Legislature(2003 - 2004)

03/11/2003 02:13 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
       HCR 2-EXTEND RAILROAD TO FT. GREELY/DELTA JUNCTION                                                                   
                                                                                                                                
FATHER TOM MOFFATT, staff to  Representative Bob Lynn, sponsor of                                                               
HCR 2,  explained HCR 2 is  a resolution in support  of extending                                                               
the Alaska  Railroad for approximately  70 miles from  North Pole                                                               
to the  new missile defense site  at Fort Greeley. HCR  2 was co-                                                               
sponsored by 25 House members.  Member packets contain letters of                                                               
support  from  General  Pat  Gamble,   President  of  the  Alaska                                                               
Railroad  Corporation  (ARRC);  General  Craig  Campbell,  Alaska                                                               
Adjutant General; Debbie Joslin,  national committee woman of the                                                               
majority  party;  and  former Representative  Jeanette  James  of                                                               
North  Pole. HCR  2 passed  the House  with a  37 to  1 vote.  An                                                               
extension of  the railroad  would help  support and  maintain the                                                               
missile site, which is critical  to national homeland defense and                                                               
homeland security  in Alaska. The  railroad extension  would also                                                               
help support  the mining industry and  agricultural operations in                                                               
the area  and increase  economic development  from North  Pole to                                                               
Delta Junction. It also puts  the Alaska railroad 70 miles closer                                                               
to a connection with the  Canadian railway system for an eventual                                                               
extension to the Lower 48.                                                                                                      
                                                                                                                                
FATHER  MOFFATT   said  because  HCR   2  is  a   resolution,  no                                                               
appropriations   are   required   by   its   passage,   nor   are                                                               
environmental studies. HCR 2 does,  however, put the Twenty-third                                                               
Alaska  State Legislature  on  record in  support  of a  railroad                                                               
extension. He pointed  out that Governor Murkowski  set forth the                                                               
rail extension  as one  of his  goals in his  state of  the state                                                               
address on January 23.                                                                                                          
                                                                                                                                
MS. WENDY  LINDSKOOG, Director of External  Affairs, ARRC, stated                                                               
support for  HCR 2 in  its initial form  and for the  most recent                                                               
committee substitute  (CS), which expands  the scope in  terms of                                                               
the different  types of revenue  available to support  a railroad                                                               
extension:   military  activities,   resource  development,   and                                                               
agriculture.                                                                                                                    
                                                                                                                                
CHAIR  COWDERY  asked  if other  legislation  was  introduced  to                                                               
address right-of-way issues.                                                                                                    
                                                                                                                                
MS. LINDSKOOG said it has.                                                                                                      
                                                                                                                                
SENATOR OLSON  asked for  a description  of the  current industry                                                               
standards for  a railroad right-of-way  and what it would  be for                                                               
the extension.                                                                                                                  
                                                                                                                                
MR.  PAT GAMBLE,  Executive Director  of  ARRC, informed  members                                                               
that the  industry standards  are not  the measurement  that ARRC                                                               
wants  to  use. It  wants  to  use  the  standard that  has  been                                                               
successful  for the  Alaska railroad,  which is  a 200-foot,  fee                                                               
simple  right-of-way  plus  additional  lands  that  provide  for                                                               
quarries and maintenance areas.  He said this particular corridor                                                               
is one  quarter of the distance  to the Canadian border  so it is                                                               
being  considered  as  an Alaskan  transportation,  utility,  and                                                               
communication corridor,  as well  as a railroad  right-of-way. He                                                               
commented, "The determination  of the width of  that corridor has                                                               
to be  generous enough  to serve several  masters here."  He said                                                               
several discussions  have taken place on  this subject, including                                                               
a discussion  on innovative ways  to divide the corridor  so that                                                               
the  railroad   right-of-way  would  be  within   a  wider  state                                                               
corridor.  He noted  that Alaska's  standard 200-foot  fee simple                                                               
right-of-way has served  the railroad well because  it allows for                                                               
future expansion  to build  tracks and to  make sure  that access                                                               
across  rights-of-way is  done with  proper  attention to  safety                                                               
issues.                                                                                                                         
                                                                                                                                
SENATOR  OLSON said  his understanding  is  that the  anticipated                                                               
right-of-way for  a major  portion of the  corridor is  200 feet,                                                               
but there will be a  combination right-of-way for other portions.                                                               
He asked how wide the combination right-of-way would be.                                                                        
                                                                                                                                
MR. GAMBLE said he has heard a  width range from 200 feet to one-                                                               
quarter  mile. However,  500  feet  is the  number  that is  most                                                               
frequently used for the corridor  itself. He said he believes the                                                               
width of the corridor will be  controlled, to some degree, by the                                                               
terrain.                                                                                                                        
                                                                                                                                
SENATOR OLSON noted that one-quarter mile is 1,300 feet wide.                                                                   
                                                                                                                                
MR. GAMBLE  said ARRC is not  saying it needs a  one-quarter mile                                                               
corridor. The  need for the  corridor itself  is a state  need to                                                               
accommodate transportation,  a pipeline,  fiber optic  cable, and                                                               
underground communication systems.                                                                                              
                                                                                                                                
SENATOR OLSON  asked whether  the impacted  communities commented                                                               
and what  their positions  are. He  pointed out  he didn't  see a                                                               
letter of support from Delta Junction.                                                                                          
                                                                                                                                
MR. GAMBLE said  ARRC has received no correspondence  from any of                                                               
the impacted communities.                                                                                                       
                                                                                                                                
SENATOR OLSON asked Father Moffatt to address that question.                                                                    
                                                                                                                                
FATHER  MOFFATT told  members that  Representative Lynn's  office                                                               
has  had contact  with those  communities through  Representative                                                               
Harris,  who represents  the impacted  communities.  He said  the                                                               
communities support  the proposal, although they  have not stated                                                               
their positions in writing.                                                                                                     
                                                                                                                                
SENATOR OLSON asked if the  military submitted a written position                                                               
on SCS CSHCR 2(CRA).                                                                                                            
                                                                                                                                
FATHER MOFFATT said that Adjutant  General Campbell has testified                                                               
in support of the resolution at all previous committee hearings.                                                                
                                                                                                                                
SENATOR OLSON noted Adjutant General  Campbell is affiliated with                                                               
a state  department, not the  federal government. He said  he was                                                               
looking for  a letter from the  person in charge of  the military                                                               
bases.                                                                                                                          
                                                                                                                                
FATHER MOFFATT said Representative Lynn  has been in contact with                                                               
the  cantonment commander  who indicated  the extension  would be                                                               
beneficial,  but that  commander  is a  field  grade officer.  He                                                               
pointed  out  that   by  the  time  the   railroad  extension  is                                                               
completed, the  heavy construction of  the missile site  would be                                                               
completed. The Department  of Defense has no  objection and would                                                               
not normally lobby for such things.                                                                                             
                                                                                                                                
CHAIR COWDERY  pointed out this  is a resolution to  show unified                                                               
support of a railroad extension so it is conceptual.                                                                            
                                                                                                                                
SENATOR  OLSON  said  he  wondered  why  the  committee  has  not                                                               
received any documentation in support  of the resolution from the                                                               
entities that will be impacted.                                                                                                 
                                                                                                                                
CHAIR COWDERY said  that documentation would come  forward with a                                                               
railroad bill.                                                                                                                  
                                                                                                                                
SENATOR OLSON stated,  "I find it interesting that  it comes from                                                               
a representative that doesn't necessarily represent that area."                                                                 
                                                                                                                                
FATHER MOFFATT pointed out that  Representative Lynn has a strong                                                               
military background  and is the  chair of the House  Committee on                                                               
Military and Veterans Affairs.                                                                                                  
                                                                                                                                
CHAIR  COWDERY  said  that  although the  voters  of  a  specific                                                               
district elect legislators, they represent the entire state.                                                                    
                                                                                                                                
2:30 p.m.                                                                                                                     
                                                                                                                                
SENATOR OLSON  said the railroad  has operated "in the  black" in                                                               
the  past and  he wondered  how this  extension might  impact the                                                               
railroad operations in general in regard to profitability.                                                                      
                                                                                                                                
MR. GAMBLE said  that question is uppermost on  ARRC's mind. ARRC                                                               
does not  have all of the  answers it needs from  the military to                                                               
determine what level  of support would be  required. For example,                                                               
would  mail support  for contractors  and the  National Guard  be                                                               
necessary? Other  supports have not  been considered yet  and may                                                               
provide additional revenue opportunities  for the railroad to pay                                                               
for the  operations and maintenance  of the line. He  pointed out                                                               
the capital  costs are extensive. He  added that he is  not aware                                                               
of  the  costs associated  with  building  the military  base  or                                                               
expanding  existing bases  and believes  those subjects  are ripe                                                               
for further discussion and analysis.                                                                                            
                                                                                                                                
CHAIR COWDERY took public testimony.                                                                                            
                                                                                                                                
MR. JAMES  SNYDER told  members he has  watched booms,  busts and                                                               
boondoggles as a  Fairbanks resident since 1959  and he considers                                                               
the railroad  extension to be  a boondoggle. He does  not believe                                                               
any railroad  has run in the  black in North America  since 1950.                                                               
He  said a  railroad extension  through Canada  would affect  the                                                               
trucking and  barge industries in  Alaska. He believes  the state                                                               
should  not compete  with private  industry,  which has  invested                                                               
millions in this  state. He said the U. S.  Department of Defense                                                               
should build the rail extension if it wants one.                                                                                
                                                                                                                                
CHAIR COWDERY  pointed out this  legislation is a  resolution and                                                               
has no  cost associated with  it. He then announced  that Senator                                                               
Wagoner joined the committee some time ago.                                                                                     
                                                                                                                                
SENATOR  WAGONER  moved  SCS CSHCR  2(CRA)  from  committee  with                                                               
individual   recommendations.  Without   objection,  the   motion                                                               
carried.                                                                                                                        

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