03/14/1994 03:36 PM Senate RES

 CHAIRMAN MILLER called the Resources Committee meeting to order at            
 3:36 p.m. and announced  SB 280  (ESTABLISH AFOGNAK ISLAND STATE              
 PARK) to be up for consideration.                                             
                                                                               
 CRAIG TILLERY, Department of Law, said SB 280 establishes Afognak             
 Island State Park from lands that were acquired by the Exxon Valdez           
 Trustee Council from the Seal Bay Timber Company.  This area was              
 ranked as second in importance in habitat value.  The United States           
 expressed a strong desire to acquire these lands.  The state                  
 trustees said no and indicted that if they were to be acquired it             
 was to be under state ownership.  The United States agreed, but               
 added that the lands would have to go within a state park within              
 one year, by November 23, 1994.                                               
                                                                               
 MR. TILLERY said SB 280 is supported by the Kodiak Island Borough,            
 the City of Kodiak, the Kodiak Chamber of Commerce, fishing                   
 organizations, tour operators, visitor associations, and many                 
 Kodiak area citizens.  It is supported by Koncor Forest Products,             
 the timber company that operates in the area and the Alaska Forest            
 Association.                                                                  
                                                                               
 Mayor Selby has written a letter to the Governor saying no jobs               
 were lost as a result of this acquisition, MR. TILLERY said.                  
                                                                               
 Number 85                                                                     
                                                                               
 There is a new provision in this bill on page 1, line 5 adding to             
 existing rights, "including those rights created by the Afognak               
 Island Road Use Agreement executed on July 24, 1991 and as amended            
 from time to time."                                                           
                                                                               
 There is a new section on page 2, line 7 relating to existing                 
 rights, as well.                                                              
                                                                               
 SENATOR LEMAN asked if subsurface estate becomes part of the park             
 with its purchase.  MR. TILLERY said that is correct.                         
                                                                               
 Number 175                                                                    
                                                                               
 SENATOR LEMAN moved to adopt the CS to SB 280 (RES) for discussion            
 purposes.  There were no objections and it was so ordered.                    
                                                                               
 SENATOR FRANK asked what kind of restrictions there were.  MR.                
 TILLERY said there is a restriction against commercial timber                 
 harvest and a restriction on the disposal, also.  If there is an              
 attempt to convey the property to an entity other than the state,             
 it would revert to the Nature Conservancy which would be required             
 to deed it over to the federal government, he explained.                      
                                                                               
 SENATOR LEMAN asked if the state could, at some time in the future,           
 change the classification of the land and then have to repay the              
 trustee council.  MR. TILLERY guessed that it could be changed, but           
 it would have to be done before the trustee council was out of                
 business or done through a court action.                                      
                                                                               
 SENATOR MILLER asked if any new commercial hunting and fishing                
 lodges could be added.  MR. TILLERY said there is no lodge in the             
 park, but the lodges use the park.  They do not want to prohibit              
 that, because it is a restoration purpose.                                    
                                                                               
 Number 245                                                                    
                                                                               
 SENATOR FRANK asked if there were other examples of this type of              
 ownership.  MR. TILLERY explained that this was not dissimilar to             
 other parks, but that the Exxon Valdez settlement was                         
 unprecedented.                                                                
                                                                               
 Number 266                                                                    
                                                                               
 SENATOR FRANK asked what was the purchase price.  MR. TILLERY                 
 answered $38.7 million, or about $900 per acre.                               
                                                                               
 CHUCK MEACHAM, Deputy Commissioner, Department of Fish and Game,              
 said they strongly support this legislation.                                  
                                                                               
 NEIL JOHANNSEN, Director, Division of Parks, said the DNR supports            
 the legislation.                                                              
                                                                               
 Number 340                                                                    
                                                                               
 SENATOR ZHAROFF moved to pass CSSB 280 (RES) from Committee with              
 individual recommendations.  There were no objections and it was so           
 ordered.