Legislature(2007 - 2008)BUTROVICH 205

04/04/2007 04:30 PM Senate RESOURCES


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04:42:17 PM Start
04:43:23 PM Confirmation Hearing - Adf&g, Commissioner-designate Denby Lloyd
05:13:58 PM SB103
05:40:43 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+ Governor's Appointment - Confirmation TELECONFERENCED
Hearing:
Denby Lloyd - Dept of Fish & Game
-- Teleconference <Listen Only> --
*+ SB 103 LAND TRANSFERS ALASKA RR & EKLUTNA TELECONFERENCED
Moved SB 103 Out of Committee
-- Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
           SB 103-LAND TRANSFERS ALASKA RR & EKLUTNA                                                                        
                                                                                                                                
CHAIR HUGGINS announced SB 103 to be up for consideration.                                                                      
                                                                                                                                
5:13:58 PM                                                                                                                    
PAT  GAMBLE,  President  and  CEO,  Alaska  Railroad  Corporation                                                               
(ARRC),  supported SB  103  saying that  in  accordance with  the                                                               
Railroad  Transfer  Act,  the  ARRC  seeks  permission  from  the                                                               
legislature  to  transfer about  48  acres  of ARRC  property  to                                                               
Eklutna Inc.  with the blessing  of Eklutna Village.  The purpose                                                               
of  the transfer  is to  end a  long-standing gridlock  over this                                                               
particular piece  of property  that started out  as a  quarry. It                                                               
was  quarried for  a  number of  years until  such  time as  they                                                               
became aware that it was also  a significant cultural icon in the                                                               
history  of the  Eklutnas.  They became  gridlocked  in terms  of                                                               
using  any   quarry  product  and   figured  any   future  mining                                                               
possibilities   were  very   remote.   After  much   unsuccessful                                                               
litigation, they decided  the right thing to do  was recognize it                                                               
as a  cultural issue and resolve  it by signing the  land over to                                                               
the Eklutnas. In addition, Eklutna,  Inc. and CIRI, to the extent                                                               
that it  has rights under the  surface of lands all  through this                                                               
particular  area,  have a  lot  of  interests that  the  Railroad                                                               
wanted to further over time.                                                                                                    
                                                                                                                                
5:17:43 PM                                                                                                                    
SENATOR WIELECHOWSKI asked what the status  of the land is to the                                                               
Railroad right now.                                                                                                             
                                                                                                                                
MR. GAMBLE replied that it is one of fee simple ownership.                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  asked what the  ARRC would get  in exchange                                                               
for the transfer.                                                                                                               
                                                                                                                                
MR. GAMBLE replied that the transfer  is not value for value, but                                                               
rather:                                                                                                                         
                                                                                                                                
     We are  transferring the  property just  simply because                                                                    
     we  feel  that it's  rightfully  theirs  and we're  not                                                                    
     going to  use it.  We're not going  to mine  the quarry                                                                    
     any  more as  we had  over a  number of  years. In  the                                                                    
     sense that  there's an exchange, they  have agreed that                                                                    
     any rock  that is currently  laying on the  ground that                                                                    
     was  shot in  the past  - it's  been there  for several                                                                    
     years -  any rock of  whatever size that would  be part                                                                    
     of a cleanup  that we would go in and  do and bring the                                                                    
     materials  out in  order to  leave the  land clean,  we                                                                    
     could have.  In addition,  if there  was any  desire of                                                                    
     Eklutna Village or Eklutna Inc  to try to landscape the                                                                    
     face of what has already  been shot, quarried, over the                                                                    
     years and  to try to clean  that up and make  it look a                                                                    
     little  more presentable,  we're certainly  amenable to                                                                    
     going  in  and  with certain  restrictions  doing  that                                                                    
      cleanup and again picking up whatever comes off the                                                                       
        face as we clean that up and take that out, too,                                                                        
     before we roll the track up.                                                                                               
                                                                                                                                
SENATOR WIELECHOWSKI  asked how  he can say  the land  belongs to                                                               
the Railroad in  fee simple, but yet the  land rightfully belongs                                                               
to Eklutna.                                                                                                                     
                                                                                                                                
MR. GAMBLE  explained that's part  of the  cultural determination                                                               
he and  his staff made when  looking into the history  of how the                                                               
land came into  the Railroad's hands. "Things were done  in a way                                                               
that we probably  would not accept today."   The objection raised                                                               
by the Eklutna Village in the  late 90s highlighted this issue to                                                               
the point  where their interests  were recognized finally  by the                                                               
Railroad and the federal government.                                                                                            
                                                                                                                                
5:20:07 PM                                                                                                                    
He related  that the history goes  back to World War  II when the                                                               
Eklutna Village offered  the quarry to the Army to  use. The Army                                                               
ran the Railroad  in those days. After the war  ended, the Native                                                               
School  that owned  the  property closed  the  quarry and  moved,                                                               
surplusing the  land. The Railroad  asked for the quarry  and the                                                               
Bureau  of Indian  Affairs (BIA),  not  the Village,  gave it  to                                                               
them. The Village  felt like it had been sold  out at that point.                                                               
This is the story he heard over and over again.                                                                                 
                                                                                                                                
He explained  that in the  North Anchorage Land  Agreement (NALA)                                                               
the Railroad was  given the right to mine the  quarry down to the                                                               
flat ground.  However, the  very name  "Eklutna" talks  about the                                                               
geographical  features  [the two  knobs  on  either side  of  the                                                               
river] that were being mined away.                                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI asked if this property had an appraisal.                                                                   
                                                                                                                                
MR. GAMBLE replied no.                                                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI asked if he knew what it was worth.                                                                        
                                                                                                                                
MR. GAMBLE answered no.                                                                                                         
                                                                                                                                
5:21:59 PM                                                                                                                    
CURTIS  MCQUEEN, Corporate  Affairs, Eklutna  Inc., supported  SB
130 and added that this is  a 30-year plus wound for Eklutna Inc.                                                               
and  the Native  Village of  Eklutna.  They both  serve the  same                                                               
clients and  work very close  together. Eklutna Inc. is  the for-                                                               
profit corporation  and the Village  is the  federally recognized                                                               
tribe. "Elutnoi"  means the river  that runs between and  the two                                                               
knobs on  either side  of the  river are what  Eklutna is  to the                                                               
people. To  have them continue  to be  mined down to  flat ground                                                               
goes to the core of their  identity. With Mr. Gamble's arrival to                                                               
the Railroad,  it was recognized  as a long-term issue  and other                                                               
mutually favorable  long-term issues  were found that  they could                                                               
work together on in terms of land trades.                                                                                       
                                                                                                                                
5:23:58 PM                                                                                                                    
JIM ARNESEN,  Land Manager,  Eklutna, Inc.,  said one  thing that                                                               
has  been left  out so  far is  the tie-in  to the  Alaska Native                                                               
Claims Settlement  Act (ANSCA) and  the Alaska  National Interest                                                               
Lands  Conservation  Act  (ANILCA). The  Railroad  had  temporary                                                               
rights  to  this property  which  would  self-extinguish when  it                                                               
could no longer  use the property. ANILCA didn't  deal with every                                                               
land  issue  and this  property  was  envisioned  to go  back  to                                                               
Eklutna over 30 years ago in ANSCA.                                                                                             
                                                                                                                                
5:25:28 PM                                                                                                                    
DANIEL  ALEX, Tribal  Administrator, Native  Village of  Eklutna,                                                               
supported  Mr. McQueen's  comments  that only  temporary use  was                                                               
granted.  Section 3  of the  ANSCA  said that  Eklutna, Inc.  was                                                               
entitled  to  the property.    He  mentioned that  Eklutna,  Inc.                                                               
signed an  MOU with the  ARRC saying  it could use  the materials                                                               
that  were   already  quarried  and   that  the   Railroad  would                                                               
restructure the landscape once it was done.                                                                                     
                                                                                                                                
5:27:25 PM                                                                                                                    
CHAIR HUGGINS asked if anyone objects to this transaction.                                                                      
                                                                                                                                
MR. ALEX replied  that the Council speaks for  the Native Village                                                               
of Eklutna and it supports the MOU.                                                                                             
                                                                                                                                
CHAIR HUGGINS  asked who signed  the MOU dated January  22, 2007.                                                               
He saw the signatures of Mr. Gamble and Mr. Alex.                                                                               
                                                                                                                                
MR. ALEX responded  that the MOU dates back before  he became the                                                               
tribal  administrator.  He  thought Jerry  [indisc.]  was  deputy                                                               
executive officer. The MOU went back a couple of years.                                                                         
                                                                                                                                
CHAIR HUGGINS asked if he was talking about the 1982 version.                                                                   
                                                                                                                                
MR. ALEX replied [indisc.].                                                                                                     
                                                                                                                                
5:29:39 PM                                                                                                                    
MR.  MCQUEEN clarified  that for  the last  2.5 years  the Native                                                               
Village of  Eklutna and the  ARRC have  had a MOU  that contained                                                               
certain  dates. As  those  dates  have come  up,  they have  been                                                               
reaffirmed by signing  amendments to continue the  MOU. This goes                                                               
back quite a long way.                                                                                                          
                                                                                                                                
5:30:27 PM                                                                                                                    
CHAIR  HUGGINS asked  if there  were  other aspects  to the  land                                                               
transfer agreement the legislature should be aware of.                                                                          
                                                                                                                                
MR.  MCQUEEN replied  that there  are some  conditions have  been                                                               
worked out with the ARRC  regarding blasting overhangs that might                                                               
be dangerous - including a schedule  and times of days and nights                                                               
they need to  be respectful of. However, they all  agree that the                                                               
sooner they  can get in and  get that stock pile  off the ground,                                                               
the better.  They have requested  that this summer season  be the                                                               
one they do it in.                                                                                                              
                                                                                                                                
CHAIR HUGGINS asked  Mr. Gamble if the Railroad  could meet those                                                               
cleanup obligations. He indicated yes.                                                                                          
                                                                                                                                
5:31:53 PM                                                                                                                    
BONNE' WOLSTAD, Fairbanks, said she  was glad the ARRC recognized                                                               
the ownership issues and was working to solve them.                                                                             
                                                                                                                                
SENATOR  STEDMAN commended  the  Railroad on  taking a  proactive                                                               
direction in  settling this issue  and setting a good  example in                                                               
how to resolve  other similar situations. He  is comfortable with                                                               
the settlement, but he would have liked to see an appraisal.                                                                    
                                                                                                                                
5:34:06 PM                                                                                                                    
He asked if  there is a Railroad right-of-way that  goes into the                                                               
quarry site that isn't referenced on the aerial survey.                                                                         
                                                                                                                                
MR. GAMBLE replied  that the right-of-way is the  spur line going                                                               
into the  quarry and that would  be part of the  cleanup. As they                                                               
bring the material out it is  their intention to pull the rail up                                                               
and return the right-of-way strip to  its natural look as much as                                                               
possible. So, the main line which  is a couple hundred yards down                                                               
from that spur will then bypass the entire piece of property.                                                                   
                                                                                                                                
5:35:05 PM                                                                                                                    
SENATOR WIELECHOWSKI asked since this  is a cultural and historic                                                               
site, is it fair to say the  Eklutna Village has no plans to mine                                                               
or develop the property.                                                                                                        
                                                                                                                                
MR. MCQUEEN  replied that  is correct; they  are working  to keep                                                               
that area in its pristine  natural state. Eklutna, Inc. has other                                                               
lands  outside of  this area  that may  potentially be  mine-able                                                               
rock, but do  not have cultural significance and do  not have the                                                               
ties to the Eklutna River that these two knobs have.                                                                            
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if  any municipalities  in the  area                                                               
have weighed in either in support of or opposed to this plan.                                                                   
                                                                                                                                
MR. MCQUEEN  replied that they  have had tremendous  support from                                                               
Mayor Begich and the NALA has a resolution in favor of it.                                                                      
                                                                                                                                
5:37:12 PM                                                                                                                    
SENATOR WIELECHOWSKI asked if the  planning and zoning department                                                               
had granted a conditional use permit.                                                                                           
                                                                                                                                
MR. MCQUEEN  replied that a  conditional permit has  been granted                                                               
recently to remove the remaining rock, but for nothing else.                                                                    
                                                                                                                                
5:37:49 PM                                                                                                                    
SENATOR STEVENS asked  who gave the quarry to  the Railroad after                                                               
the Army was done with it.                                                                                                      
                                                                                                                                
MR. GAMBLE  replied the BIA closed  the school and moved  it; the                                                               
land that  had been retained for  the school grounds went  up for                                                               
grabs. The  ARRC said it  wanted the  quarry and in  the original                                                               
document review, a letter was  found between the Railroad and the                                                               
BIA in  which the  BIA asked  a couple  of questions,  those were                                                               
answered,  and  very  simply  the land  was  transferred  to  the                                                               
Railroad.                                                                                                                       
                                                                                                                                
SENATOR STEVENS said he thought this was the right thing to do.                                                                 
                                                                                                                                
5:39:33 PM                                                                                                                    
MR. GAMBLE  added that  the federal  government also  removed its                                                               
objection  when  it saw  the  progress  that  had been  made  and                                                               
reviewed the signed documents going forward to a resolution.                                                                    
                                                                                                                                
CHAIR HUGGINS asked Mr. Alex if he supported the land transfer.                                                                 
                                                                                                                                
MR. ALEX replied yes.                                                                                                           
                                                                                                                                
SENATOR  STEDMAN  moved  to  pass  SB  103  from  committee  with                                                               
individual recommendations.  There were no objections  and it was                                                               
so ordered.  There being no  further business to come  before the                                                               
committee, Chair Huggins adjourned the meeting at 5:40:43 PM.                                                                 

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