Legislature(1993 - 1994)
02/24/1994 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 309 - DISPOSAL OF DALTON HWY RIGHT-OF-WAY LAND Number 076 REPRESENTATIVE GENE THERRIAULT, Prime Sponsor of HB 309, read the following sponsor statement into the record: This legislation seeks to address a problem recently brought to my attention concerning land disposals along the Dalton Highway. State statutes currently prohibit disposing of state land within five miles of the right of way of the Dalton Highway for anything other than oil and gas leases or for oil and gas exploration, development, productions or transportation north of 68 degrees north latitude. Also prohibited are materials sales for anything other than oil and gas related activities or for reconstruction or maintenance of the highway north of 68 degrees north latitude. The prohibition prevents a private telephone company, which is seeking land in order to expand services to Coldfoot, from obtaining the necessary acreage. This legislation would solve the problem and authorize the Department of Natural Resources to dispose of land to a licensed public utility or a licensed common carrier. After proposing legislation to address the communications issue, I was made aware of larger problems concerning leases within the entire Dalton Highway corridor, which affect both the DNR and the Department of Transportation and Public Facilities. Since August, 1992, more than 650,000 acres of land at selected sites along the corridor have been transferred to the state from BLM. The land selections encompass several existing BLM leases. Because DNR does not have the authority to renew these leases taken over from the federal government, the state's ability to manage the land in the future is at jeopardy. DNR is also prohibited from removing or disposing of gravel, which is required for improving the airport at Deadhorse. Also affected is the Department of Transportation and Public Facilities, which recommends that the bill be amended to allow disposal of state land and materials for construction, improvement and maintenance of public facilities. Such an amendment would facilitate work on corridor airports, service roads, access roads and waysides, as well as the entire length of the Dalton Highway. In response, I have respectfully submitted a sponsor substitute that would allow for nonresidential development within "development nodes" such as Coldfoot and Happy Valley. It would also allow for land and materials disposal for reconstruction or maintenance of state highways and construction or maintenance of airports. I urge your favorable vote on this very important legislation. Thank you. REP. THERRIAULT stated that he has worked with the department to define what is a development node and how much land is being discussed. The result was to put into statute specific property descriptions to allay any concerns that this bill was designed to open up the whole Dalton highway. REP. THERRIAULT added that currently, for example, in Coldfoot the Department of Natural Resources can allow the Department of Transportation to take gravel by simply maintaining the section of the road around Coldfoot. REP. PORTER moved adoption of the CS for HB 309. No objections were heard; it was so ordered. REP. THERRIAULT noted that his intent with HB 309 is to address the communications question. He stated that there is a private communication provider that would like to expand services. Number 200 CHAIRMAN HUDSON asked the sponsor to run through the differences between the original bill and the CS. REP. THERRIAULT said that initially HB 309 only dealt with the communications issue and the CS expands to the description of the development nodes, which clearly outlines what property development could take place in. The CS also clarifies the access to materials. Number 212 JERRY GALLAGER, Director, Division of Mines, Department of Natural Resources, testified in support of HB 309. Mr. Gallager stated that the department does not believe the language of HB 309 is not a broad opening of activities on the Haul road; it simply recognizes generally what is currently happening. It will allow the department to provide for the continuation of these activities. MR. GALLAGER said that the BLM has given very limited land along the haul road. They have given certain permits and leases that the state is prohibited from renewing in most cases under AS 19. This bill would allow for renewals or grant new authorizations for maintenance of airports and some other activities. Number 242 MIKE WALLERI, General Council, Tanana Chiefs Conference, testified against CSHB 309. The conference did not oppose the original bill and did not have any problems with the majority of the sponsor's intentions. The conference believes there are needs for telecommunications, a need for the department to manage its existing leases its inherited, a need for gravel on the road, and a strong need for safety. MR. WALLERI stated that the Chiefs' concern is that the CS is overly broad and that it would open up the haul road to a unregulated amount of development. MR. WALLERI stated that the corridor is a critical part of the state of Alaska. The current laws are a product of past legislatures balancing environmental issues, subsistence issues and industrial development of the North Slope. MR. WALLERI explained that the development node concept comes out of a BLM plan that was adopted by the prior federal administration. This invoked litigation against the BLM. The BLM adopted the Resource Management Plan, RMP, which identified the development of development nodes and encouraged them. MR. WALLERI noted that due to the litigation referenced above and its subsequent settlement, the BLM has undertaken a comprehensive review of the RMP. Mr. Walleri believes if the state relies on the prior plan, which may not be valid, the state may find itself in another controversy creating inholdings in federal enclaves. MR. WALLERI stated the major problem with the committee substitute is nonresidential disposals. He added that the history of nonresidential settlement in Alaska has been residential in effect. MR. WALLERI suggested deletion of that section of the committee substitute. He added that everything the department said it wanted to do in that area could be done without this section. Number 353 REP. THERRIAULT asked Mr. Walleri if that would allow the department to renew or renegotiate BLM leases. Number 363 MR. WALLERI said it may be necessary to amend the bill to cover that issue, but he added that the bill is much broader than that. It does not address existing nonresidential uses. He added that the Chiefs do not have any problem with what is going on in the corridor now, but they don't want to see a massive land disposal that would cause additional problems. Number 373 KEITH QUINTAVELL, North Slope Borough, testified via teleconference on HB 309. Mr. Quintavell stated that he understood the committee to be looking at the committee substitute for SB 210. Mr. Quintavell stated that the section of the bill that provided for disposal of land under 38.05.810(e) was supported by the borough. That section clearly states that when public utilities or common carriers demonstrate need for land can obtain land in this manner. This serves the public interest. MR. QUINTAVELL further stated that the section providing for the maintenance and construction of airports and highways is also in the public interest. MR. QUINTAVELL, North Slope Borough, testified against the inclusion of developmental nodes. MR. QUINTAVELL stated that the North Slope Borough has municipal land selections under Title 29 at Deadhorse, Franklin Bluffs and Happy Valley. The North Slope Borough interprets the prohibitions on 19.40.200 to exclude Title 38 types of disposals. Mr. Quintavell said the borough feels that if there is a desire to allow development at these areas, the simplest way to accomplish it would be to convey the land selections noted above to the North Slope Borough. MR. QUINTAVELL noted that the Department of Natural Resources in Fairbanks has told the borough that they cannot convey the land along the haul road that have been selected under Title 29 because of the prohibition in 19.40.200. The department has asked for the borough's support in lifting the prohibitions on all Title 38 types of disposals. In January, the borough asked the commissioner of Natural Resources for clarification on 19.40.200. The borough feels that this provision clearly states that the state is not to dispose of land under Title 38 not Title 29. Therefore, they do not understand why the state does not convey to the borough their land selections. MR. QUINTAVELL said that the State of Alaska has not produced a land use plan required under 38.04.065. The borough supported a plan before and land disposals. Number 433 REP. THERRIAULT asked Mr. Quintavell, if those selections went through, would the North Slope want to sell gravel products from your land? Number 440 MR. QUINTAVELL responded that the North Slope would be interested in selling gravel, as well as providing other facilities; i.e., a truck stop, etc. MR. QUINTAVELL added that the North Slope Borough does not believe that enacting new legislation was necessary for this type of development to take place. This development could take place under existing laws by conveying lands to the North Slope Borough under Title 29 and allowing the development to proceed in that fashion. Number 455 EARL FINKLER, City of Barrow, testified via teleconference against HB 309. Mr. Finkler stated the city supports the borough in opposition to the opening of the road, and stated concerns about the comprehensive planning regarding the road by all parties involved. MR. FINKLER stated that he asked, at the last hearing, if there would be any impacts of this legislation on the original purpose of the restrictions. He stated that his understanding was that those restrictions were put in to preserve maximum opportunity for the efficient transportation and support of oil and gas development. MR. FINKLER added that the City of Barrow has long been concerned about some other state disposals, in particular, the Barrow airport and adjacent construction sites for the airports. The city would like to see the state get back to these issues before they deal with too many other land disposal issues. Number 475 CHAIRMAN HUDSON stated that the whole issue of land disposal currently tied up in the mental health trust litigation is gaining attention by the administration and he is hopeful some of these issues will be settled. CHAIRMAN HUDSON asked if Mr. Quintavell would put together a short position paper with suggestions on how the legislation can accommodate those points not in dispute and satisfy the concerns he brought up. Number 495 CHAIRMAN HUDSON asked the sponsor if the committee should look for an amendment that would accommodate the concerns presented. Number 500 REP. THERRIAULT responded that he did not have a problem with changing the language, as long as the end result is the same. He noted that Mr. Walleri suggested that a section could be deleted and still achieve all the goals, and he would like further information on this. Number 509 MR. GALLAGER disagreed that Mr. Walleri's assessment. Mr. Gallager believed that the language on page, 1, line 13, was needed in order to dispose of gravel; and to issue longer term leases and whatever is necessary for development along the haul road. Number 515 CHAIRMAN HUDSON asked that Rep. Therriault and Mr. Gallager obtain the necessary information from the City of Barrow and the North Slope Borough and put together a revised draft that satisfies the interests and concerns. Number 532 REP. THERRIAULT noted that SB 210 is a similar bill and he thought it had passed the Senate and was being transmitted to the House. He stated it was his intent to use SB 210 as a vehicle and work with the sponsor, Sen. Sharp to seek passage.
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