Legislature(2005 - 2006)BUTROVICH 205

04/18/2005 03:30 PM Senate RESOURCES


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03:34:55 PM Start
03:40:00 PM Confirmation Hearing: || Alaska Oil and Gas Conservation Commission (aogcc) - Cathy Forester
03:43:28 PM SB96
04:34:31 PM SB113
05:09:59 PM HB197
05:24:38 PM SB170
05:58:37 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Confirmation Hearing:
AOCGG Member - Cathy Forester
+= SB 96 UNIVERSITY LAND GRANT/STATE FOREST TELECONFERENCED
Moved CSSB 96(RES) Out of Committee
+= SB 113 GULF OF ALASKA GROUNDFISH FISHERY TELECONFERENCED
Heard & Held
*+ SB 170 BD/DEPT OF FISH & GAME POWERS & DUTIES TELECONFERENCED
Heard & Held
+ HB 197 OIL SPILL EXEMPTIONS FOR GAS WELLS TELECONFERENCED
Moved CSHB 197(RLS) Out of Committee
           SB  96-UNIVERSITY LAND GRANT/STATE FOREST                                                                        
                                                                                                                                
CHAIR THOMAS WAGONER  announced SB 96 to be  up for consideration                                                               
again.                                                                                                                          
                                                                                                                                
SENATOR SEEKINS  moved to adopt  CSSB 96(RES), version G,  as the                                                               
working draft. There were no objections and it was so ordered.                                                                  
                                                                                                                                
SENATOR SEEKINS moved to adopt the letter of intent.                                                                            
                                                                                                                                
3:43:28 PM                                                                                                                    
SENATOR GUESS  objected for discussion  purposes. She  asked what                                                               
would  happen  if a  not-for-profit  wants  to  buy the  land  to                                                               
develop it,  because it seems  like the  letter of intent  is for                                                               
them to not receive the land.                                                                                                   
                                                                                                                                
SENATOR SEEKINS replied  that the intent is that the  land is not                                                               
for conservation purposes; it's for development.                                                                                
                                                                                                                                
SENATOR GUESS asked if that means  if the university can get more                                                               
money for  the land, but it's  for conservation, it still  has to                                                               
sell it for development.                                                                                                        
                                                                                                                                
SENATOR SEEKINS  replied that would  be the practical  result and                                                               
he thought that would be a reasonable handicap.                                                                                 
                                                                                                                                
SENATOR  GUESS asked  what if  the land  in question  couldn't be                                                               
developed for some reason.                                                                                                      
                                                                                                                                
SENATOR  SEEKINS replied  that  he didn't  think  the lands  were                                                               
selected  because they  are useless.  Therefore,  they should  be                                                               
used for development.                                                                                                           
                                                                                                                                
3:49:23 PM                                                                                                                    
CHAIR WAGONER  added that the real  meat of the letter  of intent                                                               
is in the next to the  last paragraph where the university agrees                                                               
that  the parcel  at Coldfoot  will not  be used  to establish  a                                                               
business in direct competition with the one already there.                                                                      
                                                                                                                                
3:50:56 PM                                                                                                                    
SENATOR  ELTON said  that some  people have  testified that  land                                                               
held  for  conservation  purposes  does have  a  strong  economic                                                               
component;  it attracts  people  to  lodges in  the  area. He  is                                                               
worried  that   this  language  would   preclude  that   kind  of                                                               
consideration to be made by the university.                                                                                     
                                                                                                                                
SENATOR  SEEKINS said  he understands  that concern,  but if  the                                                               
land is  put into  conservation, that  lodge owner  is precluding                                                               
anyone else  from ever coming  in to compete  in what could  be a                                                               
two-lodge area. He didn't think  that type of situation should be                                                               
precluded.                                                                                                                      
                                                                                                                                
3:52:44 PM                                                                                                                    
SENATOR STEDMAN said that remote  cabin sites are the highest and                                                               
best  use for  a majority  of  the Southeast  parcels, not  large                                                               
scale  industrialized logging  that might  be conducive  on other                                                               
parcels.  Most  of  the  land  has been  held  in  private  hands                                                               
previous to statehood. He wanted  it made clear to the University                                                               
that the intent is to have land go to individuals.                                                                              
                                                                                                                                
3:54:10 PM                                                                                                                    
SENATOR ELTON  responded that he appreciates  the discussion, but                                                               
again pointed out  that there could be an economic  benefit to an                                                               
existing landowner  or a  new business  owner for  not developing                                                               
the  land.  Not   allowing  transferred  land  to   be  used  for                                                               
conservation purposes  could preclude  a neighboring  lodge owner                                                               
from purchasing it to keep it  in its natural state to enhance or                                                               
protect his business.                                                                                                           
                                                                                                                                
3:54:54 PM                                                                                                                    
CHAIR WAGONER replied that's the reason he favors this letter.                                                                  
                                                                                                                                
     If  we  start  taking  lands   that  are  meant  to  be                                                                    
     transferred to  the University of  Alaska or  any other                                                                    
     area to  be developed and all  of a sudden we  not only                                                                    
     take them out of the  realm of developable land, but if                                                                    
     we put  them into 501(c)(3)s  or some other  tax exempt                                                                    
     organization,  we then  take the  ability -  if there's                                                                    
     boroughs  organized  -  we  take  the  ability  of  the                                                                    
     borough to have that land on  the local tax roles to be                                                                    
     part of their tax base, too.                                                                                               
                                                                                                                                
     That's one of the things  that I'm more concerned about                                                                    
     - especially in some of  the areas in Southeastern than                                                                    
     any other area. Because  that land should always remain                                                                    
     on the  borough tax roles.  I think we've  taken enough                                                                    
     land  out of  the  private  sector and  put  it in  the                                                                    
     public sector.  I happen to have  a lot of land  in the                                                                    
     Kenai Peninsula Borough that that  has happened to just                                                                    
     recently and they wanted to have a lot more....                                                                            
                                                                                                                                
3:56:16 PM                                                                                                                    
SENATOR ELTON said he understands  that argument, but an existing                                                               
lodge would pay taxes  on the land even if it is  being held in a                                                               
conservation state.                                                                                                             
                                                                                                                                
3:56:52 PM                                                                                                                    
SENATOR GUESS asked  if the university pays taxes on  the land it                                                               
owns.                                                                                                                           
                                                                                                                                
CHAIR  WAGONER  answered no,  but  he's  concerned about  who  it                                                               
transfers its lands to.                                                                                                         
                                                                                                                                
SENATOR GUESS maintained her objection  to adopting the letter of                                                               
intent.  A roll  call vote  was taken.  Senators Elton  and Guess                                                               
voted  nay; Senators  Seekins, Dyson,  Stedman and  Chair Wagoner                                                               
voted yea; and the letter of intent was adopted.                                                                                
                                                                                                                                
3:58:11 PM                                                                                                                    
SENATOR STEDMAN offered Amendment 1.                                                                                            
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
 OFFERED IN THE SENATE                  BY SENATOR STEDMAN                                                                     
                                                                                                                                
     TO:  CSSB 96(RES), version "G"                                                                                            
                                                                                                                                
Page 7, line 30:                                                                                                               
                                                                                                                                
     Delete "JU.LM.1001, Lena Creek", and insert "HA.CH.1001,                                                                   
Haines-Chilkoot"                                                                                                               
                                                                                                                                
Page 8, following line 9:                                                                                                      
                                                                                                                                
     Insert:                                                                                                                   
                                                                                                                                
     (p)  Notwithstanding (a) of this section, the state land                                                                   
identified  in  this subsection  and  described  in the  document                                                               
entitled  "University  of Alaska  Land  Grant  List 2005,"  dated                                                               
January  12, 2005,  may  not  be conveyed  to  the University  of                                                               
Alaska under  this section if the  land is included in  a borough                                                               
formed   before  July   1,  2009,   that  includes   Wrangell  or                                                               
Petersburg.   If  such a  borough is  not formed  before July  1,                                                               
2009, the following  land shall be conveyed to  the University of                                                               
Alaska on July  1, 2009; or if land within  the following parcels                                                               
is  not  selected  by  a  borough before  January  1,  2013,  the                                                               
following land shall  be conveyed to the University  of Alaska on                                                               
June 30, 2013:                                                                                                                 
                                                                                                                                
          (1)   Parcel Number SD.1001, Beecher Pass;                                                                           
          (2)   Parcel Number SD.1001, Favor Peak;                                                                             
          (3)   Parcel Number CS.TL.1001, Three Lake Road;                                                                     
          (4)   Parcel Number SD.1001, Read Island;                                                                            
          (5)   Parcel Number SD.1001, Whitney Island;                                                                         
        (6)   Parcel Number CS.EW.1001, Earl West Cove;                                                                        
          (7)   Parcel Number CS.OV.1001, Olive Cove;                                                                          
          (8)   Parcel Number SD.1001, Thoms Place;                                                                            
                                                                                                                                
SENATOR  STEDMAN  said there  is  very  little private  or  state                                                               
property  in Southeast  Alaska; it's  mostly in  the middle  of a                                                               
federal  forest.   This  amendment   gives  the   communities  an                                                               
opportunity to possibly pick up  the parcels if they organize. It                                                               
is not as far-reaching  as he would like as far  as the amount of                                                               
parcels  are  concerned  and  he is  concerned  over  the  public                                                               
process, which he  thought needed work with  the university. It's                                                               
nice to go  to the communities that are affected  and hold public                                                               
hearings.                                                                                                                       
                                                                                                                                
4:01:34 PM                                                                                                                    
SENATOR  ELTON proposed  Amendment 1  to Amendment  1 on  page 8,                                                               
line 3,  under subsection  (n) to add  "(8) MF1002,  Idaho Inlet;                                                               
(9) MF1001 Mite Cove; and (10) Pelican."                                                                                        
                                                                                                                                
SENATOR SEEKINS objected for discussion.                                                                                        
                                                                                                                                
SENATOR  STEDMAN said  he  wanted  to know  if  it was  permanent                                                               
removal  or removal  of  a time  certain to  be  included into  a                                                               
borough. He  would accept it  as a  friendly amendment if  it was                                                               
similar to the purpose of the original amendment.                                                                               
                                                                                                                                
SENATOR SEEKINS  said his  objection is based  on his  reading of                                                               
the  bill;  that  the  amendment  would  accomplish  a  permanent                                                               
withdrawal of those lands.                                                                                                      
                                                                                                                                
SENATOR ELTON  said that Senator  Seekins' statement  is correct.                                                               
It adds it  to the previously excluded list and  does not include                                                               
language under subsection (p), which  is specific to the Wrangell                                                               
Petersburg area.  He said  there has  been discussion  of borough                                                               
formation  in this  area and  those  parcels equal  more than  99                                                               
percent  of  the state  land  that  would  be available  to  that                                                               
borough. He had no idea where borough boundaries would be.                                                                      
                                                                                                                                
SENATOR  SEEKINS  recalled  that  Mr.  Johnson's  (SRES  4/11/05)                                                               
testimony emphasized that he wanted  a specific date for boroughs                                                               
to  be formed  so that  lands could  be left  for them  to choose                                                               
from.                                                                                                                           
                                                                                                                                
     I  am  very  much  in   favor  of  allowing  that  land                                                                    
     selection process to be there,  but I think there needs                                                                    
     to be some kind of a  date in time where either they're                                                                    
     faced with  those lands being transferred  because they                                                                    
     don't want to  form a borough or they come  back to the                                                                    
     legislature to  extend that period  of time to  be able                                                                    
     to protect those  lands if they do intend  on forming a                                                                    
     borough of some kind.                                                                                                      
                                                                                                                                
4:06:12 PM                                                                                                                    
SENATOR  ELTON  commented that  lands  can  remain available  for                                                               
borough selection  only if they  remain with DNR.  The difficulty                                                               
in  this instance  is that  you have  several different  entities                                                               
like Elfin Cove, Pelican, Gustavus  and Hoonah. He suggested that                                                               
any deadline would guarantee that they  will come back at a later                                                               
date because, "I  think that between now and then,  it's going to                                                               
be very,  very difficult  to get these  entities together  to try                                                               
and figure out the governance systems that they might want."                                                                    
                                                                                                                                
SENATOR  SEEKINS said  he wouldn't  mind  them coming  back at  a                                                               
later date and if there had  been some movement toward creating a                                                               
borough,  he  would  be  very   sympathetic  to  extending  those                                                               
deadlines.                                                                                                                      
                                                                                                                                
4:08:17 PM                                                                                                                    
SENATOR  GUESS asked  what happens  if  someone wants  to form  a                                                               
borough with this land without Wrangell or Petersburg.                                                                          
                                                                                                                                
     Are we  giving leverage  to Wrangell and  Petersburg in                                                                    
     discussing borough  formation by  saying that  the land                                                                    
     has to be  in a borough form that  includes Wrangell or                                                                    
     Petersburg?                                                                                                                
                                                                                                                                
SENATOR STEDMAN  replied that  they are  included in  one borough                                                               
under the  planned boroughs,  but they may  decide to  create two                                                               
separate boroughs.  Earl West  Cove, Olive  Cove and  Thoms Place                                                               
would be  in the Wrangell area  and Favor Peak, Beecher  Pass and                                                               
Three Lake  Road would  be in the  other. The  amendment language                                                               
intends to clarify  that those properties can be  selected if one                                                               
or two  boroughs are created.  If none are created,  that's fine,                                                               
too.                                                                                                                            
                                                                                                                                
4:10:31 PM                                                                                                                    
SENATOR  SEEKINS  said he  thought  Amendment  1 to  Amendment  1                                                               
permanently removes Mite  Cove, Idaho Inlet and  Pelican from the                                                               
list to transfer to the University of Alaska.                                                                                   
                                                                                                                                
4:11:38 PM                                                                                                                    
SENATOR  STEDMAN said  he  opposed Amendment  1  to Amendment  1,                                                               
"Because if  the amendment  to the  amendment goes  forward, I've                                                               
got a whole list I'd like to add  to it." He thought adding a new                                                               
paragraph,  (q), that  would  address those  parcels  would be  a                                                               
better way of dealing with it.                                                                                                  
                                                                                                                                
4:12:34 PM                                                                                                                    
SENATOR SEEKINS called  the question on Amendment  1 to Amendment                                                               
1. A roll call vote  was taken. Senators Stedman, Seekins, Dyson,                                                               
and Chair Wagoner voted nay;  Senators Elton and Guess voted yea;                                                               
and Amendment 1 to Amendment 1 failed.                                                                                          
                                                                                                                                
4:13:20 PM                                                                                                                    
SENATOR ELTON  moved conceptual Amendment  2 to Amendment  1 that                                                               
would  provide that  those three  parcels be  protected with  the                                                               
same deadlines and in the same way as the parcels listed in (p).                                                                
                                                                                                                                
4:14:08 PM                                                                                                                    
SENATOR  SEEKINS asked  if the  conceptual  amendment would  give                                                               
Pelican, Idaho Inlet  and Mite Cove the same  opportunity to form                                                               
a borough before January 1, 2013.                                                                                               
                                                                                                                                
4:14:58 PM                                                                                                                    
SENATOR BEN STEVENS joined the committee.                                                                                       
                                                                                                                                
4:14:44 PM                                                                                                                    
SENATOR  ELTON replied  that  such  a borough  would  have to  be                                                               
formed before July  1, 2009. If not, those parcels  would then be                                                               
transferred to the university prior to June 30, 2013.                                                                           
                                                                                                                                
4:15:19 PM                                                                                                                    
There were no  objections to conceptual Amendment  2 to Amendment                                                               
1 and it was adopted.                                                                                                           
                                                                                                                                
SENATOR GUESS clarified  that in the new section  (q) the borough                                                               
does not have to include Petersburg and Wrangell.                                                                               
                                                                                                                                
SENATOR STEDMAN replied that was correct.                                                                                       
                                                                                                                                
CHAIR  WAGONER  announced  that the  committee  had  Amendment  1                                                               
amended in front of it.                                                                                                         
                                                                                                                                
4:16:22 PM                                                                                                                    
SENATOR GUESS asked what parcel was replacing Lena Creek.                                                                       
                                                                                                                                
CHAIR WAGONER replied Haines-Chilkoot.                                                                                          
                                                                                                                                
SENATOR GUESS asked if that had been  on the list before or is it                                                               
a new parcel.                                                                                                                   
                                                                                                                                
SENATOR STEDMAN answered  that it was on the list  before and was                                                               
removed.                                                                                                                        
                                                                                                                                
TIM BARRY,  staff to Senator  Stedman, added  that Representative                                                               
Thomas  requested  that the  parcel  be  put  back. It's  in  his                                                               
district.                                                                                                                       
                                                                                                                                
4:16:55 PM                                                                                                                    
CHAIR WAGONER  asked what  the difference  in acreage  is between                                                               
the two parcels.                                                                                                                
                                                                                                                                
MR. BARRY  replied the  Lena Creek  parcel is  610 acres  and the                                                               
Haines-Chilkoot parcel is 60 acres.                                                                                             
                                                                                                                                
SENATOR SEEKINS asked what the amendment does.                                                                                  
                                                                                                                                
MR. BARRY  replied that the  Lena Creek parcel had  been excluded                                                               
from the transfer  list, but it will now be  included. The Haines                                                               
parcel will be excluded.                                                                                                        
                                                                                                                                
4:18:06 PM                                                                                                                    
CHAIR WAGONER announced that there  were no further objections or                                                               
questions on Amendment 1 amended; and it was therefore adopted.                                                                 
                                                                                                                                
4:18:41 PM                                                                                                                    
SENATOR ELTON said  he had another amendment,  but wouldn't offer                                                               
it at this time.                                                                                                                
                                                                                                                                
4:19:00 PM                                                                                                                    
CHAIR WAGONER asked if the University or DNR had any further                                                                    
discussion. There was none offered.                                                                                             
                                                                                                                                
4:19:13 PM                                                                                                                    
SENATOR SEEKINS moved CSSB 96(RES), version G, from committee                                                                   
with individual recommendations and attached fiscal note.                                                                       
                                                                                                                                
SENATOR ELTON objected.                                                                                                         
                                                                                                                                
A roll call vote was taken. Senators Dyson, Guess, Seekins,                                                                     
Stedman and Chair Wagoner voted yea; Senator Elton voted nay;                                                                   
and CSSB 96(RES) moved from committee.                                                                                          

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