
from pristine  waters, the cultural  story of the  Native Alaskan                                                               
who has harvested the fish, and that it is a sustainable,                                                                       
renewable resource.                                                                                                             
                                                                                                                                
10:29:23 AM                                                                                                                   
                                                                                                                                
NORMAN VAN VACTOR, stated support for HB 134, paraphrasing from                                                                 
a prepared statement, which read as follows [original                                                                           
punctuation provided]:                                                                                                          
                                                                                                                                
     My sincere  thanks to the  bipartisan sponsors  of this                                                                    
     bill.   Your  bipartisanship support  on this  issue in                                                                    
     Juneau is only magnified  by the bipartisan support for                                                                    
     this  issue and  the  protection of  our resources  and                                                                    
     habitat by  those of  us who work  and live  in Bristol                                                                    
     Bay.    The manner  in  which  the Subsistence,  Sport,                                                                    
     Recreation,  and   Commercial  business   interests  in                                                                    
     Bristol Bay  have galvanized  and come  together around                                                                    
     the  subject  of  Habitat and  Resource  protection  is                                                                    
     truly incredible and gratifying.                                                                                           
                                                                                                                                
     Each year, millions  of fish pour into the  bay and its                                                                    
     drainages, putting  food on  the tables,  and paychecks                                                                    
     in the pockets, of thousands  of local Alaskans, not to                                                                    
     mention   pumping  an   estimated  $400   million  into                                                                    
     Alaska's economy annually to  say nothing of sustaining                                                                    
     a cultural way of life to  which no dollar value can be                                                                    
     attributed.   This  bill's purpose  is not  to preclude                                                                    
     development  in Bristol  Bay,  but  to instead  provide                                                                    
     standards,  and   a  level  of  protection,   that  our                                                                    
     incredible natural resource deserves and demands.                                                                          
                                                                                                                                
     Fishing prices  are rebounding,  Salmon run  returns in                                                                    
     the Nushagak  River hit an  all-time record  last year.                                                                    
     The  King  salmon  season   was  exceptional,  and  the                                                                    
     Kvichak  River salmon  run is  making  a big  comeback.                                                                    
     Why  gamble  a  thriving  wild  salmon  fishery,  local                                                                    
     economy, and a healthy subsistence lifestyle.                                                                              
                                                                                                                                
     Two  years ago  the statement  was  made to  me and  my                                                                    
     staff  by  a  scientific  consultant  for  one  of  the                                                                    
     companies  interested in  developing mining  interests,                                                                    
     that  "we   probably  couldn't   have  picked   a  more                                                                    
     difficult  place   in  all  of  Alaska   to  site  this                                                                    
     project".   When queried  as to  why, the  response was                                                                    
     "its  all about  the  water and  the  hydrology of  the                                                                    
     area".  I couldn't agree  more, and as important as the                                                                    
     water is, it's about  the incredible variety of natural                                                                    
     resources that call  this area home and  are given life                                                                    
     supporting  birth and  growth  by that  very water  and                                                                    
     natural habitat of the region.                                                                                             
                                                                                                                                
     Not  only are  the  state's greatest  wild salmon  runs                                                                    
     found in the watershed, so  too are the world's biggest                                                                    
     rainbow trout and  brown bears, and one  of the state's                                                                    
     largest caribou  herds.   Bristol Bay  is truly  one of                                                                    
     Alaska's  outstanding natural  treasures and  its long-                                                                    
     term health  is crucial  for the bay's  growing economy                                                                    
     and the prosperity of those who live there.                                                                                
                                                                                                                                
     Desperate to  silence its  critics, opponents  to house                                                                    
     bill  134 talk  about  jobs  and resource  development.                                                                    
     The reality and comparative  history of the risks speak                                                                    
     for themselves.   We are wise to ask  the questions now                                                                    
     and put protections  like HB 134 in  place that protect                                                                    
     what we  have, which is  truly one of [the]  wonders of                                                                    
     the world.                                                                                                                 
                                                                                                                                
     Before he died former  Alaska Governor Jay Hammond told                                                                    
     the Kodiak  Daily Mirror:   "I could think of  no place                                                                    
     in Alaska  where I'd less  rather see the  largest open                                                                    
     pit mine  in the  world than at  the headwaters  of the                                                                    
     Koktuli  and  Talarik  Creek, two  world-class  fishing                                                                    
     streams  and  wild salmon  spawning  areas."   While  I                                                                    
     could not  agree more, HB  134 does not  preclude major                                                                    
     development.   What  it does  do is  raise the  bar and                                                                    
     standards   for  Habitat   protection.     Our  Natural                                                                    
     resource deserves nothing less.                                                                                            
                                                                                                                                
10:32:56 AM                                                                                                                   
                                                                                                                                
TOM PEBLER, stated support for HB 134, paraphrasing from a                                                                      
prepared statement which read as follows [original punctuation                                                                  
provided]:                                                                                                                      
                                                                                                                                
     It is not unreasonable  that Alaska would take measures                                                                    
     to  protect  its  world class  fisheries  and  renowned                                                                    
     water quality.                                                                                                             
                                                                                                                                
     It  is most  reasonable  that those  who would  develop                                                                    
     Alaska's mineral  wealth afford the effort  to maintain                                                                    
     these standards for the sake of mutual prosperity.                                                                         
                                                                                                                                
     We  have heard  the claims  that mining  operations and                                                                    
     world class fisheries can  functionally coexist.  There                                                                    
     should  be no  hesitation, but  only encouragement,  at                                                                    
     the suggestion that we take serious precaution.                                                                            
                                                                                                                                
10:34:04 AM                                                                                                                   
                                                                                                                                
PAMELA BRODIE, stated support for HB 134, paraphrasing from a                                                                   
prepared statement, which read as follows [original punctuation                                                                 
provided]:                                                                                                                      
                                                                                                                                
     I am a partner in  a small family construction company.                                                                    
     I  am not  a commercial  fishermen,  and my  livelihood                                                                    
     does not directly  depend on the health  of the Bristol                                                                    
     Bay  drainage,  although I  do  eat  a lot  of  salmon.                                                                    
     Nonetheless,  I  am  here to  support  House  Bill  134                                                                    
     because   protection  of   Bristol   Bay  drainage   is                                                                    
     essential to the  well being of so  many other Alaskans                                                                    
     and,  I think,  to  the  rest of  the  country and  the                                                                    
     world, as  the source of the  world's largest remaining                                                                    
     wild salmon run.                                                                                                           
                                                                                                                                
     This area now faces  unprecedented levels of industrial                                                                    
     development,  offering short  term gain  and long  term                                                                    
     pain.   Meanwhile,  Alaska's  regulatory protection  of                                                                    
     salmon streams  has been weakened.   Alaskans  need the                                                                    
     Legislature  to  act to  safeguard  the  health of  our                                                                    
     salmon  streams,  especially  those that  feed  Bristol                                                                    
     Bay.                                                                                                                       
                                                                                                                                
     Earlier this  morning someone  testified that  gold and                                                                    
     copper are  to be  found in  almost everything  we use.                                                                    
     This is very,  very far from being accurate.   Over the                                                                    
     course  of history,  vast numbers  of people  have died                                                                    
     because  of   the  pursuit  of   gold,  most   of  them                                                                    
     indigenous  people of  the  American  continents.   Yet                                                                    
     there is actually very little  practical need for gold.                                                                    
     Most of what has already been  dug out of the ground is                                                                    
     kept in  vaults, and it  is more than adequate  to fill                                                                    
     any real  needs for this  resource.  Copper  is another                                                                    
     matter.   Copper is necessary to  modern life (although                                                                    
     certainly not in everything we  use).  We do use copper                                                                    
     when we  build houses, but  I am  happy to say  that we                                                                    
     use much less per house than  we used to, thanks to the                                                                    
     development  of such  synthetic products  as PEX  [high                                                                    
     density  polyethylene],  ABS  [acrylonitrile  butadiene                                                                  
     styrene], and  PVC [polyvinyl chloride].   Substitutes,                                                                    
     technological  advances,  conservation,  and  recycling                                                                    
     can make  up for much  of the  demand.  The  demand for                                                                    
     copper is  not nearly  a sufficient reason  to endanger                                                                    
     Bristol  Bay  salmon  runs  by  allowing  pollution  or                                                                    
     excessive withdrawal  of the pure waters  of its salmon                                                                    
     streams.                                                                                                                   
                                                                                                                                
                                                                                                                                
CHAIR SEATON asked if she is concerned about any type of                                                                        
development in the Bristol Bay drainage.                                                                                        
                                                                                                                                
MS. BRODIE responded:                                                                                                           
                                                                                                                                
     I  do not  oppose all  development in  the Bristol  Bay                                                                    
     drainage.    I  support  strong  protection  of  salmon                                                                    
     habitat,  and habitat  for other  fish and  wildlife in                                                                    
     the  area.   I do  not  ask or  expect that  HB 134  be                                                                    
     passed  without any  changes whatsoever.    In fact,  I                                                                    
     particularly support the approach  taken in Senate Bill                                                                    
     67 by Senator Gary Stevens.                                                                                                
                                                                                                                                
10:38:38 AM                                                                                                                   
                                                                                                                                
MICHAEL MCCARTHY, stated support for HB 134, paraphrasing from a                                                                
prepared statement, which read as follows [original punctuation                                                                 
provided]:                                                                                                                      
                                                                                                                                
     I  am in  support of  the intent  of HB  134, providing                                                                    
     some  modifications  be  made   to  allow  for  limited                                                                    
     development  under more  stringent  standards than  are                                                                    
     presently in place.                                                                                                        
                                                                                                                                
     I reside  in Homer  and have  been an  Alaskan resident                                                                    
     since  1987.   My background  includes being  a retired                                                                    
     Registered  Geologist, (Oregon  #611), with  experience                                                                    
     in  exploration  hard  rock  mining  of  gold,  silver,                                                                    
     copper,  lead, zinc,  and barite  deposits  as well  as                                                                    
     environmental geology.   I have  done geologic  work in                                                                    
     Alaska, Arizona, Idaho, Montana, Nevada, and Oregon.                                                                       
                                                                                                                                
     It is  gratifying that  HB 134  is a  bipartisan effort                                                                    
     because it  will take  the best  efforts of  all minds,                                                                    
     not just  those of Democrats or  Republicans to resolve                                                                    
     this  issue in  a  manner that  best protects  Alaska's                                                                    
     future.  My  focus is a pragmatic one.   The passage of                                                                    
     this good idea made into  law would save much calamity,                                                                    
     litigation, and  money.   HB 134 can  be likened  to an                                                                    
     insurance policy.   We don't  plan on  a fire or  a car                                                                    
     accident but just in case  we buy insurance protection.                                                                    
     It is there in case something happens.                                                                                     
                                                                                                                                
     What could happen in the  Bristol Bay watershed without                                                                    
     the  safe guards  of HB  134?   Perhaps another  Butte,                                                                    
     Montana   Berkeley  Pit   one   of  America's   largest                                                                    
     Superfund  clean-up  sites.   Originally  a  series  of                                                                    
     underground  mines that  began  in the  1870's and  ran                                                                    
     until  1972  when  underground  mining  was  no  longer                                                                    
     economically  feasible, the  working included  42 miles                                                                    
     of   vertical  shafts   and   2,700   miles  of   other                                                                    
     passageways.    The  pit first  operated  in  1955  and                                                                    
     closed in  1982 after  approximately 1 billion  tons of                                                                    
     material was  mined.  The  pit measures 1.5  miles east                                                                    
     to west,  1 mile  north to  south and  is approximately                                                                    
     1,780 feet  deep.   The pit is  presently flooded  to a                                                                    
     depth of  900 feet and  contains 30 billion  gallons of                                                                    
     water with  a pH of 2.5.   There is an  inflow into the                                                                    
     pit  of both  surface  and ground  water that  measures                                                                    
     approximately 5,000  gallons per minute or  7.2 million                                                                    
     gallons per day.                                                                                                           
                                                                                                                                
     This  30   billion  gallons  of  highly   acidic  water                                                                    
     contains  high   concentrations  of   arsenic,  copper,                                                                    
     cadmium,  cobalt, iron,  manganese, zinc,  and sulfate.                                                                    
     In 1995  a large flock  of migrating snow  geese landed                                                                    
     on the  Berkeley Pit  and were  killed, most  likely by                                                                    
     the  high  concentration  of  acid.    There  were  542                                                                    
     carcasses  recovered.   Their  livers  and kidneys  had                                                                    
     bloated  and  many  had an  eroded  esophagus.    These                                                                    
     contaminated  mine   waters  require   constant  costly                                                                    
     mitigation efforts  to protect  the areas'  surface and                                                                    
     ground water supplies.                                                                                                     
                                                                                                                                
     I   have   personal   knowledge   of   two   additional                                                                    
     contaminated mine areas that  merit consideration.  The                                                                    
     first is Cobalt,  Idaho, which I last  visited in 2005.                                                                    
     The  mine  waters flowing  out  of  the abandoned  mine                                                                    
     adits are thick with  brown ooze which coats everything                                                                    
     it contacts including the ground  and rocks adjacent to                                                                    
     the  stream bed  of  Black Bird  Creek.   Approximately                                                                    
     three  miles down  stream from  the nearest  adit is  a                                                                    
     warning  sign  posted next  to  the  creek.   The  sign                                                                    
     reads, "BLACKBIRD CREEK IS  UNSAFE FOR DRINKING WATER".                                                                    
     It should be noted that the  water in the creek here is                                                                    
     no longer the ugly brown  ooze but yet is still unsafe.                                                                    
     I  have  attached  photos of  this  because  they  have                                                                    
     reference value  for the next  area, the South  Fork of                                                                    
     the Coeur d'Alene River by Kellogg, Idaho.                                                                                 
                                                                                                                                
     It  was 1955  when  I  first saw  this  river which  is                                                                    
     approximately  the  same  width as  the  Kasilof  River                                                                    
     where  the Sterling  Highway crosses  it, or  about 150                                                                    
     feet wide.   The South Fork of the  Coeur d'Alene River                                                                    
     was  very   nearly  the  same  color   and  clarity  as                                                                    
     Blackbird Creek only it was  15 times wider.  More than                                                                    
     fifty  years later  this river,  and the  Coeur d'Alene                                                                    
     mining district,  are another Superfund  clean-up site.                                                                    
     The same potential for contaminated  mine water run off                                                                    
     exists  for the  Bristol Bay  Fisheries Reserve  unless                                                                    
     the safeguards of HB 134 are enacted.                                                                                      
                                                                                                                                
     The 1872  mining law, as it  currently exists, contains                                                                    
     no   protections  from   mining  pollution;   it  gives                                                                    
     preferential treatment  to mining  over other  uses; it                                                                    
     grants special  tax breaks to the  mining industry, and                                                                    
     it allows the sale of  public lands for less than $5.00                                                                    
     per  acre.    Perhaps,  HB 134  could  be  modified  to                                                                    
     incorporate  some  features   of  the  Federal  Mineral                                                                    
     Development Act of 2005.   This Act was not passed into                                                                    
     law  but   it  was  designed  to   help  protect  water                                                                    
     resources.     Please  contact   Montana  Environmental                                                                    
     Information Center for  details, phone (406)443-2520 or                                                                    
     mcic@meic.org.                                                                                                             
                                                                                                                                
     I am  faxing a  2006 report  titled:   Predicting Water                                                                    
     Quality Problems At  Hard Rock Mines by  Ann Maest, PhD                                                                    
     and Jim Knipers, P.E.   This report shows that a review                                                                    
     of 104  Environmental Impact  Statements, for  71 major                                                                    
     hard  rock  mines  in the  United  States,  produced  a                                                                    
     startling finding.   The reports  for these  mines were                                                                    
     evaluated  for predictions  related  to surface  water,                                                                    
     ground  water, and  mine drainage  quality, during  and                                                                    
     after  mining.   These predictions  were then  compared                                                                    
     with actual water quality  conditions, during and after                                                                    
     mining.  A shocking  76% of mines polluted groundwater,                                                                    
     or  surface  water,  severely enough  to  exceed  water                                                                    
     quality standards.  Of the  sites that did develop acid                                                                    
     drainage, 89% predicted that they  would not.  In short                                                                    
     there  is a  universal discrepancy  between predictions                                                                    
     and reality.  The Bristol  Bay Fisheries Reserve is too                                                                    
     critical a  resource to risk  on the  imperfect science                                                                    
     of mine water quality predictions.                                                                                         
                                                                                                                                
10:42:56 AM                                                                                                                   
                                                                                                                                
JIMMY HURLEY,  stated support for  HB 134, with reservation.   He                                                               
stated  that a  water use  aspect be  introduced to  discriminate                                                               
between the  various development needs.   The areas  job shortage                                                               
could  be  met, he  opined,  by  enhancing the  salmon  industry,                                                               
monitoring the  selling points, and  continuing to add  a quality                                                               
value to  the salmon.   Also, he reported  that he worked  on the                                                               
water quality  test team,  evaluating the  King Salmon  River for                                                               
micro invertebrate  health, and other salmon  sustaining benthos.                                                               
The  results rated  the river  as  a first  class salmon  rearing                                                               
watershed.  He said:                                                                                                            
                                                                                                                                
     The  salmon on  this  river [are]  number one,  there's                                                                    
     nothing else.   If we  don't have salmon here,  if king                                                                    
     salmon don't  come back  up, what's  the use  of living                                                                    
     here.   We live  on the salmon,  we do  everything with                                                                    
     the salmon. ... When  [Northern] Dynasty came to Ekwok,                                                                    
     I told  them it might  be one day  that we open  up our                                                                    
     freezer [the wild salmon run], and it might be empty.                                                                      
                                                                                                                                
MR.  HURLEY concluded,  that to  have to  tell his  grandchildren                                                               
that one day there may not be any salmon, is difficult.                                                                         
                                                                                                                                
10:47:22 AM                                                                                                                   
                                                                                                                                
RHONDA  WAYNER, stated  support for  HB 134,  paraphrased from  a                                                               
written statement,  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     I am currently  a resident of Unalaska,  but was raised                                                                    
     in Naknek  and lived there for  28 years.  I  am also a                                                                    
     small  business owner,  a member  of the  Naknek Native                                                                    
     Village, a commercial set-net  fisherman of Bristol Bay                                                                    
     that  fishes  traditionally for  subsistence  purposes,                                                                    
     and a proud family member  of the budding Naknek Family                                                                    
     Fisheries.    My  family has  successfully  fished  the                                                                    
     waters of  Bristol Bay for centuries  and they continue                                                                    
     to do so.                                                                                                                  
                                                                                                                                
     HB 134  is a  positive step in  the right  direction to                                                                    
     ensure  that our  livelihoods,  investments, and  local                                                                    
     industry are  sustained.  It  also leaves a  legacy for                                                                    
     much loved former Gov. Jay  Hammond.  The key component                                                                    
     of  this  heated  issue   is  sustainability  which  is                                                                    
     defined  as:    a   collection  of  methods  to  create                                                                    
     economic   growth  which   protects  the   environment,                                                                    
     relieves poverty, and does  not destroy natural capital                                                                    
     in the short  term at the expense of the  long term ...                                                                    
     meeting the  needs of the present  without compromising                                                                    
     the  ability of  future generations  to meet  their own                                                                    
     needs.                                                                                                                     
                                                                                                                                
     We  need  to  protect  our salmon  fisheries  from  the                                                                    
     threat of this  and future mines, and HB  134 does just                                                                    
     that.  It will ensure  Bristol Bay's prominent position                                                                    
     throughout the world as a  source of pure, natural wild                                                                    
     Alaskan  salmon.   Additionally, our  people depend  on                                                                    
     the subsistence resources that  our pure waters afford.                                                                    
     Families,  local government,  and small  businesses all                                                                    
     rely on this resource for  food, taxable income and for                                                                    
     goods and services sold.   Mining of this magnitude and                                                                    
     type have  been scientifically  proven to  greatly harm                                                                    
     not  only the  fish  stock but  surrounding land  based                                                                    
     habitat.    HB  134 ensures  that  whether  development                                                                    
     progresses there  is at least  a standard to  hold high                                                                    
     not just  for the  well being of  the fish  and habitat                                                                    
     but for the people who thrive off of them.                                                                                 
                                                                                                                                
CHAIR SEATON closed public testimony, and invited further                                                                       
written comments be sent to the sponsors office or to the                                                                       
attention of the committee.                                                                                                     
                                                                                                                                
10:52:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON asked when HB 134 would be heard again in                                                                 
committee, and the possible continuation of public testimony.                                                                   
                                                                                                                                
CHAIR SEATON responded that it would be taken up on Monday,                                                                     
[March 5, 2007] under previously heard bills.                                                                                   

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