Legislature(1999 - 2000)

03/31/1999 03:12 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                  SCR  7-TULSEQUAH CHIEF MINE                                                                                   
                                                                                                                                
MR. WILLIAMS, testifying from Atlin, stated he believes the                                                                     
Tulsequah Chief Mine project will benefit the communities from                                                                  
Whitehorse to Skagway.  He stated he represents about 40 people who                                                             
support the project.                                                                                                            
                                                                                                                                
CHAIRMAN HALFORD noted the committee received a petition signed by                                                              
a number of people who support the project, and the petition has                                                                
been entered into the record.                                                                                                   
                                                                                                                                
MR. BOB CARMICHAEL, a local contractor and former road                                                                          
superintendent, testified from Atlin in support of the Tulsequah                                                                
Chief Mine project as it will provide year-round employment for                                                                 
local people and allow them to stay in the community.                                                                           
                                                                                                                                
SENATOR PEARCE informed committee members she sent a memo to both                                                               
Commissioners Rue and Brown asking them to describe their                                                                       
continuing concerns about the project related to the response                                                                   
received from the British Columbia Ministry of Environment, Lands                                                               
and Parks(BCMELP) in November about the Alaska Department of                                                                    
Environmental Conservation's (ADEC) and the Alaska Department of                                                                
Fish and Game's (ADFG) environmental concerns.  She noted neither                                                               
department responded to the BCMELP response.  She asked both                                                                    
Commissioners to bring the concerns that they do not believe can be                                                             
resolved directly with the BCMELP to the Alaska Legislature.  She                                                               
explained her ongoing concern is that Alaska should not try to                                                                  
impose its permitting process on to another government and she                                                                  
believes the Administration has taken a position that will                                                                      
ultimately disable the project from moving forward.                                                                             
                                                                                                                                
MR. MICHAEL CONWAY, Director of Statewide Public Service Division                                                               
of DEC, stated he is involved in the coordination of permitting and                                                             
overview of the Tulsequah Chief Mine.  He stated one outcome of the                                                             
government to government interaction that has benefitted both sides                                                             
has been the ability to continue a dialog about the standards.  The                                                             
Canadians have reviewed Alaska's water quality standards and find                                                               
their own to be comparable.  ADEC and ADFG have told the BCMELP                                                                 
they are not interested in permitting the project but they want                                                                 
assurances that the resources at risk are protected. BCMELP has                                                                 
worked directly with Alaska permitting staff to exchange                                                                        
information.                                                                                                                    
                                                                                                                                
SENATOR PEARCE asked Mr. Conway to address ADEC's concerns in the                                                               
order contained in the response from BCMELP.  She pointed out it is                                                             
her understanding that the response from BCMELP addressed each                                                                  
concern raised by the federal government and ADEC and ADFG.                                                                     
                                                                                                                                
MR. CONWAY said ADEC and ADFG are in agreement with the points made                                                             
in that response.  He discussed the Summary of Technical Responses                                                              
on page 3 as follows.  The first issue is about the tailings                                                                    
impoundment.  The USEPA is handling the tailings impoundment issue                                                              
and continuing government to government negotiations between the                                                                
Canadian government and Region X of EPA are ongoing.                                                                            
                                                                                                                                
CHAIRMAN HALFORD asked if EPA Region X requested mediation.  MR.                                                                
CONWAY replied that he believes the request made was a consolidated                                                             
effort by state and federal agencies.                                                                                           
                                                                                                                                
SENATOR 236                                                                                                                     
                                                                                                                                
SENATOR PEARCE stated her concern is that it is unnecessary to use                                                              
channels in Washington, D.C., and that Alaska officials can pick up                                                             
the phone and call the Canadian officials.  She asked Mr. Conway                                                                
why the Administration is pushing state department intervention                                                                 
when he just said ADEC does not have any specific disagreements                                                                 
with the Canadian government's response.  She emphasized there is                                                               
no point in escalating problems with British Columbia                                                                           
unnecessarily, and that anytime the U.S. government and Ottawa get                                                              
involved the issue gets more confusing and less is accomplished.                                                                
                                                                                                                                
MR. CONWAY replied ADEC is speaking directly with BC government                                                                 
officials so a direct process is ongoing.                                                                                       
                                                                                                                                
CHAIRMAN HALFORD asked Mr. Conway to continue discussing ADEC's                                                                 
specific concerns.                                                                                                              
                                                                                                                                
MR. CONWAY stated monitoring long term enforcement has not been an                                                              
issue with ADEC and the Migratory Bird Act issue is either an ADFG                                                              
or US Fish and Wildlife concern, not ADEC's.                                                                                    
                                                                                                                                
MR. CONWAY referred to page 8 of the BC government's response to                                                                
the development of design specifications covering mixing zones.                                                                 
                                                                                                                                
     BCMELP has reviewed the Alaska mixing zone regulation and                                                                  
     agrees with the proposed remedy as it relates to the                                                                       
     decision on the waste management act permit.                                                                               
                                                                                                                                
CHAIRMAN HALFORD affirmed ADEC and the BC government are in                                                                     
agreement on that issue.  MR. CONWAY said that is correct.                                                                      
                                                                                                                                
MR. CONWAY stated ADEC and the BC government also agree on number                                                               
2(b) of the response, entitled "Chronic Mine Effluent Toxicity,"                                                                
which reads:                                                                                                                    
                                                                                                                                
     Canada and BC agree with the three items identified in                                                                     
     the remedy as it relates to the issuance of the waste                                                                      
     management act permit and the approach to be undertaken                                                                    
     is summarized below.                                                                                                       
                                                                                                                                
MR. CONWAY referred to 2(c) on page 9, entitled, "Turbidity and                                                                 
Sedimentation," and read the following:                                                                                         
                                                                                                                                
     BCMELP agrees with the two items identified in the remedy                                                                  
     and the approach to the undertaking as summarized below.                                                                   
                                                                                                                                
He said there is no disagreement here, nor with 2(d).                                                                           
                                                                                                                                
MR. CONWAY summarized that, in essence, the Canadians have agreed                                                               
to work with us to get information.  The remaining issues we have                                                               
pertain to getting the opportunity to review the actual                                                                         
information.  They have agreed on the approach by working with us                                                               
several times a week on exchanging information.  There are about a                                                              
dozen items the Division still needs to get information on even                                                                 
though DEC is busy permitting Alaska projects.                                                                                  
                                                                                                                                
CHAIRMAN HALFORD asked if DEC felt the IJC was necessary.                                                                       
                                                                                                                                
MR. CONWAY answered that he didn't know since good progress is                                                                  
being made.  But prior to the Governor requesting the referral, we                                                              
were being left out of the discussion.                                                                                          
                                                                                                                                
He noted that the way Canada permits their projects, they do a                                                                  
different level of prepermitting and getting the permit out.  Once                                                              
the project starts, they go back and make changes and redesign the                                                              
project.  They have a lot of monitoring and oversight enforcement.                                                              
                                                                                                                                
Number 342                                                                                                                      
                                                                                                                                
SENATOR PEARCE said she thought they used the same process to                                                                   
develop other mines in our joint watersheds in Southeast.  She                                                                  
asked Mr. Conway if there was anything he had asked for that they                                                               
had flat out said "No" to.                                                                                                      
                                                                                                                                
MR. CONWAY answered no.                                                                                                         
                                                                                                                                
SENATOR LINCOLN asked if there are major concerns on his list that                                                              
feels won't be addressed.                                                                                                       
                                                                                                                                
MR. CONWAY explained that most of the tasks on his list will take                                                               
months to accumulate the information.  Some of them require three                                                               
or four months like the risk assessment which requires looking at                                                               
the representative samples of the effluent.  We also need mixing                                                                
zone calculations which they call dilution.  We haven't asked them                                                              
to adopt Alaska's water quality standards, but have asked for                                                                   
something comparable.  They are responding with what they say is an                                                             
equivalent.  Base line data is needed and spring is the best time                                                               
to do that.  Toxicity testing needs to be done for both acute and                                                               
chronic toxicity.  We haven't seen the data Mr. Ringstad referred                                                               
to showing that the trout all survived after 36 hours (LC50 test).                                                              
                                                                                                                                
SENATOR LINCOLN asked if there was anything to keep the Canadian                                                                
group from continuing their project and are we slowing it up with                                                               
our list.                                                                                                                       
                                                                                                                                
MR. CONWAY said he didn't believe we were slowing them up.  This                                                                
project requires follow-through as with any U.S. mine.  After four                                                              
years of work, a U.S. mine is about ready to go; whereas the                                                                    
Canadian project is behind because their process is a bit                                                                       
different.                                                                                                                      
                                                                                                                                
SENATOR PEARCE clarified that no one alleged that the permitting                                                                
process was stopping the project, but that going to the IJC would                                                               
likely take two years which would slow down the mine.                                                                           
                                                                                                                                
SENATOR LINCOLN wanted to make sure that the things they are                                                                    
requesting do not hold up the project.                                                                                          
                                                                                                                                
Number 420                                                                                                                      
                                                                                                                                
MR. KEN TAYLOR, Director, Division of Habitat, said his concerns                                                                
are primarily related to salmon and salmon habitat.  The Taku is a                                                              
producer of all five species of salmon in the Pacific and is the                                                                
largest producer in Southeast, producing as much as 2 million                                                                   
salmon annually.  About 400,000 are cohos, 300,000 are sockeyes,                                                                
100,000 king salmon, 1 million pinks, and about 50,000 chums.  This                                                             
river's production compares very evenly with the Copper River, the                                                              
Susitna, and the Yukon Rivers.  They would be asking the same                                                                   
questions and seeking the same assurances if a project were                                                                     
proposed in any of the other large rivers.                                                                                      
                                                                                                                                
The economic value of the Taku salmon resource is really large.                                                                 
The commercial gillnet fishery is worth about $2.8 million to about                                                             
100 permit holders and the commercial troll harvest of coho for 460                                                             
permit holders is worth about $1 million with an average catch of                                                               
about 58,000 cohos.  These don't include the value of the salmon to                                                             
the seafood processors in local communities.                                                                                    
                                                                                                                                
Sport angling on the Taku is also extremely important, contributing                                                             
about $6.4 million in direct spending to the Juneau economy.  In                                                                
high years, as many as 10,000 kings are taken - about 40 percent of                                                             
which are from the Taku; about 50,000 cohos - about 40 percent from                                                             
Taku; and about 32,000 anglers receive benefits from this system.                                                               
                                                                                                                                
In the US/Canada Salmon Treaty process, both countries have                                                                     
committed to special enhancement and conservation measures for                                                                  
trans boundary stocks that include the Taku River sockeyes.  The                                                                
State's special concern for Taku River salmon is consistent with                                                                
our position in other treaty negotiations.                                                                                      
                                                                                                                                
MR. TAYLOR said our major concerns now are with the 75 miles of                                                                 
road that would access the mine site and the many river crossings.                                                              
If they are not designed, constructed, and maintained properly, we                                                              
are going to lose spawning habitat.  We have very limited field                                                                 
studies documenting sockeye spawning adjacent to and immediately                                                                
down stream of the mine site; this applies to juvenile coho,                                                                    
sockeye, and king salmon just downstream of the mine, as well.                                                                  
Most extensive thorough surveys are expected to document additional                                                             
salmon spawning and rearing areas at stream crossings and in areas                                                              
potentially affected by the effluent.  The proposed tailings                                                                    
disposal site is on an active alluvial fan and adequate base line                                                               
data and detailed engineering are not yet available to assure the                                                               
State there will not be water quality problems.                                                                                 
                                                                                                                                
MR. TAYLOR said he thought it was reasonable that critically                                                                    
important concerns be resolved prior to permitting, but the                                                                     
Canadians have a different process.  We are not asking them to                                                                  
adopt our process, but we do want to be involved in the critical                                                                
decisions that should be made before the overall decision is made.                                                              
                                                                                                                                
The toxicity of mixing zones to fish is still unknown for several                                                               
reasons and this is being worked on with DEC.  The Tulsequah ore                                                                
body is very similar to that of the Britannia Mine which has                                                                    
destroyed the salmon run in Britannia Creek and further impacted                                                                
Howe Sound.  Contingency plans for emergency closure of the mine                                                                
and the level of government inspections and enforcement capability                                                              
is one of the things we think should be finalized as part of the                                                                
mine approval process, not something that should happen afterwards,                                                             
he said.                                                                                                                        
                                                                                                                                
Our involvement in the Canadian review process has been                                                                         
constructive and we have been making progress.  We still have                                                                   
numerous concerns regarding fish habitat protection. Many of these                                                              
concerns have been protected in the response we got from Canada.                                                                
The response is still fairly vague because there are a lot of                                                                   
unknowns.  Our Canadian technical counterparts have agreed our                                                                  
resource concerns are legitimate ones.                                                                                          
                                                                                                                                
In discussions with Canada, MR. TAYLOR said, we have begun to agree                                                             
on reasonably mine development standards, but so far it's informal                                                              
and voluntary and relies on Canada's continued invitation to us to                                                              
participate.                                                                                                                    
                                                                                                                                
In summary, Alaska has enormous economic interest in this watershed                                                             
and we're proud of the fact that our salmon stocks are healthy                                                                  
including those in the Taku River and we want to keep them that                                                                 
way.  Quite frankly, we look south across the border and are less                                                               
than impressed with British Columbia's commitment to healthy and                                                                
productive salmon fisheries.  The bottom line is when we look at                                                                
the cost and benefits of the Tulsequah Chief mine, it appears that                                                              
the costs are all on our side of the border and the benefits are on                                                             
the Canadian side, but we have never said no to the mine and we are                                                             
looking to get answers to serious questions.  We are asking to have                                                             
a specified meeting for a role in the permit process.  Because the                                                              
mine is in a different country, we have had to use different tools                                                              
to protect our vitally important salmon resources.                                                                              
                                                                                                                                
CHAIRMAN HALFORD asked if there was any point at which the                                                                      
Department expects to have access to an evaluation on-site of raw                                                               
data and information and actually look at potential stream                                                                      
crossings.                                                                                                                      
                                                                                                                                
MR. TAYLOR answered that he wasn't sure when that point would be,                                                               
but when they get to the point of design, he hoped we would be                                                                  
involved since we have quite a bit of expertise in the Division on                                                              
design and construction to mitigate or prevent damage to spawning                                                               
habitats.  He understands there are nine major stream crossing and                                                              
probably as many as 200 culverts that will be necessary in this                                                                 
system.  If they are not designed properly, they will cut off a lot                                                             
of spawning habitat.                                                                                                            
                                                                                                                                
CHAIRMAN HALFORD commented that it will take a lot of finesse not                                                               
to look like a direct attack on the sovereignty of the country.                                                                 
                                                                                                                                
MR. TAYLOR agreed and said they don't have any direct funding to do                                                             
these kinds of things.  We are working in cooperation with                                                                      
California, Washington, and Oregon on culvert designs that will                                                                 
benefit the spawning salmon.  This is the cutting edge of                                                                       
construction design that will benefit everybody.  If the Canadians                                                              
are not interested now, they will be soon.                                                                                      
                                                                                                                                
SENATOR PEARCE asked if there are specific questions the Canadian                                                               
government haven't addressed.                                                                                                   
                                                                                                                                
MR. TAYLOR answered one of the problems we are having is in the                                                                 
mixing zone design.  We are dealing with a river that changes                                                                   
channels quite a bit.  The mixing zone requires a certain amount of                                                             
water to accomplish the detoxifying of the effluent.  We don't                                                                  
know, at this point, what will happen if the river changes channels                                                             
and they have their mixing somewhere else.  These types of                                                                      
questions need to still be addressed.                                                                                           
                                                                                                                                
SENATOR PEARCE asked if we are requiring cleaner effluent than the                                                              
intake water like we do in our own state.                                                                                       
                                                                                                                                
MR. CONWAY answered that we are not requiring anything, but we are                                                              
asking for the data they have on it.  If it got to a situation                                                                  
where we had some concerns about that level of effluent, we would                                                               
have a technical discussion about it to see if we could solve that                                                              
dispute.  We haven't gotten to that point, yet.  We would not                                                                   
require them to have a higher standard than we have in Alaska.                                                                  
                                                                                                                                
We have agreement on them doing mixing zone calculations and                                                                    
getting that information. We haven't seen the data.                                                                             
                                                                                                                                
CHAIRMAN HALFORD asked who's in charge of mixing zones.                                                                         
                                                                                                                                
MR. CONWAY answered that Division of Water Quality.                                                                             
                                                                                                                                
CHAIRMAN HALFORD asked if he would be in charge of the migration of                                                             
the mixing zone with the migration of the mixing stream.                                                                        
                                                                                                                                
MR. CONWAY said that is correct; they would do modeling of it and                                                               
set up a sampling plan that would show how it's moving according to                                                             
that model. The Alaskans and Canadians have agreed to this, but in                                                              
authorizing a mixing zone, there are a number of things people need                                                             
to show.  He also regularly consults with ADF&G to make sure they                                                               
are comfortable that the habitat and biota are protected.                                                                       
                                                                                                                                
Number 570                                                                                                                      
                                                                                                                                
SENATOR PEARCE moved to adopt a conceptual amendment adding the                                                                 
name of the member of the BC Assembly from the Taku area to the                                                                 
list of people this resolution will be sent to.  There were no                                                                  
objections and it was adopted.                                                                                                  
                                                                                                                                
SENATOR PARNELL moved to pass CSSCR 7(RES) with individual                                                                      
recommendations.  There were no objections and it was so ordered.                                                               

Document Name Date/Time Subjects