Legislature(2007 - 2008)SENATE FINANCE 532

05/04/2007 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 104 NATURAL GAS PIPELINE PROJECT TELECONFERENCED
<Bill Hearing Canceled>
+ SB 111 KODIAK NARROW CAPE PUBLIC USE AREA TELECONFERENCED
Moved CSSB 111(RES) Out of Committee
+ HB 215 TASK FORCE RE: COUNCIL ON DOM. VIOL. TELECONFERENCED
Moved SCS CSHB 215(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     CS FOR SENATE BILL NO. 111(RES)                                                                                            
     "An Act creating the Kodiak Narrow Cape Public Use Area."                                                                  
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Stedman,  who previously heard  this bill in  the Senate                                                               
Resources  Committee,  announced   that,  absent  any  unexpected                                                               
issues,  the  intent today  would  be  to  report the  bill  from                                                               
Committee.                                                                                                                      
                                                                                                                                
10:00:45 AM                                                                                                                   
                                                                                                                                
DOUG LETCH,  Staff to Senator  Gary Stevens, the  bill's sponsor,                                                               
displayed  a map  [copy on  file] depicting  the location  of the                                                               
46,000 acre  Narrow Cape Public  Use Area this  legislation would                                                               
establish on Kodiak  Island. This is a  popular recreational area                                                               
in   the   vicinity   of   the   Alaska   Aerospace   Development                                                               
Corporation's Kodiak Island Rocket  Launch Facility and a buffalo                                                               
range  that  offers  beachcombing, surfing,  and  numerous  other                                                               
activities.                                                                                                                     
                                                                                                                                
Mr. Letch stated  that the reason for designating this  site as a                                                               
public  use area  is to  preserve it  in its  current form.  This                                                               
designation  would  also ensure  that  the  Legislature would  be                                                               
involved  in any  future  decision regarding  State  land in  the                                                               
area.  He  reminded the  Committee  that  a  few years  prior,  a                                                               
University  of Alaska  lands bill  considered State  land in  the                                                               
Narrow  Cape   area.  That   legislation  raised   Kodiak  Island                                                               
residents'  concern about  Legislative decisions  about the  area                                                               
and was, in essence, "the impetus" for this bill.                                                                               
                                                                                                                                
Mr. Letch clarified  that the creation of the  Narrow Cape Public                                                               
Use Area  would not curtail activities  currently being conducted                                                               
in the  vicinity; specifically those  associated with  the Kodiak                                                               
Launch Site.                                                                                                                    
                                                                                                                                
Mr. Letch  informed that the bill's  sponsor "worked extensively"                                                               
with the  Department of Natural  Resources and the  Kodiak Island                                                               
Borough  to develop  the bill.  It is  supported by  the City  of                                                               
Kodiak,  the   Kodiak  Island   Borough,  the   Alaska  Aerospace                                                               
Development   Corporation,   and   the  Department   of   Natural                                                               
Resources.                                                                                                                      
                                                                                                                                
Mr. Letch  stated that the bill  is accompanied by a  zero fiscal                                                               
note from Department of Natural Resources.                                                                                      
                                                                                                                                
Mr. Letch  also noted  that Senator Dyson  was familiar  with the                                                               
area since he had attended the  first rocket launch at the nearby                                                               
rocket launch site.                                                                                                             
                                                                                                                                
Mr. Letch considered this a good  bill. The members of the Senate                                                               
Resources Committee, which included  Senator Huggins and Co-Chair                                                               
Stedman, recognized the intent of the bill.                                                                                     
                                                                                                                                
10:04:29 AM                                                                                                                   
                                                                                                                                
SENATOR GARY STEVENS,  the bill's sponsor, spoke in  favor of the                                                               
bill. It is supported by the residents of Kodiak Island.                                                                        
                                                                                                                                
Senator Stevens qualified  that even though Kodiak  Island is the                                                               
largest island  in the United  States, it had limited  public use                                                               
areas. Furthermore, two-thirds of  the island has been designated                                                               
a bear refuge.                                                                                                                  
                                                                                                                                
Senator  Stevens noted  that the  site being  considered in  this                                                               
legislation is a popular  recreational area located approximately                                                               
50  miles from  the City  of Kodiak.  In addition  to the  Kodiak                                                               
Island Rocket Launch site, other  nearby special use designations                                                               
include a buffalo ranch and grazing leases.                                                                                     
                                                                                                                                
10:06:04 AM                                                                                                                   
                                                                                                                                
Senator  Thomas  asked  the  intent  of  language  in  Section  1                                                               
subsection  Sec.  41.23.260(f)  page  3 lines  15  -21  regarding                                                               
"incompatible"  use  with  the area.  While  understanding  there                                                               
being  no intent  to  curtail current  users'  activities in  the                                                               
area,  some activities  must have  been deemed  incompatible with                                                               
the area in order for this language to be included.                                                                             
                                                                                                                                
10:06:46 AM                                                                                                                   
                                                                                                                                
Mr. Letch deferred to Dick  Mylius with the Department of Natural                                                               
Resources.                                                                                                                      
                                                                                                                                
10:07:03 AM                                                                                                                   
                                                                                                                                
DICK  MYLIUS,  Director,  Division  of Mining,  Land  and  Water,                                                               
Department  of Natural  Resources,  testified via  teleconference                                                               
from an offnet  location and informed the Committee  that at this                                                               
time, no  incompatibility activities  have been  identified. This                                                               
language  was simply  included  in the  bill  in anticipation  of                                                               
future issues or conflicts that might arise.                                                                                    
                                                                                                                                
Mr.  Mylius also  noted  that the  bill  contained language  that                                                               
provided the Department  the option to develop  a management plan                                                               
for the area if deemed necessary.  An earlier version of the bill                                                               
specified  that as  a mandatory  rather than  optional provision.                                                               
The Department does not anticipate  any immediate need to develop                                                               
a  land management  plan for  the  area since  they had  recently                                                               
completed a Kodiak Area Plan  which provided direction on how the                                                               
island's  State  land  would  be  managed.  This  legislation  is                                                               
consistent with the findings in that plan.                                                                                      
                                                                                                                                
10:08:41 AM                                                                                                                   
                                                                                                                                
Senator Olson asked who would  be responsible for maintaining the                                                               
area were this legislation approved.                                                                                            
                                                                                                                                
Senator Stevens again deferred to Mr. Mylius.                                                                                   
                                                                                                                                
10:08:52 AM                                                                                                                   
                                                                                                                                
Mr. Mylius responded  that this legislation would  not affect how                                                               
the land would be managed; it  would continue to be maintained by                                                               
the Division  of Mining,  Land and Water.  The bill  would simply                                                               
assure that the land would  remain "in public ownership" and that                                                               
it could "not be disposed of" without Legislative approval.                                                                     
                                                                                                                                
10:09:27 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman noted the bill  was accompanied by a zero fiscal                                                               
note from Department of Natural Resources.                                                                                      
                                                                                                                                
10:09:36 AM                                                                                                                   
                                                                                                                                
Senator Olson  asked whether this  land designation  would affect                                                               
any private property owners in the area.                                                                                        
                                                                                                                                
Senator  Stevens  understood  there   were  no  private  property                                                               
holdings in the area.                                                                                                           
                                                                                                                                
Mr. Letch  thought that the land  in the area belonged  to either                                                               
the State  or the  federal government.  The nearby  buffalo ranch                                                               
operated on  land leased  from those  entities. Mr.  Mylius could                                                               
confirm the status of the land holdings.                                                                                        
                                                                                                                                
10:10:18 AM                                                                                                                   
                                                                                                                                
Mr. Mylius  corrected the information.  Mr. Burton,  the operator                                                               
of the buffalo ranch, owned a  160 acre parcel of land within the                                                               
boundaries of  the proposed  public use area.  His land  had been                                                               
purchased from  the federal government  and was located  near the                                                               
airstrip north  of the  rocket launch  facility, depicted  on the                                                               
map. This land  would be unaffected by this  legislation since it                                                               
was considered "an in-holding" and  as such would not be included                                                               
in "the  definition of what's  included in the public  use area".                                                               
Only State-owned land is subject to this legislation.                                                                           
                                                                                                                                
10:10:54 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  inquired how language in  Section 1, subsection                                                               
Sec.  41.23.240(4)  page  1  lines  14 and  15,  which  gave  the                                                               
responsibility   of   managing   surface  and   subsurface   land                                                               
activities  to  the commissioner  of  the  Department of  Natural                                                               
Resources,  would affect  the public  use  area; specifically  in                                                               
regards to exploration and mining activities.                                                                                   
                                                                                                                                
Mr.  Mylius  expressed  that  mining   claims  could  be  staked,                                                               
explored, and developed in the area  and oil and gas leases could                                                               
be granted.  However, the  Department did  not believe  this area                                                               
held  "much potential  for minerals"  and no  oil and  gas fields                                                               
have been identified in the area.                                                                                               
                                                                                                                                
10:11:54 AM                                                                                                                   
                                                                                                                                
JEROME  SELBY,  Mayor,  Kodiak   Island  Borough,  testified  via                                                               
teleconference  from  Kodiak and  identified  this  as being  "an                                                               
important bill  for Kodiak,  primarily because  most of  the land                                                               
adjacent to  the Kodiak road  system is privately owned.  This is                                                               
the only significant  portion of land that's  publicly owned that                                                               
is available  for recreation. The  area is easily  accessible and                                                               
is heavily used for a  variety of recreation activities including                                                               
berry picking, fishing, surfing, and hiking.                                                                                    
                                                                                                                                
Mr.  Selby urged  the Committee  to recognize  the value  of this                                                               
land as a  recreational area and support the  bill. The community                                                               
desired to protect this land and  not be surprised to learn about                                                               
potential development plans  for it, as was the case  a few years                                                               
prior,  when  the community  read  about  a proposed  State  land                                                               
transfer  to   the  University  in   the  newspaper.   This  land                                                               
designation would  ensure that any  future discussion  about land                                                               
use changes  in this  area would undergo  a public  debate within                                                               
the Legislature.                                                                                                                
                                                                                                                                
Co-Chair Hoffman  moved to  report the  bill from  Committee with                                                               
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
Without  objection, CS  SB 111(RES)  was REPORTED  from Committee                                                               
with previous zero fiscal note  #1 from the Department of Natural                                                               
Resources.                                                                                                                      
                                                                                                                                

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