Legislature(2015 - 2016)SENATE FINANCE 532
04/10/2015 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB71 | |
| HB140 | |
| SB70 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 140 | TELECONFERENCED | |
| + | SB 70 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 71 | TELECONFERENCED | |
SENATE BILL NO. 70
"An Act relating to exceptions from designation as a
special purpose site under art. VIII, sec. 7 of the
Constitution of the State of Alaska for portions of
Denali State Park, Captain Cook State Recreation Area,
Nancy Lake State Recreation Area, and Willow Creek
State Recreation Area to allow leasing a right-of-way
for a natural gas pipeline."
9:29:09 AM
Co-Chair MacKinnon addressed the legislation.
BEN ELLIS, DIRECTOR, DIVISION OF PARKS AND RECREATION,
DEPARTMENT OF NATURAL RESOURCES, explained the legislation.
He looked at the SB 70 Briefing Paper (copy on file):
SB 70 is necessary to open a corridor through four
state legislatively designated areas (Denali State
Park and Willow Creek, Nancy Lake, and Captain Cook
State Recreation Areas) to the right of way leasing
act for the purpose of construction a natural gas
pipeline from the North Slope of Alaska.
The bill would accomplish the following primary
objectives:
1) Authorize the issuance of a right of way lease
under AS38.35, the Pipeline Right of Way Leasing
Act for a gas pipeline in an identified corridor
through Denali State Park and Willow Creek, Nancy
Lake, and Captain Cook State Recreation Areas.
2) Require the corridor to be managed as parkland
and recreation areas until leased under 38.35 and
returned to original park and recreation area
management upon termination of the lease.
3) Provides supplemental requirements to reserve
traditional means of public access and minimize
the impact of a pipeline on the specific values
of park and recreation areas.
4) Clarifies the DNR Commissioner's power to
delegate condemnation authority to the lessee
does not apply within the bounds of the park and
recreation areas.
5) Requires the gas pipeline lease be issued
before January 1, 2020
Why the bill is needed:
The parks at issue are special use sites,
reserved from the public domain by the
legislature pursuant to Article VIII, Sec. 7 of
the Alaska Constitution. As a result, they are
not, without legislative action, open for leasing
under AS 38.35.
Why this bill does not include State game refuges and
DNR Susitna Basin Rec Rivers:
Although some restrictions on multiple use are
imposed on the state game refuges and rivers,
these areas are not closed to leasing under AS
38.35 where a lease would be compatible with the
purposes of the reserves.
Does the corridor specified in the bill suffice for
both the ASAP and AKLNG Projects:
AGDC and AKLNG have worked cooperatively to
select a common alignment for both projects. AGDC
has completed its route revision to the common
alignment and are now calling it Rev. 6.1. Field
efforts for both projects have changed to reflect
the common alignment as evidenced in the geo-
technical site locations currently being
conducted within Denali State Park.
9:35:06 AM
Senator Dunleavy wondered if the proposed parcels were
within the parks, or were any outside of the parks. Mr.
Ellis replied that each proposed parcel within the bill
were in one of the four parks mentioned. He stated that a
portion would go outside of the park, but was not included
in the legislation.
Vice-Chair Micciche asked for assurance that, other than
during the construction, the public use was previously
permitted and the park corridors would not be interrupted
in the future. Mr. Ellis replied that the land would remain
park land, and available for public use under park statutes
during the early phase. The pipeline construction would
still allow some recreational usage.
Vice-Chair Micciche remarked that the right-of-way may
improve recreational access.
9:38:02 AM
AT EASE
9:40:21 AM
RECONVENED
9:40:25 AM
Senator Dunleavy wondered if it was advisable to require
that the right-of-way leases had definable and enforceable
obligation for restoration and revegetation. Mr. Ellis
replied that the intention was to fully return to the state
prior to any land disturbance.
JOHN HUTCHINS, ATTORNEY, DEPARTMENT OF LAW, explained that
any pipeline right-of-way leases under the statute was
required to include a set of covenants that included an
assurance that the lessee would restore the land to a
condition acceptable by the commissioner.
Vice-Chair Micciche wondered if the legislation would
conclude the pipeline right-of-way needs from Prudhoe Bay
to the terminus in Nikiski. Mr. Ellis deferred to Mr.
Perrin.
DON PERRIN, DIRECTOR, PIPELINE COORDINATION OFFICE,
DEPARTMENT OF NATURAL RESOURCES (via teleconference),
explained that the state agencies had been working in terms
of field work permitting, and coordination with federal
agencies. He stated that the legislation would conclude the
right-of-way needs for the project.
9:44:15 AM
Senator Hoffman queried the percentage of the right-of-way
that the legislation accomplished. He also wondered if
there were further problem areas related to acquisition.
Mr. Perrin replied that the corridor varied in width from
on-half mile to two miles. He explained that the width was
determined to ensure adequate engineering and environmental
reviews.
Senator Hoffman remarked that the line from Prudhoe Bay to
the destination to tidewater. He wondered how much
additional right-of-way was needed for the project. He
queried the anticipated problem areas related to
acquisition. Mr. Perrin replied that the bill would allow
for completion of land as need for the right-of-way on
state land. He noted that the act only applied to state
land, and the legislation would allow for completion.
Senator Hoffman queried the percentage of additional leases
that was required for all right-of-way.
FRANK RICHARDS, MANAGER OF PIPELINE ENGINEERING AND
GOVERNMENT AFFAIRS ALASKA GASLINE DEVELOPMENT CORPORATION
(via teleconference), asked for a restatement of the
question.
Senator Hoffman wondered how much right-of-way was
currently acquired and how much was yet to be acquired. He
also queried the possible problem areas for future
acquisition. Mr. Richards replied that the legislature had
specifically required Department of Natural Resources (DNR)
to provide Alaska Gasline Development Corporation (AGDC)
the Title 38 lands through a state right-of-way in 2011,
which represented approximately 55 percent of the Alaska
Stand Alone Pipeline (ASAP) right-of-way. The addition of
the lands from the legislation gave access through Denali
State Park, Willow Creek, and Nancy Lakes. That mileage was
approximately another 5 percent of state lands. The
completion of the supplemental environmental impact
statement (EIS) would show an outcome of record of decision
by the Department of the Interior Bureau of Land Management
which would provide the federal right-of-way, at 30 percent
right-of-way. The project would be approximately 90
percent, with the remaining 10 percent in municipal,
borough, private land ownership, and native corporation
allotments still yet to be acquired.
9:49:21 AM
Senator Hoffman wondered if there were anticipated problem
areas that would require eminent domain. Mr. Richards
replied that there were very little, if any use of eminent
domain. He explained that the legislature allowed AGDC the
use of eminent domain through HB 4 and in existing
statutes.
Senator Hoffman restated his question as related to the
AKLNG project. Mr. Richards responded that the AKLNG and
ASAP currently shared a common route from Prudhoe Bay to
the Susitna River Bridge. At that point, ASAP traversed to
the east of the river, and the AKLNG headed west toward the
Cook Inlet Crossing. He agreed to provide information for
the actual land ownership requirements for AKLNG.
Senator Hoffman queried the timeframe to acquire the
required additional lands for project construction. Mr.
Richards replied that the private and municipal owned lands
would not be determined until the final investment decision
to advance the project.
Co-Chair MacKinnon wondered if there were any additional
comments on SB 70. Mr. Richards replied that SB 70 would
allow either pipeline project to proceed through the park
lands. The original intent of the legislature provided the
right-of-way across state lands, so the bill allowed for
the land to advance the pipeline project.
Senator Bishop queried the difference on the right-of-way
for the two projects. He understood that the AKLNG was 180
feet, and the ASAP was 120 feet. Mr. Richards responded
that he did not have the specifics for AKLNG. He explained
that moving a large diameter pipe required areas to work
and dispose. He stated that there was likely different
equipment for the different sized pipe.
Co-Chair MacKinnon wondered if the corridor would require
the removal of trees for an extended period of time. Mr.
Ellis replied that the land would return to a natural
state. He stated that there was normally a five to ten year
period of time that would allow for full revegetation.
Co-Chair MacKinnon CLOSED public testimony.
9:54:50 AM
AT EASE
9:56:21 AM
RECONVENED
Vice-Chair Micciche wondered what the right-of-way would
look like at post-construction. Mr. Ellis responded that
that corridor would be clear for construction. The 50 foot
right-of-way for the pipeline would be clear. He stated
that there may be a recreational trail near the pipeline
that would also provide access to the line.
SB 70 was HEARD and HELD in committee for further
consideration.
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