Legislature(1995 - 1996)

01/30/1995 05:03 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              HOUSE SPECIAL COMMITTEE ON FISHERIES                             
                        January 30, 1995                                       
                           5:00 p.m.                                           
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Alan Austerman, Chairman                                       
 Representative Carl Moses, Vice Chair                                         
 Representative Gary Davis                                                     
 Representative Scott Ogan                                                     
 Representative Kim Elton                                                      
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 None                                                                          
                                                                               
 OTHER LEGISLATORS PRESENT                                                     
                                                                               
 None                                                                          
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 Department of Fish and Game Overview (including national and                  
 international issues)                                                         
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 FRANK RUE, ACTING COMMISSIONER                                                
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-4100                                                              
 POSITION STATEMENT:  Participated in the Alaska Department of                 
  Fish & Game (ADF&G) Overview                                             
                                                                               
 JEFF KOENIGS, DIRECTOR                                                        
 Commercial Fisheries Management and Development Division                      
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-4210                                                              
 POSITION STATEMENT:  Participated in the ADF&G Overview                       
                                                                               
 ELLEN FRITTS, ACTING DIRECTOR                                                 
 Division of Habitat and Restoration                                           
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-4105                                                              
 POSITION STATEMENT:  Participated in the ADF&G Overview                       
                                                                               
 ROB BOSWORTH, DIRECTOR                                                        
 Division of Subsistence                                                       
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-4147                                                              
 POSITION STATEMENT:  Participated in the ADF&G Overview                       
                                                                               
 GORDON KRUSE, MARINE FISHERIES SCIENTIST                                      
 Commercial Fisheries Management and Development Division                      
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-6106                                                              
 POSITION STATEMENT:  Participated in the ADF&G Overview                       
                                                                               
 DAVE BENTON, ACTING DEPUTY COMMISSIONER                                       
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-4100                                                              
 POSITION STATEMENT:  Participated in the ADF&G Overview                       
                                                                               
 DOUGLAS EGGERS, CHIEF FISHERIES SCIENTIST                                     
 Commercial Fisheries Management and Development Division                      
 Alaska Department of Fish & Game                                              
 P.O. Box 25526                                                                
 Juneau, AK  99802                                                             
 Phone:  465-4210                                                              
 POSITION STATEMENT:  Participated in the ADF&G Overview                       
                                                                               
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 95-3, SIDE A                                                             
 Number 000                                                                    
                                                                               
 CHAIRMAN ALAN AUSTERMAN called the meeting to order at 5:03 p.m.              
 He noted for the record that Representatives Ogan, Davis, Elton and           
 Moses were present and that a quorum was present.                             
                                                                               
 Number 045                                                                    
                                                                               
 FRANK RUE, ACTING COMMISSIONER, ALASKA DEPARTMENT OF FISH AND GAME            
 (ADF&G) began by asking if the committee would like the sport fish            
 division's presentation on February 22, 1995, as already scheduled            
 or included this evening.                                                     
                                                                               
 CHAIRMAN AUSTERMAN suggested that the sport fish division wait.               
                                                                               
 MR. RUE began saying, "Whenever I come before a legislative                   
 committee, I like to remind people and I like to remind myself,               
 that Fish and Game is about people and people using resources and             
 people depending on the resources.  Our job is basically to ensure            
 that we manage, protect, maintain and improve basic resources, fish           
 and wildlife resources that people depend on in this state.  That             
 is our job.  We can't forget the user.  What we do is fairly                  
 simple:  We count them."                                                      
                                                                               
 MR. RUE continued, "The subsistence division spends a lot of time             
 figuring out who is using what, where, when.  Once the boards have            
 set the seasons, bag limits, we then manage the resource, making              
 sure that we achieve our goals of escapement, for instance.  We               
 follow the management plans that were established and we don't                
 overharvest the resource."  He then added maintaining habitat is              
 another big part of what the department does.                                 
                                                                               
 Number 105                                                                    
                                                                               
 MR. RUE pointed out, "We've gone from nine to six divisions in our            
 budget discipline attempts here in the last few years.  We've been            
 trying to be more efficient, more streamlined.  We are a                      
 decentralized department, we have a lot of area offices.  We think            
 that gives us good access to people, good access to resource                  
 information and leads to better management."                                  
                                                                               
 MR. RUE emphasized, "We all take it for granted that we have got              
 fisheries management going on out there and we've done a good job             
 when we have a record salmon harvest.  Well, it takes people to do            
 that.  It takes an effort to do that and we sometimes forget about            
 things that are working well.  So that's going to be a challenge.             
 To keep doing things well with a declining budget.  Then we've got            
 some issues that are going make out lives more complex: ESA                   
 (Endangered Species Act) and the problems they're having in the               
 Northwest with their salmon are going to hit us; the Pacific Salmon           
 Treaty problems are all going to make our life more difficult.  The           
 other thing is:  We've got more and more people coming into the               
 state and wanting to use the resource in the face, of declining               
 budgets.  The issues aren't getting simpler.  Finally, there are              
 some opportunities.  I think Fish and Game provides some great                
 opportunities for new economic development.  Sea urchins is one               
 example I've used.  Some of the rural fisheries opportunities, I              
 think, we ought to be looking to expand our economic base.  Better            
 information on something like the Bering Sea crab will allow us to            
 realize a return in that fishery where we've had to shut it down              
 because of lack of information.  So, I think Fish and Game can                
 provide a lot of benefits to people in this state.  Those are the             
 types of opportunities that I'll be looking for us to capitalize on           
 in the future."                                                               
                                                                               
 Number 157                                                                    
                                                                               
 CHAIRMAN AUSTERMAN asked if there is a shortage of research                   
 biologists as he had heard.                                                   
                                                                               
 MR. FRANK RUE said, "Generally, we have not tried to reduce                   
 research biologists in saving general fund dollars.  The main                 
 emphasis has been in switching hatcheries from state operation to             
 the private sector and letting cost recovery manage that."                    
                                                                               
 JEFF KOENIGS, DIRECTOR, COMMERCIAL FISHERIES MANAGEMENT &                     
 DEVELOPMENT DIVISION, ADF&G, indicated that in the recent merging             
 of the FRED division with the commercial fisheries division,                  
 research was prioritized and gave examples.                                   
                                                                               
 Number 216                                                                    
                                                                               
 CHAIRMAN AUSTERMAN said, "My understanding is that we have one                
 research biologist in Kodiak to handle the scallop industry down              
 there and yet he doesn't have a travel budget to work with.  So               
 it's kind of hard for him to try to figure out what actually is               
 going on out there."                                                          
                                                                               
 MR. KOENIGS replied, "The scallop program is a new program and                
 we've made programmatic changes for this next budget year that                
 boost the abilities of the research biologists to process                     
 information that comes in from the observer program, and by that              
 information, help to redesign and help our management program.  But           
 there will be help in the scallop program this next fiscal year to            
 make sure that data does get compilated, analyzed, synthesized, and           
 then reported."                                                               
                                                                               
 Number 244                                                                    
                                                                               
 ELLEN FRITTS, ACTING DIRECTOR, DIVISION OF HABITAT AND RESTORATION,           
 ADF&G, described the goals of the division as "to protect, maintain           
 and enhance the fish, game and aquatic plant resources of Alaska;             
 ensure that Alaska's renewable fish and wildlife resources and                
 their habitats are conserved and managed on the sustained yield               
 principle; ensure that the use and development of these resources             
 are in the best interest of the economy and well-being of the                 
 state; and, to assess injuries and to restore, replace, enhance or            
 acquire the equivalent of the natural resources that were damaged             
 in the Exxon Valdez spill."                                                   
                                                                               
 MS. FRITTS continued saying, "On a day to day basis, the division's           
 primary goal is to work up front with project proponents to find              
 practical, cost effective and fair solutions:  Project and land use           
 planning solutions," and then described the tasks and duties of the           
 different sections.                                                           
                                                                               
 MS. FRITTS added, "The habitat and restoration division serves as             
 the department's point of contact and coordinating body for land              
 management and related permitting issues.  The division assembles             
 issues, specific information, and management recommendations from             
 the other divisions of ADF&G and synthesizes these points into the            
 department's overall position.  Industry, agencies, and the public            
 are in broad agreement that providing this single point of contact            
 and a unified voice from ADF&G is a critical role that we perform."           
                                                                               
 MS. FRITTS pointed out that the Title 16 permit review workload has           
 increased by 40 percent, with 20 percent cuts in general fund                 
 dollars, since FY 90.  She also voiced concern over meeting legal             
 obligations under the Forest Practices Act as this has increased              
 the workload from 119 to nearly 4,000 variance requests from 1990             
 to 1993.                                                                      
                                                                               
 MS. FRITTS then talked about the Kenai River habitat saying,                  
 "Forty-one percent of the land along the river is currently                   
 privately owned and 50 percent has been developed to date.  This is           
 the fastest growing area of the state.  Unfortunately, it looks               
 like the Kenai River is being threatened by land use changes in               
 that drainage.  Studies indicate that as of 1993, twelve percent of           
 the essential stream bank rearing habitat has been degraded or lost           
 by shoreline development and bank fishing, primarily for sockeyes.            
 Water quality studies have shown that aquatic insects, fish food,             
 have disappeared below storm drain outflows in the Soldotna area.             
 Extensive logging is proposed on steep slopes in the upper Kenai              
 River watershed and without land use changes, it looks like                   
 proportionately greater habitat losses and losses in fish                     
 production could occur in the future,"  and added the Kenai Borough           
 Assembly is presently working on zoning ordinances for the river,             
 and the division, also, is taking "steps to reverse this loss".               
                                                                               
 REPRESENTATIVE SCOTT OGAN asked Ms. Fritts to elaborate on "state             
 of the art mitigation technics."                                              
                                                                               
 MS. FRITTS said, "One of the successes that the department and the            
 division is very proud of is the fact that with regard to North               
 Slope oil development and the gravel mining that occurs there,                
 we've been able to use funding from industry to study some of the             
 pits that are created and learn how to best restore them.  Now we             
 have excellent examples, even manuals, that talk about how to do              
 that."                                                                        
                                                                               
 MR. RUE interjected, "Fort Knox might be another good example where           
 basically they're going to recreate a whole wetlands complex from             
 an old placer mine stream which will serve not only as an overflow            
 safety valve for them, if they have an upset in their process, it             
 also creates a terrific habitat and will probably end up as a park            
 when they're done.  It benefits the company, it benefits the                  
 habitat and fish and wildlife and people."                                    
                                                                               
 Number 455                                                                    
                                                                               
 REPRESENTATIVE OGAN asked about having a quick permitting process             
 for Title 16 permits.                                                         
                                                                               
 MS. FRITTS continued, "If it takes a certain amount of days to                
 crank out a permit right now and we invest a certain amount of time           
 working with the applicant, looking at what they plan to do, trying           
 to make it fish and wildlife friendly -- If we keeping losing staff           
 and the number of permits keeps going up, the amount of time that             
 we're able to invest per permit will go down and that means that we           
 aren't going to be able to spend the time with the applicant."                
                                                                               
 REPRESENTATIVE OGAN asked what a Title 16 permit is.                          
                                                                               
 MS. FRITTS replied that Title 16 permits are issued under AS 16.870           
 for any kind of activity within the "bed or banks of streams used             
 by anadromous fish."                                                          
                                                                               
 Number 463                                                                    
                                                                               
 REPRESENTATIVE KIM ELTON said, "As budgets go down, the pinch gets            
 felt," and suggested that budget cuts may result in delays to                 
 economic development.  He voiced surprise in the increase in the              
 numbers of Forest Practices Act variances.                                    
                                                                               
 REPRESENTATIVE GARY DAVIS asked about the purpose of federal funds            
 recently received by the division for the Kenai River habitat.                
                                                                               
 MS. FRITTS described an outline of a Kenai River workplan.                    
                                                                               
 REPRESENTATIVE DAVIS asked if NMFS (National Marine Fisheries                 
 Service) would be administering this project.                                 
                                                                               
 Number 496                                                                    
                                                                               
 MR. RUE interjected, "Once the Borough and the department have                
 gotten together a list of projects, that's what will trigger NMFS             
 handing the money over."                                                      
                                                                               
 ROB BOSWORTH, DIRECTOR, SUBSISTENCE DIVISION, ADF&G, said, "For the           
 most part our focus is on research.  We try to look at the who,               
 what, when, where of subsistence - information that is needed in a            
 variety of forms," and added, "Rural residents of Alaska harvest              
 about 375 pounds of wild food per person per year on the average.             
 This amount of course is higher for communities off the road                  
 system."  He indicated that 60 percent of this subsistence harvest            
 is in fish and mostly salmon which statewide totals 26 million                
 pounds in fish for rural areas and 6 million pounds of fish for               
 urban residents.                                                              
                                                                               
 MR. BOSWORTH explained how subsistence research is obtained by the            
 subsistence division although in some instances data is obtained by           
 the division of commercial fisheries management and development               
 division.  He said, "Most subsistence fisheries are in-river                  
 fisheries and accurate assessment of subsistence harvest can be               
 vital for stock assessment.  In some cases subsistence information            
 provides the only reliable stock assessment index."                           
                                                                               
 Number 580                                                                    
                                                                               
 CHAIRMAN AUSTERMAN asked if subsistence has a higher priority in              
 allocation of game or fish.                                                   
                                                                               
 MR. RUE indicated that the Board of Fish and the Board of Game do             
 the actually allocation, but follow standards set in the statutes.            
                                                                               
 MR. KOENINGS began his overview saying, "The division is                      
 responsible for the sustained yield management of the state's                 
 commercial, subsistence and personal use fisheries; the development           
 of new fisheries; and the programmatic support for the state's                
 private-sector mariculture and salmon ranching industries.  The               
 division also plays a major role in the management of fisheries in            
 the federal 200-mile EEZ (Exclusive Economic Zone), in several                
 international treaty negotiations; and, more recently, in                     
 addressing concerns over federal legislation affecting Alaska's               
 fisheries, the ESA."  He then gave locations of the four regional             
 offices and shrinking budget figures.                                         
                                                                               
 MR. KOENIGS continued, "The direct and indirect economic benefit of           
 the commercial fishing industry is of major importance to the                 
 entire state.  For example, the seafood industry is the state's               
 largest private employer both in terms of income and employment               
 with roughly 33,000 to 36,000 jobs.  The seafood harvesters are               
 small businessmen that account for 8,000 to 12,000 full-time job              
 equivalents.  Seventy-seven percent of these commercial fishing               
 permit holders are Alaskan residents."                                        
                                                                               
 Number 649                                                                    
                                                                               
 MR. KOENIGS spoke on subsistence saying, "The cultural and economic           
 value of the subsistence fishery is even harder to quantify, in               
 direct economic terms, than the commercial fishery.  To many it is            
 beyond value, and that is understandable.  Recently, subsistence              
 fishers have repeatedly told me that their subsistence lifestyle,             
 a combination of fishing, hunting, berry picking, etc., is fueled             
 to varying degrees, by their incomes from commercial fishing.  My             
 point being that there is absolute value and real benefits in                 
 having strong, well managed runs of fish so that both the                     
 subsistence uses and commercial users are provided for."                      
                                                                               
 MR. KOENIGS continued, "Overall the state's fisheries resources               
 appear to be vibrant and healthy, although problem areas do exist             
 especially in Western and Interior Alaska.  Last year, the                    
 commercial harvest of 196 million salmon was an all time record.              
 Yet, because of competition from high quality foreign farmed                  
 salmon, prices are down and the economic value is declining.  The             
 department is responding by managing within biological constraints,           
 so fishermen and processors can achieve the best product quality              
 and thus higher economic value.  Examples for 1994 include the                
 harvest management of enhanced and wild pink salmon in Prince                 
 William Sound, chum salmon in the Kuskokwim River, the herring                
 fishery in the Togiak district, and pink salmon in Norton Sound.              
 In developing new fisheries, the division has pioneered new                   
 cooperative efforts with private industry to assess the health of             
 the sea urchin population in the Ketchikan area prior to a                    
 commercial fishery.  The project provides for close cooperation               
 between local divers and processors and is funded entirely by                 
 private dollars and by the sea urchin resource itself, and not by             
 the general fund.  If successful, the fishery could be worth $30              
 million annually to Southeast fishermen and may become the third              
 largest fishery in state waters.  Reasonable and responsible                  
 development of our renewable fishery resources will lead to                   
 increased number of jobs for Alaskans."                                       
                                                                               
 MR. KOENIGS concluded, "Despite the general abundance of salmon,              
 which are now on the high end of their productive cycle, we do have           
 localized resource problems.  For example, the Chinook salmon in              
 the Mat-Su valley, the chum salmon in the Mat-Su valley, the chum             
 salmon in parts of Western and Interior Alaska, Nushagak River coho           
 salmon in Bristol Bay and perhaps the sockeye salmon of Chilkoot              
 Lake.  Also, the herring populations in Prince William Sound are in           
 horrible shape and are not fishable.  However, the biggest                    
 challenge throughout the state is the management of our shellfish             
 resources.  From Norton Sound in the North to Adak to the south               
 then east to Bristol Bay, Kodiak, Cook Inlet and Prince William               
 Sound, the crab populations are failing.  Some of the most                    
 important crab fisheries are in the Bering Sea where state                    
 involvement in resource assessment, necessary for proper state                
 management, is minimal at best.  This minimal effort needs to                 
 change."                                                                      
                                                                               
 REPRESENTATIVE OGAN said, "It seems to me that the industry doesn't           
 have a good track record of using the resource wisely:  It's almost           
 a rape and run mentality that we've seen in the Lower 48 and maybe            
 in some of the fisheries up here."  He indicated concern about the            
 long term condition of the resource.                                          
                                                                               
 TAPE 95-3, SIDE B                                                             
 Number 000                                                                    
                                                                               
 MR. KOENIGS commented, "I would say in general that our resource              
 assessment programs for our shellfish populations are certainly not           
 up to the par that they are for the salmon populations.  We need to           
 correct that.  So I think that your assessment is correct.  We have           
 at times permitted fishing to go on with limited information.                 
 Perhaps too aggressively, but we're learning from that."                      
                                                                               
 REPRESENTATIVE OGAN asked if the Bering Sea crab harvest is set at            
 a sustainable level.                                                          
                                                                               
 MR. KOENIGS added, "One of the problems we do have in the Bering              
 Sea is our main resource assessment program is a groundfish trawl             
 survey...off crab caught as a bycatch."                                       
                                                                               
 MR. RUE interjected, "On that very point, we've made a proposal to            
 the Governor's Office on a budget neutral switch in funding to                
 allow us, in cooperation with the industry, to do a better                    
 assessment in the Bering Sea.  Because it doesn't increase our                
 general fund budget, I'm hoping it gets a good hearing."                      
                                                                               
 REPRESENTATIVE ELTON asked why the Central Region Office of ADF&G             
 included Prince William Sound, Cook Inlet and Bristol Bay.                    
                                                                               
 MR. KOENIGS described the diversity of the Central Region.                    
                                                                               
 GORDON KRUSE, MARINE FISHERIES SCIENTIST, COMMERCIAL FISHERIES                
 MANAGEMENT AND DEVELOPMENT DIVISION, ADF&G, talked about his duties           
 and the scope of state research and management.  He then presented            
 the state's management strategies and examples of the techniques              
 employed.  He admitted, "We certainly have some stocks that are in            
 poor condition.  We feel that at least part of those problems are             
 attributable to another issue, which is limited stock assessments.            
 Our job is very difficult to provide for sustainable fisheries when           
 we simply don't know the size of the stocks that we're harvesting             
 from.  So one of the things we want to do is try to expand our                
 coverage for surveys in the Bering Sea for stocks that are either             
 not assessed or not assessed well.  An example is the Norton Sound            
 king crab fishery.  It's not a particularly large fishery; however,           
 it's one that is very important to the local community there.                 
 Unfortunately, we have not had stock assessments there now for a              
 number of years and there are indications that the stock is                   
 declining.  It seems to be a very important area for us to consider           
 some stock assessments.  Other places in the Bering Sea for king              
 crabs include around the Pribilof Islands and St. Mathew Island,              
 substantial king crab fisheries.  Now the National Marine Fisheries           
 Service does conduct surveys in the Bering Sea, but because of the            
 nature of their survey, they're not estimating those populations              
 well at all.  So there's a large element of uncertainty as we set             
 our annual catch quotas for those areas."                                     
                                                                               
 MR. KRUSE continued, "Another area which has been a big area in               
 marine fisheries is bycatch.  You can probably expand that to                 
 discards in general.  Some of the large groundfish fisheries are              
 prosecuted by trawl fishing.  They catch not only the fish that               
 they're targeting but a wide range of other species including                 
 smaller fish of the same species that they're trying to catch.                
 This results in a lot of discard.  Some of those discards are                 
 species that the state is extremely concerned about.  Species such            
 as king and chum salmon, herring, and king and tanner crabs for               
 example.  We've been very active as a state with the North Pacific            
 Fisheries Management Council, to put limits, or bycatch caps, for             
 those species of interest, in the groundfish fisheries, as well as            
 providing for closures in areas that are particularly vulnerable              
 because of concentrations of herring or crabs."                               
                                                                               
 MR. KRUSE concluded, "Within the federal management arena.  There             
 are a number of significant changes occurring in fisheries                    
 management.  These include things such as moratoria on new                    
 participants in fisheries such as for halibut and sablefish, as               
 well as things called IFQs (Individual Fishing Quotas).  Also                 
 changes in their observer programs.  Some of these issues have                
 implications in that basically the federal actions that are                   
 occurring pertain from fisheries from 3 to 200 miles.  They do not            
 apply to state waters.  This poses some difficulty in terms of                
 managing resources within 0 to 3 miles that our agency is going to            
 need to be facing, a lot of policy type decisions.  Many of the               
 species that we're managing don't adhere to a three mile boundary,            
 so they're migrating in between the two and as a result, there's a            
 number of issues that need to be resolved.  Some of these pose                
 problems in terms of creating management difficulties where we                
 haven't had a management program and on the other hand some of                
 these pose opportunities."                                                    
                                                                               
 Number 375                                                                    
                                                                               
 DAVE BENTON, ACTING DEPUTY COMMISSIONER, ADF&G, testified, "I've              
 worked at the North Pacific Fishery Management Council (NPFMC) now            
 for any number of years and we've, the department, have focused               
 there on two major suites of issues.  One is resource conservation            
 issues the other is economic development issues for the state of              
 Alaska."  He then addressed Representative Ogan's concerns about              
 the track record of fisheries in other areas of this country,                 
 saying, "Probably the area where the greatest level of bycatch and            
 waste and discards occur is in the groundfish fisheries off of our            
 coast.  The fisheries off of Alaska in the 200 mile zone represent            
 roughly half of the nation's total fishery resources and harvests             
 and a little less than half of the value.  Out of that, the                   
 offshore fisheries throw away about 750 million pounds a year.  At            
 least in 1993 that's what they threw away of the target species               
 that they were supposedly harvesting.  This isn't species that are            
 bycatch like halibut, crab, herring and salmon that they're                   
 supposed to throw back as prohibitive species.  These are target              
 species that are harvested and discarded for some reason; economic            
 reasons, sometimes it's a regulatory reason.  But these are fish              
 that really ought to go into making food products or some product             
 as a harvested resource.  Instead they're discarded.  They're not             
 utilized.  This has been a real concern to the state.  We're                  
 pushing at the council and back in Washington, D.C. for actions to            
 require these people, when they harvest those resources to retain             
 and utilize them.  With regard to other bycatches, as Gordon                  
 summarized, the state has been pushing to deal with crab bycatch,             
 herring bycatch, salmon bycatch, by seeking either closures, caps,            
 or other kinds of regulatory measures that we can use to protect              
 those resources."                                                             
                                                                               
 MR. BENTON described the difficulty in the NPFMC board process and            
 added, "The council can only recommend measures to conserve                   
 resources or regulate the fisheries and those recommendations then            
 have to be approved by the secretary and the secretary's                      
 representative has the vote on the council.  It makes for a very              
 interesting dynamic as to whether or not you can effectively first,           
 transmit a message to the secretary and hopefully that message is             
 received and acted upon.  With the secretary's representative                 
 sitting there, it's sometimes a very interesting proposition                  
 because he controls most of the analysis, most of the data flow,              
 most of the assessment information, and all of the economic cost              
 and benefit analysis that all have to go into making a decision.              
 And when they have that kind of control, it's very difficult for              
 the state of Alaska or Alaska's representatives on the council to             
 get those conservation measures passed an unwilling federal                   
 bureaucracy and passed an industry that very often does not want to           
 address those problems."  He then described the development of the            
 trawler fleet as beginning when the foreign fleet was moved past              
 the 200 mile zone and the joint ventures were formed often without            
 Alaskan residents.  He pointed out, "As a consequence of that, the            
 industry offshore is dominated by Seattle interests and interests             
 from other parts of the country.  Now Alaskans want to get into the           
 ball game.  We've tried to make opportunities available in a number           
 of ways.  One is the onshore-offshore allocation scheme."  He then            
 said ADF&G is working towards reauthorizing that allocation which             
 expires at the end of this year.                                              
                                                                               
 Number 470                                                                    
                                                                               
 MR. BENTON stated, "What that allocation is 100 percent of the                
 pollock and 90 percent of the cod caught in the Gulf of Alaska, has           
 to be delivered to shore.  And in the Bering Sea, I believe it's,             
 65 percent goes offshore, 35 percent goes onshore.  That's still a            
 very large chunk of fish.  Along with the Bering Sea pollock                  
 allocation, is a pollock CDQ (Community Development Quota)                    
 allocation which is providing about $20 million a year currently to           
 western Alaska communities, little villages all up and down the               
 coast from Nome and Norton Sound on down and around and out the               
 Chain.  That resource is used by these communities to get into                
 joint venture operations, very similar to what happened when the              
 Americanization process with the foreign fleets was going on.  It's           
 resulting in literally thousands of jobs, the start up of many new            
 fisheries business enterprises in those communities and elsewhere             
 and really holds the greatest promise of any regional economic                
 development activity that we've had in a long time.  The state is             
 looking to extend that program beyond 1995 along with the onshore-            
 offshore allocation that will go through to 1999."                            
                                                                               
 MR. BENTON continued, "We are trying to craft a program that will             
 do a couple of things.  One, add CDQs to the list for the other               
 species that might be covered by the licenses.  Two, make sure                
 there's opportunity for small boat fleets to operate out of our               
 local communities all up and down the coast.  Three, insure that              
 whatever kind of program comes about, it protects our onshore-                
 offshore allocation scheme.  So communities like Kodiak, Dutch                
 Harbor, Sitka, wherever, have access to the resources and those               
 resources are not transferred away to Seattle-based interests and             
 migrate away from Alaska."                                                    
                                                                               
 Number 512                                                                    
                                                                               
 MR. BENTON also said, "The other suite of federal issues that I               
 participate in is reauthorization of key pieces of federal                    
 legislation.  Right now that focuses in on the Magnuson Act, which            
 is the Act that set up the 200 mile zone, established the council,            
 that kind of thing.  In the Magnuson Act, starting last year                  
 working closely with Senator Steven's Office, we got some very                
 stringent provisions in the draft to deal with bycatch and                    
 discards.  That bill didn't go anywhere.  It's back on the table              
 now and we expect action on it this year.  The other one's the                
 Endangered Species Act (ESA).  It is going to affect any number of            
 aspects to our lives up here.  In fisheries, it's endangered salmon           
 and the impacts it has on the Pacific Salmon Commission process.              
 And also how the state manages its resources.  The third suite of             
 things I work on are the international fisheries issues.  I just              
 got back from Vancouver for what to me was probably the worst                 
 international negotiation I've ever been involved in in my life.              
 I've never been dealt a worse deck of cards.  That's the Pacific              
 Salmon Commission Treaty process and that's a negotiation between             
 the United States and Canada on salmon management up and down the             
 coast but really is a three way negotiation between ourselves, the            
 southern U.S. and Canada.  All I'll say about that here today is              
 that Alaska stands to lose quite a lot in that Pacific Salmon                 
 Commission process right now in terms of having our fisheries                 
 reduced primarily for Chinook Salmon off Southeast, but also for a            
 number of other fisheries here in Southeast such as sockeye and               
 pink salmon fisheries down near Ketchikan, primarily.  That process           
 is not going well.  A special negotiator's been appointed by the              
 President.  This fellow's name is Jim Pipkin.  His job is to solve            
 the problem.  They don't really care very much who gets stomped in            
 the way of that.  Alaska is being painted as the bad guy by our               
 friends in Washington State and elsewhere.  We're not looking at a            
 very favorable climate right now.  That one's colored by the ESA:             
 determinations on endangered Chinook salmon out of the Snake River.           
 And National Marine Fisheries Service in the South and the federal            
 negotiator have all come at us very hard last week telling us we're           
 going to have to take significant reductions in our Chinook salmon            
 fishery off Southeast Alaska.  Probably 30 to 50 percent."                    
                                                                               
                                                                               
 Number 560                                                                    
                                                                               
 CHAIRMAN AUSTERMAN asked if there were any problems associated with           
 the reauthorization of the onshore-offshore allocation and the CDQ            
 program.                                                                      
                                                                               
 MR. BENTON replied, "If we can maintain the level of presence that            
 the state has had at the council, and that means we have to put in            
 a lot of staff time here in the next several months, I think that             
 onshore-offshore is going to go.  I think we'll get an extension.             
 Along with that will be the pollock CDQ provisions.  The opposition           
 there, of course, is our friends the factory trawlers from                    
 Washington State," and added, "We've got to build the record, which           
 has been the toughest part of this thing, to justify an extension             
 because inshore-offshore was supposed to be an interim measure."              
                                                                               
 MR. BENTON specified, "We're going to need a lot of help from the             
 communities.  We need all the communities up and down the Chain to            
 be in there at the public hearings providing economic and social              
 information that supports the need to continue that allocation,               
 talking about what would happen if that allocation was not there              
 for those communities.  That kind of information is going to be               
 critical when it gets down to the secretary making a decision and             
 justifying that decision.  For example, we'd like to see                      
 resolutions out of councils and boroughs of Kodiak, Dutch Harbor,             
 etc.  We need some detailed economic analysis or at least data -              
 what's the importance to the community, what would happen if it               
 weren't there, what kind of social consequences might occur, that             
 kind of thing."                                                               
                                                                               
 MR. RUE interjected that ADF&G will be working directly the                   
 community representatives.                                                    
                                                                               
 MR. BENTON proceeded, "On the pollock CDQs, I think it's going to             
 go right along with it.  No changes, no increases of allocation or            
 anything.  It's just steady as you go, status quo kind of thing."             
 He further commented, "If we do the license program and that is up            
 for a decision in April, but more likely to occur in June, we will            
 be adding some species under the license program to the suite of              
 CDQ species.   We're going to have to do a little work on                     
 justifying that as well."                                                     
                                                                               
 Number 628                                                                    
                                                                               
 REPRESENTATIVE OGAN asked for translation of several of the                   
 acronyms used by Mr. Benton.                                                  
                                                                               
 MR. BENTON gave a brief explanation of CDQs and IFQs.                         
                                                                               
 REPRESENTATIVE OGAN asked if community input is truly effective in            
 promoting the reestablishment of the onshore-offshore allocations,            
 in light of the fact that there were so many unheeded resolutions             
 against IFQs.                                                                 
                                                                               
 MR. BENTON said, "You're trying to build a record that says, `The             
 social cost and benefits, the economic cost and benefits are very             
 important and could be crucial to some communities in Alaska.  You            
 build that kind of record, it's very helpful in terms of the state            
 trying to get the action through and then defending it once it goes           
 to the secretary.  On the IFQs, the situation there was a little              
 different.  The federal government really wanted IFQs on halibut,             
 on sablefish.  They wanted IFQs on everything.  Just to give you              
 some numbers, excluding halibut and sablefish, looking at all the             
 other groundfish species - I don't think that included crab, it               
 might have included crab - anyway, about 83 percent of the IFQs               
 would have gone to non-Alaskans.  The value of those IFQs was worth           
 about $4 billion. That's not happening right now, we're not on that           
 track.  Going back to halibut and sablefish, which is the IFQ                 
 program that was approved, the previous administration was very               
 supportive of that.  At least initially.  I think the devil was in            
 the details and a lot of people figured out the details of that               
 program.  There's some real problems with it.  But nevertheless,              
 it's there, it has been approved.  The secretary wanted that                  
 program and in a lot of ways, as long as the secretary had the                
 votes and got it out of council, the record didn't matter in this             
 regard.  Now there are some jurisdictional issues that you've                 
 probably heard about.  Frankly, I think that those have been                  
 relatively well dealt with by the state.  Although the recent court           
 opinion, I want to hear what our lawyers have to say about it, on             
 the IFQ lawsuit but the issue of whether or not IFQs affect state             
 management and how is very critical.  With regard to halibut -                
 halibut are regulated under an international treaty so there is not           
 much we can do about that.  The federal government can preempt us             
 and that's that.  With regard to black cod, sablefish, the state              
 does regulate sablefish and when the IFQ program was going through            
 the council process, we looked at how much sablefish comes out of             
 state waters and made a determination of which geographical areas             
 were a concern to us and then decided that because very little                
 sablefish came out of state waters except for these areas, that it            
 really wasn't a preemption issue for our management program.  If              
 there were problems in terms of stock conservation, we could always           
 shut the fishery down in state waters to address that.  We manage             
 sablefish in a few areas.  Those areas are exempt from the IFQ                
 program under the NPFMC.  So, in that instance, the jurisdictional            
 issues are contained, I think, unless the court decision has set an           
 unacceptable precedent that we can't live with.  If we move into a            
 different kind of limited access system for the rest of groundfish            
 and crab.  IFQs or licenses.  Licenses are the ones that are right            
 now on the table.  Then that jurisdiction question becomes much               
 more important to us because there are a lot of groundfish                    
 fisheries resources inside state waters that are very important to            
 Alaska residents and it could definitely affect our management                
 program and we, under no circumstances, want to let that kind of              
 preemption occur.  We want to craft something that preserves our              
 ability to manage those resources inside our waters to the extent             
 that we possibly can."                                                        
                                                                               
 Number 701                                                                    
                                                                               
 CHAIRMAN AUSTERMAN pointed out that the economic data from the                
 communities could be used in court if the secretary rejected the              
 extension of the onshore-offshore allocation and stressed the                 
 importance of this to the state.                                              
                                                                               
                                                                               
 TAPE 95-4, SIDE A                                                             
 Number 000                                                                    
                                                                               
 REPRESENTATIVE CARL MOSES pointed out that it appears that ADF&G              
 uses opposite reasoning in arguments regarding the Pacific Salmon             
 Treaty negotiations and the Yukon River crisis.                               
                                                                               
 MR. RUE said, "You've got to remember, down south one of the big              
 concerns we've had is that 95 percent of the problem is caused by             
 dams and hydro, and they're asking the fishermen to bear a hugely             
 disproportionate and unfair burden.  That is a very different                 
 situation than what we see in western Alaska."                                
                                                                               
 MR. BENTON talked about the Pacific Salmon Commission negotiations            
 and that ADF&G is attempting to change how the commission valuates            
 "equity."  He said, "It's a balancing of interceptions, and we've             
 tried to bring that around to an abundance base approach of                   
 management where stocks are managed based on their abundance...               
 You set some rules and guidelines and that's how you deal with it.            
 In part, we're looking at the same kind of concept around Alaska,             
 too.  At least in terms of some of the fisheries that have been               
 pretty contentious with regards to distant interceptions."                    
                                                                               
 Number 112                                                                    
                                                                               
 REPRESENTATIVE ELTON pointed out that there are many small                    
 communities in Southeast Alaska concerned about "the Chinook                  
 problem" and asked if other state personnel can be applied to that            
 problem.                                                                      
                                                                               
 MR. BENTON said, "We have some excellent people in there (Pacific             
 Salmon Commission negotiations) working to the max and I'm                    
 concerned about that because this is going to be a grueling                   
 process.  We have some resources available.  This committee worked            
 with the department over the past couple of years to get some                 
 resources there but that's not just Pacific Salmon Commission, it's           
 Pacific Salmon Commission, federal legislative reauthorization, ESA           
 litigation, ESA administrative process.  It's a whole lot of work             
 and not a lot of real resources there.  We can always use a little            
 extra help.  If you guys have any ideas on where we can find some."           
                                                                               
 CHAIRMAN AUSTERMAN asked if Alaska's congressional delegation is              
 helping with these issues.                                                    
                                                                               
 Number 159                                                                    
                                                                               
 MR. BENTON said, "The delegation on PSC (Pacific Salmon Commission)           
 has been working very well to put pressure on the National Marine             
 Fisheries Service and the State Department to do the right thing.             
 On the issues before the NPFMC, they have been excellent.  They are           
 really helping us on the inshore-offshore and on the bycatch issues           
 and the CDQs issues."                                                         
                                                                               
 DOUGLAS EGGERS, CHIEF FISHERIES SCIENTIST, DIVISION OF COMMERCIAL             
 FISHERIES MANAGEMENT AND DEVELOPMENT DIVISION, ADF&G, gave a                  
 detailed overview of ADF&G's salmon fisheries management program,             
 including presentation of a handout describing "an example of the             
 stock assessment system that has evolved for western Alaska sockeye           
 and chum salmon which include all stocks north of Unimak Island."             
                                                                               
 REPRESENTATIVE OGAN asked if allocation decisions are made for                
 biological or political reasons.                                              
                                                                               
 MR. EGGERS said, "Our role in these decisions is to provide the               
 best available scientific information on what the magnitude and               
 origin of the catches are to the Board of Fisheries so they can               
 make decisions with respect to allocation."                                   
                                                                               
 Number 329                                                                    
                                                                               
 CHAIRMAN AUSTERMAN asked about genetic stock identification for               
 assessments.                                                                  
                                                                               
 MR. EGGERS indicated the prevalence and methods of genetic stock              
 identification assessments and cautioned, "These methods don't work           
 very well for coho and pink salmon."                                          
                                                                               
 CHAIRMAN AUSTERMAN asked if these assessments had already been done           
 on Kodiak Island differentiating the stocks between the individual            
 stream systems.                                                               
                                                                               
 MR. EGGERS indicated that study was done on one of the Olga Moser             
 Bay area with a procedure called "Scale Pattern Analysis", not                
 genetic stock identification.                                                 
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 CHAIRMAN AUSTERMAN thanked his guests and adjourned the meeting at            
 6:58 p.m.                                                                     
                                                                               
                                                                               

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