Legislature(2001 - 2002)

04/03/2002 03:40 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
               SB 219-NAVIGABLE WATERS COMMISSION                                                                           
                                                                                                                                
CHAIRMAN  JOHN TORGERSON  called  the Senate  Resources  Committee                                                            
meeting  to  order at  3:40  p.m.  Present were  Senators  Wilken,                                                              
Halford,  Stevens  and  Chairman   Torgerson.  He  said  he  would                                                              
probably  not have a  quorum to  take action  on bills today,  but                                                              
would at  least take testimony on  the bills. He announced  SB 219                                                              
to be up for consideration.                                                                                                     
                                                                                                                                
MR. RON SOMMERVILLE, consultant to  the House and Senate Majority,                                                              
said that  SB 219 is  designed for one  purpose - to  expedite the                                                              
process for determination of navigability  in Alaska. He explained                                                              
some background history as follows:                                                                                             
                                                                                                                                
     In  a nutshell  when we got  statehood in  1959 and  the                                                                   
     state inherited title to about  60 million acres of tide                                                                   
     and  submerged  lands,  about  15  million  of  that  is                                                                   
     navigable  waters under  our streams  and, according  to                                                                   
     DNR, about 30 some million acres  lies within our marine                                                                   
     submerged  lands   out  to  three  miles.   The  key  on                                                                   
     navigability is  if it was navigable at  statehood, it's                                                                   
     navigable  today. The  problem has  been -  now I'll  go                                                                   
     through two or three items which  will illustrate why in                                                                   
     fact we  should pursue a  more expeditious process.  The                                                                   
     final  determination,   unfortunately,  has   fallen  in                                                                   
     almost every  case to the  federal courts, which  is not                                                                   
     unusual.  That's the  way almost every  state has  done,                                                                   
     except  Alaska  has a  considerable  amount  of water  -                                                                   
     about 22,000  thousand streams  which could probably  be                                                                   
     litigated  as   being  navigable  or  nonnavigable   and                                                                   
     upwards of  one million or  more of water  bodies, lakes                                                                   
     in particular, that could be litigated as well.                                                                            
                                                                                                                                
     The problem basically is, as  the state has found in the                                                                   
     Quiet Title Act  itself, in summarizing it,  the feds in                                                                   
     essence,  the Court under  the Quiet  Title Act, can  be                                                                   
     defendants  in adjudicating  a disputed  title in  which                                                                   
     the  U.S. claims  an  interest. The  feds  have taken  a                                                                   
     narrow  view of  that and  it  has been  upheld to  some                                                                   
     extent in the  courts. If the feds don't  take an active                                                                   
     interest or  assert an active  interest in a  particular                                                                   
     water body,  then the state  is powerless to  force some                                                                   
     sort of  quiet title  act. I'll give  you an example  of                                                                   
     that in just a second.                                                                                                     
                                                                                                                                
     The second  basic problem  is the navigability  criteria                                                                   
     itself. Although the Utah Lake  decision in 1987 said if                                                                   
     Congress  didn't  explicitly  take  away  the  tide  and                                                                   
     submerged  land estate under  the Equal Footing  Clause,                                                                   
     in essence  when we  became a  state, we inherited  that                                                                   
     title.                                                                                                                     
                                                                                                                                
     The Gulkana  Case in 1987 was  probably the key  case in                                                                   
     Alaska,  which I might  add that  most of the  attorneys                                                                   
     have told  me that navigability  is kind of on  a state-                                                                   
     by-state, case-by-case basis  - particular water body or                                                                   
     stream or whatever. The Gulkana  was specific to Alaska.                                                                   
     In  your  packets  there's  kind  of a  summary  of  the                                                                   
     Gulkana thing.  I could read that if you  desire, but in                                                                   
     essence it  affirmed what the state had  been contending                                                                   
     for a long time - that is a  very broad definition as to                                                                   
     the  navigability  use  or  use  as  a  water  body  for                                                                   
     commerce.  The Gulkana criteria  has been applied  since                                                                   
     1983 to almost  every decision, although be  it very few                                                                   
     of them relating  to navigability. But it  is a standard                                                                   
     by which navigability will be  determined in the future.                                                                   
     There have been  other cases that the Department  of Law                                                                   
     has  pursued   in  order  to  try  to  get   some  clear                                                                   
     definition  from  the courts  as  to what  water  bodies                                                                   
     would qualify.                                                                                                             
                                                                                                                                
     The  third  item, which  is  a  difficulty, is  the  BLM                                                                   
     surveys themselves, one of the  reasons why the state is                                                                   
     now looking at some expeditious  process for determining                                                                   
     that    [indisc.].   It   wasn't    until   1983    when                                                                   
     administratively  BLM  decided to  utilize  its own  BLM                                                                   
     manual  of surveying instructions,  and later  ratified,                                                                   
     by the way,  in 1988 by Congress instructing  them to do                                                                   
     that. But prior  to 1983 a lot of conveyances  were made                                                                   
     to corporations in the state,  Native Corporations under                                                                   
     the Alaska  Native Claims Settlement Act, where  in fact                                                                   
     the BLM did  not determine navigability. As  such, a lot                                                                   
     of  streams  and  water  bodies   were  transferred  and                                                                   
     submerged  lands with them  to the corporations  whereby                                                                   
     the  state said  we think a  lot of  these water  bodies                                                                   
     were in  fact navigable  and thus sets  up a case  where                                                                   
     you have  plotted title and  the potential for  numerous                                                                   
     litigation.  So, there's  never  been an  attempt to  go                                                                   
     back  prior to  1983 and  correct the  errors that  were                                                                   
     made in the conveyances.                                                                                                   
                                                                                                                                
     Since statehood there have been  13 rivers determined by                                                                   
     the federal courts to be navigable  in 40-some years. We                                                                   
     estimate 22,000 rivers and the  cost of about $1 million                                                                   
     went into  a court  case called  the Kandig, Nation  and                                                                   
     the Black  Rivers [in northeast Alaska]. That  was three                                                                   
     rivers  out of two  hundred that  the Department of  Law                                                                   
     had  submitted  in  1992  and   1996  to  Department  of                                                                   
     Interior with  indication on the  Quiet Title Act  - 180                                                                   
     day  notice,  we intend  to  quiet  title to  these  two                                                                   
     hundred water bodies.                                                                                                      
                                                                                                                                
     Nine years  later and $1  million later we  resolved two                                                                   
     of them.  The third  one is the  one I was mentioning  a                                                                   
     while  ago - is  this issue  of the  feds convinced  the                                                                   
     courts that  they had not asserted  title to one  of the                                                                   
     rivers. So, two of them were  resolved and one was left,                                                                   
     in essence, in abeyance. There  was no decision. At this                                                                   
     rate, you can calculate it will  take us 99,000 years to                                                                   
     resolve our title to our navigable  waters and an excess                                                                   
     of $11 billion if the same criteria were applied.                                                                          
                                                                                                                                
     Why do  we need title? If  the state is going  to manage                                                                   
     its water  bodies, which it  more and more needs  to do,                                                                   
     that if you  want to issue leases, you want  to exercise                                                                   
     jurisdiction,  title  becomes important,  because  along                                                                   
     with title  comes the ability  to regulate what  happens                                                                   
     in  the water column.  SB 219  is designed  specifically                                                                   
     for that purpose. The body itself  that is being created                                                                   
     does not  have any  authority, it  won't go into  affect                                                                   
     until  a similar law  is passed  in Congress setting  it                                                                   
     up.    The    individuals     appointed    would    make                                                                   
     recommendations as  to which water bodies  qualify under                                                                   
     the Gulkana  decision or  other criteria established  by                                                                   
     the  courts. It  would provide  a list  of navigable  or                                                                   
     nonnavigable  waters, which  could then  be verified  by                                                                   
     Congress, the administration,  the courts or whatever. I                                                                   
     think Senator  Halford could elaborate more  on a recent                                                                   
     meeting that  he participated in with the  Secretary and                                                                   
     the  delegation.  The  response   was  positive  to  the                                                                   
     concept and  that's why Senator Halford asked  that this                                                                   
     bill is before you.                                                                                                        
                                                                                                                                
SENATOR HALFORD said:                                                                                                           
                                                                                                                                
     We  met with  the Secretary  of  Interior and  suggested                                                                   
     what we were  looking at, as the first draft,  to create                                                                   
     an  entity that  would  make recommendations  for  being                                                                   
     passed  by  state law  and  federal  law and  she  said,                                                                   
     'Well, we have a proposal that  we're considering for RS                                                                   
     2477s  in Utah  where basically  the federal  government                                                                   
     files   a    recordable,   basically,   a    notice   of                                                                   
     nonobjection,  which essentially closes  the case  or as                                                                   
     close as  you can get to  a quit claim on  an easement.'                                                                   
     That  was more  than we had  hoped to  think about  even                                                                   
     asking for.  The draft you have  takes out a lot  of the                                                                   
     formality in the original version,  but it still takes a                                                                   
     working  group  to  come  up   with  those  that  aren't                                                                   
     controversial to  be recommended for solution.  That was                                                                   
     the  conversation.   We  were  very  pleased   with  the                                                                   
     conversation.                                                                                                              
                                                                                                                                
MS. CAROL CARROLL, Director, Administrative Services, DNR,                                                                      
offered:                                                                                                                        
                                                                                                                                
     The department  has a navigability  person and  the only                                                                   
     thing that  we are really able  to do is to look  at the                                                                   
     conveyances  that the  federal government  does give  us                                                                   
     and analyze those  to make sure that they  have conveyed                                                                   
     the  land  that  they  are supposed  to  and  that  they                                                                   
     haven't  counted the riverbeds  within that  conveyance.                                                                   
     We  also, with  the one person  that we  have there,  we                                                                   
     make sure  that we take navigability  into consideration                                                                   
     when  we do land  sales by  making sure  that we get  an                                                                   
     easement so  we have public access. For  the committee's                                                                   
     information, on the House side  that person has been cut                                                                   
     out of the  budget. I just wanted you to  know that. The                                                                   
     department on this bill feels it would be a good idea.                                                                     
                                                                                                                                
CHAIRMAN TORGERSON asked, "Do you like the bill?"                                                                               
                                                                                                                                
MS. CARROLL replied, "We feel it would be that something really                                                                 
does need to be done and this bill is certainly one way you could                                                               
do that."                                                                                                                       
                                                                                                                                
CHAIRMAN TORGERSON said, "It's the only way I've seen so far.                                                                   
It's a very important bill."                                                                                                    
                                                                                                                                
CHAIRMAN TORGERSON  said they  would hold  the bill until  Senator                                                              
Wilken could join them.                                                                                                         
               SB 219-NAVIGABLE WATERS COMMISSION                                                                           
                                                                                                                                
CHAIRMAN  TORGERSON   announced   SB  219  to   be  back   up  for                                                              
consideration.                                                                                                                  
                                                                                                                                
SENATOR  WILKEN  moved  to  report  SB  219  from  committee  with                                                              
individual recommendations  and the attached fiscal  note. Someone                                                              
noted  that   the  committee   had  not   adopted  the   committee                                                              
substitute.                                                                                                                     
                                                                                                                                
SENATOR WILKEN moved and asked unanimous  consent to rescind their                                                              
actions  in  reporting  SB  219  from  committee.  There  were  no                                                              
objections.                                                                                                                     
                                                                                                                                
SENATOR WILKEN moved to adopt the  CS to SB 219, version C, Cooke,                                                              
3/27/02. There were no objections and it was so ordered.                                                                        
                                                                                                                                
SENATOR WILKEN moved  to report CSSB 219(RES)  from committee with                                                              
individual  recommendations and  the attached  fiscal note.  There                                                              
were no objections and it was so ordered.                                                                                       

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